| Wed 30 Nov 2005, 16:45 | | results for the six months ended 31 August 2005 |
|
Synergy - Reviewed interim results for the six months ended 31 August 2005
Synergy Holdings Limited
Registration number 1995/006315/06
Share code: SNG & ISIN: ZAE000017760
("Synergy" or "the Group")
REVIEWED INTERIM RESULTS
for the six months ended 31 August 2005
SUMMARISED INCOME STATEMENT
Six months Six months 12 months
ended ended ended
31 August 31 August 28 February
2005 2004 2005
(Reviewed) (Reviewed) (Audited)
R"000 R"000 R"000
Gross revenue 10 465 10 357 19 158
Net operating (loss)/proft (25) 591 286
IFRS adjustment, fair
value adjustment
on investment properties 820 - -
Taxation (119) (212) (87)
Net profit after taxation 676 379 199
Number of shares in issue (`000) 52 473 52 473 52 473
Earnings per share (cents) 1,29 0,72 0,38
Headline (loss)/earnings
per share (cents) (0,05) 0,72 0,38
SUMMMARISED BALANCE SHEET
31 August 31 August 28 February
2005 2004 2005
(Reviewed) (Reviewed) (Audited)
R"000 R"000 R"000
ASSETS
Non-current assets 2 596 2 253 1 779
Fixed assets 732 1 612 1 592
Investments 1 864 641 187
Current assets 4 487 5 631 5 101
Accounts receivable 3 035 2 902 2 688
Inventories 12 162 10
Taxation 44 - 30
Cash on deposit and bank balances 1 396 2 567 2 372
Total assets 7 083 7 884 6 880
EQUITY AND LIABILITIES
Capital and reserves 5 597 5 100 4 921
Issued capital (including
share premium) 3 593 3 593 3 593
Accumulated profit 2 004 1 507 1 328
Non-current liabilities
Long-term liabilities 238 411 165
Current liabilities 1 248 2 373 1 794
Accounts payable 1 210 2 373 1 794
Bank overdraft 38 - -
7 083 7 884 6 880
Number of shares in issue ("000) 52 473 52 473 52 473
Net asset value per share (cents) 10,67 9,72 9,38
Net tangible value per share (cents) 10,67 9,72 9,38
CASH FLOW STATEMENT
Six months Six months 12 months
ended ended ended
31 August 31 August 28 February
2005 2004 2005
(Reviewed) (Reviewed) (Audited)
R"000 R"000 R"000
Net cash from operating activities (280) (218) 236
Net cash from investing activities (224) (665) (336)
Net cash from financing activities (510) (10) (987)
Net decrease in cash (1 014) (893) (1 087)
Cash at beginning of period 2 372 3 459 3 459
Cash at end of period 1 358 2 566 2 372
STATEMENT OF CHANGES IN EQUITY
Opening balance 4 921 4 882 4 882
Net income for period 676 379 199
Dividends paid - (160) (160)
Closing balance 5 597 5 101 4 921
RECONCILIATION BETWEEN EARNINGS
AND HEADLINE EARNINGS:
Per the financial statements 676 379 199
Fair value adjustment (820) - -
Reversal of deferred taxation on the
IFRS adjustment 119 - -
Headline (loss)/earnings (25) 379 199
Number of shares in issue 52 473 52 473 52 473
Earnings per share (cents) 1,29 0,72 0,38
Headline (loss)/earnings
per share (cents) (0,05) 0,72 0,38
COMMENTARY
Synergy, through its wholly owned subsidiary, Prime Support (Proprietary)
Limited ("Prime Support"), focuses on providing Accpac ERP Software solutions
around software sales, implementation, customisation and associated networking
support. Shareholders should however be aware that this will be the last
reporting period in which Prime Support is consolidated due to the imminent
disposal of the subsidiary and related properties as set out in the announcement
dated 3 August 2005 in terms of which a consortium led by the icapital Growth
Fund I has acquired control of Synergy. Once the disposals have been approved by
shareholders, Synergy will be classified as a "cash company" by the JSE.
It is the intention of the consortium to use its considerable sector specific
knowledge and dealflow to acquire suitable assets in the information technology
sector that meet the requirements for listing on the JSE, and which will be
subject to a pre listing statement being published on any acquisition.
Accounting policies
These reviewed interim results of the Group comply in all material respects with
South African Statements of Generally Accepted Accounting Practice and are
consistent with those applied in the audited financial statements to 28 February
2005. IFRS has also been applied to the results for the six months ended 31
August 2005 but not to any comparative figures.
The only adjustment to these interim results brought about by applying IFRS is
the revaluation of the investment properties of R820 000 and the related
deferred tax of R119 000.
Auditors" review opinion
Synergy"s external auditors, Van Sitterts, Chartered Accountants, have reviewed
these results. Their unqualified review opinion is available for inspection at
Synergy"s registered office.
Financial comment
This will be the last financial period that Synergy will be reporting on with
the consolidated results of Prime Support, as it is anticipated that this
subsidiary will be disposed of following a vote of shareholders in a general
meeting to be held on Thursday 12 January 2006.
This financial commentary includes the results of Prime Support to 31 August
2005.
The Cape Town branch is not yet in the black but continues to gain market share
at a steady rate. The directors review the performance of this branch on a
monthly basis and balance the growth with constant cost control measures.
The staff complement has recently been restructured and the profitability of the
branch is expected to improve next year.
A presence has been established in the North West Province and all costs
relating to this have been expensed. We have attained a fair number of good
quality clients and this branch will contribute positively to the 2006/2007
financial year.
The operational costs related to the Johannesburg office are being reduced
through a restructuring plan that is currently in process.
Disposal of Prime Support, disposal of Synergy"s properties change of control
and offer to shareholders
The circular to shareholders regarding the disposal of Prime Support and
Synergy"s properties and the change of control to the icapital Consortium
including an offer of 8 cents to shareholders, will be posted within ten days of
this announcement.
For and on behalf of the Board
Ashley Regenass
CEO - Synergy
30 November 2005
Sponsor
River Group
Date: 30/11/2005 04:45:30 PM Produced by the JSE SENS Department
