| Mon 3 Mar 2003, 17:40 | | Compu Clearing Outsourcing Limited - Reviewed Inte |
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COMPU CLEARING OUTSOURCING LIMITED - REVIEWED INTERIM RESULTS FOR THE SIX MONTHS
ENDED 31 DECEMBER 2002
COMPU CLEARING OUTSOURCING LIMITED
(Registration number 1998/015541/06)
Share code CCL
ISIN ZAE 000016564
REVIEWED INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2002
Highlights :
Headline earnings per share - Up 60%
Earnings per share - Up 36%
Profit before taxation - Up 31%
Operating margin maintained - 24%
Net asset value per share - Up 13%
Total revenue - Up 13%
COMMENTARY
We are delighted to report our results for the 6 months ended 31 December 2002.
It has been a period of exceptional cash flow generation, and a further
improvement on our already favourable liquidity. This positions us well for
growth particularly in the International arena.
Compu-Clearing continues its ethos which it has since it was founded in 1983, to
build a steady and solid company based on annuity income. The nature of the
business is continuing to change, becoming more focused on its core business,
being software for the Customs Clearing and Freight Forwarding Industry, and
less dependent on hardware and networking. The operating margin has been
sustained at the healthy 24%. Cash flow generated by operating activities is up
in excess of 90%, due mainly to Compu-Clearing having fulfilled its hardware
renewal programme which it commenced in 1999. Its commitment to the IBM AS/400
platform has ensured long lasting returns on its investments. As the equipment
renewal has now been completed, non-cash items can be expected to diminish.
Compu-Clearing will continue with its campaign of opportunistic share buy-backs
as well as an ever increasing dividend payout. We look ahead to a second half of
the Financial Year where the performance of the first half is likely to be
sustained, and to launching the International operation. We will continue to
rationalise our network thus deriving additional cost savings. Our local
customer base continues to offer us steady solid growth opportunities. We are
continuing to strengthen our management and technical team both in quality and
numbers, and thus be ready for the economic upturn, particularly in Airfreight
imports (the mainstay of our company) which inevitably will follow the
improvement in the value of the Rand.
BASIS OF PREPARATION OF FINANCIAL STATEMENTS
The financial statements have been prepared in accordance with South African
statements of Generally Accepted Accounting Practice (GAAP) and the accounting
policies used are consistent with the prior year other than as set out below.
CHANGE IN ACCOUNTING POLICIES
In accordance with recently amended South African statements of GAAP with regard
to depreciation of buildings and post-retirement funding provisions and the
headline earnings per share reconciliation required by the JSE Securities
Exchange South Africa affecting revenue, prior period comparatives have been
restated.
INDEPENDENT REVIEW
The Group`s auditors KPMG Inc, have reviewed the financial information for the
six months ended 31 December 2002. Their report is available for inspection at
the registered office of the Company.
DIVIDEND
It is the Group`s policy to declare an annual dividend at year end.
