To view the PDF file, sign up for a MySharenet subscription.

ISA - ISA Holdings Limited - Unaudited results for the six months ended 31

Release Date: 14/10/2011 09:40
Code(s): ISA
Wrap Text

ISA - ISA Holdings Limited - Unaudited results for the six months ended 31 August 2011 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 2011 31-Aug-11 31-Aug-10 28-Feb-11 6 months 6 months Year ended ended ended Unaudited Unaudited Audited
R`000s R`000s R`000s CONDENSED CONSOLIDATED STATEMENTS OF COMRPEHENSIVE INCOME Revenue 36,392 32,463 62,064 Turnover 35,660 31,349 59,223 Cost of sales (20,238) (15,165) (28,656) Profit before other income and Expenses 15,422 16,184 30,567 Other income 6 2 537 Revaluation profit on equity investments - 58 493 Foreign exchange profit/(loss) 10 (575) (1,255) Operating expenses (6,676) (6,343) (11,583) Finance income 695 1,056 1,751 Finance costs (87) (138) (267) Profit before taxation 9,370 10,244 20,303 Taxation (3,471) (3,938) (6,656) Profit for the year 5,899 6,306 13,647 Total comprehensive income attributable to equity shareholders 5,899 6,306 13,647 CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION ASSETS Non-current assets 5,508 5,842 5,765 - Property, plant and equipment 508 399 577 - Intangible assets 4,560 4,906 4,960 - Deferred tax 440 537 228 Current assets 48,643 50,011 48,862 - Cash and cash equivalents 32,059 29,705 41,243 - Equity investments - 4,623 - - Inventories - 3,793 - - Current tax receivable 41 - 210 - Trade and other receivables 16,543 11,890 7,409 Total assets 54,151 55,853 54,627 EQUITY AND LIABILITIES Equity capital and reserves 40,059 38,923 43,464 - Share capital and share premium 13,442 14,607 11,494 - Reserves 26,617 24,316 31,970 LIABILITIES Long term liabilities - 3,682 - - Interest bearing liabilities - 3,682 - Current liabilities 14,092 13,248 11,163 - Interest bearing liabilities - - 3,810 - Trade and other payables 13,333 9,430 6,974 - Current tax payable 375 3,241 - - Provisions 384 577 379 Total equity and liabilities 54,151 55,853 54,627 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW Cash flows from operating activities 3,415 1,340 10,651 Cash flows from investing activities 635 727 6,436 Cash flows from financing activities (13,244) (14,494) (17,296) Net decrease in cash and cash equivalents (9,194) (12,427) (209) Revaluation of foreign cash balances 10 (575) (1,255) Cash and cash equivalents at beginning of the period 41,243 42,707 42,707 Cash and cash equivalents at end of the period 32,059 29,705 41,243 CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY Share capital and reserves Balance at beginning of the period 43,464 47,112 47,112 Attributable profit for the period 5,899 6,306 13,647 Purchase of treasury shares - - (2,875) Movement of share premium during the period 1,988 (3,200) (3,200) Dividends paid during the period (11,292) (11,295) (11,220) Total equity capital and reserves 40,059 38,923 43,464 RECONCILIATION OF HEADLINE EARNINGS Earnings as per statement of comprehensive income 5,899 6,306 13,647 Profit on sale of property, plant and equipment 6 - - Tax effect on above (3) - - Headline earnings 5,902 6,306 13,647 ORDINARY SHARES Earnings per share (cents) 3.2 3.4 7.2 Diluted earnings per share (cents) 3.2 3.4 7.2 Headline earnings per share (cents) 3.2 3.4 7.2 Diluted headline earnings per share (cents) 3.2 3.4 7.2 Number of shares in issue at end of period (`000s) 183,600 188,233 183,600 Weighted average number of shares in issue (`000s) 183,600 188,233 188,918 Treasury shares held at end of period (`000s) 8,517 4,360 8,517 Net asset value per share at end of period (cents) 21.8 20.7 23.7 Net tangible asset value per share at end of period (cents) 19.3 18.1 21.0 OPERATIONAL REVIEW We are pleased to present our results for the 6 month reporting cycle ending 31 August 2011. Despite the continued strengthening of the Rand, as well as the slower than expected economic recovery, overall performance remains satisfactory. Most pleasing was the increase in turnover of 14% through the cycle. The composition of revenue was less encouraging however, as the proportion of lower margin product sales was higher than the last few reporting cycles. This shift in turnover composition, together with a slight contraction in service revenue, resulted in a disappointing 43% gross profit margin for the period under review. A healthy cash reserve of R32 million continues to underpin our strong statement of financial position, this after the R14.4 million cash reduction resulting from the distribution to shareholders during the period. A third of this reserve is held in major foreign currencies, mostly US Dollars. The uncharacteristically high trade receivables balance of R16.5 million relates predominantly to a few large projects for reputable corporate clients. By its very nature, larger projects extend over longer periods, which necessitate the short term servicing of the projects with capital reserves. During the period under review, the final leg of our BEE transaction with EmpowerGroup was successfully concluded and the balance of their interest bearing loan was credited to the company`s share premium account. DISTRIBUTION During the period under review, distributions totaling 7.2 cents per share were declared and paid to all shareholders. The mandatory STC charge of R1.2 million contributed substantially to the overall taxation expense during this period. The Board has not declared an interim dividend. PROSPECTS We are of the view that the economic recovery is underway, although it is likely to play itself out over a longer timeframe than was initially anticipated. The strength of our underlying business, together with its healthy capital structures and market positioning, bodes well for ISA and management remain confident that they have the tools at their disposal to outperform their peers in the years to come. BASIS OF PREPARATION These interim results to 31 August 2011 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 long term objectives. For and on behalf of the board. Clifford Katz Chief Executive Officer 14 October 2011 Designated advisor: Exchange Sponsors www.isaholdings.co.za Date: 14/10/2011 09:40:11 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.

Share This Story