| Mon 28 Feb 2005, 15:33 | | Digicore - Group interim results for the six month |
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Digicore - Group interim results for the six months ended 31 December 2004
Digicore Holdings Limited
Registration number 1998/012601/06
JSE code: DGC
ISIN code: ZAE000016945
GROUP INTERIM RESULTS for the six months ended 31 December 2004
* Turnover +16%
* Operating profit +41%
* HEPS +53%
Comments
Overview
The board is pleased to report on a very rewarding and exciting interim period
which laid the foundation for a very good 2005. We were awarded three
significant tenders late last year and installations will continue throughout
2005. New hardware and software products were introduced at Auto Africa 2004
which offer innovative vehicle management options for existing and new fleet
owners, as well as for private vehicle owners.
Financial review
The group recorded 16% growth in revenue from R92,1 million to R107,3 million
for the period under review.
Operating profit before depreciation increased by 41% from R15,6 million to
R22,0 million. The operating margin increased mainly due to better utilisation
of fixed overheads as a result of the increase in turnover.
Earnings per share increased by 60% to 8,5 cents per share (2003: 5,3 cents per
share) and headline earnings per share increased by 53% to 8,4 cents per share
(2003: 5,5 cents per share).
Due to record demand and only partial delivery in December, stock and debtor
levels increased beyond established norms. This resulted in the negative cash
flow from operations. These high working capital levels are receiving attention
and are in the process of being reduced.
Current status
From a solid foundation and with a cohesive management team, we have achieved
all the major goals set for the period. We have increased our shareholding in
DigiCore Europe to 51% from 50% subsequent to the reporting period and DigiCore
Europe acquired a 100% shareholding in C-track Benelux. DigiCore Europe`s
additional profit contribution to the group is expected to be around R4 million
per annum and we expect that it will continue to grow. This acquisition will
also increase our direct involvement with all eight European distributors. Unit
sales in our new UK market are expected to be over 2 000 units this year from
virtually a zero base last year.
Overall unit exports increased by 96% against the comparative period.
The launch at Auto Africa in November of C-track Secure was most encouraging. We
are currently establishing a new team to ensure the growth of C-track Secure
into the tracking and recovery market to meet our expectations.
Achievements - 2004
* Fourth-best JSE investment performer for 2004
* Technology Top 100 Award from Department of Science and Technology - Large
Enterprise winner in the Services Category
* ISO 9001/2000 certification of DigiCore Fleet Management
* Nominated by Department of Trade and Industry as one of South Africa`s top
300 companies for contribution to the growth of the economy and job
creation
* Empowerment certificate from Impumelelo as one of South Africa`s top 300
companies in empowerment (endorsed by the Department of Trade and Industry)
* Sunday Times Business Times Top 100 Companies Award
* Gold Medal Achievement Award for exhibition stand at Auto Africa 2004
Expectations
We are approaching 2005 with expansion in mind. Our goal is to maintain the
growth achieved over the past few years while maintaining proper risk management
and controls.
As in the past, our focus will be on technology enhancement and growth, having
released our second GPRS-based product. The European business will be
restructured for expansion and we intend taking a share of the local tracking
and stolen vehicle recovery market as rapidly as possible. After having had to
manage bureaucratic procedures in Brazil, we believe the benefits will emerge in
the very near future.
Strengthening our relationships with our strategic customers and suppliers is a
high priority, supported by our all-encompassing `Customers for Life` project
launched this year.
Dividend
Notice is hereby given that the board has declared a maiden interim dividend of
2 cents per share.
To comply with the requirements of STRATE, the relevant details of the interim
dividend are:
Event Date
Last day to trade (cum dividend) Friday, 1 April 2005
Shares to commence trading (ex dividend) Monday, 4 April 2005
Record date Friday, 8 April 2005
Payment date Monday, 11 April 2005
Shares may not be dematerialised or rematerialised between Monday, 4 April 2005
and Friday, 8 April 2005, both dates inclusive.
Board composition
There were no changes to the composition of the board of directors during the
period under review. Subsequent to the financial reporting date, IU Khumalo
resigned and MD Rousseau was appointed to the board.
