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ZPT - Zaptronix Limited - Condensed un-audited interim results for the six months ended 28 February 2011 ZAPTRONIX LIMITED (Incorporated in the Republic of South Africa) (Registration number: 1997/014928/06) (Share Code: ZPT ISIN Code: ZAE000070934) ("Zaptronix" or "the Company") CONDENSED UN-AUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 28 FEBRUARY 2011 6 months Year 6 months 28 Feb 11 31 Aug 10 28 Feb 10 (Un-audited) (Audited) (Un-audited)
R`000 R`000 R`000 Assets Non-current assets Property, plant and equipment 6 418 7 096 4 060 Intangible assets 1 859 1 996 1 045 Current assets Inventories 2 597 2 492 2 184 Trade and other receivables 8 329 6 456 4 163 Other Financial assets - - 256 Cash and cash equivalents 350 107 765 Total assets 19 553 18 147 12 473
Equity and liabilities Equity Share capital 29 632 29 632 29 632 Reserves 119 119 119 Accumulated loss (24 456) (25 282) (29 084) Liabilities Non-current liabilities Other financial liabilities 5 786 - 138 Deferred tax 232 232 387 Current liabilities Finance leases - - - Trade and other payables 3 484 8 620 3 053 Other financial liabilities 4 294 4 519 5 450 Provisions 462 - 2 543 Current tax payable - 307 235 Total equity and liabilities 19 553 18 147 12 473 Number of shares in issue 379 318 934 379 318 934 379 318 934 Net asset value per share 1.4 1.18 0.02 (cents) Tangible net asset value per 0.91 0.65 (0.01) share (cents) CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE SIX MONTHS ENDED 28 FEBRUARY 2011 28 Feb 11 31 Aug 10 28 Feb 10
(Un-audited) (Audited) (Un-audited) R`000 R`000 R`000 Revenue 7 402 20 721 9 110 Gross profit 6 227 17 370 4 671 Other income 721 Operating costs (4 546) (12 853) (6 187) Operating profit/ (loss) 1 681 4 517 (795) (EBITDA) Depreciation and (816) (1 878) (948) amortisation Net profit/ (loss) before 865 2 639 (1 743) interest and taxation Interest paid (48) (736) (73) Interest received 9 2 2 Profit/ (loss) before 826 1 905 (1 814) taxation Taxation - 83 - Profit/ (loss) for the 826 1 988 (1 814) period
Total comprehensive income/ 826 1 988 (1 814) (loss) attributable to the equity holders of the parent
Basic earnings per share 0.22 0.52 (0.48) (cents) Headline earnings per share 0.22 0.52 (0.48) (cents) Reconciliation of headline earnings: Net profit/ (loss) 826 1 988 (1 814) attributable to ordinary shareholders Headline earnings/ (loss) 826 1 988 (1 814) attributable to ordinary shareholders CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY FOR THE SIX MONTHS ENDED 28 FEBRUARY 2011 Share Reserves Accumulated Total capital loss Balance at 1 September 2009 29 632 119 (27 270) 2 481 Loss for the 6 months (1 814) (1 814) Balance at 28 February 2010 29 632 119 (29 084) 667 Profit for the 6 months 3 802 3 802 Balance as at 31 August 2010 29 632 119 (25 282) 4 469 Profit for the 6 months 826 826 Balance as at 28 February 29 632 119 (24 456) 5 295 2011 CONDENSED CONSOLIDATED CASH FLOW STATEMENTS FOR THE SIX MONTHS ENDED 28 FEBRUARY 2011 28 Feb 11 31 Aug 10 28 Feb 10 (Un-audited) (Audited) (Un-audited) R`000 R`000 R`000
Cash flows from operating activities Cash generated/(used) 1 298 (223) 526 from/by operations Increase/(decrease) in (776) 4 415 445 working capital Finance income 9 2 2 Finance costs (48) (736) (73) Net cash from/(by) 483 3 458 900 operations Cash flows from investing activities Property, plant and (15) (3 437) (22) equipment Intangible assets (1 247) Net cash flow from investing (15) (4 684) (22) activities Cash flow from financing activities Loans raised - 1 984 Loans repaid (225) (770) (232) Net cash flow from financing (225) 1 214 (232) activities Total cash movement for the 243 (12) 646 period Cash at the beginning of the 107 119 119 period Total cash at end of the 350 107 765 period Segment report The group has identified the following operating segments: * Fleet Management * RMS Technology * Metering and Corporate 2011 2010 2011 2010 2011 2010 2011 2010
R`000 R`000 R`000 R`000 R`000 R`000 R`000 R`000 Fleet RMS Metering Total management Technologies and Total corporate
