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MIX TELEMATICS LIMITED - Audited Group financial results for the year ended 31 March 2013

Release Date: 10/06/2013 07:05
Code(s): MIX     PDF:  
Wrap Text
Audited Group financial results for the year ended 31 March 2013

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)
Audited Group financial results for the year ended 31 March 2013

HIGHLIGHTS                                                             
- Revenue R1 171 million up 15.0%                - HEPS 20.1 cents per share up 26.4%        
- Annuity revenue R687 million up 19.1%          - Net cash R88 million up 93.5%              
- EBITDA R285 million up 19.8%                   - Subscribers 359 000 up 30.5%             

The audited Group financial results were prepared under the supervision of Megan Pydigadu CA(SA) in her capacity as 
Group Financial Director and were made available on 10 June 2013.

Chief Executive Officers Report for Fiscal 2013
MiX Telematics is a leading global provider of fleet and mobile asset management solutions, delivered as
software as a service, or SaaS.

Fiscal 2013 proved to be another strong year for the MiX Telematics Group. Our overall subscriber base grew to over
359 000 active subscribers, an increase of over 30%. While total revenue was up 15% to R1 171 million, we have seen
acceleration in the growth of our recurring revenue component, which grew over 19% to R687 million. Our subscriber base is the
economic engine of our business and we believe the Groups strong performance in this area bodes well for the future.

EBITDA was up nearly 20% at R285 million. We finished the year with headline earnings of R132 million, up 26% over the
previous year. This translates to 20.1 cents per share (15.9 cents per share in 2012).

We derive the majority of our revenues from subscriptions to our fleet and mobile asset management solutions. Our
subscriptions generally include access to our SaaS solutions, connectivity, and in many cases, use of an in-vehicle device.
We also generate revenues from the sale of in-vehicle devices, which enable customers to use our subscription-based
solutions. Sales are generated through the efforts of our direct sales teams, staffed in our regional sales offices, and
through our global network of distributors and dealers. The direct sales teams focus on marketing our fleet solutions to
multi-national enterprise accounts and to other large customer accounts. 

We have built our software solutions to be highly scalable and flexible to support geographically distributed fleets
of any size. We currently provide subscription services to customers ranging from small fleet operators and consumers to
large enterprise fleets of more than 10 000 vehicles.

We have globalised sales, distribution and support capabilities. We currently maintain a direct or indirect sales and
support presence, with localised application support in 24 languages, for customers in 112 countries across Africa,
Asia, Australia, Europe, the Middle East, North America and South America. In seven of those countries, we own and manage
regional operations and engage directly with our customers. In the balance of the countries we generally deal through
third-party distributors. 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. MiX International is a central services organisation that wholesales our
products and services to our regional distribution network. We believe our global presence gives us an important advantage
in competing for business from multi-national enterprise fleet customers.

Our solutions deliver a measurable return by enabling our customers to manage, optimise and protect their investments
in commercial fleets or personal vehicles. We generate actionable intelligence that allows a wide range of customers,
from large enterprise fleets to small fleet operators and consumers, to reduce fuel and other operating costs, improve
efficiency, enhance regulatory compliance, promote driver safety, manage risk and mitigate theft.

All of our regional fleet operations grew their subscriber bases but some fared better than others against plan. As a
consequence of our global subscriber growth, MiX International performed well during the year under review. At the
beginning of the year, we transferred the business relationship management of all of our third-party distributors based in
the Middle East from MiX International to our regional operation headquartered in Dubai - although this was an absolutely
logical move from an operational efficiency perspective, it has skewed the segmental picture from a year-on-year
comparative perspective by approximately $1 million of EBITDA in favour of MiX MEA.

 Middle East - We have a well-established operation in place with a committed distributor channel in multiple
  countries. Our experienced team has delivered a great performance with a series of solid wins that not only kept us ahead of
  plan for the period, but also bode well for the future.

