| Wed 23 Oct 2002, 16:10 | | Infowave - Unaudited Group Results For The Six M |
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Infowave Holdings Limited
(Registration number: 1998/017276/06)
Share code: IFW ISIN: ZAE000016440
("InfoWave")
Unaudited group results for the six months ended 31 August 2002
* Profit before tax up
* Attributable earnings up
* Headline earnings per share up
Consolidated Income Statement
6 months 6 months Year
ended ended ended
31 August 31 August 28 February
2002 2001 2002
(unaudited) (unaudited) (audited)
R`000 R`000 R`000
Revenue 15 406 14 454 26 903
Operating profit before interest 3 267 3 010 6 020
Net interest received 614 266 655
Profit before taxation 3 881 3 276 6 675
Taxation (920) (1 086) (2 131)
Profit attributable to ordinary
Shareholders 2 961 2 190 4 544
Headline Profit
Profit attributable to
ordinary shareholders 2 961 2 190 4 544
Loss on disposal of plant and equipment - 193 6
Write-down of share incentive trust loan - - 40
(Recovery)/write down of investments (91) - 28
Headline profit 2 870 2 383 4 618
Consolidated Balance Sheet
6 months 6 months Year
ended ended ended
31 August 31 August 28 February
2002 2001 2002
(unaudited) (unaudited) (audited)
R`000 R`000 R`000
Assets
Non-current assets
Plant and equipment 706 721 660
Current assets
Trade and other receivables 4 383 5 908 3 606
Cash and cash equivalents 14 355 7 226 10 736
18 738 13 134 14 342
Total assets 19 444 13 855 15 002
Equity and liabilities
Capital reserves
Issued share capital 9 9 9
Share premium 9 020 9 020 9 020
Accumulated profit/(loss) 4 943 (374) 1 983
13 972 8 655 11 012
Non-current liabilities
Long-term borrowings 188 437 312
Current liabilities
Trade and other payables 5 284 4 763 3 678
Total equity and liabilities 19 444 13 855 15 002
Consolidated Cash Flow Information
6 months 6 months Year
ended ended ended
31 August 31 August 28 February
2002 2001 2002
(unaudited) (unaudited) (audited)
R`000 R`000 R`000
Net cash inflows from operating activities 3 935 2 895 4 351
Net cash (outflows)/inflows
from investing activities (191) (142) 2 037
Net cash (outflows)/inflows
from financing activities (125) (125) (250)
Net increase in cash resources 3 619 2 628 6 138
Cash and cash equivalents
at beginning of period 10 736 4 598 4 598
Cash and cash equivalents at end of period 14 355 7 226 10 736
Group Statement of Changes in Equity
for the six months ended 31 August 2002
Share Share Retained
Capital Premium income Total
R`000 R`000 R`000 R`000
Balance at 28 February 2001 9 8 943 (2 562) 6 389
Net profit for the year - - 4 544 4 544
Shares issued during the year 0 78 - 78
Balance at 28 February 2002 9 9 020 1 983 11 012
Net profit for the period - - 2 961 2 961
Balance at 31 August 2002 9 9 020 4 943 13 972
Group Supplementary Information
6 months 6 months Year
ended ended ended
31 August 31 August 28 February
2002 2001 2002
(unaudited) (unaudited) (audited)
R`000 R`000 R`000
Capital expenditure for the period 191 79 204
Capital expenditure authorised 409 388 600
Operating lease expenses 359 305 654
Statistics
6 months 6 months Year
ended ended ended
31 August 31 August 28 February
2002 2001 2002
(unaudited) (unaudited) (audited)
R`000 R`000 R`000
Number of ordinary shares in issue (`000) 87 455 87 455 87 455
Weighted average ordinary
shares in issue (`000) 87 455 86 155 86 805
Earnings per ordinary share:
fully diluted (cents) 3,29 2,50 5,16
Earnings per ordinary share:
weighted average (cents) 3,39 2,54 5,24
Headline earnings per ordinary share:
fully diluted (cents) 3,19 2,73 5,24
Headline earnings per ordinary share:
weighted average (cents) 3,28 2,76 5,32
Net asset value per ordinary share (cents) 15,98 9,89 12,59
Debt:Equity ratio (%) 1,34 5,05 2,83
Directors` comment
These results have been prepared in accordance with the South African
Statements of Generally Accepted Accounting Practice and these have been
consistently applied in comparison to the previous year.
