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ISA - ISA Holdings - Unaudited results for the six months ended 31 August 2010
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 2010
HIGHLIGHTS
- Turnover up 12%
- EBITDA up 12%
- HEPS and EPS down 9%
- Cash on hand per share 16 cents
- Net asset value per share 21 cents
31-Aug-10 31-Aug-09 28-Feb-10
6 months 6 months Year
ended ended ended
Unaudited Unaudited Audited
R`000s R`000s R`000s
CONDENSED CONSOLIDATED STATEMENTS
OF COMRPEHENSIVE INCOME
Revenue 32,463 31,669 62,447
Turnover 31,349 27,976 57,532
Cost of sales (15,165) (13,945) (27,862)
Gross profit 16,184 14,031 29,670
Other income 2 117 433
Revaluation profit on equity
investments 58 2,052 1,984
Foreign exchange loss (575) (2,033) (2,292)
Operating expenses (6,343) (5,903) (11,899)
Finance income 1,056 1,524 2,498
Finance costs (138) (141) (288)
Profit before taxation 10,244 9,647 20,106
Taxation (3,938) (2,585) (5,503)
Profit for the year 6,306 7,062 14,603
Total comprehensive income attributable
to equity shareholders 6,306 7,062 14,603
CONDENSED CONSOLIDATED STATEMENTS
OF FINANCIAL POSITION
ASSETS
Non-current assets 5,842 6,977 6,472
- Property, plant and equipment 399 391 314
- Intangible assets 4,906 5,731 5,332
- Deferred tax 537 855 826
Current assets 50,011 46,363 54,703
- Cash and cash equivalents 29,705 36,331 42,707
- Equity investments 4,623 4,633 4,565
- Inventories 3,793 6 -
- Current tax receivable - 309 109
- Trade and other receivables 11,890 5,084 7,322
Total assets 55,853 53,340 61,175
EQUITY AND LIABILITIES
Equity capital and reserves 38,923 41,039 47,112
- Share capital and share premium 14,607 19,037 17,569
- Reserves 24,316 22,002 29,543
LIABILITIES
Long term liabilities 3,682 3,409 3,544
- Interest bearing liabilities 3,682 3,409 3,544
Current liabilities 13,248 8,892 10,519
- Trade and other payables 9,430 7,455 9,071
- Current tax payable 3,241 714 551
- Provisions 577 723 897
Total equity and liabilities 55,853 53,340 61,175
CONDENSED CONSOLIDATED STATEMENTS
OF CASH FLOW
Cash flows from operating activities 1,340 3,460 10,537
Cash flows from investing activities 727 1,486 2,527
Cash flows from financing activities (14,494) (9,737) (11,217)
Net (decrease)increase in cash
and cash equivalents (12,427) (4,791) 1,847
Revaluation of foreign cash
Balances (575) (2,033) (2,295)
Cash and cash equivalents at
beginning of the period 42,707 43,155 43,155
Cash and cash equivalents at end
of the period 29,705 36,331 42,707
CONDENSED CONSOLIDATED STATEMENTS
OF CHANGES IN EQUITY
Share capital and reserves
Balance at beginning of the period 47,112 43,722 43,722
Attributable profit for the period 6,306 7,062 14,603
Treasury shares purchased - (163) (1,631)
Repayment of share premium
during the period (3,200) (4,791) (4,791)
Dividends paid during the period (11,295) (4,791) (4,791)
Total equity capital and reserves 38,923 41,039 47,112
RECONCILIATION OF HEADLINE EARNINGS
Earnings as per income statement 6,306 7,062 14,603
(Profit)loss on sale of property,
plant and equipment - (2) 2
Tax effect on above - 1 (1)
Headline earnings 6,306 7,061 14,604
ORDINARY SHARES
Earnings per share (cents) 3.4 3.7 7.7
Diluted earnings per share (cents) 3.4 3.7 7.7
Headline earnings per share (cents) 3.4 3.7 7.7
Diluted headline earnings per share
(cents) 3.4 3.7 7.7
Number of shares in issue at end
of period (`000s) 188,233 191,516 188,233
Weighted average number of shares
in issue (`000s) 188,233 191,854 190,213
Treasury shares held at end of
period (`000s) 4,360 1,077 4,360
Net asset value per share at end
of period (cents) 20.7 21.4 25.0
Net tangible asset value per share
at end of period (cents) 18.1 18.4 22.2
OPERATIONAL REVIEW
The Board is pleased to report that the Group has achieved its profit targets
for the six month reporting period under review.
Turnover and EBITDA growth of 12% was satisfactory and includes an increase in
service based revenue of over 20%. Recurring revenue levels remain strong, at
around 60% of turnover, underpinning the Group`s healthy income mix.
As expected, the Group`s equity investments continued to recover through this
period, although at a substantially lower rate.
Conversely, the unexpected strengthening of the Rand continued to tax profits
with revaluation losses against the Group`s US$1.4 million foreign currency
reserve. These unrealised losses will be reversed should the Rand weaken from
the current level.
The Group`s closing cash position of 16 cents per share was somewhat lower than
target and is largely a result of uncharacteristically high trade receivable and
inventory levels. Although atypical in nature, the Board remains satisfied with
the cash management processes within the Group and regard this operational
dynamic as being symptomatic of their need to finance higher value solution
projects - which by their very nature tend to extend over longer periods before
completion.
Management is giving special attention to this operational dynamic and has
adjusted the internal cash management processes in order to cater for this
encouraging sales trend.
DIVIDENDS
During the period under review, distributions totalling 7.7 cents per share were
declared and paid to all shareholders. The mandatory STC charge of R1.15 million
contributed substantially to the overall taxation expense during this period.
The Board has not declared an interim dividend.
PROSPECTS
We are encouraged by the tempered optimism in the market and share the opinion
that the macro-economic recovery is well underway. Our solid financial position,
strong brand and compelling offering matrix gives management the framework
needed to achieve above average future growth.
BASIS OF PREPARATION
These interim results to 31 August 2010 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 Groups auditors.
SPECIAL THANKS
We take the opportunity to thank our customers and suppliers for their loyalty
and continued support. A special note of appreciation is also extended to our
management team and staff for their unquestionable commitment to this business
and the achievement of its goals.
For and on behalf of the board.
Clifford Katz
Chief Executive Officer
14 October 2010
Designated advisor: Exchange Sponsors
www.isaholdings.co.za
Date: 14/10/2010 10:54:53 Supplied by www.sharenet.co.za
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