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ISA - ISA Holdings Limited - Unaudited results for the six months ended 31
August 2009
ISA Holdings Limited
("ISA")
(Registration number: 1998/009608/06)
JSE share code: ISA
ISIN code: ZAE000067344
UNAUDITED RESULTS FOR THE SIX MONTHS ENDED 31 AUGUST 2009
HIGHLIGHTS
- Turnover up 17%
- Earnings and headline earnings up 44%
- Earnings and headline earnings per share up 48%
- Cash on hand per share 19 cents
- Net asset value per share 21 cents
31-Aug-09 31-Aug-08 28-Feb-09
6 months 6 months Year
ended ended ended
Unaudited Unaudited Audited
R`000s R`000s R`000s
GROUP INCOME STATEMENT
Revenue 31,669 25,756 60,302
Turnover 27,976 23,903 53,290
Cost of sales (13,945) (12,814) (29,188)
Gross profit 14,031 11,089 24,102
Other income 117 130 601
Revaluation of equity investments 2,052 (53) (2,229)
Foreign exchange (loss)/profit (2,033) (88) 2,751
Expenses (5,903) (4,834) (11,689)
Finance income 1,524 1,723 3,660
Finance costs (141) (165) (346)
Profit before taxation 9,647 7,802 16,850
Taxation (2,585) (2,895) (5,484)
Profit attributable to shareholders 7,062 4,907 11,366
GROUP BALANCE SHEET
ASSETS
Non-current assets 6,977 7,923 7,136
- Property, plant and equipment 391 439 416
- Intangible assets 5,731 7,366 6,155
- Deferred tax 855 118 565
Current assets 46,363 44,661 52,192
- Cash and cash equivalents 36,331 33,074 43,155
- Equity investments 4,633 4,759 2,582
- Inventories 6 29 18
- Current tax receivable 309 - 309
- Trade and other receivables 5,084 6,799 6,128
Total assets 53,340 52,584 59,328
EQUITY
Equity capital and reserves 41,039 37,362 43,722
- Share capital and share premium 19,037 24,090 23,991
- Reserves 22,002 13,272 19,731
LIABILITIES
Long term liabilities 3,409 3,084 3,260
- Interest bearing liabilities 3,409 3,084 3,260
Current liabilities 8,892 12,138 12,346
- Trade and other payables 7,455 10,276 8,055
- Current tax payable 714 1,467 3,330
- Provisions 723 395 961
Total equity and liabilities 53,340 52,584 59,328
CASH FLOW STATEMENT
Cash flows from operating activities 3,460 7,021 12,426
Cash flows from investing activities 1,486 1,616 4,028
Cash flows from financing activities (9,737) (9,629) (9,730)
Net (decrease)increase in cash (4,791) (992) 6,724
and cash equivalents
Revaluation of foreign cash (2,033) (87) 2,278
balances
Cash and cash equivalents at 43,155 34,153 34,153
beginning of the period
Cash and cash equivalents at end 36,331 33,074 43,155
of the period
GROUP STATEMENT OF CHANGES IN EQUITY
Share capital and reserves
Balance at beginning of the period 43,722 42,084 42,084
Attributable profit for the period 7,062 4,907 11,366
Treasury shares purchased (163) - (99)
Repayment of share premium (4,791) (5,970) (5,970)
during the period
Dividends paid during the period (4,791) (3,659) (3,659)
Total equity capital and reserves 41,039 37,362 43,722
RECONCILIATION OF HEADLINE EARNINGS
Earnings as per income statement 7,062 4,907 11,366
(Profit)loss on sale of property, (2) - 2
plant and equipment
Tax effect on above 1 - (1)
Headline earnings 7,061 4,907 11,367
ORDINARY SHARES
Earnings per share (cents) 3.7 2.5 5.9
Diluted earnings per share (cents) 3.7 2.5 5.9
Headline earnings per share (cents) 3.7 2.5 5.9
Diluted headline earnings per share 3.7 2.5 5.9
(cents)
Number of shares in issue at end 191,596 192,593 192,117
of period (`000s)
Weighted average number of shares 191,854 192,593 192,591
in issue (`000s)
Treasury shares held at end of 1,077 - 476
period (`000s)
Net asset value per share at end 21.4 19.4 22.8
of period (cents)
Net tangible asset value per share 18.4 15.6 19.6
at end of period (cents)
The Board is pleased to announce that the Group has exceeded budgeted profit for
the six months ended 31 August 2009, despite the extremely challenging market
conditions.
Steady growth in turnover of 17% has translated into earnings and headline
earnings per share of 3.7 cents. An encouraging increase in recurring revenue,
to 65% of sales, was achieved. This together with stronger services based income
substantially bolstered gross retained margin. Sales outside of South Africa
increased to 23% of turnover, resulting in a substantial dollar cash position at
the end of the period.
The recovery in the value of the equity investments improved earnings by R2
million. The business also incurred a foreign exchange loss of R2 million, due
to the current strength of the Rand. These items are not expected to be repeated
at the same level in future periods.
Due to the effect of the global financial crisis on the local economy, special
attention was given to the early collection of debtors. This effort resulted in
a pleasing level of trade receivables at the end of the period.
Despite the outflow of funds as a result of the 5 cents per share distribution,
cash on hand at the end of the six months amounted to 19 cents per share.
DIVIDENDS
The board has not declared an interim dividend.
PROSPECTS
The difficult economic conditions created by the knock-on effect from the
worldwide recession seems to be easing, even though the speed of recovery
appears tentative. Management remains focused on strengthening the company`s
internal skills pool and thereby ensuring better service and superior quality
products to clients. The drivers for growth in the information security industry
are expected to remain robust and the Board is cautiously optimistic about the
Groups future prospects.
ISA is in a strong position to leverage opportunities for strategic investments
presented by the current market conditions, which includes the continuation of
the share buyback programme.
BASIS OF PREPARATION
These interim results to 31 August 2009 have been prepared in accordance with
International Financial Reporting Standards (IFRS), in a manner consistent with
the prior year and in accordance with Interim Financial Reporting (IAS34). These
results have not been reviewed or audited by the Group`s auditors.
SPECIAL THANKS
I take this opportunity to thank all of our stakeholders, especially our
management team and staff, for being dedicated and committed to the business,
even in these challenging times.
For and on behalf of the board.
Clifford Katz
Chief Executive Officer
17 September 2009
Designated advisor: Grindrod Bank Ltd
www.isaholdings.co.za
Date: 17/09/2009 09:10:01 Supplied by www.sharenet.co.za
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