To view the PDF file, sign up for a MySharenet subscription.

ISA - ISA Holdings Limited - Abridged audited results and dividend declaration

Release Date: 31/05/2007 16:12
Code(s): ISA
Wrap Text

ISA - ISA Holdings Limited - Abridged audited results and dividend declaration ISA Holdings Limited ("ISA") (Registration number: 1998/009608/06) JSE share code: ISA ISIN code: ZAE000067344 ABRIDGED AUDITED RESULTS FOR THE YEAR ENDED 28 FEBRUARY 2007 AND DIVIDEND DECLARATION 2007 2006 R`000s R`000s GROUP INCOME STATEMENT Revenue 43,934 37,935 Cost of goods sold (23,186) (21,450) Gross profit 20,748 16,485 Other income 859 153 Selling and marketing costs (5,352) (4,834) Administrative expenses (5,093) (4,864) Operating profit 11,162 6,940 Finance income - net 2,320 472 Share of profit from associate - 37 Profit before taxation 13,482 7,449 Taxation (2,914) 30 Profit attributable to shareholders 10,568 7,479 GROUP BALANCE SHEET ASSETS Non-current assets 8,024 8,589 - Tangible assets 533 494 - Intangible assets 6,367 6,367 - Share trust 498 953 - Deferred tax 626 775 Current assets 46,644 20,519 - Cash and cash equivalents 37,908 11,899 - Inventories (trading stock) 49 46 - Trade and other receivables 8,687 8,574 Total assets 54,668 29,108 EQUITY Capital and reserves 42,054 21,158 - Share capital and share premium 37,571 15,687 - Non-distributable reserve 3,021 3,021 - Retained earnings 1,462 2,450 LIABILITIES Long term liabilities 2,679 0 - Loan 2,642 0 - Deferred tax 37 0 Current liabilities 9,935 7,950 - Trade and other payables 7,267 7,649 - Receiver of revenue 1,283 0 - Provisions 1,385 301 Total equity and liabilities 54,668 29,108 GROUP CASH FLOW STATEMENT Cash flows from operating activities 10,187 6,452 Cash flows from investing activities 2,852 570 Cash flows from financing activities 12,970 (55) Net increase in cash and cash equivalents 26,009 6,967 Cash and cash equivalents at beginning of year 11,899 4,932 Cash and cash equivalents at end of year 37,908 11,899 GROUP STATEMENT OF CHANGES IN EQUITY Balance at beginning of the year 21,158 16,279 Net profit for the year 10,568 7,479 New shares issued during the year 21,884 0 Dividends paid during the year (11,556) (2,600) Balance at the end of the year 42,054 21,158 RECONCILIATION OF EARNINGS AND HEADLINE EARNINGS Earnings as per income statement 10,568 7,479 Impairment of goodwill 0 464 Capital profit on disposal of investment (355) 0 Headline earnings 10,213 7,943 ORDINARY SHARES Earnings per share (cents) 6.2 5.8 Headline earnings per share (cents) 5.9 6.1 Weighted average number of shares in issue (`000s) 171,728 130,000 Net asset value per share (cents) 21.8 16.3 Net tangible asset value per share (cents) 18.5 11.4 Number of shares in issue at year end (`000s) 192,593 130,000 BASIS OF PREPARATION The annual financial statements of the Group have been prepared in accordance with International Financial Reporting Standards (IFRS) with the date of transition to IFRS being 1 March 2005. The annual financial statements have been prepared under the historical cost convention, as modified by the revaluation of tangible and intangible assets to fair value and have been prepared on a going- concern basis. AUDITORS` OPINION The Group`s auditors, Levenstein and Partners, have audited these results and a copy of their unmodified audit opinion as well as their accompanying unmodified audit report is available at the Company`s registered office. DIVIDEND DECLARATION AND CAPITAL REPAYMENT Notice is hereby given that the directors declare ordinary dividend number 4, of 1.1 cents per share, to be ratified at the Annual General Meeting, to be held on 29 June 2007. Notice is hereby given that the directors propose a capital repayment out of share premium of 3.9 cents per share, to be approved by shareholders at the Annual General Meeting to be held on Friday the 29th of June 2007 at 10:00am. The salient dates for the capital and dividend distributions ("distributions") are as follows: Distributions declaration date: Thursday, 31 May 2007 Distributions finalisation date: Friday, 29 June 2007 Last day to trade "cum" the distributions: Friday, 6 July 2007 Date trading commences "ex" the distributions: Monday, 9 July 2007 Record date: Friday, 13 July 2007 Date of payment: Monday, 16 July 2007 Shareholders may not dematerialise or rematerialise their shares between Monday 9 July 2007 and Friday 13 July 2007, both days inclusive. In terms of the requirements of the Companies Act No. 61 of 1973, the directors confirm that, after the cash capital and dividend distributions, ISA Holdings Limited will be able to pay its debts as they become due in the ordinary course of business, and that its consolidated assets, fairly valued, will exceed its consolidated liabilities. COMMENTS The Group has delivered a strong trading performance driven by consistent