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PBT - PBT GROUP - Audited final results for the seven month period ended

Release Date: 31/05/2012 17:28
Code(s): PBT
Wrap Text

PBT - PBT GROUP - Audited final results for the seven month period ended 31 March 2012 PBT GROUP (Registration number 1936/008278/06) Share code: PBT ISIN: ZAE000149712 ("PBT Group" or "the company" or "the group") AUDITED FINAL RESULTS FOR THE SEVEN MONTH PERIOD ENDED 31 MARCH 2012 Audited Statement of Financial Position As at As at 31 March 31 August Figures in Rand 2012 2011 Assets Non-current assets Property, plant and equipment 1 991 805 1 875 479 Goodwill 7 564 932 7 564 932 Intangible assets 21 016 794 16 288 219 Other financial assets 3 733 135 2 904 256 34 306 666 28 632 886 Current assets Inventories 27 327 162 24 838 963 Current tax receivable 4 983 546 1 739 110 Trade and other receivables 49 539 516 50 025 419 Cash and cash equivalents 8 625 877 3 103 970 90 476 101 79 707 462
Total assets 124 782 767 108 340 348 Equity and liabilities Equity Equity attributable to equity holders of parent Share capital 128 165 128 165 Reserves 27 892 552 27 831 450 Retained earnings 46 635 136 41 191 366 74 655 853 69 150 981
Non-controlling interest 3 985 133 3 273 748 78 640 986 72 424 729 Liabilities Non-current liabilities Other financial liabilities 3 243 466 1 678 601 Deferred tax 6 790 607 1 990 655 10 034 073 3 669 256 Current liabilities Current tax payable 3 849 946 - Trade and other payables 13 245 511 13 554 949 Provisions 4 473 720 4 506 215 Bank overdraft 14 538 531 14 185 229 36 107 708 32 246 393 Total liabilities 46 141 781 35 915 649 Total equity and liabilities 124 782 767 108 340 378 Net asset value per share (cents) 26.5 24.5 Audited Statement of Comprehensive Income For the For the seven-month twelve-month period ended period ended
31 March 31 August Figures in Rand 2012 2011 Revenue 129 668 881 190 576 074 Cost of sales (88 611 898) (121 872 505) Gross profit 41 056 983 68 703 569 Other income 3 900 731 1 755 470 Operating expenses (21 597 586) (34 343 038) Operating profit 23 360 128 36 116 001 Investment revenue 232 568 693 216 Finance costs (642 017) (1 360 172) Profit before taxation 22 950 679 35 449 045 Taxation (6 891 490) (10 775 629) Profit for the period 16 059 189 24 673 416 Other comprehensive income: Exchange differences on translating foreign operations 80 930 180 749 Total comprehensive income 16 140 119 24 854 165 Profit attributable to: Owners of the parent 14 828 632 22 676 211 Non-controlling interest 1 230 557 1 997 205 16 059 189 24 673 416 Total comprehensive income attributable to: Owners of the parent 14 889 734 22 856 960 Non-controlling interest 1 250 385 1 997 205 16 140 119 24 854 165 Number of shares issued 281 826 818 281 826 818 Weighted average number of shares 281 826 818 197 795 721 Earnings per share (cents) Basic earnings per share 5.3 11.5 Headline earnings per share 5.3 11.5 Diluted earnings per share 5.3 11.5 Diluted headline earnings per share 5.3 11.5 Audited Statement of Changes in Equity Foreign Total currency Share Share share translation
Figures in Rand capital premium capital reserve Balance at 1 September 2010 95 700 32 465 128 165 - Changes in equity Total comprehensive income for the period - - - 180 749 Business combination - - - - Transfer of redemption reserve - - - - Dividends - - - - Total changes - - - 180 749 Balance at 1 September 2011 95 700 32 465 128 165 180 749 Changes in equity Total comprehensive income for the 7 months - - - 61 102 Dividends - - - - Total changes - - - 61 102 Balance at 31 March 2012 95 700 32 465 128 165 241 851 Total attributable to Other non- equity holders Figures in distributable Total Retained of the group/ rand reserve reserves earnings company Balance at 1 September 2010 27 816 320 27 816 320 26 719 929 54 664 414 Changes in equity Total comprehensive income for the period - 180 749 22 676 211 22 856 960 Business combination 84 381 84 381 - 84 381 Transfer of redemption reserve (250 000) (250 000) 250 000 - Dividends - - (8 454 804) (8 454 804) Total changes (165 619) 15 130 14 471 407 14 486 537 Balance at 1 September 2011 27 650 701 27 831 450 41 191 336 69 150 951 Changes in equity Total comprehensive income for the period - 61 102 14 828 632 14 889 734 Dividends - - (9 384 832) (9 384 832) Total changes - 61 102 5 443 800 5 504 902 Balance at 31 March 2012 27 650 701 27 892 552 46 635 136 74 655 853 Non-controlling Total
