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Pinnacle - Restated Audited Financial Results For The Year Ended 30 June 2003
Pinnacle Technology Holdings Limited
(Registration number 1986/000334/06)
Share code: PNC ISIN: ZAE000022570
("Pinnacle" or "the company")
RESTATED AUDITED FINANCIAL RESULTS FOR THE YEAR ENDED 30 JUNE 2003
Following the publication of the provisional audited financial statements of
Pinnacle in respect of the year ended 30 June 2003 on SENS on 29 September 2003,
it has come to the attention of the company in the course of the preparation of
the annual report that a number of errors were discovered particularly
pertaining to the deferred tax calculation and allocations of items in the cash
flow statement. The errors have been corrected as set out in these restated
financial statements and will be incorporated in the annual report which will be
mailed to shareholders on or about 22 December 2003.
The explanations for the adjustments and their financial implications are
detailed in paragraphs 1 through to 4 below.
The consolidated financial statements are prepared in accordance with South
African Statements of Generally Accepted Accounting Practice, the South African
Companies Act, as amended, and the disclosure requirements of the JSE Securities
Exchange South Africa. The consolidated financial statements have been prepared
on the fair value and going concern basis. The principal accounting policies are
consistent with those applied in the restated annual financial statements for
the year ended 30 June 2002.
The revised unqualified audit report prepared by the company"s auditors IAPA
Johannesburg, Chartered Accountants (SA), is available for inspection at the
registered office of the company.
All the other information pertaining to the company contained in the 29
September 2003 announcement remains applicable to this announcement.
Explanations for the adjustments to the financial results
1. Errors in the calculation of the deferred taxation movement for the year and
the normal taxation computation.
1.1 The Restated Financial Results reflect an increase in the net normal
taxation charge from R1 646 999 to R4 306 554, being an increase of R2 659 546.
1.2 The Net Profit for the year has been restated at an amount of R2 412 507 as
opposed to the amount of R4 851 574 previously reflected, being a decrease of R2
439 067. The Net Profit Attributable to minority shareholders has accordingly
been adjusted from an amount as previously stated of R1 730 005, to an amount of
R1 509 526, being a decrease of R220 479.
1.3 The Headline Earnings per Share has been restated at an amount of 4,78 cents
compared to the amount as previously reflected of 6,33 cents.
1.4 The Earnings per Share has been restated at an amount of 1,62 cents compared
to the amount as previously reflected of 3,26 cents.
1.5 The necessary changes have been reflected in the Balance Sheet and Cash Flow
Statement to reflect the effect of the above changes.
2. Reallocations between the various categories within the Cash Flow Statement.
These reallocations do not affect the net cash inflow for the year as
previously stated, of R3 309 476. The reallocations are as follows:
2.1 Cash flow from operating activities - reallocation to investing activities
of an amount of R2 962 638 (See 2.2 below) and a reallocation of an amount of
R204 182 to financing activities (See 2.3 below).
2.2 Cash flow to investing activities - reallocation of investing activities
amounting to R2 962 638, that were previously included in operating activities.
2.3 Cash flow from financing activities - reallocation of R204 182 in respect of
the movement in the current portion of long-term liabilities previously included
in operating activities.
3. Reallocation of current portion of long-term liabilities
The current portion of long-term liabilities amounting to R2 285 696 has been
reallocated to current liabilities.
4. Outside shareholders" share of movement in non-distributable reserve
The outside shareholders" share of the non-distributable reserve has been
restated by an amount of R92 562, to correctly reflect their share in the
movement in the revaluation reserve relating to the properties.
