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INTERVID LIMITED - FINANCIAL RESULTS
INTERVID LIMITED
Financial results for
the year ended 30 June 2002
Abridged Group Income Statement
12 months 16 months
ended ended
30 June 30 June
2002 2001
(Reviewed) (Audited)
R000`s R000`s
Revenue 161 323 107 397
Turnover 143 107 100 459
Interest received 18 216 6 694
Other - 244
Operating (loss)/profit
before foreign exchange gains,
depreciation, amortisation,
interest paid and taxation (71 018) 17 107
Foreign exchange gains 30 433 15 443
Depreciation (6 596) (2 399)
Amortisation (14 028) (796)
(Loss)/profit before interest
paid and taxation (61 209) 29 355
Interest paid (3 585) (1 336)
(Loss)/profit before taxation (64 794) 28 019
Taxation 16 253 (3 551)
(Loss)/profit after taxation (48 541) 24 468
Net loss/(profit) attributable to
minority shareholders of subsidiaries 3 798 (5 258)
Net (loss)/profit for the period (44 743) 19 210
Weighted average number of
shares in issue (000) 91 728 87 976
(Loss)/earnings per share - cents (48.8) 21.8
Headline (loss)/earnings
per share - cents (31.3) 22.1
Diluted (loss)/earnings
per share - cents (48.8) 20.9
Reconciliation of
headline (loss)/earnings:
Net (loss)/profit for the period (44 743) 19 210
Adjusted for:
Impairment of loans 8 576 -
Loss/(profit) on sale of plant
and equipment 106 (95)
Goodwill amortisation 7 321 311
Headline (loss)/earnings (28 740) 19 426
Abridged Group Balance Sheet
30 June 30 June
2002 2001
(Reviewed) (Audited)
R000`s R000`s
ASSETS
Non-current assets 175 582 57 188
Property, plant and equipment 37 558 11 611
Loans 4 914 11 011
Long-term receivables 557 527
Goodwill 101 341 21 080
Intangibles 18 267 8 874
Deferred tax asset 12 945 4 082
Current assets 594 035 446 890
TOTAL ASSETS 769 617 504 078
EQUITY AND LIABILITIES
Capital and reserves 486 471 447 032
Share capital and premium 27 189 22 498
Non-distributable reserve 455 330
Translation reserve 71 480 (9 747)
Equity portion of convertible loan 394 121 394 121
Accumulated (loss)/profit (6 774) 39 830
Minority shareholders` interest 31 909 888
Non-current liabilities 23 298 18 507
Deferred tax liability 550 3 579
Long-term non interest
bearing debt 17 039 12 986
Long-term interest
bearing debt 5 709 1 942
Current liabilities 227 939 37 651
TOTAL EQUITY AND LIABILITIES 769 617 504 078
Number of ordinary shares in issue
at end of period (000) 92 222 91 219
Net asset value per ordinary
share - cents 527 490
Abridged Group Cash Flow Statement
12 months 16 months
ended ended
30 June 30 June
2002 2001
(Reviewed) (Audited)
R000`s R000`s
Cash flows from operating activities (1 958) (8 723)
Cash flows from investing activities (132 785) (45 915)
Cash flows from financing activities 79 936 431 783
Effect of exchange rate movement 110 807 (3 734)
Net movements in cash and cash
equivalents for the year 56 000 377 595
Cash and cash equivalents at
beginning of year 388 510 14 649
Cash and cash equivalents
at end of year 444 510 388 510
Abridged Statement of Changes
in Group Equity
12 months 16 months
ended ended
30 June 30 June
2002 2001
(Reviewed) (Audited)
R000`s R000`s
Opening balance 447 032 28 167
Issue of shares 4 731 15 588
Share issue expenses written off (40) (185)
Currency translation reserve 79 491 (9 747)
Equity portion of convertible loan - 394 121
Reversal of retained profit
of subsidiaries - (122)
Net (loss)/profit for the year (44 743) 19 210
Closing balance 486 471 447 032
Segmental Report
Inter-segment
Year ended consolidation
30 June 2002 Consolidated adjustments Africa Australasia
Reviewed R000`s R000`s R000`s R000`s
Revenue 143 107 (52 885) 60 342 10 742
Operating (72 106) (14 736) (28 458) (8 111)
results
Segment assets 756 672 (382 562) 107 878 13 713
Segment (250 686) 153 302 (87 005) (11 744)
liabilities
Capital
commitments
- contracted 1 451 - 1 451 -
for
- not - - - -
contracted for
Sixteen months
ended 30.06.01
Audited
000`s
Revenue 107 397 - 94 406 1 364
Operating 17 017 - 12 458 (136)
results
Segment assets 499 996 - 74 556 10 477
Segment (52 580) - (25 131) (6 751)
liabilities
Capital
commitments
- contracted 4 500 - 4 500 -
for
- not 18 302 - 1 610 -
contracted for
Year ended United North Middle
30 June 2002 Kingdom America East Switzerland
Reviewed R000`s R000`s R000`s R000`s
Revenue 52 392 44 284 684 27 548
Operating (20 216) (11 663) (7 223) 18 301
results
Segment assets 228 508 117 219 6 409 665 507
Segment (151 686) (23 285) (12 987) (117 281)
liabilities
Capital
commitments
- contracted - - - -
for
- not - - - -
contracted for
Sixteen months
ended 30.06.01
Audited
000`s
Revenue - 4 934 - 6 693
Operating (326) 716 (481) 4 876
results
Segment assets 22 724 34 425 974 356 840
Segment (86) (18 455) (267) (1 890)
liabilities
Capital
commitments
- contracted - - - -
for
- not - - - 16 692
contracted for
Notes
1. Basis of presentation
This report has been prepared on the historical cost basis in accordance with
South African Statements of Generally Accepted Accounting Practice and
International Accounting Standards.
