| Wed 28 Sep 2005, 12:17 | | Beget Holdings Limited - Unaudited Consolidated Re |
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Beget Holdings Limited - Unaudited Consolidated Results For The 6 Months Ended
30 June 2005
Beget Holdings Limited
(Registration number 2002/011635/06)
(`Beget`)
Share code BEE ISIN ZAE000044111
* Gross Revenue UP 180%
* Pro?t UP 120%
* Headline earnings UP 120%
Unaudited consolidated results for the 6 months ended 30 June 2005
BALANCE SHEET at 30 June 2005
Unaudited Unaudited Audited
30 Jun 05 30 Jun 04 31 Dec 04
R `000 R `000 R `000
Assets
Non-current assets 4 875 4 766 3 871
Property, plant and equipment 1 341 1 940 1 636
Intangible assets 1 903 2 826 2 235
Loans receivable 1 631 0 0
Current assets 6 219 2 028 2 192
Inventory 2 650 339 1 450
Trade and other receivables 3 567 1 586 550
Cash and cash equivalents 2 103 192
Total assets 11 094 6 794 6 063
Equity and liabilities
Capital and reserves 255 1 465 (935)
Issued capital 14 681 13 596 13 599
Distributable reserve (14 426) (12 131) (14 534)
Non-current liabilities 1 562 2 145 2 067
Shareholder loans 1 279 1 796 1 589
Deferred tax 283 349 478
Current liabilities 9 277 3 184 4 931
Trade and other payables 5 829 1 578 2 035
Bank overdraft 844 759 0
Provisions 226 530 328
Current portion of borrowings 264 0 0
Loans payable 2 102 0 2 556
Taxation current 12 317 12
Total equity and liabilities 11 094 6 794 6 063
Net asset value per share (cents) 0.07 0.41 (0.26)
INCOME STATEMENT for the 6 months ended 30 June 2005
Unaudited Unaudited Audited
30 Jun 05 30 Jun 04 31 Dec 04
R `000 R `000 R `000
Gross revenue 8 693 3 101 6 886
Operating pro?t/(loss) 299 (291) (2 933)
Net ?nance costs (191) (32) 56
Pro?t/(loss) before taxation 108 (323) (2 990)
Taxation 0 (257) (397)
Pro?t/(loss) after taxation 108 (580) (2 592)
Shares in issue (`000) 369 000 358 000 360 000
Earnings per share (cents) 0.03 (0.16) (0.51)
Headline earnings per share (cents) 0.03 (0.16) (0.51)
STATEMENT OF CHANGES IN EQUITY for the 6 months ended 30 June 2005
Share Share Cumulative Total
capital premium loss R `000
R `000 R `000 R `000
Balance at 01 January 2004 1 13 595 (11 551) 2 045
Change in accounting policy 0 (390) (390)
Restated balance 1 13 595 11 941 1 655
Net loss for the year 0 (2 592) (2 952)
Issue of share capital 126 0 126
Reduction of share capital (122) 0 (122)
Balance at 01 January 2005 1 13 599 (14 534) (934)
Net pro?t for the 6 months 0 108 108
Issue of share capital 1 081 0 (1 081)
Balance at 30 June 2005 1 14 680 14 426 255
CASH FLOW STATEMENT for the 6 months ended 30 June 2005
Unaudited Unaudited Audited
30 Jun 05 30 Jun 04 31 Dec
R `000 R `000 04
R `000
Cash ?ows from operating activities (1 231) 804 (2 923)
Cash ?ows from investing activities (47) (266) (89)
Cash ?ows from ?nancing activities 243 285 3 076
Decrease in cash and cash equivalents (1 035) (785) 63
Cash and cash equivalents at beginning of the 192 129 128
period
Cash and cash equivalents at end of the period 843 (656) 192
Accounting Policies
The interim ?nancial statements for the six months ended 30 June 2005 (`the
period`) have been prepared in accordance with IFRS (International Financial
Reporting Standards) and in the manner required by the Companies Act of South
Africa. The accounting policies applied in the preparation of the interim
?nancial statements are consistent with those applied in the annual ?nancial
statements for the year ended 31 December 2004.
