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Reviewed Results for the year ended30 June 2013 and dividend declaration
COMPU-CLEARING OUTSOURCING LIMITED
(REGISTRATION NUMBER 1998/015541/06)
(INCORPORATED IN THE REPUBLIC OF SOUTH AFRICA)
SHARE CODE: CCL ISIN: ZAE000016564
("COMPU-CLEARING" OR "THE COMPANY")
Reviewed preliminary condensed results for the year ended 30 June 2013 and cash dividend
declaration
Commentary
Compu-Clearing is South Africa’s market leader in the provision of IT services and products to
the customs clearing and freight forwarding industries.
The Group’s core revenue is transaction-based and directly linked to customer import and export
volumes. Other segments comprise hardware rental and the distribution of a globally leading
third party freight management solution, ediEnterprise.
The year under review has seen the Group deliver a 6% growth in profit for the year to R10,8
million (2012– R10,2 million). This was achieved during a period of flat trade volumes. The
investment in new servers towards the end of the 2012 financial year resulted in the scrapping
of existing servers, which though still serviceable, no longer satisfied our own technical
requirements. This resulted in a once-off write-off of R951,000 and is included in loss on
property, plant and equipment. After tax, the impact was R684,000.
The ediEnterprise segment made pleasing strides during the year growing revenue by 17% to R2,9
million (2012– R2,5 million) and increasing segment profit by 34% to R1 million (2012– R0,8
million).
The discontinuance of Secondary Tax on Companies has resulted in a reduction in the effective
rate of income tax to 26.1% (2012– 30.2%).
The Group’s owner occupied land and buildings has been revalued by an independent valuer on 15
May 2013. A revaluation surplus of R5,9million (2012—RNil) arising from the valuation is
reflected under other comprehensive income. The taxation effect is R1,5 million (2012—RNil).
Cash generation remained robust with cash generation from operations up 2% to R17 million (2012-
R16,6 million).
Prospects
Further ediEnterprise sites are scheduled to go live after the reporting date and will drive
ongoing growth within this segment. The Group will seek further market penetration through
intensified marketing efforts and continued development of new functionality in its existing
products. Management continue to monitor costs and maintain operating margins at acceptable
levels.
STATEMENT OF COMPREHENSIVE INCOME for the year ended 30 June
2013 2012
[reviewed] [audited] %
R'000 R'000 Increase
Revenue 66 733 63 303 5
Operating costs (53 083) 49 405) 7
- Distribution (39 073) (36 594)
- Administration (13 570) (12 315)
- Other (440) (496)
Operating profit 13 650 13 898 (2)
Finance income 1 000 900 11
Share of losses of equity accounted investee - (162)
Profit before income tax 14 650 14 636 0
Income tax expense (3 828) (4 413)
Income tax - Normal and deferred (3 828) (3 667)
Income tax - STC (Secondary Tax on Companies) - (746)
Profit for the year attributable to equity holders 10 822 10 223 6
Other comprehensive income 4 394 -
Items that will not be reclassified to profit and loss
- Surplus on revaluation of land and buildings 5 851 -
- Income tax on other comprehensive income (1 457) -
Total comprehensive income for the year 15 216 10 223 49
Basic earnings per share [cents] 25.9 24.7 5
Diluted earnings per share [cents] 25.9 24.2 7
STATEMENT OF FINANCIAL POSITION at 30 June
2013 2012
[reviewed] [audited]
R'000 R'000
ASSETS
Non current assets 28 657 25 001
Property, plant and equipment 26 398 22 479
Intangible asset 1 590 1 705
Investment in equity accounted investee - -
Deferred tax assets 669 817
