| Wed 10 Aug 2005, 13:34 | | Zaptronix - Unaudited Interim Results |
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Zaptronix - Unaudited Interim Results
Zaptronix Limited
(Incorporated in the Republic of South Africa)
(Registration Number: 1997/014928/06)
Share code: ZPT ISIN: ZAE000015145
(`Zaptronix` or `the company` or `the group`)
ABRIDGED UNAUDITED INTERIM FINANCIAL STATEMENTS FOR THE TWELVE MONTHS ENDED 30
APRIL 2005
GROUP BALANCE SHEETS
(R`000) Unaudited Audited Unaudited
At 30 Apr At 30 Apr At 31 Oct
2005 2004 2004
ASSETS
Non-current assets 919 1 084 868
Fixed assets and intangibles 489 670 460
Investment in associate 430 415 408
Current assets 1 359 706 897
Accounts receivable and 1 202 494 848
inventory
Cash and cash equivalents 157 212 49
Total assets 2 278 1 790 1 765
EQUITY AND LIABILITIES
Capital and reserves 208 134 196
Share capital and premium 26 749 26 749 26 749
Non-distributable reserve 207 168 196
Accumulated losses (26 748) (26 783) (26 749)
Non-current liabilities 1 302 375 957
Deferred tax - - 21
Borrowings 1 302 375 936
Current liabilities 768 1,281 612
Accounts payable and 768 1 281 612
provisions
Total equity and liabilities 2 278 1 790 1 765
Net asset value per share 0.14 0.09 0.14
(cents)
Net tangible asset value per (0.08) (0.25) (0.08)
share (cents)
Closing number of ordinary 144 805 144 805 144 805
shares (`000)
GROUP INCOME STATEMENTS
(R`000) Unaudited Audited Unaudited
12 Months 12 Months 6 Months
ended ended ended
30 Apr 2005 At 30 Apr At 31 Oct
2004 2004
Revenue 2 101 3 164 889
Cost of sales (815) (1 692) (208)
Gross profit 1 286 1 473 681
Other income 1 81 1
Operating costs (1 266) (3,943) (632)
Operating profit/(loss) 21 (2 390) 49
Net interest paid (3) - (3)
Share of associate 31 (236) 3
profit/(loss)
Net income/(loss) before 49 (2 626) 49
taxation
Taxation (11) 428 (15)
Net income/(loss) after 37 (2 198) 34
taxation
Reconciliation of earnings and headline earnings
Earnings/(loss) per share 0.03 (1.52) 0.02
(cents)
Loss on assets scrapped - 0.06 -
(cents)
Impairment of investment (0.02) 0.19 -
(cents)
Headline earnings/(loss) per 0.01 (1.27) 0.02
share (cents)
Weighted average number of 144 805 144 805 144 805
ordinary shares (`000)
GROUP STATEMENTS OF CHANGES IN EQUITY
(R`000) Unaudited Audited Unaudited
12 Months 12 Months 6 Months
ended ended ended
30 Apr 2005 At 30 Apr At 31 Oct
2004 2004
Balance at the beginning of 134 2 332 134
the period
Foreign currency translation 37 - 28
reserve
Net profit/(loss) for the 37 (2 198) 34
period
Balance at the end of the 208 134 196
period
GROUP CASH FLOW STATEMENTS
(R`000) Unaudited Audited Unaudited
12 Months 12 Months 6 Months
ended ended ended
30 Apr 2005 At 30 Apr At 31 Oct
2004 2004
Cash flows from operating (961) (321) (779)
activities
Cash generated/(utilised) in (947) (318) (761)
operating activities
Net interest paid (3) - (3)
Taxation (11) (3) (15)
Cash flows from investing (21) (23) 34
activities
Foreign currency translation 39 - 28
reserve
Purchase of tangible assets (45) (23) -
Proceeds for sale of - - -
tangible assets
Change in investment in (15) - 7
associate
Cash flows from financing
activities
Loans raised 927 375 582
Increase/(decrease) in cash (55) 31 (163)
and cash equivalents
Cash and cash equivalents at 212 181 212
beginning of year
Cash and cash equivalents at 157 212 49
end of year
Financial results and prospects
The interim results for the twelve months ended 30 April 2005 mainly reflect
improvements in the original core business of Zaptronix, namely the sale of
electricity metering products. Turnover in the second six months of the
reporting period improved by 36% over the first six months. The gross profit
margin of 61% for the 12 months to April 2005 from 77% during the six months to
October 2004 represents a return to more normal levels following the sale of
distributor rights of automated meter reading in the earlier period. The
improved gross profit margin in the current 12 months to April 2005 relative to
the previous financial year to April 2004 (47%) is attributable to higher margin
software development services provided by the company. The results begin to
identify the benefits of leveraging metering solutions and energy management
services against the existing base of providing mainly energy management
products.
Sales of the electric metering products have shown strong growth in the second
quarter of the 2005 calendar year, the impact of which will be reflected in the
group`s financial results for the period ending August 2005. The growth in
product sales is also expected to assist in alleviating the cash flow needs
arising from refocusing the company`s activities towards providing risk
management solutions in the area of energy management. In this regard, the
board is pleased to announce that the strategic refocusing of the company has
gained considerable momentum in the last three months. Management has
identified target markets for the metering solutions, with an emphasis on
converting these into annuity contracts extending over periods of six months to
three years. Much of the groundwork currently being laid will enhance the
trading performance only in the next financial year, but management is extremely
encouraged by the initial response in the market place to its newly launched
initiatives. The next 12 to 18 months should begin to reflect the benefits of
this growth opportunity and, as the base earnings increase over time, the impact
on the company`s results should become increasingly evident.
As reported in the SENS announcement of 21 June 2005, the proposed acquisition
of DuO Solutions Provider Ltd (`DuO SP`) is on track. In terms of the
transaction, Zaptronix will acquire the business and infrastructure of DuO SP,
including access to its central bureau and development team, against which it is
gearing and expanding its existing automated meter reading solutions and planned
energy management services. The circular relating to this deal is presently in
the final phase, awaiting formal approval by the JSE, before being posted. The
shareholder meeting is expected in early-September 2005. Shareholders will be
advised of the final detail in the course of the next few weeks.
The board of directors resolved in December 2004 to change the financial year-
end of the company and its subsidiaries to August, which resolution was
registered on 12 January 2005. This was done to facilitate the implementation
of the DuO SP transaction, provide for the orderly dissemination of information
to shareholders and align the financial year-ends of the two consolidated
entities. For comparative purposes the interim results for October 2004 are
included.
Accounting policies
The accounting policies of the company comply in all material respects with
South African Statements of Generally Accepted Accounting Practice and Schedule
4 of the Companies Act of 1973. These policies are consistent with those
applied during the previous financial year.
Dividend
No dividend has been recommended or declared for the interim period.
For and on behalf of the board
JP Nel - Chief Executive Officer
Midrand, 5 August 2005
Directors: JP Nel, J Stratenwerth, A De Canio, KJ Gribnitz*, (*Non-executive)
Corporate Advisors Sponsor
Radagast Capital (Pty) Ltd River Sponsors (Pty) Ltd
Transfer secretaries Registered address
Computershare Investor Solutions House, Gazelle Close
Services 2004 (Pty) Ltd Corporate Park, Midrand
Date: 10/08/2005 12:56:12 PM
Produced by the JSE SENS Department