Figures in Rand interest equity Balance at 1 September 2010 1 231 105 55 895 519 Changes in equity Total comprehensive income for the period 1 997 205 24 854 165 Business combination 45 438 129 819 Transfer of redemption reserve - - Dividends - (8 454 804) Total changes 2 042 643 16 529 180 Balance at 1 September 2011 3 273 748 72 424 699 Changes in equity Total comprehensive income for the 7 months 1 250 385 16 140 119 Dividends (539 000) (9 923 832) Total changes 711 385 6 216 287 Balance at 31 March 2012 3 985 133 78 640 986 Audited Statement of Cash Flows For the For the
seven-month twelve-month period ended period ended 31 March 31 August Figures in Rand 2012 2011 Cash flows from operating activities Cash receipts from customers 133 560 791 89 139 010 Cash paid to suppliers and employees (109 054 763) (75 313 659) Cash-generated in operations 24 506 028 13 825 351 Interest income 232 568 693 216 Finance costs (642 017) (1 360 172) Tax paid (1 486 028) (3 054 543) Exchange differences on translating foreign operations 80 929 180 748 Net cash from operating activities 22 691 480 10 284 600 Cash flows from investing activities Additions of property, plant and equipment - increase in operating capacity (677 188) (849 890) Sale of property, plant and equipment - 344 533 Additions of other intangible assets (7 657 841) (15 688 572) Business combinations - business acquisition - 2 876 638 Purchase of financial assets (828 879) (188 663) Net cash from investing activities (9 163 908) (13 505 954) Cash flows from financing activities Repayment of other financial liabilities 1 564 865 (4 660 738) Dividends paid (9 923 832) (8 454 804) Net cash from financing activities (8 358 967) (13 115 542) Total cash movement for the period 5 168 605 (16 336 896) Cash at the beginning of the period (11 081 259) 5 255 637 Total cash at the end of the period (5 912 654) (11 081 259) Current assets 8 625 877 3 103 970 Current liabilities (14 538 531) (14 185 229) Total cash at the end of the period (5 912 654) (11 081 259) Audited Notes to the Consolidated Financial Statements for the Seven Months ended 31 March 2012: 1. Basis of preparation The consolidated financial statements of PBT Group Limited have been prepared in accordance with International Financial Reporting Standards, the AC 500 Standards as issued by the Accounting Practices Board or its successor and the Companies Act No. 71 of 2008 of South Africa. The consolidated financial statements have been prepared on the historical cost and accrual basis of accounting (except for cash flow information), except for certain financial instruments carried at fair value and inventory measured at the lower of cost and realisable value and incorporate the principal accounting policies set out below. The functional and presentation currency of the group is the South African Rand. These accounting policies are consistent with those applied in the financial results for the year ended 31 August 2011. The consolidated financial statements have been audited by LDP Inc. Their unqualified audit report is available for inspection at the company`s registered office. The consolidated financial statements were prepared under the supervision of Bianca Pieters CA(SA). For the For the seven-month twelve-month
period ended period ended 31 March 31 August 2012 2011 Figures in Rand 2. Revenue Rendering of services 129 668 881 190 576 074 3. Dividends paid Dividends (9 923 832) (8 454 804) A final dividend of 3.3c per ordinary share (total payment: R9 384 832) for the financial year ending 31 August 2011 was paid on 9 January 2012. The dividend was proposed by the directors and authorised by the shareholders of the company. A final gross dividend of 3.45c per ordinary share (total payment: R9 723 025), based on the results for this period, was paid on 21 May 2012. Segment Report The group is organised into two main segments based on the type of industries they deliver services to. For management purposes, the group is organised into two distinct business segments, based on the services that each provides. The group is a pure services company and derives no income from the selling of third party software or hardware. The pricing structure for the "insurance and medical aid administration software and services" segment is largely based on the number of members administered. Management monitors the operating results of the business segments continuously to optimise the allocation of resources and to assess performance and profitability. Finance costs, finance income and income taxes are managed on a group basis. Insurance and Computer medical aid
