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Square One - Unaudited Interim Results For The Six Months Ended 30 June 2005
Square One Solutions Group Limited(Registration number 1999/026822/06)
Share code: SQE
ISIN: ZAE000023768
UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2005
BALANCE SHEETS 30 June 30 June 31 December
2005 2004 2004
R`000 Unaudited Unaudited Audited
ASSETS
Non-current assets 16 870 13 183 19 776
Fixed assets 951 1 214 944
Intangible assets 7 943 8 326 9 633
Investment - 16 16
Deferred tax 7 976 3 627 9 183
Current assets 49 382 49 695 47 166
Inventories 15 764 15 687 16 782
Accounts receivable 33 501 33 188 28 575
Taxation - 31 -
Bank balances 117 789 1 809
Total assets 66 252 62 878 66 942
EQUITY AND LIABILITIES
Issued capital 9 020 9 020 9 020
Accumulated losses (2 377) (4 491) (3 003)
Ordinary shareholders` funds 6 643 4 529 6 017
Outside shareholders` 686 1 217 686
interest
Outside shareholders` loans 246 365 246
Long-term liabilities 17 848 21 450 25 109
Current liabilities 40 829 35 317 34 884
Accounts payable 35 906 26 116 29 672
Taxation 78 - 119
Current portion of long-term 1 927 4 722 3 711
liabilities
Provisions 2 022 1 591 1 381
Bank overdraft 896 2 888 1
Total equity and liabilities 66 252 62 878 66 942
EARNINGS PER SHARE
2005 2004 2004
Earnings per share (cents) 2,8 (4,2) 2,5
Headline earnings per share 4,9 (2,3) 3,6
(cents)
Earnings per share is
calculated by using the
relevant attributable
profits and issued shares.
Reconciliation of headline
earnings per share
Attributable profit 626 (932) 556
Impairment of goodwill 443 424 886
Negative goodwill written - - (652)
off
Headline earnings 1 069 (508) 790
Number of issued shares 22 000 22 000 22 000
(000`s)
INCOME STATEMENTS Twelve
Six months to Six months to months to
30 June 30 June 31 December
2005 2004 2004
R`000 Unaudited Unaudited Audited
Turnover 95 911 58 753 144 338
Operating profit 2 359 979 1 888
Net finance costs (1 508) (1 197) (1 807)
Net profit/(loss) before tax 851 (218) 81
Taxation (225) - 657
Net profit/(loss) after tax 626 (218) 738
Profit attributable to - (714) (182)
outside shareholders
Net profit attributable to 626 (932) 556
ordinary shareholders
ABRIDGED CASH FLOW Twelve
STATEMENTS Six months to Six months to Months to
30 June 30 June 31 December
2005 2004 2004
Unaudited Unaudited Audited
R`000
Net flow from operating 3 950 (419) 2 868
activities
Net flow from investing 2 322 (278) (2 316)
activities
Net flow from financing (8 859) (2 103) 555
activities
Increase/(decrease) in cash (2 587) (2 800) 1 107
and cash equivalents
Cash at beginning of period 1 808 701 701
Cash at end of period (779) (2 099) 1 808
STATEMENT OF Distribu-
CHANGES IN EQUITY Share Share table Minority Total
capital premium reserves Total interest Equity
R`000
Balance at 1 220 8 800 (3 003) 6 017 686 6 703
January 2005
Surplus for the 626 626 626
period
Balance at 30 June 220 8 800 (2 377) 6 643 686 7 329
2005
NOTE:The statements have been prepared in accordance with South African
Statements of Generally Accepted Accounting Practice and in accordance with
International Financial Reporting Standards applicable to Interim Financial
Reporting and the accounting policies used in the preparation of these results
are consistent with those applied in the previous reporting period.
COMMENTARYThe Group has returned positive financial results for the period under
review where Group turnover reflects an increase of 63% over the same period in
2004.
The positive results from the Group have resulted in the business posting an
operating profit of R2,359 million compared to R0,979 million for the
corresponding period in 2004. Headline earnings have increased from a loss of
R0,508 million in 2004 to a profit of R1,069 million in the period under review.
Headline earnings per share have improved from a headline loss per share of 2,3
cents in 2004 to headline earnings per share of 4,9 cents.
The ongoing transition of the business to a turnkey, technology centric,
solutions provider is paying dividends, as reflected in the positive nature of
results for the period under review. The above growth and acceptance by the
market for solution offerings, which truly add quantifiable value, is reflected
in both our top line revenue and gross margin contribution lines.
The above results are in line with our strategic intent.
Square One boasts 19 years of business experience with national representation
and is an information technology company listed under the `Information
Technology (IT) - Software and Computer Services` sector of the JSE Securities
Exchange South Africa (`JSE`). Square One`s primary service focuses on providing
niche, business-enabling solution offerings, which create value for our clients
through the application of our clients` business knowledge and Square One`s best
practices, technological skills and capability. The Group`s primary focus is the
provision of value-based offerings centered around biometric authentication,
facility solutions, product coding and marking solutions, systems integration
services, wireless and infrastructure solutions, storage solutions and
telecommunications and service provider solutions to key target markets.
On behalf of the board.G A CoetserChairman
R T MuzaririVice-Chairman
W T JamesChief Executive Officer
Sandton8 September 2005
Directors: G A Coetser* (Chairman), C L Alexander, W T James (Chief Executive
Officer), Prof. M. S. Makhanya, R R Masebelanga* (Deputy Chairman),A Meyer,
R T Muzariri (Vice Chairman), M G Seape*, KXT Socikwa*
(*Non-executive)
REGISTERED ADDRESS34 Monkor Drive, Randpark Ridge, 2169(PO Box 1163, Gallo Manor
2146)Telephone: (011) 321-5900Telefax: (011) 444-2462
TRANSFER SECRETARIESUltra Registrars (Pty) LtdPO Box 4844, Johannesburg 2000
SPONSORBridge Capital Services (Pty) LtdPO Box 651010, Benmore, 2010
Date: 09/09/2005 01:00:26 PM
