| Mon 30 Sep 2002, 8:54 | | Dynamic Cables Rsa Limited - Financial Report |
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Dynamic Cables RSA Limited - Financial Report
Dynamic Cables RSA Limited
Formerly CONLOG HOLDINGS LIMITED
(Registration number 1987/001807/06)
("the Company")
Share code DYM ISIN: ZAE000028270
ABRIDGED INCOME STATEMENTS
Unaudited Unaudited Audited
6 months 6 months 12 months
30 June 30 June 31 December
2002 2001 2001
R`000 R`000 R`000
Turnover 39 595 37 814 73 478
Profit before interest 2 448 5 232 5 900
Interest received 215 635 1 284
Interest paid (573) (1 016) (1 473)
Profit before abnormal item 2 090 4 851 5 711
Abnormal item - - 2 263
Profit before taxation 2 090 4 851 7 974
Taxation - - 2 537
Profit after taxation 2 090 4 851 5 437
Attributable to
ordinary shareholders 2 090 4 851 5 437
Earnings per share (cents) 4,47 11,0 12,2
Fully diluted earnings per share 1,96 4,5 5,2
Headline earnings per share 4,47 11,0 11,5
Fully diluted headline earnings per share 1,96 4,5 5,6
Net asset value per share 142,4 144,6 120,1
Tangible net asset value per share 49,7 31,0 34,2
Fully diluted net asset value per share 62,3 59,7 118,0
Fully diluted tangible net asset value
per share 22,7 12,8 33,6
Number of shares in issue (`000) 46 734 46 734 53 778
Weighted number of shares in issue (`000) 46 734 44 082 52 837
Fully diluted number of shares (`000) 106 734 106 734 53 778
Reconciliation of headline earnings
Net profit for the period 2 090 4 851 7 974
After tax effect of abnormal items - - (2 870)
Headline earnings 2 090 4 851 5 104
ABRIDGED BALANCE SHEETS
Capital employed
Net shareholders` interest 29 548 27 751 27 458
Shares to be issued 36 000 36 000 36 000
Share capital and reserves 65 548 63 751 63 458
Long-term liabilities 1 242 1 727 2 406
Deferred taxation 980 - -
67 770 65 478 65 864
Employment of capital
Tangible assets 10 343 9 328 8 014
Intangible assets 42 331 50 067 45 364
Investments 3 035 660 2 845
Deferred taxation 2 593 - 1 613
Net current assets 9 468 5 423 8 028
Current assets 33 180 38 035 36 304
Cash 5 418 17 380 8 314
Other 27 762 20 655 27 990
Current liabilities 23 712 32 612 28 276
67 770 65 478 65 864
CASH FLOW STATEMENTS
Unaudited Unaudited Audited
6 months 6 months 12 months
30 June 30 June 31 December
2002 2001 2001
R`000 R`000 R`000
Cash flows from operating activities 3 147 4 176 31 354
Cash receipts from customers 40 417 19 155 66 625
Cash paid to suppliers and employees (36 912) (14 598) (35 082)
Cash generated by operations 3 505 4 557 31 543
Interest received 215 - 1 284
Interest paid (573) (381) (1 473)
Normal taxation paid - - -
Cash flows from investing activities (6 043) 16 320 (20 183)
Replacements of tangible assets (4 850) (1 188) (3 375)
Proceeds on disposal of tangible assets - - 43
Purchase of financial assets (190) - (2 845)
Acquisition of subsidiaries (1 003) (8 491) (14 006)
Payments for share incentive trust - (623) -
Net proceeds on disposal of business
and shares in subsidiary company - 26 622 -
Cash flows from financing activities - (6 702) (6 443)
Payment for shares re-acquired - (6 817) (6 817)
Increase in short-term borrowings - 115 -
Proceeds from long-term borrowings - - 375
Net increase in cash and cash equivalents (2 896) 13 794 4 728
Cash and cash equivalents
at beginning of period 8 314 3 586 3 586
Cash and cash equivalents at end of period 5 418 17 380 8 314
STATEMENT OF CHANGES IN EQUITY
Share Share Shares Retained
capital premium to be income/ Total
issued (Accumulated
loss)
R R R R R
Balance at 1 January 2001 2 689 92 327 (70 177) 24 839
Shares issued during the period 500 3 500 4 000
Net profit for the period 5 436 5 436
Reduction of share capital (852) (5 965) (6 817)
Balance at 31 December 2001 2 337 89 862 (64 741) 27 458
Net profit for period 2 090 2 090
Balance at 30 June 2002 2 337 89 862 (62 651) 29 548
COMMENTARY
The interim results for the Company and the state of its affairs are set out on
the following statement:
REVIEW OF OPERATIONS
Notwithstanding the general slowdown in the telecoms industry, the group has
managed to maintain its turnover levels. The profitability of the group has
dropped slightly as a result of expenditure incurred to bring new products to
the market. In order to enhance its product offering Dynamic Cables SA (Pty) Ltd
commissioned a fibre optic termination laboratory during the period under
review. Naturally set-up cost including items such as recruitment of staff,
staff training, rental and research and development was expensed in the current
period and your Board believes that this expenditure will result in new markets
being opened for the Company. The Company has currently tendered for a large
contract with Telkom and the results of this tender will be made known shortly.
The expenditure associated with the Fibre Optic laboratory is in excess of R3
million. If this expenditure were to be excluded, the results would indicate a
significant improvement over the previous year. Furthermore, at least R500 000
was spent on legal expenses relating to the shares which were irregularly issued
during 1997, 1998 and 1999. Your Board considers this expenditure to be
necessary to protect the public from dealing in shares which may be tainted. The
new businesses, which were started last year, namely MEC Energy and Dynatech
Telecoms, have started yielding positive contribution to the bottom line and we
anticipate that by the year-end they will both be profitable.
PROSPECTS
Subsequent to the half-year the telecommunications industry has experienced an
upturn in activity. As a result of the investments made during the current and
previous year, our group has been in a position to take advantage thereof. The
Company will continue to adopt a conservative approach in considering future
acquisitions and our strategy is to preserve our cash positive base and to grow
the operations under our control rather than to make new acquisitions.
ACCOUNTING POLICIES
The financial statements have been prepared in accordance with South African
Statements of Generally Accepted Accounting practice. These policies are
consistent with those applied in the previous year.
On behalf of the Board
Shaun Rai
Acting Chairman
Date: 30/09/2002 08:13:00 AM Produced by the JSE SENS Department
