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

SLL - Stella Vista Technologies Limited - Interim financial results summary

Release Date: 15/06/2012 15:02
Code(s): SLL
Wrap Text

SLL - Stella Vista Technologies Limited - Interim financial results summary for the six months ended 29 February 2012 Stella Vista Technologies Limited (Incorporated in the Republic of South Africa) Company registration number 1998/000172/06 JSE share code: SLL ISIN: ZAE000018198 ("Stella Vista" or "the Company" or "the Group") INTERIM FINANCIAL RESULTS SUMMARY FOR THE SIX MONTHS ENDED 29 FEBRUARY 2012 CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME Unaudite Unaudited Audited
d 6 months 6 months 12 months ended ended ended 29-Feb- 28-Feb-11 31-Aug-11
12 NR`000 R`000 R`000 o t
e Revenue 10,842 17,940 27,414 Gross Profit 6,513 11,134 16,866 (Loss)/profit before (40) 2,496 2,672 interest and depreciation Depreciation (2,007) (1,848) (3,803) (Loss)/profit before (2,047) 648 (1,131) interest and taxation Investment income 0 0 0 Finance cost (16) (195) (744) (Loss)/profit before (2,063) 453 (1,875) taxation Taxation - - 392 (Loss)/profit after (2,063) 453 (1,483) taxation Other comprehensive (loss)/income: Foreign currency 241 - (85) translation differences on foreign operations Total comprehensive (1,822) 453 (1,568) (loss)/profit for the year (Loss)/profit attributable to: - Equity holders of the (1,973) 400 (1,319) parent company - Non-controlling (90) 53 (164) interests (Loss)/profit for the year (2,063) 453 (1,483) Total comprehensive (loss)/profit attributable to: - Equity holders of the (1,722) 400 (1,393) parent company - Non-controlling (100) 53 (175) interests Total comprehensive (1,822) 453 (1,568) (loss)/profit for the year Earnings and headline earnings per share (cents) (Loss)/earnings per share 3(1.36) 0.28 (0.91) Headline (Loss)/earnings 3(1.19) 0.28 (0.96) per share CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION Unaudite Unaudited Audited
d 6 months 12 months 6 months ended ended ended 28-Feb-11 31-Aug-11 29-Feb- R`000 R`000
12 R`000 ASSETS Non-current assets 9,389 8,370 11,086 Property, plant and 8,328 7,701 10,025 equipment Deferred taxation assets 1,061 669 1,061 Current assets 16,727 16,354 12,994 Inventory 7,161 12,261 7,838 Trade and other receivables 9,076 3,619 4,140 Cash and cash equivalents 490 474 1,016 TOTAL ASSETS 26,116 24,724 24,080 EQUITY AND LIABILITIES Equity 7,404 10,692 9,226 Attributable to Stella 7,374 10,119 9,096 Vista Non-controlling interests 30 573 130 Non-current liabilities 239 1,310 360 Interest-bearing borrowings 0 155 34 Deferred revenue 239 1,155 326 Current liabilities 18,473 12,722 14,495 Trade and other liabilities 10,381 5,916 6,847 Deferred revenue 515 637 1,068 Taxation payable 459 459 459 Current portion of interest- 7,073 5,698 5,995 bearing borrowings Bank overdraft 45 12 125 TOTAL EQUITY AND 26,116 24,724 24,080 LIABILITIES Net Asset Value per share 5.09 6.98 6.27 (cents) CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS Unaudite Unaudited Audited d 6 months 12 months 6 months ended ended ended 28-Feb-11 31-Aug-11
29-Feb- R`000 R`000 12 R`000 Net (loss)/profit before (2,063) 453 (1,875) tax and separately disclosed items Non-cash items 1,567 (6,908) 590 Working capital changes (725) 4,048 (96) Cash generated from (1,220) (2,407) (1,381) operations Investment income 0 0 0 Finance cost (16) (195) (744) Taxation refunded/(paid) - - - Cash flow from operating (1,236) (2,602) (2,125) activities (Sale)/purchase of (255) 275 (132) property, plant and equipment Cash flow from investing (255) 275 (132) activities Proceeds from interest 1,044 1,350 1,709 bearing borrowings Cash flow from financing 1,044 1,350 1,709 activities Net movement in cash and (447) (977) (546) cash equivalents Cash and cash equivalents 891 1,439 1,439 at beginning of year Cash and cash equivalents 445 462 891 at end of year CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY for the six months ended Share Foreign Share February 2012 capital currency based and translation payment premium reserve reserve
R `000s Audited balance at 1 19,650 (1,655) 693 September 2010 Share options forfeited 693 - (693) transferred to share premium Total comprehensive loss - (85) - for the year Audited balance at 31 20,343 (1,740) - August 2011 Total comprehensive loss - 241 - for the year Unaudited balance at 29 20,343 (1,499) - February 2012 Accumula Attributable Non-controlling Total ted to equity interests equity
