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Unaudited Condensed Consolidated Interim Results for the Three Month Period Ended 31 December 2012
TELEMASTERS HOLDINGS LIMITED AND ITS SUBSIDIARY
(Incorporated in the Republic of South Africa)
(Registration number 2006/015734/06)
Share code: TLM & ISIN Number: ZAE000093324
("TeleMasters" or "the Company")
UNAUDITED CONDENSED CONSOLIDATED INTERIM RESULTS FOR THE THREE MONTH PERIOD
ENDED 31 DECEMBER 2012
Unaudited 3
Unaudited 3 months ended
months ended 31 31 December
December 2012 2011
R R
Revenue 33 331 439 55 963 175
Cost of sales (26 253 479) (49 259 644)
Gross profit 7 077 960 6 703 531
Operating expenses (6 786 091) (8 098 483)
Operating profit/ (loss) 291 869 (1 394 952)
Investment income 89 145 123 587
Finance cost (94 813) (51 586)
Profit/ (loss) before taxation 286 201 (1 322 951)
Taxation 80 136 271 994
Profit / (loss) after taxation 206 065 (1 050 957)
Total comprehensive income / (loss) for the period 206 065 (1 050 957)
Basic earnings /(loss) per share (cents) 0.49 (2.50)
Diluted earnings/ (loss) per share (cents) 0.49 (2.50)
Headline earnings reconciliation:
Profit / (loss) for the period 206 065 (1 050 957)
Adjustment: Profit on disposal of property, plant & equipment - -
Headline earnings / (loss) for the period 206 065 (1 050 957)
Headline earnings / (loss) per share (cents) 0.49 (2.50)
Diluted headline earnings (loss) per share (cents) 0.49 (2.50)
Weighted average number of shares in issue 42 000 000 42 000 000
Dividends declared per share (cents) 1.00 1.00
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
Unaudited at Audited at Unaudited at
31 December 2012 30 September 2012 30 December 2011
R R R
ASSETS
Non-current assets
Property, plant and equipment 16 804 306 17 314 281 14 463 646
Intangible assets 1 338 434 1 577 573 1 670 891
Goodwill 2 686 770 2 686 779 2 415 685
Deferred tax assets 3 823 927 3 904 063 4 547 298
Total non-current assets 24 653 437 25 482 696 23 097 520
Current assets
Inventories 4 101 053 1 451 828 -
Trade and other receivables 13 674 456 13 029 493 13 208 736
Cash and cash equivalents 7 908 857 8 461 901 15746 079
Total current assets 25 684 366 22 943 222 28 954 815
Total assets 50 337 803 48 425 918 52 052 335
EQUITY AND LIABILITIES
Capital and reserves
Issued capital 48 059 48 059 48 059
Retained earnings 31 008 446 31 222 381 31 408 718
Total equity 31 056 505 31 270 440 31 456 777
Non-current liabilities
Finance lease liabilities 1 361 042 1 700 717 252 584
Total non-current liabilities 1 361 042 1 700 717 252 584
Current liabilities
Trade and other payables 16 616 004 13 869 753 18 358 034
Current portion of finance lease liabilities 1 270 643 1 307 692 1 760 123
Current tax payable - 202 628 169 163
Bank overdraft 33 609 74 688 55 654
Total current liabilities 17 920 256 15 454 761 20 342 974
Total liabilities 19 281 298 17 155 478 20 595 558
Total equity and liabilities 50 337 803 48 425 918 52 052 335
Number of shares in issue 42 000 000 42 000 000 42 000 000
Net asset value per share (cents) 73.94 74.45 74.89
Net tangible asset value per share (cents) 64.36 64.30 65.17
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Unaudited at Audited at Unaudited at
31 December 30 September 31 December
2012 2012 2011
R R R
Cash flows from operating activities
Cash generated from operations 946 746 (3 902 743) (2 501 669)
Finance costs (94 813) (203 235) (51 586)
Tax refunded/ (paid) (202 628) 4 004 -
Net cash inflow from operating activities 649 305 (4 101 974) (2 553 255)
Cash flows from investing activities
Additions to plant and equipment (453 691) (6 763 915) (1 605 167)
Proceeds on sale of property, plant and equipment - 297 185 -
Investment income 89 145 449 151 123 587
Additions to intangible assets - (534 197) -
Net cash outflow from investing activities (364 546) (6 551 776) (1 481 580)
Cash flows from financing activities
Proceeds from borrowings - 2 608 809 -
Dividends paid (420 000) (1 680 000) -
Repayment of borrowings (376 724) (2 243 107) (630 000)
Net cash outflow from financing activities (796 724) (1 314 298) (630 000)
Total cash movement for the period (511 965) (11 968 048) (4 664 835)
Cash and cash equivalents at the beginning of the period 8 387 213 20 355 261 20 355 261
Cash and cash equivalents at the end of the period 7 875 248 8 387 213 15 690 426
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Issued Share Total share Retained Total
capital premium Capital Income Equity
Balance at 30 September 2011 4 200 43 859 48 059 32 879 675 32 927 734
Comprehensive income - Loss for the period ended 31
December 2011 - - - (1 018 365) (1 018 365)
Transaction with owners - Dividends declared - - - (420 000) (420 000)
Balance at 31 December 2011 4 200 43 859 48 059 31 441 310 31 489 369
Comprehensive income - Profit for the 9 month period
ended 30 September 2012 - - - 1 041 071 1 041 071
Transaction with owners - Dividends declared - - - (1 260 000) (1 260 000)
Balance at 30 September 2012 4 200 43 859 48 059 31 222 381 31 270 440
Comprehensive income - Profit for the period ended
31 December 2012 - - - 206 065 206 065
Transaction with owners - Dividends declared - - - (420 000) (420 000)
Balance at 31 December 2012 4 200 43 859 48 059 31 008 446 31 056 505
SEGMENT REPORT
The Company does not have different operating segments. The business is
conducted in South Africa and is managed centrally with no branches. The
company is managed as one operating unit. Accordingly there is no
meaningful segmental information to report.
