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AER - Amalgamated Electronic Corporation Limited - Group condensed consolidated

Release Date: 29/06/2011 09:14
Code(s): AER
Wrap Text

AER - Amalgamated Electronic Corporation Limited - Group condensed consolidated reviewed results for the year ended 31 March 2011 and dividend declaration AMALGAMATED ELECTRONIC CORPORATION LIMITED (Incorporated in the Republic of South Africa) (Registration number: 1997/010036/06) Share code: AER ISIN: ZAE 000070587 ("Amecor") or ("the Group") GROUP CONDENSED CONSOLIDATED REVIEWED RESULTS FOR THE YEAR ENDED 31 MARCH 2011 AND DIVIDEND DECLARATION GROUP CONDENSED STATEMENT OF COMPREHENSIVE INCOME Year ended Year ended 31 March 2011 31 March 2010
(Reviewed) (Audited) Notes R`000 R`000 Revenue 142 810 139 906 Turnover 140 732 138 136 Cost of sales (77 410) (69 696) Gross profit 63 322 68 440 Operating cost excluding (27 574) (28 862) depreciation and amortisation EBITDA 35 748 39 578 Depreciation and amortisation (3 279) (2 397) Operating profit 32 469 37 181 Finance income 1 435 1 396 Finance expenses (962) (1 431) Profit before taxation 32 942 37 146 Taxation (9 598) (10 329) Profit 23 344 26 817 Other comprehensive income - - Total comprehensive income 23 344 26 817 Attributable to: Ordinary shareholders of Amecor 21 360 23 266 Non-controlling interest 1 984 3 551 Profit and total comprehensive 23 344 26 817 income for the year Earnings per share (cents) 3 28,3 30,8 Diluted earnings per share (cents) 3 28,3 30,8 GROUP CONDENSED STATEMENT OF FINANCIAL POSITION 31 March 2011 31 March 2010 (Reviewed) (Audited)
Notes R`000 R`000 ASSETS Non-current assets 85 939 79 796 Property, plant and equipment 4 16 811 13 972 Intangible assets 14 756 11 521 Goodwill 54 034 54 034 Deferred tax asset 338 269 Current assets 87 636 88 540 Inventories 22 325 19 624 Trade and other receivables 27 450 39 072 Taxation 2 837 2 951 Cash and cash equivalents 35 024 26 893 Total assets 173 575 168 336 EQUITY AND LIABILITIES Issued capital 72 560 72 610 Retained earnings 62 915 47 576 Equity attributable to Amecor 135 475 120 186 shareholders Non-controlling interest 16 007 15 097 Total equity 151 482 135 283 Non-current liabilities 6 551 9 942 Interest bearing borrowings 3 143 7 114 Deferred tax liability 3 408 2 828 Current liabilities 15 542 23 111 Trade and other payables 12 895 18 060 Bank overdraft - 48 Short-term portion of interest 2 647 3 266 bearing borrowings Taxation - 1 737 Total equity and liabilities 173 575 168 336 Net asset value per share (cents) 200,5 179,0 Net number of shares in issue 75 553 75 565 (000`s) GROUP CONDENSED STATEMENT OF CASH FLOWS Year ended Year ended 31 March 2011 31 March 2010
(Reviewed) (Audited) R`000 R`000 Net inflow from operating activities 21 924 25 061 Cash generated from operations 39 256 40 984 Net finance (expense)/income 473 (35) Taxation paid (10 710) (8 174) Dividends paid (7 095) (7 714) Net outflow from investing activities (9 105) (12 980) Net outflow from financing activities (4 640) (1 947) Net movement in cash balances 8 179 10 134 Cash and cash equivalents at beginning of 26 845 16 711 the year Cash and cash equivalents at the end of 35 024 26 845 the period GROUP CONDENSED STATEMENT OF CHANGES IN EQUITY Issued capital Attributable
(share capital to ordinary Non- and share shareholders of controlling Total premium) Amecor interest equity R`000 R`000 R`000 R`000
Balance at 1 71 904 30 550 13 020 115 474 April 2009 Issue of shares 986 - - 986 in respect of share option Dividends paid - (6 240) (1 474) (7 714) Total - 23 266 3 551 26 817 comprehensive income Treasury share (280) - - (280) purchase Total changes 706 17 026 2 077 19 809 Balance at 1 72 610 47 576 15 097 135 283 April 2010 Dividends paid - (6 021) (1 074) (7 095) Total - 21 360 1 984 23 344 comprehensive income Treasury share (50) - - (50) purchase Total changes (50) 15 339 910 16 199 Balance at 31 72 560 62 915 16 007 151 482 March 2011 MANAGEMENT COMMENTARY General review Amecor and its subsidiaries (collectively "the Amecor Group" or "the Group") is a South African Group of companies specialising in the design, manufacture and distribution of leading brands within the electronic security, alternative energy, and power optimisation industries. Principal operations within the Amecor Group include: - FSK Electronics SA (Pty) Limited ("FSK") specialises in the manufacture of electronic security devices which include remote monitoring and electronically controlled security applications; - Sabre Radio Networks (Pty) Limited ("Sabre") offers a network subscription for data transmission and signaled