Sharenet Sites 
Sharenet Sites
Interim financial results summary for the six months ended 28 February 2013
Stella Vista Technologies Limited
(Incorporated in the Republic of South Africa) Company registration number 1996/000172/06
JSE share code: SLL ISIN: ZAE000018198 ("Stella Vista" or "the Company" or "the Group")
Interim financial results summary
for the six months ended 28 February 2013
Condensed Consolidated Statement of Comprehensive Income
Unaudited Unaudited Audited
six months six months 12 months
ended ended ended
28 Feb 13 29 Feb 12 31 Aug 12
Notes R'000 R'000 R'000
Revenue 6 564 10 842 17 933
Gross profit 3 856 6 513 10 579
(Loss)/Profit before
interest and depreciation (1 520) (40) (782)
Depreciation (1 278) (2 007) (1 856)
(Loss)/Profit before
interest and taxation (2 798) (2 047) (2 639)
Investment income (0) (34) 0
Finance cost (57) (16) (104)
(Loss)/Profit before
taxation (2 855) (2 063) (2 743)
Taxation 346 677
(Loss)/Profit after taxation (2 508) (2 063) (2 066)
Other comprehensive
(loss)/income:
Foreign currency translation
differences on foreign
operations (2 832) 221 (1 582)
Total comprehensive
(loss)/profit for the year (5 340) (1 841) (3 648)
(loss)/profit attributable
to:
Equity holders of the
parent company (2 428) (1 973) (1 980)
Non-controlling interests (80) (90) (87)
(Loss)/Profit for the year (2 508) (2 063) (2 066)
Total comprehensive
(Loss)/Profit attributable
to:
Equity holders of the
parent company (6 721) (1 751) (3 473)
Non-controlling interests (80) (90) (175)
Total comprehensive
(loss)/profit for the year (6 800) (1 841) (3 648)
Earnings and headline
earnings per share
(cents)
(Loss)/Earnings per share 3 (1.67) (1.36) (1.37)
Headline (loss)/earnings
per share 3 (1.67) (1.36) (1.38)
Diluted number of shares in
issue ('000)
basic 3 (1.67) (1.36) (1.37)
diluted 3 (1.67) (1.36) (1.36)
Diluted earnings/(loss) per
share (cents)
Condensed Consolidated Statement of Financial Position
Unaudited Unaudited Audited
six months six months 12 months
ended ended ended
28 Feb 13 29 Feb 12 31 Aug 12
R'000 R'000 R'000
ASSETS
Non-current assets 9 015 9 389 11 512
Property, plant and equipment 7 277 8 328 9 112
Deferred taxation assets 1 738 1 061 2 401
Current assets 12 019 16 727 9 051
Inventory 4 210 7 161 5 911
Tax receivable 346
Trade and other receivables 7 140 9 076 2 331
Cash and cash equivalents 323 490 810
TOTAL ASSETS 21 035 26 116 20 563
EQUITY AND LIABILITIES
Equity 399 7 404 5 578
Attributable to Stella Vista 359 7 374 5 618
Non-controlling interests 40 30 (40)
Non-current liabilities 128 239 787
Interest-bearing borrowings 4
Deferred revenue 124 239 124
Deferred tax liability 239 663
Current liabilities 20 508 18 473 14 199
Trade and other liabilities 14 554 10 381 6 974
Deferred revenue 58 515 115
Taxation payable 542 459 521
Current portion of interest-bearing
borrowings 5 340 7 073 6 550
Bank overdraft 15 45 38
TOTAL EQUITY AND LIABILITIES 21 035 26 116 20 563
Net asset value per share (cents) 0.25 5.09 3.87
Condensed Consolidated Statement of Cash Flows
Unaudited Unaudited Audited
six months six months 12 months
ended ended ended
28 Feb 13 29 Feb 12 31 Aug 12
R'000 R'000 R'000
Net (loss)/profit before tax and
separately disclosed items (2 855) (2 063) (2 743)
Non-cash items (816) 2 184 (571)
Working capital changes 4 471 (4 589) 2 027
