| Thu 27 Mar 2003, 16:57 | | Audited results for the year ended 31 December 200 |
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APS Technologies Limited -
APS Technologies Limited
(Incorporated in the Republic of South Africa)
(Registration number 1998/024100/06)
("APS", "the Group" or "the Company")
Short name: APS-TECH; Share code: APE; ISIN number: ZAE000017927
Audited results for the year ended 31 December 2002
Consolidated income statements
for the year ended 31 December
2002 2001
R"000 R"000
Revenue 9 772 12 580
Operating (loss)/profit before depreciation
and impairments 1 257 (15 676)
Depreciation (241) (652)
Amortisation of intangibles (2 353) (2 231)
Impairment loss (919) (6 083)
Net operating loss (2 256) (24 642)
Net interest paid (480) (141)
Loss before taxation (2 736) (24 783)
Taxation (49) (165)
Attributable loss (2 785) (24 948)
Statistics
Number of ordinary shares in issue (000s)
- end of period 131 500 131 500
- weighted average 131 500 131 500
Headline loss per share (cents) 0,35 (11,84)
Loss per share (cents) (2,12) (18,97)
Reconciliation of headline earnings
Attributable loss (2 785) (24 948)
Profit on sale of assets (31) (2)
Amortisation of intangibles 2 353 2 231
Cost of investment written down - 560
Impairment loss 919 6 083
Restructuring costs 5 505
Headline earnings/(loss) 461 (15 571)
Consolidated balance sheets
as at 31 December
2002 2001
R"000 R"000
ASSETS
Non-current assets 4 739 5 701
Property, plant and equipment 3 233 1 623
Intangibles 882 4 067
Interest in subsidiaries 11 -
Loans receivable 613 11
Current assets 2 956 3 956
Inventories 1 815 3 027
Trade and other receivables 1 131 736
Cash and cash equivalents 9 143
Receiver of revenue 1 50
Total assets 7 695 9 657
EQUITY AND LIABILITIES
Capital and reserves 2 742 3 953
Share capital and premium 16 112 16 112
Non-distributable reserves 2 151 577
Accumulated loss (15 521) (12 736)
Non-current liabilities 339 581
Long-term liabilities 339 581
Current liabilities 4 614 5 123
Accounts payable 933 2 312
Bank overdraft 3 644 2 800
Short-term portion of long-term
liability 37 11
Total equity and liabilities 7 695 9 657
Net asset value per share (cents) 2,09 3,01
Total number of ordinary shares
issued ("000) 131 500 131 500
Consolidated cash flow statementS
for the year ended 31December
2002 2000
R"000 R"000
Cash flow from operating activities (450) (7 582)
Cash flow from investing activities (313) (763)
Cash flow from financing activities (217) 470
Net decrease in cash (980) (7 875)
Cash at beginning of year (2 655) 5 220
Cash at end of year (3 635) (2 655)
Consolidated statement of changes in equity
for the year ended 31 December 2002
Accumu-
Trans- Re- lated
Share Share lation valuation (loss)/
capital premium reserve reserve profit Total
R"000 R"000 R"000 R"000 R"000 R"000
Balance at
1 January 2002 132 15 980 577 - (12 736) 3 953
Net loss for the
period - - - - (2 785) (2 785)
Revaluation of
property - - - 1 574 - 1 574
Balance at
31 December 2002 132 15 980 577 1 574 (15 521) 2 742
Comments
Overview
The 2002 financial year was another challenging year for the Company. Although
overall revenue was down, a big positive was an increase in turnover of 329% in
overseas sales. Even with the decreased turnover, an operating profit op R1,257
million was achieved versus the previous year"s loss of R15,676 million.
Income statement items
The following items that appear in the income statement, are highlighted, due to
their size and unusual nature:
Amortisation
In line with the previous year"s policy, an amount of R2,353 million has been
amortised regarding the intangible assets.
Impairment of investment
An amount of R919 458 was impaired from capitalised market development costs.
The reason for this was that no income was generated from the asset during the
year and it is uncertain whether any income will arise from it in future.
Balance sheet items
Property, plant and equipment
The factory and head office building was re-evaluated to an amount of R2,8
million.
Bank overdraft
To raise sufficient working capital, an additional overdraft facility from First
National Bank to the amount of R800 000 was secured. This overdraft facility was
secured by a surety from one of the executive directors. Since the year-end this
overdraft facility has been repaid and cancelled.
Because the directors anticipated selling the factory and administration
building, the overdraft facility at Nedbank was kept in place and not yet
converted to a bond facility.
Share Purchase Trust
The consolidation of the Share Purchase Trust within the Group as it was done in
the previous year, was in our auditors" opinion, not in accordance with GAAP.
Therefore, according to GAAP, the previous statements had accounted for a
fundamental error and the opening figures have been adjusted and restated. The
effect of this on the financial statements is as follows:
- The shares which the Share Purchase Trust hold, has been brought into account
and the total of shares issues therefore increased.
- A loan, which was payable by the Share Purchase Trust to one of the Group"s
subsidiaries, was impaired with an amount of R6 082 608. The reason for this was
the major devaluation of the share price and the inability of the Trust to repay
the loan.
The adjustment had an effect on earnings per share as well as headline earnings
per share.
Prospects
With the increase in international sales and a new lean cost operation, the
prospects for the Company look promising.
Accounting policies
The consolidated financial statements for the year ended 31 December 2002 are
prepared in accordance with and comply with South African Statements of
Generally Accepted Accounting Practice. The accounting policies of the Group are
consistent in all material aspects with those applied in the annual financial
statements for the year ended 31 December 2001.
Audit opinion
The consolidated financial statements for the year ended 31 December 2002 have
been audited by Logista Inc. and they have qualified the results as they are of
the opinion that they are unable to satisfy themselves as to the appropriateness
of applying the going concern basis due to the uncertainty of the Group to
generate adequate cash flow from operating and investing activities in the
foreseeable future to finance its operations and to repay its debts.
The audited report will be available for inspection at the registered office of
the Company.
Directors
Messrs AL de Beer, AS Botha and P Moraka resigned on 26 March 2003. Messrs WH
Monsma, JGL Uytdewilligen, RE Blaauw and JDP van Zyl were appointed in their
place on 27 March 2003.
Dividend
In line with the previous year, no dividend has been declared.
After balance sheet events
International investor
An international investor has invested funds into the Company during March 2003.
These funds have been utilised to clear the outstanding trade creditors and will
supply sufficient working capital for the Company"s new operating structure.
Bank overdraft
The bank overdraft at First National Bank has been repaid.
For and on behalf of the Board
C Pelly N Wessels 28 March 2003
Acting chairman Chief executive officer Pretoria
Transfer secretaries
Computershare Investor Services Limited (Registration number 1958/003546/06)
70 Marshall Street, Marshalltown, Johannesburg 2001
(PO Box 61051, Marshalltown 2107)
Registered office
54 De Havilland Crescent, Persequor Park, Pretoria 0002
(PO Box 199, Persequor Park 0002)
Directors: WH Monsma (Chairman), N Wessels (Chief executive officer), C Pelly*,
UL Schmidt*, JDP van Zyl*, JGL Uytdewilligen*, RE Blaauw* (*Non-executive)
(Holland)
Group secretary: PJ McDonald CA(SA)
Internet address: http://www.apstherapy.com
