| Wed 14 Feb 2007, 15:00 | | MYD - Myriad Medical Holdings Limited - Abridged u |
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MYD
MYD
MYD - Myriad Medical Holdings Limited - Abridged unaudited interim
financial statements for the 6 Months ended 30 November 2006
Myriad Medical Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number: 2006/006371/06)
Share code: MYD ISIN: ZAE000085825
("Myriad" or "the company" or "the group")
Abridged unaudited interim financial statements for the 6 Months
ended 30 November 2006
- Listing of Myriad on the Altx of the JSE and the raising of R95
million
- Headline earnings for the six months of 4.9 cents per share
- Cash on hand of R14.3 million as at 30 November 2006
- Acquired three new medical device agencies
GROUP BALANCE SHEET AS AT 30 NOVEMBER 2006
(R`000)
ASSETS
Non-current assets 57,299
Property, plant and equipment 688
Intangibles 56,611
Current assets 53,976
Accounts receivable and inventory 39,651
Cash and cash equivalents 14,325
Total assets 111,275
EQUITY AND LIABILITIES
Capital and reserves 97,159
Share capital and premium 89,068
Accumulated profits 8,091
Current liabilities 14,116
Accounts payable and provisions 10,811
Taxation 3,305
Total equity and liabilities 111,275
Net asset value per share (cents) 52.9
Net tangible asset value per share (cents) 22.1
Closing number of shares 183,764,706
GROUP INCOME STATEMENT FOR THE 6 MONTHS ENDED
30 NOVEMBER 2006
(R`000)
Turnover 46,740
Net income before interest and depreciation 11,367
Depreciation (203)
Net interest received 232
Net profit before taxation 11,396
Taxation 3,305
Attributable earnings 8,091
Earnings per share (cents) 4.9
Headline earnings per share (cents) 4.9
Weighted average number of shares 166,383,406
GROUP STATEMENT OF CHANGES IN EQUITY
(R`000)
Balance at the beginning of the period -
Issue of shares (after expenses) 89,068
Net profit for the period 8,091
Balance at the end of the period 97,159
GROUP CASH FLOW STATEMENT
(R`000)
Cash flows from operating activities 940
Cash generated/(utilised) by operating
activities
Decrease/(Increase) in working capital
Change in investment in associate
Negative goodwill
Cash generated by operating activities 708
Net interest received 232
Cash flows from investing activities (75,683)
Purchase of property, plant and equipment (397)
Purchase of businesses (75,353)
Proceeds on disposal of property, plant and 67
equipment
Cash flows from financing activities 89,068
Share capital raised 89,068
Increase in cash and cash equivalents 14,325
Cash and cash equivalents at beginning of -
period
Cash and cash equivalents at end of period 14,325
NATURE OF BUSINESS
The Myriad group is a supplier of medical devices to both the public and
private hospital sectors. The group consists of six business units, with
the rights to 26 international medical device agencies with different
products and premier brands, such as: BD, Molnlycke, Statlock and Newport
Medical Instruments. Myriad was listed on the Altx board of JSE Limited on
17 October 2006, raising R95 million at 85 cents per share. Myriad received
irrevocable commitments in excess of the funding required.
All of the group`s operating divisions are housed in its wholly-owned
subsidiary, Myriad Medical (Proprietary) Limited. These include the
businesses and agencies acquired, namely Manta Medical division, Manta
Forensic division, ICU Medical division, Callen division, Vital division
(now known as VitalCal), the Critical Care division and the Training
Academy.
OPERATIONAL REVIEW
For the six months to 30 November 2006, the company generated profit after
tax of R8.1 million. Based on the weighted average number of shares of
166,383,406, the resultant earnings and headline earnings per share was 4.9
cents which is line with the company`s expectations for the first six
months. Cash generated by operations during the period has been utilised to
fund the net build up of debtors in the businesses Myriad acquired before
listing.
As at 30 November 2006, the group had cash on hand of R14.3 million. A
significant portion of this cash and cash generated going forward will be
utilised to fund acquisitions in line with the group`s stated strategy of
building a consolidated group that can provide a broad offering of medium
and high-tech medical devices to the healthcare sector. However, the
acquisitions will be made judiciously and the group is committed to keeping
its gearing levels within its targeted 30% level.
The group`s focus since listing has been on implementing standard internal
control systems within each of the business units. This is now complete. A
group internal audit function has also been set up.
Trading for the first six months was strong, with both of the larger
divisions, ICU Medical and Manta Medical, exceeding their respective
forecasts. In addition to the increase in sales during this period, ICU
Medical has recently been re-awarded the contract for needle free access
devices for a large private hospital group for a further two years. Manta
Medical has seen a significant increase in its sales to the public sector
and has been successfully nominated as the preferred supplier of
transducers to a large private hospital group. The Manta Forensic division,
which supplies the South African Police with its DNA collection kits for
crime identification purposes, was awarded contracts for all eight
categories it bid on. The benefits of these contracts will accrue over the
next three years.
VitalCal has been awarded a significant national government contract to
supply emergency equipment to hospitals and clinics.
The Critical Care division which distributes the Newport and Kimal
products, as well as some of the agencies held by the VitalCal, is now
fully operational. Sales staff have been employed and the infrastructure
established. Kimal and Newport have recently launched new products which
significantly broaden their product offering.
The Myriad Training Academy is fully operational and has been actively
training private and state doctors and nurses, as well as Myriad sales
staff.
NEW AGENCIES
In line with its strategy of expanding its product offering, since listing,
Myriad has secured the agency rights for three agencies that supply
incubators, neonatal products and specialist hospital beds and furniture.
PROSPECTS
The company is currently under cautionary. Negotiations and discussions are
taking place with certain medical device companies. Should these
transactions be successfully concluded, they should have a significant
impact on the profitability and size of Myriad.
Since listing, Myriad has been increasingly active in tenders for
government contracts. Myriad has set up its own internal bid division, this
division will ensure Myriad maximises its participation in these tenders.
The group also continues to be in discussions with additional international
principals to represent their products in South Africa and Africa.
ACCOUNTING POLICIES
As this is the first period of trading, no comparative figures have been
presented. The financial results are prepared in accordance with IAS 34
(Interim Financial Reporting), the requirements of the South African
Companies Act, Act 61 of 1973, and the Listing Requirements of JSE Limited.
The financial results presented above have been reviewed but not audited by
Moores Rowland the group`s auditors. Their limited review report is
available for inspection at the group`s registered office during normal
office hours.
DIVIDEND
No dividend has been recommended or declared in this interim period.
For and on behalf of the board
Dr PM Mandela, Chairperson
Johannesburg
14 February 2007
Directors: Dr PM Mandela*, Dr J Shapiro, RS Shapiro, M Nielsen, NP Lee, D
Schneider*, P Vallet*
(*non-executive)
Designated Adviser
Sasfin Capital
(a division of Sasfin Bank Limited)
Auditors
Moores Rowland
Transfer Secretaries
Computershare Investor Services 2004 (Pty) Ltd
Registered Office
Second Floor
5 St David`s Place
Parktown, 2193
Johannesburg
Date: 14/02/2007 15:00:02 Produced by the JSE SENS Department.
