| Fri 29 Nov 2002, 15:56 | | Casey Investment Holdings Limited - Reviewed Finan |
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CASEY INVESTMENT HOLDINGS LIMITED - REVIEWED FINANCIAL STATEMENTS FOR THE SIX
MONTHS ENDED 31 AUGUST 2002 AND FURTHER CAUTIONARY ANNOUNCEMENT
CASEY INVESTMENT HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration No: 1998/016433/06)
JSE code: CSY - ISIN code: ZAE000016127
("Casey" or "the company")
6 Months 6 Months Year
ended ended ended
31 Aug 2002 31 Aug 2001 28 Feb 2002
CONSOLIDATED INCOME STATEMENT (Reviewed) (Unaudited) (Audited)
Revenue 13,686,246 12,294,835 29,224,921
Operating loss before interest (2,161,574) (4,174,187)
and taxation (7,532,482)
Net interest paid (349,144) (205,641) (459,357)
Net loss before taxation (2,510,718) (4,379,828) (7,991,839)
Taxation - - -
Loss after taxation (2,510,718) (4,379,828) (7,991,839)
Number of shares in issue 83,129,600 79,723,333 83,129,592
Number of shares in issue (post 8,312,960 7,972,333 8,312,959
consolidation)
Weighted average number of 8,312,960 7,972,333 8,142,696
shares in issue
Loss per share (cents) (30.2) (54.9) (98.1)
Headline loss computed as
follows:
Loss for the period (2,510,718) (4,379,828) (7,991,839)
Goodwill (117,671) (117,671) (235,341)
Headline loss (2,393,047) (4,262,157) (7,756,498)
Headline loss per share (cents) (28.8) (53.5) (95.3)
31 Aug 2002 31 Aug 2001 28 Feb 2002
CONSOLIDATED BALANCE SHEET (Reviewed) (Unaudited) (Audited)
Assets
Non current assets 5,894,635 6,319,919 5,743,675
Current assets 7,116,253 8,291,204 7,780,835
Debtors 6,527,334 6,511,143 7,269,045
Stock 525,311 1,362,125 431,696
Cash on hand 63,608 417,936 80,094
Total Assets 13,010,888 14,611,123 13,524,510
Equity and Liabilities
Share capital and premium 3,572,553 3,538,491 3,572,553
Shareholder`s loan convertible 20,000,000 - -
into share capital
Distributable Reserves (21,285,364) (15,162,143) (18,774,645)
Shareholders` Equity 2,287,189 (11,624,143) (15,202,092)
Non-current liabilities 757,302 15,825,042 17,748,787
Current liabilities 9,966,397 10,410,224 10,977,815
Creditors 5,195,864 5,962,781 4,458,341
Bank 4,770,533 4,447,443 6,519,474
Total Equity and Liabilities 13,010,888 14,611,123 13,524,510
Net asset value per share (213.1) (145.8) (182.9)
(cents)
Net tangible asset value per (259.1) (193.8) (227.5)
share (cents)
6 Months 6 Months Year
ended ended ended
31 Aug 2002 31 Aug 2001 28 Feb 2002
CASH FLOW STATEMENT (Reviewed) (Unaudited) (Audited)
CASH FLOW FROM OPERATING
ACTIVITIES
Cash generated from operations (739,089) (4,576,155) (8,065,196)
Interest expense (349,144) (205,641) (459,357)
Income Tax paid - - (702,395)
(1,088,233) (4,781,796) (9,226,948)
CASH FLOW FROM INVESTMENT
ACTIVITIES
Proceeds from disposal of fixed - - 27,578
assets
Purchase of fixed assets (102,828) - (196,704)
Investment in subsidiaries (85,000) (253,757) (34,062)
(187,828) (253,757) (203,188)
CASH FLOW FROM FINANCING
ACTIVITIES
Proceeds from long-term 3,008,515 5,399,998 7,384,708
borrowings
3,008,515 5,399,998 7,384,708
Movement in cash and cash 1,732,454 364,445 (2,045,428)
equivalents
Cash and cash equivalents -
beginning of period (6,439,380) (4,393,952) (4,393,952)
Cash and cash equivalents -
end of period (4,706,926) (4,029,507) (6,439,380)
6 Months 6 Months Year
ended ended ended
GROUP STATEMENT OF CHANGES IN 31 Aug 2002 31 Aug 2001 28 Feb 2002
EQUITY (Reviewed) (Unaudited) (Audited)
Share capital
Balance at the beginning of the 831,295 797,233 797,233
period
New shares issued during the - - 34,062
period
831,295 797,233 831,295
Share premium
Balance at the beginning and 2,741,258 2,741,258 2,741,258
end of the period
Shareholder`s loan converted to
capital
after end of period 20,000,000 - -
Distributable reserves
Balance at the beginning of the (18,774,646)
period (10,782,806) (10,782,806)
Net profit / (losses) for the (2,510,718) (4,379,828) (7,991,839)
period
(21,285,364) (15,162,634) (18,774,645)
TOTAL EQUITY (2,287,189) (11,624,143) (15,202,092)
Comments
1. The accounting policies used in the preparation of the financial statements
for the six months ended 31 August 2002 are consistent with those applied in the
prior period and comply with South African Statements of Generally Accepted
Accounting Practice. The interim financial statements for the six months ended
31 August 2002 have been reviewed by Casey`s auditors, SAB&T Incorporated. A
copy of their review report is available for inspection at the company`s
registered office.
