| Wed 17 Sep 2003, 14:58 | | REVIEWED INTERIM RESULTS, DECLARATION OF INTERIM |
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INSURE -
INSURANCE OUTSOURCING MANAGERS HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1998/013121/06)
("INSURE" or "the company")
Share code: INS ISIN Code: ZAE000033221
REVIEWED INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 AUGUST 2003, DECLARATION OF
INTERIM DIVIDEND AND RENEWAL OF CAUTIONARY ANNOUNCEMENT
The reviewed interim results for the six months ended 31 August 2003, together
with the comparative period ended 31 August 2002 and the audited results for
the year ended 28 February 2003, are presented below.
Consolidated Income Statements
Reviewed Reviewed Audited
interim interim results
results for results for For the
the the year ended
six months six months 28 February
ended ended 2003
31 August 31 August 2002 R"000
2003 R"000
R"000
Gross collections 914 966 557 341 1 085 108
Revenue 16 682 8 645 21 542
Operating income before
interest and taxation
Ongoing operations 1 391 316 1 000
Discontinued operations - (237) -
Net interest received 580 217 602
Net income before taxation 1 971 302 1 602
Taxation (734) 273 (185)
Net income after taxation 1 237 575 1 417
Dividends (555) - (555)
Attributable income 682 575 862
retained for the period
Determination of headline
earnings
Attributable income 1 237 575 1 417
Deduct: Profit on (28) - (84)
disposal of assets
Headline earnings 1 209 575 1 333
Earnings per share
information
Shares in issue (000"s) 111 092 111 092 111 092
Earnings per share (cents) 1.1 0.5 1.4
Headline earnings per share 1.1 0.5 1.4
(cents)
Dividends per share (cents) 0.5 0.0 0.5
Consolidated Balance Sheets
Reviewed as Reviewed as at Audited as at
at 31 August 2002 28 February
31 August R"000 2003
2003 R"000
R"000
ASSETS
Non-current assets 19 483 18 476 19 000
Property, plant and 17 557 15 714 16 602
equipment
Deferred taxation 1 926 2 762 2 398
Current assets 92 704 64 787 67 198
Accounts receivable 75 994 57 797 61 429
Less: unearned finance (5 189) (3 857) (4 183)
charges
Cash resources 21 899 10 847 9 952
Total assets 112 187 83 263 86 198
EQUITY AND LIABILITIES
Capital and reserves 16 682 15 713 16 000
Issued capital 53 654 53 654 53 654
Non-distributable reserves 2 735 2 810 2 773
Distributable reserves (39 707) (40 751) (40 427)
Non current liabilities 273 -
Long term liabilities & - 273 -
shareholder loan
Current liabilities 95 505 67 277 70 198
Accounts payable 94 342 65 867 66 873
Taxation 71 - 92
Shareholders for dividend 561 - 555
Bank overdrafts 531 1 410 2 678
Total equity and 112 187 83 263 86 198
liabilities
Shares in issue (000) 111 092 111 092 111 092
Net asset value per share 15.0 14.1 14.4
(cents)
Tangible net asset value 15.0 14.1 14.4
per share
Consolidated Statement of Changes in Equity
Non
Share Share Accumulated distributable
Capital Premium Loss Reserve Total
R`000 R"000 R"000 R"000 R"000
Balance at 28 February 11 53 643 (40 069) 2 773 16 3
2003
Prior year adjustment - - (358) - (358
Balance at 28 February 11 53 643 (40 427) 2 773 16 0
2003 after prior year
adjustment
Earnings attributable to
shareholders
Ongoing operations - - 1 237 - 1 23
Revaluation depreciation - - 38 (38) -
Dividend declared - - (555) - (555
Balance at 31 August 2003 11 53 643 (39 707) 2 735 16 6
Consolidated Cash Flow Statement
Reviewed Reviewed Audited
Six Months Six Months Twelve Months
31 August 2003 31 August 2002 28 February 2003
R"000 R"000 R`000
Cash flow generated by 14 835 14 846 14 252
operating activities
Cash flow used in investing (2 160) (2 200) (4 146)
activities
Cash flow generated by 1 419 5 038 5 415
financing activities
Cash and cash equivalents - 7 274 (8 247) (8 247)
beginning of year
Cash and cash equivalents 21 368 9 437 7 274
-end of period
Segmental Analysis
Reviewed Reviewed Audited
Six Months Six Months Twelve Months
31 August 2003 31 August 28 February 2003
2002
% R"000 % R"000 % R`000
Revenue
Interest earned 55% 9 218 66% 5 747 60% 13 014
Fees charged 30% 4 914 34% 2 898 33% 7 090
Other 15% 2 546 - - 7% 1 438
Revenue as reported 100% 16 678 100% 8 645 100% 21 542
Accounting policies
This report has been prepared in accordance with South African Statements of
Generally Accepted Accounting Practice. The accounting policies and methods of
measurement are in all material respects consistent with those applied in
previously reported financial statements and have been consistently applied
throughout the period under review. The Group"s auditors, Compendium Pretoria
Inc., have reviewed the financial information in terms of Rule 3.23 of the
listing requirements of the JSE. Their unqualified review opinion is available
for inspection at INSURE"s offices.
