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LAB - Labat Africa - Reviewed Results For The Year Ended 29 February 2008

Release Date: 27/06/2008 17:00
Code(s): LAB
Wrap Text

LAB - Labat Africa - Reviewed Results For The Year Ended 29 February 2008 LABAT AFRICA LIMITED Incorporated in the Republic of South Africa (Registration number 1986/001616/06) Share code: LAB ISIN: ZAE000018354 ("Labat" or "the group" or "the company") REVIEWED RESULTS FOR THE YEAR ENDED 29 FEBRUARY 2008 GROUP CONSOLIDATED INCOME Reviewed Audited STATEMENT 12 months 12 months 29 February 2008 28 February 2007 (R`000) (R`000)
Revenue 154 237 163 271 Continuing operations 41 784 48 650 Discontinued operations 112 453 114 621
Operating income before 49 600 33 788 depreciation and amortisation Continuing operations 12 562 (4 298) Discontinued operations 37 038 38 086 Depreciation and (21 540) (18 758) amortisation Continuing operations (13 578) (11 244) Discontinued operations (7 962) (7 514) Operating profit before 28 060 15 030 interest, taxation and fair value adjustments Continuing operations (1 016) (15 541) Discontinued operations 29 076 30 571 Interest paid (9 851) (6 637) Continuing operations (5 537) (2 323) Discontinued operations (4 314) (4 314) Interest received 5 260 1 425 Continuing operations 2 466 983 Discontinued operations 2 794 442 Profit before taxation, sale 23 469 9 818 and fair value adjustments Continuing operations (4 087) (16 882) Discontinued operations 27 556 26 700 Fair value adjustments (12 243) (29 728) Continuing operations 3 834 (29 728) Discontinued operations (16 077) - Profit /(Loss) before 11 226 (19 910) taxation Continuing operations (254) (46 610) Discontinued operations 11 480 26 700 Taxation (9 983) (32 206) Continuing operations - (21 406) Discontinued operations (9 983) (10 800) Profit/(Loss) after taxation 1 243 (52 116) Continuing operations (254) (68 015) Discontinued operations 1 497 15 899 Attributable to: Profit to minority 727 12 812 shareholders Profit/(Loss) to equity 516 (64 928) shareholders Profit/(Loss) to 1 243 (52 116) shareholders Shares in issue throughout 186 415 186 415 the period (000) Basic profit/(loss) per 0.3 (34.8) share (cents) Headline profit/(loss) per 0.3 (20.5) share (cents) Reconciliation of basic to headline earnings
Basic profit/(loss) 516 (64 928) Impairment of goodwill - 19 253 Profit on sale of assets - (10) Settlement of third party - 7 500 guarantee Headline profit/(loss) 516 (38 185) GROUP CONSOLIDATED BALANCE Reviewed Audited SHEET 12 months 12 months 29 February 2008 28 February 2007 (R`000) (R`000)
ASSETS Property, plant and 87 404 97 499 equipment Goodwill 20 399 3 466 Other intangible assets - 6 180 Deferred taxation 694 581 Non-current assets 108 497 107 726 Other financial assets 2 711 1 714 Inventories 18 233 16 917 Trade and other receivables 46 878 43 635 Cash and cash equivalents 42 217 40 530 Current assets 110 039 102 796 Total assets 218 536 210 522 EQUITY AND LIABILITIES Share capital and reserves 38 786 37 623 Unexpended grant 39 686 37 256 Long-term liabilities 39 674 35 860 Preference share liability 26 000 - Deferred taxation 22 021 17 487 Non-current liabilities 87 695 53 347 Trade and other payables 41 161 57 041 Bank overdraft 15 1 395 Current portion of financial 8 593 15 896 liabilities Taxation 2 600 7 964 Current liabilities 52 369 82 296 Total equity and liabilities 218 536 210 522 Number of shares in issue 186 415 186 415 (`000) Total net asset value per 14.9 13.1 share (cents) CASH FLOW STATEMENT Reviewed Audited 12 months 12 months 29 February 28 February 2008 2007 (R`000) (R`000)
Net flow from operating (9 880) (16 159) activities Net flow from investing (12 062) (10 425) activities Net flow from financing 23 629 54 902 activities Net increase in cash 1 687 28 318 Cash at beginning of year 40 530 12 212 Cash at end of year 42 217 40 530 STATEMENT OF CHANGES IN EQUITY Share Share Non- Distributable
Distributable R`(000) Capital Premium Reserves Reserves Balance at 1 1 864 49 065 41 099 (67 516) March 2007 Prior year 1 042 adjustments Minority buyout 1 784 Loss for the year 516 Dividend paid Share issue by subsidiary Shareholder loans Balance at 29 1 864 49 065 41 099 (64 174) February 2008 STATEMENT OF CHANGES IN EQUITY Capital and Minority Total R`(000) Reserves Interest Balance at 1 24 512 13 111 37 623 March 2007 Prior year 1 042 2 459 3 501 adjustments Minority buyout 1 784 (1 784) - Loss for the year 516 727 1 243 Dividend paid (12 033) (12 033) Share issue by 3 625 3 625 subsidiary Shareholder loans 4 827 4 827 Balance at 29 27 854 10 932 38 786 February 2008 CONDENSED SEGMENTAL REPORT Technology Other Total (R`000) (R`000) (R`000)