 Africa - This operation enjoyed a great year with growth at both top-line and profit level. The team delivered
  substantial subscriber growth, winning prize contracts in the midst of tough competition. New product offerings, which
  include a trailer-tracking solution, are being viewed favorably by customers. As we reported at the half-year, we are also
  pleased with our recent acquisition of Intellichain, which has bedded down nicely. Intellichains integrated supply-chain
  management software dovetails with our MiX Fleet Manager offerings and enhances our ability to further grow the SaaS
  component of our annuity stream.

 North America - Although we did see strong subscriber and annuity revenue growth out of this operation, this was
  mainly due to the rollout of two large deals that had been won in the previous fiscal year. Our North America segment has
  historically been focused on the oil-and-gas industry, which is generally characterised by large fleet sales
  opportunities but relatively long sales cycles. We are currently competing for a number of high value tenders on which we are
  cautiously optimistic but in the meantime, the team is seeking new vertical opportunities to complement the oil-and-gas
  vertical. In addition, we are gaining momentum in our efforts to develop the Latin American market.

 Europe - Although this business was behind plan for the year primarily due to difficult trading conditions, we did
  achieve some slow but steady improvement as the year progressed. We won a sizeable bus deal in Ireland and this, coupled
  with the ongoing rollout of a leading bus operator in Belgium and a four-year contract extension by Go-Ahead Bus in the
  UK, has firmly positioned us as a leading supplier to the bus and coach industry in the region. The business delivered
  double-digit subscriber growth for the year but Sterling revenue is down on the previous comparative period for two
  reasons:
  - In the comparative period we still had revenue from One Stop Shop (the business we disposed of in the 2012
    financial year).
  - We converted the legacy Datatrak subscribers onto our core MiX platform and then closed down the Datatrak network
    in fiscal 2012. This conversion resulted in lower average revenue per subscriber carrying forward into our latest fiscal
    year.
 Australia - This operation has delivered excellent performance for the year and in the process has concluded a
  number of large deals both in the resource sector and most notably, a sizeable deal with a bus operator, which is our first
  regional beachhead in the bus and coach market, a vertical in which we have developed significant expertise.

Consumer Solutions - The activities of this operation are not strictly restricted to the Business-to-Consumer (B2C)
market - there is also a large Business-to-Business (B2B) component to this operation. Through our widely recognised
Matrix and Beam-e brands, we provide our customers with a broad range of value-added safety and convenience features such as
Crash Alert, No-Go-Zones, and even an automated Tax Logbook which is accessed by our customers online through our
SaaS platform. In addition, we provide our business customers with location-based services for fleet movement and depot
management purposes. This division delivered strong performance this year particularly at the subscriber growth level.
As we reported at the half-year, there has been broad market acceptance of our new Beam-e offering. Analysis of the
numbers will reveal that the subscriber growth in our Consumer Solutions business does not appear to have flowed through to
the revenue line - this is not the case; earlier this fiscal year, we renegotiated 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 this change is earnings enhancing. Our Consumer Solutions division currently operates primarily in South Africa
but our team is in the process of taking the first steps towards globalisation.

Moving onto a few additional indicators:

Annuity revenue
We are pleased to again show strong growth at a subscriber level with an overall increase in our active base (net of
churn) of over 30% year-on-year. Although some subscriber growth is attributable to our lower ARPU
(average revenue per user) services such as Beam-e, we have seen good growth flowing through to the annuity revenue line, 
which totalled R687 million for the period, a year-on-year rise of over 19%. Our annuity revenue has risen to close to 
60% of total revenue.

Cash
The Group delivered a strong performance in the second half of the year and generated cash from operations of close to
R288 million for the year (R192 million in 2012) and we concluded the year in a net cash position (net cash on hand
minus outstanding debt) of R88 million. This was achieved even after paying out dividends of R79 million to shareholders
this year. As a consequence of the continued strong generation of cash and profitability the Board has approved a final
dividend of 6 cents per share. When added to the interim dividend of 4 cents per share paid in December, this gives a
total distribution of 10 cents per share (an increase of 25% over the prior year).