Losses holders of the parent company R `000s Audited balance at 1 (7,894) 10,489 305 10,794 September 2010 Share options forfeited - - - - transferred to share premium Total comprehensive loss (1,483) (1,394) (175) (1,568) for the year Audited balance at 31 (9,377) 9,096 130 9,226 August 2011 Total comprehensive loss (2,063) (1,722) (100) (1,822) for the year Unaudited balance at 29 (11,450) 7,374 30 7,404 February 2012 NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Basis of preparation 1. The interim results for the six months ended 29 February 2012 ("interim period under review") have been prepared in accordance with lAS 34 - Interim Financial Reporting, the South African Companies Act 2008 (Act 71 of 2008) and the JSE Listings Requirements. 2. Accounting policies The accounting policies and methods of computation applied in the preparation of the results for the interim period under review are consistent with those applied in the preparation of the group`s annual financial statements for the year ended 31 August 2011. 3. Reconciliation of earnings and headline (loss)/earnings (Loss)/profit after taxation attributable to: Ordinary equity holders of the (1,973) 400 (1,319) parent entity for the year Loss on disposal of property, - - - plant and equipment Diluted (loss)/earnings (1,973) 400 (1,319) Foreign currency translation 251 0 (74) differences Headline (loss)/earnings (1,722) 400 (1,394) Weighted average number of 145,000 145,00 145,000 shares in issue (000`s) 0 (Loss)/earnings per share (1.36) 0.28 (0.91) (cents) Diluted headline (1.36) 0.28 (0.91) (loss)/earnings per share (cents) Headline (Loss)/earnings per (1.19) 0.28 (0.96) share (cents) 4. Segment information Management has determined the operating segments based on the monthly reports reviewed by the board of the directors that are used to make strategic decisions. The chief operating decision maker has been identified as the group`s chief executive officer. The chief executive officer considers the business from a geographical basis as the products and business are the same across all business segments. The chief executive officer assesses the performance of the operating segments based on revenue, operating profit and cash flow. The monthly management accounts tabled at the board meeting and used by the chief operating decision maker are in line with IFRS. South African operations, which earns revenue from the sale of the screens United Kingdom operations, which earns rental income from renting of screens R `000s South United Total Africa Kingdom Unaudited at 29 February 2012 Total segment revenue 7,880 3,088 10,968 Inter-segment revenue (126) - (126) Revenue from external 7,754 3,088 10,842 customers Cost of sales 3,751 578 4,329 Depreciation and 194 1,813 2,007 amortisation Income tax credit/(expense) - - - Loss after tax 263 1,799 2,063 Inventory 7,161 - 7,161 Total assets 17,335 8,781 26,116 Total liabilities 10,389 8,352 18,742 Audited at 31 August 2011 Total segment revenue 21,881 8,220 30,100 Inter-segment revenue (2,687) - (2,687) Revenue from external 19,194 8,220 27,414 customers Cost of sales 8,494 2,053 10,547 Depreciation and 528 3,275 3,803 amortisation Income tax credit/(expense) 392 - 392 Loss/(profit) after tax (719) 2,202 1,483 Inventory 7,838 - 7,838 Total assets 12,270 11,810 24,080 Total liabilities 13,757 1,097 14,854 DIRECTORS COMMENTARY Introduction The Company Stella Vista Technologies Limited (Stella Vista) was established in February 1994 and has over the years been a leader in design and provision of information solutions based on LED electronic displays in South Africa, Middle East, the Indian sub-continent, the Caribbean and the UK and Ireland. In addition to the head office and factory situated in Kyalami, South Africa the company owns Stella Vista International Ltd, with offices and warehouse in Hampton, England. Stella Vista is one of the frontrunners in the visual mass communications industry worldwide. Driven by the pursuit of excellence, the Company prides itself on reliability and superior service made possible by its vision, creativity, ambition and integrity. The Market and prospects The Economic