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Trematon Capital Investments Limited - Unaudited Interim Report For The Six
Months Ended 28 February 2002
TREMATON CAPITAL INVESTMENTS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1997/008691/06)
ISIN Code: ZAE 000013991
JSE Share Code (TMT)
UNAUDITED INTERIM REPORT FOR THE SIX MONTHS ENDED 28 FEBRUARY 2002
Group income statement
Six Six (Audited)
Months to months to Twelve
28 28 months to
February February 31 August
2002 2001 2001
R000 R000 R000
Net interest (paid)/received (75) (251) 136
Net management and statutory (1 036) (1 651) (3 298)
expenses
Loss from operations (1 111) (1 902) (3 162)
Investment valuation adjustments
- Fair value movements, losses and 3 298 (306 876) (649 611)
write-downs
Profit/(loss) before taxation 2 187 (308 778) (652 773)
Taxation expense - - 5
Profit/(loss) after taxation 2 187 (308 778) (652 778)
Loss from associates (1 289) (678) (2 586)
Income/(loss) for the period 898 (309 456) (655 364)
Headline loss per share (cents) (2,2) (2,4) (5,3)
Earnings/(loss) per share (cents) 0,8 (283,4) (600,2)
Weighted average number of shares in 109 200 109 200 109 200
issue (000)
Reconciliation between earnings and
headline earnings
(Loss) profit attributable to 898 (309 456) (655 364)
shareholders
Fair value movements, losses and (3 298) 306 876 649 611
write downs
Headline loss attributable to (2 400) (2 580) (5 753)
ordinary shareholders
Group balance sheet
28 28 31 August
February February 2001
2002 2001 R000
R000 R000
ASSETS
Non-current assets
Property, plant and equipment 713 786 801
Investments in associates 6 124 10 629 3 183
Investments 103 327 435 930 103 078
Current assets 1 870 5 943 8 403
Accounts receivable 378 1 108 503
Proceeds on sale of investments 1 492 6 000 4 800
Cash resources and short term loans - (1 165) 3 100
TOTAL ASSETS 112 034 453 288 115 465
EQUITY AND LIABILITIES
Ordinary shareholders` interest 94 297 439 307 93 399
Non-current liabilities
Convertible debentures 10 562 13 562 13 562
Current liabilities 7 175 419 8 504
Provisions and accounts payable 3 152 419 3 222
Interest bearing debt 4 023 - 5 282
TOTAL EQUITY AND LIABILITIES 112 034 453 288 115 465
Net asset value per share (cents) 86 402 86
Fully diluted net asset value per share 91 386 91
(cents) 109 200 109 200 109 200
Number of shares in issue (`000) 115 210 117 210 117 210
Diluted number of shares in issue (`000)
Cash flow statements
28 29 31
February February August
2002 2001 2001
R000 R000 R000
Cash (outflows)/inflows from operating (660) (2 996) (6 635)
activities
Cash outflows from investing activities (1 181) (67 439) (852)
Cash flows from financing activities - 2 944
-
Net movement in cash and cash equivalents (1 841) (67 491) (7 487)
Statement of changes in equity
Retained
Share Share income/
Capital Premium (Accumulated Total
R`000 R`000 Loss) R`000
R`000
Balance at 1 March 2001 1 092 171 235 266 980 439 307
Net loss for the period - - (345 908) (345 908)
Balance at 1 September 2001 1 092 171 235 (78 928) 93 399
Net income for the period - - 898 898
Balance at 28 February 2002 1 092 171 235 (78 030) 94 297
REVIEW OF RESULTS
During the period under review, Trematon`s net asset value per share
remained unchanged at 86 cents. Earnings per share for the six month period
amounted to 0,8cents which compares favourably with the loss per share of
283,4 cents incurred in the corresponding period in 2001. The headline loss
per share of 2,2 cents is a marginal improvement on the 2,4 cents per share
loss in 2001.
Trematon`s most significant asset remains its attributable shareholding in
Intec Telecom Systems PLC ("Intec"), held indirectly by Mican Limited. Intec
is a leading worldwide operations support systems vendor for fixed, mobile
and internet protocol/next generation telecom networks. Whilst the Intec
share price fell from 0,83 at 31 August 2001 to 0,63 at 28 February 2002,
this reduction was more than offset by the devaluation of the Rand against
other major currencies during the period which resulted in the positive
investment valuation adjustment of R3,3m.
Intec`s interim results for the six months ended 31 March 2002 are
encouraging. Turnover for the period increased 61% to 23,2m (2001 : 14,4
million). This translated into positive EBITDA of
755 000, which assisted Intec retaining a strong cash position, ending the
period with 11million in cash. Intec recorded 47 new contract wins,
including customers in Africa, Australia, Brazil, India, Ireland, Jamaica,
Malaysia, Switzerland, and the USA. Intec`s business pipeline for the
remainder of this year is solid and its Directors are confident of it
achieving market expectations for the full year.
During the period, Generation Clothing performed well, increasing revenues
and profitability through exports. Digitot launched commercial models of its
alcohol spirit and draught beer dispensers following lengthy field trials.
Whilst these products have gained favourable market response, the cost of
establishing Digitot`s distribution network has primarily been the cause of
the loss of R1,289m incurred by associated companies.
Trematon has disposed of its 40% shareholding in software developer Equis
Holdings (Pty) Ltd to the Equis management for a nominal consideration. This
investment had been written off in full in 2001.
ACCOUNTING POLICIES
The financial statements of the group comply in all material respects with
South African Statements of Generally Accepted Accounting Practice and, are
consistent with those applied in the previous financial year.
PROSPECTS
Trematon`s asset value is closely linked to the price of Intec shares on the
London Stock Exchange. Intec`s board is at present cautiously optimistic
about Intec`s performance, particularly as it currently has visibility in
excess of 85% of expected full year revenues. Market conditions in the
telecoms sector and the prevailing negative sentiment towards it have
impacted the Intec share price adversely. However, whilst reports from many
companies in the sector in the past six months have been mixed and there
remain substantial problems in the industry, some industry operators,
including Intec, believe that signs of recovery are visible.
By order of the board
CW GARVIE
SECRETARY
27 May 2002
Registered office Postal address
The Manor House PO Box 712
14 Nuttall Gardens Durban
Morningside 4000
4001
Telephone: 031-3039667
Fax: 031-3039694
Directors: NA Labuschagne (Chairman), RB McElligott (CEO), P Ditz, M
Farrer, MG Meehan, AJF Mundell, RE Sherrell
Date: 29/05/2002 07:30:00 AM Produced by the SENS Department
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