Having put another solid year behind us, our team is excited about the new opportunities and challenges that we face
in the year ahead. Despite a turbulent economic outlook in many of the territories in which we operate, we believe we
have the passion, talent, technologies, geographic spread and strategies in place to meet our growth objectives.
On behalf of the Board of Directors, we would like to extend our gratitude to our employees for their ongoing hard
work and commitment. Thank you!


Summary consolidated income statement                                 
                                Year ended     Year ended     
                                  31 March       31 March       
                                      2013           2012           
                                   Audited        Audited        
                                     R000          R000                                                                   
Revenue                          1 171 480      1 018 482     
Cost of sales                     (424 545)      (390 926)     
Gross profit                       746 935        627 556       
Other (expenses)/income - net         (421)         7 008         
Operating expenses                (565 318)      (488 176)     
Operating profit (note 4)          181 196        146 388       
Finance income                       2 018          2 392         
Finance cost                        (3 348)        (5 265)       
Profit before taxation             179 866        143 515       
Taxation                           (51 400)       (40 275)      
Profit for the year                128 466        103 240       
Attributable to:                                              
Shareholders of the parent         128 471        103 240        
Non-controlling interests               (5)           -              
                                   128 466        103 240        


Summary consolidated statement of comprehensive income                                      
                                            Year ended    Year ended    
                                              31 March      31 March      
                                                  2013          2012          
                                               Audited       Audited       
                                                 R000         R000                                                                               
Profit for the year                            128 466       103 240      
Other comprehensive income/(losses):                                    
Exchange differences on translating 
foreign operations                              37 090        29 816        
Exchange differences on net investments 
in foreign operations                            3 142        (6 718)      
Other comprehensive income for the year,        40 232        23 098        
net of tax                                                              
Total comprehensive income for the year        168 698       126 338      
Attributable to:                                                        
Shareholders of the parent                     168 703       126 338       
Non-controlling interests                           (5)           -            
                                               168 698       126 338       
Ordinary shares (000)                                                   
- in issue                                     659 963       657 200      
- weighted average                             658 456       657 045      
- diluted weighted average                     674 772       662 322      
Attributable earnings per share (cents)                                  
- basic                                           19.5          15.7         
- diluted                                         19.0          15.6         


Summary consolidated statement of financial position                                             
                                       31 March      31 March      1 April       
                                           2013          2012          2011          
                                                    (Restated)    (Restated)    
                                        Audited       Audited       Audited       
                                          R000         R000         R000                                                                                        
ASSETS                                                                           
Non-current assets                                                               
Property, plant and equipment            96 547        85 207        81 038        
Intangible assets                       645 736       643 086       647 013       
Finance lease receivable                  6 359             -             -            
Deferred tax assets                      13 868        13 266        11 302        
Total non-current assets                762 510       741 559       739 353       
Current assets                                                                   
Inventory                                38 927        35 903        26 355        
Trade and other receivables             186 987       163 125       114 744       
Loan to external party                        -         6 001             -            
Finance lease receivable                  3 604             -             -            
Taxation                                  4 823             -         1 897         
Restricted cash                           8 235         3 133         1 852         
Cash and cash equivalents               147 702       118 695       110 007       
Total current assets                    390 278       326 857       254 855       
Total assets                          1 152 788     1 068 416       994 208                                                                                    
EQUITY AND LIABILITIES                                                           
Capital and reserves                                                             
Stated capital                          790 491             -             -            
Share capital                                 -            13            13            
Share premium                                 -       787 589       787 353       
Other reserves                         (111 362)     (154 745)     (179 844)    
Retained earnings                       188 750       139 233        75 413        
Equity attributable to shareholders            
of the parent                           867 879       772 090       682 935                                         
Non-controlling interest                     (5)            -             -            
Total equity                            867 874       772 090       682 935       
Non-current liabilities                                                          
Borrowings                                    -             -        36 070       
Deferred tax liabilities                  8 605        25 816        28 170        
Provisions                                  283             -         1 092        
Total non-current liabilities             8 888        25 816        65 332        
Current liabilities                                                              
Trade and other payables                184 397       157 038       133 190       
Borrowings                                3 472        22 941        27 508        
Taxation                                 10 691        11 403         4 669         
Provisions                               21 461        28 963        40 606        
Bank overdraft                           56 005        50 165        39 968        
Total current liabilities               276 026       270 510       245 941       
Total equity and liabilities          1 152 788     1 068 416       994 208       
Net cash (note 6)                        88 225        45 589         6 461         
Net asset value per share (cents)         131.5         117.5         103.9         
Net tangible asset value per                          
share (cents)                              33.7          19.6           5.5                                      
Capital expenditure                                                              
- incurred for the year ended            94 147        77 466             -             
- authorised but not spent               44 497        37 304        34 815        


