| Mon 15 Sep 2003, 8:39 | | AUDITED FINANCIAL REPORT FOR THE YEAR TO 31 JULY |
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EOH - AUDITED FINANCIAL REPORT FOR THE YEAR TO 31 JULY 2003
Enterprise Outsourcing Holdings Limited
(Company registration no: 1998/014669/06)
Share code: EOH ISIN: ZAE000022026
("EOH" or "the company")
Systems make it possible... People make it happen!
AUDITED FINANCIAL REPORT FOR THE YEAR TO 31 JULY 2003
* REVENUE UP 54%
* EPS UP 22%
* HEADLINE EPS UP 20%
* CASH UP 37%
Group Income Statements
Audited Audited
12 months 12 months
to to
31 July 31 July
2003 2002 Change
(R"000) (R"000) (%)
Revenue 175 969 114 328 54
Profit before interest 16 398 14 116 16
Net interest received 1 652 480
Profit from operations before goodwill 18 050 14 596 24
Goodwill amortised (1 123) (1 081)
Profit from operations 16 927 13 515
Taxation 2 320 1 557
Outside shareholders" interest (212) -
Net profit for period 14 395 11 958 20
Number of shares in issue ("000) 50 667 50 667
Weighted average number of
shares in issue ("000) 49 238 49 787
Earnings per ordinary share (cents) 29,24 24,02 22
Headline earnings per
ordinary share (cents) 31,52 26,19 20
Diluted earnings per share (cents) 28,10 21,89 28
Dividends per share (cents) 6,00 -
Reconciliation between earnings and
headline earnings:
Net profit for period 14 395 11 958
Goodwill amortised 1 123 1 081
Headline earnings 15 518 13 039
Headline earnings per
ordinary share (cents) 31,52 26,19
Group Balance Sheets
Audited Audited
31 July 31 July
2003 2002
(R"000) (R"000)
ASSETS
Non-current assets
Tangible assets 3 850 3 482
Intangible assets 27 333 30 414
Loans receivable 132 1 689
Current assets
Trade receivables 26 675 30 646
Other receivables 2 500 1 932
Inventory 78 50
Cash and cash equivalents 40 396 29 588
Total assets 100 964 97 801
EQUITY AND LIABILITIES
Ordinary shareholders" interest 52 733 42 692
Non-current liabilities
Vendors for acquisition 6 040 6 040
Interest bearing borrowings 522 637
Deferred taxation 360 1 108
Current liabilities
Trade and other liabilities 21 059 27 189
Deferred revenue 18 594 20 694
Taxation 1 656 (559)
Total equity and liabilities 100 964 97 801
Group Cash Flow Statements
Audited Audited
12 months to 12 months to
31 July 31 July
2003 2002
(R"000) (R"000)
Operating income before interest and taxation 16 398 14 116
Non-cash items 4 332 2 516
Cash generated from trading operations 20 730 16 632
(Increase)/decrease in working capital (4 855) 1 034
Cash generated from operations 15 875 17 666
Taxation paid (853) (3 703)
Dividends paid (3 040) -
Net interest income 1 652 480
Cash inflow from operating activities 13 634 14 443
Cash outflow to investing activities (2 743) (15 265)
Cash (outflow)/inflow from financing activities (83) 5 536
Net increase in cash and cash equivalents 10 808 4 714
Cash and cash equivalents at beginning of period 29 588 24 874
Cash and cash equivalents at end of period 40 396 29 588
Statement of Change in Ordinary Shareholders" Interest
Audited Audited
31 July 31 July
2003 2002
(R"000) (R"000)
Share capital and premium 9 556 11 174
Balance at beginning of period 11 174 10 066
(Repurchase)/reissue of shares held by subsidiary (1 618) 1 108
Distributable reserves 43 177 31 518
Balance at beginning of period 31 518 19 400
Attributable income 14 395 11 958
Dividends (3 040) -
Reissue of shares held by subsidiary 92 160
Outside shareholders" interest 212 -
Ordinary shareholders" interest 52 733 42 692
Comments
Group profile
EOH is a business solutions provider creating lifelong information technology
partnerships by developing IT strategies, supplying and implementing solutions
and managing enterprise-wide business systems for medium to large clients.