Turnover External 5 538 7 545 410 994 1 619 571 7 567 9 110 Sales Internal -165 -165 Sales Total 5 538 7 545 245 994 1 619 571 7 402 9 110 Segment revenue Interest 7 1 2 1 9 2 income Finance cost -34 -69 -14 -4 -48 -73 Profit 1 066 694 -859 -1 619 -1 826 -1 814 before 000 508 taxation Income taxation 1,066 694 -859 - 219 - 426 1,814 (Loss)/profit 1,000 1,508 for the period Other information Capital 15 23 15 23 expenditure (additions to PPE)
Statement of financial position
Assets Segment 9 569 7 077 2 810 2 310 7 174 3 086 19 12 473 assets 553 Consolidated 9 569 7 077 2 810 2 310 7 174 3 086 19 12 473 total assets 553 Liabilities Segment 8 552 8 223 488 585 5 218 2 998 14 11 806 liabilities 258 Consolidated 8 552 8 223 488 585 5 218 2 998 14 11 806 total 658 liabilities COMMENTARY 1.1 Basis for preparation The interim financial statements for the 6 months ended 28 February 2011 are un-audited and have been prepared in accordance with International Financial Reporting Standards ("IFRS"), IAS34, as well as AC 500 standards as issued by the Accounting Practices Board, JSE Listing requirements and the Companies Act of 2008 as amended.. The accounting policies adopted are consistent with those of the annual financial statements for the year ended 31 August 2010. 1.2 Financial review The group continues to be profitable as it continues to manage the I to I assets under the Agency Agreement as communicated previously with shareholders. The circular which is subject to JSE regulatory approval, detailing the transaction and requesting shareholder approval will be sent to shareholders in due course. The Site Risk Business unit contributed R700 931 in net income which is earned in terms of the Agency Agreement. The continued focus on cost control is bearing fruit and is reflected in the results. The Tracking business is profitable and the company continues to invest in the technology to remain competitive in the market. 1.3 Operational review The Zaptronix group of companies operates three businesses: Zaptronix Metering, Duo Tracking Services and the Site Risk business (the I to I assets) The economic recovery has been slow and is still affecting all the aspects of the Zaptronix businesses. Margins remain under pressure as customers focus on cost reduction. The value offering provided by Zaptronix ensures continued customer loyalty with ever increasing demand for better service delivery. Prospective customers are taking longer to make the investment decisions to install or upgrade equipment, which is affecting operational efficiencies. The group has continued to focus on cost control and improving efficiencies within its operations. 1.4 Future prospects The successful conclusion of the I to I transaction will strengthen the group`s financial position and afford the opportunity to finally integrate the operations which will also result in further efficiencies and savings. The group is well placed to benefit from the opportunities created by the implementation of the Electricity Regulation Act from 1 January 2012. In terms of this legislation, utilities have to supply consumers that use more than 1000 kWh per month a Time of Use based billing solution will create an accelerated tempo in the upgrade of metering equipment. Due to the expected growth Zaptronix has further extended its technology partnerships and distributor relationships to cope with the increase in demand for the meters. The group continues to invest in a broader range of tracking equipment and continues to upgrades its application and systems will allow Zaptronix to remain a profitable niche player in this industry. Growth is based on the growth of existing clients and opportunities where competitors` clients are unhappy with the level of service being delivered. 1.5 Dividend No dividend has been proposed. For and behalf of the board of directors N Melville (Independent Chairman), K Gribnitz (Non- Executive), M J Freestone (Independent director), JP Nel (CEO), A J Botes (CFO) 31 May 2011 Midrand Auditors: PKF (Pta) Incorporated Secretary: Sylvan CSI (Pty) Ltd Transfer secretaries: Computershare Investor Services (Pty) Ltd Designated Adviser: Exchange Sponsors (2008) (Pty) Ltd Date: 31/05/2011 17:39:49 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.