COMMENTS
Overview
The Board of INSURE is pleased to present the results for the six-months ended
31 August 2003. INSURE has continued to show significant growth during the
interim reporting period, which resulted from the successful roll out of its
strategies. During this phase, emphasis was placed on establishing a
representative and sustainable client base from the market, forming the basis
for longevity, organic growth, as well as new client support for all INSURE"s
core products and services.
The short term insurance market continues to change at a rapid rate and
therefore, as a specialist provider of niche services with a flexible
infrastructure, it allows INSURE to keep on repositioning itself as an
independent service provider, delivering value and a secure channel through
which its clients and industry users can operate.
INSURE remains concentrated on the short term insurance market, offering "one-
stop" quality products to address the business needs of its clients. INSURE is
fast becoming the leader in premium collections, premium financing and outsource
administration through its integrated offerings and professional service levels.
Review of operations
Results
In the six months ended 31 August 2003, INSURE"s gross collections increased by
64% from R557m in 2003 to R915m, and revenue by 93% compared with the
corresponding period in 2002. For the interim period ended 31 August 2003,
operating income before taxation increased by 553% and after tax by 115%
compared to the previous interim period. The interim headline earnings for the
same comparative period increased by 110%.
The improvements are attributable to two factors. The first factor being the
successful resolution of INSURE"s previously reported limitations experienced
from reduced banking facilities and the second being INSURE"s implementation of
its strategy of becoming the preferred independent service provider to the short
term insurance market. The second contributor continues through the achievement
of economies of scale, cost efficiencies, competitive pricing, quality service
and deliverables.
Changes in Equity
Comparatives
Comparative numbers have been restated to reflect the prior year adjustment as
described below, and have been adjusted in the interim period ended 31 August
2002 and the audited results for the year ended 28 February 2003.
Prior year adjustment
The adjustment reflected against the prior year retained earnings in the
Consolidated Statement of Changes in Equity of R358 000, represents the
disallowance by the Receiver of Revenue of expenses totalling R1 193 000.
These expenses were incurred by Auto Space Age Systems Limited ("ASAS") during
their closure, and were incurred prior to Insurance Outsourcing Managers
(Proprietary) Limited"s reverse listing into the ASAS shell in October 2000.
Prospects
INSURE will continue to focus on its core business and organic growth in all
areas of the business.
Dividend
The board of directors are pleased to announce that an interim dividend of 0.50
cent per share (one half cent), has been declared, and is payable to
shareholders on Monday 13 October 2003. The last date to trade "Cum" dividend
will be Friday, 03 October 2003. "Ex" dividend trade will commence on Monday,
06 October 2003 and the record date will be Friday 10 October 2003.
The reviewed consolidated profits after tax for the six months ended 31 August
2003 is R 1,237,000, representing a dividend cover of approximately 2,2 times.
Share certificates may not be dematerialised or rematerialised from Monday, 06
October 2003 to Friday, 10 October 2003 both days inclusive.
Renewal of cautionary announcement
Shareholders are referred to the cautionary announcement published on SENS dated
21 August 2003 and the press on 22 August 2003. In the announcement
shareholders were advised that INSURE is in advanced negotiations which, if
successfully concluded, may have a significant effect on the price of the
company"s securities. Accordingly, shareholders are advised to continue
exercising caution whilst dealing in INSURE shares until further announcements
are made.
For and on behalf of the Board
D.G Eriksson D. M. Burns
Chairman Chief Executive
17 September 2003
Directors
D.G. Eriksson* (Chairman), D.M. Burns (Chief Executive)(British), C.J.P.
Cilliers (Managing), B.B. Dunn* (Alternate A.J. Dunn)
(* Non-Executive)
Secretary and registered office Transfer office
Mr. J. Vogelzang, 6 St Giles Street Computershare Limited, 70 Marshall
Randburg, 2125 Street,
Johannesburg, 2001
Postal address and E-mail
P.O. Box 2867, Randburg, 2125 and Sponsor
"results2004@ioh.co.za" Arcay Group Limited
Date: 17/09/2003 02:34:38 PM Supplied by www.sharenet.co.za
Produced by the JSE SENS Department
