| Wed 25 Aug 2004, 17:17 | | Interim Results for the six months ended 30 June 2 |
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Spectrum - Interim Results for the six months ended 30 June 2004
SPECTRUM SHIPPING LIMITED
Registration no: 1998/018118/06
Share Code: SUM
ISIN NO: ZAE000037446
Interim Results for the six months ended 30 June 2004
INCOME STATEMENT
Unaudited Unaudited Audited
6 months 6 months Year ended
ended ended 31 December
30 June 30 June
2004 2003 2003
R`000 R`000 R`000
Turnover 12 618 13 619 28 731
Gross billings 208 282 266 992 574 568
Cost of billings (195 664) (253 373) (545 837)
Operating income 406 2 375 6 187
Amortisation and impairment
of intangible assets (187) (338) (1 114)
Depreciation (282) (190) (448)
Net interest paid (926) (1 188) (2 489)
Profit before taxation (989) 659 2 136
Taxation 280 (200) (660)
Net profit after taxation (709) 459 1 476
Shares in issue (000`s) 850 000 850 000 850 000
Earnings per share (cents) (0.1) 0.1 0.2
Headline earnings per share (cents) (0.1) 0.1 0.2
Reconciliation between earnings
and headline earnings
Profit after taxation (709) 459 1 476
Loss on sale of fixed assets - 6 13
Amortisation of goodwill
and impairment losses 54 9 481
Taxation effects (16) (2) -
Headline profit after taxation (671) 472 1 970
CASH FLOW STATEMENT
Unaudited Unaudited Audited
6 months 6 months Year ended
ended ended
30 June 30 June 31 December
2004 2003 2003
R`000 R`000 R`000
Cash generated by operations
before working capital changes 407 2 115 6 350
Changes in working capital 475 7 864 (10 307)
Cash generated from
operating activities 882 9 979 (3 957)
Net interest paid (926) (1 188) (2 489)
Cash flows from operating activities (44) 8 791 (6 446)
Cash flows from investing activities (423) (684) (1 200)
Cash flows from financing activities (28) 44 (902)
Net increase/(decrease) in cash
and cash equivalents (495) 8 151 (8 548)
Cash and cash equivalents
at the beginning of the period (35 843) (27 295) (27 295)
Cash and cash equivalents
at the end of the period (36 338) (19 144) (35 843)
BALANCE SHEET
Unaudited Unaudited Audited
6 months 6 months Year ended
ended ended 31 December
30 June 30 June
2004 2003 2003
R`000 R`000 R`000
ASSETS
Non-current assets 6 014 6 753 5 781
Property, plant and equipment 1 656 1 252 1 515
Intangible assets 344 1 307 532
Deferred taxation 4 014 4 194 3 734
Current assets 86 128 111 096 99 510
Trade and other receivables 86 125 96 847 91 779
Cash and cash equivalents 3 14 249 7 731
Total assets 92 142 117 849 105 291
EQUITY AND LIABILITIES
Capital and reserves 28 421 28 114 29 130
Share capital and premium 107 795 107 795 107 795
Accumulated loss (79 374) (79 681) (78 665)
Non-current liabilities
Interest bearing borrowing 37 65 25
Current liabilities 63 684 89 670 76 136
Loan payable - 887 -
Trade and other payables 24 515 53 233 29 649
Current portion of borrowing - 25 27
Bank overdraft 36 341 33 393 43 574
Provisions 2 828 2 132 2 886
Total equity and liabilities 92 142 117 849 105 291
STATEMENT OF CHANGES IN EQUITY
Share Share Accumu-
lated
capital premium loss Total
R`000 R`000 R`000 R`000
Balance at 1 January 2004 850 106 945 (78 665) 29 130
Net profit for the period - - (709) (709)
Balance at 30 June 2004 850 106 945 (79 374) 28 421
COMMENTARY
Operational Review
The period under review was an interesting one in the sense that whilst an
exceptionally difficult trading environment prevailed, exciting milestones were
achieved paving the way for steady growth in the future.
What was challenging was the fact that whilst management was still in the
process of transforming the business of the company into that of a comprehensive
provider of logistics-supply chain solutions, the currency continued to
strengthen, export activity levels diminished and an unexpected drought resulted
in both a poor and late perishables season, all of which had an extremely
adverse effect on the earnings of the company.
In so far as milestones are concerned, the company has procured 185 good quality
new accounts over the last six months, reduced the cost structure significantly
from August 2004, and increased the turnover to billings margin whilst still
processing a dramatic increase in the number of shipments versus that for the
same period last year. Furthermore, in respect of the risk profile of the
company, the level of credit insurance is more than three times the level at
June 2003.
Outlook for the next six months
The next six month period should be very different to that experienced in the
first six months of this year. The main reason for this is that, in addition to
further entrenchment of the milestones mentioned above, from the month of May
2004 company earnings started to benefit as the various components of the supply
chain began to deliver encouraging revenue streams.
Financial review
Gross billings of R208 million are R59 million lower than prior year of R267
million. However, despite the decrease in the billings, revenue was
comparatively higher due to an increase in the net margins achieved. Expenditure
for the six month period under review was higher than that of the prior year due
to higher credit insurance as a result of improved levels of credit cover,
additional liability insurance cover, professional fees in respect of the
upgrade of the IT systems, higher personnel expenses and additional travel
expenses with regard to the integrated regional management of the company`s
offices.
Net interest paid for the period reflects the decrease in interest rates versus
last year combined with the improved age of the debtor`s book.
The June 2004 overdraft of R36,3 million is slightly up on the December 2003
year end overdraft of R35,8 million, but is however higher than the comparative
June 2003 overdraft. This is the result of a reduction in creditors, due to a
change in the mix of clients being funded, offset by a decrease in debtors. In
2003 the export volumes and the export freight funded portion thereof was much
higher than in the current year and was reflected in a higher June 2003 trade
payables balance.
Accounting policies
The accounts have been prepared in conformity with South African Statements of
Generally Accepted Accounting Practice and on a basis consistent with prior
years.
Directors
In line with the intention stated in the 2003 Annual Report to finalise black
empowerment initiatives early in 2004, the board is pleased to announce the
appointment in April 2004 of Mr Sandile Zungu as director and chairman of the
company and of Messrs Chief Lediga and Moses Tembe as directors of the company.
Dividends
In line with the company`s policy, no interim dividend has been declared.
For and on behalf of the board.
SMD Zungu GH Gerber
Chairman Chief executive officer
25 August 2004
Registered office and postal address
5th Floor, 54 Winder Street, 4001
PO Box 6148, Durban, 4000
Transfer secretaries
Computershare Investor Services 2004 (Pty) Ltd
70 Marshall Street, Johannesburg, 2001
Auditors
Marwick and Company Inc.
Executive directors
GH Gerber (CEO), DC Kelly (CFO), R Singh
Non-executive directors
SDM Zungu (Chairman), KJ Gribnitz (Deputy chairman), FE Lediga, JP Nel, M Tembe,
T Tomaszewski
Company Secretary
JA Lupton, ACIS
www.spectrum-shipping.co.za
Date: 25/08/2004 05:10:06 PM Produced by the JSE SENS Department
