| Fri 20 Dec 2002, 16:20 | | The Laser Group Limited - Interim Report For The S |
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The Laser Group Limited
(Incorporated in the Republic of South Africa)
Registration number 1971/010431/06
Share code: LSR ISIN: ZAE000017166
PROVIDER OF OUTSOURCED BUSINESS SUPPORT SERVICES
INTERIM REPORT FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2002
INCOME STATEMENT
UNAUDITED UNAUDITED
6 MONTHS 6 MONTHS
ENDED ENDED
30 SEP 2002 30 SEP 2001
INCREASE R`000 R`000
Turnover 12% 206 484 183 124
Revenue 116 179 101 472
Disbursements 90 305 81 652
Non-recurring income (refer commentary) 9 517 6 256
Operating expenses (194 613) (172 524)
EBITDA 27% 21 388 16 856
Depreciation (3 450) (2 456)
Imputed interest on vendor liabilities (117) (1 632)
Other interest (3 674) (3 035)
Operating profit 45% 14 147 9 733
Loss on sale of fixed assets,
property and investments (191) (12)
Amortisation of goodwill, trademarks
and research costs (1 515) (2 621)
Write-down of trademarks and
capitalised R & D (1 925) -
Write-down of loans (574) (244)
Profit before taxation 9 942 6 856
Taxation charge (3 810) (2 295)
Profit after taxation 6 132 4 561
Loss from associate (85) (354)
Net profit for period 6 047 4 207
Number of shares (`000) 24 372 25 482
Headline earnings per share (cents) 51% 41,4 27,4
Earnings per share (cents) 24,8 16,5
Diluted earnings per share (cents) 23,4 16,0
Reconciliation between earnings
and headline earnings:
Net profit for period 6 047 4 207
Adjustments:
Amortisation of intangible assets 1 365 2 528
Profit on sale of assets 191 12
Write-down of trademarks
and capitalised R & D 1 925 -
Write-down of loans 574 244
Headline earnings 10 102 6 991
STATEMENT OF CHANGES IN ORDINARY SHAREHOLDERS` FUNDS
UNAUDITED UNAUDITED
6 MONTHS 6 MONTHS
ENDED ENDED
30 SEP 2002 30 SEP 2001
R`000 R`000
Ordinary shareholders` funds at beginning
of period 105 328 95 545
Shares repurchased by subsidiary (1 756) -
Share capital issued - 264
Net profit for period 6 047 4 207
Ordinary shareholders` funds at end of period 109 619 100 016
BALANCE SHEET
UNAUDITED UNAUDITED
30 SEP 2002 30 SEP 2001
INCREASE R`000 R`000
ASSETS
Non-current assets
Fixed assets 129 366 128 463
- owner occupied properties 6 413 -
- investment properties 57 743 58 906
- vehicles and equipment 42 453 36 978
- trademarks 5 186 8 602
- goodwill 17 571 23 977
Investments and other assets 1 381 742
Net cash and cash equivalents 2 976 2 519
Current assets 71 372 59 990
Total assets 205 095 191 714
EQUITY AND LIABILITIES
Shareholders` interest 109 619 100 016
Interest bearing property liabilities 13 881 17 724
Non-current - 15 292
Current 13 881 2 432
Other interest bearing liabilities 15 984 11 040
Non-current 9 363 6 994
Current 6 621 4 046
Vendor liabilities 2 057 17 823
Non-current 1 377 4 482
Current 680 13 341
Accounts payable and provisions 59 435 44 862
Taxation 4 119 249
Total equity and liabilities 205 095 191 714
Net asset value per share - tangible
assets (cents) 35% 356 265
Diluted net asset value per share - tangible
assets (cents) 31% 336 256
Net asset value per share - total
assets (cents) 15% 450 392
Diluted net asset value per share - total
assets (cents) 11% 424 380
Gearing (%) 25 26
Current ratio (times) 1,2 1,3
CASH FLOW STATEMENT
UNAUDITED UNAUDITED
6 MONTHS 6 MONTHS
ENDED ENDED
30 SEP 2002 30 SEP 2001
R`000 R`000
Cash generated by operations 19 699 15 797
Working capital changes 1 236 1 206
Net interest paid (3 674) (3 742)
Normal taxation paid (607) (1 184)
Net cash inflow from operating activities 16 654 12 077
Net cash outflow to investing activities (7 295) (5 387)
Net cash outflow to financing activities (6 316) (13 811)
Net increase/(decrease) in cash and cash equivalents 3 043 (7 121)
Net cash and cash equivalents at beginning of period (67) 9 640
Net cash and cash equivalents at end of period 2 976 2 519
OVERVIEW
The group has performed satisfactorily during the first six months of the
financial year.