Cash generated from operations 800 (4 467) (1 287)
Investment income ()
Finance cost (57) (16) (104)
Taxation refunded/(paid) 62
Dividend paid to:
Owners of Stella Vista
Non-controlling interests
Cash flow from operating
activities 744 (4 483) (1 391)
(Sale)/Purchase of property, plant
and equipment (255) 9
Cash flow from investing
activities (255) 9
Proceeds from interest-bearing
borrowings (1 207) 523 1 710
Cash flow from financing
activities (1 207) 523 1 710
Net movement in cash and cash
equivalents (463) (4 215) (120)
Foreign translation difference in
cash and cash equivalents
Cash and cash equivalents at
beginning of year 771 2 505 891
Cash and cash equivalents at
end of year 308 (1 710) 771
Condensed Consolidated Statement of Changes in Equity
for the six months ended 28 February 2013
Attributable
Foreign Share- to equity
currency based holders of Non-
Share capital translation payment Accumulated the parent controlling Total
R'000 and premium reserve reserve losses company interests equity
Audited balance at 31 August 2011 20 343 (1 703) (9 545) 9 095 130 9 225
Total comprehensive loss for the year (1 498) (1 980) (3 478) (170) (3 648)
Audited balance at 31 August 2012 20 343 (3 201) (11 525) 5 617 (40) 5 577
Share options forfeited transferred to share premium
Total comprehensive loss for the year (2 831) (2 508) (5 339) 80 (5 260)
Unaudited balance at 28 February 2013 20 343 (6 032) (13 952) 359 40 399
Notes to the Condensed Consolidated Financial Statements
1. Basis of preparation
The interim results for the six months ended 28 February 2013 ("year under review")
have been prepared in accordance with lAS 34 Interim Financial Reporting, the South
African Companies Act, 2008 (Act 71 of 2008), and the JSE Listings Requirements.
2. Accounting policies
The accounting policies and methods of computation applied in the preparation of the
results for the year under review are in accordance with IFRS and are consistent with
those applied in the preparation of the Group's annual financial statements for the
year ended 31 August 2012.
3. Reconciliation of earnings and headline (loss)/earnings
(Loss)/Profit after taxation attributable to:
Ordinary equity holders of the parent entity
for the year (2 428) (1 973) (1 980)
Loss on disposal of property, plant and
equipment (19)
Headline (loss)/earnings (2 428) (1 973) (1 998)
Weighted average number of shares in
issue (000's) 145 000 145 000 145 000
(Loss)/Earnings per share (cents) (1.67) (1.36) (1.37)
Diluted headline (loss)/earnings per
share (cents) (1.67) (1.36) (1.38)
Headline (loss)/earnings per share
(cents) (1.67) (1.36) (1.38)
4. Segment information
Management has determined the operating segments based on the monthly reports
reviewed by the board of the directors that are used to make strategic decisions. The
chief operating decision-maker has been identified as the Group's Chief Executive
officer. The Chief Executive Officer considers the business from a geographical basis
as the products and business are the same across all business segments. The Chief
Executive Officer assesses the performance of the operating segments based on
revenue, operating profit and cash flow. The monthly management accounts tabled
at the board meeting and used by the chief operating decision-maker are in line with
IFRS.
