| Thu 9 Oct 2003, 17:29 | | AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2003 |
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JOHN DANIEL HOLDINGS LIMITED -
JOHN DANIEL HOLDINGS LIMITED
(Formerly E-data Holdings Limited)
Incorporated in the Republic of South Africa
Registration number: 1998/013215/06
JSE code: JDH ISIN: ZAE000044343
("the company" or "JDH")
AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2003
ABRIDGED CONSOLIDATED INCOME STATEMENT
Audited Audited
Year Nine months
ended ended
30 June 30 June
2003 2002
R"000 R"000
Revenue 10 812 -
Cost of sales (7 596) -
Gross profit 3 216 -
Other operating income 97 -
Administration, distribution
and selling expenses (4 119) (389)
Operating loss (806) (389)
Net finance cost (119) -
Net loss for the year (925) (389)
Loss per share (cents) (0,016)
Headline loss per share (cents) (0,003)
Weighted average number
of shares in issue 5 701 975 905
Reconciliation of basic
and headline loss:
Basic loss (925)
Amortisation of development costs 18
Amortisation of goodwill 748
Amortisation of patents 18
Headline loss (141)
ABRIDGED CONSOLIDATED BALANCE SHEET
Audited Audited
at at
30 June 30 June
2003 2002
R"000 R"000
ASSETS
Non-current assets 18 750 -
Property, plant and equipment 3 321 -
Intangible assets 15 409 -
Investment 20 -
Current assets 3 281 -
Total assets 22 031 -
EQUITY AND LIABILITIES
Capital and reserves 16 799 (1 352)
Share capital 570 1 152
Share premium 22 345 2 687
Non-distributable reserve 5 359 5 359
Accumulated loss (11 475) (10 550)
Non-current liabilities 1 818 1 060
Interest-bearing borrowings 738 -
Director"s loan 1 080 1 060
Amounts owing to group
companies - -
Current liabilities 3 414 292
Total equity and liabilities 22 031 -
Total number of shares in
issue at year-end 5 701 975 905
Net asset value per share,
including intangible
assets (cents) 0,294
Net asset value per share,
excluding intangible
assets (cents) 0,024
ABRIDGED CONSOLIDATED CASH FLOW
Audited Audited
Year Nine months
ended ended
30 June 30 June
2003 2002
R"000 R"000
Cash flow from operating
activities 63 (251)
Cash receipts from customers 9 798 -
Cash payments to suppliers
and employees (9 615) (251)
Cash generated by/(utilised by)
operations 183 (251)
Interest received 23 -
Finance cost (142) -
Taxation paid (1) -
Cash flow from investing
activities 1 365 -
Cash flow from financing
activities (1 063) 250
Net increase/(decrease) in
cash and cash equivalents 365 (1)
Cash and cash equivalents at
the beginning of the year (1) -
Cash and cash equivalents at
the end of the year 364 (1)
ABRIDGED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Non-
Share Share distributable Accumulated
capital premium reserve loss Total
R"000 R"000 R"000 R"000 R"000
Group
Balance -
30 June 2002 1 152 2 687 5 359 (10 550) (1 352)
Consolidation
of existing
shareholding (1 152) 1 152 - - -
Shares issued 2 20 202 - - 20 204
Capitalisation
issue 568 (568) - - -
Pre-listing
expenses written
off - (1 128) - - (1 128)
Net loss for
the year - - - (925) (925)
Balance -
30 June 2003 570 22 345 5 359 (11 475) 16 799
COMMENTS
REVIEW OF RESULTS AND FINANCIAL POSITION
JDH listed on the Venture Capital Market of the JSE Securities Exchange South
Africa ("JSE") on 4 February 2003 by way of a reverse listing through the E-data
Holdings Limited ("E-data") shell.
The results under review therefore represent the first year of reporting for the
group as a listed company, JDH had only one operational subsidiary, John Daniel
Containers Limited ("JDC") during the period under review. All group income was
derived from JDC.
The comparative figures for the prior period ended 30 June 2002 represent the
results of E-data and the comments on operations make reference to the prior
period audited results of JDC.
The late cancellation of two substantial orders during April 2003 impacted
heavily on turnover and profit of the group. While the Board is not satisfied
with the results of JDC, the company showed a substantial growth in
profitability from the previous year and gross profit increased from 22% to 30%
after the introduction of stringent cost control measures.
The nature of the business of JDC is such that it is highly sensitive to
conditions in the heavy transportation sector and turnover and profit depends on
obtaining large orders in a highly competitive market. JDC showed a nett loss of
R174 764 for the period under review and the operating loss for the group is
R806 130.
