| Wed 29 Sep 2004, 18:55 | | Integrear Limited - Financial results |
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Integrear Limited - Financial results
INTEGREAR LIMITED
(Registration number: 1989/001319/06)
Share Code: ITG
ISIN: ZAE000027231
CONSOLIDATED INCOME STATEMENT
Audited Audited
Year ended Year ended
30 June 30 June
2004 2003
Rand Rand
Revenue 9 505 378 8 834 749
Cost of sales (5 248 698) (4 284 157)
Gross profit 4 256 680 4 550 592
Operating expenses (3 864 549) (5 721 107)
Goodwill amortisation (336 195) (336 196)
Profit / (loss) from operations 55 936 (1 506 711)
Finance costs - (17 748) (28 996)
Income from investments - 72 457 145 356
Profit / (loss) before tax - 110 645 (1 390 351)
Income tax (expense) / benefit - (204 543) 172 121
Net loss for the year (93 898) (1 218 230)
Net asset value per share (cents)- 15,22 15,97
Basic loss per share (cents) - (0,75) (9,70)
Headline profit / (loss)
per share (cents) - 1,93 (7,02)
* Basic earnings per share is calculated based on net loss of R93 898
(2003: R1 218 230) divided by the number of shares in issue being 12 564
190 (2003: 12 564 190) x 100.
** Headline earnings per share is calculated based on net loss of R93 898
(2003: R1 218 230) adjusted by the amortisation of goodwill of R336 195
(2003: R336 196) and scrapping of assets of R774 divided by the number of
shares in issue being 12 564 190 (2003: 12 564 190) x 100.
CONSOLIDATED CASH FLOW STATEMENT
Audited Audited
Year ended Year ended
30 June 30 June
2004 2003
Rand Rand
OPERATING ACTIVITIES
Cash receipts from customers - 8 122 623 8 886 111
Cash paid to suppliers and employees (8 358 448) (8 769 762)
Cash (used in) / generated
from operations - (235 825) 116 349
Interest paid (17 748) (28 996)
Interest received - 72 457 145 356
Taxation received / (paid) - 47 964 (83 984)
Net cash (used in) / from
operating activities (133 152) 148 725
INVESTING ACTIVITIES
Purchases of equipment
- maintaining operations - (121 741) (74 239)
Net cash used in investing
activities - (121 741) (74 239)
FINANCING ACTIVITIES
Increase / (decrease) in borrowings - 3 053 (17 178)
Net cash from / (used in)
financing activities - 3 053 (17 178)
Net (decrease) / increase in
cash and cash equivalents (251 840) 57 308
Cash and cash equivalents
at beginning of the year 1 963 236 1 905 928
Cash and cash equivalents
at end of the year - 1 711 396 1 963 236
CONSOLIDATED BALANCE SHEET
Audited Audited
30 June 30 June
2004 2003
Rand Rand
ASSETS
Non-current assets 940 177 1 560 916
Equipment 122 462 202 463
Goodwill - 336 195
Deferred tax asset 817 715 1 022 258
Current assets 4 782 396 3 699 445
Loan receivable 6 853 6 853
Trade and other receivables 2 951 641 1 568 886
Tax asset 112 506 160 470
Bank balances and cash 1 711 396 1 963 236
TOTAL ASSETS 5 722 573 5 260 361
EQUITY AND LIABILITIES
Capital and reserves 1 912 789 2 006 687
Share capital 125 642 125 642
Share premium 686 031 686 031
Non-distributable reserve 827 687 827 687
Capital redemption fund 48 558 48 558
Accumulated profits 224 871 318 769
Non-current liabilities
Long-term borrowings 48 882 52 044
Current liabilities 3 760 902 3 201 630
Trade and other payables 2 476 245 2 063 745
Provisions 122 444 141 738
Deferred revenue 1 094 392 934 541
Short-term borrowings 67 821 61 606
TOTAL EQUITY AND LIABILITIES 5 722 573 5 260 361
CONSOLIDATED STATEMENT
OF CHANGES IN EQUITY
Non- Capital
Share Share distri- redemption Accumulated
Capital Premium butable Fund profits Total
reserve
Rand Rand Rand Rand Rand Rand
Balance at
30 June 2002 125 642 686 031 827 687 48 558 1 536 999 3 224 917
Net loss for
the year - - - - (1 218 230)(1 218 230)
Balance at
30 June 2003 125 642 686 031 827 687 48 558 318 769 2 006 687
Net loss for
the year - - - - (93 898) (93 898)
Balance at
30 June 2004 125 642 686 031 827 687 48 558 224 871 1 912 789
COMMENTS
The market is reacting slower than anticipated for an upswing of the IT
sector, and the decision-making processes of most clients are protracted and
delayed. The company nevertheless remains active to acquire additional
business, and all products and applications are continuously being refined to
meet and exceed the expectations of our clients.