Johannesburg A.Garber J. du Preez
3 March 2003 Chairman and Chief Executive) (Managing Director)
Directors: A.Garber, J.du Preez, A.Katz*, M.Lutrin*, Dr.T.M.Mogale*, M.Steele*,
D. Rosevear*, M.Acosta-Alarcon, A.Robbertse.
*(Non-executive)
Transfer secretaries: Registered office:
Computershare Investor Services Limited 7 Drome Road
Ground Floor Lyndhurst, 2106
70 Marshall Street PO Box 890856
Johannesburg, 2001 Lyndhurst, 2106
BALANCE SHEET
% 30/6/2002
31/12/2002 31/12/2001 Inc. (Audited)
[Reviewed] [Reviewed] R`000
R`000 R`000
ASSETS
Tangible assets 13,234 15,269 14,03
Financial assets 320 320 32
Deferred taxation 400 38 -
Current assets 21,104 16,265 18,91
Liquid current assets 15,381 9,843 12,40
Other current assets 5,723 6,422 6,51
Total assets 35,058 31,892 33,26
EQUITY AND LIABILITIES
Shareholders` funds 29,851 27,549 29,06
Non-current liabilities 1,947 2,041 2,007
Deferred taxation - -
Post retirement medical obligations 1,947 2,041 1,99
Current liabilities 3,260 2,302 2,19
Total equity and liabilities 35,058 31,892 33,26
Net asset value per share [cents] 75.1 66.2 13 71
INCOME STATEMENT
Six Six % Year
months months Inc. ended
ended ended 30/6/2002
31/12/2002 31/12/2001 (Audited
[Reviewed] [Reviewed]
R`000 R`000 R`00
Sales - hardware and networking 918 728 1,25
Cost of sales 490 434 72
Net sales - hardware and networking 428 294 534
Rental and other revenue 15,835 14,113 28,896
Total revenue 16,263 14,407 13 29,4
Operating costs 12,283 10,915 22,3
Operating profit 3,980 3,492 14 7,0
Net finance revenue 847 193 6
Profit before taxation 4,827 3,685 31 7,7
Taxation 1,593 1,229 2,5
Attributable earnings 3,234 2,456 32 5,1
Actual number of shares in issue [`000] 39,742 41,632 40
Weighted average number of shares in
issue [`000]
issue [`000] 40,342 41,810 41
Diluted weighted average number of
shares in issue [`000] 42,322 43,815 43
Earnings per share [cents] 8.0 5.9 36 12
Headline earnings per share [cents] 8.0 5.0 60 11
Diluted earnings per share [cents] 7.8 5.8 34 12
Dividends per share [cents] 3.0 2.5 20 2
RECONCILIATION OF HEADLINE EARNINGS
Attributable earnings 3,234 2,456 32 5,1
Adjusted for :
Profit on disposal of fixed assets (8) (509) (431
Taxation effect 2 153 129
Headline earnings 3,228 2,100 54 4,868
SEGMENTAL REPORT
Net hardware and networking sales 428 294 5
Software rental income 10,473 8,844 18 18,4
Hardware rental income 4,567 4,476 8,7
Networking rental income 656 637 1,5
Other income 139 156 1
Total revenue 16,263 14,407 13 29,4
Operating profit 3,980 3,492 14 7,0
Operating margin 24% 24% 2
CASH FLOW STATEMENT
Six Six Year
months months ended
ended ended 30/6/2002
31/12/2002 31/12/2001 (Audited)
[Reviewed] [Reviewed]
R`000 R`000 R`000
Operating income before interest and tax 3,980 3,492 7,071
Non cash items 1,763 1,757 2,973
Cash generated by trading operations 5,743 5,249 10,044
Decrease in post retirement medical
obligations
obligations (49) (44) (89)
Decrease in working capital 969 346 62
Cash generated by operations 6,663 5,551 10,017
Taxation paid (1,122) (2,000) (3,213)
Dividends paid (1,201) (1,046) (1,046)
Net finance revenue 847 193 679
Cash flows from operating activities 5,187 2,698 6,437
Cash flows from investing activities (963) (697) (677)
Cash flows from financing activities (1,244) (249) (1,450)
Increase in cash and cash equivalents 2,980 1,752 4,310
Cash at the beginning of the period 12,401 8,091 8,091
Cash at the end of the period 15,381 9,843 12,401
STATEMENT OF CHANGES IN EQUITY
Share Share Distributable Total
capital premium reserves
R`000 R`000 R`000 R`000
Balance at 30 June 2001 418 14,368 11,602 26,388
Repurchase of shares (11) (1,439) (1,450)
Attributable earnings 5,170 5,170
Dividends paid (1,046) (1,046)
Balance at 30 June 2002 407 12,929 15,726 29,062
Repurchase of shares (10) (1,234) (1,244)
Attributable earnings 3,234 3,234
Dividends paid (1,201) (1,201)
Balance at 31 December 2002 397 11,695 17,759 29,851
Date: 03/03/2003 05:20:02 PM Supplied by www.sharenet.co.za
Produced by the JSE SENS Department
