|
DigiCore - Audited Results for the year ended 30 June 2005
DigiCore Holdings Limited
Registration number 1998/012601/06
JSE code: DGC ISIN code: ZAE000016945
(`DigiCore` or `the group`)
Audited Results for the year ended 30 June 2005
* Revenue up 31%
* Operating profit up 99%
* Dividend paid up 100%
* EPS up 80%
* Cash on hand R48,6 million
Abridged group income statement
Audited Audited
Year ended Year ended
30 June 30 June
R`000 2005 2004
Revenue 253 049 193 860
Operating profit before interest, 64 626 34 550
depreciation and amortisation
Amortisation of goodwill - (1 271)
Impairment of goodwill (519) -
Depreciation (6 862) (4 485)
Operating profit before interest 57 245 28 794
Net finance income 439 251
Profit before taxation 57 684 29 045
Taxation 14 951 5 533
Profit after taxation 42 733 23 512
Share of associates profits 310 787
Minority shareholders` interest (2 113) -
Earnings attributable to ordinary 40 930 24 299
shareholders
Number of shares in issue (`000) 202 355 190 346
Fully diluted number of shares in 202 355 213 651
issue (`000)
Weighted average number of shares in 193 954 207 790
issue (`000)
Basic earnings per share (cents) 21,1 11,7
Basic headline earnings per share 21,1 12,2
(cents)
Fully diluted earnings per share 21,1 11,4
(cents)
Determination of headline earnings:
Attributable earnings 40 930 24 299
Impairment/amortisation of goodwill 519 1 271
Profit on disposal of assets (458) (173)
Headline earnings for the year ended 40 991 25 397
30 June 2005
Dividend per share (cents) 6,0 3,0
Dividend per share already paid this 2,0 -
year (cents)
Final dividend per share declared 4,0 3,0
(cents)
Special dividend per share (cents) - 5,0
Abridged group balance sheet
Audited Audited
30 June 30 June
R`000 2005 2004
ASSETS
Non-current assets 80 731 41 143
Property, plant and equipment 18 346 13 661
Intangible assets 45 951 20 016
Investments 8 090 4 943
Deferred tax 8 344 2 523
Current assets 157 928 109 208
Inventories 46 511 21 841
Trade and other receivables 62 817 41 174
Cash and cash equivalents 48 600 46 193
TOTAL ASSETS 238 659 150 351
EQUITY AND LIABILITIES
Capital and reserves 152 326 121 351
Issued capital 19 249 15 540
Non-distributable reserve 6 449 -
Distributable reserve 126 628 105 811
Minority interests 2 113 -
Non-current liabilities 29 324 1 825
Borrowings 21 986 45
Provisions 7 338 1 780
Current liabilities 54 896 27 175
Current portion of long-term 2 826 -
borrowings
Taxation 22 573 2 893
Trade and other payables 29 497 24 282
TOTAL EQUITY AND LIABILITIES 238 659 150 351
Net asset value per share (cents) 75,3 63,8
Net tangible asset value per share 52,6 53,2
(cents)
Abridged group cash flow statement
Audited Audited
Year ended Year ended
30 June 30 June
R`000 2005 2004
Cash flows from operating activities 7 606 31 056
Cash generated by operating 28 062 37 936
activities
Net finance income 439 251
Equity profit from associate 310 787
Dividends paid (20 113) (4 223)
Taxation paid (1 092) (3 695)
Cash flows from investing activities (40 125) (5 370)
Cash flows from financing activities 34 926 (15 868)
Increase in cash and cash 2 407 9 818
equivalents
Cash and cash equivalents at 46 193 36 375
beginning of the year
Cash and cash equivalents at end of 48 600 46 193
the year
Statement of changes in equity
Share Share
R`000 capital premium
Balance at
1 July 2003 211 29 234
Net profit for the year
Dividends paid to
shareholders
Treasury shares (3) (1 538)
Share options exercised 4 1 026
Repurchased
20 886 108 (21) (13 373)
Balance at
1 July 2004 191 15 349
Net profit for the year
Dividends paid to
shareholders
Share options exercised 11 3 698
Capital introduced into
the business
Balance at 30 June 2005 202 19 047
Statement of changes in equity
Non-distri- Distri-
butable butable
R`000 reserve reserve Total
Balance at
1 July 2003 - 85 735 115 180
Net profit for the year 24 299 24 299
Dividends paid to (4 223) (4 223)
shareholders
Treasury shares (1 541)
Share options exercised 1 030
Repurchased
20 886 108 (13 394)
Balance at
1 July 2004 - 105 811 121 351
Net profit for the year 40 930 40 930
Dividends paid to (20 113) (20 113)
shareholders
Share options exercised 3 709
Capital introduced into 6 449 6 449
the business
Balance at 30 June 2005 6 449 126 628 152 326
Comments
Introduction
The DigiCore board is delighted to announce strong growth in results for the
year ended 30 June 2005, with earnings per share up 80%. This success was
achieved by broadening our local and international customer base and improved
customer satisfaction levels through constant training and motivating our staff.
