| Tue 14 Jun 2005, 15:47 | | Vesta - Abridged unaudited results for the six mon |
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Vesta - Abridged unaudited results for the six months ended 28 February 2005
Vesta Technology Holdings Limited
(Registration number 1998/015580/06)
Share code: VST ISIN: ZAE000016267
(`Vesta`, `the Group` or `the Company`)
Abridged unaudited results for the six months ended 28 February 2005
Abridged Income Statement
Unaudited Unaudited Audited
Six months Six months Year
ended ended ended
28/02/05 29/02/04 31/8/04
R`000 R`000 R`000
Revenue 5 720 8 675 16 172
Cost of sales (2 937) (5 366) (9 861)
Gross profit 2 783 3 309 6 311
Other operating income 297 214 267
Other operating expenses (3 016) (3 201) (5 631)
Results from operating activities 64 322 947
Impairment of intangible assets - - (552)
Impairment of loans (175) - -
Profit on dilution and disposal
of investment in subsidiary 3 524 - -
Impairment of loans in subsidiary sold (3 465) - -
Attributable loss from associate (48) - -
Net financing expense (16) (5) (13)
(Loss)/Profit before taxation (116) 317 382
Taxation (99) (182) (413)
(Loss)/Profit for the period (215) 135 (31)
Reconciliation of headline
(loss)/earnings
(Loss)/Profit for the period (215) 135 (31)
Impairment of loans 175 - -
Profit on dilution and disposal
of investment in subsidiary (3 524) - -
Impairment of loans in subsidiary sold 3 465 - -
Impairment of intangible assets - - 552
Headline (loss)/earnings (99) 135 521
(Loss)/Earnings per share (cents) (0.3) 0.2 -
Headline (loss)/earnings per share
(cents) (0.1) 0.2 0.6
(There are 84 600 000, (closing and weighted) shares in issue at the date of
this report. During this year 7 358 194 shares are to be issued to the share
trust, increasing the shares in issue to 91 958 194 shares. The granting of the
share options was authorised at the annual general meeting held on 30 April
2003.)
Abridged Statement of Changes in Equity
Non-
Share Share Retained distributable
capital premium profits reserve Total
R`000 R`000 R`000 R`000 R`000
Balance at 1 September 2003 85 18 958 (17 864) 141 1 320
Foreign exchange translation
reserve - - - (141) (141)
Net profit for the period - - 135 - 135
Balance at 29 February 2004 85 18 958 (17 729) - 1 314
Balance at 1 September 2004 85 18 958 (17 895) - 1 148
Net loss for the period - - (215) - (215)
Balance at 28 February 2005 85 18 958 (18 110) - 933
Abridged Balance Sheet
Unaudited Unaudited Audited
28/02/05 29/02/04 31/8/04
R`000 R`000 R`000
Assets
Non-current assets 336 1 377 288
Tangible assets 60 202 123
Non-tangible assets - 768 -
Deferred tax 276 407 165
Current assets 3 775 3 157 2 978
Inventories 3 64 3
Trade and other receivables 3 292 2 747 2 470
Cash and cash equivalents 94 133 95
Taxation 40 183 203
Other financial assets 346 30 207
Total assets 4 111 4 534 3 266
Equity and liabilities
Capital and reserves 933 1 314 1 148
Equity capital 19 043 19 043 19 043
Accumulated loss (18 110) (17 729) (17 895)
Non-current liabilities - 3 -
Interest bearing borrowings - 3 -
Current liabilities 3 178 3 217 2 118
Trade and other payables 1 791 1 912 1 247
Provisions 283 316 382
Deferred revenue 732 488 255
Short-term borrowings 3 18 12
Bank overdraft 369 426 222
Taxation - 57 -
Total equity and liabilities 4 111 4 534 3 266
Abridged Cash flow statement
Unaudited Unaudited Audited
Six months Six months Year
ended ended ended
28/02/05 29/02/04 31/8/04
R`000 R`000 R`000
Cash flows from operating activities 178 (67) 297
Cash flows from investing activities (317) 17 (172)
Cash flows from financing activities (9) (35) (44)
Net change in cash and cash
equivalents (148) (85) 81
Cash and cash equivalents
at beginning of period (127) (208) (208)
Cash and cash equivalents
at end of the period (275) (293) (127)
Commentary
The business
Vesta`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 local government financial management,
performance management and collaboration.
Accounting policies
The accounting policies in respect of the financial year ended 31 August 2004
have been consistently applied to the results for the period ended 28 February
2005. These policies conform to South African Statements of Generally Accepted
Accounting Practice.
Review of results
The financial statements have not been reviewed or reported on by the Company`s
auditors.
The Group diluted its interest in Vesta WebActive Solutions (Pty) Ltd
(`WebActive`) from 100% to 50%, by acquiring the e-learning business from
Campuswise (Pty) Ltd, effective from 1 January 2005 for a consideration of R50
000. This was settled by the issue of 1 000 WebActive shares equating to 50% of
the issued share capital of WebActive. This was done to bring a new product line
into WebActive to create an integrated blended e-learning offering to the market
that would help to regenerate WebActive and return it to profitability.
The Group then subsequently sold a portion of its investment in WebActive to a
BEE partner on 1 February 2005 for R25 000 cash, thus reducing its holding to
35%. The reduction in the Group`s investment in WebActive has led to a profit of
R3 524 655 and a corresponding impairment in the loans to WebActive of R3 464
015. The Group will now account for this investment as an associate.
Dividends
No dividends are declared or proposed.
Operational comment
Tough trading conditions persisted and Vesta was unable to optimise its return.
We unfortunately also lost one of our bigger accounts. This is visible in the
decrease of revenue. As a consequence, Vesta has had to go through a
restructuring which will unfortunately result, inter alia, in the financial
director, E Thomas, leaving the Group.
Prospects
A refocus on only two main areas, System Support and Development will create a
cleaner and more focused team to grow these. We are confident that the Company
can once again achieve a position of sustained growth.
By order of the board
F J Morrison Johannesburg
Chief Executive Officer 14 June 2005
Directors: F Morrison, A Futcher, M Morrison (Non-executive), S Roopa (Non-
executive chairman)
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
Road, Midrand, Johannesburg. Tel: (011) 314-8181 Fax: (011) 314-8182
www.vesta.co.za
Date: 14/06/2005 03:34:24 PM
Produced by the JSE SENS Department
