| Thu 15 Dec 2005, 9:00 | | Zaptronix Limited - Abridged audited financial sta |
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Zaptronix Limited - Abridged audited financial statements for the sixteen months
ended 31 august 2005
Zaptronix Limited
(Incorporated in the Republic of South Africa)
(Registration Number: 1997/014928/06)
Share code: ZPT ISIN: ZAE000070934
("Zaptronix" or "the company" or "the group")
ABRIDGED AUDITED FINANCIAL STATEMENTS FOR THE SIXTEEN MONTHS ENDED 31 AUGUST
2005
BALANCE SHEETS
(R"000) GROUP COMPANY
Audited Audited Audited Audited
At 31 At 30 At 31 At 30
August 2005 April August 2005 April
2004 2004
ASSETS
Non-current assets 7 787 1 084 837 1 074
Fixed assets and intangibles 7 493 670 432 669
Investment in associate 294 415 405 405
Current assets 4 813 706 868 610
Accounts receivable and 4 532 494 775 450
inventory
Cash and cash equivalents 281 212 93 160
Total assets 12 600 1 790 1 705 1 684
EQUITY AND LIABILITIES
Capital and reserves 6 624 134 229 114
Share capital and premium 29 651 26 749 26 749 26 749
Non-distributable reserve - 168 -
Accumulated losses (23 027) (26 783) (26 520) (26 635)
Non-current liabilities 1 951 375 753 375
Amount owing to group - 375 753 375
companies
Borrowings 1 951 - - -
Current liabilities 4 025 1 281 723 1 195
Accounts payable and 4 025 1 281 723 1 195
provisions
Total equity and liabilities 12 600 1 790 1 705 1 684
Net asset value per share 1,75 0,18
(cents)
Net tangible asset value per 0,55 (0,50)
share (cents)
Weighted average number of 379 319 72 402
ordinary shares (`000)
INCOME STATEMENTS
(R"000) GROUP COMPANY
Audited Audited Audited Audited
16 Months 12 Months 16 Months 12 Months
ended ended ended ended
31 August 30 April 31 August 30 April
2005 2004 2005 2004
Revenue 28 292 3 164 4 470 3 164
Cost of sales 11 518 1 692 2 224 1 692
Gross profit 16 774 1 472 2 246 1 472
Other income 2 786 81 1 81
Operating costs 15 190 3 943 2 130 4 212
Operating profit/(loss) 4 370 (2 390) 119 (2 659)
Income/(loss) from (120) (236) - -
associates
Interest received 23 - - -
Finance costs (299) - (4) -
Net income/(loss) before 3 974 (2 626) 115 (2 659)
taxation
Taxation 218 (428) - (428)
Net income/(loss) after 3 756 (2 198) 115 (2 231)
taxation
Reconciliation of earnings
and headline earnings
Earnings/(loss) per share 0,99 (3,04)
(cents)
Derecognition of investment (0,04) -
(cents)
Negative goodwill with (0,69) -
acquisition (cents)
Loss on assets scrapped - 0,12
(cents)
Impairment of investment - 0,39
(cents)
Headline earnings/(loss) per 0,26 (2,53)
share (cents)
Weighted average number of 379 319 72 402
ordinary shares (`000)
STATEMENTS OF CHANGES IN
EQUITY
(R"000) GROUP COMPANY
Audited Audited Audited Audited
16 Months 12 Months 16 Months 12 Months
ended ended ended ended
31 August 30 April 31 August 30 April
2005 2004 2005 2004
Balance at the beginning of 134 2 332 114 2 345
the period
Net profit/(loss) for the 3 757 (2 198) 115 (2 231)
period
Issue of share capital 2 902 - - -
Deregistration of subsidiary (168) - - -
Balance at the end of the 6 625 134 229 114
period
CASH FLOW STATEMENTS
(R"000) GROUP COMPANY
Audited Audited Audited Audited
16 Months 12 Months 16 Months 12 Months
ended ended ended ended
31 August 30 April 31 August 30 April
2005 2004 2005 2004
Cash flows from operating 2 943 (321) (397) (325)
activities
Cash generated/(utilised) in 3 219 (318) (394) (322)
operating activities
Net interest paid (276) - (3) -
Taxation - (3) - (3)
Cash flows from investing (5 049) (23) (47) (23)
activities
Expenditure to maintain
operating capacity
Plant and equipment acquired (1 208) (23) (47) (23)
Intangible assets acquired (3 126) - - -
Expenditure for expansion
Subsidiaries acquired (715) - - -
Cash flows from financing
activities
Loans raised 2 175 375 378 375
Increase/(decrease) in cash 69 31 (66) 27
and cash equivalents
Cash and cash equivalents at 212 181 160 133
beginning of year
Cash and cash equivalents at 281 212 94 160
the end of the year
Operational review
The integration of the DuO and Zaptronix businesses has been completed following
the acquisition of DuO Solutions Provider Ltd. The transformation of the
business channels into that of a risk management services group is further well
advanced. The existing channels of Mobile Logistics Management services (MLMS)
and Energy management services (EMS) that constitute the current risk management
services gear off the same research and development and bureau infrastructure.