response; - Power Development Services (Pty) Limited ("PDS") supplies and installs power generating equipment including generators and UPS equipment; and - Amecor PowerStar (Pty) Limited has exclusive distribution rights with respect to power optimisation units which enable cost savings and power conservation. Financial review Tough trading conditions were experienced throughout the period under review; the Group achieved earnings per share of 28,3 cents (F2010: 30,8 cents). The reduction in earnings is primarily attributable to profit margins being under pressure to remain competitive in the alternative power markets, and bad debts being provided for in the amount of almost R1,6 million (F2010: R0). Turnover and profit before tax for the period under review was reported as: - R140,7 million (F2010: R138,1 million); and - R32,9 million (F2010: R37,1 million) respectively. The analysis of turnover and total comprehensive income on a segmental basis is detailed herein. Tighter margins in the alternative power supply markets have contributed to reduced profits in the year under review. Cash generated from operations contributed R39,3 million (F2010: R41,0 million) to total cash and cash equivalents recorded at R35,0 million (F2010: R26,8 million) after capital and development expenditure of R9,4 million (F2010: R13,0 million) was incurred in the period under review, being for the following: - New product development - R4,3 million; and - Fixed assets acquired - R5,1 million. The Group has budgeted a further R5 million for product development and approximately R2 million for the installation of an additional surface mount production line in FSK in the following financial year. Both trade receivables and payables reduced in the year under review due to tighter control of working capital. Borrowings also reduced as a result of settling the bond over the Amecor House. Net asset value per share increased by 12,0% to 200,5 cents (F2010: 179,0 cents) and tangible net asset value per share increased by 18,6% to 109,5 cents (F2010: 92,3 cents). 1. Significant accounting policies Amecor is a company domiciled in South Africa. These condensed consolidated reviewed annual financial statements of the Amecor Group for the year ended 31 March 2011 comprise condensed consolidated reviewed annual financial statements of Amecor and its subsidiaries. These condensed consolidated reviewed annual financial statements were authorised for issue by the board of directors on 24 June 2011. 1.1 Basis of preparation These condensed consolidated reviewed results have been prepared in accordance with the Framework concepts and the measurement and recognition requirements of the International Financial Reporting Standards and containing information required by the International Accounting Standards 34 - Interim Financial Reporting, AC 500 standards, the Listings Requirements of the JSE Limited and in the manner required by the Companies Act. These condensed consolidated reviewed financial statements do not include all of the information required for full financial statements and should be read in conjunction with the consolidated annual financial statements for the year ended 31 March 2010. The Group envisages posting the 2011 annual reports towards the end of August 2011. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods. The accounting policies have been applied consistently by Group companies and have been applied consistently to all periods presented in these condensed consolidated reviewed financial statements. 2. Review of results Mazars has signed an unqualified review opinion on these condensed consolidated financial statements, as required by the JSE Limited. These financial statements have been approved by the board and condensed for the purposes of this report. The auditors review opinion is available for inspection at Amecor`s registered office. 3. Earnings per share ("EPS") EPS is based on the Group`s profit for the year ended 31 March 2011, divided by the weighted average number of shares in issue during the year. Weighted average Profit attributable number of shares
to equity holders in issue (net of of Amecor treasury shares Earnings (Reviewed) of 2,4 million) per share F2011 R`000 000`s Cents Earnings 21 360 75 553 28,3 Diluted earnings 21 360 75 553 28,3 Headline earnings reconciliation Basic earnings 21 360 Less: profit on sale (248) of property, plant and equipment Tax effect of 69 adjustment Headline earnings 21 181 75 553 28,0 Diluted headline 21 181 75 553 28,0 earnings F2010 Earnings 23 266 75 562 30,8 Diluted earnings 23 266 75 562 30,8 Headline earnings reconciliation Headline earnings 23 266 75 562 30,8 Diluted headline 23 266 75 562 30,8 earnings 4. Property, plant and equipment At 31 Current At 31
