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Unaudited Consolidated Results for the Six Months ended 31 August 2012
LABAT AFRICA LIMITED
Incorporated in the Republic of South Africa
(Registration number 1986/001616/06)
JSE code: LAB ISIN: ZAE000018354
(“Labat” or “the company”)
UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 AUGUST 2012
CONDENSED CONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION
Unaudited Unaudited Audited
6 months 6 months 12 months
Figures in Rand (‘000) 31 August 2012 31 August 2011 29 February 2012
ASSETS
Non-current assets 30,880 493 31,154
Property, plant and equipment 30,793 402 31,154
Intangible assets 87 91 -
Current assets 9,711 9,731 8,303
Inventories 4,772 3,985 3,233
Other financial assets 516 179 10
Trade and other receivables 1,623 3,341 2,228
Cash and cash equivalents 2,800 2,226 2,832
Non-current assets held for sale 2,168 36,362 2,168
TOTAL ASSETS 42,759 46,586 41,625
EQUITY AND LIABILITIES
Equity 462 (34,121) 2,277
Share capital and reserves 462 (34,121) 2,277
Non-current Liabilities 5,272 - 5,408
Deferred tax 5,272 - 5,408
Current Liabilities 37,036 16,539 33,940
Loans from shareholders 11,073 11,992 11,306
Trade and other payables 6,903 4,547 3,886
Provisions 837 - 687
South African Revenue Service 18,212 - 18,061
Liabilities of disposal group - 64,168 -
TOTAL EQUITY AND LIABILITIES 42,759 46,586 41,625
Net asset value per share (cents) 0.002 (9.50) 0.01
CONDENSED CONSOLIDATED INTERIM STATEMENT OF COMPREHENSIVE INCOME
Unaudited Unaudited Audited
6 months 6 months 12 months
Figures in rand (‘000) 31 August 31 August 29 February
2012 2011 2012
Continuing operations
Revenue 8,272 8,133 15,544
Operating (loss)/profit before significant transactions (1,322) 1,210 (5,897)
Investment revenue 5 - 17
Finance costs (195) - (216)
Depreciation (439) (100) (964)
Gain on derecognition of liability - - 34,020
Impairments - - (1,667)
Operating (loss)/profit before taxation (1,951) 1,110 25,293
Taxation 136 - 460
(Loss)/profit from continuing operations (1,815) 1,110 25,753
(Loss)/profit from discontinued operations - 5,041 (364)
(Loss)/profit for the period (1,815) 6,151 25,389
Profit and loss attributable to:
Owners of the parent:
(Loss)/profit for the period from continuing operations (1,815) 1,110 25,753
(Loss)/profit for the period from discontinued operations - 5,041 (364)
(Loss)/profit for the period attributable to owners of the
parent (1,815) 6,151 25,389
(Loss)/profit for the period (1,815) 6,151 25,389
Other comprehensive income - - -
Total comprehensive (loss)/income for the period (1,815) 6,151 25,389
Total comprehensive income attributable to:
Ownership of the parent:
Total comprehensive (loss)/income for the period from continuing
operations (1,815) 1,110 25,753
Total comprehensive (loss)/income for the period from
discontinued operations - 5,041 (364)
Attributable to ownership of the parent (1,815) 6,151 25,389
Basic earnings from continuing operations (cents) (0.92) 0,50 13,06
Basic earnings from discontinued operations (cents) - 2,60 (0,18)
Total Basic earnings per share (cents) (0.92) 3,10 12,88
Headline earnings from continuing operations (0,92) 0,50 13,51
Headline earnings from discontinued operations - 2,60 (0,18)
Total Headline earnings from continuing operations (0,92) 3,10 13,33
Reconciliation of headline earnings from continuing
operations:
(Loss)/profit attributable to ordinary shareholders (1,815) 6,151 25,753
Adjusted for
Impairment of assets - - 1,664
Fair value adjustments - - 169
Profit from sale of assets - (49) (952)
Headline (loss)/profit attributable to ordinary shareholders (1,815) 6,102 26,634
Weighted average shares in issue 197 154 482 197 154 482 197 154 482
CONDENSED CONSOLIDATED INTERIM STATEMENT OF CASH FLOW
Unaudited Unaudited Audited
Figures in rand (‘000) 6 months 6 months 12 months
31 August 2012 31 August 2011 29 February 2012
Net flow from operating activities 722 (1,709) (5,252)
Net flow from investing activities (672) (809) 623
Net flow from financing activities (82) (56) 2,660
Net (decrease)/increase in cash (32) (2,574) (1,969)
Cash at beginning of period 2,832 4800 4,800
Cash at end of period 2,800 2,226 2,831
CONDENSED CONSOLIDATED INTERIM STATEMENT OF CHANGE IN EQUITY
Share Share Total Non Restated Total
Capital Premium Share Distributable Accumulated Restated
and Capital Reserves - (loss)/ Equity
Treasury Revaluations income
Shares
Figures in rand (‘000)
Balance as at 1 March 2011 1,490 49,065 50,555 15,520 (89,187) (23,112)
Total comprehensive income for the year - - - - 25,389 25,389
Transfer of revaluation reserve - - - (253) 253 -
