| Mon 29 Nov 2004, 16:25 | | Audited results for the year ended 31 August 2004 |
|
Vesta Technology Holdings Limited - Audited Results For The Year Ended 31 August
2004
Vesta Technology Holdings Limited
(Registration number 1998/015580/06)Share code: VST
ISIN number: ZAE000016267
Audited results for the year ended 31 August 2004
GROUP INCOME STATEMENT
Audited Audited
Year ending Year ending
31/8/04 31/8/03
R`000 R`000
Revenue 16 172 18 494
Cost of sales (9 861) (11 276)
Gross profit 6 311 7 218
Other operating income 267 816
Depreciation and amortisation expense (618) (991)
Other operating expenses (5 013) (5 762)
Results from operating activities 947 1 281
Impairment of intangible assets (552) (607)
Net financing expense (13) (36)
Profit before taxation 382 638
Taxation (413) 532
(Loss)/profit for the year (31) 1 170
Reconciliation of headline earnings
(Loss)/profit (31) 1 170
Impairment of intangible assets 552 607
Headline earnings 521 1 777
Earnings per share (cents) 0,0 1,4
Diluted earnings per share (cents) 0,0 1,3
Headline earnings per share (cents) 0,6 2,1
Diluted headline earnings per share 0,6 1,9
(cents)
(There are 84 600 000 shares in issue. During 2005, 7 332 282 shares are to be
issued to the share trust, increasing the shares in issue to
91 932 282 shares. The granting of the share options was authorised at the
annual general meeting held on 30 April 2003.)
GROUP BALANCE SHEET
Audited Audited
31/8/04 31/8/03
R`000 R`000
Assets
Non-current assets 288 1 808
Tangible assets 123 291
Intangible assets 985
Deferred taxation 165 532
Current assets 2 966 2 689
Inventories 3 6
Trade and other receivables 2 458 2 377
Taxation 203 183
Financial assets 207 52
Cash and cash equivalents 95 71
Total assets 3 254 4 497
Equity and liabilities
Capital and reserves 1 148 1 320
Equity capital 19 043 19 043
Non distributable reserve 141
Accumulated loss (17 895) (17 864)
Non-current liability 13
Interest bearing borrowings
Current liabilities 2 106 3 164
Trade and other payables 1 235 1 985
Provisions 382 291
Deferred revenue 255 566
Short term borrowings 12 43
Bank overdraft 222 279
Total equity and liabilities 3 254 4 497
GROUP STATEMENT OF CHANGES IN EQUITY
Accumu- Non distri-
Share Share lated butable
capital Premium losses reserve Total
R`000 R`000 R`000 R`000 R`000
Balance at 1 85 18 958 (19 034) 959 968
September 2002
Foreign exchange (818) (818)
translation reserve
Net profit for the 1 170 1 170
year
Balance at 1 85 18 958 (17 864) 141 1 320
September 2003
Foreign exchange
translation reserve (141) (141)
Net loss for the (31) (31)
year
Balance at 31 August 85 18 958 (17 895) 1 148
2004
GROUP CASH FLOW STATEMENT
Audited Audited
Year ending Year ending
31/8/04 31/8/03
R`000 R`000
Cash flows from operating activities 297 150
Cash flows from investing activities (172) (89)
Cash flows from financing activities (44) (102)
Net movement in cash and cash 81 (41)
equivalents
Cash and cash equivalents at beginning (208) (167)
of year
Cash and cash equivalents at end of year (127) (208)
CommentaryThe BusinessVesta`s core business competency is the delivery of total
Information Technology services. Vesta delivers these skills to the marketplace
in three main areas, Software development, Service and Support and Vesta
developed products, which are positioned in the areas of e-learning, local
government financial management, performance management and collaboration.
Accounting policiesThe accounting policies applied in the preparation of the
2004 financial statements are consistent with the prior year, except for the
change in accounting policy in respect of the determination of cost of sales for
services rendered. The change was effected to provide a more appropriate
presentation of events and transactions.This change in accounting policy results
in an increase in cost of sales of R5 285 777 and a corresponding decrease in
other operating expenses for the 2003 results. There is no impact on net
income.These policies conform with South African Statements of Generally
Accepted Accounting Practice.Review of resultsThe financial statements have been
presented in accordance with South African Statements of Generally Accepted
Accounting Practice and have been audited by the Company`s auditors, Grant
Thornton. Their unqualified report is available for inspection at the registered
offices of the Company.Vesta`s results reflect the difficult trading conditions
experienced during the year. There was a substantial decrease in revenues from
hardware and software sales, which led to a corresponding decrease in gross
profit. Tight control over expenses resulted in a decrease of operating expenses
of 13%. The revenues from services have remained stable during the year.Apart
from the decrease in revenue, the earnings of the Group are lower than August
2003 as a result of lower foreign exchange profits on a loan (R176 032 compared
to R818 882 in 2003), and a taxation charge in the current year where there was
a taxation credit in August 2003. The WebActive Learner Management System was
impaired by a further R551 798 (2003: R606 668) which represents 12,9% of the
original development cost. This impairment reduces the value in use to nil.
In view of the operating results the Board elects not to declare any dividends.
FutureVesta is in the process of establishing data processing capabilities which
should provide returns in the latter part of 2005. Vesta will continue to strive
for sustainable long-term growth with annuity revenue streams. Focus will still
be on expansion of existing operational areas, including the local council
market where the company is beginning to provide products and services.By order
of the board F J Morrison
JohannesburgChief Executive Officer 29 November
2004
Directors: Satish Roopa*, F Morrison, E Thomas, A Futcher, M Morrison**(Non-
executive)
Transfer Secretaries: Computershare Investor Services 2004 (Pty) Limited, 11th
Floor, 70 Marshall Street, Johannesburg 2001.PO Box 61051, Marshalltown 2107
Registered Office: Vesta House, Gazelle Close, Sage Corporate Park,Old Pretoria
Rd, Midrand, Johannesburg.
Tel: (011) 314-8181Fax: (011) 314-8182
www: vesta.co.za
Date: 29/11/2004 04:15:03 PM
Produced by the JSE SENS Department