OPERATIONS REVIEW
JDC has established itself as a leader in the design and manufacture of highly
specialised trailers and equipment for road transportation. The company provides
services mainly to large transportation companies and corporate clients. All new
products are well researched, designed and patented prior to release into the
market and a further two patents were registered during the period under review.
During the current financial year and into the future, focus will be directed at
deriving income from the patented technology of the company. Already indications
are that the latest tipping trailer developed and patented, will have a major
impact on the heavy tipper body market.
The location of the manufacturing facilities in Mossel Bay is a point of concern
to the Board as most of the business of the company is derived from Kwa-Zulu
Natal and Gauteng and management is of the opinion that many potential orders
were lost due to location. While the company is well respected for its design
capabilities, clients are concerned about backup service from a far removed
location.
The Board has instituted a program to investigate the financial impact of
shifting location closer to markets.
JDC currently has a full order book until the end of November 2003 and
indications are that turnover for the interim period ending December 2003 will
exceed the previous year"s interim reporting period.
STRATEGIC OVERVIEW
The group"s strategic and corporate planning activity is currently being driven
by our Vision 2005 strategic plan ("Vision 2005") in terms whereof JDH plans to
diversify into a high technology holding company through strategic acquisitions.
The first acquisition of the majority shareholding of such a company, Vinguard
Limited ("Vinguard"), was concluded on 22 September 2003 as set out below. The
successful conclusion of the Vinguard transaction was a strategic milestone for
the group and the Board is confident that this company will grow to become a
major contributor to group income during the next three years.
ACQUISITION OF VINGUARD
Vinguard was acquired with effect from 22 September 2003 for a purchase
consideration of R1 million. The purchase consideration will be settled by the
issue of 100 000 000 new ordinary shares at an issue price of 1 cent per share,
and an application will be made to the JSE for the listing of such shares.
During 2002 Vinguard was awarded third place in the Deloitte & Touche/Catalist
innovation competition for the most commercially viable innovation developed at
a South African university and a Thrip excellence award from the Department of
Trade and Industry. Vinguard manufactures monolithic, slow-release devices for
optimum in-package preservation of export table grapes. The Vinguard technology
was developed by the University of Stellenbosch over a seven-year period and
research was funded by the Deciduous Fruit Producers Trust. It is estimated that
over 500 million slow release devices are utilised annually worldwide and the
patented Vinguard technology, represents the very latest in effective technology
in the field. Currently the company has a pilot plant situated in Stellenbosch
and it is the intention to expand the production facility during 2004.
PROSPECTS
The reversal into E-data and subsequent listing on the JSE was an expensive
process and placed a heavy burden on management time and resources. The Board is
satisfied that the decision to list was the correct decision and already
tangible benefit has been derived from being a listed entity. The group has
embarked on a process of growth through strategic acquisitions. The Board is
confident that shareholder value will be unlocked in terms of Vision 2005, which
maps the strategic path for the group over the next two years.
JDC continues to develop and manufacture leading technology products which are
real and tangible and focus is now directed on unlocking the value of the
company"s vast patented intellectual property, both locally and internationally.
Vinguard has enormous potential to become an income generator on both a local
and global basis and the management of Vinguard are committed to rapidly growing
this business. The challenge facing the group is to convert its advanced
technologies into operating profit in the short- to medium-term and the Board is
confident that this can be achieved.
LISTING ON THE ALTERNATIVE EXCHANGE ("ALTX")
The Board has taken an in-principle decision to apply to the JSE for a listing
on AltX in the beginning of 2004.
ACCOUNTING POLICIES AND AUDIT REPORT
The financial statements have been prepared in accordance with SouthAfrican
Statements of Generally Accepted Accounting Practice. The comparative figures
shown are for E-data as the group did not exist in its current form as at the
comparative date.
The results have been audited byFisher Hoffman PKF (Newlands) Inc. and their
unqualified audit report is available for inspection at the company"s registered
office.
DIVIDENDS
No dividends have been declared or are intended to be declared for the period
under review.
RESIGNATION OF DIRECTOR
Mr CA Stride has resigned as a non-executive director due to other commitments.
The Board is grateful for his contribution to the company.
For and on behalf of the Board
LF Harris Mossel Bay
Chairman 9 October 2003
Directors: LF Harris (Executive chairman); DJ Hall (Executive director); T Mvusi
(Non-executive director); S Tshiki (Non-executive director); S Serex (Non-
executive director).
Company secretary: J Stride.
Registered office: 1 Barrier Street, Mossdustria, Mossel Bay 6500.
Transfer secretaries: Computershare Limited, 70 Marshall Street, Marshalltown
2001. PO Box 61051, Marshalltown 2107.
Sponsor: LPC Manhattan Sponsors.
Date: 09/10/2003 05:15:11 PM Supplied by www.sharenet.co.za
Produced by the JSE SENS Department