For and on behalf of the board
C D Biddlecombe A J Fourie
(Chairman) (Chief Executive Officer)
Midrand
15 December 2003
Registered Office: Transfer Secretaries:
Pinnacle Park, 269 Computershare Limited
16th Road Ground Floor
Randjespark 70 Marshall Street
Midrand Johannesburg, 2001
Directors:
C D Biddlecombe* (Chairman), A J Fourie (Chief Executive Officer),
T Maraga-Tshivhase, A Tugendhaft*
*Non-executive
Sponsor:
LPC Manhattan Sponsors (Pty) Ltd
Auditors:
IAPA Johannesburg, Chartered Accountants (SA)
INCOME STATEMENT
Audited
Audited 30 Jun
30 Jun 2003 Audited
2003 As previously 30 Jun
Restated stated 2002
Notes R R R
Revenue 417 818 272 417 818 272 358 547 585
Operating profit before interest 17 363 783 17 363 783 12 529 607
Interest received 700 795 700 795 944 577
Interest paid (5 051 792) (5 051 792) (5 673 542)
Net profit before taxation 13 012 786 13 012 786 7 800 642
Normal taxation 1.1 (4 306 545) (1 646 999) (2 641 372)
Net profit for year 8 706 241 11 365 787 5 159 270
Share of (loss)/net income
from associates (229 902) (229 902) 1 953 178
Net profit attributable to
minority shareholders 1.2 (1 509 526) (1 730 005) (598 934)
Net profit from ordinary
activities 6 966 813 9 405 880 6 513 514
Exceptional items (4 554 306) (4 554 306) -
Net profit for year 1.2 2 412 507 4 851 574 6 513 514
Earnings per share (cents) 1.4 1,62 3,26 4,38
Headline earnings per share
(cents) 1.3 4,78 6,33 4,38
RECONCILIATION OF HEADLINE EARNINGS
Net profit for year 2 412 507 4 851 574 6 513 514
Adjusted for:
Exceptional items 4 554 306 4 554 306 -
Amortisation of goodwill 142 758 142 758 -
Headline earnings 7 109 571 9 405 880 6 513 514
BALANCE SHEET
Audited
Audited 30 Jun
30 Jun 2003 Audited
2003 As previously 30 Jun
Restated stated 2002
Notes R R R
ASSETS
Non-current assets 58 404 523 59 388 047 60 691 228
Fixed assets 34 579 924 34 579 924 28 205 939
Investments 6 909 853 6 909 852 14 413 437
Deferred tax 1.5 15 352 185 16 335 710 16 927 168
Intangible assets 1 562 561 1 562 561 1 144 684
CURRENT ASSETS 106 535 718 106 535 718 123 285 925
Inventories 49 049 335 49 049 335 64 634 381
Accounts receivable 46 042 370 46 042 370 50 517 007
Cash and cash equivalents 11 444 013 11 444 013 8 134 537
Total assets 164 940 241 165 923 765 183 977 153
EQUITY AND LIABILITIES
Capital and reserves 79 587 863 82 119 492 70 442 682
Share capital and premium 125 885 817 125 885 817 125 885 817
Non-distributable reserves 4 10 310 208 10 402 770 3 577 534
Accumulated loss 1.5 (56 608 162) (54 169 095) (59 020 669)
Outside shareholders" interest 1.5, 4 4 017 978 4 145 895 2 138 134
Non-current liabilities 10 992 426 13 278 121 12 393 082
Interest bearing borrowings 3 10 992 426 13 278 121 12 393 082
Current liabilities 70 341 974 66 380 257 99 003 255
Accounts payable 65 930 913 65 930 913 74 620 907
Short-term loan - - 23 801 689
Current portion of long-term
liabilities 3 2 285 696 - -
Taxation 1.5 2 125 365 449 344 580 659
Total equity and liabilities 164 940 241 165 923 765 183 977 153
CASH FLOW STATEMENT
Audited
Audited 30 Jun
30 Jun 2003 Audited
2003 As previously 30 Jun
Restated stated 2002
Notes R R R
Cash flow from operating
Activities 2.1 1 854 027 4 612 484 25 530 921
Cash flow from operations 1.5 6 668 955 11 645 902 30 275 593
Investment income 700 795 700 795 944 577
Interest paid (5 051 792) (5 051 792) (5 673 542)
Taxation paid 1.5 (463 931) (2 682 421) (15 707)
Cash flow to investing activities 2.2 774 591 (2 188 047) (18 608 690)
Net additions to fixed assets (2 327 252) (2 187 947) (5 718 149)
Decrease/(Increase) in investments 3 178 074 - (12 310 143)
Acquisition of subsidiaries (76 231) (100) (580 398)
Cash inflow from financing
activities 2.3 680 858 885 039 420 152
Increase in long-term liabilities 680 858 885 039 420 152
Cash flow for year 3 309 476 3 309 476 7 342 383
Cash and cash equivalents at
beginning of year 8 134 537 8 134 537 792 154
Cash and cash equivalents
at end of year 11 444 013 11 444 013 8 134 537
STATEMENT OF CHANGES IN EQUITY
Audited
Audited 30 Jun
30 Jun 2003 Audited
2003 As previously 30 Jun
Restated stated 2002
Notes R R R
Changes in share capital 1 486 073 1 486 073 1 486 073
Balance at beginning of year 1 486 073 1 486 073 1 480 695
Issue of shares - - 5 378
Changes in share premium 124 399 744 124 399 744 124 399 744
Balance at beginning of year 124 399 744 124 399 744 124 190 004
Premium on shares issued - - 209 740
Non distributable reserves 10 310 208 10 402 770 3 577 534
Balance at beginning of year 3 577 534 3 589 408 3 571 393
Transfer to non-distributable
reserve 6 732 674 6 813 362 6 141
Retained earnings (56 608 162) (54 169 095) (59 020 669)
Balance at beginning of year (59 020 669) (59 020 669) (65 534 183)
Net profit for year 2 412 507 4 851 574 6 513 514
Ordinary shareholders" equity
at end of the year 79 587 863 82 119 492 70 442 682
Date: 15/12/2003 01:17:08 PM Supplied by www.sharenet.co.za
Produced by the JSE SENS Department
