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TREMATON - REVIEWED RESULTS FOR THE YEAR ENDED 31 AUGUST 2004
TREMATON CAPITAL INVESTMENTS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1997/008691/06)
Share code: TMT
ISIN: ZAE000013991
("Trematon" or "the company")
REVIEWED RESULTS FOR THE YEAR ENDED 31 AUGUST 2004
GROUP BALANCE SHEET
Reviewed Audited
2004 2003
R"000 R"000
ASSETS
Non-current assets 66 879 37 227
Investments
Listed 54 946 -
Loans and unlisted investments 11 933 37 227
Current assets 140 141
Accounts receivable - -
Taxation 76 76
Cash and short-term loans 64 65
Total assets 67 019 37 368
EQUITY AND LIABILITIES
Ordinary shareholders" interests 46 080 31 854
Current liabilities 20 939 5 514
Accounts payable 565 328
Interest-bearing debt 20 37 4 5 186
Total equity and liabilities 67 019 37 368
Net asset value per share (cents) 44 30
Number of shares in issue at 31 August (000) 105 168 105 168
GROUP INCOME STATEMENT
Reviewed Audited
2004 2003
R"000 R"000
Net interest paid (563) (763)
Foreign exchange profit 678 -
Operating costs (685) (1 626)
- net management expense (294) (1 221)
- listing, statutory and professional costs (391) (405)
Loss from operations (570) (2 389)
Investment valuation adjustments 14 796 13 978
Profit before taxation 14 226 11 589
Taxation expense - -
Profit after taxation 14 226 11 589
Share of loss of associates - (3 011)
Profit for the year 14 226 8 578
Reconciliation between profit and headline profit
Profit attributable to shareholders 14 226 8 578
Profit on disposal of investments - 1 860
Headline profit attributable to shareholders 14 226 6 718
Headline profit per share (cents) 13,5 6,4
Profit per share (cents) 13,5 8,2
Weighted average number of shares in issue (000) 105 168 105 168
*Investment valuation adjustments
- Profit on disposal of investments - 1 860
- Market valuation adjustments 14 796 12 118
14 796 13 978
GROUP CASH FLOW STATEMENT
Reviewed Audited
2004 2003
R"000 R"000
Cash flows from operating activities
Cash generated/(absorbed) by operations (230) (1 158)
Taxation refund - 102
Net finance cost (563) (763)
Net cash (outflow)/inflow from operating
activities (793) (1 819)
Cash flows from operating activities
Cash generated/(absorbed) by operations 230 (1 158)
Taxation refund - 102
Net finance cost (563) (763)
Net cash outflow from operating activities (333) (1 819)
Net cash inflow from financing activities 15 189 5 186
Net cash outflow from investing activities ( 14 857) (220)
Net (decrease)/increase in cash and cash
equivalents ( 1 ) 3 147
Cash and cash equivalents at beginning of year 65 (3 082)
Cash and cash equivalents at end of year 64 65
STATEMENT OF CHANGES IN EQUITY
Share Share Accumulated
capital premium loss Total
Group R"000 R"000 R"000 R"000
Balance at 1 September 2002 1 052 163 211 (140 987) 23 276
REVIEW OF RESULTS
During the year under review, Trematon"s net asset value per share increased
from 30 cents to 44 cents primarily as a result of the rise in the share price
of Intec Telecom Systems Plc ("Intec"). The headline profit per share for the
period of 13,5 cents compares with the headline profit of 6,4 cents for the
year ended 31 August 2003.
The restructuring of the funding requirements and arrangements between the
shareholders of Mican Limited ("Mican"), the investment company which
previously held Trematon"s attributable Intec shareholding, was completed
during December 2003. Pursuant to this restructuring, Trematon and the other
Mican shareholders have repaid Mican"s debt and now directly own their Intec
shares. Consequently 8,8 million shares in Intec are owned directly by
Trematon"s wholly owned subsidiary, Prygate International Limited and
Trematon"s interest bearing debt has increased to R20,4 million.
Trematon is now also in a better position than it was prior to the Mican
restructuring in that it now directly controls its shareholding in Intec.
Trematon"s assets now comprise:
- 8,8 million Intec shares;
- a Rand-denominated, interest bearing claim on loan account against Mican,
which will be repaid from the proceeds of the repayment of a Rand-denominated,
interest bearing, secured loan advanced by Mican which is repayable by
December 2008.
Intec"s results for its third quarter ended on 30 June 2004 were most
encouraging. Revenue of GBP46,9 million was up 41% on the same period the
previous year and the adjusted EPS of 1,44p was 172% higher than the EPS of
0,53p in the comparable period to 30 June 2004.
On 4 August 2004, Intec announced an offer and placing of 31,2 million new
ordinary shares in the company at a price of 58p each, to raise GBP18 million to
increase its cash resources.
On 31 August 2004, Intec announced that it had successfully completed the US
$74,5 million acquisition of the Singl.eView retail billing software division
from ADC Telecommunications, Inc. The purchase consideration was settled by a
placement of 60 429 167 Intec shares at a price of 63,9p and the payment of US
$3,5 million in cash. The Singl.eView product line which is widely regarded to
be one of the top retail billing solutions available, is in use at over 70 Tier
1 and Tier 2 telcom couriers in 17 countries. The deal doubles Intec"s staff to
1 300 people based in 26 offices worldwide and Intec now has the three key
revenue generating Operating Support Systems ("OSS") applications: retail,
interconnect and content, plus three critical network facing OSS, convergent
mediation, service activation and real time charging.
PROSPECTS
The future value of Trematon is dependent mainly on the price of Intec shares.
Intec is cautiously confident of settling down its latest acquisitions and
achieving its full year expectations particularly as there is evidence of a
slow but steady recovery in the business sector in which it operates.
ACCOUNTING POLICIES
The financial statements of the group comply with South African Statements of
Generally Accepted Accounting Practice and are consistent with those applied in
the previous financial year.
REVIEW BY AUDITORS
The company"s auditors, KPMG Inc. have reviewed these results. Their review
opinion is available for inspection at the company"s registered office.
APPROVAL BY DIRECTORS
The directors of Trematon have approved the reviewed results for the year ended
31 August 2004.
By order of the board
CW Garvie
Secretary
16 November 2004
Registered office:
The Manor House
14 Nuttall Gardens
Morningside, 4001
Postal address:
PO Box 712
Durban, 4000
Tel: 031 303 9667
Fax: 031 312 1989
Directors: NA Labuschagne (Chairman), RB McElligott (CEO),P Ditz,
M Farrer, MG Meehan, AJF Mundell, RE Sherrell
Transfer Secretaries: Computershare Investor Services 2004 (Pty) Ltd
70 Marshall Street
Johannesburg, 2001
Sponsor
EXCHANGE
Date: 16/11/2004 05:15:05 PM Supplied by www.sharenet.co.za
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