Summary consolidated statement of changes in equity                                                                                                                                     
Year ended 31 March 2013                                    Stated      Share         Share         Other     Retained      Total          Non-        Total    
                                                           capital    capital       premium      reserves     earnings      R000   controlling       equity   
                                                             R000      R000         R000         R000        R000                 interest        R000   
                                                                                                                                          R000                                                                                                                                                                                                   
Balance at 1 April 2011                                          -         13       787 353      (179 844)      75 413    682 935             -      682 935   
Total comprehensive income for the year                          -          -             -        23 098      103 240    126 338             -      126 338   
Dividend declared of 6 cents per share (note 8)                  -          -             -             -      (39 420)   (39 420)            -      (39 420)   
Shares issued in relation to share options exercised             -          *           236             -            -        236             -          236   
Share-based payment                                              -          -             -         2 001            -      2 001             -        2 001   
Balance at 31 March 2012                                         -         13       787 589      (154 745)     139 233    772 090             -      772 090   
Total comprehensive income for the year                          -          -             -        40 232      128 471    168 703            (5)     168 698   
Dividends declared of 8 cents and 4 cents per share, 
respectively (note 8)                                            -          -             -             -      (78 954)   (78 954)            -      (78 954)   
Shares issued in relation to share options exercised           464          *         2 425             -            -      2 889             -        2 889   
Share-based payment                                              -          -             -         3 151            -      3 151             -        3 151   
Transfer from share capital and share premium to 
stated capital                                             790 027        (13)     (790 014)            -            -          -             -            -   
Balance at 31 March 2013                                   790 491          -             -      (111 362)     188 750    867 879            (5)     867 874   
*Amount less than R1 000


Reconciliation of headline and adjusted headline earnings                                                                                 
                                                         Year ended    Year ended    
                                                           31 March      31 March      
                                                               2013          2012          
                                                            Audited       Audited       
                                                              R000         R000         
                                                                                     
Profit for the year attributable 
to shareholders of the parent                               128 471       103 240       
Adjusted for:                                                                        
(Profit)/loss on disposal of property, 
plant and equipment and intangible assets                      (314)          430          
Impairment of product development 
costs capitalised                                             5 158         1 332        
Foreign currency translation reserve 
released due to liquidation of 
intermediary subsidiary holding company                         394             -             
Tax effect on the above components                           (1 357)         (323)        
Headline earnings attributable 
to shareholders of the parent                               132 352       104 679                                                            
Headline earnings per share (cents)                                                  
 - basic                                                       20.1          15.9          
 - diluted                                                     19.6          15.8          
Headline earnings attributable to shareholders                     
of the parent                                               132 352       104 679                          
Amortisation of intangible assets arising 
out of business combinations                                 10 421        18 500        
Trading loss from business unit disposed of                       -         3 509         
Tax effect on the amortisation of intangible 
assets arising out of business combinations                  (1 644)       (3 235)      
Adjusted headline earnings attributable                            
to shareholders of the parent                               141 129       123 453                         
Adjusted headline earnings per share (cents)                                         
 - basic                                                       21.4          18.8          
 - diluted                                                     20.9          18.6          


