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MIX TELEMATICS LIMITED - Unaudited group interim financial results for the six month period ended 30 September 2012

Release Date: 12/11/2012 07:05
Code(s): MIX     PDF:  
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Unaudited group interim financial results for the six month period ended 30 September 2012

MIX TELEMATICS LIMITED
Incorporated in the Republic of South Africa. 
Registration number 1995/013858/06
JSE code: MIX    ISIN:  ZAE000125316.    
(MiX or the Company or the Group)

Unaudited group interim financial results for the six month period ended 30 September 2012

Highlights
Revenue R564 million up 20,3%
Annuity revenue R324 million up 14,9%
Foreign revenue R276 million up 29,0%
EBITDA R130 million up 43,9%
Operating profit R76 million up 60,8%
Adjusted HEPS 9,3 cents per share up 43,1% 
First interim dividend declared of 4 cents per share
Subscriber base increased by more than 40 000 subscribers

The unaudited financial results were prepared under the supervision of ML Pydigadu CA(SA) in her capacity as Financial Director of the Group and were made
available on 12 November 2012. 

A WORD FROM THE CEO, STEFAN JOSELOWITZ
The MiX group has got off to a fantastic start for this financial year. We have seen top-line growth continue to accelerate. For me, the most exciting number is
that we grew net subscribers by more than 40 000 over the past six months, double the growth in the comparative period. This is a sure sign that the long-term
strategic projects and technology investments that we have been making over the past years are really starting to pay off. Your group is competing more effectively
than ever before.
Whilst trading conditions remain challenging in many of the territories in which we operate, most of our businesses have delivered performances ahead of plan for
the year thus far. The group grew half-year revenue to R564 million (R469 million for the first half of last year), an increase of over 20%. EBITDA grew 44% to
R130 million (compared to R90 million for the comparative period last year).
Headline earnings for the six months were up 79% at R55 million (R31 million in 2011) which translates to 8,3 cents per share (cps) (4,7 cps in 2011). Adjusted
headline earnings were R61 million or 9,3 cps, up 44% from the comparative period (R42 million or 6,5 cps in 2011). The difference between normal- and adjusted-
is attributable to the write-back of the amortization of intangible assets arising on acquisitions.
I would like to take this opportunity to help potential investors understand the essence of the MiX Telematics Group:  
MiX Telematics is a global leader in fleet management, driver safety and vehicle tracking Solutions, helping customers world-wide to effectively manage their
mobile assets through our SaaS (Software-as-a-Service) delivery model combined with value-added services including stolen vehicle recovery, consulting and driver 
training.
To this end, we have organised the group into two primary divisions: Fleet Telematics (the home of our MiX Fleet Manager and MiX SafeDrive brands) and Consumer
Telematics (the home of our Matrix and Beam-e brands). Both divisions share some commonality in terms of base technology and platforms, but the services that each
provide are significantly different:
  Fleet Solutions  Currently accounting for roughly 70% of our group revenue and profits, this division is built on a typical SaaS model. Our customers rely on
  MiX Telematics on-board computers and accessories, web-based software (including powerful reporting and analytics tools) and value-added services to improve
  their overall productivity, operate more safely, and bring about significant cost and risk reductions. Our SaaS model is highly scalable in terms of adding new
  subscribers and territories as evidenced by the fact that we operate globally, on six continents, in 112 countries. In six of those countries we own and manage 
  regional operations and engage directly with our customers. In the balance of the countries we deal through third-party distributors. All of our distributors 
  (135 in total) and our regional operations source products and services from the business we call MiX International  this operation, based in Stellenbosch 
  South Africa, is responsible for much of the design, development and procurement of the MiX range of products and services. In effect, MiX International is a 
  central services organisation that wholesales our products and services to our regional operations and distributors who in turn, deal with our end-customers. MiX 
  International showed strong growth both at the revenue and EBITDA level. Most of our regional FLEET operations performed ahead of plan for the period under review:
  o AFRICA  This operation enjoyed a great six months with impressive growth at both top-line and profit level. Some new product offerings, which include a
