| Fri 28 May 2004, 18:16 | | Results For The Six Months |
|
Stella Vista Technologies Limited - Interim Results For The Six Months Ended
Release Date: 28/05/2004 17:10:00 Code(s): SLL
STELLA VISTA TECHNOLOGIES LIMITED - INTERIM RESULTS FOR THE SIX MONTHS ENDED
29 FEBRUARY 2004
Stella Vista Technologies Limited
(`Company`)
(Incorporated in the Republic of South Africa)
(Registration number 1996/000172/06)
JSE Share code: SLL
ISIN: ZAE000018198
INTERIM RESULTS FOR THE SIX MONTHS ENDED 29 FEBRUARY 2004
SUMMARISED GROUP INCOME STATEMENT
Unaudited Unaudited Audited
six months six months 12 months
ended ended ended
29 February 28 February 31 August
2004 2003 2003
R`000 R`000 R`000
Revenue 5 576 28 179 34 991
Operating (loss)/profit (after charging) (7 539) 2 023 (654)
- Depreciation 290 333 696
- Operating rentals 217 223 340
Net interest paid (657) (298) (2 105)
Net (loss)/profit before taxation (8 196) 1 725 (2 759)
Taxation 2 429 (435) 279
Net (loss)/profit after taxation (5 767) 1 290 (2 480)
(Loss)/Earnings per share (cents) (4.12) 0.92 (1.77)
Headline (loss)/earnings per share (cents) (4.19) 0.92 (1.83)
Net asset value per share (cents) 5.22 10.83 9.07
RECONCILIATION OF HEADLINE EARNINGS
R`000 R`000 R`000
29 Feb 04 28 Feb 03 31 Aug 03
Basic and headline (loss)/
profit per share (cents)
Net (loss)/profit
attributable to shareholders (R) (5767) 1290 (2480)
Profit on disposal of
fixed assets (R) 105 - 79
Headline (loss)/profit (R) (5872) 1290 (2559)
Weighted average number of
shares in issue 140 000 000 140 000 000 140 000 000
(Loss)/Earnings per
share (cents) (4.12) 0.92 (1.77)
Headline (Loss)/Earnings
per share (cents) (4.19) 0.92 (1.83)
SUMMARISED GROUP BALANCE SHEET
ASSETS
Non-current assets
Property, plant and equipment 1 669 2 336 2 056
Non-current assets - 824 166
Deferred tax asset 5 551 2 342 3 122
7 220 5 502 5 344
Current assets
Inventories 8 038 21 953 16 280
Receivables 2 410 1 579 985
Cash and cash equivalents 20 6 901 443
10 468 30 433 17 708
Total assets 17 688 35 935 23 052
EQUITY AND LIABILITIES
Capital and reserves 7 310 15 164 12 694
Non-current liabilities
Interest-bearing borrowings 463 8 161 2 103
Current liabilities
Payables 9 605 10 657 7 975
Provisions and other payables 237 1 953 207
Current tax liabilities 73 - 73
9 915 12 610 8 255
Total equities and liabilities 17 688 35 935 23 052
SUMMARISED GROUP CASH FLOW
Cash flow from operating activities (954) 3 932 4 967
Cash flow from investing activities 192 (1 083) (1 144)
Cash flow from financing activities 339 (11 861) (19 219)
Decrease in cash and cash equivalents (423) (9 012) (15 396)
GROUP STATEMENT OF CHANGES IN EQUITY
Capital and reserves at the beginning
of the period 12 694 13 983 13 983
Net (loss)/profit for the period (5 767) 1 290 (2 480)
Movement in foreign currency translation
reserve 383 (109) 1 191
Capital and reserves at the end of
the period 7 310 15 164 12 694
The Company
Stella Vista is a world leader in the design of state-of-the-art multimedia
communications systems, providing displays, control equipment and software for a
multitude of applications. The complete line of multi-purpose products includes
scoreboards, video display screens and combined text and graphic messaging
displays with real-time data capabilities. Stella Vista focuses on designing,
producing, integrating and supporting innovative products and services for
clients` specific needs. This provides the total solution for sport, business,
entertainment and the transportation markets, ensuring complete customer
satisfaction, while providing the viewer with a truly remarkable experience.
The Market and Prospects
The sporadic nature of our business has resulted in disappointing sales that
followed the extraordinary success of our Cricket World Cup project, hence the
need to finance our current cash flow with short-term borrowings. The situation
has been exacerbated by our inability to make significant inroads into
international markets, due to the lack of working capital required for
expansion. Our success, however, in getting an important overseas contract as
well as several local deals, proves our competitiveness. Considering the above,
looking into the future has become exceedingly difficult. While we have the
capital constraints mentioned, the market for LED displays is expanding
worldwide, and the price of basic components is declining. We are working to
take advantage of these great opportunities by using our technological advantage
and competitive pricing levels.
Results
* Income Statement
Disappointing sales together with the R7.7 million impairment charge of
inventory contributed towards the operating loss of R7.5 million for the
six months.The price decrease and changes in technology required the
impairment charge of R7.7 million to reflect the net realisable value of
inventory on hand. Sales to the value of R0,91 million to a related party,
Powerview (Pty) Ltd, a company owned by the directors, is included in
revenue. These transactions were carried out at market related terms and
conditions.
* Balance Sheet
Decrease in inventory primarily due to the impairment of stock to reflect
the net realisable value on hand.
Operating activities and repayment of interest bearing borrowings jointly
financed by short-term loans from a third party and Powerview (Pty) Ltd.
Products and Services.
As communicated previously, Stella Vista has made a significant expansion
in its products and service offering. A new full colour LED display model,
Titan T14 impressed the officials and spectators at more than 30 matches of
the World Cup. The new LB-series model, LB-56 was used for all the new
scoreboards. These two displays models are both part of Stella Vista`s
revolutionary faceUp display system that guarantees interchangeability
between LED video, LED text and graphics displays and static advertising
modules.
In the field of services and integration, Stella Vista`s offering is
constantly growing. These services include maintenance, consulting in
visual communications and support. The share of services in total revenues
is growing.
Accounting Standards
The same accounting standards and policies as used by the group in the previous
financial year have been applied. These practices are in compliance with South
African Statements of Generally Accepted Accounting Practice.
On behalf of the Board
R H Burke M Tabakovic
Chairman Chief Executive Officer
28 May 2004
Directors:
R H Burke* (Chairman), M Tabakovic (CEO), D Tabakovic,
A A Coulson*, C Livingstone*
(*non-executive)
