| Mon 19 Sep 2005, 8:22 | | ISA Holdings Limited - Unaudited results for the 6 |
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ISA Holdings Limited - Unaudited results for the 6 months ended 31 August 2005
ISA HOLDINGS LIMITED (formerly Y3K GROUP LIMITED)
(`ISA` or `the company`)
(Registration number: 1998/009608/06)
JSE share code: ISA (formerly YHK)
ISIN code: ZAE000067344 (formerly ZAE000017208)
Unaudited results for the 6 months ended 31 August 2005
In accordance with the AltX Listings Requirements, shareholders are advised of
the risks of investing in a company listed on AltX and are advised that the JSE
does not guarantee the viability or the success of a company listed on AltX. In
terms of JSE Listings requirements a Designated Adviser has to be retained by
the company. The Designated Adviser is required to, inter alia, attend all board
meetings held by the company to ensure that all JSE Listings Requirements and
applicable regulations are complied with, approve the financial director of the
company and guide the company in a competent, professional and impartial manner.
If the company fails to retain a Designated Adviser it must make arrangements to
appoint a new Designated Adviser within 10 business days, failing which the
company faces suspension of trading of its securities. If a Designated Adviser
is not appointed within 30 days of its suspension the company faces the
termination of its listing without an offer to minorities.
UNAUDITED RESULTS FOR THE 6 MONTHS ENDED 31 AUGUST 2005
The six months under review has been an exciting and successful period for ISA,
where the anticipated synergies from the 2004 mergers with Information Security
Architects and iSecure have been realised.
HEPS (EXCL. STC) 56%
HEPS 44%
EPS (EXCL. STC) 92%
EPS 67%
REVENUE 25%
The results have been pleasing with healthy organic growth achieved in each line
of business. Despite the continued strength of the Rand, operating margins
remained on target resulting in ISA exceeding targets.
CASH GENERATED TO EARNINGS 103%
Management`s objective of matching profits with tangible cash-on-hand was
achieved for the period. The strong growth in earnings, presented as an increase
in earnings per share of 67% to R2.6 million and headline earnings per share of
44% to R3.3 million. These results illustrate ISA`s ability to apply rigorous
financial management principles to every aspect of the business.
BLACK ECONOMIC EMPOWERMENT
In support of transformation and compliance with the ICT Charter, ISA announced
during the period that they have entered meaningful discussions with potential
BEE partners. These discussions continue and an outcome is anticipated within
the next few months.
PROSPECTS
The ISA management team is confident in their ability to achieve organic growth
and remain committed to building the sub-Sahara African information security
market. Focus, passion and innovation are ingredients within the company that
management believes will underpin their success.
It is anticipated that these results will be repeated for the next six month
reporting cycle.
ACCOUNTING POLICIES
These results have been prepared on a going concern basis, using accounting
principles and policies that comply with International Financial Reporting
Standards (IFRS) and with South African statements of Generally Accepted
Accounting Practice, and are consistent with the previous period. There have
been no material changes arising from the implementation of IFRS.
SPECIAL THANKS
I take this opportunity to thank all of our stakeholders, especially our
management and staff, for being dedicated and committed to the business. It is
this energy that has created ISA`s success.
For and on behalf of the board.
Clifford Katz
Director
19 September 2005
Designated Advisor: RIVER GROUP
GROUP INCOME STATEMENT
6 months ended 6 months ended Year Ended
31 August 2005 31 August 2004 28 February
2005
Unaudited Unaudited Audited
R`000s R`000s R`000s
Revenue 18,277 14,620 31,446
Cost of Sales (10,421) (7,757) (17,778)
Gross profit 7,856 6,863 13,668
Other income 212 0 75
Income from associate 0 0 22
Operating expenses (5,291) (5,357) (10,714)
Operating profit before
net finance income 2,777 1,506 3,051
Net finance income 181 27 134
Net profit for the period
before taxation 2,958 1,533 3,185
Taxation - STC (325) 0 4
Net profit for the period 2,633 1,533 3,189
GROUP BALANCE SHEET
Assets
Non - current assets 6,130 8,509 6,966
Tangible assets 344 421 363
Intangible assets 4,863 6,815 5,558
Investment in associate
Company 0 0 122
Share incentive trust 923 1,273 923
Current assets 14,648 6,573 14,858
Cash and cash equivalents 7,636 1,349 4,932
Inventory 41 28 36
Loan receivable 0 0 2,545
Trade and other receivables 6,971 5,196 7,345
Total assets 20,778 15,082 21,824
Equity and liabilities
Capital and reserves 14,492 12,104 14,459
Share capital 1,300 1,231 1,300
Share premium 14,387 13,757 14,387
Non-distributable reserve 3,021 3,021 3,021
Accumulated loss (4,216) (5,905) (4,249)
Current liabilities 6,286 2,978 7,365
Trade and other payables 6,286 2,915 7,365
Interest-bearing borrowings 0 63 0
Total equity and liabilities 20,778 15,082 21,824
CASH FLOW STATEMENT
Cash flows from
operating activities 2,980 1,433 4,705
Cash flows from
dividends paid including STC (2,925) 0 0
Cash flows from
investing activities 104 (68) (1,116)
Cash flows from
financing activities 2,545 (703) 656
Net increase in cash
and cash equivalents 2,704 662 4,245
Cash and cash equivalents
at beginning of the period 4,932 687 687
Cash and cash equivalents
at end of the period 7,636 1,349 4,932
GROUP STATEMENT OF CHANGES IN EQUITY
Share capital and reserves
Balance at beginning of
the period 14,459 1,079 1,079
Shares issued during
the period at par value 0 708 777
Share premium on shares
issued 0 8,784 9,414
Net profit for the period 2,633 1,533 3,189
Dividends paid (2,600) 0 0
Balance at end of the period 14,492 12,104 14,459
RECONCILIATION OF HEADLINE EARNINGS
Profit as per income
Statement 2,633 1,533 3,189
Impairment of intangible
assets 714 714 1,425
Headline earnings 3,347 2,247 4,614
ORDINARY SHARES
Earnings per share (cents) 2.0 1.2 2.5
Earnings per share excluding
STC (cents) 2.3 1.2 2.5
Headline earnings per share
(cents) 2.6 1.8 3.5
Headline earnings per
share excluding STC (cents) 2.8 1.8 3.5
Number of shares in issue
(`000s) 130,000 123,113 130,000
Net asset value per share
(cents) 11.1 9.8 11.1
Net tangible asset value
per share (cents) 7.4 4.3 6.8
Date: 19/09/2005 07:27:03 AM
