| Wed 19 May 2004, 8:35 | | RESULTS FOR THE 12 MONTHS ENDED 29 FEBRUARY 2004 |
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SYNERGY - PROVISIONAL AUDITED RESULTS FOR THE 12 MONTHS ENDED 29 FEBRUARY 2004
SYNERGY HOLDINGS LIMITED
(Registration number 1995/006315/06)
Share code: SNG ISIN: ZAE000017760
("Synergy", "the company" or "the group")
PROVISIONAL AUDITED RESULTS FOR THE 12 MONTHS ENDED 29 FEBRUARY 2004
INCOME STATEMENT
12 months 12 months
ended ended
29 February 28 February
2004 2003
(Audited) (Audited) Change
R R %
Gross revenue 21 817 777 18 909 342 15,4
Cost of sales (6 091 089) (5 053 790) 20,5
Gross profit 15 726 688 13 855 552 13,5
Operating costs (14 258 488) (12 754 274) 11,8
Operating profit 1 468 200 1 101 278 33,3
Investment income 316 609 234 292 35,1
Finance costs (97 258) (68 339) 42,3
Taxation (146 897) -
Net profit for the year 1 540 654 1 267 231 21,6
Shares in issue 54 409 900 54 409 900 0,0
Earnings per share 2,83 2,33 21,6
Headline earnings per share 2,79 2,34 19,4
Reconciliation of
headline earnings
Net profit for year 1 540 654 1 267 231
Adjusted for:
Profit on asset disposal (20 878) (18 079)
Loss on investment revaluation - 26 486
Headline earnings 1 519 776 1 275 638
Headline earnings per share 2,79 2,34
BALANCE SHEET
ASSETS
Non-current assets 1 835 552 1 167 501
Fixed assets 1 664 789 1 140 280
Investments 170 763 27 221
Current assets 5 574 904 4 952 940
Inventories 255 567 122 459
Accounts receivable 1 860 398 1 868 924
Bank balances 3 458 939 2 961 557
Total assets 7 410 456 6 120 441
EQUITY AND LIABILITIES
Capital and reserves 4 881 689 4 321 442
Issued capital 3 593 074 3 593 074
Accumulated profit 1 288 615 728 368
Long-term liabilities 341 915 -
Current liabilities 2 186 852 1 798 999
Accounts payable 1 920 411 1 223 151
Taxation 106 356 82 208
Current portion of long-term
liabilities 160 085 100 321
Bank overdraft - 393 319
Total equity and liabilities 7 410 456 6 120 441
Net asset value per share 8,97 7,94
Net tangible asset value per share 8,97 7,94
CASH FLOW STATEMENT
12 months 12 months
ended ended
29 February 28 February
2004 2003
(Audited) (Audited)
R R
Net cash from operating activities 1 545 510 1 444 668
Net cash from investing activities (1 056 490) (197 645)
Net cash from financing activities 401 680 (79 829)
Net increase in cash 890 700 1 167 194
Cash at beginning of year 2 568 238 1 401 044
Cash at end of year 3 458 938 2 568 238
STATEMENT OF CHANGES IN EQUITY
Opening balance 4 321 442 3 298 671
Shares repurchased and cancelled - (244 560)
Net income for year 1 540 654 1 267 331
Dividends paid (980 409) -
Closing balance 4 881 687 4 321 442
Commentary
Synergy focuses on providing Accpac Accounting Software solutions around
software sales, implementation, customisation and associated networking support.
The Group continues to focus specifically in this area.
Accounting policies
These audited results of the Group comply in all material respects with South
African Statements of Generally Accepted Accounting Practice and are consistent
with those applied in the audited financial statements as at 28 February 2003.
Auditor"s review opinion
Synergy"s external auditors, Van Sitterts Chartered Accountants, have audited
these results. Their unqualified audit opinion is available for inspection at
Synergy"s registered office.
Financial comment
The Directors are satisfied with the results of Synergy for the year ended 29
February 2004. The highlights of these results are:
* Turnover increased by 15%.
* Net profit after taxation increased by 22%.
* Headline earnings per share increased by 19%.
* Cash on hand increased from R2 568 238 to R3 458 938.
The Directors are pleased with the growth in cash balances, given that dividends
of R980 409 and Secondary Tax on Companies of R122 422 were paid during the
period.
Specific note regarding taxation
Shareholders should be aware that Synergy has enjoyed the benefit of an assessed
tax loss from previous years. The bulk of the current periods earnings were set-
off against the last of that assessed tax loss. Future periods will be affected
by taxation at the normal rate.
It is important to note that the effect of taxation on future earnings may
create a situation where comparative performance appears flat or even lower.
Prospects by division
The Synergy Accounting division was awarded the Accpac National Dealer of the
Year award, despite operations only existing in the Gauteng region. It is
anticipated that this division will seek representation in the other major
centres of the country. It is probable that this may require the acquisition of
businesses in these centres and Synergy Accounting will be pro-actively seeking
these out. It is anticipated that the expanded representation will expand
Synergy Accounting"s possibilities of acquiring large accounts.
The Synergy Networking division is still in the process of acquiring the
resource required to make an independent offering to the market. By independent
we mean, specific networking services as opposed to complementary services to
the Synergy Accounting division. We cannot predict when the required critical
mass will be achieved.
Appsoft continues to contribute positively, particularly in the area of
custom development for Synergy Accounting implementations. However there has
been a positive growth in the sale of shelf products both locally and
internationally. We anticipate a minor growth in the sale of shelf products.
Change to AltX
Synergy has been invited by AltX to present to the AltX advisory committee
regarding switching to the AltX board. It is anticipated that Synergy"s
presentation to the committee will take place in early June 2004.
Dividend
The Board has considered the present cash requirements of the Group and believes
there is sufficient cash in the Company to adequately cover its working capital
requirements for the foreseeable future. Consequently a final dividend of 0,3
cent per ordinary share has been declared for the 2004 financial year (Dividend
No. 3).
This dividend will be payable to all ordinary shareholders recorded in the
register on the record date, being Friday, 25 June 2004.
The salient dates for the payment of the dividend are:
* The last date to trade cum dividend in order to be
recorded in the register on the record date is 18 June 2004
* Shares will trade ex-dividend on 21 June 2004
* Record date on 25 June 2004
* The dividend will be paid on 28 June 2004
No shares may be dematerialised or re-materialised between 21 June 2004 and 25
June 2004, both days inclusive.
For and on behalf of the Board
Ashley Regenass
CEO - Synergy
18 May 2004
Date: 19/05/2004 08:00:05 AM Produced by the JSE SENS Department
