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Amecor - Interim Results For The Six Months Ended 30 September 2005
AMALGAMATED ELECTRONIC CORPORATION LIMITED
(Formerly Tisec Limited)
(Incorporated in the Republic of South Africa)
(Registration number 1997/010036/06)
Share code: AER & ISIN: ZAE000070587
("Amecor" or "the group")
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2005
SUMMARISED GROUP INCOME STATEMENT
Six months Six months Twelve months
ended ended ended
30 September 30 September 31 March
2005 2004 2005
(Unaudited) (Unaudited) (Audited)
R000"s R000"s R000"s
Turnover 15 380 - 103
Profit/(loss) before
interest, taxes
and depreciation (EBITD) 8 663 (326) (867)
Net interest received 25 - (3)
Depreciation (362) - -
Operating profit/(loss) 8 326 (326) (870)
Exceptional items - - 642
Profit/(loss) before
taxation 8 326 (326) (228)
Taxation (2 225) - -
Share of associated company
loss - (88) (88)
Profit/(loss) attributable
to shareholders 6 101 (414) (316)
Headline earnings/(loss)
per share (cents) 9,1 (0,3) (0,7)
Profit/(loss) per share
(cents) 9,1 (0,3) (0,2)
Shares in issue (000"s) 67 332 133 315 133 315
Shares in issue - weighted
average
(000"s) 67 332 133 315 133 315
Headline earnings/(loss)
reconciliation
Profit/(loss) attributable
to
shareholders 6 101 (414) (316)
Earnings on sale of
associate - - (1 642)
Loss on write-down of
investment - - 1 000
Headline profit/(loss) 6 101 (414) (958)
SUMMARISED GROUP BALANCE SHEET
30 September 30 September 31 March
2005 2004 2005
(Unaudited) (Unaudited) (Audited)
R000"s R000"s R000"s
Non-current assets
Property, plant and equipment 3 982 - -
Patents, trademarks and
goodwill 42 491 - -
Investments - 1 898 -
Current assets 13 658 387 415
Cash resources 7 162 - -
Other current assets 6 496 387 415
Total assets 60 131 2 285 415
Capital and reserves
Shareholders" funds 49 222 95 95
Non-current liabilities
Long-term liabilities 3 685 2 034 72
Current liabilities 7 224 156 248
Accounts payable 7 224 4 236
Bank overdraft - 152 12
Total equity and liabilities 60 131 2 285 415
Tangible net asset value
per share (cents) 10,0 0,07 0,07
Net asset value per share
(cents) 73,1 0,07 0,07
SUMMARISED GROUP CASH FLOW STATEMENT
Six months Six months Twelve months
ended ended ended
30 September 30 September 31 March
2005 2004 2005
(Unaudited) (Unaudited) (Audited)
R000"s R000"s R000"s
Cash generated in/(utilised
by) operating activities 6 429 (551) (979)
Cash utilised by investing
activities (45 415) - 2 628
Cash retained by financing
activities 44 902 360 (1 700)
Net movements in cash
balances 5 916 (191) (51)
Cash at beginning of period (12) 39 39
Cash acquired 1 258 - -
Cash at end of period 7 162 (152) (12)
STATEMENT OF CHANGES IN SHAREHOLDERS" EQUITY
Issued Share Distributable Total
capital premium reserve
R000"s R000"s R000"s R000"s
Balance at 1 April 2005 13 314 14 533 (27 752) 95
Transfer of convertible
loan equity - (1 103) - (1 103)
Restructure of share
capital (13 181) 13 181 - -
Issue of share capital 540 44 460 - 45 000
Share issue expenses - (871) - (871)
Profit attributable to
shareholders - - 6 101 6 101
Balance at 30 September
2005 673 70 200 (21 651) 49 222
NOTES TO THE FINANCIAL RESULTS
1. BASIS OF PREPARATION
Amecor has adopted International Financial Reporting Standards ("IFRS") for the
year ending 31 March 2006. The interim results have been prepared and presented
in accordance with IAS 34 - Interim financial reporting. The financial
statements for the year ending 31 March 2006 will be the group"s first
consolidated IFRS-compliant financial statements and hence IFRS 1 - First time
adoption of IFRS, has been applied in preparing this interim report. The
accounting policies are consistent with those applied in the comparative
financial period, except for those which have arisen due to the transition to
IFRS.
