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Unaudited Interim Results for the Six Months Ended 28 February 2018
LABAT AFRICA LIMITED
Incorporated in the Republic of South Africa
(Registration number 1986/001616/06)
JSE code: LAB ISIN: ZAE000018354
(“Labat” or “the company”)
UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 28 FEBRUARY 2018
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
6 months 6 months
ended ended
28 February 29 February
2018 2017
Unaudited Unaudited
R’000 R’000
Revenue 55 611 20 644
Cost of sales (42 158) (15 499)
Gross profit 13 453 5 145
Other income - 1 475
Operating expenses (8 375) (5 553)
Operating profit/(loss) 5 078 1 067
Investment revenue 25 -
Finance costs (376) (69)
Profit/(loss) before taxation 4 726 998
Taxation (289) 8
Profit for the period 4 438 1 006
Other comprehensive income - -
Total comprehensive income for the period 4 438 1 006
Attributable to:
Equity holders of the parent 4 438 1 006
Non-controlling interest - -
Total comprehensive income for the period 4 438 1 006
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
28 February 28 February
2018 2017
Unaudited Unaudited
R’000 R’000
ASSETS
Property, plant and equipment 1 891 1 109
Other intangible assets 2 342 -
Deferred taxation 8 238 7 904
Non-current assets 12 471 9 013
Inventories 2 725 3 625
Other financial assets 2 215 10
Trade and other receivables 16 090 12 085
SARS 2 547 (3 801)
Cash and cash equivalents 4 814 3 312
Current Assets 28 391 19 032
Total Assets 40 862 24 244
EQUITY AND LIABILITIES
Share Capital 16 654 7 362
Share premium 59 885 58 906
Non-Distributable Reserves 270 343
Distributable reserves (43 501) (51 617)
Long Term Liabilities 1 197 -
Deferred Taxation 138
Non-Current Liabilities 1 335
Trade and other payables 13 513 8 258
Short Term lease liability 96 -
Provisions 9 264 8 070
Current Liabilities 22 873 16 612
Total Equity and Liabilities 40 862 24 244
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
6 months ended 6 months ended
28 February 28 February
2018 2017
Unaudited Unaudited
R’000 R’000
Cash flows (used in)/ from operating activities:
Cash receipts from customers 2 974 10 559
Cash paid to suppliers and employees (4 947) (16 108)
Cash used in operations (1 973) (5 549)
Investment revenue 25 -
Finance costs (376) (69)
Net cash from operating activities (2 324) (5 618)
Cash flows (used in)/from investing activities:
Purchase of property, plant and equipment (241) (53)
Loans from group companies received (1 500) -
Loans from group companies paid (920) -
Net flow from investing activities (2 661) (53)
Net flow from financing activities:
Repayment of South African Revenue Services
liability - (379)
Lease Liability (78) -
Directors and shareholders loans received - 82
Loans received 650
Net flow from financing activities 572 (297)
Net decrease in cash (4 413) (5 968)
Cash at beginning of period 9 226 9 280
Cash at end of period 4 813 3 312
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Non
Distributable
Share Total share reserves/ Accumulated Total
capital capital Revaluations loss equity
R'000 R'000 R'000 R'000 R'000
Opening balance at
1 September 2016 2 111 58 905 343 (52 621) 6 627
Profit for the period - - - 1 006 1 006
Balance at 28 February
2017 - Unaudited 2 111 58 905 343 (51 616) 7 632
Issue of shares 29 980 - - 980
Profit for the period - - 3 634 3 634
Transfer of revaluation
reserve - - (43) 43 -
Balance at 31 August
2017 - Audited 2 140 59 885 300 (47 938) 12 246
Profit for the period - - - 4 438 4 438
Transfer of revaluation
reserve - (30) - (30)
Balance 28 February
2018 – Unaudited 2 140 59 885 270 (43 501) 16 654
SEGMENTAL INFORMATION
6 months 6 months
ended ended
28 February 28 February
2018 2017
Unaudited Unaudited
R’000 R’000
Technology
External sales 6 439 3 382
Logistics
Logistics sales 49 172 17 262
Total revenue 55 611 20 644
Technology
Profit /(Loss)before taxation for the period 743 (789)
Logistics
Profit before taxation for the period 3 695 1 793
Profit for the year before taxation 4 438 1 006
COMMENTARY
Results
We are pleased to announce that the Company’s revenue for the six months ended 28 February
2018 increased by 170% to R55.6 million from R20.6 million reported in the previous corresponding
period due to the Company’s expansion into the logistics industry.
