| Mon 4 Sep 2006, 11:13 | | ISA- Unaudited results: six months ended 31 August |
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ISA
ISA
ISA- Unaudited results: six months ended 31 August 2006 and dividend declaration
ISA Holdings Limited (Formerly Y3K Group Limited)
("ISA" or "the company")
(Registration number: 1998/009608/06)
JSE share code: ISA (formerly YHK)
ISIN code: ZAE000067344 (formerly ZAE000017208)
UNAUDITED RESULTS FOR THE SIX MONTHS ENDED 31 AUGUST 2006 AND DIVIDEND
DECLARATION
31-Aug-06 31-Aug-05 28-Feb-06
6 months 6 months year
ended ended ended
Unaudited Unaudited Audited
R"000s R"000s R"000s
GROUP INCOME STATEMENT
Revenue 21,874 18,277 37,935
Cost of goods sold (11,962) (10,421) (21,450)
Gross profit 9,912 7,856 16,485
Other income 367 212 153
Selling and marketing costs (2,113) (2,611) (4,834)
Administrative expenses (2,296) (2,680) (4,864)
Operating profit 5,870 2,777 6,940
Finance income - net 374 181 472
Share of profit from associate 0 0 37
Profit before tax 6,244 2,958 7,449
Tax (expense)/reversal (963) (325) 30
Profit attributable to
Shareholders 5,281 2,633 7,479
GROUP BALANCE SHEET
ASSETS
Non-current assets 8,641 6,130 8,589
- Tangible assets 546 344 494
- Intangible assets 6,367 4,863 6,367
- Share incentive trust 953 923 953
- Deferred tax asset 775 0 775
Current assets 41,494 14,648 20,519
- Cash and cash equivalents 34,245 7,636 11,899
- Inventories 46 41 46
- Trade and other receivables 7,203 6,971 8,574
Total assets 50,135 20,778 29,108
EQUITY
Capital and reserves 40,619 14,492 21,158
- Share capital 1,926 1,300 1,300
- Share premium 35,645 14,387 14,387
- Non-distributable reserve 3,021 3,021 3,021
- Retained earnings/(loss) 27 (4,216) 2,450
LIABILITIES
Current liabilities 9,516 6,286 7,950
- Trade and other payables 9,152 6,286 7,649
- Provisions 364 0 301
Total equity and liabilities 50,135 20,778 29,108
GROUP CASH FLOW STATEMENT
Cash flows from operating
Activities 7,934 2,980 6,452
Cash flows from investing activities 232 104 570
Cash flows from financing activities14,180 (380) (55)
Net increase in cash & cash
equivalents 22,346 2,704 6,967
Cash and cash equivalents at
beginning of the period 11,899 4,932 4,932
Cash and cash equivalents at end
of the period 34,245 7,636 11,899
GROUP STATEMENT OF CHANGES IN EQUITY
Share Capital and reserves
Balance at beginning of the period 21,158 14,459 16,279
Shares issued during the period at
par value 626 0 0
Share premium on shares issued 21,258 0 0
Net profit for the period 5,281 2,633 7,749
Dividends paid (7,704) (2,600) (2,600)
Balance at the end of the period 40,619 14,492 21,158
RECONCILIATION OF EARNINGS AND HEADLINE EARNINGS
Earnings as per income statement 5,281 2,633 7,479
Impairment of intangible assets 0 714 464
Headline earnings 5,281 3,347 7,943
ORDINARY SHARES
Earnings per share (cents) 2.7 2.0 5.8
Earnings per share excluding STC
(cents) 3.2 2.3 6.0
Headline earnings per share (cents) 2.7 2.6 6.1
Headline earnings per share excluding
STC (cents) 3.2 2.8 6.4
Number of shares in issue ("000s) 192,593 130,000 130,000
Net asset value per share (cents) 21.1 11.1 16.3
Net tangible asset value per share
(cents) 17.8 7.4 11.4
DIVIDEND DECLARATION
Notice is hereby given that the directors declare ordinary dividend number 3, of
2 cents per share, the salient dates are as follows:
Dividend declaration date: Monday, 5 September 2006
Last day to trade "cum" the dividend: Friday, 29 September 2006
Date trading commences "ex" the dividend: Monday, 2 October 2006
Record date: Friday, 6 October 2006
Date of payment: Monday, 9 October 2006
Shareholders may not dematerialise or rematerialise their shares between Monday
2 October 2006 and Friday 6 October 2006, both days inclusive.
HIGHLIGHTS
Headline Earnings (excluding STC) up 70%
Headline Earnings up 58%
Earnings (excluding STC) up 111%
Earnings up 100%
Revenue up 20%
Cash on hand per share 17.8 cents
COMMENTS
The six months under review has been a successful period for ISA, with the
highlight being the conclusion of our BEE deal, which resulted in our new
partners holding 32.5% of the Group"s equity.
The results have been pleasing with healthy organic growth achieved in each line
of business.
Management"s objective of matching profits with tangible cash-on-hand was
achieved for the period. Strong growth in earnings, represented by an increase
in earnings per share of 35% to 2.7 cents, even after the dilution from the
issue of new shares to ISA"s BEE partners during the period. These results
illustrate ISA"s ability to apply rigorous financial management principles to
every aspect of the business.
ACCOUNTING POLICIES
These results have been prepared on a going concern basis, using accounting
principles and policies that comply with International Financial Reporting
Standards (IFRS), and are consistent with the previous period.
DIVIDEND DECLARATION
It is the Group"s policy to distribute excess cash, which is not required for
working capital, to shareholders by way of a dividend. An interim dividend of 2
cents per share is hereby declared as of 5 September 2006 to all shareholders on
record date Friday the 29th of September 2006 and payable on Monday the 2nd of
October 2006.
BOARD APPOINTMENTS
It is anticipated that at the General Meeting of shareholders, to be held on
Friday the 29th of September 2006, that J. Phiri, A. Naidoo and A. Maren will be
appointed as non-executive directors of ISA, with J. Phiri being appointed as
the non-executive chairperson. This will result in the Board comprising of 62.5%
non-executive and 50% black directors, thereby achieving the Group"s board
transformation and corporate governance objectives.
PROSPECTS
The ISA management team is confident in their ability to achieve organic growth
and remain committed to building the sub-Sahara African information security
market. Focus, passion and innovation are ingredients within the company that
management believes will underpin success.
For and on behalf of the board.
Clifford Katz
Chief Executive Officer
5 September 2006
Designated advisor: Exchange Sponsors (Pty) Ltd
In accordance with the AltX Listings Requirements, shareholders are advised of
the risks of investing in a company listed on AltX and are advised that the JSE
does not guarantee the viability or the success of a company listed on AltX. In
terms of JSE Listings requirements a Designated Adviser has to be retained by
the company. The Designated Adviser is required to, inter alia, attend all board
meetings held by the company to ensure that all JSE Listings Requirements and
applicable regulations are complied with, approve the financial director of the
company and guide the company in a competent, professional and impartial manner.
If the company fails to retain a Designated Adviser it must make arrangements to
appoint a new Designated Adviser within 10 business days, failing which the
company faces suspension of trading of its securities. If a Designated Adviser
is not appointed within 30 days of its suspension the company faces the
termination of its listing without an offer to minorities.
Date: 04/09/2006 11:13:09 AM Produced by the JSE SENS Department
