| Mon 26 May 2003, 15:20 | | Audited results for the year ended 28 February 200 |
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Labat Africa Limited -
Labat Africa Limited
(Incorporated in the Republic of South Africa)
Share code: LAB ISIN: ZAE000018354
(Registration number 1986/001616/06)
("the company" or "the group")
AUDITED results for the year ended 28 February 2003
* THE POWER TO DELIVER
GROUP CONSOLIDATED INCOME STATEMENT
Audited Audited
12 months 12 months
28-Feb-03 28-Feb-02
R"000 R"000
Revenue 244 930 224 204
Net operating income before depreciation 40 132 52 812
Depreciation (8 028) (4 504)
Net operating income before interest and taxation 32 104 48 308
Interest paid (11 957) (7 708)
Interest received 1 291 760
Net income before taxation 21 438 41 360
Taxation 12 994 (607)
Net income after taxation 34 432 40 753
Attributable to outside shareholders (1 815) (2 751)
Income attributable to ordinary shareholders 32 617 38 002
Shares in issue throughout year ("000) 184 415 184 903
Basic/headline earnings per share (cents) 17,7 20,6
GROUP CASH FLOW STATEMENT
Year ended Year ended
28-Feb-03 28-Feb-02
Net flow from operating activities 6 799 31 981
Net flow from investing activities (41 161) (5 394)
Net flow from financing activities 17 305 7 762
Net (decrease)/increase in cash (17 057) 34 349
Cash at beginning of year 39 612 5 263
Cash at end of year 22 555 39 612
GROUP CONSOLIDATED BALANCE SHEET
Audited Audited
12 months 12 months
28-Feb-03 28-Feb-02
R"000 R"000
ASSETS
Fixed assets 54 128 25 514
Investments 37 953 28 446
Deferred taxation 15 251 703
Non-current assets 107 332 54 663
Cash 22 555 39 612
Inventories 35 417 34 443
Instalment sale debtors 94 221 82 891
Trade and other receivables 21 947 27 639
Current assets 174 140 184 585
Total assets 281 472 239 248
EQUITY AND LIABILITIES
Share capital and reserves 153 553 122 318
Outside shareholders 6 263 4 043
Total shareholders" funds 159 816 126 361
Long-term liabilities 22 874 9 755
Deferred taxation 11 670 10 576
Non-current liabilities 34 544 20 331
Bank overdraft 14 827 14 196
Instalment sale finance 35 411 26 759
Accounts payable 36 874 51 601
Current liabilities 87 112 92 556
Total equity and liabilities 281 472 239 248
Number of shares in issue ("000) 184 415 184 903
Tangible net asset value per share (cents) 66,8 51,9
STATEMENT OF CHANGES IN EQUITY
Share Share Distributable Capital and
capital premium reserves reserves
R"000 R"000 R"000 R"000
Balance 28 February 2002 1 849 49 090 70 379 121 318
Adjustment to the begin
of prior year - - 364 364
Prior year adjustment - - 636 636
Sub-total 1 849 49 090 71 379 122 318
Surplus for year - - 32 617 32 617
Write-off of loan to share
incentive scheme - (1 142) - (1 142)
Share buy-back from share
incentive scheme (5) (235) - (240)
Balance 28 February 2003 1 844 47 713 103 996 153 553
COMMENTARY AND REVIEW OF RESULTS
This has been a difficult trading year, particularly for exporting businesses
because of the recent volatility of the Rand and similarly for credit retail
businesses because of high interest rates and for IT businesses. We are involved
in all of these businesses so it is gratifying to be able to report another
solid year of profits, together with good progress in the overall development of
the business.
The year ahead is also going to be tough in international markets which,
although not in recession, are forecasting marginal growth. Interest rates are
forecast to reduce by some three percentage points in the year ahead and the
dollar, at four year lows, has reached its nadir and is forecast by most
analysts to strengthen against the Rand in the year ahead.
Turnover grew by 9% to R244,9 million. Earnings before depreciation reduced
by 24% to R40,1 million. This includes a forex loss of R5,1 million as opposed
to a forex gain of R10,1 million in the previous year. Basic earnings per share
were therefore reduced by 14% to 17,7 cents. The higher interest and
depreciation charge is mainly due to the higher interest rate environment and
the investment in fixed assets. Included in the taxation charge for the year is
a non-recurring deferred taxation benefit of R13,9 million based upon the amount
of the usable assessed losses brought forward.
Tangible net asset value increased by 29% to 66,8 cents per share. Some 488
600 shares were purchased by the company in terms of a share buy-back
arrangement relating to the employee incentive scheme. The growth in investments
was to expand the IT division.
SAMES has again performed well despite the current Rand volatility. We will
develop new markets this year, particularly the Americas. We have invested R28,6
million in new plant, which demonstrates our confidence in the future prospects
of the business.
LABAT TRAFFIC SOLUTIONS is expanding its market share nationally. We have won
several new contracts and are currently rolling these out. We are also exploring
opportunities in neighbouring countries. We are delighted that we have acquired
a 51% stake in Total Computer Systems (Pty) Ltd, a local software house, which
provides traffic systems and back office support to some 150 sites countrywide
and welcome them on board.
LABAT PROFESSIONAL SERVICES Our consulting business has increased its
capacity by developing partnering agreements which allow us to offer a full
range of solutions to our client base.
Our IT business is developing well. We have just signed a master reseller
agreement with SSA Global Technologies ("SSAGT") for all of sub-Saharan Africa.
SSAGT is a major player in the International ERP market and has a dynamic and
large customer base in Africa.
LABAT RETAIL - Acme Stores has done well in the past year despite the
travails of the industry. We continue to improve the business model, our
objective being to reduce our dependence on credit sales. We have just completed
agreements which will see us selling a range of fitted kitchen units and floor
coverings through our shops. Several similar arrangements are being negotiated.
ACCOUNTING POLICIES
During the year the company changed its policy for the accounting of
equipment held under rental agreements from a pure rental basis of accounting,
to finance leases. The effect is to increase attributable income in the current
year by R1,2 million, in the prior year by R0,6 million and in the previous year
by R0,4 million. Comparative figures have been restated.
Except for the above, the accounting policies applied are consistent with those
applied in the previous year and are in compliance with the South African
Statements of GAAP.
AUDIT OPINION
Our auditors have issued their opinion for the year ended 28 February 2003. A
copy of their unqualified report is available for inspection at the company"s
registered office.
CORPORATE GOVERNANCE
The group subscribes to the values of good corporate governance at all levels
and is committed to conduct business with discipline, integrity and social
responsibility.
DIVIDENDS
It is company policy that no dividends will be declared as group surpluses
will be retained to fund future growth.
For and on behalf of the board
B G VAN ROOYEN
Group Chief Executive
27 May 2003
Registered office: Transfer Secretaries:
Island House Computershare Investor Services Limited
Constantia Park Centre 70 Marshall Street
Corner 14th Avenue & Hendrik Johannesburg
Potgieter Road 2001
Weltevreden Park, 1709 PO Box 62053
Marshalltown, 2107
Sponsor
Brait S.A.
Date: 26/05/2003 03:12:31 PM Supplied by www.sharenet.co.za
Produced by the JSE SENS Department