Summary consolidated statement of cash flows                                                          
                                                         Year ended    Year ended    
                                                           31 March      31 March      
                                                               2013          2012          
                                                                        (Restated)    
                                                            Audited       Audited       
                                                              R000         R000                                                                                                            
Operating activities                                                                 
Cash generated from operations                              287 847       192 477      
Net financing costs                                          (1 541)       (3 632)      
Taxation paid                                               (74 388)      (35 769)     
Net cash generated from operating activities                211 918       153 076      
Investing activities                                                                 
Capital expenditure, net of government                           
grant received                                              (91 940)      (77 466)                         
Loan granted to external party                                    -        (5 486)      
Acquisition of business, net of cash acquired                    23             -            
Proceeds on sale of property, plant and 
equipment and intangible assets                                 966           867          
Increase in restricted cash                                  (5 103)            -            
Net cash used in investing activities                       (96 054)      (82 085)     
Financing activities                                                                 
Proceeds from issuance of ordinary shares                     2 889           236          
Repayment of borrowings                                     (19 701)      (41 548)     
Dividends paid to companys shareholders                    (78 874)      (39 374)     
Net cash used in financing activities                       (95 686)      (80 686)     
Net increase/(decrease) in cash and cash equivalents         20 178        (9 695)      
Net cash and cash equivalents at beginning                          
of the year                                                  68 530        70 039                        
Exchange gains on cash and cash equivalents                   2 989         8 186        
Net cash and cash equivalents at end of the year             91 697        68 530                                                                                                                                                                       


Summary segment analysis                                                                                    
                                                                      Total   Intersegment            
                                                                    revenue        revenue     EBITDA       Assets               
                                                                      R000          R000      R000        R000                                                                                                                                          
Year ended 31 March 2013                                                                                    
Africa                       Consumer solutions                     343 578        (11 910)    86 580      279 239       
                             Fleet solutions                        281 937         (5 838)    92 429       83 047        
Europe                       Fleet solutions                        128 116           (576)    (4 796)      60 078        
North America                Fleet solutions                        155 657              -      2 271       53 067        
Middle East and Australasia  Fleet solutions                        265 598              -     32 445      129 133       
Brazil                       Fleet solutions                              -              -     (2 062)       4 529         
International                Fleet solutions and development        330 755       (315 837)    92 728      243 284       
Total                                                             1 505 641       (334 161)   299 595      852 377       
Corporate and consolidation entries                                       -              -    (15 055)     415 493       
Inter-segment elimination                                          (334 161)       334 161          -     (115 082)     
Total                                                             1 171 480              -    284 540    1 152 788     
Year ended 31 March 2012                                                                                    
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      
                                                                                                              

Notes to the summary consolidated financial results                                                                                                                                                                                                                                                                                           1.   Independent audit                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
     These summary consolidated financial results have been audited by our independent auditors, PricewaterhouseCoopers Inc., who have performed 
     their audit in accordance with the International Standards on Auditing. A copy of their unqualified audit report is available for inspection 
     at the Companys registered office.  
     
2.   Basis of preparation and accounting policies                                                                                                                                                                                                                                          
     These summary consolidated financial statements have been derived from the audited consolidated financial statements of MiX Telematics Limited 
     for the year ended 31 March 2013, and have been prepared in accordance with the recognition and measurement criteria of International Financial 
     Reporting Standards (IFRS) and are in compliance with Section 8.57 of the Listings Requirements of the JSE Limited and the requirements of the 
     Companies Act of South Africa. A copy of the full set of consolidated financial statements is available for inspection at the Companys registered 
     office.  
     
