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Labat - Reviewed Interim Results for the six months ended 31 August 2006

Release Date: 30/11/2006 16:00
Code(s): LAB
Wrap Text

Labat - Reviewed Interim Results for the six months ended 31 August 2006 Labat Africa Limited (Incorporated in the Republic of South Africa) (Registration number 1986/001616/06) Share code: LAB & ISIN: ZAE000018354 ("Labat" or "the group") Reviewed Interim Results for the six months ended 31 August 2006 GROUP CONSOLIDATED INCOME STATEMENT Reviewed Unaudited Audited 6 months 6 months 12 months 31 August 31 August 28 February 2006 2005 2006
(R"000) (R"000) (R"000) Revenue 76 704 83 016 156 046 Operating income before 19 193 18 274 40 976 depreciation and amortisation Depreciation and amortisation (9 201) (11 684) (20 158) Operating profit before interest 9 992 6 590 20 818 and taxation Interest paid (2 675) (2 473) (5 956) Interest received 178 63 213 Profit before taxation, sale and 7 495 4 180 15 075 fair value adjustments Sale of investments and fair - 18 255 (5 746) value adjustments Profit before taxation 7 495 22 435 9 329 Taxation (4 454) (8 070) (12 847) Profit/(Loss) after taxation 3 041 14 365 (3 518) Attributable to: Minority Interest 7 460 8 877 15 733 (Loss)/ Profit to equity holders (4 419 5 488 (19 251) 3 041 14 365 (3 518)
Weighted average shares in issue 186 415 184 415 184 915 throughout the period (`000) Basic (loss)/profit per share (2.4) 2.9 (10.3) (cents) Headline(loss)/profit per share (2.4) 1.7 (7.3) (cents) Reconciliation of basic to headline earnings Basic earnings/ (loss) (4 419) 5 488 (19 251) Profit on sale of fixed assets - - (42) Loss on sale of subsidiary - - 5 743 Profit on sale of subsidiary - (2 310) - Headline earnings /(loss) (4 419) 3 178 (13 550) CASH FLOW STATEMENT Reviewed Unaudited Audited 31 August 31 August 28
2006 2005 February2006 (R"000) (R"000) (R"000) Net flow from operating 7 427 16 889 1 390 activities Net flow from investing (12 365) (8 575) 1 844 activities Net flow from financing 10 420 (1 196) 5 683 activities Net increase/(decrease) in cash 5 482 7 118 8 917 Cash at beginning of period 12 212 3 295 3 295 Cash at end of period 17 694 10 413 12 212 GROUP CONSOLIDATED BALANCE SHEET Reviewed Unaudited Audited 31 August 31 August 28 February 2006 2005 2006 (R"000) (R"000) (R"000)
ASSETS Property, plant and equipment 49 461 45 347 43 463 Intangible assets 28 242 31 733 31 076 Other financial assets 8 109 10 539 9 696 Deferred taxation 22 447 21 980 21 713 Non-current assets 108 259 109 599 105 948 Cash 17 694 10 413 12 212 Inventories 14 731 15 003 13 454 Accounts receivables 45 948 62 629 42 179 Current assets 78 373 88 045 67 845 Total assets 186 632 197 644 173 793 EQUITY AND LIABILITIES Share capital and reserves 43 352 75 366 49 147 Outside shareholders 22 214 17 641 16 549 Total shareholders" funds 65 566 93 007 65 696 Long-term liabilities 49 100 28 134 35 020 Deferred taxation 1 381 1 784 1 698 Non-current liabilities 50 481 29 918 36 718 Bank overdraft 86 5 698 5 Accounts payable 70 499 69 021 71 374 Current liabilities 70 585 74 719 71 379 Total equity and liabilities 186 632 197 644 173 793 Number of shares in issue ("000) 186 415 184 415 184 415 Total net asset value per share 23 41 27 (cents) STATEMENT OF CHANGES IN EQUITY Non Capital Share Share Distributable Distributable and
capital Premium Reserves Reserves Reserves (R"000) (R"000) R"000) (R"000) (R"000) Balance at 01 1 864 49 065 2 420 (4 202) 49 147 March 2006 Prior year - - - (1 376) (1 376) adjustment Loss for the - - - (4 419) (4 419) year Balance at 31 1 864 49 065 2 420 (9 997) 43 352 August 2006 COMMENTARY SAMES The SAMES business, one of the two main core businesses of Labat, is still facing trading difficulties. Revenue has not yet reached break even point and profitability is not expected to be achieved until the first half of 2007. A major project to upgrade the SAMES capacity has just been completed and a significant trading contract is being implemented and will be rolled out in 2007. Labat Traffic Solutions and cautionary announcements The Labat Traffic Solutions business, a core business of Labat, is performing well and is continuing to win new contracts. Labat Traffic Solutions is continuously refining its service offering and can now offer a comprehensive service to its customers. As indicated in the cautionary announcement dated 29 September 2006 and subsequent renewal of cautionary announcements, Labat is still in negotiations aimed at extracting maximum value from its Labat Traffic Solutions related investments. Ongoing Restructuring The restructuring process is virtually complete and will be finalised by February 2007. The group will then be left with two operating companies, no group corporate debt and a minimal head office structure. The objective then will be to extract maximum value from these two remaining businesses. Accounting Policies The interim results have been prepared in accordance with the group"s accounting policies which have been consistently applied and comply with International Financial Reporting Standards ("IFRS") and IAS 34 (Interim Financial Reporting). Corporate Governance The group subscribes to the values of good corporate governance at all levels and is committed to conducting business with discipline, integrity and social responsibility. Dividends It is group policy that no dividends will be declared as group surpluses will be retained to fund future growth. Reviewed opinion/emphasis of matter The group"s auditors, RAIN, have reviewed the results and accordingly the emphasis of matter noted in the audited financial statements as at 28 February 2006 is no longer required. The unqualified review opinion is available for inspection at the group"s registered office. For and on behalf of the board B G VAN ROOYEN Chairman 30 November 2006 Directors: B G van Rooyen, D J O"Neill, M J Shabangu*, V J Labat* * Non-executive Registered Office Island House Constantia Park Centre Corner 14th Avenue and Hendrik Potgieter Road Weltevreden Park 1709 Transfer secretaries Computershare Investor Services 2004 (Proprietary) Limited 70 Marshall Street Johannesburg 2001 P O Box 61051 Marshalltown, 2107 Sponsor Merchant Sponsors (Proprietary) Limited Date: 30/11/2006 04:00:19 PM Supplied by www.sharenet.co.za Produced by the JSE SENS Department

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