The Directors endorse the aims of the King Report on Corporate Governance in
conducting the affairs of the company with integrity and in accordance with the
highest standards of corporate practice. The company is committed to the
principles of openness, integrity and accountability in its dealings with all
its stakeholders.
Chairman`s report
InfoWave has delivered another set of solid results for the first half of the
year. Turnover increased 6,6% and an operating profit margin of 21% was
delivered. Headline earnings per ordinary share increased 18% from 2,76 cents to
3,28 cents. The company anticipated tougher trading conditions and focused on
consolidation and improved efficiencies.
Prospects for the second half of the year are positive. The company has
recently secured considerable new business that will take effect during the next
six months, and will roll over well into the next financial year.
The board recently revised the company`s strategic intent due to negative
market conditions and improved prospects as a standalone company, and is no
longer seeking a strategic partner. The company has re-enforced its business-as-
usual strategy of organic growth with sustainable annuity income. The board also
revised its application of cash reserves, and has called a special general
meeting to pass a resolution to pay back excess reserves to its shareholders.
Based on the new strategy, it is the board`s intention to pay dividends on an
annual basis.
The remaining six months of this financial year promise to be an exciting
period and we look forward to another year of satisfying results.
Capital distribution
The board has resolved to make a capital distribution of 10 cents per share
in lieu of a dividend for the half year ended 31 August 2002 ("the capital
distribution"). Such capital distributions are subject to the JSE Securities
Exchange SA listings requirements and shareholder approval.
The last day to trade in InfoWave shares for the purpose of entitlement to
the capital distribution will be the close of business on Friday, 22 November
2002 and shares will trade ex-distribution with effect from Monday, 25 November
2002.
The record date for the capital distribution will be the close of business on
Friday, 29 November 2002. Central Securities Depository Participants and broker
accounts will be credited and capital distribution cheques posted on Monday, 2
December 2002, where applicable. Share certificates may not be dematerialised or
rematerialised between Monday, 25 November 2002 and Friday, 29 November 2002,
both days inclusive.
A circular relating to the distribution will be posted to shareholders on or
about Friday, 25 October 2002, and a general meeting will be held on or about
Monday, 11 November 2002 for shareholders to approve the capital distribution.
The above dates are subject to amendment. Any amendment will be published in the
press and on the Stock Exchange News Service.
R P Collis
Executive Chairman
Durban
25 October 2002
Note to our shareholders:
The insurance cover provided by The Dispossessed Members` Fund ("DMF"),
established to provide alternative compensation against the threat of a
successful action for rectification and the possible liability of various
stakeholders involved in the dematerialisation process, expired on 29 September
2002. A further 12-month discovery period is provided under the policy. You are
advised that there is an element of risk should you not dematerialise your
certificates before 29 September 2003 and they are later found to be invalid or
tainted.
Directors
R P Collis (Chairman and Chief Executive Officer), T Dunsdon,
M C B Lionnet, P Naicker,
C L von Pannier
Registered office
Gleneagles Park, 10 Flanders Drive, Mount Edgecombe, 4300
Transfer secretaries
Computershare Investor Services Limited,
2nd Floor, Edura House,
Ground floor, 70 Marshall Street,
Johannesburg, 2001
Sponsor
Sasfin Bank Limited,
Sasfin Place, North Block,
13 - 15 Scott Street,
Waverley, 2090
Date: 23/10/2002 04:03:00 PM Produced by the JSE SENS Department
