| Mon 8 Sep 2003, 16:42 | | AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2003 |
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DIGICORE HOLDINGS LIMITED - AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2003
DIGICORE HOLDINGS LIMITED
Registration number 1998/012601/06
JSE code: DGC
ISIN code: ZAE 000016945
AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2003
* Dividend of 2 cents per share
* Attributable earnings increased by 26,1%
* Cash on hand of R36 million
Comments
Financial review
The directors of DigiCore Holdings Limited are pleased to announce satisfactory
growth in attributable earnings of 26,1% from R13,2 million to R16,7 million for
the 12 months to 30 June 2003. Earnings per share increased by 27% to 7,1 cents
per share. This was a result of margin improvement and a slight decrease in
operating costs achieved during the year.
Revenue decreased by 11% to R172,2 million compared to R193,7 million during
2002. This can be attributed to a comprehensive cost review implemented by
DigiCore and Nashua Mobile to ensure even more cost-effective cellular usage for
customers.
DigiCore Europe (50% held by DigiCore Holdings Limited) achieved a small profit
for the full year, with our share of the profit amounting to R181 121.
Improvements in working capital levels were achieved during the year, with
debtors and creditors at more acceptable levels. The net tangible asset value
per share increased by 19,8% to 41,53 cents.
Cash on hand increased by R16,1 million to R36,3 million at the end of the
financial year and now represents 15,45 cents per share as at 30 June 2003.
Operational review
As a result of the consistent training and empowering of our most valuable
asset, our people, across our extensive local branch network, service levels to
our customers have further improved, resulting in an increased operational
profit this year.
The cost benefits from the fully-integrated ERP system and ISO 9001
accreditation were reflected in increased production capability at lower cost
during the year at our manufacturing operation.
DigiCore entered the private consumer market during June 2003 with the supply of
the first Tracker Locate units to Tracker South Africa, enabling private
individuals and small commercial fleets to track their vehicles on the Internet.
The challenge to retain market leadership was again met during the year with
ongoing technology enhancements.
International
Due to increased activity in DigiCore Europe during the fourth quarter of the
year, an overall profit was recorded. Our solid technology commitment in the
Benelux countries, Austria, Germany and France is currently showing growth
following a challenging European market trading period.
The Pakistan operation has again showed significant growth, further enhanced by
securing a substantial order from the Pakistan army towards the end of the
financial year.
Always keen to open new carefully-evaluated international markets for long-term
growth, DigiCore has identified suitable partners in new developing countries
and aims to be fully operational in these areas before June 2004.
Prospects
DigiCore"s launch of its new range of optimum fleet management systems, based on
the latest world-class technology, will enable us to enter more new markets with
even more cost-effective products. These products include an industry-leading,
low power-consumption unit for trailer and container tracking.
The Tracker Locate units supplied to Tracker South Africa into the private
consumer market should provide considerable annuity income in the long term.
The new international markets, based on existing successful market models,
should start to produce results towards the end of 2004.
Our new technology solutions division will focus on fulfilling market needs for
individual customers relating to our product range. This consulting and
integrated-solution approach will create more annuity income in future.
With our solid cash base, we are well positioned to capitalise on opportunities
that might arise and to facilitate organic growth during the next year.
Corporate activities
DigiCore acquired a total of 10 798 264 of its own shares at an average cost of
25,5 cents per share during the year. These shares are currently held as
treasury shares.
Corporate governance
The group"s compliance with the King II report on corporate governance will be
detailed in the 2003 annual report.
Accounting policies
The consolidated financial results have been prepared in accordance with South
African statements of generally accepted accounting practice (GAAP). Fisher
Hoffman PKF (Pretoria) Chartered Accountants (SA) has audited the results, and
its unqualified audit report is available for inspection at the company"s
registered office.
DigiCore has adopted Circular 7/2002 - Headline earnings, issued by the South
African Institute of Chartered Accountants. The prior year"s headline earnings
have been adjusted accordingly. A full reconciliation is provided in this
announcement.
Except for the application of Circular 7/2002, the accounting policies used in
preparing the year-end results are consistent with those applied in the annual
financial statements dated 30 June 2002.
Declaration of a final dividend
Notice is hereby given that a final dividend of 2 cents per share for the year
ended 30 June 2003 has been declared, payable to shareholders recorded in the
books of the company at the close of business on the record date appearing
below. The salient dates applicable to the final dividend are as follows:
Last date to trade cum final dividend Friday, 17 October 2003
First day to trade ex final dividend Monday, 20 October 2003
Record date Friday, 24 October 2003
Payment date Monday, 27 October 2003
No share certificates may be dematerialised or rematerialised between Monday, 20
October 2003 and Friday, 24 October 2003, both days inclusive.