     The accounting policies are consistent in all material respects with those applied in the preparation of the consolidated financial statements for 
     the year ended 31 March 2012, except for the reclassification of in-vehicle devices from inventory held in client vehicles (installed) and inventory 
     (uninstalled) to property, plant and equipment (note 12). The Group has adopted all the new, revised or amended accounting pronouncements as issued 
     by the International Accounting Standards Board (IASB) which were effective for the Group from 1 April 2012. None of the adopted pronouncements 
     had a material impact on the consolidated results for the year ended 31 March 2013.   
     
3.   Operating segments                                                                                                                                                                                                                                                                    
     The MiX Telematics businesses are managed primarily on a geographic and also on a product basis. This is in accordance with the profit measures as 
     evaluated by the chief operating decision-maker of the Group. A reconciliation of EBITDA to operating profit is set out in note 4.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
                                                                                                          
4.   Operating profit and EBITDA                                                                       
                                                                                    Year        Year   
                                                                                   ended       ended   
                                                                                31 March    31 March   
                                                                                    2013        2012   
                                                                                 Audited     Audited   
                                                                                   R000       R000                                                                                               
     Operating profit and EBITDA                                                                        
     Operating profit                                                            181 196     146 388   
     Add depreciation, amortisation and impairments (note 5)                     103 344      91 164   
     EBITDA per segmental analysis                                               284 540     237 552  
     
5.   Depreciation, amortisation and impairment                                                         
                                                                                    Year        Year   
                                                                                   ended       ended   
                                                                                31 March    31 March   
                                                                                    2013        2012   
                                                                                 Audited     Audited   
                                                                                   R000       R000                                                                                                    
     Depreciation, amortisation and impairments                                                        
     Depreciation and amortisation                                                87 765      71 332   
     Amortisation of intangible assets arising out of business combinations       10 421      18 500   
     Impairment of intangible assets                                               5 158       1 332   
     Total                                                                       103 344      91 164                                                                                                                                                                                                                                                                                                                                                                                              
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 to R3.5 million at 31 March 2013. The decrease in borrowings is due to repayments of R26.0 million during 
     the year offset by draw downs of R6.5 million. The reduction in borrowings has contributed to a decrease in finance costs as compared to the 
     prior financial year. 
     
8.   Dividends                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
     Final dividend                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
     A final dividend of R52.6 million (2012: R39.4 million) was declared during the year and paid on 9 July 2012. Using shares in issue of 657.2 million 
     (2012: 657.0 million) this equates to a dividend of 8.0 (2012: 6.0) cents per share.  
     
     Interim dividend                                                                                                                                                                                                                                                                                                                                                                     
     An interim dividend of R26.4 million (2012: Nil) was declared during the year and paid on 10 December 2012. Using shares in issue of 659.5 million 
     this equates to a dividend of 4.0 (2012: Nil) cents per share.
     
9.   Contingencies                                                                                                                                                                                                                                                                                                                                                                        
     Services Agreement                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
     In terms of an amended network services agreement with Mobile Telephone Networks Proprietary Limited (MTN), MTN is entitled to claw back payments 
     from MiX Telematics Africa Proprietary Limited in the event of early cancellation of the agreement or certain base connections not being maintained 
     over the term of the agreement. Furthermore, no connection incentives will be received going forward. The maximum potential liability under the 
     arrangement is R65.1 million. No loss is expected under this arrangement.  
     
     Taxation                                                                                                                                                                                                                                                                                                                                                                             
     During the previous financial year, MiX Telematics Africa Proprietary Limited received a query and a subsequent reassessment of its tax liability 
     relating to the claiming of tax allowances in respect of section 24C of the South African Income Tax Act of 1962. In terms of this assessment, 
     the South African Revenue Services (SARS) disallowed the section 24C allowance going back to 2008 and charged interest thereon of approximately 
     R4 million. MiX Telematics Africa Proprietary Limited had been claiming the section 24C allowance on the basis of a legal opinion obtained from a 
     prominent South African law firm. The section 24C allowance had always been fully disclosed in its tax return and had been previously allowed by 
     SARS. At 31 March 2013, after a successful appeal of the revised assessment, SARS issued a letter informing the Company that they will waive the 
     amount of interest charged. As no connection incentives are received going forward, the section 24C allowance is not claimed any longer. The deferred 
     tax liability in respect of the section 24C allowance was transferred to current tax payable and paid over to SARS during the current financial year.   
      
