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HUG - Huge - Audited Results Of Huge For The Year Ended 28 February 2009 And

Release Date: 31/08/2009 17:16
Code(s): HUG
Wrap Text

HUG - Huge - Audited Results Of Huge For The Year Ended 28 February 2009 And Notice Of Annual General Meeting HUGE GROUP LIMITED (Registration number 2006/023587/06) Share code: HUG ISIN: ZAE000102042 ("Huge" or "the Group" or "the company") AUDITED RESULTS OF HUGE FOR THE YEAR ENDED 28 FEBRUARY 2009 AND NOTICE OF ANNUAL GENERAL MEETING Statement of financial position as at 28 February 2009 Group Figures (R) 2009 2008 Assets Non-Current Assets Property, plant and 59,627,060 57,286,740 equipment Intangible assets 1,284,009 1,101,654 Goodwill 215,153,482 215,153,482 Investments 9,027,925 1,806,133 Deferred taxation 9,652,736 6,643,044 asset 294,745,212 281,991,053 Current Assets Inventories 28,720,933 6,464,508 Loans receivable 6,124,364 - Loans to group - - companies Trade and other 93,257,238 86,192,346 receivables Cash and cash 13,785,144 19.878,646 equivalents 141,887,679 112,535,500
Total Assets 436,632,891 394,526,553 Equity and Liabilities Equity Share capital 10,617 10,676 Share premium 228,822,360 221,577,736 Revaluation reserve 296,467 224,043 Retained income 20,278,045 26,252,023 249,407,489 248,064,478 Liabilities Non current liabilities Other financial 1,516,202 - liabilities Shareholders` loans 17,035,069 13,923,297 Finance lease 9,484,917 9,289,064 obligations Deferred taxation - 1,535,125 liability 28,036,188 24,747,486 Current Liabilities Other financial 25,702,333 22,373,978 liabilities Finance lease 4,534,184 4,544,000 obligations Shareholders for 14,952 - dividends Trade and other 125,732,940 89,403,542 payables Current taxation 3,204,805 5,393,069 payable 159,189,214 121,714,589 Total Equity and 436,632,891 394,526,553 Liabilities Income statement for the year ended 28 February 2009 Group Figures (R) 2009 2008 Revenue 608,539,827 243,543,948 Cost of sales 495,467,018 184,801,880 Gross profit 113,072,809 58,742,068
Other income 3,563,103 2,163,315 Operating expenses (114,611,604) (30,506,764) Operating profit 2,024,308 30,398,619
Interest received 6,205,310 10,841,183 Income from equity 2,641,740 915,213 accounted investments Finance costs (6,527,695) (6,266,896) Profit before 4,343,663 35,888,119 taxation Income Taxation 3,093,559 (9,636,096) Profit for the year 7,437,222 26,252,023 Profit/(Loss) on sale 40,125 (8,432) of property, plant and equipment Headline earnings 7,477,347 26,243,591 Weighted average 109,089,000 59,435,633 number of shares in issue Earnings per share 6.82 44,17 (cents) Headline earnings per 6.85 44,15 share(cents) Statement of comprehensive income for the year ended 28 February 2009 Figures (R) Profit for the year 7,437,222 26,252,023 Other comprehensive income: Revaluation of land - 993,328 and building: Income tax relating 72,424 (769,285) to revaluation of land and buildings Total comprehensive 7,509,646 26,476,066 income for the year Statement of changes in equity for the year ended 28 February 2009 2009 Figures in (R) Share Share premium Revaluat Retained Total equity capital ion income reserve
Balance at 01 10,676 221,577,736 224,043 26,252,023 248,064,478 March 2008 Share issue on 500 14,999,500 - - 15,000,000 26 June 2008 Share (559) (7,754,876) - - (7,755,435) repurchases Dividends paid - - - (13,411,200) (13,411,200) Transactions 10,617 228,822,360 224,043 12,840,823 241,897,843 with shareholders Profit for the - - - 7,437,222 7,437,222 year ending 28 February 2009 Income taxation - - 72,424 - 72,424 relating to revaluation of land and buildings Total - - 72,424 7,437,222 7,509,646 comprehensive income Balance at 28 10,617 228,822,360 296,467 20,278,045 249,407,489 February 2009 2008 Balance at 1 100 - - - 100 March 2007 Share issue on 2 860 - - - 860 July 2007 Share issue on 4004 75,047,330 - - 75,051,334 31 July 2007 Share issue on 2050 51,246,250 - - 51,248,300 31 July 2007 Share issue on 2950 73,748,750 - - 73,751,700 31 July 2007 Share issue on 7 36 883,462 - - 883,498 August 2007 Share issue to 676 21,631,324 - - 21,632,000 Centracell vendors Transfer of - (979,380) - - (979,380) listing expenses to share premium Transactions 10,676 221,577,736 - - 221,588,412 with shareholders Profit for the 26,252,023 26,252,023 year ending 29 February 2008 Revaluation of - - 993,328 - 993,328 land and buildings Income taxation - - (769,285) - (769,285) relating to revaluation of land and buildings Total - - 224,043 26,252,023 26,476,066 comprehensive income Balance at 29 10,676 221,577,736 224,043 26,252,023 248,064,478 February 2008 Statement of cash flows for the year ended 28 February 2009 Group Figures (R) 2009 2008
