| Mon 1 Nov 2004, 16:16 | | Audited Results for the year ended 31Aug 04 |
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Set Point Technology Holdings Limited - Audited Results for the year ended 31
August 2004
Set Point Technology Holdings Limited(Incorporated in the Republic of South
Africa)(Registration number: 1996/014334/06)Share code: STO
ISIN: ZAE000013629(`Set Point` or `the company` or `the group`)
Audited Resultsfor the year ended 31 August 2004
- HEADLINE EPS +44%- DIVIDEND +50%- GEARING REDUCED TO 32%
CONSOLIDATED INCOME STATEMENT
Audited year Audited year
ended 31 ended 31
August 2004 August 2003
R`000 R`000
Revenue 247 650 223 480
Cost of sales (138 279) (127 714)
Gross margin 109 371 95 766
Operating expenses (83 139) (76 280)
Operating profit 26 232 19 486
Goodwill amortisation (1 858) (1 124)
Foreign exchange gains 24 842
Capital items (3 797) (1 561)
Profit before finance charges 20 601 17 643
Net finance charges (5 426) (7 069)
Profit before taxation 15 175 10 574
Taxation (5 409) (4 690)
Profit after taxation 9 766 5 884
Minority interests (2 000) (1 084)
Profit attributable to ordinary 7 766 4 800
shareholders
Weighted average number of shares in 242 109 203 039
issue (`000)
Fully diluted weighted average number 253 649 203 703
of shares in issue (`000)
Earnings per share (cents) 3,2 2,3
Headline earnings per share (cents) 5,2 3,6
Fully diluted earnings per share 3,1 2,3
(cents)
Fully diluted headline earnings per 5,0 3,6
share (cents)
Headline earnings 12 569 7 485
Income attributable to shareholders 7 766 4 800
Adjusted for: 4 803 2 685
Goodwill amortisation 1 858 1 124
Capital items 3 797 1 561
Loss on disposal of operations 2 843 2 996
Loss/(profit) on sale of property, 100 (1 435)
plant and equipment
Impairment of fixed assets 854 -
Taxation effect on capital items (852) -
ABRIDGED CASH FLOW STATEMENT
Audited year Audited year
ended 31 ended 31
August 2004 August 2003
R`000 R`000
Cash flows from operating activities 20 359 15 314
Cash flows from investing activities (6 039) (17 646)
Cash flows from financing activities (11 769) 15 041
Decrease/(increase) in short-term 2 551 12 709
borrowings net of cash balances
Overdraft in subsidiary acquired - (6 773)
Balance at beginning of year 271 (5 665)
Balance at end of year 2 822 271
CONSOLIDATED BALANCE SHEETS
Audited year Audited year
ended 31 ended 31
August 2004 August 2003
R`000 R`000
Assets
Non-current assets 58 708 56 697
Property, plant and equipment 19 709 17 604
Goodwill 28 914 28 774
Deferred taxation 10 085 10 319
Current assets 83 804 91 189
Inventories 31 685 39 695
Trade and other receivables 49 297 51 223
Cash and cash equivalents 2 822 271
Total assets 142 512 147 886
Equity and liabilities
Equity and reserves 64 388 59 295
Minority interests 5 349 4 978
Non-current interest bearing 9 849 21 534
liabilities
Current liabilities 62 926 62 079
Interest bearing liabilities 15 435 15 289
Trade and other payables 43 651 43 647
Taxation payable 3 840 3 143
Total equity and liabilities 142 512 147 886
Shares in issue (net of treasury 242 109 233 039
shares) (000`s)
Net asset value per share (cents) 26,6 25,4
Tangible net asset value per share 14,7 13,1
(cents)
Debt-equity ratio 32,0 56,8
1. Borrowings
Bank overdrafts have been set-off
against cash balances on hand where
allowed in terms of bank facility
arrangements.
2. Contingent liabilities
Performance guarantees 1 082 3 719
Other guarantees 4 323 6 272
5 405 9 991
3. Capital commitments
There are no material capital
commitments at 31 August 2004.