The group has had successes in the sales and practical application of their
software and services to the Credit Management, Municipal Debt Collection and
the Tertiary Education industries.
ACCOUNTING POLICIES
These provisional financial statements for the year ended 30 June 2004 are
prepared in accordance with the South African Statements of Generally Accepted
Accounting Practice (SA GAAP) applicable to interim financial reporting. The
accounting policies used are consistent with those used in the annual
financial statements for the year 30 June 2003.
AUDIT REPORT
The consolidated financial statements for the year have been audited by
Deloitte & Touche and their accompanying unqualified audit report on this set
of summarised financial information is available for inspection at the
company`s registered office.
CORPORATE GOVERNANCE
The Group subscribes to and complies with the Code on Corporate Governance
Practices and Conduct as contained in the second King Report on Corporate
Governance.
SEGMENT ANALYSIS
No segmental report was prepared since the group only operated in one
geographical and business segment.
JSE SECURITIES EXCHANGE SOUTH AFRICA REQUIREMENTS
This announcement has been prepared in accordance with the listings
requirements of the JSE Securities Exchange South Africa (JSE).
FINANCIAL
The headline profit per share is positive at 1.93 cents as at 30 June 2004
after a reported loss of 7.02 cents per share as at 30 June 2003.
Capital expenditure for the year was R121 741 (2003: R74 239).
Sales remain modest, and the increase of 7.6% over the achievement for the
last financial year is below the level anticipated at the outset of this
period under report. Stringent controls exercised in the company allowed us
to achieve a meaningful reduction of the operating expenses. This resulted in
a reduction of the loss when compared with the last year.
Contracts being concluded will not only increase the exposure of our products
to the target markets and clients, but will also ensure a steady income stream
over the lifetime of application of the respective products.
Some large corporations have demonstrated their satisfaction with our range of
products and their applications, and we continue to be optimistic that these
successes will eventually lead to the procurement of even more orders.
PROSPECTS
Our Solidus debt collection system has been introduced at a number of
companies to assist them in their Credit Management processes. The total
Credit Management function, starting with the credit application through to
delinquent debt collections are, however, achievable using a single software
application. Because the basics of workflow processing and document imaging
are incorporated in this suite of products, we expect further important
contracts to be won as the financial benefits to our clients are demonstrated
and realised.
The Zeus debt collection system, specially developed for application in the
municipal debt collection environment, has been implemented at municipalities
in various provinces in the country, and more orders are expected as the
product is gaining positive acceptance and sound results.
The O! timetable optimization system is now well accepted by a number of
tertiary educational institutions to assist them with their practical
deployment of staff and available space. Further important additional products
to complement this system have been launched with encouraging initial
successes.
We remain aware of the different clients` needs, and our research and
development remains in constant contact with clients and the market to provide
practical business solutions at competitive prices.
The fundamental approach to provide quality products, and an accessible
superior service to our clients, will remain the strategic focus of the
company to continue to distinguish itself in a competitive environment.
POST BALANCE SHEET EVENTS
Further to the initial announcement by the JSE to consider closing the
Development Capital Market Board where we are listed, they have now decided
not to do so, and the directors therefore resolved to withdraw the company`s
application for a listing on the Alternative Exchange (ALT-X) of the JSE.
DIVIDEND
No dividend is declared for the period under review.
By order of the Board
L. du Plessis
Chairperson
29 September 2004
Transfer secretaries Sponsors Registered office
Computershare Investor Services Exchange Sponsors 265 West Avenue
2004 (Pty) Limited (Pty) Ltd
70 Marshall Street P.O. Box 411216 Centurion, 0157
Johannesburg, 2001 Craighall, 2024
Directors: L du Plessis* (Chairperson), TJ Hill (Managing), BP Jones*, GJ
Oosthuizen*, M Lindeque (Financial)
*Non-executive
Date: 29/09/2004 05:00:37 PM Produced by the JSE SENS Department