2. In the period after 31 August 2002, the company has consolidated its shares
on a one for ten basis, thereby reducing the number of shares in issue from
83,129,600 to 8,312,960. In order to reflect the current position, the loss per
share and net asset value per share calculations have been done using 8,312,960
consolidated shares.
3. In view of a R20 million claw-back rights offer being undertaken after 31
August 2002, the Blitec shareholder`s loan, being converted to share capital, is
reflected as part of Shareholders` Equity. Neither the R20 million, nor the
shares being issued in terms of the claw-back rights offer, have been included
in the calculations of loss per share and net asset value per share.
4.The figures for loss per share were calculated on the weighted average number
of shares in issue after the one for ten consolidation and on the fully diluted
number of shares for the net asset value per share calculation.
5.As part of the R20 million claw-back rights offer, shareholders are permitted
to apply for 15 million excess application shares at 30 cents per consolidated
share.
6.Casey has entered into a distributor agreement with a division of Controlware
GmbH in terms of which Casey will distribute Controlware`s ISDN backup and
access products and networked video and fibre optic solutions exclusively in
South Africa and on a non-exclusive basis in sub-Saharan Africa. Telkom SA
Limited is a significant user of Controlware products. It is expected that Casey
will generate positive returns from this relationship as from the next financial
year.
Directors` Review
Over the last six months of operation, the Casey Group has improved the level of
turnover compared to the same period last year. Of greater significance is the
level of improvement in the bottom-line over the same period. This trend is
very encouraging when we consider the difficult trading conditions for the
period under review as well as some of the structural challenges that had to be
overcome to produce this result.
Overall our plans to leverage on our partners in order to deliver value to our
customers well beyond their expectation have served us very well and will
continue to be our core strategy for the following six months.
Perceptions regarding our company have improved significantly in the same period
as a consequence of our level of delivery and honest communication with all
sectors of the market and industry. Morale within the group is high and many
operating efficiencies have been introduced within all our branches.
We continue to be guided by government`s unwavering commitment to deploy
technology within its business processes for improved service delivery to all
South Africans and by the trends within the ICT industry to deliver value to the
businesses of our customers.
As a fully empowered group we have become highly sought after by leading
technology groups to partner with them in introducing innovative solutions
supported and underpinned by funding models that improve affordability and
access. Our commitment to be a leading example of what empowerment companies
can achieve by way of return on investment and return on development of human
resources remains a key driver for the remainder of this financial year.
We thank all our stakeholders old and new for the trust and commitment
demonstrated over the last six months and count it a privilege to be challenged
in the manner that we have been and still prevail.
Further Cautionary Announcement
In a cautionary announcement published in the press on 1 November 2002,
shareholders were informed that discussions were taking place with a view to
Casey acquiring an information technology business solutions operation that is
partially owned by Black Information Technology Empowerment Company Limited
("Blitec"). These discussions are proceeding and shareholders should continue
to exercise caution when dealing in their Casey shares.
For and on behalf of the board
J Molobela L Khumalo
Chairman Chief Executive Officer
Midrand
29 November 2002
Corporate advisor and sponsor
The Janus Corporation (Pty) Limited
Registration Number 1999/005755/07)
Transfer Secretaries
Computer Share Services Limited
Auditors
SAB&T Incorporated
Date: 29/11/2002 12:26:41 PM Produced by the JSE SENS Department