R`000 March March 2010 depreciation Additions Disposals 2011 Land 1 999 - 500 - 2 499 Buildings 8 952 (434) 1 280 - 9 798 Plant and 972 (704) 1 595 (58) 1 805 equipment Leasehold 12 (5) 13 - 20 improvements Motor vehicles 1 012 (545) 695 (55) 1 107 Furniture and 335 (118) 407 - 624 fittings Office equipment 330 (90) 300 - 540 Computer 360 (300) 358 - 418 equipment and software 13 972 (2 196) 5 148 (113) 16 811
5. Segmental analysis The Group`s operating segments and segmental information presented in the condensed consolidated reviewed results for the year ended 31 March 2011 represents the Group`s management and internal reporting structure. Intersegment transactions are concluded at arm`s length terms and conditions. Year ended Year ended 31 March 2011 31 March 2010 (Reviewed) (Audited)
R`000 R`000 Segment turnover Security and related production and sales 45 410 41 983 Network and annuity income 18 968 15 513 Supply and maintenance of alternative power 76 354 83 159 sources Holding and management subsidiary companies 8 668 20 912 Consolidation adjustments (8 668) (23 431) Total turnover 140 732 138 136 Comprehensive income Security and related production and sales 10 930 9 305 Network and annuity income 10 457 8 418 Supply and maintenance of alternative power 3 718 7 128 sources Holding and management subsidiary companies 5 145 3 039 Consolidation adjustments (6 906) (1 073) Total comprehensive income 23 344 26 817 Comprehensive income attributable to non- controlling shareholders Supply and maintenance of alternative power 1 984 3 551 sources Assets Security and related production and sales 48 026 53 847 Network and annuity income 32 527 22 914 Supply and maintenance of alternative power 43 848 47 129 sources Holding and management subsidiary companies 104 698 107 050 Consolidation adjustments (55 524) (62 604) Total assets 173 575 168 336 Liabilities Security and related production and sales (4 895) (18 947) Network and annuity income (1 966) (352) Supply and maintenance of alternative power (11 750) (16 680) sources Holding and management subsidiary companies (54 408) (55 666) Consolidation adjustments 50 926 58 592 Total liabilities (22 093) (33 053) 6. Related party transactions The Company and its subsidiaries do have dealings with each other but these are eliminated on consolidation. R`000 F2011 F2010 Purchases between subsidiary companies 11 348 13 750 Management fees 7 928 9 680 Operating lease rentals 874 619 Other related parties Property rental agreements 200 838 7. Dividends The Directors have elected to pay a single annual dividend in the amount of 8 cents (F2010: 8 cents) per ordinary share. Secondary Tax on Companies payable will total approximately R624 000 (F2011: R624 000). Accordingly the Group`s annual dividend, payable on Monday, 25 July 2011, for the year ended 31 March 2011, will be calculated as follows: 2011 2010 Distributable dividend (R000`s) 6 239 6 239 Total number of shares in issue (000`s) 77 986 77 986 Dividend payable per share (cents) 8 8 Last day to trade cum dividend Friday, 15 July 2011 Trading ex dividend commences Monday, 18 July 2011 Record date Friday, 22 July 2011 Payment date Monday, 25 July 2011 Share certificates may not be dematerialised or rematerialised between Monday, 18 July 2011 and Friday, 22 July 2011, both dates inclusive. The certificated register will be closed for this period. 8. Directors HS Courtney (Non-executive chairman) DH Alexander (Chief executive officer) KA Colley (Financial director and company secretary) M Noge (Independent non-executive director) KA Vieira (Operational director) CH Boulle (Non-executive director)+ All of the above directors are South African and are resident in South Africa. + Appointed 1 June 2011 On behalf of the board HS Courtney DH Alexander Chairman* Chief Executive Officer Sandton 24 June 2011 Auditors Mazars 2nd Floor Mazars House, 5 St Davids` Place, Parktown, 2193 (PO Box 6697, Johannesburg, 2000) Transfer Secretaries Link Market Services (Proprietary) Limited 11 Diagonal Street, Johannesburg, 2001 (PO Box 4844, Johannesburg, 2000) Registered Office Resource House 7 Spring Street, Rivonia, 2196 (PO Box 1962, Rivonia, 2128) Sponsor Sasfin Capital Limited (A division of Sasfin Limited) 29 Scott Street, Waverly, 2090 (PO Box 95104, Grant Park, 2051) Visit us at www.amecor.com INNOVATION THROUGH TECHNOLOGY Date: 29/06/2011 09:14:23 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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