| Mon 20 Sep 2004, 14:21 | | Audited Financial Report For The Year Ended 31 Jul |
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EOH - Audited Financial Report For The Year Ended 31 July 2004
Enterprise Outsourcing Holdings Limited
(Incorporated in the Republic of South Africa)
(Company registration no: 1998/014669/06)
Share code: EOH ISIN: ZAE000022026
(`EOH` or `the Group`)
REVENUE UP 69% EPS UP 32% HEPS UP 30% CASH UP 53% DIV UP 43%
GROUP INCOME STATEMENTS
Audited 12 Audited
months to 12 months
31 July to 31 Change(%)
2004 July 2003
(R`000) (R`000)
Revenue 299 535 175 969 69
Profit before interest 22 326 16 398 36
Net interest received 2 078 1 652
Profit from operations before 24 404 18 050 35
goodwill
Goodwill amortised (1 125) (1 123)
Profit from operations 23 279 16 927
Taxation (3 845) (2 320)
Outside shareholders` (300) (212)
interest
Net profit for period 19 134 14 395 33
Number of shares in issue 50 667 50 667
(`000)
Weighted average number of
shares in issue (`000) 47 111 46 934
Earnings per ordinary share 40,61 30,67 32
(cents)
Headline earnings per
ordinary share (cents) 42,84 33,06 30
Diluted earnings per share 36,79 29,43 25
(cents)
Dividends per share (cents) 10,00 7,00 43
Reconciliation between earnings and headline earnings:
Net profit for period 19 134 14 395
Goodwill amortised 1 125 1 123
Capital profit (79) -
Headline earnings 20 180 15 518
Headline earnings per 42,84 33,06
ordinary share (cents)
GROUP BALANCE SHEETS
Audited Audited
31 July 31 July
2004 2003
(R`000) (R`000)
ASSETS
Non-current assets
Tangible assets 8 017 3 850
Intangible assets 25 242 27 333
Loans receivable 132 132
Current assets
Trade receivables 70 592 26 675
Other receivables 1 543 1 849
Inventory 55 78
Cash and cash equivalents 61 695 40 396
Total assets 167 276 100 313
EQUITY AND LIABILITIES
Ordinary shareholders` interest 67 548 52 082
Non-current liabilities
Vendors for acquisition 22 375 6 040
Interest bearing borrowings 2 825 522
Deferred taxation (1 022) 360
Current liabilities
Trade and other liabilities 42 767 21 059
Deferred revenue 27 961 18 594
Taxation 4 822 1 656
Total equity and liabilities 167 276 100 313
Net asset value per share (cents) 133,32 102,79
GROUP CASH FLOW STATEMENTS
Audited Audited
12 months 12 months
to to
31 July 31 July
2004 2003
(R`000) (R`000)
Operating income before interest and 22 326 16 398
taxation
Non-cash items 6 770 4 332
Cash generated from trading operations 29 096 20 730
Decrease/(increase) in working capital 30 413 (4 203)
Cash generated from operations 59 509 16 527
Taxation paid (2 062) (853)
Dividends paid (3 531) (3 040)
Net interest income 2 078 1 652
Cash inflow from operating activities 55 994 14 286
Cash outflow to investing activities (53 424) (2 743)
Cash inflow/(outflow) from financing 18 729 (735)
activities
Net increase in cash and cash equivalents 21 299 10 808
Cash and cash equivalents at beginning of 40 396 29 588
period
Cash and cash equivalents at end of period 61 695 40 396
STATEMENT OF CHANGES IN ORDINARY SHAREHOLDERS` INTEREST
Audited Audited
31 July 31 July
2004 2003
(R`000) (R`000)
Share capital and premium 8 777 8 899
Balance at beginning of period 8 899 11 174
Reissue/(Repurchase) of shares held by 245 (1 618)
subsidiary
Effects of consolidating the EOH Share (367) (657)
Trust
Distributable reserves 58 771 43 183
Balance at beginning of period 43 183 31 518
Attributable income 19 134 14 395
Dividends (3 547) (3 040)
Reissue of shares held by subsidiary 153 92
Effects of consolidating the EOH Share 60 6
Trust
Outside shareholders` interest (212) 212
Ordinary shareholders` interest 67 548 52 082
Comments
Group profile
EOH is a business and technology solutions provider creating lifelong
partnerships by developing business and IT strategies, supplying and
implementing solutions and managing enterprise-wide business systems and
processes for medium to large clients.