COMMENTS
Introduction
The directors are pleased to announce Beget`s results for the six months ended
30 June 2005 (`the period`), re?ecting a reversal of the loss incurred for the
previous ?nancial year ended 31 December 2004 and a return to pro?tability.
The period saw Beget achieve a number of signi?cant milestones, marking the
start of recovery for the group. The strengthened ?nancial position is
attributable to the successful global launch of the group`s proprietary GPRS-
enabled devices underpinned by a positive market acceptance of biometric
technology. This, together with Beget`s bolstered management team, has
positioned the group to continue its positive turnaround.
Group pro?le
Beget is an IT and telecoms group specialising in the development and
application of the GPRS technology platform, which enables the transmission of
data using the cellphone network at a fraction of the cost of ?xed and radio
telephony.
The group has four core focus areas:
MobileBIO - a biometric identity and access device that enables organisations to
monitor employee activity and organisational security remotely. MobileBIO is
currently the only device of its kind globally and has been successfully
launched in Europe and the Middle East, with plans in place for a launch to the
market locally, in Australia and in the Americas.
GPRS modems - facilitate the upgrade of transactional equipment, for instance
ATM and lottery machines. Leading South African banking group First National
Bank and the Swaziland national lottery are amongst the group`s modem clients.
SMSmalls - affordable bulk SMS messaging with clients including some of the
largest retail chains in the country.
Voice Over Internet Protocol (VOIP) - leveraging the Talknet Africa (Pty)
Limited (`Talknet Africa`) VOIP technology, Beget will offer SMMEs a business-
grade quality telecoms alternative to landline and cellphone telephony with
highly competitive call rates.
Investment
With effect from April 2005 Beget acquired 23% of the share capital of VOIP
specialist Talknet Africa for a nominal amount and in addition ?nanced its share
of operations with a loan of R1,6 million. The loan was funded by a cash issue
of 23,1 million Beget shares at 6,7 cents per share. With the global VOIP
industry currently estimated at
$1 trillion, Beget anticipates that the investment will deliver a healthy
return. Beget has also been appointed a channel partner for Talknet Africa to
distribute the VOIP products to its growing customer base.
Prospects
The positive response to Beget`s proprietary GPRS-enabled devices and the
recently concluded partnership with Talknet Africa have positioned the group to
capitalise on the anticipated growth in the IT and telecoms, speci?cally VOIP,
markets.
In light of these factors the directors anticipate continued growth for the
period ahead to year-end.
Post Balance Sheet Events
Option
During August 2005 Beacham Capital Limited exercised its option in respect of a
?rst tranche of 40 million shares in Beget at 3 cents per share.
Acquisition
As previously announced on 5 September 2005, Beget acquired from minorities the
outstanding 34% shareholding in subsidiary Beget Interactive (Pty) Limited and
intellectual property relating to certain of its products effective 1 August
2005, for a total consideration of R12,3 million. The immediate payment of R1,5
million was partially funded by a cash issue of 13,4 million shares at 9 cents
per share. The balance of the purchase price will be settled by the issue of 36
million shares at 20 cents per share and 12 successive monthly cash payments of
R302 500 each, commencing in December 2005.
The acquisition is in line with the strategy of re?ning the business processes
of the group to entrench its recovery.
Declaration of dividend
In line with the group policy no dividend has been declared for the period.
On behalf of the Board
28 September 2005
DB Harington
Chairman
AH Potgieter
CEO
Directors: DB Harington* (Chairman); AH Potgieter (CEO); JS Coetzee (Financial
Director); S Hirschowitz (Group Operations Director); CJ van Coller* *non-
executive
Registered Of?ce: Podium Building 2, cnr Lois & Atterbury Streets, Menlyn,
Pretoria
(PO Box 40788, Moreleta Park, 0044)
Transfer Secretaries: Ultra Registrars (Pty) Limited, 11 Diagonal Street,
Johannesburg, 2001
(PO Box 4844, Johannesburg, 2000)
Company Secretary: Secricover Network CC, 685B Verdi Street, Erasmuskloof, 0048
(PO Box 11699, Erasmuskloof, 0048)
Date: 28/09/2005 12:06:54 PM
Produced by the JSE SENS Department