Financial results
Shareholders should take note that the reporting period is for the 16 months
ending 31 August 2005 since the financial year of the company was changed to
this date. Care should therefore be taken when doing comparisons.
The board is proud to present the maiden results for the 16 months period ending
31st August 2005 for Zaptronix, after the acquisition of DuO Solutions Provider
("DuO"). DuO is a Mobile Logistics Management business build on the back of
vehicle tracking technology. The group results reflect the impact of the
investment in new technology on the DuO side. Further investments took place in
suitable staff to transform the business into its new vision of a risk
management services business on the back of its technology. Although most of the
revenue for the company comes from the sale of electricity metering hardware the
company is well advanced in growing it"s Energy Management Services (EMS)
business. The bulk of the group revenue for the period comes from the DuO
business.
The financial results of the company and the group for the 16 months under
review are reflected above. The impact on the trading results of the group, have
shown a substantial improvement in profitability during the financial period
2005 over the 2004 financial year. Attributable earnings of 0.99 cents per share
("cps") and a headline profit of 0.26 cps were recorded, compared to an
attributable loss of 3.0 cps and a headline loss of 2.5 cps in 2004. The above
is based on a weighted number of ordinary shares in issue of 2005: 379 318 930
(2004: 72 402 263). The carrying values of the company"s subsidiaries, which are
dormant, are reflected at nominal value.
The growth in cash flows from operating activities gives the best indication of
the impact of the DuO acquisition by the group, 2005: R2,943 million (2004:
(R0,321 million)). In additions the cash flow also identifies the aggressive
investment in the fleet management technology platform for the period amounting
to R3,126 million. This new technology is presently in the rollout phase and is
attracting significant interest from our current and new customer base. The new
technology will positively impact on the required communications cost and
improve efficiencies and productivity clients businesses.
Subsequent events
The shareholders approved the DuO transaction on the 6th September 2005. The
company was trading under a cautionary during the period as published on the 24
October 2005.
The acquisition of the subsidiary DuO was accounted for as from the date when
control was taken of the assets and liabilities of the subsidiary in the group
financial statements, and accordingly the changes in the share capital of the
company as well as the issue of the shares in settlement of the acquisition was
accounted for on the same date, although this transaction was only approved by
shareholders after the end of the financial year. In the financial statements
of the company, this transaction will only be accounted for on the date of
approval of the transaction by the shareholders.
Audit opinion and accounting policies
The accounting policies of the company comply in all material respects with
South African Statements of Generally Accepted Accounting Practice and schedule
4 of the Companies Act of 1973. These policies are consistent with those applied
during the previous financial year.
The financial statements of the company have been audited by Compendium
(Pretoria) Incorporated. Their unqualified report is available for inspection at
the company"s registered office.
Dividend
No dividend has been recommended or declared for the period, since the group is
on an aggressive growth path and requires the resources to achieve its targets.
Further Cautionary
Shareholders are referred to the SENS announcement dated 21 October 2005 whereby
the directors advised that the Company entered into negotiations which, when
successfully concluded, may have a material effect on the price of the Company"s
securities. Shareholders are further advised that the transaction agreements
are in final stages and management are confident that a detailed announcement
will be made in the near future.
Accordingly, shareholders are advised to exercise caution when dealing in the
Company"s securities until a full announcement is made with regards to the
negotiations
For and on behalf of the board
JP Nel - Chief Executive Officer
Midrand, 14 December 2005
Directors: JP Nel (CEO), A De Canio, J Stratenwerth, K Gribnitz* (*Chairman)
Corporate Advisers Sponsor
Radagast Capital (Pty) Ltd Sasfin Capital
A division of Sasfin Bank Ltd
Transfer secretaries Registered address
Computershare Investor Solutions House, Gazelle Close
Services 2004 (Pty) Ltd Corporate Park, Midrand
Date: 15/12/2005 08:01:56 AM Produced by the JSE SENS Department