2. Accounting Policies
Accounting policies used in the preparation of this report are consistent with
those applied in the interim report for the period ended 31 December 2001.
Details of changes in accounting policies and estimates are disclosed in the
interim report.
3. Dividends
No dividend has been recommended or declared for the year ended 30 June 2002.
4. Contingent Liabilities
A contingent liability exists for the earnout provision on the acquisition of
Interactive Video Security (Pty) Ltd in Australia of R2,16m. The amount payable
to the former shareholders is under dispute and therefore not certain.
A contingent liability exists in Intervid International for taxation amounting
to R2,55m. The tax status of Intervid International has yet to be confirmed by
the Swiss tax authorities.
Commentary
Operating and Trading Review
Intervid continues to progress as a global visual technology player, focusing on
delivering vertical market business solutions for our customers. This year has
proved to be challenging. Significant focus has been placed on appointing strong
management in the operating regions and on building the administrative and
support infrastructure to manage the growing international business. This has
proved very costly and has taken longer than anticipated.
The contribution to revenues in the past twelve months by international
operations remains satisfactory. The acquisition within the UK of ID Technology
Group PLC on 8 April 2002 has resulted in a significant boost to turnover. The
impact of the internationalisation programme on the South African operation has
eased considerably since the last reporting period. The South African operation
is moving ahead strongly.
Intervid`s focus is on building a business with a sound international
infrastructure and sustainable recurring earnings. As mentioned in the 31
December 2001 interim report, Intervid will mature its business model to one
where sustainable recurring revenue predominates as opposed to capital sales.
Due to the impact of this shift on turnover and profit, the Board is following a
cautious approach with 20% of deals signed targeted to be recognised on a
monthly basis by the end of the 2004 reporting period. The approximate effect of
this change is a deferral in revenue and profit before tax in 2002 of R13,4
million and R6,1 million respectively.
Financial Results of Group Operations
* Revenue has increased by 100% over the annualised previous financial period.
* An operating loss of R71,0 million was incurred.
* Foreign exchange gains of R30,4 million accrued during the year.
* Taxation credit to the income statement includes an increase in debit deferred
tax carried in the balance sheet of R11,9 million. Most of the debit deferred
tax balance relates to assessable losses, which have arisen in the various
operating entities throughout the world.
* A net loss for the period of R44,7 million was incurred.
* Current assets include cash and cash equivalents amounting to R444,5 million
and current liabilities include short-term borrowings of R80,4 million
comprising mainly the amount of R77 million payable to the previous shareholders
of ID Technology.
* Translation reserves have arisen from the revaluation of international assets
and liabilities at a Rand/US Dollar spot rate of R10,27 at 30 June 2002.
Convertible Loan
Minority shareholders` interest remains at 30% of Intervid International AG.
Refer to note 22 of the annual financial statements of Intervid Ltd at 30 June
2001 for details of the rights and options attached to this loan.
Intervid International measurement currency
During the year under review the directors reassessed the choice of measurement
currency for Intervid International AG in order to provide meaningful financial
information that is representative of the economic substance of the underlying
transactions of the company. The directors are of the opinion that the US Dollar
is the most appropriate measurement currency. Accordingly, the results of
Intervid International have been measured in US Dollars. At 31 December 2001 the
company`s measurement currency was Euro and had this currency been retained, a
foreign exchange loss of R20,3 million would have been incurred for the year
under review.
Intervid Executive Share Trust
Intervid issued shares to the Intervid Executive Share Trust at prices between
R4,85 and R6,21 per share. These issues were financed by way of loan account
between the company and the trust, which amounted to R13 536 200 at year-end.
The Intervid share price was significantly lower than the issue prices. In
complying with AC128, the loan has been impaired by R8 576 200. The Board
believes that this is not a permanent impairment.
Report of the Independent Auditors
The financial information set out in this report has been reviewed by the
group`s auditors, Ernst & Young. Their unqualified review report is available
for inspection at the registered office of the company.
Outlook
The Board is satisfied that the strategy to internationalise is the correct one.
Breaking into new markets and building an international infrastructure has
proved costly and time consuming. Although the Group has incurred a loss for the
year to 30 June 2002, we believe that with the significant cash reserves,
technology base and business model, the Group remains well positioned for the
future.
For and on behalf of the board
R.A. le Sueur (CEO) K.A. Pitout (CFO)
Kloof
6 September 2002
Registration Number: 1999/011483/06
Share code: ITV
ISIN: ZAE000025615
Registered Office: 6 Charles Way, Kloof, 3610. P.O. Box 1218, Kloof, 3640
Transfer Secretaries: Computershare Investor Services Limited, 11 Diagonal
Street, Johannesburg, 2001. P.O. Box 1053, Johannesburg, 2000
Directors: W.F. Lambert* (Chairman), G.R. Howard* (Deputy Chaiman), R.A. le
Sueur (CEO), G.J. Bazley* (Alt.), J.P. Clucas*, J.J. Durand*, G. Hough(Dr), J.R.
Howard, I.R. Jones*, C.R. le Sueur, K.A. Pitout,
M.J.G. Taylor* (Alt.). * Non-Executive
Date: 09/09/2002 07:00:02 AM Produced by the JSE SENS Department
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