Balance as at 28 February 2012 1,490 49,065 50,555 15,267 (63,545) 2,277
Total comprehensive income for the period - - - - (1,815) (1,815)
Transfer of revaluation reserve - - - (128) 128 -
Balance as at 31 August 2012 1,490 49,065 50,555 15,139 (65,232) 462
CONDENSED CONSOLIDATED INTERIM SEGMENTAL REPORT
Unaudited Unaudited Audited
Figures in rand (‘000) 6 months 6 months 12 months
31 August 2012 31 August 2011 29 February 2012
Revenue by Segment 8,272 8,133 15,544
Technology 8,272 8,133 16,624
Other Operations* - - (1,080)
Profit/(loss) from operations before
investment revenue, finance cost,
depreciation, and fair value adjustments (1,322) (1,098) 26,456
Technology 2,340 617 31,634
Other Operations* (3,662) (1,715) (5,178)
Trade & accounts receivable by Segment 1,623 3,341 2,228
Technology 1,617 3,337 2,224
Other Operations* 6 4 4
Trade & accounts payable by Segment 6,903 4,547 3,886
Technology 5,397 731 2,022
Other Operations* 1,506 3,816 1,864
Non-current assets by Segment 30,879 493 31,154
Technology 33,476 467 33,398
Other Operations* (2,597) 26 (2,244)
Borrowings by Segment 11,073 11,992 11,306
Technology - - -
Other Operations* 11,073 11,992 11,306
*Other operations incorporate the company, consolidation adjustments and eliminations.
OVERVIEW
BASIS OF PREPARATION OF THE UNAUDITED INTERIM RESULTS
Statement of compliance
The unaudited consolidated condensed group interim results have been prepared in accordance with the recognition and
measurement criteria of International Financial Reporting Standards (“IFRS”), the AC500 Standards and the presentation and
disclosure requirements of IAS 34: Interim Financial Reporting, the JSE Limited Listings Requirements and the Companies
Act of South Africa. These interim results have not been reviewed or audited and as such the auditors have not expressed an
opinion on the figures.
Significant accounting policies
The same accounting policies, presentation and methods of computation have been followed in these unaudited interim
results as were applied in the preparation of the Group’s Financial Statements for the period ended 28 February 2012.
Basis of measurement
The unaudited consolidated condensed group interim results have been prepared on the historical cost basis except for
certain financial instruments measured at fair value.
DISCONTINUED OPERATIONS
The remaining SAMES plant is being sold and the premises are being emptied in preparation for letting. Negotiations are in
hand with prospective tenants to rent two floors of the main building. A renovation process has commenced and the building
should be fully let by end 2013.
CONTINUING OPERATIONS
The ICDC business has slowed down due to a lack of new products. Management have embarked on a development plan
which has two main thrusts; one to move all SAMES products to a ,5 micron platform and secondly to enhance existing
metering products. This is a two year programme but it is well on the way and is expected to be completed in 18 months. At
that stage the company will have a new range of products capable of being produced more cost effectively.
INTERIM RESULTS
Disruptions caused by closing the old plant and associated costs have led to a loss for the year of R1,815 million. The period
ahead looks more promising and no extraordinary costs are expected.
DIVIDENDS
In line with group policy, no dividend has been declared. When deemed appropriate, a dividend will be declared.
PROSPECTS
The SAMES property, when fully let has the potential to generate revenue of R6 million per annum and management are
working on having the property fully let as soon as possible.
The ICDC business has good potential for future growth. Manufacturing in China has proved to be very successful with
unlimited manufacturing capacity at ,5 micron which will allow us to re-capture those markets which we have lost due to
capacity and cost constraints.
GOING CONCERN
The board of directors are of the opinion that the group has sufficient resources to continue as a going concern.
SUBSEQUENT EVENTS
Management is not aware of any material events which occurred subsequent to the period ended 31 August 2012.
For and on behalf of the board
B G VAN ROOYEN Prepared by: D. O’NEILL
Chief Executive Officer Financial Director
30 November 2012
Directors: B van Rooyen (CEO), D O`Neill (FD), R Majiedt (Chairperson), B Jacobs (INED), D Lupungela (INED)
Company Secretary: A Britto
Johannesburg
30 November 2012
Sponsor: Arcay Moela Sponsors (Pty) Ltd
Date: 30/11/2012 07:05:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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