| Wed 15 Dec 2004, 11:51 | | Results for the 12 months ended 31 August 2004 |
|
Elexir - Reviewed Group Interim Results for the 12 months ended 31 August 2004
Elexir Technology Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration Number: 1998/004365/06)
(Share Code: ELX Isin Code: ZAE000016663)
(`Elexir` or `the Group`)
CONSOLIDATED INCOME STATEMENT
Twelve Months Six months Year ended
31 August 29 February 31 August
2004 2004 2003
Reviewed Reviewed Audited
R`000 R`000 R`000
REVENUE 17,441 12,532 40,895
Other income - 42 3,036
Operating expenses (14,648) (13,186) (41,704)
Operating profit /(loss) 2,793 (612) 2,227
Net interest paid (450) (273) (396)
- Interest received - 12 126
- Interest paid (450) (285) (522)
Profit /(loss) before taxation 2,343 (885) 1,831
Taxation - - 54
Profit /(loss) attributable to 2,343 (885) 1,885
shareholders
Reconciliation of headline earnings
Profit /(loss) for the period 2,343 (885) 1,885
Adjustments for headline loss (5,467) (37) (507)
- Profit on restructuring (5,467) (37) (7)
transaction
- Profit on revaluation of - - (500)
investment property
Headline(loss)/profit for the (3,124) (922) 1,378
period
Weighted average number of shares 223,128 143,128 143,128
(000)
Earnings/(loss) per share (cents) 1.05 (0.62) 1.32
Headline loss /(profit) per share (1.40) (0.64) 0.96
(cents)
Net asset value per share (cents) 2.53 0.20 0.49
CONSOLIDATED STATEMENT OF CHANGES
IN EQUITY
Balance at beginning of the period 696 696 1,247
Revaluation of land and buildings - - -
Revaluation of computer equipment (1,874) (937) (1,874)
Deferred taxation on revaluation 1,687 1,406 (562)
Issued Share Capital 800 - -
Share Premium 2,000 - -
Net profit for the period 2,343 (885) 1,885
Balance at end of the period 5,652 280 696
CONSOLIDATED BALANCE SHEET
As at As at As at
31 August 29 February 31 August
2004 2004 2003
Reviewed Reviewed Audited
R`000 R`000 R`000
ASSETS
Non-current assets
Property, plant and equipment 5,970 6,872 8,079
Intangible assets 14 9 8
Deferred taxation 1,927 1,639 233
Current assets 3,109 6,458 8,357
- Inventory 1,255 2,139 1,755
- Accounts receivable 1,722 3,827 5,215
- Bank and cash 132 492 1,388
Total assets 11,020 14,978 16,677
EQUITY AND LIABILITIES
Capital and reserves 5,652 280 696
- Issued share capital 2,231 1,431 1,431
- Share premium 93,912 91,912 91,912
- Non-distributable reserves 1,312 1,968 1,500
- Accumulated losses (91,803) (95,031) (94,147)
Non-current liabilities
Long-term borrowings 1,717 6,576 2,326
Current liabilities 3,651 8,122 13,655
- Accounts payable 2,550 3,494 11,535
- Taxation - - -
- Bank overdraft - - -
- Short term portion of long-term 1,101 4,628 2,120
liabilities
Total equity and liabilities 11,020 14,978 16,677
CONSOLIDATED CASH FLOW STATEMENT
Cash flow from operating activities (2,566) (7,831) 785
Cash flow from investing activities 138 176 (434)
Cash flow from financing activities 1,172 6,759 277
Net (decrease)/ increase in cash (1,256) (896) 628
and cash equivalents
Cash and cash equivalents at 1,388 1,388 760
beginning of the period
Cash and cash equivalents at end of
the period 132 492 1,388
Comments
Introduction
The Group changed its financial year end to February to bring it in line with
the Group`s business cycle. The reviewed results for the twelve months ended 31
August 2004 incorporate the restructuring transaction as announced on 7 October
2004, with effect from 26 July 2004. Although the restructuring transaction has
not been formally approved by the shareholders in General Meeting, the majority
of shareholders have given irrevocable undertakings to vote in favour of the
restructuring transaction and the relevant issue of new shares. A circular to
Elexir shareholders containing details of the restructuring transaction will,
subject to the approval of the JSE Securities Exchange South Africa, be mailed
to Elexir shareholders in January 2005.
Basis of preparation
The Group`s interim financial statements are prepared in accordance with South
African statements of Generally Accepted Accounting Practice and are based on
appropriate accounting policies which are consistent with those applied in
previous years.
Financial overview
The Group realised a profit attributable to shareholders of R2,3m for the twelve
month interim period ended 31 August 2004, mainly due to the restructuring
transaction. The significant levels of debt within the Group were reduced with
the implementation of the restructuring transaction, thereby substantially
improving the Elexir balance sheet.
Prospects
Trading conditions remain challenging but management is implementing a
repositioning strategy for the Group that if successful, will improve
profitability and unlock shareholder value. As the liabilities of the Group were
substantially reduced with the implementation of the restructuring transaction,
as announced on 7 October 2004, the business can now focus on securing new
business in order to operate profitable in the future.
As announced on 7 October 2004, the Group has entered into an agreement for the
sale of its property previously occupied by Elexir. Transfer of ownership of the
property is expected to be finalised in January 2005. The excess funds generated
through the sale of the property will be utilised as working capital.
Dividend
The directors do not recommend the payment of a dividend.
Auditors Opinion
The interim results have been reviewed by the auditors, Russell Bedford Southern
Africa (Jhb) Inc. The auditor`s report is available for inspection at the
registered office.
For and behalf of the Board
TM SOKUTU * Chairman
JA CASEY Chief Executive Officer
15-Dec-2004
Directors: TM Sokutu* (Chairman), JA Casey (Chief Executive Officer),
LD Setshedi (Chief Operating Officer), AP Volschenk (Director and Company
Secretary) *Non-executive
Registered office: 156 Kyalami Boulevard, Kyalami Business Park, Kyalami, 1685.
(PO Box 1819, Fourways, 2055)
Auditors: Russell Bedford Southern Africa (Jhb) Inc. (Registration number
2000/011089/21), Chartered Accountants (SA), Registered Accountants and Auditors
(PO Box 1757, Northcliff, 2115)
Sponsor: Exchange Sponsors, 39 First Road, Hyde Park, 2196 (PO Box 411216,
Craighall, 2124)
Transfer secretaries: Computershare Investor Services 2004 (Pty) Limited, 70
Marshall Street, Johannesburg 2001 (PO Box 61051, Marshalltown, 2107)
Website: www.elexir.co.za