    trailer-tracking solution, are finding favour with both new and existing customers. We are also pleased with our recent acquisition of Intellichain which has bedded
    down nicely. Intellichains integrated supply-chain management software dovetails perfectly with our current MiX Fleet Manager offerings and enhances our ability to
    further grow the SaaS component of our annuity stream.
  o North America  We have made great progress in implementing the mega-deals carried forward from last year. We are competing on a number of high-value tenders
    and need to see at least one turn into an order shortly. Our current exclusive focus on the Oil-and-Gas industry in this territory means that it is a
    feast-or-famine kind of business  the sales cycles on these big deals are long. We are at the stage of our evolvement in this territory where we need 
    to broaden our focus  the team has been tasked with identifying new verticals in addition to Oil-and-Gas. In the meantime, our geographic diversification is paying 
    off and we are seeing our efforts in Latin America starting to gain momentum.
 o  EUROPE  This business has performed behind plan for the year so far. Thankfully, we are still growing subscribers in the region albeit at a painfully slow
    rate. Revenue is well down on the previous comparative period for two reasons:
     Last year, we still had some revenue from One-Stop-Shop, the business we disposed of in that period.
     Investors might also recall that we converted the legacy DataTrak subscribers onto our core MiX platform and then shut down the DataTrak network. This
     conversion resulted in a lower revenue per subscriber.
 o  MIDDLE EAST  Although not an easy region to operate in right now, we have a well-established and experienced operation in place with a committed dealer
    channel in multiple countries. Our team has delivered a series of solid wins that have not only kept us on plan for the period, but also bode well for coming months.
 o  AUSTRALIA   This operation has delivered an excellent first-half performance and in the process has concluded a few mega-deals, which ensures that we have
    an abundantly full pipeline going forward.
 Consumer Solutions  Through our powerful offerings, we provide our customers not only with stolen-vehicle-recovery services but also a broad range of
 value-added safety and convenience features such as Crash-Alert, No-Go-Zones, and even an automated Tax Logbook. This division delivered great performance 
 so far this year particularly at the subscriber growth level. Market acceptance of our new Beam-e offering has been fantastic.
 Analysis of the numbers will reveal that the subscriber growth does not appear to have flowed through to the revenue line  this is not the case. During the
 period under review, we changed the cellular data package that we use in this division to a non-CIB (connection incentive bonus) package. The quid-pro-quo for
 foregoing this CIB (and the resultant negative impact on our revenue line) is that our monthly cellular data costs have reduced and the overall effect is that the 
 move is earnings enhancing. 
 Our consumer business currently operates primarily in South Africa but our team is in the process of taking the first major step towards globalisation. Watch
 this space!
Returning to a few additional financial indicators:
Annuity revenue: This remains one of our key performance measures and we are happy to yet again show strong growth in our recurring revenue. For the six months
under review, annuity revenue grew to R324 million (up from R282 million as at September 2011) and it now represents a healthy 57% of total revenue.
Cash: Frankly, I am disappointed with our cash performance for this period. The group generated cash from operations of R66 million for the half-year period.
This is R10 million less than the 2011 comparative period. In accounting speak we could say that we have invested heavily in additional working capital but I am not
an accountant. The reality is that we were ineffective in following up on some slow payments from a handful of large debtors. Although we have made good progress
in rectifying this situation in October, we intend to make sure that we dont let ourselves down again going forward.
Foreign revenue grew to R276 million for the half-year period (up from R214 million as at September 2011) and represents close to half of total revenue.
Arising out of the strong financial performance of the group, the Board has for the first time approved an interim dividend of 4 cents per share. 
We have enjoyed a great start to the year but I must confess that we remain nervous about the economies in some of the key territories in which we operate. Of
particular concern is the Eurozone where we are experiencing very tough trading conditions. Trading conditions aside, we believe that we have the talent and
technologies to meet our medium-term objectives. Once again, I would like to extend the Boards and my deep appreciation to our fantastic employees for their superb
efforts over the past six months.


