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ISA- Unaudited results: six months ended 31 August 2006 and dividend declaration

Release Date: 04/09/2006 11:13
Code(s): ISA
Wrap Text

ISA- Unaudited results: six months ended 31 August 2006 and dividend declaration ISA Holdings Limited (Formerly Y3K Group Limited) ("ISA" or "the company") (Registration number: 1998/009608/06) JSE share code: ISA (formerly YHK) ISIN code: ZAE000067344 (formerly ZAE000017208) UNAUDITED RESULTS FOR THE SIX MONTHS ENDED 31 AUGUST 2006 AND DIVIDEND DECLARATION 31-Aug-06 31-Aug-05 28-Feb-06 6 months 6 months year ended ended ended Unaudited Unaudited Audited
R"000s R"000s R"000s GROUP INCOME STATEMENT Revenue 21,874 18,277 37,935 Cost of goods sold (11,962) (10,421) (21,450) Gross profit 9,912 7,856 16,485 Other income 367 212 153 Selling and marketing costs (2,113) (2,611) (4,834) Administrative expenses (2,296) (2,680) (4,864) Operating profit 5,870 2,777 6,940 Finance income - net 374 181 472 Share of profit from associate 0 0 37 Profit before tax 6,244 2,958 7,449 Tax (expense)/reversal (963) (325) 30 Profit attributable to Shareholders 5,281 2,633 7,479 GROUP BALANCE SHEET ASSETS Non-current assets 8,641 6,130 8,589 - Tangible assets 546 344 494 - Intangible assets 6,367 4,863 6,367 - Share incentive trust 953 923 953 - Deferred tax asset 775 0 775 Current assets 41,494 14,648 20,519 - Cash and cash equivalents 34,245 7,636 11,899 - Inventories 46 41 46 - Trade and other receivables 7,203 6,971 8,574 Total assets 50,135 20,778 29,108 EQUITY Capital and reserves 40,619 14,492 21,158 - Share capital 1,926 1,300 1,300 - Share premium 35,645 14,387 14,387 - Non-distributable reserve 3,021 3,021 3,021 - Retained earnings/(loss) 27 (4,216) 2,450 LIABILITIES Current liabilities 9,516 6,286 7,950 - Trade and other payables 9,152 6,286 7,649 - Provisions 364 0 301 Total equity and liabilities 50,135 20,778 29,108 GROUP CASH FLOW STATEMENT Cash flows from operating Activities 7,934 2,980 6,452 Cash flows from investing activities 232 104 570 Cash flows from financing activities14,180 (380) (55) Net increase in cash & cash equivalents 22,346 2,704 6,967 Cash and cash equivalents at beginning of the period 11,899 4,932 4,932 Cash and cash equivalents at end of the period 34,245 7,636 11,899 GROUP STATEMENT OF CHANGES IN EQUITY Share Capital and reserves Balance at beginning of the period 21,158 14,459 16,279 Shares issued during the period at par value 626 0 0 Share premium on shares issued 21,258 0 0 Net profit for the period 5,281 2,633 7,749 Dividends paid (7,704) (2,600) (2,600) Balance at the end of the period 40,619 14,492 21,158 RECONCILIATION OF EARNINGS AND HEADLINE EARNINGS Earnings as per income statement 5,281 2,633 7,479 Impairment of intangible assets 0 714 464 Headline earnings 5,281 3,347 7,943 ORDINARY SHARES Earnings per share (cents) 2.7 2.0 5.8 Earnings per share excluding STC (cents) 3.2 2.3 6.0 Headline earnings per share (cents) 2.7 2.6 6.1 Headline earnings per share excluding STC (cents) 3.2 2.8 6.4 Number of shares in issue ("000s) 192,593 130,000 130,000 Net asset value per share (cents) 21.1 11.1 16.3 Net tangible asset value per share (cents) 17.8 7.4 11.4 DIVIDEND DECLARATION Notice is hereby given that the directors declare ordinary dividend number 3, of 2 cents per share, the salient dates are as follows: Dividend declaration date: Monday, 5 September 2006 Last day to trade "cum" the dividend: Friday, 29 September 2006 Date trading commences "ex" the dividend: Monday, 2 October 2006 Record date: Friday, 6 October 2006 Date of payment: Monday, 9 October 2006 Shareholders may not dematerialise or rematerialise their shares between Monday 2 October 2006 and Friday 6 October 2006, both days inclusive. HIGHLIGHTS Headline Earnings (excluding STC) up 70% Headline Earnings up 58% Earnings (excluding STC) up 111% Earnings up 100% Revenue up 20% Cash on hand per share 17.8 cents COMMENTS The six months under review has been a successful period for ISA, with the highlight being the conclusion of our BEE deal, which resulted in our new partners holding 32.5% of the Group"s equity. The results have been pleasing with healthy organic growth achieved in each line of business. Management"s objective of matching profits with tangible cash-on-hand was achieved for the period. Strong growth in earnings, represented by an increase in earnings per share of 35% to 2.7 cents, even after the dilution from the issue of new shares to ISA"s BEE partners during the period. These results illustrate ISA"s ability to apply rigorous financial management principles to every aspect of the business. ACCOUNTING POLICIES These results have been prepared on a going concern basis, using accounting principles and policies that comply with International Financial Reporting Standards (IFRS), and are consistent with the previous period. DIVIDEND DECLARATION It is the Group"s policy to distribute excess cash, which is not required for working capital, to shareholders by way of a dividend. An interim dividend of 2 cents per share is hereby declared as of 5 September 2006 to all shareholders on record date Friday the 29th of September 2006 and payable on Monday the 2nd of October 2006. BOARD APPOINTMENTS It is anticipated that at the General Meeting of shareholders, to be held on Friday the 29th of September 2006, that J. Phiri, A. Naidoo and A. Maren will be appointed as non-executive directors of ISA, with J. Phiri being appointed as the non-executive chairperson. This will result in the Board comprising of 62.5% non-executive and 50% black directors, thereby achieving the Group"s board transformation and corporate governance objectives. PROSPECTS The ISA management team is confident in their ability to achieve organic growth and remain committed to building the sub-Sahara African information security market. Focus, passion and innovation are ingredients within the company that management believes will underpin success. For and on behalf of the board. Clifford Katz Chief Executive Officer 5 September 2006 Designated advisor: Exchange Sponsors (Pty) Ltd In accordance with the AltX Listings Requirements, shareholders are advised of the risks of investing in a company listed on AltX and are advised that the JSE does not guarantee the viability or the success of a company listed on AltX. In terms of JSE Listings requirements a Designated Adviser has to be retained by the company. The Designated Adviser is required to, inter alia, attend all board meetings held by the company to ensure that all JSE Listings Requirements and applicable regulations are complied with, approve the financial director of the company and guide the company in a competent, professional and impartial manner. If the company fails to retain a Designated Adviser it must make arrangements to appoint a new Designated Adviser within 10 business days, failing which the company faces suspension of trading of its securities. If a Designated Adviser is not appointed within 30 days of its suspension the company faces the termination of its listing without an offer to minorities. Date: 04/09/2006 11:13:09 AM Supplied by www.sharenet.co.za Produced by the JSE SENS Department

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