| Thu 20 Feb 2003, 16:37 | | Aplitec - Unaudited Interim Results For The Six Mo |
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Aplitec - Net 1 Applied Technology Holdings Limited
("APLITEC")
(Incorporated in the Republic of South Africa)
(Registration number 1997/007207/06)
Share Code: APL
ISIN Code: ZAE000024113
NET1 APPLIED TECHNOLOGY HOLDINGS LIMITED - UNAUDITED INTERIM RESULTS FOR THE SIX
MONTHS ENDED 31 DECEMBER 2002
HIGHLIGHTS
* Operating profit up 21.6% to R80.1 million
* Fully diluted headline earnings per share up 22.8% to 26.00 cents
* Tangible net asset value per share 185.34 cents
* Cash equivalent earnings per share 30.57 cents
ABRIDGED INCOME STATEMENT
Unaudited Audited
Six months ended Year ended
31 December 30 June
2002 2001 % 2002
R`000 R`000 Change R`000
Revenue 310 834 270 868 14.8 525 585
Operating profit 80 058 65 838 21.6 135 000
Net interest received 13 487 6 885 95.9 14 014
93 545 72 723 28.6 149 014
Settlement of share options 5 349 - - -
Profit before tax 88 196 72 723 21.3 149 014
Tax expense 31 349 21 075 48.7 43 286
- Current and deferred 28 139 21 075 33.5 43 286
- STC 3 210 - - -
Profit after tax 56 847 51 648 10.1 105 728
Minority interests 2 494 3 249 (23.2) 1 695
Net profit for the period 54 353 48 399 12.3 104 033
Headline earnings per share (cents) 26.21 21.55 21.6 44.61
Diluted headline earnings
per share (cents) 26.00 21.16 22.8 44.20
Earnings per share (cents) 23.46 21.06 11.4 45.23
Diluted earnings per share (cents) 23.26 20.67 12.5 44.82
Weighted average number of
shares(`000) 231 671 229 831 230 001
Diluted number of shares (`000) 233 687 234 106 232 124
Reconciliation of headline earnings
Net profit for the period 54 353 48 399 104 033
Amortisation of goodwill 877 878 1 754
Loss / (profit) on disposal of
property, plant and equipment 148 254 (475)
Settlement of share options 5 349 - (2 713)
Headline earnings 60 727 49 531 102 599
ABRIDGED BALANCE SHEET
Unaudited Audited
31 December 30 June
2002 2001 2002
R`000 R`000 R`000
ASSETS
Non-current assets 76 116 71 511 62 512
- Property, plant and equipment 55 981 42 446 33 192
- Capitalised development costs 903 4 047 2 279
- Trade marks - 1 901 1 630
- Goodwill 13 498 15 427 14 375
- Deferred tax 5 734 7 690 11 036
Current assets 449 172 344 059 448 205
- Inventory 12 870 16 645 15 521
- Trade and other receivables 121 693 122 257 110 870
- Cash and cash equivalents 314 609 205 157 321 814
TOTAL ASSETS 525 288 415 570 510 717
EQUITY AND LIABILITIES
Capital and reserves 447 113 357 461 418 455
- Issued share capital and premium 129 561 124 214 129 575
- Accumulated profit 317 552 233 247 288 880
Minority interests 5 769 4 829 3 275
Current liabilities 72 406 53 280 88 987
- Trade and other payables 43 977 40 865 58 591
- Tax 28 429 12 415 30 396
TOTAL EQUITY AND LIABILITIES 525 288 415 570 510 717
Shares in issue (`000) 233 464 229 831 233 464
Tangible net asset value per share (cents) 185.34 146.23 171.41
Net asset value per share (cents) 191.51 155.53 179.24
ABRIDGED STATEMENT OF CHANGES IN EQUITY
Unaudited Audited
Six months ended Year ended
31 December 30 June
2002 2001 2002
R`000 R`000 R`000
Ordinary shareholders` equity at
beginning of year 418 455 309 075 309 075
Changes in share capital - - 3
Changes in share premium (14) (13) 5 344
Net profit for the period 54 353 48 399 104 033
Dividends distributed to shareholders (25 681) - -
Ordinary shareholders` equity
at end of period 447 113 357 461 418 455
ABRIDGED CASH FLOW STATEMENT
Unaudited Audited
Six months ended Year ended
31 December 30 June
2002 2001 2002
R`000 R`000 R`000
Cash flows from operating activities
- Cash receipts from customers 302 359 246 519 503 476
- Cash paid to suppliers and employees (236 563) (200 600) (350 497)
Cash generated from operations 65 797 45 919 152 779
- Net interest received 13 487 6 885 14 014
- Tax paid (28 014) (34 904) (42 481)
- Dividends paid (25 681) - -
Cash flows from operating activities 25 589 17 900 124 512
Cash flows from investing activities
- Additions to property, plant
and equipment (33 422) (13 774) (19 472)
- Proceeds from disposal of property,
plant and equipment 643 163 6 335
- Cash inflow from disposal of business - - 4 211
Cash utilised in investing activities (32 779) (13 611) (10 775)
Cash flows from financing activities
- Proceeds from issue of share capital (14) (13) 5 347
Net (decrease) / increase in cash and
cash equivalents (7 205) 4 276 120 933
Cash and cash equivalents at
beginning of period 321 814 200 881 200 881
Cash and cash equivalents at end
of period 314 609 205 157 321 814
Cash equivalent earnings per share (cents) 30.57 28.27 54.88
SEGMENTAL ANALYSIS
The estimated proportions of consolidated revenue and profit before tax
attributable to the various classes of business were as follows:
Revenue Profit before tax
6 months ended 6 months ended
31 December 31 December
2002 2001 2002 2001
R`000 R`000 R`000 R`000
Recurring transaction-based
activities 214 648 196 642 67 630 54 177
Technology sales, maintenance
and outsourcing 35 683 28 062 7 561 16 805
Financial services 60 503 46 164 18 354 1 741
Settlement of share options - - (5 349) -
310 834 270 868 88 196 72 723
NOTES
Accounting policies
The financial statements have been prepared on the historical cost basis in
conformity with South African Statements of Generally Accepted Accounting
Practice. The accounting policies applied in the preparation of the financial
statements are consistent in all material aspects with those applied in the
annual financial statements for the year ended 30 June 2002.