2. SIGNIFICANT CHANGES TO THE GROUP"S ACCOUNTING POLICIES AS A RESULT OF THE
ADOPTION OF IFRS AND APPLICATION OF IAS 17
The conversion to IFRS did not result in any material adjustments to the equity
or income.
2.1 Goodwill
All business combinations are accounted for by applying the "purchase method".
Goodwill represents amounts arising on acquisition of subsidiaries and
associates. In respect of business combinations that have occurred since IFRS
transition date, 1 April 2004, goodwill represents the difference between the
cost of the acquisition and the fair value of the net identifiable assets
acquired.
The group has made an election in terms of IFRS 1 that IFRS 3 will only be
applied from 1 April 2004.
In terms of IFRS 3 - Business combinations, goodwill is no longer amortised but
is subject to annual impairment testing.
2.2 Share-based payment transactions
The fair value of share options to be granted to employees will be recognized as
an employee expense with a corresponding increase in equity. The fair value is
measured at grant date and expensed over the period during which the employee
becomes unconditionally entitled to the equity instruments (the vesting period).
The fair value of the instruments granted will be measured using the Black
Scholes valuation technique, taking into account the terms and conditions upon
which the instruments are granted. The fair value of share-based payments was
not recognised under the group"s previous accounting policies.
COMMENTARY
Introduction
Amecor and its subsidiaries" principal businesses consist of the supply of the
following products and services:
Digital long range radio transmitters;
Computerised base stations, transmitters and intelligent data repeaters;
High speed data radio networks;
Guard monitoring units;
Radio panic systems; and
The ownership and operation of licensed data radio networks throughout South
Africa.
Reviewed results
The interim results presented above have been reviewed but not audited, by
Moores Rowland, the group"s auditors. Their limited review report is available
for inspection at the group"s registered office during normal office hours.
Financial and operational review
The board is pleased to report headline earnings for the six months ended 30
September 2005 of 9,1 cents per share.
The turnover of R15 380 000 was in line with expectations. Growth was
attributable to customer and volume throughput increases and increased
manufacturing efficiencies.
Cash generated by operations totalled R6,4 million.
The weighted average number of shares is lower than that in issue due to the
treasury shares held by the group being treated as set-off for this calculation.
Comparative figures
The FSK Electronics group was acquired by Amecor with effect from 1 April 2005
as set out in the published announcement to shareholders of 10 August 2005.
Consequently no comment is made on the comparative figures for the earlier
accounting periods to 30 September 2004 and 31 March 2005 reported herein as
such comparatives would be meaningless.
Capital commitments
The group has committed to product development costs in the sum of R500 000
which will be incurred over the second half of financial 2006. This capital
investment will be funded out of internal cash flows.
Prospects
Traditionally demand for the group"s products and services increases in the
second half of the financial year. Expected buoyant trading conditions will
contribute to an increase in headline earnings for the second half of the year
which, in the absence of unforeseen circumstances should match or surpass the
earnings of 9,1 cents per share achieved in the first half of financial 2006.
Dividends
It is the group"s policy to pay a single dividend annually and to retain 3 times
dividend cover. Accordingly, no interim dividend has been declared.
Subsequent event
Our subsidiary company, FSK Electronics SA (Pty) Ltd, has entered into a
distribution agreement with Elvey, a subsidiary of Hudaco Limited. With effect
from 6 October 2005 Elvey will assist with marketing and distribution of the FSK
products.
On behalf of the board
P van Niekerk D Alexander
Chairman Chief Executive Director
Johannesburg
31 October 2005
Directors
P van Niekerk*, DH Alexander, R van der Merwe, HS Courtney, KA Colley,
*non-executive
Transfer secretaries Registered office
Ultra Registrars (Pty) Limited 2nd Floor, Moores Rowland House
11 Diagonal Street 5 St Davids Place, Parktown, 2193
Johannesburg, 2001 (PO Box 6697, Johannesburg, 2000)
(PO Box 4844, Johannesburg, 2000)
FSK ELECTRONICS
SABRE RADIO NETWORKS
SPONSOR
IMARA CORPORATE FINANCE SOUTH AFRICA (PTY) LTD
31 October 2005
Date: 31/10/2005 01:50:18 PM Produced by the JSE SENS Department
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