COMMENTARY
1. COMPANY PROFILE
TeleMasters is a fully licenced fixed-line telecommunication service provider. It operates exclusively in the South African
corporate market. The company provides clients access to the most efficient and effective telecommunication technologies
and services.
2. FINANCIAL RESULTS
2.1 Statement of compliance and basis of preparation
The interim financial statements for the three months ended 31 December 2012 have been presented in accordance with
the framework concepts and the measurement and recognition requirements of International Financial Reporting Standards,
the information required by IAS 34: Interim Financial Reporting, the South African Companies Act, as amended, the AC500
Standards as issued by the Accounting Practices Board and the JSE Listings Requirements. The results have been
prepared in accordance with accounting policies of the Company that are consistent with those applied in the audited
annual financial statements for the year ended 30 September 2012. These results were prepared under the supervision of
Brandon Topham CA(SA)and have not been reviewed or audited by the Company's auditors.
2.2 Commentary on financial results
The first quarter results reflects management’s expectations of lower operating costs resulting from the cost cutting efforts
implemented in the previous year. The ongoing growth of Revenue using our new technology platform digital direct+
continues to grow. Our revenue has fallen in the current quarter compared with the past in line with the circumstances set
out in our last integrated report. This decline was mainly attributable to services previously provided using the Least Cost
Routing technology stopping, as larger tenders were not renewed. Higher margins have been realised and are expected to
continue which will result in a more profitable position compared to previous years. This expectation being reflected in
profitable results compared with the loss reported in the first quarter of the previous financial year. The prior quarter’s loss of
2.5 cents per share reversed to a profit of 0.49 cents per share.
The directors are confident that the sustainability of the group’s operations has been achieved and expect operating results
to systematically increase in each coming quarter. The group has the best quality telecommunication solution now available
in the South African market. Many of the learning fees to ensure a high quality solution were paid in the previous financial
year.
2.3. Dividends
On 18 December 2012, the board declared a final dividend of 1 cent per share, which was paid to all shareholders recorded
in the share register of the Company at the close of business on Friday, 11 January 2013.
On 28 March 2013, the board declared an interim dividend of 0.5 cent per share, which will be paid to all shareholders
recorded in the share register of the Company at the close of business on Friday, 26 April 2013.
During the first and second quarters of the prior financial year, which ended on 31 December 2011 and 31 March 2012, the
Company declared an interim dividend of 1 cent per share in each quarter.
2.4. Acquisition of property, plant and equipment
Property, plant and equipment acquired during the quarter comprises various items of Furniture and fittings, Motor vehicles,
Office equipment, IT equipment and Routers and handsets.
3. SUBSEQUENT EVENTS
The directors are not aware of any matter or circumstance arising since the reporting date which would have a material
effect on the consolidated results or the consolidated financial position of the Company as reported.
4. CHANGES IN THE COMPOSITION OF THE BOARD & SHARE CAPITAL
There have been no changes to the composition of the board nor to the share capital of the Company. During the period
under review, the transfer secretaries changed to Link Market Services (Pty) Ltd and subsequent to the period end, there
was a change in the designation of the company secretary from Brandon Topham Inc. to Brandon Topham in his personal
capacity.
For and on behalf of the Board:
MB Pretorius BR Topham
Chief Executive Officer Chief Financial Officer
12 April 2013
Corporate information
Directors: DS van Der Merwe*# , J Voigt*, VI Beck*# , MB Pretorius, BR Topham
(* non-executive, independent)
Registered address: 90 Regency Drive, Route 21 Corporate Office Park, Irene, 0157, Pretoria (P.O. Box 68255, Highveld
Park, 0169)
Company secretary: Brandon Topham Inc.
Auditors: Nexia SAB&T, 119 Witch-Hazel Avenue, Highveld Technopark, Centurion, Pretoria
Transfer secretaries: Link Market Services (Pty) Ltd, 13th Floor, Rennie House, 19 Ameshoff Street, Braamfontein, Johannesburg
Designated Advisor: Arcay Moela Sponsors Proprietary Limited
Website: www.telemasters.co.za
Date: 12/04/2013 04:55:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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