Operating activities Cash received from 705,720,879 341,150,654 customers Cash paid to suppliers (650,021,637) (315,198,417) and employees Cash generated from 55,699,242 25,952,237 operations Interest received 6,205,310 10,841,183 Finance costs (6,527,695) (6,266,896) Derivative margin call (25,567,876) - payments Taxation paid (3,567,094) (2,991,290) Cash flow from 26,241,887 27,535,234 operating activities
Investing activities Acquisition of - (123,072,011) subsidiaries Purchase of property, (21,407,810) (10,962,901) plant and equipment Proceeds from disposal 223,892 393,521 of property, plant and equipment Purchase of intangible (867,828) (402,625) assets Loans receivables (6,124,364) - Investments (6,135,010) (365,833) Cash flow from (34,311,120) (134,409,849) investing activities Financing activities
Proceeds from share 15,000,000 124,905,080 issue Dividends paid (13,411,200) - Share repurchases (7,755,435) - Proceeds from 8,142,366 1,848,181 borrowings Cash flow from 1,975,731 126,753,261 financing activities Net changes in cash and (6,093,502) 19,878,646 cash equivalents Cash and cash 19,878,646 - equivalents at the beginning of the period Cash and cash 13,785,144 19,878,646 equivalents at the end of the period Segmental reporting Business segments LCR Other Consolidated 2009 Consolidated 544,655,597 63,884,510 608,539,827 revenue 2008 Consolidated 236,867,268 6,676,680 243,543,948 revenue Geographical Western Kwa-Zulu Gauteng Eastern Consolidated
Cape Natal Cape 2009 Segment 113,670,770 70,887,648 393,236,586 30,744,251 608 539,827 revenue Segment result 20,709,984 12,915,212 73,846,233 5,601,378 113,072,809 Other income - - - - 3,563,103 Interest - - - - (6,527,695) expense Interest - - - - 2 641 740 received Income from - - - - 6 205 310 equity accounted investments Operating - - - - (89,043,728) expenses Loss on - - - - (25,567,876) derivatives Income tax - - - - 3,093,559 Profit for - - - - 7,437,222 period Segment assets 41,322,412 25,769,585 142,952,388 11,176,370 221,220,755 Segment 34,972,330 21,809,531 120,984,663 9,458,878 187,225,402 liabilities Capital 4,179,411 2,606,375 14,359,458 1,130,395 22,275,639 expenditure Depreciation 3,656,565 2,280,316 12,563,083 988,982 19,488,946 Goodwill - - - - 215,153,481 2008 Segment 64,768,684 33,065,827 130,046,772 15,662,66 243,543,948 revenue 5 Segment result 11,508,190 9,528,709 34,907,842 2,797,327 58,742,068 Other income - - - - 3,078,528 Interest - - - - (6,266,896) expense Interest - - - - 10,841,183 income Operating - - - - (30,506,764) expenses Income tax - - - - (9,636,096) Profit for - - - - 26,252,023 period Segment assets 52,729,004 21,095,871 95,565,026 9,983,170 179,373,071 Segment 44,132,883 21,016,065 71,405,062 9,908,065 146,462,075 liabilities Capital 3,318,101 1,332,396 5,961,683 753,346 11,365,526 expenditure Depreciation 2,053,989 534,079 2,732,819 295,306 5,616,193 Goodwill - - - - 215,153,482 COMMENTARY The board of directors of Huge is pleased to present the abridged audited financial statements for the year ended 28 February 2009. These abridged financial statements have been prepared in accordance with accounting policies and methods of computation that are consistent with those of the prior year and with International Financial Reporting Standards ("IFRS") and in compliance with IAS 34. These financial statements have been audited by the auditors of the company, Horwath Leveton Boner, and their audit opinion, without modification is available at the registered office of the company. CHANGES TO REVIEWED PROVISONAL REPORTED RESULTS Changes to the