 CONDENSED CONSOLIDATED INCOME STATEMENT                                                                                                                                                      
                                                            6 months           6 months         12 months   
                                                               ended              ended             ended   
                                                        30 September       30 September          31 March   
                                                                2012               2011              2012   
                                                           Unaudited          Unaudited           Audited   
                                                               R'000              R'000             R'000   
  Revenue                                                    564 341            468 974         1 018 482   
  Cost of sales                                             (210 945)          (182 820)         (390 926)  
  Gross profit                                               353 396            286 154           627 556   
  Other income  net                                           4 598              3 148             7 008   
  Operating expenses                                        (281 649)          (241 833)         (488 176)  
  Operating profit (note 3)                                   76 345             47 469           146 388   
  Finance income                                               1 090                865             2 392   
  Finance cost                                                (1 993)            (3 373)           (5 265)  
  Profit before taxation                                      75 442             44 961           143 515   
  Taxation                                                   (21 972)           (14 751)          (40 275)  
  Profit for the period attributable to shareholders          53 470             30 210           103 240   



 CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION                                                 
                                                      30 September         30 September         31 March   
                                                              2012                 2011             2012   
                                                         Unaudited            Unaudited          Audited   
                                                             R'000                R'000            R'000   
  ASSETS                                                                                                   
  Non-current assets                                                                                       
  Property, plant and equipment                             47 788               44 070           45 386   
  Intangible assets                                        643 791              654 712          643 086   
  Deferred tax assets                                       17 735               15 584           13 267   
  Loans to external parties                                                      5 738                   
  Total non-current assets                                 709 314              720 104          701 739   
  Current assets                                                                                           
  Inventory                                                 50 307               46 299           46 014   
  Inventory held in client vehicles                         33 647               29 879           29 709   
  Trade and other receivables                              206 755              141 251          163 125   
  Loans to external parties                                                                      6 001   
  Taxation                                                                       1 441                   
  Restricted cash                                            6 656                2 274            3 133   
  Cash and cash equivalents                                 93 176              113 367          118 695   
  Total current assets                                     390 541              334 511          366 677   
  Total assets                                           1 099 855            1 054 615        1 068 416   
  EQUITY AND LIABILITIES                                                                                   
  Capital and reserves                                                                                     
  Share capital                                                 13                   13               13   
  Share premium                                            789 397              787 353          787 589   
  Other reserves                                          (135 863)            (153 316)        (154 745)  
  Retained earnings                                        140 127               66 203          139 233   
  Total equity                                             793 674              700 253          772 090   
  Non-current liabilities                                                                                  
  Borrowings                                                                    15 783                   
  Deferred tax liabilities                                  12 572               25 892           25 816   
  Total non-current liabilities                             12 572               41 675           25 816   
  Current liabilities                                                                                      
  Trade and other payables                                 153 938              163 882          157 038   
  Borrowings                                                 2 885               11 668           22 941   
  Taxation                                                  16 297                7 651           11 403   
  Provisions                                                31 253               45 569           28 963   
  Bank overdraft                                            89 236               83 917           50 165   
  Total current liabilities                                293 609              312 687          270 510   
  Total equity and liabilities                           1 099 855            1 054 615        1 068 416   
  Net cash (note 6)                                          1 055                1 999           45 589   
  Net asset value per share (cents)                          120,5                106,6            117,5   
  Net tangible asset value per share (cents)                  22,8                  6,9             19,6   
  Capital expenditure                                                                             
   incurred                                                26 748               24 047           50 740   
   authorised but not spent                                20 943               33 330           37 303   




 CONDENSED CONSOLIDATED STATEMENT OF                                                                       
 CASH FLOWS                                                                                                
                                                                   6 months            6 months        12 months   
                                                                      ended               ended            ended   
                                                               30 September        30 September         31 March   
                                                                       2012                2011             2012   
                                                                  Unaudited           Unaudited          Audited   
                                                                      R'000               R'000            R'000   
  Operating activities                                                                                             
  Cash generated from operations                                     65 968              75 758          165 751   
  Net financing costs                                                (1 148)             (2 339)          (3 632)  
  Taxation paid                                                     (34 598)            (17 690)         (35 769)  
  Net cash generated from operating activities                       30 222              55 729          126 350   
  Investing activities                                                                                             
  Capital expenditure                                               (26 748)            (24 047)         (50 739)  
  Loans granted to external parties                                                     (5 485)          (5 486)  
  Acquisition of subsidiary, net of cash acquired (note 11)              23                                      
  Proceeds on sale of property, plant and equipment                      18                 429              867   
  Net cash used in investing activities                             (26 707)            (29 103)         (55 358)  
  Financing activities                                                                                             
  Proceeds from share capital issued                                  1 808                                 236   
  Net borrowings repaid                                             (20 185)            (36 884)         (41 548)  
  Dividends paid                                                    (52 520)            (39 370)         (39 374)  
  Net cash used in financing activities                             (70 897)            (76 254)         (80 686)  
  Net decrease in cash and cash equivalents                         (67 382)            (49 628)          (9 694)  
  Net cash and cash equivalents at beginning of the period           68 530              70 039           70 039   
  Exchange gains on cash and cash equivalents                         2 792               9 039            8 185   
  Net cash and cash equivalents at end of the period                  3 940              29 450           68 530   




