Wrap Text
Reviewed Financial Results for the year ended 31 August 2012
Stella Vista Technologies Limited
(Incorporated in the Republic of South Africa)
Company registration number 1996/000172/06
JSE share code: SLL
ISIN: ZAE000018198
(“Stella Vista” or “the Company” or “the Group”)
REVIEWED FINANCIAL RESULTS SUMMARY FOR THE YEAR ENDED 31 AUGUST 2012
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Reviewed Audited
Year ended Year ended
ended ended
31-Aug-12 31-Aug-11
Note R'000 R'000
Revenue 17 933 27 414
Gross Profit 10 579 16 866
(Loss)/profit before interest and depreciation (782) 2 672
Depreciation (1 856) (3 803)
Loss before interest and taxation (2 639) (1 131)
Investment income 0 0
Finance cost (104) (744)
Loss before taxation (2 743) (1 875)
Taxation 677 392
Loss after taxation (2 066) (1 483)
Other comprehensive loss:
Foreign currency translation differences on foreign operations (1 582) (85)
Total comprehensive loss for the year (3 648) (1 568)
Loss attributable to:
- Equity holders of the parent company (1 980) (1 319)
- Non-controlling interests (87) (164)
Loss for the year (2 066) (1 483)
Total comprehensive loss attributable to:
- Equity holders of the parent company (3 478) (1 393)
- Non-controlling interests (170) (175)
Total comprehensive loss for the year (3 648) (1 568)
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Reviewed Audited
Year ended Year ended
ended ended
31-Aug-12 31-Aug-11
R'000 R'000
ASSETS
Non-current assets 11 512 12 103
Property, plant and equipment 9 112 10 025
Deferred taxation assets 2 401 2 078
Current assets 9 051 12 994
Inventory 6 5 911 7 838
Trade and other receivables 2 331 4 140
Cash and cash equivalents 810 1 016
TOTAL ASSETS 20 563 25 096
EQUITY AND LIABILITIES
Equity 6 259 9 226
Attributable to Stella Vista 5 618 9 096
Non-controlling interests 641 130
Non-current liabilities 787 1 376
Interest-bearing borrowings 0 34
Deferred revenue 124 326
Deferred tax liability 663 1 016
Current liabilities 13 518 14 495
Trade and other payables 7 6 293 6 847
Deferred revenue 115 1 068
Taxation payable 521 459
Current portion of interest-bearing borrowings 6 550 5 995
Bank overdraft 38 125
TOTAL EQUITY AND LIABILITIES 20 563 25 096
Net Asset Value per share (cents) 4.32 6.36
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
Reviewed Audited
Year ended Year ended
ended ended
31-Aug-12 31-Aug-11
R'000 R'000
Net loss before tax and separately disclosed items (2 743) (1 875)
Non-cash items (571) 590
Working capital changes 2 027 (96)
Cash generated from operations (1 287) (1 381)
Investment income 0 0
Finance cost (104) (744)
Taxation refunded 62 -
Cash flow from operating activities (1 329) (2 125)
Sale of property, plant and equipment 156
Purchase of property, plant and equipment (147) (132)
Cash flow from investing activities 9 (132)
Proceeds from interest bearing borrowings 1 202 1 709
Cash flow from financing activities 1 202 1 709
Net movement in cash and cash equivalents (118) (546)
Cash and cash equivalents at beginning of year 891 1 439
Cash and cash equivalents at end of year 772 891
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the year ended 31 August 2012 Foreign Share
Share currency based Attributable Non-
capital and translation payment Accumulated to equity holders of controlling Total
R '000s premium reserve reserve Losses the parent company interests equity
Audited balance at 1 September 2010 19 650 (1 628) 693 (8 226) 10 489 305 10 794
Share options forfeited transferred to share premium 693 - (693) - - - -
Total comprehensive loss for the year - (74) - (1 319) (1 394) (175) (1 568)
Audited balance at 31 August 2011 20 343 (1 703) - (9 545) 9 096 130 9 226
Transfer of non-controlling interest - - - - - 681 681
Total comprehensive loss for the year - (1 498) - (1 980) (3 478) (170) (3 648)
Reviewed balance at 31 August 2012 20 343 (3 201) - (11 525) 5 618 641 6 259
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1. Basis of preparation
The condensed consolidated financial results for the year ended 31 August 2012 ("period under review") have been prepared
in accordance with the recognition and measurement requirements of International Financial Reporting Standards (IFRS), the
South African Companies Act 2008 (Act 71 of 2008) and the JSE Listings Requirements. The disclosures comply with
International Accounting Standard (IAS) 34.
