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LABAT AFRICA LIMITED (Incorporated in the Republic of South Africa) (Registration number 86/01616/06) AUDITED RESULTS for the year ended 28 February 2001 * REVENUE + 57% * Operating Income + 41% * Attributable income + 14% THE POWER TO DELIVER CONSOLIDATED INCOME STATEMENTS
Audited Audited
12 months 12 months
28 Feb 2001 29 Feb 2000
R'000 R'000
Revenue 175 735 112 083 Net operating income before
interest and taxation 25 239 17 869
Net interest paid (5 773) (4 324)
Net income before taxation 19 466 13 545
Taxation (1 844) 925
Net income after taxation 17 622 14 470 Attributable to outside
shareholders (883) 280
Attributable to ordinary shareholders 16 739 14 750 Weighted average number
of shares in issue ('000) 184 903 140 757
Basic earnings per share (cents) 9,1 10,5 Fully diluted earnings
per share (cents) 9,1 10,3
Headline earnings per share (cents) 9,1 10,5 CONSOLIDATED BALANCE SHEETS
Audited Audited
at at
28 Feb 2001 29 Feb 2000
R'000 R'000 Employment of Capital Non-current assets
Investments 31 417 23 643
Fixed assets 12 312 12 758
43 729 36 401 Current assets
Cash at bank 5 263 5 495
Inventories 17 813 16 828
Trade and other receivables 29 081 23 954
Instalment sale debtors 79 424 69 079
131 581 115 356
175 310 151 757 Capital Employed
Share capital 1 849 1 827
Share premium 49 090 46 711
Distributable reserves 33 012 16 995
Shareholders' funds 83 951 65 533
Outside shareholders 1 064 (417)
Total shareholders' funds 85 015 65 116 Non-current liabilities
Long-term liabilities 5 832 988
Deferred taxation 10 326 8 125
16 158 9 113 Current liabilities
Bank overdraft 11 992 12 780
Instalment sale finance 25 555 20 715
Short-term debt 6 000 6 500
Trade creditors and other payables 30 590 37 533
74 137 77 528
175 310 151 757
Number of shares in issue ('000) 184 903 182 721
Net asset value per share (cents) 45 36 COMMENT GROUP PROFILE AND FOCUS
After a period of restructuring and consolidation the company is now focused on four main profitable businesses:
* SAMES - South Africa's sole manufacturer of integrated circuits for use in the telephony and energy measurement industries.
* LABAT TRAFFIC SOLUTIONS - which offers a range of innovative technology- driven management systems to traffic departments.
* LABAT PROFESSIONAL SERVICES - offering a range of consulting solutions primarily to the public sector.
* LABAT RETAIL - a chain of 21 retail furniture, electrical and white goods stores. COMMENTARY ON RESULTS
The current results are especially pleasing as it has been achieved by organic growth in difficult trading conditions without significantly expanding the balance sheet.
* Turnover grew by 57% from R112,1 million to R175,7 million.
* Operating income grew by 41% from R17,9 million to R25,2 million.
* Interest cover improved from 4,1 times to 4,4 times.
* Attributable income grew by 14% from R14,8 million to R16,7 million. * On an annualised like-for-like basis earnings per share grew by 14% from 8,0 to 9,1 cents.
* Net assets per share grew by 25% from 36 cents to 45 cents.
* Despite a 57% growth in revenue, net bank overdraft reduced by R0,5 million.
* Again, despite the 57% increase in revenue, inventory levels only increased by 6%.
* Trade and other receivables increased by only 21%. Future Prospects South African Micro-Electronic Systems (SAMES)
The business has been refocused and the original telephony business now only accounts for 10% of turnover. SAMES is concentrating on the International energy metering market. 80% of sales are now in overseas dollar-priced markets. The exchange rate over the past two years has helped the company to become internationally competitive. Labat Traffic Solutions
The business has matured and is well-poised for expansion. Our system is operating in two major municipalities and we have won new contracts in five others and negotiations are at an advanced stage with several others. Professional Services
Prospects for the year ahead are good especially since several large
contracts have been won. Significant new consulting capacities have been acquired in the past year. Labat Retail
Despite the negative sentiment raised towards the retail sector we continue to remain bullish. We now have a total of 21 stores and are well-advanced with the roll-out of our franchise stores. The retail sector will be one of the first beneficiaries as the economy picks up and interest rates decline. STRATE
The company has moved to the new strate electronic settlement environment. Dematerialisation commenced on 23 April 2001. Shareholders are advised to appoint a Central Securities Depository Participant (CSDP) but are not obliged to do so. As of 21 May 2001 no paper scrip will be accepted for settlement. Dividends
In accordance with company policy, no dividends will be declared as group surpluses will be retained to fund future growth. For and on behalf of the board J J Modise B G van Rooyen Chairman Group Chief Executive 24 May 2001
Registered office Transfer secretaries
Labat House Mercantile Registrars Limited Constantia Park Centre 10th Floor
Corner 14th Avenue and 11 Diagonal Street
Hendrik Potgieter Road Johannesburg, 2001
Weltevreden Park, 1709 PO Box 1053
Suite 248, Private Bag X09 Johannesburg, 2000 Weltevreden Park, 1715