 RECONCILIATION OF HEADLINE AND ADJUSTED HEADLINE EARNINGS                                                                                                             
                                                                                 6 months          6 months         12 months   
                                                                                    ended             ended             ended   
                                                                             30 September      30 September          31 March   
                                                                                     2012              2011              2012   
                                                                                Unaudited         Unaudited           Audited   
                                                                                    R'000             R'000             R'000   
  Profit for the period                                                            53 470            30 210           103 240   
  Adjusted for:                                                                                                                 
  Net (gain)/loss on disposal of property, plant and equipment                        (18)              453               430   
  Impairment of product development costs capitalised                               4 066                              1 332   
  Foreign currency translation reserve released due to                                                           
  liquidation of intermediary subsidiary holding company (note 11)                 (1 619)                                  
  Tax effect on the above components                                               (1 135)               (4)             (323)  
  Headline earnings                                                                54 764            30 659           104 679   
  Headline earnings per share (cents)                                                                                           
   basic                                                                             8,3               4,7              15,9   
   diluted                                                                           8,1               4,6              15,8   
  Headline earnings                                                                54 764            30 659           104 679   
  Amortisation of intangible assets arising out of business combinations            8 158             9 830            18 500   
  Trading loss from business unit disposed of during the year                                        3 594             3 509   
  Tax effect on the amortisation of intangible assets arising out of                                             
  business combinations                                                           (1 619)           (1 618)           (3 235)  
  Adjusted headline earnings                                                       61 303            42 465           123 453   
  Adjusted headline earnings per share (cents)                                                                                  
   basic                                                                             9,3               6,5              18,8   
   diluted                                                                           9,1               6,4              18,6   




 CONDENSED consolidated STATEMENT OF COMPREHENSIVE INCOME                                                               
                                                                                     6 months          6 months        12 months   
                                                                                        ended             ended            ended   
                                                                                 30 September      30 September         31 March   
                                                                                         2012              2011             2012   
                                                                                    Unaudited         Unaudited          Audited   
                                                                                        R'000             R'000            R'000   
  Profit for the period                                                                53 470            30 210          103 240   
  Other comprehensive income/(losses):                                                                                             
  Exchange differences on translating foreign operations                               16 504            32 304           29 816   
  Exchange differences on net investment in foreign operations                          1 429           (6 724)          (6 718)   
  Taxation relating to components of other comprehensive income                                                                 
  Other comprehensive income for the period, net of tax                                17 933            25 580           23 098   
  Total comprehensive income for the period attributable to shareholders               71 403            55 790          126 338   
  Ordinary shares ('000)                                                                                                           
   in issue                                                                          658 825           657 000          657 200   
   weighted average                                                                  657 289           657 000          657 045   
   diluted weighted average                                                          671 954           660 841          662 322   
  Attributable earnings per share (cents)                                                                                          
   basic                                                                                 8,1               4,6             15,7   
   diluted                                                                               8,0               4,6             15,6   