For and on behalf of the board
NA Ntsele (Chairman)
NH Vlok (Chief Executive Officer)
28 February 2005
Income statement
Six months Six months Year
ended ended ended
31 Dec 31 Dec 30 June
2004 2003 2004
R`000 Unaudited Unaudited Audited
Revenue 107 265 92 090 193 860
Operating profit before depreciation 22 081 15 572 34 550
Depreciation 1 995 2 135 4 485
Amortisation of goodwill - 613 1 271
Net operating profit 20 086 12 824 28 794
Net finance income/(cost) 694 (65) 251
Equity income in associate company 405 532 787
Profit before tax 21 185 13 291 29 832
Taxation 4 970 2 225 5 533
Profit after taxation 16 215 11 066 24 299
Statistics
Number of shares in issue (000`s)
- end of period 191 970 210 878 190 346
- weighted average 191 259 210 607 207 790
Basic headline earnings per share 8,4 5,5 12,2
(cents)
Basic earnings per share (cents) 8,5 5,3 11,7
EBITDA (%) 21,0 17,5 18,2
Diluted earnings per share (cents) 8,2 5,1 11,4
Diluted headline earnings per share 8,1 5,4 11,9
(cents)
Dividends per share (cents) 2 - 3
Special dividends per share (cents) - - 5
Balance sheet
As at As at As at
31 Dec 31 Dec 30 June
2004 2003 2004
R`000 Unaudited Unaudited Audited
ASSETS
Non-current assets 44 041 41 030 41 143
Property, plant and equipment 15 516 12 216 13 661
Intangible assets 20 016 20 673 20 016
Investments 5 351 5 094 4 943
Deferred tax 3 158 3 047 2 523
Current assets 108 419 113 806 109 208
Inventories 34 747 26 284 21 841
Trade and other receivables 50 186 28 817 41 174
Bank balances 23 486 58 705 46 193
TOTAL ASSETS 152 460 154 836 150 351
EQUITY AND LIABILITIES
Capital and reserves 122 630 121 966 121 351
Issued capital 15 832 29 665 15 540
Distributable reserve 106 798 92 301 105 811
Non-current liabilities 0 2 226 1 825
Borrowings 0 691 45
Provisions 0 1 535 1 780
Current liabilities 29 830 30 644 27 175
Taxation 6 882 1 499 2 893
Trade and other payables 19 698 23 026 19 957
Current portion of long-term 177 2 483 1 245
borrowings
Shareholders for dividends 69 1 077 -
Provisions 3 004 2 559 3 080
TOTAL EQUITY AND LIABILITIES 152 460 154 836 150 351
Net asset value per share (cents) 63,9 57,8 63,8
Tangible asset value per share (cents) 53,5 48,0 53,2
Reconciliation between earnings and headline earnings
Six months Six months Year
ended ended ended
31 Dec 31 Dec 30 June
2004 2003 2004
R`000 Unaudited Unaudited Audited
Attributable earnings 16 215 11 066 24 299
Amortisation of goodwill - 613 1 271
Profit on disposal of fixed asset (161) (135) (173)
Headline earnings 16 054 11 544 25 397
Statement of changes in equity
Distri-
Share Share butable
R`000 capital premium reserve Total
Balance as at 1 July 2004 191 15 349 105 811 121 351
Net profit for the period 16 215 16 215
Dividend declared (15 228) (15 228)
Share options exercised 1 291 292
Balance as at
31 December 2004 192 15 640 106 798 122 630
Summarised cash flow statement
Six months Six months Year
ended ended ended
31 Dec 31 Dec 30 June
2004 2003 2004
R`000 Unaudited Unaudited Audited
Net cash (outflow)/inflow from (2 522) 26 845 37 936
operating activities
Net financing income/(cost) 694 (65) 251
Dividends paid (15 228) (3 423) (4 223)
Taxation paid (980) (805) (3 695)
Cash flows from operating activities (18 036) 22 552 30 269
Cash flows from investing activities (3 558) (1 946) (4 583)
Cash flows from financing activities (1 113) 1 724 (15 868)
Net movement in cash resources (22 707) 22 330 9 818
Cash and cash equivalents at beginning
of period 46 193 36 375 36 375
Cash and cash equivalents at end of
period 23 486 58 705 46 193
Notes
Preparation of results
These interim financial statements were prepared in accordance with South
African Statements of Generally Accepted Accounting Practice. The policies used
in the preparation of these financial statements are consistent with those used
in the annual financial statements for the year ended 30 June 2004, except for
the adoption of IFRS 3. Comparatives have been appropriately restated for the
consolidation of the DigiCore Holdings Limited Share Trust.
Company secretary
AJ Voogt
Registered address
20 Eddington Crescent, Highveld Park, Centurion.
Tel: 012 665 7300. Fax: 012 665 5376
Transfer secretary
Computershare Investor Services 2004 (Pty) Limited, 70 Marshall Street,
Johannesburg, 2001
(PO Box 1053, Johannesburg, 2000)
Directors
NA Ntsele* (Chairman), NH Vlok (Chief Executive Director), SR Aberdein, D du
Rand, BJ Richards+, AJ Voogt, JJ du Plooy*, NA Gasa*, U Khumalo*, SA Msibi*.
* Non-executive director +British
Sponsor
PSG Capital Limited
www.digicore.com
Date: 28/02/2005 02:30:18 PM
Produced by the JSE SENS Department
