| Wed 13 Dec 2006, 7:00 | | SLL - Stella Vista - Preliminary Results For The Y |
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SLL - Stella Vista - Preliminary Results For The Year Ended 31 August 2006
Stella Vista Technologies Limited
("Stella Vista" or "the Company")
(Incorporated in the Republic of South Africa)
Registration Number: 1996/000172/06
Share code: SLL & ISIN: ZAE000018198
PRELIMINARY RESULTS FOR THE YEAR ENDED 31 AUGUST 2006
SUMMARISED GROUP INCOME STATEMENT
Audited Audited
31 Aug 06 31 Aug 05
R`000 R`000
Revenue 23,444 19,835
Operating (loss)/profit (after charging) (252) 528
- Depreciation 420 555
- Operating rentals 352 355
Net interest (paid)/received (460) 227
Net (loss)/profit before taxation (712) 755
Taxation - 2,133
Net (loss)/profit after taxation (712) 2,888
Basic and Headline (Loss)/Profit per share
Net (loss)/profit attributable to shareholders (712) 2,888
Profit on disposal of property, plant
and equipment 33 -
Headline (loss)/profit (745) 2,888
Basic (loss)/profit per share (cents) (0,51) 2,06
Headline (loss)/profit per share (cents) (0,53) 2,06
Net Asset Value per share (cents) 3.36 4.05
SUMMARISED GROUP BALANCE SHEET
ASSETS
Non-current assets
Property, plant and equipment 1,845 2,018
Deferred tax asset 2,976 2,976
4,821 4,994
Current assets
Inventories 7,676 3,318
Receivables 5,047 286
Cash and cash equivalents 2,988 3,287
15,711 6,891
Total assets 20,532 11,885
EQUITY AND LIABILITIES
Capital and reserves 4,704 5,675
Non-current liabilities
Interest-bearing borrowings 106 111
Current liabilities
Payables 13,715 5,713
Provisions and other payables 418 386
Bank borrowings 1,589 -
15,722 6,099
Total equities and liabilities 20,532 11,885
SUMMARISED GROUP CASH FLOW
Cash flow from operating activities (3,643) 3,480
Cash flow from investing activities (214) (634)
Cash flow from financing activities 1,969 209
(Decrease)/increase in cash and cash
equivalents (1,888) 3,055
GROUP STATEMENT OF CHANGES IN EQUITY
Capital and reserves at the beginning of
the period 5,675 2,830
Net (loss)/profit for the period (712) 2,888
Movement in foreign currency translation
reserve (259) (43)
Capital and reserves at the end of the period 4,704 5,675
The Company
Stella Vista Technologies Ltd (Company) is a world leader in the design of
state-of-the-art multimedia communications systems, providing displays,
control equipment and software for a multitude of applications. The complete
line of multi-purpose products includes scoreboards, video display screens
and combined text and graphic messaging displays with real-time data
capabilities. Stella Vista focuses on designing, producing, integrating and
supporting innovative products and services for clients` specific needs. This
provides the total solution for sport, business, entertainment and the
transportation markets, ensuring complete customer satisfaction, while
providing the viewer with a truly remarkable experience.
The Market and Prospects
Stella Vista has continued to be active in the sports market during the this
period - both locally and internationally. We delivered displays to two
cricket grounds in the West Indies, ahead of the ICC Cricket World Cup 2007,
as well as displays in Africa.
Stella Vista screens continue to be used at multiple international and local
sporting events in South Africa. Our electronic perimeter boards were used in
international cricket, rugby and local soccer competitions, as well as golf
tournaments.
The prospects in the sports and commercial markets appear high in the medium
term. Key contributors to this are the adoption of electronic perimeter
boards in various sports, and the international move to introduce full-size
electronic billboards by large outdoor companies.
Results
Despite our sales increasing by 18% on the previous financial year, the
results for Stella Vista were disappointing posting a loss for the year
ending 31 August 2006. The loss can be attributed to various factors
including -
Sales to the value of R4.2m which as a result of IAS 18 may only be
recognised in the next financial year as the display was delivered in
September 06.
Foreign exchange losses as a result of the weaker local currency.
A provision for an impairment charge of R0.8m for a second hand LED display
as a result of changes in technology.
The increase in inventory included work in progress and finished displays
which have subsequently been sold.
The sale of displays, control equipment and services to the value of R14.1m
to a related party, Powerview (Pty) Ltd, a company co-owned by directors of
Stella Vista, is included in revenue. These transactions were carried out at
arm`s length prices, based on market related terms and conditions.
Products and Services
Development of a new line of Titan(R) displays has started with Titan(R) S9.
The Titan(R) S-Series will further widen Stella Vista offering in the field
of video displays. There were also developments in the LB-series of
information displays, such as LB26 and LB24.
Stella Vista continues to enhance its current range of sport solutions,
particularly in cricket. These solutions can be customized to suit any
customer demand, from small school sport grounds to World class venues.
Stella Vista products and services are continually improved and upgraded to
match the customer requirement. This applies across the board, from simple
information scoreboards and electronic perimeter displays to the video replay
displays.
Accounting Standards
The preliminary financial statements have been prepared in accordance with
International Financial Reporting Standards. This is a first time adoption of
the International Financial Reporting Standards and as a result, the 2005
figures have been restated for comparative purposes. The effects of the
changes are as follows:
Reconciliation from SA GAAP to IFRS
GAAP IFRS Difference
R`000 R`000 R`000
Property, plant and equipment 1,433 2,018 585
Retained earnings (14,010) (13,425) 585
The unqualified review opinion of the auditors, PricewaterhouseCoopers Inc,
is available for inspection at the company`s registered office.
On behalf of the Board
R H Burke M Tabakovic
Chairman Chief Executive Officer
Directors: R H Burke*(Chairman), M Tabakovic (CEO), D Tabakovic, A A
Coulson*, C Livingstone*
(*non-executive)
Sponsor
Vunani Corporate Finance (Pty) Limited
Date: 13/12/2006 07:00:01 Produced by the JSE SENS Department.
