| Tue 15 Feb 2005, 8:03 | | Results for the period 01 July to 31 Dec 04 |
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Interconnective - Reviewed Results for the period 01 July to 31 December 2004
INTERCONNECTIVE SOLUTIONS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1997/010640/06)
Share Code: ILT ISIN: ZAE000017943
(`the group` or `the company`)
REVIEWED RESULTS FOR THE PERIOD 01 JULY 2004 TO 31 DECEMBER 2004
31 December 30 June
2004 2003 2004
(Reviewed) (Reviewed) (Audited
six months six months twelve m
R` 000 R` 000 R` 000
INCOME STATEMENT
Revenue 16,063 13,518 22,146
Other operating income 179 387 212
Direct operating costs (8,889) (6,611) (10,482)
Staff costs (3,705) (4,183) (7,915)
Depreciation and amortisation (652) (577) (1,258)
expenses
Other operating expenses (2,425) (2,273) (4,062)
Profit / (Loss) from operations 571 261 (1,359)
Finance costs (51) (37) (52)
Investment income 14 31 62
Profit / (Loss) from ordinary 534 255 (1,349)
activities
Attributable to outside - 20 -
shareholders
Retained profit / (loss) for the 534 275 (1,349)
year
Opening accumulated losses (9,525) (8,176) (8,176)
Closing accumulated losses (8,991) (7,901) (9,525)
Number of shares in issue at end of 112,100,000 111,090,000 112,100,
period
Weighted number of shares in issue 112,100,000 111,090,000 111,090,
at end of period
Basic earnings / (loss) per share - 0.48 0.25 (1.21)
cents
Headline earnings / (loss) per 0.62 0.39 (0.93)
share - cents
Reconciliation between earnings and R` 000 R` 000 R` 000
headline earnings
Per the income statement 534 275 (1,349)
Items included in other operating
expenses above :
Goodwill amortised 163 156 313
Headline earnings 697 431 (1,036)
STATEMENT OF CHANGES IN EQUITY
31 December 30 June
2004 2003 2004
(Reviewed) (Reviewed) (Audited
six months six months twelve m
R` 000 R` 000 R` 000
Share Capital 112 111 112
Balance at beginning of period 112 111 111
Issue of share capital - - 1
Share Premium 14,096 14,034 14,096
Balance at beginning of period 14,096 14,034 14,034
Issues during the year - - 62
Share issue costs - - -
Accumulated losses (8,991) (7,901) (9,525)
Balance at beginning of period (9,525) (8,176) (8,176)
Attributable profits (losses) 534 275 (1,349)
5,217 6,244 4,683
31 December 30 June
2004 2003 2004
(Reviewed) (Reviewed) (Audited)
six months six months twelve mo
R` 000 R` 000 R` 000
BALANCE SHEET
ASSETS
Non Current Assets 3,680 4,244 4,192
Fixed assets 2,040 1,617 1,790
Intangible assets 840 1,827 1,602
Loans receivable 800 800 800
Current Assets 9,478 8,941 6,022
Inventory 119 315 246
Trade and other receivables 7,226 5,633 4,446
Cash and cash equivalents 2,133 2,993 1,330
Total Assets 13,158 13,185 10,214
EQUITY AND LIABILITIES
Capital and reserves 5,217 6,244 4,683
Non current liabilities
Long term loans 332 313 428
Minority shareholders interest - 2 22
Current Liabilities 7,609 6,626 5,081
Trade and other payables 7,370 6,259 4,757
Current portion of non current 239 367 319
liabilities
Bank overdraft - - 5
Total Liabilities 13,158 13,185 10,214
CASHFLOW STATEMENT
31 December 30 June
2004 2003 2004
(Reviewed) (Reviewed) (Audited)
six months six months twelve mo
R` 000 R` 000 R` 000
Cash flow from operating activities 472 1,003 (185)
Net cash (utilized) / generated by 509 1,009 (195)
operations
Finance costs (51) (37) (52)
Investment income 14 31 62
Cash flow from investing activities 160 (308) (938)
Cash flow from financing activities 176 289 439
Net increase in cash and cash 808 984 (684)
equivalents
Cash and cash equivalents at the 1,325 2,009 2,009
beginning of the year
Cash and cash equivalents at end of 2,133 2,993 1,325
the year
COMMENTS:
RESULTS
We are pleased to report that the group returned to profit in the six-month
period under review. Earnings per share increased by 92% and headline earnings
by 62% compared to the same period last year, while revenues increased by 19%.
The group remains cash positive with no debt save for short-term finance for
capital equipment.
The re-packaged infotainment portfolio referred to in our last annual report has
shown a positive response particularly with the introduction of fulfillment,
which has created a promising new revenue stream. In addition, we will shortly
be launching an innovative web-based service for short message services (`SMS`)
and interactive voice response (`IVR`) throughout the African continent. This
product will enable us to host services anywhere in Africa from our offices in
Johannesburg.
Our portfolio of business services, in particular Fax2Email, has also shown a
30% growth compared to the comparative period and this continues to improve
month on month. Our dealer base has grown substantially and it is anticipated
that this route to market will greatly enhance the group`s ability to increase
its customer base. As new products are developed, they are introduced via our
dealer network as well as our own sales team.
PROSPECTS
The group is well focused into two specific service offerings (from a single
technical platform which comprises 750 channels of digital voice and data
capability) namely infotainment and business services.
New products in each service offering bode well for positive growth in the next
six months. With the de-regulation of the telecommunications industry from 1
February 2005, the group is also exploring new applications within the least
cost routing (LCR`) and Voice of Internet Protocol (`VoIP`) environments. The
group`s technical platform is well placed to offer such services as it is an
independent switch connected to Telkom and each of the GSM networks.
We are optimistic that with the exciting range of products in our portfolio and
our increasing focus within the group, we will leverage off the wealth of
intellectual property that we have been developing over the last six years.
DIRECTORATE
There have been no changes to the directorate during the period under review.
AUDIT REVIEW AND ACCOUNTING POLICIES
These interim results have been reviewed by G Cambanis Inc, and a copy of their
report is available for inspection at the company`s registered office. The
results have been prepared in accordance with South African Statements of
Generally Accepted Accounting Practice. The accounting policies used are
consistent with those used in the annual financial statements for the year ended
30 June 2004.
DIVIDENDS
No dividends have been declared, and no dividend is proposed.
For and on behalf of the board.
Ashvin Mancha - Chairman Mark Smith - Chief Executive Officer
Johannesburg 15 February, 2005
Directors: A Mancha# (Chairman), G Mooney#*, R Graver, R Russell, M A Smith
(CEO), G H Tudor (Financial) # Non-executive * Zimbabwean
Company Secretary: G H Tudor CA (SA)
Registered Office: 372B Oak Avenue, Randburg, 2125, 011-293-0000
Auditors: G Cambanis Inc
Transfer Secretaries: Computershare Investor Services 2004 (Pty) Ltd
Sponsor: LPC Manhattan Sponsors (Pty) Ltd
Date: 15/02/2005 07:53:58 AM
Produced by the JSE SENS Department