South United
R'000 Africa Kingdom Total
Unaudited at 28 February 2013
Total segment revenue 3 548 3 142 6 690
Inter-segment revenue (126) (126)
Revenue from external customers 3 422 3 142 6 564
Cost of sales 1 792 916 2 708
Depreciation and amortisation 77 1 201 1 278
Income tax credit/(expense)
Loss after tax 912 1 596 2 508
Inventory 4 210 4 210
Total assets 13 925 7 110 21 035
Total liabilities 14 492 6 184 20 676
Audited at 31 August 2012
Total segment revenue 11 420 6 638 18 058
Inter-segment revenue 126 126
South United
R'000 Africa Kingdom Total
Revenue from external customers 11 294 6 638 17 932
Cost of sales 6 442 912 7 354
Depreciation and amortisation 343 1 514 1 857
Income tax credit/(expense) 677 677
Loss/(Profit) after tax 1 077 990 2 067
Inventory 5 911 5 911
Total assets 10 021 10 543 20 564
Total liabilities 13 766 538 14 304
DIRECTORS' COMMENTARY
Introduction
Stella Vista Technologies Limited ("Stella Vista") was established in February 1994 and
has over the years been the leader in design and provision of information solutions based
on LED electronic displays in South Africa, Middle East, the Indian sub-continent, the
Caribbean and the UK and Ireland. In addition to the head office and factory situated
in Kyalami, South Africa, the Company owns Stella Vista International Limited, with
offices and warehouse in Hampton, England. Stella Vista is one of the frontrunners in
the visual mass communications industry worldwide. Driven by the pursuit of excellence,
the Company prides itself on reliability and superior service made possible by its vision,
creativity, ambition and integrity. the low ownership cost of our products, the high
quality of the materials we use and our dedication to building long-term relationships
with our customers that sets us apart from our competitors. For more information visit
www.stellavista.com or email info@stellavista.com.
The market and prospects
The economic climate and the continued entry of cheap Chinese displays has resulted
in tougher competition and increased pressure on margins. Further complications are
introduced by South African regulations being strictly applied to local manufacturers
and not applicable to our overseas competitors. The end result is a significant reduction
of sales income and diminishing workforce. Local buyers believe they are safer if they
import products regardless of price competitiveness and lack of local support what
could have grave consequences as the expected life span of an LED display is 10 years.
We have embarked on a customer education programme promoting the benefit of
procurement through a local manufacturer offering guidance on product design solutions
and the benefits of local back-up and technical support thus ensuring an improved ROI
for our customers. The continued economic downturn is Europe has added additional
pressure on turnover.
Products and services
A significant portion of the period under review was dedicated to the certification and
development of our range of TL products, the first displays of this range were sold to
Tanzania and prospects of future sales look positive. We are still in the early stages
of realising the benefits of our FaceUp technology where products previously sold are
upgraded at a fraction of the cost of new installations and older technology is refurbished
and sold into the used product market. We are continuing to develop products and
improve our competitiveness through cutting costs and making partnerships in fields
where the South African environment is not competitive (production, volume purchasing,
cost of doing business etc). A wider range of quality products have been developed and
will expand our customer base with more cost-effective products and services.
Financial results
Stella Vista is operating in difficult environment for LED industry worldwide. The result
is a reduction in revenue of 40% year on year. The current economic times continue to
be challenging to Stella Vista. In terms of technology we are and will remain committed
to innovations and excellence. The Company has streamlined operations and achieved
cost reduction whilst still maintaining core strengths over the longer period. Various
measures are taken within the Company to adapt to the current economic climate.
Restructuring of workforce and widening our scope of products, services and markets
are the most important steps. These changes are still to yield positive results.
Stella Vista's revenue is derived from sales, rental and maintenance of screens in
geographic locations around the world (South Africa, United Kingdom and other
countries).
Management is committed to the future of Stella Vista, and are implementing new
strategies that will yield positive results in the long term.
Subsequent events and capital commitments
There have been no significant events since the end of the period under review and
the date of this report. There was no significant capital expenditure authorised as at
28 February 2013.
Dividends
The Board has resolved not to declare dividends until the Group's liquidity position has
improved.
On behalf of the directors
M Tabakovic
Chief Executive Officer
Registered office
62 Kyalami Boulevard, Kyalami Business Park, Kyalami
Tel: (0ll) 466 2020
Website: www.stellavista.com E-mail: muris@stellavista.com
Directors
M Tabakovic (Chief Executive Officer); C Livingstone (Non-executive); D Tabakovic
L Kerr Company secretary L Kerr
Prepared by: L Kerr (Financial director)
Sponsor Auditors
Arcay Moela Sponsors IAPA Johannesburg
Chatered Accountants (SA)
31 May 2013
Sponsor
Arcay Moela Sponsors (Pty) Limited
Date: 31/05/2013 04:12:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