 CONDENSED SEGMENTAL ANALYSIS                                                                                                    
                                                                                   Total        Intersegment                                      
                                                                                 revenue             revenue          EBITDA             Assets   
                                                                                   R'000               R000           R000              R'000   
  6 months ended 30 September 2012 (Unaudited)                                                                                                             
  Africa                                 Consumer Solutions                      173 866              (5 442)         39 843            270 768   
                                         Fleet Solutions                         136 859              (2 724)         41 627             97 182   
  Europe                                 Fleet Solutions                          55 198                             (6 978)            61 067   
  North America                          Fleet Solutions                          91 312                              5 531             59 926   
  Middle East and Australasia            Fleet Solutions                         108 561                             18 626             95 667   
  International                          Fleet Solutions and Development         161 641            (154 930)         46 396            253 660   
  Total                                                                          727 437            (163 096)        145 045            838 270   
  Corporate and consolidation entries                                                                              (15 356)           415 355   
  Inter-segment elimination                                                     (163 096)            163 096                          (153 770)  
  Total                                                                          564 341                            129 689          1 099 855   
  6 months ended 30 September 2011 (Unaudited)                                                                                                             
  Africa                                 Consumer Solutions                      166 831              (4 342)         35 205            246 473   
                                         Fleet Solutions                         109 870              (1 195)         32 304             58 257   
  Europe                                 Fleet Solutions                          64 882                             (5 826)            83 787   
  North America                          Fleet Solutions                          57 412                              2 771             47 138   
  Middle East and Australasia            Fleet Solutions                          56 390                              5 648             60 164   
  International                          Fleet Solutions and Development         129 813            (110 687)         32 012            257 292   
  Total                                                                          585 198            (116 224)        102 114            753 111   
  Corporate and consolidation entries                                                                              (11 969)           429 309   
  Inter-segment elimination                                                     (116 224)            116 224                          (127 805)  
  Total                                                                          468 974                             90 145          1 054 615   
  12 months ended 31 March 2012 (Audited)                                                                                                             
  Africa                                 Consumer Solutions                      342 324              (8 546)         73 523            253 162   
                                         Fleet Solutions                         232 542              (2 953)         79 040             79 082   
  Europe                                 Fleet Solutions                         126 782                             (6 541)            71 110   
  North America                          Fleet Solutions                         156 013                (298)         13 532             54 365   
  Middle East and Australasia            Fleet Solutions                         131 393                             14 528             72 333   
  International                          Fleet Solutions and Development         286 433            (245 208)         83 450            258 692   
  Total                                                                        1 275 487            (257 005)        257 532            788 744   
  Corporate and consolidation entries                                                                              (19 980)           408 349   
  Inter-segment elimination                                                     (257 005)            257 005                          (128 677)  
  Total                                                                        1 018 482                            237 552          1 068 416   




  CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE PERIOD ENDED 30 SEPTEMBER 2012                                                                                        
                                                                  Share            Share            Other             Retained     
                                                                capital          premium          reserves             earnings       Total 														  
                                                                  R'000            R000             R000                R000       R000   
  Balance at 31 March 2011                                           13          787 353          (179 844)              75 413     682 935   
  Dividends declared of 6 cents per share (note 8)                                                                   (39 420)    (39 420)  
  Total comprehensive income for the period                                                       25 580               30 210      55 790   
  Share-based payments                                                                               948                             948   
  Balance at 30 September 2011                                       13          787 353          (153 316)              66 203     700 253   
  Total comprehensive (loss)/income for the period                                                (2 482)              73 030      70 548   
  Shares issued in relation to share options exercised   *                          236                                              236   
  Share-based payments                                                                             1 053                           1 053   
  Balance at 31 March 2012                                           13          787 589          (154 745)             139 233     772 090   
  Dividends declared of 8 cents per share (note 8)                                                                   (52 576)    (52 576)  
  Total comprehensive income for the period                                                       17 933               53 470      71 403   
  Shares issued in relation to share options exercised   *                        1 808                                            1 808   
  Share-based payments                                                                               949                             949   
  Balance at 30 September 2012                                       13          789 397          (135 863)             140 127     793 674   
  *Amount less than R1 000                                                                                                                    



 NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL RESULTS                                                                                                                                     
 1.     Basis of preparation and accounting policies                                                                                     
        These condensed unaudited Group interim financial results for the half year ended 30 September 2012 have been prepared in accordance with 
		the recognition and measurement criteria of International Financial Reporting Standards (IFRS) and are in compliance with IAS 34: Interim 
		Financial Reporting, the AC 500 Standards as issued by the Accounting Practices Board or its successor, the Listings Requirements of the 
		JSE Limited and the South African Companies Act. The interim financial results have not been audited or reviewed by the Groups external auditors.                                                           
        The condensed unaudited Group interim financial results do not include all the information and disclosures required in the annual financial 
		results and should be read in conjunction with the Groups annual financial statements for the year ended 31 March 2012, which have been 
		prepared in accordance with IFRS.                                                           
        The accounting policies applied are consistent with those followed in the preparation of the Groups annual financial statements for the 
		year ended 31 March 2012, except where the Group has adopted new or revised accounting standards, none of which had a material impact on 
		the Groups results.                                                           
 2.     Operating segments                                                                                                               
        The MiX Telematics businesses are managed primarily on a geographic, and also on a product basis. A reconciliation of EBITDA to operating 
		profit is set out in note 3.                                                           
  3.     Operating profit and EBITDA                                                                                                     
                                                                                   6 months ended    6 months ended    12 months ended   
                                                                                     30 September      30 September           31 March   
                                                                                             2012              2011               2012   
                                                                                        Unaudited         Unaudited            Audited   
                                                                                            R'000             R'000              R'000   
         Operating profit                                                                  76 345            47 469            146 388   
         Add: depreciation, amortisation and impairments (note 4)                          53 344            42 676             91 164   
         EBITDA per segmental analysis                                                    129 689            90 145            237 552   
  4.     Depreciation, amortisation and impairment                                                                                       
                                                                                                                                         