10.  Exchange rates                                                        
     The following major rates of exchange were used:                               
                                                  Year ended    Year ended   
                                                    31 March      31 March   
                                                        2013          2012   
                                                     Audited       Audited   
                                                       R000         R000   
                                                                             
     SA Rand:United States Dollar - closing             9.24          7.69   
                                  - average             8.50          7.43   
     SA Rand:British Pound        - closing            14.04         12.29   
                                  - average            13.43         11.84   
                                                                                                                                                                                                                                                                
11.  Business combination                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
     On 1 May 2012, the Group acquired the business of Intellichain Proprietary Limited (Intellichain) (constituting employees and specific assets and 
     liabilities), a supply chain management software business. 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 prior financial year including interest accrued. The fair values of the assets 
     acquired and liabilities assumed are as follows:   
                                                           R000     
                                                                     
     Property, plant and equipment                           182      
     Software                                              5 739    
     Trade receivables                                       756      
     Cash and cash equivalents                                23       
     Trade and other payables                               (654)    
     Total identifiable assets                             6 046    
     Acquisition date fair value of consideration paid     6 046    
     The Group has finalised the identification and allocation of fair values to all assets and liabilities acquired. The post-acquisition revenue of R6.6 million 
     and the post-acquisition loss of R1.6 million have been included in the consolidated results. Had Intellichain been consolidated from 1 April 2012, the 
     consolidated income would show pro-forma revenue of R7.1 million and a net loss of R1.8 million in respect of this business.  
	 
     The at-acquisition fair value of trade receivables was R0.8 million of which none is expected to be uncollectible at 31 March 2013.
	 
     No material acquisition-related expenses were incurred in relation to the acquisition of the business.               
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
12.  Restatement                                                                                                                                                                                                                                                                                                                                         
     The Group has certain tracking devices which are installed in customer vehicles (in-vehicle devices). In prior years, the Group classified in-vehicle devices 
     installed as inventory held in client vehicles, which was included as a separate financial statement line item under current assets in the statement of financial 
     position. In addition, devices which were designated for installation in client vehicles were accounted for as inventory.  
	 
     During the current year, the Group changed the classification of in-vehicle devices to property, plant and equipment, since they represent tangible items that are 
     held for use in the supply of services, and are expected to be used for more than one period. Management have adjusted their accounting policy accordingly.
	 
     The reclassification has been adopted retrospectively and the comparative amounts have been restated accordingly.   
	 
     The Groups income statement continues to include a systematic allocation of the cost of installed in-vehicle devices in cost of sales in the form of depreciation 
     (previously rental units consumed), and the change in classification therefore has no impact on the Groups income statement or statement of comprehensive income 
     or any of the earnings per share measures for the year ended 31 March 2012.   
	 
     The effect on the consolidated statement of financial position as at 1 April 2011 (beginning of the comparative financial year) is an increase in property, plant 
     and equipment of R36.2 million (comprising both installed and uninstalled in-vehicle devices), the elimination of inventory held in client vehicles of R28.0 million 
     (representing installed in-vehicle devices) and a decrease in inventory of R8.2 million (representing uninstalled in-vehicle devices). 
	 
     The effect on the consolidated statement of financial position at 31 March 2012 (comparative year) is an increase in property, plant and equipment of R39.8 million 
     (comprising both installed and uninstalled in-vehicle devices), the elimination of inventory held in client vehicles of R29.7 million (representing installed 
     in-vehicle devices) and a decrease in inventory of R10.1 million (representing uninstalled in-vehicle devices).   
	 