EOH operates in the following three clusters of business units as a fully
integrated business:
EOH Strategic Solutions - is the initial point of contact with EOH clients
through IT strategy development, management consulting, IT-enabled business
process re-engineering, software selection and Supply Chain Logistics education
to support world-class enterprise systems.Business Systems - Through a number of
subsidiary companies, EOH is able to sell, implement and support a range of
world-class business applications including ERP, CRM, Business Intelligence,
Advanced Planning and Scheduling, e-Commerce and Manufacturing Execution Systems
(MES).
EOH Outsourcing - involves comprehensive maintenance and support of the
clients" IT infrastructure and applications through the offering of full IT
outsourcing and Application Hosting.
EOH has a presence in all major centres in South Africa and operates in Africa
and Australia.
Basis of preparation
The financial statements of the Group have been prepared in accordance with
the South African Statements of Generally Accepted Accounting Practice, which
policies are consistent with those of the prior year.
The Group"s auditors, IAPA Johannesburg Chartered Accountants (SA), have
audited the financial information for the year to 31 July 2003. Their report is
available for inspection at the registered office of the company.
Financial results
The board is satisfied with the overall performance for the period under
review. Revenue increased by 54% to R176,0 million. Headline earnings per share
rose by 20%. Profit for the period amounted to R14,4 million reflecting an
improvement of 20%. No acquisitions were made during the period under review.
The balance sheet remains strong with the growth being financed internally.
Cash resources have increased by 37% to R40,4 million from the comparative
period. Debtors days have improved to 50 days. The Group is essentially debt
free.
During this period, 1 284 228 shares were repurchased by a wholly owned
subsidiary of EOH and will not be cancelled.
Future plans
The consistent application of our business model and strategy are proving
successful and we intend to continue therewith. The major investment made in new
services and product offerings combined with our existing business as well as
our large customer base make us a leader in the enterprise software arena. A
major objective for the future will be to focus on our human capital
development, which we see as our main differentiator.
EOH is committed to Black Economic Empowerment which is an integral part of
our business strategy. Our BEE strategy is based on four levels: equity,
strategic, managerial and operational levels. Specific action plans and goals
have been set.
Cautionary
The company is still under cautionary in terms of the announcement made on 9
September 2003. In terms of the announcement shareholders are advised that EOH
has reached an agreement to acquire the entire issued share capital of Atos KPMG
Consulting (Pty) Ltd.
Both companies are similar in size, have complementary business models and a
similar outlook for the future. Some of the benefits of the two businesses
joining forces are:
* The combined business will become a leading business and technology solution
provider, with a staff complement of over 600 professionals, substantial
turnover, offices in five locations in SA and operations in several African
countries and Australia.
* Both companies will gain hundreds of already established clients to whom a new
range of services can be offered.
* Both businesses will benefit from having access to each others markets,
Commerce and Industry on the one hand and Financial Services and the Public
Sector on the other.
* The international brand "Atos KPMG Consulting" will give the business global
reach, international connectivity and the reference-ability necessary to play at
the top end of the market.
Implementation of the acquisition would be conditional upon the fulfilment,
inter alia, of the following conditions precedent:
- obtaining the necessary regulatory approvals, which would include those of the
Securities Regulation Panel, the JSE Securities Exchange South Africa and the
Competitions Commission South Africa; and
- EOH shareholder approval, if required.
Dividends
Notice is hereby given that a cash dividend of 7 cents per share ("the
dividend") has been declared, payable to shareholders recorded in the books of
the Company at the close of business on Friday, November 7 2003.
Shareholders are advised that the last day to trade
"cum" the dividend will be Friday, 31 October 2003.
The shares will trade "ex" dividend as from Monday, 3 November 2003,
and the record date will be Friday, 7 November 2003.
Payment will be made on Monday, 10 November 2003.
Share certificates may not be dematerialised or rematerialised during the period
Monday, 3 November 2003 to Friday, 7 November 2003, both days inclusive.
15 September 2003
REGISTERED OFFICE
Ground Floor Tel: (011) 607-8100
Block F Fax (011) 616-9929
Gillooly"s View website: www.eoh.co.za
1 Osborne Lane, Bedfordview e-mail: info@eoh.co.za
DIRECTORS
Asher Bohbot (Chairman and CEO) Bernard van den Berg
Rob Sporen* Antonio Cocciante
Peter Bartlett Jane Thomson
Roedolf du Toit Ken Cullinan
(*Dutch)
Company Secretary
S P Matheson
For further information, please contact:
Rob Sporen on the above numbers or
on cell: 082 444 7533
Date: 15/09/2003 08:00:31 AM Supplied by www.sharenet.co.za
Produced by the JSE SENS Department
