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Dynamic Cables - Unaudited Results For The Half Year Ended 30 June 2003
DYNAMIC CABLES RSA LIMITED
Formerly CONLOG HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Reg No 1987/01807/06)
JSE share code DYM
ISIN number ZAE000028270
("Dynamic Cables", "the company" or "the group")
UNAUDITED RESULTS FOR THE HALF YEAR ENDED 30 JUNE 2003
COMMENTARY
The interim results for the company and the state of its affairs are set out in
the following statement. Trading in the shares is currently suspended and has
been since 28 February 2002.
REVIEW OF OPERATIONS
Traditionally the first six months is a slow period for the telecoms industry.
This notwithstanding, Dynamic Cables has shown healthy turnover representing an
8% year on year growth.
Tight containment of costs effectively resulted in the small increase in
turnover translating to a 15% increase in profits attributable to ordinary
shareholders.
Furthermore, the completion of the transaction between Cape Empowerment Trust
Limited and Dynamic Cables resulted in the fully diluted number of shares
decreasing significantly. The net result was that the fully diluted headline
earnings per share has moved up by 75% for this period.
As expected, Dynamic Cables SA (Pty) Ltd was the major contributor to the
group"s earnings contributing some 80% of the attributable income.
The start-up business, MEC Energy, has shown rapid growth and currently
contributes approximately 20% of the group"s attributable profits.
The fibre optic laboratory commissioned during the course of the previous
financial year has already reached the break-even point and the group
anticipates a profitable situation in the near future
The loss making Dynatech Telecoms, being the enclosure business, has continued
to perform poorly and will no longer form part of the group"s strategy going
forward. This business has been placed into liquidation. The effect of this on
the group"s EPS and NAV is unlikely to be negative.
CAUTIONARY
Significant progress has been made with the resolution of the issue of tainted
shares. Settlements have been reached with two vendors and a number of others
are being negotiated. The board of directors expects to conclude this process
before the year-end and also anticipates the lifting of the suspension of
trading in the group"s shares in the near future. Under the circumstances
shareholders are advised to continue to exercise caution when dealing with their
Dynamic Cables shares.
PROSPECTS
Subsequent to the half year, the telecommunication industry has experienced an
upturn in activity. As a result of the investments made during the current and
previous year, as well as restructuring, the group has been in a position to
take advantage thereof.
The company will continue to adopt a conservative approach in considering future
acquisitions and has strategies to preserve its cash-positive base and to grow
the profitable operations under its control.
ACCOUNTING POLICIES
The accounting policies have been consistently applied and comply with South
African Statements of Generally Accepted Accounting Practice.
On behalf of the Board
Shaun Rai
Acting Chairman
UNAUDITED RESULTS FOR THE HALF YEAR ENDED 30 JUNE 2003
ABRIDGED INCOME STATEMENT
Unaudited Unaudited Audited
6 months 6 months 12 months
30 Jun 2003 30 Jun 2002 31 Dec 2002
R"000 R"000 R"000
Turnover 39,595 99,604
42,751
(Loss)/Profit before 2,104 2,448 6,262
interest
Interest received 687 215 483
Interest paid (573) (1,598)
(383)
(Loss)/Profit before 2,408 2,090 5,147
abnormal
item
Abnormal item - (23,370)
-
Profit before taxation 2,408 2,090 (18,223)
Taxation - 2,124
-
Profit after taxation 2,408 2,090 (20,347)
Attributable to ordinary 2,408 2,090 (20,347)
shareholders
5.2 4.5 (43.5)
Earnings/(loss) per share
Fully diluted 3.5 2.0 (29.8)
earnings/(loss) per share
Headline earnings/(loss) 5.2 4.5 (8.8)
per share
Fully diluted headline 3.5 2.0 (6.0)
earnings/(loss) per share
Net asset value per share 20.4 63.2 15.2
Tangible net asset value (1.7) (27.4) (9.5)
per share
Fully diluted net asset 13.9 27.7 10.4
value per share
Fully diluted tangible net (1.1) (12.0) (6.5)
asset value per share
Number of shares in issue 46,734 46,734 46,734
Weighted number of shares 46,734 46,734 46,734
in issue
Fully diluted number of 68,338 106,734 68,338
shares
Reconciliation of headline
earnings
Net profit/(loss) for the 2,408 2,090 (20,347)
period
Additional provision for - - (1,150)
restructuring costs
reversed
Impairment of goodwill - - 17,432
Profit on sale of fixed - - (509)
assets
Goodwill amortised - - 120
Tax effects of adjustments - - 345
Headline earnings 2,408 2,090 (4,109)
CASH FLOW STATEMENT
Unaudited Unaudited Audited
6 months 6 months 12 months
30 June 2003 30 June 2002 31 Dec 2002
R"000 R"000 R"000
Cash flows from
operating activities (2,034) 3,147 5,392
Cash receipts from
customers 44,189 40,417 99,447
Cash paid to suppliers
and employees (46,527) (36,912) (92,940)
Cash generated by
operations (2,338) 3,505 6,507
Interest received 687 215 483
Interest paid (383) (573) (1,598)
Normal taxation paid - - -
Cash flows from
investing activities (396) (6,043) (5,573)
Purchase of tangible
Assets (396) (4,572) (4,572)
Proceeds on disposal of
tangible assets - - 1,055
Purchase of intangible
assets - (190) (240)
Purchase of financial
Assets - (1,281) (1,816)
Cash flows from
financing activities (180) - (585)
Payment of long - term
Borrowings (180) - (585)
Net (decrease)/increase in
cash and cash equivalents (2,610) (2,896) (766)
Cash and cash equivalents
at the beginning
of the period 7,548 8,314 8,314
Cash and cash equivalents
at the end
of the period 4,938 5,418 7,548
ABRIDGED BALANCE SHEET
Unaudited Unaudited Audited
6 months 6 months 12 months
30 Jun 2003 31 Dec 2002 30 Jun 2002
R"000 R"000 R"000
Capital employed
Net shareholders" interest 9,517 29,548 7,111
Share capital and reserves 9,517 29,548 7,111
Long-term liabilities 1,808 1,242 1,821
Deferred taxation - 980 -
11,325 31,770 8,932
Employment of capital
Tangible assets 8,165 10,343 9,404
Intangible assets 10,299 42,331 11,570
Investments 3,696 3,035 3,696
Deferred taxation 785 2,593 785
Net current assets (11,619) (26,532) (16,523)
Current assets 28,693 33,180 35,420
Cash 4,938 5,418 7,548
Other 23,755 27,762 27,872
Current liabilities 40,312 59,712 51,943
11,325 31,770 8,932
STATEMENT OF CHANGES IN EQUITY
Share Share Shares to Retained Total
Capital Premium be issued income
(Accumulated
loss)
R R R R R
Balance at 1
January 2001 2,689 92,327 - (70,177) 24,839
Shares issued
during the period 500 3,500 4,000
Net profit
for the year 5,436 5,436
Reduction of
share capital (852) (5,965) (6,817)
Balance at 1
January 2002 2,337 89,862 - (64,741) 27,458
Net loss for
the year (20,347) (20,347)
Balance at 31
December 2002 2,337 89,862 - (85,088) 7,111
Net profit for
the period 2,408 2,408
Balance at
30 June 2003 2,337 89,862 - (82,680) 9,519
Date: 26/09/2003 07:31:07 AM Produced by the JSE SENS Department
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