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Nova Education And Technology Holdings Limited - Reviewed Interim Results For
Release Date: 01/12/2003 17:31:01 Code(s): ETH
NOVA EDUCATION AND TECHNOLOGY HOLDINGS LIMITED - REVIEWED INTERIM RESULTS FOR
THE SIX MONTHS ENDED 31 AUGUST 2003 AND FURTHER CAUTIONARY
NOVA EDUCATION AND TECHNOLOGY HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1998/006957/06)
Share code: ETH
ISIN: ZAE000033270
("Edutech" or " the company")
REVIEWED INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 AUGUST 2003 AND FURTHER
CAUTIONARY
CONSOLIDATED INCOME STATEMENT FOR THE PERIOD ENDED 31 AUGUST 2003
Reviewed Reviewed Audited
six months six months 12 months
Aug 2003 Aug 2002 Feb 2003
R R R
Revenue 2 876 738 2 306 516 5 475 935
Operating profit/(loss) (2 277 020) 1 119 084 609 961
Net interest (1 208 767) (1 181 512) (2 463 473)
Operating profit before taxation (3 485 787) (62 428) (1 853 512)
Taxation (8 291 642) 108 331 8 267 685
Net profit/(loss) after taxation (11 777 429) 45 903 6 414 173
Provision for irrecoverable
portion of loan to subsidiaries (1 850 441) - -
Amortisation of intangible assets (22 927) - (43 493)
Net profit/(loss) for the period (13 650 797) 45 903 6 370 680
Headline earnings per share (cents) (8,58) 0,03 4,67
Earnings/(loss) per share (cents) (9,95) 0,03 4,64
Number of shares 137 222 200 137 222 200 137 222 200
Reconciliation of headline earnings
Net profit per the financial
statements (13 650 797) 45 903 6 370 679
Adjusted for:
Amortisation of intangible assets 22 927 - 43 493
Provision for irrecoverable portion
of loan to subsidiaries 1 850 441 - -
Headline earnings (11 777 429) 45 903 6 414 172
Headline earnings per share (cents) (8,58) 0,03 4,67
CONSOLIDATED CASH FLOW STATEMENT FOR THE PERIOD ENDED 31 AUGUST 2003
Reviewed Reviewed Audited
six months six months 12 months
Aug 2003 Aug 2002 Feb 2003
R R R
Cash flows from operating activities 2 505 998 4 056 015 3 739 179
Cash flows from investing activities (2 170 823) (520 665) (924 834)
Cash flows from financing activities 627 916 (3 558 755) (3 881 852)
Net decrease in cash and cash
equivalents for period 963 091 (23 405) (1 067 507)
Cash and cash equivalents at
beginning of period (89 306) 958 701 978 201
Previously published (89 306) 958 701 958 701
Adjustment - change in accounting
policy - - 19 500
Cash and cash equivalents at end
of period 873 785 935 296 (89 306)
CONSOLIDATED BALANCE SHEET AS AT 31 AUGUST 2003
Reviewed Reviewed Audited
six months six months 12 months
Aug 2003 Aug 2002 Feb 2003
R R R
ASSETS
Non-current assets 12 216 685 15 309 353 21 849 776
Property, plant and equipment 135 129 70 140 103 337
Long-term trade receivables 10 519 378 14 249 376 12 205 372
Loan receivable 1 153 592 671 788 196 800
Loan to joint venture 245 736 - 866 847
Deferred tax - 132 289 8 291 643
Intangible assets 162 850 185 760 185 777
Current assets 10 687 875 9 803 455 12 396 872
Trade receivables and
other debtors 7 196 807 8 868 159 10 740 172
Cash and cash equivalents 1 684 509 935 296 578 819
Inventory 1 806 559 - 1 077 881
22 904 560 25 112 808 34 246 648
EQUITY AND LIABILITIES
Capital and reserves 2 723 608 10 353 705 16 374 405
Share capital 13 722 13 722 13 722
Share premium 40 875 874 40 875 874 40 875 874
Accumulated loss (38 165 988) (30 535 891)(24 515 191)
Non-current liabilities 17 825 592 14 187 909 15 847 295
Interest bearing loans 15 203 759 13 231 961 14 646 907
Non-interest bearing loans 1 204 920 955 948 1 200 388
Loans from other investors to
joint venture 1 416 913 - -
Current liabilities 2 355 360 571 194 2 024 948
Accounts payable 1 487 198 571 194 1 258 823
Provisions 57 438 - 98 000
Bank overdraft 810 724 - 668 125
22 904 560 25 112 808 34 246 648
Net asset value per share (cents) 1,98 7,55 11,93
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE PERIOD ENDED 31 AUGUST 2003
Share Share Accumulated
Capital premium loss Total
R R R R
31 August 2003
Balance beginning of period 13 722 40 875 874 (24 515 191) 16 374 405
Net loss for period - - (13 650 797)(13 650 797)
Balance end of period 13 722 40 875 874 (38 165 988) 2 723 608
28 February 2003
Balance beginning of year 13 722 40 875 874 (30 885 871) 10 003 725
Balance as previously
published 13 722 40 875 874 (30 581 794) 10 307 802
Adjustment - change in
accounting policy - - (304 077) (304 077)
Net profit for year - - 6 370 680 6 370 680
Balance end of year 13 722 40 875 874 (24 515 191) 16 374 405
1. Review Of Operations
The operational and net profit of Edutech has decreased as a result of:
* further investments which have been made in Bateleur Books (Pty) Ltd
with a view to submitting textbooks to the various provincial
departments of education. The preparation of textbooks is extremely
capital intensive and there is no other alternative but to make such
an investment and expense it through the income statement in the year
incurred;
* a review of the accounting estimate has resulted in the reversal of
the provision for deferred taxation as published in the audited
results on 28 February 2003; and
* a provision for bad debt with regard to shareholder loans to
subsidiaries.
2. Prospects And Further Cautionary Announcement
Shareholders are referred to the cautionary announcement dated 22 October
2003 where it was stated that the company is in negotiations, which, if
successfully concluded, may have a material effect on the company and the
share price of the company"s securities. Accordingly shareholders are
advised to exercise caution when dealing in the company"s shares until a
further announcement is made.
3. Compliance
These interim financial statements have been prepared in accordance with
South African Statements of Generally Accepted Accounting Practice, the
Listings Requirements of the JSE Securities Exchange South Africa and
Schedule 4 of the Companies Act. The accounting policies used are
consistent with those for the financial year ended on 28 February 2003.
4. Review Of Results By Auditors
The company"s auditors, Henk Prinsloo & Partners, have reviewed the
interim report. A copy of their unqualified review report is available for
inspection at the registered office of the company.
For and on behalf of the Board
J C Klopper
CEO
28 November 2003
Directors:
P E Swart (Chairman), J C Klopper (Managing Director), E H Davies,
A Lianos*, L M Maree*, C J H van Wyk*, L C Becker*, L H Swanepoel*
(*Non-executive)
Registered office:
278 Serene Street
Garsfontein
Pretoria, 0042
Sponsor:
RiverGroup