2008 Revenue 154 237 - 154 237 Operating income before 36 729 (8 669) 28 060 interest Non-current assets 108 308 189 108 497 Current assets 105 410 4 629 110 039 Non-current liabilities 87 668 27 87 695 Current liabilities 46 741 5 628 52 369 2007 Revenue 163 271 - 163 271 Operating income before 35 863 (20 833) 15 030 interest Non-current assets 107 571 155 107 726 Current assets 95 495 7 301 102 796 Non-current liabilities 53 320 27 53 347 Current liabilities 77 220 5 076 82 296 COMMENTARY During the year under review, the board of Labat continued with its planned restructuring of the group. Subsequent to the unbundling of the shares in Total Client Services Limited ("TCS") (formerly Labat Traffic Solutions (Proprietary) Limited), a subsidiary of Labat, and the listing of TCS on the Alternative Exchange ("AltX") of JSE Limited, ("JSE"), South African Micro-Electronic Systems (Proprietary) Limited ("SAMES") and its subsidiaries remain the only operating business within the group. Unbundling and listing of TCS In a circular to shareholders dated 25 February 2008, shareholders were advised that it was proposed that TCS would be listed on the AltX on Monday, 7 April 2008 and that immediately before the listing, the unbundling would be effected by way of a distribution in specie by Labat to Labat shareholders of TCS ordinary shares in the ratio of one TCS ordinary share for every Labat share. Furthermore, additional TCS ordinary shares would be issued by way of a private placement to selected private individuals, corporations and institutions. At a general meeting of shareholders held on Tuesday, 18 March 2008, resolutions approving the unbundling and the specific issue of TCS ordinary shares were passed by 100% of shareholders present and eligible to vote. In an announcement released on SENS on 27 March 2008, shareholders were advised that all conditions precedent relating to the unbundling had been fulfilled and subsequently, TCS was listed on the AltX on Monday, 7 April 2008. TCS has been disclosed as a discontinued operation on the face of the Income Statement. Non-current assets of R40.0 million, current assets of R39.3 million, non-current liabilities of R40.8 million and current liabilities of R22.6 million relate to TCS. Results Income Statement The results for the year under review show a substantial improvement from the previous year. Operating income has improved substantially and profit before tax improved by R31.136 million from a loss of R19.910 million to a profit of R11.226 million. Earnings per share has improved from a loss of 34.83 cents to a profit of 0.3 cents. Balance Sheet The Balance Sheet has been strengthened considerably and the cash position has improved by R1.687 million from R40.530 million to R42.217 million. Current liabilities have been reduced substantially from R82.296 million to R52.369 million. SAMES The business continues to improve and is being re-structured into three distinct sections i.e. the waferfab and MEMS unit, the Integrated Circuit Design Company, being the design company, and downstream businesses housed in the SAMES business park. Although international markets are extremely difficult at present, the current Rand weakness is having a positive effect on revenue and the company is currently making a small profit. Delisting In the circular to shareholders dated 25 February 2008 shareholders were advised that subsequent to the listing of TCS on the AltX, the board of Labat intended to terminate the listing of Labat shares on the JSE. This process is ongoing and a circular containing full details of the delisting will be sent to shareholders in due course. Accounting Policies The 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"), IAS34 and the Companies Act, 1973 (Act 61 of 1973), as amended. Review opinion The results for the year ended 29 February 2008 have been reviewed by the group`s auditors, Van Wyk Chartered Accountants, and their review opinion is available for inspection at the group`s registered office. Renewal of cautionary announcement Further to the cautionary announcement dated 21 May 2008, shareholders are advised that the delisting of Labat may have a material effect on the price at which Labat`s shares trade. Accordingly, shareholders are advised to continue to exercise caution when trading in Labat shares on the JSE until a further announcement is made. For and on behalf of the board. B G VAN ROOYEN Chairman 27 June 2008 Directors: B G van Rooyen, D J O`Neill, V J Labat*, T van der Walt* * Non-executive Registered Office 23 Kroton Avenue Weltevreden Park, Roodepoort, 1709 Private Bag X09-248 Weltevreden Park, 1715 Transfer secretaries Computershare Investor Services (Proprietary) Limited 70 Marshall Street Johannesburg 2001 PO Box 61051 Marshalltown, 2107 Auditors Van Wyk Chartered Accountants Corner Koedoesnek and Grysbok Streets Waterkloof Ridge, Pretoria 0181 Sponsor Merchant Sponsors (Proprietary) Limited Date: 27/06/2008 17:00:01 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.

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