The company achieved a positive growth in the operating profit from R1.067 million in the previous
year to R5.078 million in the current year. Labat’s new logistics business has performed well. It has
been profitable since inception and is growing substantially on a monthly basis.
Net profit before taxation has gone from a profit of R0.998 million in the previous corresponding
period to a profit of R4.726 million in the current period.
Headline Earnings Reconciliation
The headline earnings reconciliation is set out below
R’000 R’000
Profit for the period 4 438 1 006
Adjustments - -
Headline earnings attributable to shareholders of the group 4 438 1006
Share information
Per share information:
Basic and diluted earnings per share (cents) 1.71 0.39
Basic and diluted headline earnings per share (cents) 1.71 0.39
Weighted average shares in issue (‘000) 258 879 255 992
Number of shares in issue at period end 258 879 255 992
South African Micro Electronic-Systems Proprietary Limited (“SAMES”)
The company is now back on track after its move to the new premises and the development of
new products. Revenue has increased to R6.4 million from R3.4 million in the previous
corresponding period. Revenue is expected to grow in the next two years when newly developed
products are introduced.
Logistics Business
During the period under review, the logistics business generated solid gross margin and operating
profit. Our marketing efforts are now beginning to show suitable results and the group is well
positioned for growth based on work done over the past two years. Labat has identified more
experienced operational partners and has entered into long term joint venture agreements with
them.
Prospects
We have negotiated some long-term contracts with some of the large mining companies,
whereas previously the Company only secured short term contracts. The prospects for the rest of
the year are exciting and all indications are that we will continue to grow the business.
BASIS OF PREPARATION
Going Concern
The Board is of the opinion that having regard to the future strategy and prospects of the group,
the Labat group has sufficient resources to continue as a going concern.
Statement of compliance
These unaudited interim results are prepared in accordance with the framework concepts and
the recognition and measurement criteria of International Financial Reporting Standards (IFRS), its
interpretations adopted by the International Accounting Standards Board (IASB), the presentation
and the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee and
Financial Reporting Pronouncements as issued by Financial Reporting Standards Council, IAS 34 –
Interim Financial Reporting, the Listings Requirements of the JSE Limited and the requirements of
the Companies Act of South Africa (Act 71 of 2008), as amended.
The unaudited interim results are prepared in accordance with the going concern principle under
the historical cost basis as modified by the fair value accounting of certain assets and liabilities
where required or permitted by IFRS, and where applicable.
All financial information presented in South African Rand has been rounded to the nearest
thousand. The unaudited interim results have been prepared using accounting policies that
comply with IFRS. The accounting policies used are consistent with those used in the audited
annual consolidated financial statements for the year ended 31 August 2017.
The unaudited interim results for the six months ended 28 February 2018 were prepared under
supervision of the Group’s financial director, Mr DJ O’Neill (CA). Any reference to future financial
performance included in this announcement has not been reviewed nor reported on by Labat’s
external auditor.
ACQUISITIONS AND DISPOSALS
The proposed acquisition of a stake in Labat-Kufika was not successful and the arrangement was
cancelled. No Labat-Kufika revenues or profits have been taken into account in these results.
There were no other acquisitions or disposals during the period under review.
SHARE CAPITAL
No shares were issued or repurchased in the period under review.
CHANGES TO THE BOARD
Mrs Beverly Penny was appointed to the board on 30 November 2017.
DIVIDENDS
No dividend has been declared for the period under review (February 2018: Rnil).
RELATED PARTIES
There were no material transactions with related parties during the period under review.
For and on behalf of the board
BG VAN ROOYEN DJ O’NEILL
CEO FINANCIAL DIRECTOR
7 May 2018
Directors
BG van Rooyen*, DJ O’Neill*, R Majiedt^ R Mohamed^ B Penny
Executive*, Independent non-executive^
Company Secretary: Arbor Capital Company Secretarial Proprietary Limited
Registered Address: 23 Kroton Avenue, Weltevreden Park, 1709
Sponsor: Arbor Capital Sponsors Proprietary Limited
Transfer Secretary: Computershare Investor Services Proprietary Limited
Date: 07/05/2018 05:21:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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