         Depreciation and amortisation                                                     28 703            21 953             48 083   
         Amortisation of intangible assets arising out of business combinations             8 158             9 830             18 500   
         Impairment of product development costs capitalised                                4 066                               1 332   
         Inventory in client vehicles amortised                                            12 417            10 893             23 249   
         Total                                                                             53 344            42 676             91 164   
  5.     Effective tax rate                                                                                                              
         The effective tax rate reduced from 32,8% in the six month period ended 30 September 2011 to 29,1% for this reporting period. This is primarily 
		 due to the change in South Africas tax code treatment of dividends whereby Dividends Tax on shareholders has replaced Secondary Tax on Companies.                                                          
  6.     Net cash                                                                                                                        
         Net cash is calculated as being net cash and cash equivalents, excluding restricted cash less interest-bearing borrowings.                                                          
  7.     Borrowings                                                                                                                      
         Borrowings decreased from R22,9 million at 31 March 2012 to R2,9 million at 30 September 2012. The decrease in borrowings is due to repayments of 
         R20,2 million during the period. The reduction in borrowings has contributed to a decrease in finance costs compared to the first half of the 
         previous financial year.                                                          
  8.     Dividends                                                                                                                       
         A final dividend of R52,6 million (2011: R39,4 million) was declared during the period under review and paid on 9 July 2012. Using shares in issue 
         of 657,2 million (2011: 657,0 million) this equates to a dividend of 8,0 (2011: 6,0) cents per share.                                                          
  9.     Contingent liabilities                                                                                                          
         Network Services Agreement                                                                                                      
         In terms of a network service agreement with Mobile Telephone Networks Proprietary Limited (MTN), MTN is entitled to claw back payments from 
         MiX Africa in the event of early cancellation of the agreement or certain minimum base connections not being maintained over the term of the 
         agreement. The maximum potential liability under the arrangement is R68,8 million. No loss is expected under this arrangement.                                                          
         Taxation                                                                                                                        
         MiX Africas dispute with SARS in respect of the disallowance of the Section 24C deduction going back to 2008, as set out in full in our annual 
         report for the year ended 31 March 2012, is ongoing. Our maximum exposure remains R4 million.                                                          
  10.    Exchange rates                                                             
                                 30 September    30 September    31 March   
                                         2012            2011        2012   
         The following major rates of exchange were used:                                                             
         SA Rand : United States                                                             
         Dollar     closing             8,31            7,91        7,69   
                    average             8,19            6,94        7,43   
         SA Rand : British                                                             
         Pound      closing            13,44           12,36       12,29   
                    average            12,94           11,24       11,84   
  11.    Significant events                                                             
         Acquisition of the business of Intellichain Proprietary Limited (Intellichain)                                                             
         On 1 May 2012, the Group acquired the business of Intellichain (constituting employees and specific assets and liabilities), a software solution 
         company that focuses on fleet management and supply chain execution. The services offered by Intellichain are compatible with the Groups existing 
         fleet management Solutions and the acquisition broadens the array of services offered to current and future fleet management customers. The purchase 
         consideration amounted to the outstanding balance of the loan provided to Intellichain in the 2012 financial year. The provisional fair values of 
         assets acquired and liabilities assumed are as follows:                                                             
                                                                    R000   
         Property, plant and equipment                                183   
         Software                                                   5 739   
         Trade receivables                                            756   
         Cash and cash equivalents                                     23   
         Trade and other payables                                   (655)  
         Total identifiable assets                                  6 046   
         Acquisition date fair value of consideration paid          6 046   
         The Group has elected to finalise the identification and allocation of fair values to all assets and liabilities acquired within a period of 12 months 
         from the effective date, as allowed in accordance with IFRS.                                                             
         The revenue earned during the period of R3,0 million and the post acquisition loss incurred of R1,1 million have been included in the condensed 
         consolidated results.                                                             
         No material acquisition related expenses were incurred during the acquisition of the business.                                                             
         Sunstore liquidation                                                             
         An internal restructuring process was undertaken in the 2012 financial year, whereby certain of the Groups investments were transferred to the parent 
         company from Sunstore Ltd, an intermediary offshore holding company. The liquidation of Sunstore Ltd has now been completed. In line with the Groups 
         elected accounting policy to recycle cumulative exchange differences on the date of disposal, change in control or liquidation of a subsidiary,a credit 
         amount of R1,6 million has been released to the income statement.                                                             
  12.    Subsequent events                                                             
         Other than the interim dividend declared and the share conversion described below, the directors are not aware of any matter material or otherwise arising 
         since the period end and up to the date of this report, not otherwise dealt with herein.                                                             
         Share conversion                                                             
         On 16 October 2012 the new Memorandum of Incorporation was accepted by the Companies and Intellectual Property Commission. As a result the issued share 
         capital of MiX Telematics of 659 450 000 shares was converted from shares of 0,002 cent each to shares of no par value.                                                             
         Interim dividend declared 
         Shareholders are advised that, subsequent to 30 September 2012, an interim cash dividend of 4 cents per share has been declared by the Board. The dividend
         timetable is set out below: 
         Last date to trade cum distribution            Friday, 30 November 
         Shares trade ex distribution                   Monday, 3 December
         Record date                                    Friday, 7 December
         Payment date                                   Monday, 10 December
         Share certificates may not be dematerialised or rematerialised between Monday, 3 December 2012 and Friday, 7 December 2012, both dates inclusive.
         In terms of the Listings Requirements of the JSE Limited regarding the new Dividends Tax effective 1 April 2012, the following additional 
         information is disclosed: 
         1. The dividend has been declared out of income reserves;
         2. The local dividend tax rate is 15%;
         3. There are no Secondary Tax on Companies credits utilised against the dividend;
         4.  The gross local dividend amount is 4 cents per share for shareholders exempt from paying the new Dividends Tax;
         5.  The net local dividend amount is 3,4 cents per share for shareholders liable to pay the new Dividends Tax;
         6. The stated capital of MiX Telematics is 659 450 000 shares of no par value;
         7. MiX Telematics tax reference number is 9155/661/84/7.

For and on behalf of the Board:
SR Bruyns            SB Joselowitz

Midrand

7 November 2012

Registered office: Matrix Corner, Howick Close, Waterfall Park, Midrand
Directors: SR Bruyns* (Chairman); SB Joselowitz (CEO); R Botha; HR Brody*; TE Buzer; 
CH Ewing*; RA Frew*; R Friedman*; ML Pydigadu; F Roji*; HG Scott; RA Shough*; CWR Tasker; AR Welton*            
  *Non-executive

Company secretary: Probity Business Services Proprietary Limited

Auditors: PricewaterhouseCoopers Inc.

Sponsor: Java Capital

For more information please visit our website at: 
www.mixtelematics.com
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