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Labat Africa Limited - Audited results for the year ended 28 February 2003 Labat Africa Limited (Incorporated in the Republic of South Africa) Share code: LAB ISIN: ZAE000018354 (Registration number 1986/001616/06) ("the company" or "the group") AUDITED results for the year ended 28 February 2003 * THE POWER TO DELIVER GROUP CONSOLIDATED INCOME STATEMENT Audited Audited 12 months 12 months 28-Feb-03 28-Feb-02
R"000 R"000 Revenue 244 930 224 204 Net operating income before depreciation 40 132 52 812 Depreciation (8 028) (4 504) Net operating income before interest and taxation 32 104 48 308 Interest paid (11 957) (7 708) Interest received 1 291 760 Net income before taxation 21 438 41 360 Taxation 12 994 (607) Net income after taxation 34 432 40 753 Attributable to outside shareholders (1 815) (2 751) Income attributable to ordinary shareholders 32 617 38 002 Shares in issue throughout year ("000) 184 415 184 903 Basic/headline earnings per share (cents) 17,7 20,6 GROUP CASH FLOW STATEMENT Year ended Year ended
28-Feb-03 28-Feb-02 Net flow from operating activities 6 799 31 981 Net flow from investing activities (41 161) (5 394) Net flow from financing activities 17 305 7 762 Net (decrease)/increase in cash (17 057) 34 349 Cash at beginning of year 39 612 5 263 Cash at end of year 22 555 39 612 GROUP CONSOLIDATED BALANCE SHEET Audited Audited 12 months 12 months 28-Feb-03 28-Feb-02 R"000 R"000
ASSETS Fixed assets 54 128 25 514 Investments 37 953 28 446 Deferred taxation 15 251 703 Non-current assets 107 332 54 663 Cash 22 555 39 612 Inventories 35 417 34 443 Instalment sale debtors 94 221 82 891 Trade and other receivables 21 947 27 639 Current assets 174 140 184 585 Total assets 281 472 239 248 EQUITY AND LIABILITIES Share capital and reserves 153 553 122 318 Outside shareholders 6 263 4 043 Total shareholders" funds 159 816 126 361 Long-term liabilities 22 874 9 755 Deferred taxation 11 670 10 576 Non-current liabilities 34 544 20 331 Bank overdraft 14 827 14 196 Instalment sale finance 35 411 26 759 Accounts payable 36 874 51 601 Current liabilities 87 112 92 556 Total equity and liabilities 281 472 239 248 Number of shares in issue ("000) 184 415 184 903 Tangible net asset value per share (cents) 66,8 51,9 STATEMENT OF CHANGES IN EQUITY Share Share Distributable Capital and capital premium reserves reserves
R"000 R"000 R"000 R"000 Balance 28 February 2002 1 849 49 090 70 379 121 318 Adjustment to the begin of prior year - - 364 364 Prior year adjustment - - 636 636 Sub-total 1 849 49 090 71 379 122 318 Surplus for year - - 32 617 32 617 Write-off of loan to share incentive scheme - (1 142) - (1 142) Share buy-back from share incentive scheme (5) (235) - (240) Balance 28 February 2003 1 844 47 713 103 996 153 553 COMMENTARY AND REVIEW OF RESULTS This has been a difficult trading year, particularly for exporting businesses because of the recent volatility of the Rand and similarly for credit retail businesses because of high interest rates and for IT businesses. We are involved in all of these businesses so it is gratifying to be able to report another solid year of profits, together with good progress in the overall development of the business. The year ahead is also going to be tough in international markets which, although not in recession, are forecasting marginal growth. Interest rates are forecast to reduce by some three percentage points in the year ahead and the dollar, at four year lows, has reached its nadir and is forecast by most analysts to strengthen against the Rand in the year ahead. Turnover grew by 9% to R244,9 million. Earnings before depreciation reduced by 24% to R40,1 million. This includes a forex loss of R5,1 million as opposed to a forex gain of R10,1 million in the previous year. Basic earnings per share were therefore reduced by 14% to 17,7 cents. The higher interest and depreciation charge is mainly due to the higher interest rate environment and the investment in fixed assets. Included in the taxation charge for the year is a non-recurring deferred taxation benefit of R13,9 million based upon the amount of the usable assessed losses brought forward. Tangible net asset value increased by 29% to 66,8 cents per share. Some 488 600 shares were purchased by the company in terms of a share buy-back arrangement relating to the employee incentive scheme. The growth in investments was to expand the IT division. SAMES has again performed well despite the current Rand volatility. We will develop new markets this year, particularly the Americas. We have invested R28,6 million in new plant, which demonstrates our confidence in the future prospects of the business. LABAT TRAFFIC SOLUTIONS is expanding its market share nationally. We have won several new contracts and are currently rolling these out. We are also exploring opportunities in neighbouring countries. We are delighted that we have acquired a 51% stake in Total Computer Systems (Pty) Ltd, a local software house, which provides traffic systems and back office support to some 150 sites countrywide and welcome them on board. LABAT PROFESSIONAL SERVICES Our consulting business has increased its capacity by developing partnering agreements which allow us to offer a full range of solutions to our client base. Our IT business is developing well. We have just signed a master reseller agreement with SSA Global Technologies ("SSAGT") for all of sub-Saharan Africa. SSAGT is a major player in the International ERP market and has a dynamic and large customer base in Africa. LABAT RETAIL - Acme Stores has done well in the past year despite the travails of the industry. We continue to improve the business model, our objective being to reduce our dependence on credit sales. We have just completed agreements which will see us selling a range of fitted kitchen units and floor coverings through our shops. Several similar arrangements are being negotiated. ACCOUNTING POLICIES During the year the company changed its policy for the accounting of equipment held under rental agreements from a pure rental basis of accounting, to finance leases. The effect is to increase attributable income in the current year by R1,2 million, in the prior year by R0,6 million and in the previous year by R0,4 million. Comparative figures have been restated. Except for the above, the accounting policies applied are consistent with those applied in the previous year and are in compliance with the South African Statements of GAAP. AUDIT OPINION Our auditors have issued their opinion for the year ended 28 February 2003. A copy of their unqualified report is available for inspection at the company"s registered office. CORPORATE GOVERNANCE The group subscribes to the values of good corporate governance at all levels and is committed to conduct business with discipline, integrity and social responsibility. DIVIDENDS It is company policy that no dividends will be declared as group surpluses will be retained to fund future growth. For and on behalf of the board B G VAN ROOYEN Group Chief Executive 27 May 2003 Registered office: Transfer Secretaries: Island House Computershare Investor Services Limited Constantia Park Centre 70 Marshall Street Corner 14th Avenue & Hendrik Johannesburg Potgieter Road 2001 Weltevreden Park, 1709 PO Box 62053 Marshalltown, 2107 Sponsor Brait S.A. Date: 26/05/2003 03:12:31 PM Supplied by www.sharenet.co.za Produced by the JSE SENS Department