     The Group classifies cash payments to acquire property, plant and equipment as investing activities, and the change in classification of in-vehicle devices from 
     inventory to property, plant and equipment therefore resulted in a change in classification of cash flows associated with the acquisition of such items. This is 
     because the Group now considers the expenditure associated with the acquisition of in-vehicle devices to have been made for resources intended to generate future  
     income and cash flows. The effects on the consolidated statement of cash flows for the year ended 31 March 2012 is an increase in cash generated from operations 
     of R26.7 million, and an increase in net cash used in investing activities of R26.7 million.   
	 
13.  Subsequent events                                                                                                                                                                                                                                                                                                                                   
     Other than the items discussed below, the directors are not aware of any matter material or otherwise arising since year-end and up to the date of this report, not 
     otherwise dealt with herein.
	 
     Dividends declared                                                                                                                                                                                                                                                                                                                                  
     Shareholders are advised that, subsequent to 31 March 2013, a cash dividend of 6 cents per share has been declared by the Board. The dividend has been declared out 
     of income reserves in respect of the twelve months to 31 March 2013. The dividend will be subject to a dividend withholding tax at a rate of 15%, which will result 
     in a net dividend of 5.1 cents per share to those shareholders who are not exempt in terms of section 64F of the Income Tax Act. There are no Secondary Tax on Companies 
     credits utilised against the dividend. The stated capital of MiX Telematics Limited is 660 212 500 shares of no par value. MiX Telematics tax reference number is 
     9155/661/84/7. The dividend timetable is set out below: 
	 
     Last date to trade cum dividend                      Friday, 28 June 2013   
     Trading ex dividend commences                        Monday, 1 July 2013   
     Record date                                          Friday, 5 July 2013    
     Payment date                                         Monday, 8 July 2013   
     Shares may not be dematerialised or rematerialised between Monday, 1 July 2013 and Friday, 5 July 2013, both dates inclusive.                                                                                                                                                                                                                       
     
     Banking facilities                                                                                                                                                                                                                                                                                                                                        Subsequent to year-end the Group obtained an overdraft facility of R10 million from Nedbank Limited. The facility is unsecured and bears interest at prime less 2%.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
     
     Restructuring                                                                                                                                                                                                                                                                                                                                       
     Subsequent to year-end, the Europe fleet solutions segment announced a restructuring plan. The total expected cost of the restructuring is approximately R2.7 million. 
     The restructuring will result in operating cost savings for the segment.   
	 
14.  Changes to the Board of Directors                                                                                                                                                                                                                                                                                                                   
     On 31 March 2013, R Friedman, a non-executive director, resigned from the Board of Directors. 
	 
     On 13 May 2013, E Banda was appointed as an independent non-executive director and as a member of the audit and risk committee. F Roji has resigned as non-executive 
     director of the Board of Directors and has been appointed as an alternate director to H Brody with effect from 13 May 2013.                                                                                                                                                                                                                                                                                                                                                                                                                                                                    

For and on behalf of the Board:
SR Bruyns                              SB Joselowitz
Midrand
4 June 2013

Registered office: Matrix Corner, Howick Close, Waterfall Park, Midrand

Directors: SR Bruyns* (Chairman); SB Joselowitz (CEO); EN Banda*; R Botha; HR Brody*; TE Buzer; CH Ewing*; 
RA Frew*; ML Pydigadu; F Roji (Alternate); HG Scott, RA Shough*, CWR Tasker; AR Welton*            
*Non-executive

Company secretary: Java Capital Trustees and Sponsors Proprietary Limited

Auditors: PricewaterhouseCoopers Inc.

Sponsor: Java Capital

For more information on our final results, please visit our website at: www.mixtelematics.com

10 June 2013
Date: 10/06/2013 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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