New and more cost-effective technology supplied to our customers assisted in
improving turnover and margins. The acquisition of a European subsidiary,
effective from 1 January 2005, also contributed to the 31% growth in turnover.
Financial results
Turnover grew from R194 million to R253 million. Unit sales increased by 52%
year-on-year. This increase and the ability to keep manufacturing costs at our
factory stable, allowed us to increase operating profit by 99% to R57,2 million
from R28,8 million in 2004.
The balance sheet was further strengthened, with net asset value growing from
63,8 cents to 75,3 cents per share.
Results of subsidiaries in Europe and the UK have been consolidated into the
figures for the year.
Goodwill paid on the European acquisition contributed to the increase in
intangible assets. Borrowings increased to R24,8 million due to an offshore loan
raised to fund the European transaction.
Cash on hand remained stable after R20,1 million was paid in dividends to
shareholders during the year and R5,0 million to investment in the UK
subsidiary. Inventory increased significantly partly due to a problematic
software upgrade of the ERP system at the factory which contributed to higher
stock holding. This has had an impact on the growth of our cash reserves. Our
working capital levels are still receiving attention and will be reduced to
acceptable levels by the next interim reporting date.
Technology
Confidence in our research and development team and the underlying technology
received a double boost after the successful implementation of the Thames Water
project in the UK and receipt of the South African `Technology Top 100 Award in
2004`. We will continue to spend over R12 million a year on research and
development to ensure we remain a world leader in the field of fleet management
and vehicle tracking.
Black economic empowerment
Pamodzi sold its 25,1% shareholding in DigiCore subsequent to year-end to a
consortium of investors led by PSG Capital.
While we are endeavouring to find a new empowerment partner to take up a stake
in the near future, the group will continue to strengthen its BEE scorecard
through its procurement, training, employment equity and social responsibility
policies.
Directorate
Mr Dan Simelane was appointed to the board as an independent non-executive
director on 30 August 2005 following the resignation of the Pamodzi directors on
8 August 2005.
Prospects
A change in strategy from entering new countries to a focus on existing markets
contributed to our growth over the last year. International expansion, however,
remains an integral part of our future plans. Building on our UK success, we
intend to take a 50,1% shareholding in our UK distributor. This capital
injection will allow the business to grow to the next level in the lucrative UK
market.
The platform for our stolen vehicle recovery product is in place to accommodate
rapid growth this year. Substantial working capital will be deployed in coming
months to establish DigiCore in this arena.
Dividend
An interim dividend of 2 cents per share was paid earlier this year. The board
has declared a final dividend of 4 cents per share. (2004: 3 cents per share). A
special dividend of 5 cents per share was paid in 2004.
In order to comply with the requirements from STRATE the relevant details of the
final dividends are:
Event Date
Last day to trade (cum-dividend) Friday 14 October
Shares to commence trading (ex- Monday 17 October
dividend)
Record date Friday 21 October
Payment date Monday 24 October
No share certificates may be dematerialised or rematerialised between Monday, 17
October 2005 and Friday, 21 October 2005, both dates inclusive.
Audit opinion
The group`s auditors PKF (Pretoria) Incorporated, registered accountants and
auditors, has signed an unqualified audit opinion on the financial statements
for the year. These have been approved by the board and abridged for the
purposes of this report. Both the auditor`s opinion and the financial statements
are available for inspection at the company`s registered office.
Accounting policies
These consolidated abridged financial statements for the year ended 30 June 2005
are prepared in accordance with South African Statements of Generally Accepted
Accounting Practice. The accounting policy for goodwill was changed in the
current year in order to comply with IFRS 3: Business combinations. Except for
the above the accounting policies used are consistent with those used in the
annual financial statements for the year ended 30 June 2004.
For and on behalf of the board
NH Vlok NA Gasa
Chief Executive Officer Chairman (Acting)
6 September 2005
Company secretary
DA Nieuwoudt
Registered office
20 Eddington Crescent, Highveld Park, Centurion
Tel: 012 665 7300 Fax: 012 665 5376
Transfer secretaries
Computershare Investor Services 2004 (Pty) Limited
70 Marshall Street, Johannesburg, 2001
(PO Box 61051, Marshalltown, 2107)
Sponsor
PSG Capital Limited
Directors
NH Vlok (Chief Executive Officer), SR Aberdein, D du Rand, BJ Richards#, NA
Gasa* (Acting Chairman), MD Rousseau, DV Simelane*, DA Nieuwoudt
* Non-executive # British
Website
www.digicore.com
Date: 06/09/2005 02:25:43 PM
Produced by the JSE SENS Department
| Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information. | |||||||||||||
| Other Profile Group sites: FundsData Online (unit trust data) | Profile Group corporate site | |||||||||||||
| [ Terms of Use | Privacy Policy | PAIA manual | FAQs/Help | Site Map | © Copyright Reserved 2026 ] | |||||||||||||
|
|||||||||||||
