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Stella Vista - Interim Results For The Six Months Ended 28 February 2003
Stella Vista Technologies Limited ("Company")
(Incorporated in the Republic of South Africa)
(Registration number 1996/000172/06)
Share code: SLL ISIN: ZAE000018198
Interim results - Six months ended 28 February 2003
Summarised group balance sheet
Unaudited Unaudited Audited
six six twelve
months months months
ended ended ended
28 Feb 03 28 Feb 02 31 Aug 02
R"000 R"000 R"000
ASSETS
Non-current assets
Property, plant and equipment 2 336 1 407 1 587
Non-current assets 824 2 579 1 510
Deferred taxation asset 2 342 1 129 2 859
5 502 5 115 5 956
Current assets
Inventories 21 953 21 272 18 290
Receivables 1 579 2 820 4 374
Cash and cash equivalents 6 901 5 744 15 878
30 433 29 836 38 542
Total assets 35 935 34 951 44 498
EQUITY AND LIABILITIES
Capital and reserves 15 164 18 796 13 983
Non-current liabilities
Interest-bearing borrowings 8 161 10 656 9 192
Current liabilities
Payables 10 657 1 110 20 776
Provisions and other payables 1 953 3 835 56
Current tax liabilities - 554 491
12 610 5 499 21 323
Total equities and liabilities 35 935 34 951 44 498
Summarised group income statement
Unaudited Unaudited Audited
six six twelve
months months months
ended ended ended
28 Feb 03 28 Feb 02 31 Aug 02
R"000 R"000 R"000
Revenue 28 179 13 271 19 589
Operating profit/(loss)
(after charging) 2 023 (3 319) (8 784)
- Depreciation 333 274 570
- Operating rentals 223 377 992
Net interest paid (298) (346) (1 014)
Net profit/(loss)
before taxation 1 725 (3 665) (9 798)
Taxation (435) 1 050 2 226
Net profit/(loss)
after taxation 1 290 (2 615) (7,572)
Headline and basic
earnings/(loss)
per share (cents) 0,92 (1,87) (5,41)
Summarised group cash flow
Cash flow from operating
activities 3 932 3 138 1 970
Cash flow from investing
activities (1 083) (251) (754)
Cash flow from financing
activities (11 861) (2 567) 9 257
(Decrease)/Increase in cash
and cash equivalents (9 012) 320 10 473
Group statement of
changes in equity
Capital and reserves at the
beginning of the period 13 983 21 976 21 976
Net profit/(loss) for the period 1 290 (2 615) (7 572)
Movement in foreign currency
translation reserve (109) (565) (421)
Capital and reserves at the
end of the period 15 164 18 796 13 983
HIGHLIGHTS
- ICC CWC 2003 contract
- Revenue up 112% for the same six months of previous year
- Remarkable increase in operating profit
- Increase in working capital
The company
Stella Vista is a world leader in the design of state-of-the-art multimedia
communications systems, providing displays, control equipment and software for a
multitude of applications. The complete line of multi-purpose products includes
scoreboards, video display screens and combined text and graphic messaging
displays with real-time data capabilities. Stella Vista focuses on designing,
producing, integrating and supporting innovative products and services for
clients" specific needs. This provides the total solution for sport, business,
entertainment and the transportation markets, ensuring complete customer
satisfaction, while providing the viewer with a truly remarkable experience.
The market
In addition to normal business, which included installations at the Johannesburg
International"s new domestic terminal, as well as exports to Botswana, during
the period under review, Stella Vista completed delivery of the official cricket
scoring software, full production software for scoring and statistics display,
LED scoreboards and integration of existing scoreboards at the 12 cricket
grounds in South Africa that hosted the matches of the ICC Cricket World Cup
2003.
Stella Vista, together with Powerview (Pty) Limited and Sizwe A/V Hire (Pty)
Limited, provided rentals of video replay screens for the duration of the event,
including equipment for TV commercial playout, instant replay and match
highlights, as well as management and integration services.
RESULTS
Income statement
The company achieved exceptional growth in both turnover and operating profit.
Compared with the same six months of the previous year the turnover increased by
112%, the major contributor being the ICC CWC 2003 contract.
Operating profit for the six months increased to 4,6% of sales from an operating
loss of 38,7% of sales. Our gross profit margins were in line with previous
financial periods.
The reductions in the prices of major imported components and changes in
technology required an impairment charge of R2,1 million to reflect the net
realisable value of inventory on hand.
Sales to the value of R1,38 million to a related party, Powerview (Pty) Limited,
a company owned by the directors, is included in revenue. These transactions
were carried out at market related terms and conditions.
Balance sheet
The increase in inventory is due to the manufacture of LED rental displays used
during the ICC CWC 2003 contract. Working capital was R17,8 million at 28 Feb
2003, compared to R17,2 million at 31 Aug 2002. This increase was primarily as a
result of an increase in cash provided by operations and a decrease in
receivables, which was used to increase our stock levels and repayment of short-
term debt.
Products and services
As communicated previously, Stella Vista has made a significant expansion in its
products and service offering. A new full colour LED display model, Titan T14
impressed the officials and spectators at more than 30 matches of the World Cup.
The new LB-series model, LB-56 was used for all the new scoreboards. These two
displays models are both part of Stella Vista"s revolutionary face-up display
system that guarantees interchangeability between LED video, LED text and
graphics displays and static advertising modules.
In the field of services and integration, Stella Vista"s offering is constantly
growing. As a result of this, we were able to offer and integrate a total
solution system for the UCB SA.
Accounting standards
The same accounting standards and policies as used by the group in the previous
financial period have been applied. These practices are in compliance with South
African Statements of Generally Accepted Accounting Practice.
Prospects
The completed CWC contract represents Stella Vista"s first significant foray
into the sports market, which presents about 70% of the worldwide market for
video LED displays. Every effort is being made to ensure that this presents a
springboard for significant growth for Stella Vista in the future.
On behalf of the board
RH Burke M Tabakovic
Chairman Chief Executive Officer
29 May 2003
Directors: RH Burke* (Chairman), M Tabakovic (CEO), D Tabakovic, AA Coulson*, C
Livingstone (*non-executive)
