| Thu 29 Aug 2002, 0:00 | | Square One - Audited Interim Results for the six m |
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Square One Solutions Group Limited
Registration number 1999/026822/06
Share code: SQE ISIN: ZAE000023768
Audited Interim Results for the six months ended 30 June 2002
INCOME STATEMENT
Six months Six months
to 30 June to 30 June
2002 2001
(R000`s) Audited Unaudited
Turnover 88 738 74 387
Operating profit 4 934 21
Net finance costs (1 757) (1 247)
Profit/(loss) before taxation 3 177 (1 226)
Taxation - -
Net profit/(loss) after tax 3 177 (1 226)
Loss/(Profit) attributable to outside
shareholders 184 (211)
Net profit/(loss) attributable
to ordinary shareholders 3 361 (1 437)
ABRIDGED CASH FLOW STATEMENT
(R000`s) 30 June 2002
Net flow from operating activities 1 180
Net flow from investing activities (409)
Net flow from financing activities (228)
Net increase/(decrease) in cash 543
Cash at beginning of period (20 711)
Cash at end of period (20 168)
STATEMENT OF CHANGE IN EQUITY
Distribu- Capital
Share Share table and
capital premium reserves reserves
Balance 31 December 2001 220 8 800 (5 005) 4 015
Surplus for period - - 3 361 3 361
Balance 30 June 2002 220 8 800 (1 644) 7 376
BALANCE SHEET
30 June 30 June
2002 2001
(R000`s) Audited Unaudited
ASSETS
Non-current assets 2 749 8 513
Fixed assets 2 713 2 526
Goodwill - 5 967
Investments 16 -
Loans receivable 20 20
Current assets 63 450 53 636
Inventories 22 106 18 789
Accounts receivable 40 264 34 229
Bank balances 1 080 618
Total assets 66 199 62 149
EQUITY AND LIABILITIES
Issued capital 9 020 9 020
Retained income (1 644) 2 096
Outside shareholders` interest 1 383 1 587
Outside shareholders` loans 365 723
Long-term liabilities 1 013 661
Non-distributable reserve 95 -
Current liabilities 55 967 48 062
Accounts payable 34 620 32 438
Taxation - 221
Shareholders` loan - -
Current portion of long-term liabilities 99 295
Bank overdraft 21 248 15 108
Total equity and liabilities 66 199 62 149
EARNINGS PER SHARE
Earnings per share of 15,3 cents is calculated by using attributable profit of
R3 361 000 and issued shares of 22 000 000.
Headline earnings per share of 15,5 cents is calculated by using attributable
headline profit of R3 398 000 and includes a goodwill write-off of R37 000, and
issued shares of 22 000 000.
COMMENTARY
Square One`s audited results for the six-month period 1 January 2002 to 30 June
2002 have exceeded the expectations of the board and it is most gratifying to
see the turnaround of a R8,538 million attributable loss at the end of the 2001
year into a net profit after tax of R3,361 million, an increase also of 234
percent over figures reported for the same period in 2001.
It should be reiterated that of the R8,538 million loss, R5,967 million
represented the decision to write-off all goodwill from investments and
acquisitions and R3,6 million can be attributed to an unrealised foreign
exchange loss directly resulting from the severe devaluation of the SA Rand
towards the end of 2001. The recovery of the Rand within the first quarter of
2002 saw realised foreign exchange profits that have also partially offset the
unrealised losses accounted for at the end of 2001.
The first quarter of 2002 saw the achievement of some sales milestones, with
a January that proved the best in the company`s history. While the second
quarter more closely tracked the industry downturn, revenue was sustained.
Should the group be able to smooth out the sales cycles of the second half of
the year and maintain its budget revenue figures it will be on track to realise
its profit objective for the year. The directors are positive about its
prospects.
Square One`s stated objective of realising its consulting, integration and
skills services potential is very much on track. Its investment in new projects
and technologies within the field of biometric-based identification and
security, own-grown products for portable data capturing as it applies to the
gathering of demographic information, high-end software applications, data
storage and mobile communications have started to evolve into tangible financial
returns with some good prospects in the pipeline.
These business ventures have offset some negatives within the distribution
side of the business with the macro issues of more than one international
supplier impacting upon Square One`s local supply. However, Square One has
retained exclusive distribution of Xerox-Tektronix hardware and has been able to
record some good business from the uninterruptible power supplies and coding and
marking divisions. Square One also announced its distribution of the specialist
colour products from leading ICT manufacturer, Seiko-Epson. Square One is
recognised as a leading specialist in the areas of business that these products
address and these products enhance its information management offering. The
positive impact of some strong marketing initiatives in the various business
areas of the company through the second half of 2002 are anticipated to return
viable sales revenues.
Square One`s regional offices performed well during the half-year and the
company has a strong national footprint. Internationally the company`s
Australian operation felt the impact of the softer global economy but is showing
worthwhile revenue potential.
The interim statements have been prepared in accordance with South African
Statements of Generally Accepted Accounting Practice. The financial information
detailed in this report has been audited by Russell Bedford Southern Africa, one
of the company`s joint auditors. The auditors have issued an unqualified audit
report. The audit opinion is available for inspection at the company registered
office.
The board has elected not to declare an interim dividend.
On behalf of the board:
Garth A Coetser
Chairman
Trevor W James
Chief Executive Officer
Registered address Transfer secretaries
Eastgate Park, 8 Commerce Crescent West, Computershare Investor Services Ltd
Eastgate Extension 13, Sandton PO Box 61051, Marshalltown 2107
(PO Box 1163, Gallo Manor 2052)
Telephone: (011) 321-5900
Telefax: (011) 444-2462
www.sq1.co.za
Date: 29/08/2002 05:23:00 PM Produced by the JSE SENS Department