ABRIDGED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
Audited year Audited year
ended 31 ended 31
August 2004 August 200s
R`000 R`000
Opening balance as previously reported 58 845 38 229
Adjusted for change in accounting - (2 184)
policy
58 845 36 045
Shares issued 148 18 000
Shares issued by treasury 352 -
Shares purchased by treasury (279) -
Profit attributable to shareholders 7 766 4 800
Dividend paid (2 444) -
Closing balance 64 388 58 845
SEGMENTAL INFORMATION
Year ended 31 August 2004
Segment Segment Capital Depreciation
assets liabilities expenditure R`000
R`000 R`000 R`000
Analytical 34 017 15 743 3 659 2 446
Services
Fluid Handling 54 310 28 427 1 241 1 334
Instrumentation 47 459 13 260 2 381 648
Central Services 6 726 15 345 1 124 566
142 512 72 775 8 405 4 994
Goodwill Revenue Revenue Operating
amorti- R`000 % income
sation (loss)
R`000 before
foreign
exchange
R`000
Analytical - 58 203 23,5 14 791
Services
Fluid Handling 613 90 489 36,5 17 604
Instrumentation - 97 562 39,4 3 118
Central Services 1 245 1 396 0,6 (9 281)
1 858 247 650 100,00 26 232
Operating income Number of Number of
(loss) before employees employees %
foreign exchange #
%
Analytical 56,4 125 46,0
Services
Fluid Handling 67,1 72 26,4
Instrumentation 11,9 58 21,3
Central Services (35,4) 17 6,3
100,0 272 100,0
PROFILESet Point operates through three core activities:- Analytical Services is
an operator of specialised industrial, analytical and allied technological
equipment servicing major industries.- Fluid Handling supplies medium technology
fluid handling equipment to the petrochemical and mining industries.-
Instrumentation imports and supplies specialised technological equipment used in
a wide range of industries.GROUP OVERVIEWThe results for the year under review
are not comparable with the previous year as these included the Fluid Handling
division for 6 months against 12 months for the latest period.
Both Analytical Services and Fluid Handling produced pleasing results with
Wearcheck performing particularly well.
The strength of the local currency was partly responsible for the
Instrumentation operation continuing to disappoint but has budgeted for improved
results in the new year.FINANCIAL RESULTSHeadline earnings per share increased
by 44% to 5,2 cents per share. This improvement occurred as a result of an 11%
increase in revenue to R248m. Operating profit was up 35% and lower finance
charges assisted in increasing headline earnings by 68% to R12,6m. The weighted
average number of shares in issue increased by 37 million to 242 million.
Cash flow remained positive throughout the year with borrowings being reduced by
R14,1 million to R22,5 million. Gearing at year end was 32%. Only 3 years ago,
gearing stood at 290% and the improvement has taken place notwithstanding
additional borrowings of R27m in 2003 for the acquisition of the Fluid Handling
division.
Based on these improved results, the Board has declared a dividend of 1,5 cents
per share, an increase of 50% on the previous year.PROSPECTSThe group is in a
strong position to take advantage of the growth in the economy following the
decline in both interest rates and inflation.
Working capital will continue to be tightly managed but the strong cash flow and
reduced gearing will allow for acquisitive growth should the opportunity arise.
DIRECTORATENorman Kennelly resigned from the Board on 7 July 2004 but continues
as company secretary. Mark Saunders resigned as an alternate on the 15th April
2004.
Graham Nel resigned as an executive director on 15 April 2004 and remains as a
non-executive director.DIVIDEND ANNOUNCEMENTNotice is hereby given that dividend
number 3 of 1,5 (one and a half) cents per share has been declared in respect of
the year ended 31 August 2004.
This dividend will be paid out of profits as determined by the directors, to
shareholders recorded as such in the register at the close of business on the
record date, Friday 14 January 2005. The last date to trade, to participate in
the dividend, is Friday, 7 January 2005. Shares will commence trading ex-
dividend from Monday, 10 January 2005.
The important dates pertaining to this dividend for shareholders trading on the
JSE Securities Exchange South Africa are as follows:Last day to trade `CUM`
dividend Friday, 7 January 2005Shares trade `EX` dividend from
Monday, 10 January 2005Record date Friday, 14
January 2005Payment date Monday, 17 January
2005
Share certificates may not be dematerialised or rematerialised between Monday,
10 January 2005 and Friday, 14 January 2005, both days inclusive.BASIS OF
PREPARATIONThe reviewed results have been prepared in accordance with South
African Statements of Generally Accepted Accounting Practice. There have been no
changes effected to any of the accounting policies during the year.UNQUALIFIED
AUDIT REPORT BY INDEPENDENT AUDITORSThe group`s auditors KPMG Inc., have audited
these year-end results. The unqualified audit report, dated November 2004 is
available for inspection at the registered office of the company.
The audited annual report will be posted to shareholders on or before 30
November 2004.For and on behalf of the BoardBH Kent (Chairman)
Directors: BH Kent (Chairman)*, MJ Smith (Chief Executive Officer), Dr DE
Baloyi*, EG Gregor, GJ Horsfield, JM Judin*, H Levin*, GE Nel*, CS Seabrooke*
(*Non-executive)Company Secretary: ND KennellyRegistered Office: 30 Electron
Avenue, Isando 1601, (PO Box 856, Isando 1600)Transfer Secretaries:
Computershare Investor Services 2004 (Pty) Limited, Ground Floor, 70 Marshall
Street, Johannesburg, 2001 (PO Box 61051, Marshalltown 2107)Sponsor: The
Standard Bank of South Africa Limited, Registration number 1962/000738/06
1 November 2004
