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LAB - Labat Africa - Reviewed Interim Results For The Six Months Ended 31 August 2007 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 2007 GROUP CONSOLIDATED INCOME STATEMENT Reviewed Unaudited Audited 6 months 6 months 12 months 31 31 August 28
August 2006 February 2007 2007 (R`000) (R`000) (R`000) Revenue 90 806 76 704 163 271 Operating income before depreciation 21 309 19 193 33 788 and amortisation
Depreciation and amortisation (10 304) (9 201) (18 758) Operating profit before interest and 11 005 9 992 15 030 taxation Interest paid (3 180) (2 675) (6 637) Interest received 273 178 1 425 Profit before taxation, fair value 8 098 7 495 9 818 adjustments and exceptional items
Fair value adjustments and - - (29 728) exceptional items Settlement of third party guarantee - - (7 500) Impairment of investment - - (1 443) Impairment of goodwill - - (17 810) Fair value adjustment to financial - - (2 975) asset
Profit/(Loss) before taxation 8 098 7 495 (19 910) Taxation (3 345) (4 454) (32 206)
Profit/(Loss) after taxation 4 753 3 041 (52 116) Attributable to: Minority shareholders (5 756) (7 460) (12 812)
Equity shareholders (1 003) (4 419) (64 928) Shares in issue throughout the 186 415 186 415 186 415 period (000) Basic loss per share (cents) (0,5) (2,4) (34,8) Headline profit/(loss) per share (0,6) (2,4) (20,5) (cents) Notes to the financial statements 1) Reconciliation of basic to headline earnings
Basic Loss (1 003) (4 419) (64 928) Impairment of goodwill - - 17 810 Profit on sale of fixed assets (63) (10) Settlement of third party guarantee - - 7 500 Impairment of investment - - 1 443 (1 066) (4 419) (38,185) GROUP CONSOLIDATED BALANCE SHEET Reviewed Unaudited Audited
6 months 6 months 12 months 31 31 August 28 August 2006 February 2007 2007
(R`000) (R`000) (R`000) ASSETS Property, plant and equipment 99 241 49 461 97 499 Goodwill 3 466 22 718 3 466 Intangible assets 3 265 5 524 6 180 Other financial assets 3 066 8 109 1 714 Deferred tax assets 152 22 447 581 Non-current assets 109 190 108 259 109 440 Inventories 21 391 14 731 16 917 Trade and other receivables 45 181 45 948 43 635 Cash and cash equivalents 25 145 17 694 40 530 Current assets 91 717 78 373 101 082 Total assets 200 907 186 632 210 522 EQUITY AND LIABILITIES Total capital and reserves 59 644 65 566 37 623
Unexpended grant 24 913 - 37 256 Financial liabilities 39 985 49 100 35 860 Deferred tax liabilities 1 152 1 381 17 487 Non-current liabilities 41 137 50 481 53 347 Trade and other payables 59 237 62 624 65 005 Current portion of other financial 13 936 7 875 15 896 liabilities Bank overdraft 2 040 86 1 395 Current liabilities 75 213 70 585 82 296 Total equity and liabilities 200 907 186 632 210 522 Number of shares in issue (`000) 186 415 186 415 186 415 Total net asset value per share 21 23 13 (cents) CASH FLOW STATEMENT Reviewed Unaudited Audited
6 months 6 months 12 months 31 August 31 August 28 February 2007 2006 2007 (R`000) (R`000) (R`000)
Net flow from operating (3 633) 7 427 (16 159) activities Net flow from/(utilised by) (8 412) (12 365) (10 425) investing activities Net flow from/(utilised by) (3 340) 10 420 54 902 financing activities Net increase/(decrease) in cash (15 385) 5 482 28 318 Cash at beginning of period 40 530 12 212 12 212 Cash at end of period 25 145 17 694 40 530 STATEMENT OF CHANGES IN EQUITY Share Share Revaluation Retained
Capital Premium Reserves Income (R`000) (R`000) (R`000) (R`000) Balance at 1 March 1 864 49 065 41 099 (67 516) 2007 Income for the period - - - (1 003) Reversal of deferred - - 15 799 - taxation Increase in minority - - - - shareholder loans Balance at 31 August 1 864 49 065 56 898 (68 519) 2007 Table continues:. STATEMENT OF CHANGES IN EQUITY Attributable Minority to
Equity Interest Total Holders (R`000) (R`000) (R`000) Balance at 1 March 24 512 13 111 37 623 2007 Income for the period (1 003) 5 756 4 753 Reversal of deferred 15 799 - 15 799 taxation Increase in minority - 1 469 1 469 shareholder loans Balance at 31 August 39 308 20 336 59 644 2007 COMMENTARY Results The results for the period have been satisfactory and show a strong improvement over the comparative period in 2006. Revenue has increased by 18% Operating income has increased by 11% Profit after tax has increased by 56% Headline loss per share has been reduced by 75% Group Restructuring The group restructuring process is well underway and the group now consists of two business units; South African Micro-Electronic Systems (Proprietary) Limited ("SAMES") and our interest in Labat Traffic Solutions (Proprietary) Limited ("LTS") / Total Computer Services (Proprietary) Limited ("TCS"), together with a small head office function. Labat Traffic Solutions As previously reported, the LTS business is performing well and is continuing to win contracts. The company is continuously refining its service offering and can now offer a comprehensive range of services to its customers. In the cautionary announcement of 1 October 2007 and the subsequent announcement of 27 November 2007, shareholders were advised that Labat has concluded agreements with LTS and Mvelaphanda Holdings (Proprietary) Limited ("Mvela") with the intention of increasing LTS`s BEE profile by introducing Mvela as a strategic partner in LTS thus positioning the company for a separate listing on the JSE Limited. SAMES SAMES is still facing trading difficulties but its business prospects are improving steadily. The company is being spilt into several interlinked, stand alone businesses with profitability being projected in each of these businesses in the 2008/09 financial years. 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. Taxation The SARS Tax Appeal Committee decided to reinstate the assessed loss of R190 190 266 in the 2000 year of assessment. Dividends It is group policy that no dividends will be declared as group surpluses will be retained to fund future growth. Appointment of Auditors and review opinion Messrs Van Wyk have been appointed as auditors of both the group and of SAMES. We look forward to working with them. There review opinion is available for inspection at the group`s registered office. For and on behalf of the board B G VAN ROOYEN Chairman 29 November 2007 Directors: B G van Rooyen, D J O`Neill, V J Labat*, Dr T van der Walt* * Non-executive Registered Office 23 Kroton Avenue Weltevreden Park, 1709 Private Bag X09-248 Weltevreden Park, 1715 Transfer secretaries Computershare Investor Services 2004 (Proprietary) Limited 70 Marshall Street Johannesburg 2001 PO Box 61051 Marshalltown, 2107 Auditors Van Wyk Auditors & Accountants Cnr Koedoesnek and Greysbok Street 1st Floor, Waterkloof Bridge Pretoria 0181 Sponsor Merchant Sponsors (Proprietary) Limited Date: 29/11/2007 12:43:57 Supplied by www.sharenet.co.za Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.
