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Unaudited Interim Results For the Six Months ended 31 August 2013
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 31 AUGUST 2013
CONDENSED CONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION
Unaudited Reviewed Audited
6 months 6 months 12 months
31 August 31 August 28 February
2013 2012 2013
Figures in Rand (‘000) R'000 R'000 R'000
ASSETS
Property, plant and
equipment 26 583 30 793 26 655
Other intangible assets - 87 1
Non-current assets 26 583 30 880 26 656
Other financial assets 10 516 10
Inventories 4 331 4 772 5 296
Trade and other receivables 1 075 1 623 1 837
Cash and cash equivalents 1 718 2 800 830
Current assets 7 134 9 711 7 973
Non-current Assets held for
sale - 2 168 -
Total assets 33 716 42 759 34 629
EQUITY AND LIABILITIES
Share capital and reserves 610 462 1 379
Shareholder loans - 11 073 -
Deferred taxation 4 554 5 272 4 553
Non-current liabilities 4 554 16 345 4 553
Trade and other payables 3 169 6 903 3 341
Loans from Directors 8 366 - 7 751
Provisions 5 578 837 5 847
South African Revenue
Services 11 439 18 212 11 757
Current liabilities 28 553 25 952 28 696
Total equity and liabilities 33 716 42 759 34 628
CONDENSED CONSOLIDATED INTERIM STATEMENT OF COMPREHENSIVE INCOME
Unaudited Unaudited Audited
6 months 6 months 12 months
31 August 31 August 28 February
2013 2012 2013
R'000 R'000 R'000
Revenue 5 217 8 272 13 249
Cost of Sales (1 869) (2 987) (5 975)
Gross Profit 3 347 5 285 7 274
Other Income - - 8 055
Operating Expenses (4 868) (7 046)- (14 892)
Impairments - - (150)
Operating (Loss)/Profit (1 521) (1 761) 287
Investment Revenue 2 5 17
Finance Costs - (195) (1 615)
Loss before taxation (1 519) (1 951) (1 311)
Taxation 136 853
Loss from continuing
operations (1 519) (1 815) (458)
Discontinued operations (441)
Loss for the year (1 519) (1 815) (899)
Other Income (Development
Costs) - -
Total comprehensive
loss/profit for the year (1 519) (1 815) (899)
Loss and comprehensive loss
attributable to:
Owners of the parent:
Loss and total comprehensive
loss for the year
attributable to owners of
the parent (1 519 (1 815) (1 356)
Loss Per Share
From continuing operations
Basic loss per share (cents) (0.75) (0.92) (0.23)
Total loss per share
Basic loss per share (cents) (0.75) (0.92) (0.45)
Headline earnings
reconciliation:
Total comprehensive loss for
the year (1 519) (1 815) (899)
Adjustments: - -
- Impairments 150
- Loss on disposal of
property, plant and
equipment 370
- Discontinued operations 441
Headline loss attributable
to ordinary shareholders (1 519) (1 815) 63
Total Headline
(loss)/earnings per share (0.75) (0.92) 0.03
CONDENSED CONSOLIDATED INTERIM STATEMENT OF CASH FLOW
Unaudited Unaudited Audited
Figures in rand (‘000) 6 months 6 months 12 months
31 August 29
2013 31 August February
2012 2013
Net flow from operating
activities (1 185) 722 (5 215)
Net flow from investing
activities 1 322 (672) 3 231
Net flow from financing
activities 750 (82) (2 441)
Net (decrease)/increase in
cash 888 (32) (17)
Cash at beginning of period 830 2 832 2 831
Cash at end of period 1 718 2 800 830
CONDENSED CONSOLIDATED INTERIM STATEMENT OF CHANGE IN EQUITY
Non- Total
Distrib Capital
Share Treasu utable and
Capit Share ry Reserve Accumulat reserve
R'(000) al Premium Shares s ed loss s
Balance at 1
March 2012 1 972 49 065 (482) 15 267 (63 544) 2 278
Total
comprehensive
income for the
year - - - - (898) (898)
Transfer of
revaluation
reserve - - - (253) 253 -
Transfer of
revaluation
reserve on
disposal of
property - - - (2 088) 2 088 -
Balance at 28
February 2013 1 972 49 065 (482) 12 926 (62 101) 1 380
-
Total
comprehensive
income for the
year - - - - (1 214) (1 214)
New share issue 50 699 - - - 749
Transfer of
revaluation
reserve on
disposal of
property - - - - - -
Balance at 31
August 2013 2 022 49 764 (482) 12 926 (63 315) 915
OVERVIEW
BASIS OF PREPARATION OF THE UNAUDITED INTERIM RESULTS
Statement of compliance
The unaudited consolidated condensed group interim results have been
prepared in accordance with the recognition and measurement criteria
of International Financial Reporting Standards (“IFRS”), the AC500
Standards and the presentation and disclosure requirements of IAS 34:
Interim Financial Reporting, the JSE Limited Listings Requirements
and the Companies Act of South Africa. These interim results have not
been reviewed or audited and as such the auditors have not expressed
an opinion on the figures.
Significant accounting policies
The same accounting policies, presentation and methods of computation
have been followed in these unaudited interim results as were applied
in the preparation of the Group’s Financial Statements for the period
ended 28 February 2013.
Basis of measurement
The unaudited consolidated condensed group interim results have been
prepared on the historical cost basis except for certain financial
instruments measured at fair value.
INTERIM RESULTS
Final costs of closing the old plant and property have contributed to
a loss of R1.519 million. The SAMES operation is continuing to
develop as planned and is currently trading profitably.
After significant expenditure on new product development the company
is on schedule to complete its current programme which will see new
products being rolled out in the next financial year. The company’s
new five year plan envisages substantial growth in turnover and
profits. The plan calls for further major investment in more new
products and investment in new technology which will increase margins
substantially. We expect that the company will grow to previous
heights. Other technology acquisitions are also being pursued and
recruitment of additional product developers is taking place.
No segmental report has been prepared as the company principally
operates in one segment within South Africa.
RIGHTS ISSUE AND SALE OF SURPLUS ASSETS
A rights issue and sale of surplus non-core assets is in the process
of being finalized. A circular to this effect has been prepared and
has been issued for shareholder approval on 23 December 2013.
Potential funds to be raised will be in the region of R49m. Proceeds
will be used to strengthen the company’s Balance Sheet, eliminate
creditors and raise capital for growth.
PROSPECTS
SAMES is now well positioned for substantial generic growth and by
acquisition. Acquisitions and strategic JV’s are being pursued in
various sectors including Rail and Infrastructure Development, Energy
Resources and Pharmaceuticals.
DIVIDENDS
In line with group policy, no dividend has been declared. When
deemed appropriate, a dividend will be declared.
GOING CONCERN
The board of directors is of the opinion that the group has
sufficient resources to continue as a going concern.
SUBSEQUENT EVENTS
Other than as disclosed above, management is not aware of any
material events which occurred subsequent to the period ended 31
August 2013.
For and on behalf of the board
B G VAN ROOYEN Prepared by: D. O’NEILL
Chief Executive Officer Financial Director
2 January 2014
Directors: B van Rooyen (CEO), D O`Neill (FD), R Majiedt#
(Chairperson), B Jacobs#
# - Independent non-executive
Company Secretary: A Britto
Johannesburg
Sponsor: Arcay Moela Sponsors (Pty) Ltd
Date: 02/01/2014 10:56:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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