EOH operates in the following three clusters of business units as a fully
integrated business:
Consulting - Concentrated under the EOH KPMG Consulting brand are business units
offering services ranging from strategic and business process consulting,
project services, change management, supply chain optimisation and education.
Technology - Through a number of subsidiary companies, EOH is able to sell,
implement and support a range of world-class business applications including
ERP, CRM, Business Intelligence, Advanced Planning and Scheduling, e-Commerce
and Manufacturing Execution Systems (MES).
Outsourcing - EOH offers comprehensive maintenance and support of clients` IT
infrastructure and applications through the rendering of full IT Outsourcing,
Application Hosting and Managed Services. In addition EOH offers full Business
Process Outsourcing (BPO) services.
EOH has a presence in all major centres in South Africa and Botswana and also
operates elsewhere in Africa.
Basis of preparation
The financial statements of the Group have been prepared in accordance with the
South African Statements of Generally Accepted Accounting Practice. The
accounting policies used are consistent with those of the prior year, except for
the consolidation of the EOH Share Trust as required by the JSE Securities
Exchange South Africa to ensure compliance with AC 132 - Consolidated financial
statements and accounting for investments in subsidiaries - and, accordingly,
the previous year`s results have been restated.
The Group`s auditors, IAPA Johannesburg Chartered Accountants (SA), have audited
the financial information for the year to 31 July 2004. Their unqualified audit
report is available for inspection at the registered office of EOH.
Financial results
The board is satisfied with the performance for the period under review.
Turnover, profit and headline earnings per share showed substantial improvement.
The balance sheet remains strong with 53% increase in cash resources and a
substantial improvement in the asset base of the business.
Future plans
EOH is a large integrated organisation offering an extensive range of products
and services to many markets and industries. It is financially strong and has a
sound track record. Management`s intention is to rapidly capitalise on our
position and forge ahead towards its vision to be the Number One business and
technology solution provider in Africa.
The increased spending in consulting, technology and outsourcing, together with
rapid deployment of new processes and systems in the public and private sectors
and EOH`s large customer base bode well for its growth.
Subsequent to year end EOH acquired Global Technology Business Intelligence
(Proprietary) Limited (`GBI`), subject to regulatory approval. GBI is a leading
software and services provider in the field of Corporate Performance Management
(CPM). GBI`s size, customer base and range of solutions will make a significant
contribution to EOH`s growth.
BEE
On 16 August 2004 shareholders were advised that EOH is in the process of
finalising a transaction whereby it will achieve a minimum 25% Black Economic
Empowerment (`BEE`) equity shareholding. EOH believes that the most effective
way to achieve broad based empowerment is to involve its BEE employees in the
empowerment transaction. This will be accomplished through the creation of a BEE
Employee Trust and an investment into EOH by an Empowerment Fund. New EOH shares
will be issued to the BEE Employee Trust, this Trust will have the current and
future previously disadvantaged EOH employees as beneficiaries. It is proposed
that the Empowerment Fund will be issued new EOH shares for cash which will
result in a combined shareholding of the BEE Employee Trust and the Empowerment
Fund in excess of 25% of EOH.
Further details will be communicated to shareholders in due course and
accordingly, EOH shareholders are advised to continue to exercise caution when
dealing in EOH shares until a further announcement is made.
Dividends
Notice is hereby given that a cash dividend of 10 cents per share (`the
dividend`) has been declared and is payable to shareholders recorded in the
books of EOH at the close of business on Friday, 29 October 2004. Shareholders
are advised that the last day to trade `cum` the dividend will be Friday, 22
October 2004. The shares will trade `ex` dividend as from Monday, 25 October
2004. Payment will be made on Monday, 1 November 2004. Share certificates may
not be dematerialised or rematerialised during the period Monday, 25 October
2004 to Friday, 29 October 2004, both days inclusive.
20 September 2004
REGISTERED OFFICE
Ground Floor, Block F, Gillooly`s View, 1 Osborne Lane, Bedfordview, 2008
Tel: (011) 607 8100, fax: (011) 616 9929, website: www.eoh.co.za, e-mail:
info@eoh.co.za
DIRECTORS
Dr Mathews Phosa (Non-executive Chairman), Asher Bohbot (CEO), Rob Sporen
(Dutch), Antonio Cocciante, Jane Thomson, Ken Cullinan, John King, Dion Ramoo
COMPANY SECRETARY
SP Matheson
For further information, please contact Rob Sporen on the above numbers or on
cell: 082 444 7533
Date: 20/09/2004 02:08:54 PM Produced by the JSE SENS Department