software administration consulting and software and Figures in Rand implementation services Other COMPREHENSIVE INCOME Revenues from external customers 119 621 762 11 026 741 520 960 Intragroup revenues 6 255 472 827 685 - Revenue total 125 877 234 11 854 426 520 960 Operating profit 22 370 992 1 678 302 (689 166) Interest income 2 425 012 169 095 (2 361 539) Interest expenses (860 693) (27 304) 245 980 Income taxes (6 264 702) (626 788) - Profit (loss) for the period 17 670 609 1 193 305 (2 804 725) FINANCIAL POSITION Reportable segment assets 299 288 396 8 287 881 686 184 498 Assets total 299 288 396 8 287 881 686 184 498 Reportable segment liabilities (702 551 265) (3 148 857) (198 109 069) Liabilities total (702 551 265) (3 148 857) (198 109 069) OTHER INFORMATION Capital expenditure(2) 6 926 305 1 408 724 - Depreciation and amortisation 2 710 963 779 165 - Movement in provision for leave pay and bonuses 77 016 (44 521) - Impairment on investment in subsidiaries - - 40 696 828 Reversal of impairment loans to group companies - - (17 663 382) Eliminations and
Figures in Rand adjustments Consolidated COMPREHENSIVE INCOME Revenues from external customers - 131 169 463 Intragroup revenues (8 583 739)(1) (1 500 582) revenue total (8 583 739) 129 668 881 Operating profit 8 062 917 23 360 128 Interest income 3 155 495 232 568 Interest expenses (2 594 495) (642 017) Income taxes - (6 891 490) Profit (loss) for the period 8 623 917 16 059 189 FINANCIAL POSITION Reportable segment assets (868 978 008) 124 782 767 Assets total (868 978 008) 124 782 767 Reportable segment liabilities 857 667 410 (46 141 781) Liabilities total 857 667 410 (46 141 781) OTHER INFORMATION Capital expenditure(2) - 8 335 029 Depreciation and amortisation - 3 490 128 Movement in provision for leave pay and bonuses - 32 495 Impairment on investment in subsidiaries (40 696 828) - Reversal of impairment loans to group companies 17 663 382 - NOTES 1. Intragroup consulting fees are charged at approximate market prices. 2. Capital expenditure consists of additions to property, plant and equipment and intangible assets. Sales between segments are eliminated in the "Eliminations and adjustments" column. The revenue from external parties and all other items of income, expenses, profits and losses reported in the segment report is measured in a manner consistent with that in the statement of comprehensive income. Geographic information Revenue from external Non-current Figures in Rand customers(3) assets(4) Africa and Middle East 37 509 657 - Australia 31 522 228 263 371 Republic of South Africa 60 636 995 22 745 228 129 668 881 23 008 599 3. The revenue information above is based on the location of the customer. 4. The non-current assets information above is based on the location in the entity`s country of domicile. COMMENTARY COMMENTARY 1. GROUP RESULTS The Group recorded a profit before taxation of R22 950 679 for the seven-month financial period ended 31 March 2012. Taxation amounted to R6 891 490, resulting in an after-tax profit of R16 059 189. Earnings per share and headline earnings per share amounted to 5.26 cents per share. 2. OPERATIONAL REVIEW The group experienced strong demand, both locally and internationally, for its services during the seven month period under review. On an annualised basis, revenue grew by 16.6% and net profit before tax increased by 11%. In the healthcare sector the company`s Australian operation showed significant growth which is expected to continue during the next financial year. The South African operation continues to perform as expected, benefiting from the increased client base. During this period, 53% of the company`s revenue was derived from international operations. The company has entered the implementation phase of a large international project which will, in conjunction with the growth in the Australian operation, result in an even larger percentage of total revenue for the next financial year being derived from its global operations. 