sales growth throughout the year. I am pleased that these results comprise of over 50% annuity income with healthy margins, demonstrating the strength and quality of the underlying business. I remain confident in our ability to grow shareholder value and to continue to generate profits with matching increases in cash balances. As the digital world grows and becomes more and more connected and distributed, users increasingly need to be aware of viruses, worms, and malicious hackers, as well as missed software patches, neglected backup schedules, policy non- compliance and other self-inflicted errors that compromise important corporate information. Today business faces all of these challenges, as well as growing threats from sophisticated criminals who use email phishing, spoofing and phoney websites to steal money, personal identities and corporate secrets. It is no longer enough to secure computers within the network - today the digital interactions themselves need to be protected from attacks, disruptions and misuse. Without protection, these risks can rapidly foster doubt, uncertainty and a lack of confidence in the information itself. It is for this reason that an investment in data protection and IT security is vital to the sustainability of modern business. ISA develops, markets and supports a wide range of security solutions, including software, hardware and a host of specialised services. Our broad range of offerings is specifically designed with a unified architecture platform, together with centralised management and distributed enforcement. Configured with real-time security updates and embedded anomaly detection, our solutions are able to effectively identify and mitigate these new world risks. These results reflect meaningful growth in all key performance areas. Turnover increased by 16% to R44 million and gross margins increased to 47% from 43%. The net effect on the bottom line was further enhanced by stringent cost control resulting in a modest increase in operating expenditure of 9%. Earnings increased by 41% to R10.6 million, which translated into earnings per share of 6.2 cents. This was achieved after taking into account a maiden R1.3 million current income tax expense, as well as the 48% dilution from the issue of 62,592,953 new shares to our BEE partner. The issue of new shares during the period, together with robust operational cash flows, resulted in our significant cash holding of R38 million at year end. Further increases in net tangible asset value, by 62% to 18.5 cents per share, was achieved after accounting for dividends paid during the period of 6 cents per share. ISA should be able to sustain its organic growth objectives with little impact to its capital structures. In this light and in support of the directors` opinion that surplus cash should be distributed to shareholders, the board of directors declares an ordinary dividend of 1.1 cents per share. The board of directors also recommends that a capital distribution of 3.9 cents per share, to be approved by shareholders at the Annual General Meeting to be held on Friday the 29th of June 2007 at 10:00am. During the period under review, dividend number 2, of 4 cents per share and a maiden interim dividend, dividend number 3, of 2 cents per share were declared and paid. Secondary tax on companies of R1.4 million has been accounted for and paid in respect of these dividends. Management remains determined to build a trusted information security brand and to create tangible value for all stakeholders. Vigilant cost controls, innovative offerings and a persistent focus on high-profit service delivery remain our priority. The essential part of our growth strategy is investment in organic growth, where we can build and enhance our existing capabilities. We do however continue to look for strategic activities to complement our existing business and to eliminate inefficiencies by further improving our internal systems. While a healthy business environment continues into the new financial year, we are mindful of the national skills shortage within the ICT industry and the effect on our earnings from the full tax rate. I look forward to the future, confident that our niche IT security focus, distinctive offering and motivated team will enable ISA to take advantage of growth opportunities as they occur. On behalf of the board, I would like to take this opportunity to thank our employees who have been unfailing in their efforts to reach targets set. My gratitude also extends to our shareholders and business partners for their continued support and confidence. For and on behalf of the board: Clifford Katz Chief Executive Officer Randburg 31 May 2007 Designated advisor: Exchange Sponsors (Pty) Ltd Date: 31/05/2007 16:12:00 Supplied by www.sharenet.co.za Produced by the JSE SENS Department.

Share This Story