situation and entry of cheap Chinese screens has resulted in tougher competition and increased pressure on margins. Further complications are introduced by South African regulations being strictly applied to local manufacturers and not applicable to our overseas competitors. The end result is a significant reduction of sales income and a reduction in workforce. Local buyers believe they are safer if they import products regardless of price competitiveness and lack of local support what could have grave consequences as the expected life span of an LED display is 10 years. We have embarked on a customer education programme promoting the benefit of procurement through a local manufacturer offering guidance on product design solutions and the benefits of local back up and technical support thus ensuring an improved ROI for our customers. A few major projects were delayed because of the economic situation in Europe, and our rental income was adversely affected due to the lack of Autumn Internationals in Europe as a result of the Rugby World Cup 2011.We are striving to maintain and further develop business with our current customers by improving our competitiveness through cutting costs and making partnerships in fields where the South African environment is not competitive (production, volume purchasing, cost of doing business...). At the same time we are offering a wider range of quality options at different price points and we are making significant efforts to expand our customer base which will result in more cost effective products and services. Products and services On a positive note, during the period under review Stella Vista re-entered the VMS (variable message signs) market and in partnership with Dimension Data developed a Traffic LED Display for installation onto a mobile trailer with a solar power supply. We also recently concluded an agreement to feature perimeter LED`s in cricket where in two of these events over 400m of LED signage will be deployed and includes the 4th ODI cricket match between England and South Africa in Cardiff. Our R&D in partnership with a few international developers are aggressively developing innovative new products and services which will translate into greater value and savings for our customers which in turn will increase our market share going forward. The value of Stella Vista`s faceUpRegistered standard is continuing to prove its existence, the creation of a 2nd hand market for used displays provided income during this period. In addition the logic of buying used products is to start a business with lower entry investments and still have an opportunity to upgrade equipment later with the newest technology at a fraction of the cost. The current worldwide trend confirms that billboards are going digital and we see major opportunities in this sector in the future. We strongly believe in the many advantages of our design in this highly competitive market. Financial results Stella Vista is operating in a difficult environment for the LED industry worldwide, when comparing the first 6 months of 2011, the result is a reduction in revenue of 39.6%, a reduction in Gross Profit of 41.5% and a profit of R453 thousand turning to a loss of R1.8 million. The current economic times continue to be challenging to Stella Vista however Management stays committed to growth of the business and market footprint. In terms of technology we are and will remain committed to innovations and excellence. Subsequent events and capital commitments There have been no significant events since the end of the interim period under review and the date of this report. There was no significant capital expenditure authorised as at 29 February 2012. Dividends The Board has resolved not to declare dividends until the Group`s liquidity position has improved. On behalf of the directors M. Tabakovic Chief Executive Officer Registered office 62 Kyalami Boulevard, Kyalami Business Park, Kyalami Tel: (0ll) 466 2020 Website: www.stellavista.com E-mail: muris@stellavista.com Directors M. Tabakovic (Chief Executive Officer) C. Livingstone (Non-executive) D. Tabakovic L. Kerr Company secretary L. Kerr Sponsor Arcay Moela Sponsors (Pty) Limited Auditors IAPA Johannesburg Chartered Accountants (SA) Date: 15/06/2012 15:02:19 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