Income statement - Revenue has increased from R 605 848 155 to R 608 539 827. This is due to the reallocation of the movement in the bad debt provision, which was incorrectly allocated to revenue. This has had no impact on net profit or the statement of financial position. - Gross profit as reported in the reviewed abridged results announcement in May 2009 did not include depreciation of router equipment, which was reported below EBITDA. Router depreciation of R 12.9 million is included in cost of sales in the annual report. - The above changes have no impact on attributable earnings, earnings per share or headline earnings per share. Changes to Statement of financial position - Property, plant and equipment has increased by R 258 656 due to a correction of depreciation on revaluation. This increases the revaluation reserve reported as reserves in the reviewed abridged results. This has resulted in an increase in net asset value per share from 234.67 to 234.91 and an increase in net tangible asset value per share from 30.81 to 31.05. - All the changes below are simply re-classifications and have no impact on net asset value or net tangible asset value. - Investments have decreased by R 5 million due to the loan to Eyeballs Mobile Advertising (Proprietary) Limited being included in Investments in the reviewed abridged results. The loan has been re-allocated to Loans receivable in the annual report. - The reviewed abridged results reported a Receivable margin call payment account of R 25 567 876 as an asset and a derivative liability account of R 25 567 876. The Board has decided that the appropriate accounting treatment is to set off the Margin call payments against the Derivative liability. - A finance lease was incorrectly classified as trade and other payables in the reviewed results. As a result of this correction trade and other payables has decreased by R 8.4 million and short term and long term liabilities have increased by R 1.5 million and R 6.9 million respectively. - Provision for taxation as reported has reduced by R 344 779. This is due to interest and penalties reclassified as trade and other payables. Changes to the statement of cash flows - As a result of the balance sheet re-allocations discussed above the statement of cash flows has changed. - Cash flows from operating activities has decreased by R 33.9 million. - This is mainly as a result of mark to the market fair value adjustments of R 25.6 million on derivatives which were reported as cash flows from investing activities. In the annual report the fair value adjustments have been reported as cash flows from operating activities. - The other R 8.4 million reduction was due to the reclassification between trade and other payables and finance leases referred to above. Changes to segmental analysis - Due to revenue change noted above, there has been an increase in Gauteng revenue and segment result from R 390 545 628 to R 393 236 586 and R 71 154 562 to R 73 846 233 respectively. - Due to the set off of margin call payments against the derivative liability of R 25.6 million, the segment assets and segment liabilities reported in the reviewed abridged results have reduced by R 25.6 million. Date of Annual General Meeting The annual general meeting has been set for 27 November 2009 at 14:00 at Block 2, Huge Group Limited, 5 Woodlands Drive, Woodmead, Johannesburg. Johannesburg 31 August 2009 Designated Advisor Arcay Moela Sponsors (Proprietary) Limited Number 3 Anerley Road, Parktown, 2193 Auditors Horwath Leveton Boner No 3 Sandown Valley Crescent, Sandown, 2196 Registered office: Block 2, Woodlands Drive Office Park, 5 Woodlands Drive, Woodmead, Johannesburg, 2191 (PO Box 16376, Dowerglen, 1610) Transfer secretaries Computershare Investor Services (Proprietary) Limited, Ground Floor, 70 Marshall Street, Johannesburg Directors: AD Potgieter (Executive Chairman), BA McQueen*, D Tredoux*, KD Jarvis*, JC Herbst (CEO), MA Meth (Financial Director), VM Mokholo, SP Tredoux*, M Pillay *Non-executive Date: 31/08/2009 17:16:17 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`). 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