3. ACQUISITION OF THE PRESCIENT GROUP OF COMPANIES, THE RESULTING REVERSE LISTING AND CAPITAL RAISING Shareholders are referred to the SENS announcements dated 3 October 2011 and 8 November 2011. All suspensive conditions have been fulfilled except for PBT shareholder approval. The circular will be distributed to shareholders in due course, including a notice of General Meeting of shareholders. Irrevocable undertakings to vote in favour of the transaction have been obtained from shareholders representing 83.99% of the total issued shares. The effect of the acquisition and capital raising will be an increase in the issued share capital from 281 million shares to 1 526 million shares. In conjunction with the acquisition of Prescient, the company has raised R90 million through the placement of 66 666 666 shares at R1.35 each. This issue is conditional upon completion of the Prescient transaction and will strengthen the capital base for further acquisition opportunities. Subject to the approval of shareholders at the General Meeting, the name of the company will be changed from PBT Group Limited to Prescient Limited. 4. CHANGE IN YEAR-END The Group`s year-end has changed to 31 March from 31 August, resulting in a financial period of seven months to 31 March 2012. This change was effected in order to bring the group in line with the Prescient financial reporting period. 5. CHANGES TO THE BOARD In anticipation of the Prescient Group transaction, the following changes were made with effect from the 27th February 2012: Monty Kaplan was appointed as independent non-executive chairman after the resignation of Herman Steyn. The following directors resigned: Ken Wood Nitesh Vallabh Jason Kinnear Elizna Read Michelle Baron-Williamson The following were appointed as non-executive directors: Mike Buckham Ronell van Rooyen 6. DIVIDEND A final dividend of 3,3c per ordinary share (total payment: R9 384 832) for the financial year ending 31 August 2011 was paid on 9 January 2012. The group`s year end changed to 31 March resulting in a seven-month financial year. A final gross dividend of 3.45c per ordinary share (total payment: R9 723 025), based on the results for this period, was paid on 21 May 2012. 7. FURTHER ACQUISITION Subsequent to the year-end, PBT made 2 further acquisitions: - 100 % of Bi-Blue Consulting, which is a SAP Business Objects specialist company - 51 % of Cyberpro Consulting, which is highly regarded in the Microsoft environment, specialising in application development. The acquisition remains subject to the fulfilment of the suspensive conditions. Neither of these acquisitions are significant in size but will strengthen PBT`s product offering to the market. 8. PROSPECTS The Prescient acquisition and capital raising referred to above will result in a major change in the group, both in terms of its size and scope of business operations. The financial services operations of the Prescient Group, mainly asset management and stockbroking, will make a significant contribution to earnings. Based on current results the profit contribution of the two divisions is approximately 20 % technology and 80 % financial services. Shareholders should benefit from increased earnings potential, greater liquidity on the JSE and enhanced public profile of the Prescient product offerings. M KAPLAN Independent Non-executive Chairman Cape Town 31 May 2012 Directorate and administration Directors: M Kaplan (Chairman)*, PJ de Wet (Chief Executive Officer), AM Louw (Financial Director), R van Rooyen*, M Buckham* * Independent non-executive Company registration number 1936/008278/06 Share code: PBT ISIN: ZAE000149712 ("PBT Group" or "the company" or "the group") Domicile and registered office: Unit 3, Knowledge Park 3, Cnr Century Boulevard and Heron Crescent, Century City 7441, South Africa Postal address: (PO Box 276, Century City 7446) Contact details: Tel: 021 551 0937, Fax: 021 551 0923 Company secretary: B Pieters Transfer secretary: Link Market Services South Africa (Pty) Limited 13th Floor, Rennie House, 19 Ameshoff Street, Braamfontein 2001 Principal banker: Nedbank Limited Auditors: LDP Inc. Sponsor and Corporate advisor: Bridge Capital Advisors (Pty) Limited Date: 31/05/2012 17:28:01 Supplied by www.sharenet.co.za Produced by the JSE SENS Department. 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