For and on behalf of the board
NH Vlok FW Britz
Chief executive officer Group financial director
9 September 2003
Consolidated income statement
Year ended Year ended
30 June 30 June
2003 2002
R"000 Audited Audited
Revenue 172 161 193 671
Operating profit before depreciation and 29 376 23 635
amortisation
Depreciation 4 429 3 272
Amortisation of intangible assets 2 143 3 770
Net operating profit 22 804 16 593
Net finance cost 1 232 2 127
Equity income/(loss) in associate company 181 (212)
Profit before tax 21 753 14 254
Taxation 5 040 1 051
Profit after taxation 16 713 13 203
Attributable to outside shareholders - 47
Earnings attributable to ordinary 16 713 13 250
shareholders
Statistics
Number of shares in issue (000"s)
- end of period 239 256 239 256
- weighted average 235 483 237 010
Headline earnings per share (cents) 7,47 7,31
Earnings per share (cents) 7,10 5,59
EBITDA (%) 17,1 12,2
Consolidated balance sheet
As at As at
30 June 30 June
2003 2002
R"000 Audited Audited
ASSETS
Non-current assets 46 233 42 061
Property, plant and equipment 13 210 10 150
Intangible assets 21 287 23 015
Investments in associated company 3 599 3 708
Investments 706 706
Loans receivable 3 908 3 908
Deferred tax 3 523 574
Current assets 94 147 93 749
Inventories 28 163 27 591
Trade receivables 29 609 43 543
Taxation - 2 331
Cash and cash equivalents 36 375 20 284
TOTAL ASSETS 140 380 135 810
EQUITY AND LIABILITIES
Capital and reserves 119 088 105 171
Issued capital 33 353 36 131
Minority interest in subsidiaries - 18
Distributable reserve 87 735 69 022
Non-current liabilities 3 235 309
Borrowings 1 670 309
Provisions 1 565 -
Current liabilities 18 057 30 330
Taxation 2 055 -
Trade payables 13 345 30 012
Provisions 1 074 -
Current portion of borrowings 1 583 318
TOTAL EQUITY AND LIABILITIES 140 380 135 810
Net asset value per share (cents) 50,6 44,4
Tangible asset value per share (cents) 41,5 34,7
Reconciliation between earnings and headline earnings
Profit on
ordinary Net profit
R"000 activities Taxation 2003 2002
Net profit per
income statement 21 753 (5 040) 16 713 13 250
Goodwill amortisation 1 276 - 1 276 1 218
Profit on disposal of (468) 70 (398) 167
fixed assets
Impairment loss on - - - 2 691
loan
22 561 (4 970) 17 591 17 326
Statement of changes in equity
Distrib-
Share Share Minority utable
R"000 capital premium interest reserve Total
Balance as at 1 July 238 36 212 65 55 772 92 287
2001
Attributable earnings - - (47) 13 250 13 203
Treasury shares (1) (318) - - (319)
Balance as at 1 July 237 35 894 18 69 022 105 171
2002
Attributable earnings 16 713 16 713
Treasury shares (11) (2 767) (2 778)
Acquisition of (18) 18
minority shares
Balance as at 30 June 226 33 127 - 85 735 119 088
2003
Summarised cash flow statement
Year ended Year ended
30 June 30 June
2003 2002
R"000 Audited Audited
Cash generated by operations 28 324 21 301
Net financing cost (1 232) (2 127)
Taxation paid (3 604) (11 591)
Equity income/(loss) from associates 181 (212)
Cash flow from operating activities 23 669 7,371
Cash flow from investing activities (7 426) (5 388)
Cash flow from financing activities (152) 169
Net movement in cash resources 16 091 2 152
Cash and cash equivalents at beginning of 20 284 18 132
period
Cash and cash equivalents at end of period 36 375 20 284
Company secretary
FW Britz
Registered office
20 Eddington Crescent, Highveld Technopark, Centurion
Transfer secretaries
Computershare Limited, 70 Marshall Street, Johannesburg, 2001
08 September 2003
Stellenbosch
Sponsor
PSG Capital Limited
Date: 08/09/2003 04:30:08 PM Produced by the JSE SENS Department