Progress has been made in the consolidation of the group`s businesses and
operational and productivity efficiencies are being enhanced.
Laser Logistics Solutions has performed up to expectation, capitalising on the
growth in demand for integrated time sensitive express distribution. All three
of its business units, Laser International Solutions (clearing and forwarding
and cross-border trade), Laser Express Solutions (air and road- based courier
and delivery) and Laser Distribution Solutions (third party distribution and
warehousing) have contributed significantly to the group`s results.
Laser Human Resource Solutions offers a range of HR products and services and
has over the period focused on developing more substantial and sustainable
revenue streams. The division has experienced difficulty in concluding contracts
particularly within the consulting and solutions business. The results have
accordingly been well below expectations. A process is in place to return these
businesses to acceptable levels of return.
At a general meeting held on 25 September 2002, shareholders unanimously
approved the disposal of the greater portion of the group`s property portfolio.
All property transfers will be completed by 4 January 2003. The properties,
which had a book value of R56,3 million were sold for R56,8 million.
FINANCIAL RESULTS
Results for the period are summarised in the financial statements above.
Accounting policies applied are in compliance with South African Statements of
Generally Accepted Accounting Practices and are consistent with those applied in
the previous period.
INCOME STATEMENT AND EARNINGS PER SHARE
Turnover has increased by 12% over the prior period. Operating profit, due
largely to certain non-recurring items has increased by 45% and headline
earnings per share by 51% to 41,4 cents. Additional royalty income was received
on the completion of the group`s royalty agreement with AGS Worldwide. R4,6
million royalties were received in the period compared to R2,1 million in the
comparable period. The current period earnings include property income of R4,9
million in respect of the properties sold.
Both the property income and the royalty income are non-recurring in nature. A
restatement of results to take account of this and assuming that the net
property proceeds were invested at 12,5% effective 1 April 2002 would result in
headline earnings per share reducing to 21,8 cents (2001: 17,6) cents.
BALANCE SHEET AND CASH FLOW
The group`s net tangible asset value per share (before option dilution) has
increased by 35% to 356 cents and gearing of 25% is within the group`s financial
objectives.
All liabilities related to the properties sold have been disclosed as current
liabilities at period-end.
R10,4 million was paid to vendors in the period reducing these liabilities to R2
million payable over two years. The group`s cash flow from operating activities
generated R16,6 million.
PROSPECTS
The group`s two trading divisions face different challenges in the period ahead.
The growth in trading activity within Laser Logistics is expected to continue
notwithstanding proposed measures by the Post Office to restrict movement of
parcels by private enterprise. Action plans are being implemented to address the
trading performance of Laser HR Solutions.
DISPOSAL OF THE GROUP`S BUSINESSES
The company has received an offer from a consortium comprising management and
directors which, on fulfillment of the conditions precedent, will lead to a
delisting and liquidation. Shareholders are referred to an announcement
containing full details of the proposed transactions contained elsewhere in this
publication.
SHARE BUY-BACK
Under the group`s share buy-back programme, 722 603 shares have been purchased
by a subsidiary company at an average cost of 250 cents per share, comprising
2,8% of the company`s issued share capital. These shares are held by the group
as treasury stock.
DIVIDEND POLICY
No dividend has been declared in the period.
By order of the Board
BILL McADAM MICHAEL FULLER
Chairman Chief Executive Officer
Cape Town
20 December 2002
The Laser Group Limited
Incorporated in the Republic of South Africa
Registration number 1971/010431/06
Share code: LSR
ISIN: ZAE000017166
Registered Office:
Level 2, Dean Street Arcade
Newlands 7700
Transfer Secretaries:
Computershare Investor Services Limited
70 Marshall Street, Johannesburg 2001
www.laser.co.za
Date: 20/12/2002 03:56:00 PM Produced by the JSE SENS Department