Commentary
The board of Aplitec takes pleasure in presenting the interim results of the
group for the six months ended 31 December 2002. The group continues to show
sustainable growth and development of its South African operations, whilst
making encouraging progress in the international arena.
Financial review
Revenue increased by 15% from R271 million to R311 million and profit before tax
increased by 21% from R73 million to R88 million. Net profit increased by 12%
from R48 million to R54 million. Earnings per share increased by 11.4% to 23.46
cents and headline earnings per share rose by 21.6% to
26.21 cents.
The outstanding options granted to empowerment groups at the time of Aplitec`s
listing, which expired on 31 December 2002, were not exercised. An amount of
R5.3 million was paid in lieu of these options.
The group`s balance sheet is very sound with no interest-bearing debt and cash
resources of R315 million. Healthy liquidity is substantiated by a current ratio
of 6.2:1 and an acid test ratio of 6:1.
Cash generated by operations amounted to R66 million and cash equivalent
earnings per share increased by 8.1% to 30.57 cents.
Operational review
Aplitec`s systems have now reached the level of inter-operability required to
offer customers a broad range of revenue generating products. This has enabled
Aplitec to fully capitalise on its proprietary UEPS technology, which forms the
foundation for its primary objective of integrating social welfare and wage
payments, financial services, banking and retail.
The business model created by Aplitec is now sought after by many international
customers. Aplitec has been approached by prospective partners and customers in
many developing countries and is currently negotiating a number of transactions,
some of which are national projects, which require government, central bank and
investor approvals. Aplitec is very excited about new applications, which have
been identified as a result of the international interest in its products,
specifically in the fields of medical insurance and the distribution of
medicinal supplies.
Locally, the implementation of the Eastern Cape social welfare payment contract
is proceeding according to plan and all 435 000 beneficiaries should be
registered and their benefits processed by April 2003.
Following the announcement by President Mbeki that the maximum qualifying age
for child grants will be progressively increased from 7 to 14 years and that the
government will continue to focus on the alleviation of poverty, Aplitec is
gearing up for a significant increase in the number of beneficiaries to be
serviced.
Aplitec`s initiative to provide financial services to social welfare
beneficiaries continues to be a resounding success. The products offered through
this initiative continue to make a meaningful difference to the lifestyles of
our customers, by increasing their monthly disposable income and enabling them
to break free from the debt spiral. Other lifestyle enhancing products, such as
life insurance, food parcels and basic medical insurance will be introduced
shortly in conjunction with local empowerment partners.
Prospects
Aplitec`s operations are sound, profitable and cash generative. The annuity
nature of Aplitec`s major revenue streams and the impact of new initiatives,
particularly the Eastern Cape social welfare contract and our international
endeavours, augur well for the group`s continued success.
Dividend
No interim dividend has been declared.
On behalf of the board
Serge Belamant Herman Kotz
Chief Executive Officer Chief Financial Officer
20 February 2003
Johannesburg
Transfer Secretaries Secretary and registered office
Ultra Registrars (Pty) Ltd Light and Livingstone Financial Services CC
11 Diagonal Street 3rd Floor, Palm Grove
Johannesburg 196 Louis Botha Avenue
Houghton Estate, 2198
Directors: S C P Belamant, H G Kotz, J C Livingstone*, B J S Hore*,
D G S Muller*
* Non-executive
www.aplitec.co.za
Date: 20/02/2003 04:25:00 PM Supplied by www.sharenet.co.za
Produced by the JSE SENS Department