2. Accounting policies
The accounting policies and methods of computation applied in the preparation of the results for the year under review are
consistent with those applied in the preparation of the group's annual financial statements for the year ended 31 August 2011
with the exception of property, plant and equipment where the useful lives of Light Emitting Diode (LED) displays have been
adjusted as detailed in note 3, Change in estimate
3. Change in estimate
The remaining useful lives of LED displays were assessed during the year. In the current period the Board of Directors have
revised their estimate from 5 years to 10 years. The effect of the change in accounting estimate on the current year’s results
was a decrease in the current year’s loss of R2,036,665.
4. Review opinion
The condensed consolidated results for the year ended 31 August 2012 have been reviewed by the Group auditors, IAPA
Johannesburg, Chartered Accountants (SA) and their unmodified review report is available for inspection at the registered
office of Stella Vista.
5. Reconciliation of earnings and headline (loss)/earnings
(Loss)/profit after taxation attributable to:
Ordinary equity holders of the parent entity for the year (1 980) (1 319)
Loss on disposal of property, plant and equipment (19) -
Diluted loss (1 998) (1 319)
Headline loss (1 998) (1 319)
Weighted average number of shares in issue (000's) 145 000 145 000
Loss per share (cents) (1.37) (0.91)
Diluted loss per share (cents) (1.38) (0.91)
Headline loss per share (cents) (1.38) (0.91)
Diluted headline loss per share (cents) (1.38) (0.91)
6. Inventory
Raw material components 2 118 2 753
Work in progress 1 313 428
Finished goods 2 480 4 657
5 911 7 838
The significant decrease in inventory is due to the application of raw material components to work in progress
as orders were fulfilled towards year end. Finished goods were sold during the year and not replaced.
Management's policy is not to hold finished goods for sale but to assemble goods per orders received.
7. Trade and other payables
Trade and other payables comprise the following:
Trade payables 3 056 3 200
Deposits 1 894 1 810
Accrued expenses 1 045 1 077
Payroll related liability 227 375
VAT accrual 29 256
Leave pay accrual 42 129
6 293 6 847
8. Segment information
Management has determined the operating segments based on the monthly reports reviewed by the board of 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 cashflow. 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
South United
R '000s Africa Kingdom Total
Reviewed at 31 August 2012
Total segment revenue 11 420 6 638 18 059
Inter-segment revenue 126 - 126
Revenue from external customers 11 294 6 638 17 933
Cost of sales 6 442 912 7 354
Depreciation and amortisation 343 1 514 1 856
Income tax credit 677 - 677
Loss after tax 1 077 990 2 066
Inventory 5 911 - 5 911
Total assets 10 021 10 543 20 563
Total liabilities 13 766 538 14 305
Audited at 31 August 2011
Total segment revenue 21 881 8 220 30 100
Inter-segment revenue 2 687 - 2 687
Revenue from external customers 19 194 8 220 27 414
Cost of sales 8 494 2 053 10 547
Depreciation and amortisation 528 3 275 3 803
Income tax credit 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 1 098 14 855
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, the 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 the South African manufacturing sector legal environment remain challenging. Reduction in sales
and a reduction of workforce is still a reality.
Rental revenue as percentage of sales continues to grow, and will remain a focus of the company in the near future to bring
sustainable revenue growth and stability. To this end, an increased effort in R&D is under way. New products, based on our
revolutionary faceUp concept, are being developed to allow both growth in rental revenues, as well as sales of rental oriented
products in certain markets.
Efforts are still under way to win contracts in the transportation display market, where we have traditionally had successes over
the years - in flight information displays (airports) and variable message signs (roads).
FaceUp remains a key component in our product development and the first licencing arrangement has been made with an
original equipment manufacturer, allowing both the Company and its customers to benefit from a larger pool of suppliers, and
resulting economies of scale.
Products and services
A new line of products geared for the commercial market is being introduced. This will allow more cost effective displays for the
developing markets, lowering the bar for the entry of many customers.
In the period under review, while remaining the electronic perimeter display supplier to international rugby unions and football
associations, we successfully implemented one of the largest electronic perimeter displays ever used in cricket at the 1st One
Day International between England and South Africa, and the English domestic Twenty20 Finals Day at the end of August
2012. These events demonstrated the ability of the Stella Vista team to undertake projects of this magnitude and the flexibility
and reliability of our products.
Financial results
Stella Vista is operating in a difficult environment for the LED industry worldwide. When comparing the results of 2012 to 2011
there is a reduction in revenue of 34.6%, a reduction in gross profit of 37.3%, and an increase in net loss after tax of 39.3%
from R1,483 for 2011 to R2,066 for 2012.
Subsequent events and capital commitments
There have been no significant events since the end of the year under review and the date of this report. There was no
significant capital expenditure authorised as at 31 August 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: 30/11/2012 04:32:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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