Current assets 32 768 30 149
Inventory 23 29
Trade and other receivables 9 800 9 412
Income tax receivable 477 365
Cash and cash equivalents 22 468 20 343
Total assets 61 425 55 150
EQUITY AND LIABILITIES
Shareholders' funds 53 262 47 695
Share capital and premium 2 696 2 049
Treasury shares (265) (341)
Reserves 50 831 45 987
Non-current liabilities 2 687 2 161
Post retirement medical obligations 433 1 369
Deferred tax liabilities 2 254 792
Current liabilities 5 476 5 294
Trade and other payables 5 476 5 292
Income tax payable - 2
Total equity and liabilities 61 425 55 150
Net asset value per share [cents] 126.7 115.0
STATEMENT OF CASH FLOWS for the year ended 30 June
2013 2012
[reviewed] [audited]
R'000 R'000
Profit before income tax 14 650 14 636
Adjustments for: 3 468 2 921
Non cash items 4 468 3 821
Net finance income (1 000) (900)
Cash generated by trading operations 18 118 17 557
Increase (decrease) in post retirement medical
obligations (936) 58
Increase in working capital (198) (1 013)
Cash generated by operations 16 984 16 602
Finance income 1 000 900
Income tax paid (3 786) (4 397)
Distributions to shareholders
Dividend paid (10 384) (7 458)
Cash inflow from operating activities 3 814 5 647
Cash outflow from investing activities (2 412) (4 817)
Acquisition of property, plant and equipment (1 998) (4 419)
Disposal of interest in equity accounted investee - (135)
Acquisition of intangible assets (472) (304)
Proceeds on disposal of property, plant and equipment 58 41
Cash inflow from financing activities 723 103
Proceeds from the issue of shares 465 65
Proceeds from the sale of treasury shares 258 38
Increase in cash and cash equivalents 2 125 933
Cash and cash equivalents at the beginning of the year 20 343 19 410
Cash and cash equivalents at the end of the year 22 468 20 343
STATEMENT OF CHANGES IN EQUITY for the year ended 30 June
Share Share Treasury Non-Distributable Retained Share-based
capital premium shares reserve earnings payment reserve Total
R'000 R'000 R'000 R'000 R'000 R'000 R'000
Balance at 30 June 2011 418 1 541 (354) 2 858 39 603 749 44 815
Total comprehensive income for
the year
-Profit for the year 10 223 10 223
Transactions with owners
recorded directly in equity
-Transfer from revaluation
surplus (45) 45 -
-Sale of treasury shares 25 13 38
-Share issues 1 64 65
-Dividends paid (7 458) (7 458)
Share-based payment transaction 12 12
Balance at 30 June 2012 419 1 630 (341) 2 813 42 413 761 47 695
Total comprehensive income for
the year 4 394 10 822 15 216
Profit for the year 10 822 10 822
Surplus on revaluation of
land and buildings 5 851 5 851
Deferred taxation effect of (1 457) (1 457)
revaluation
Transactions with owners
recorded directly in equity
-
-Transfer from revaluation (45) 45
surplus
-Sale of treasury shares 182 76 258
-Share issues 3 462 465
-Dividends paid (10 384) (10 384)
Share-based payment transaction 12 12
Balance at 30 June 2013 422 2 274 (265) 7 162 42 896 773 53 262
RECONCILIATION OF HEADLINE EARNINGS for the year ended 30 June
2013 2012
[reviewed] [audited] %
R'000 R'000 Increase
Profit for the year attributable to ordinary shareholders 10 822 10 223
Adjusted for :
Loss on disposal of property, plant and equipment 1 009 77
Loss on disposal of equity accounted investee - 202
Taxation effect (283) (78)
Headline earnings 11 548 10 424 11
Headline earnings per share [cents] 27.7 25.1 10
Diluted headline earnings per share [cents] 27.7 24.7 12
Actual number of shares in issue ['000] 42 022 41 486
Weighted average number of shares in issue ['000] 41 710 41 451
Diluted weighted average number of shares in issue ['000] 41 710 42 219
SEGMENTAL REPORT for the year ended 30 June
2013 2012
%
[reviewed] [audited] Increase
R'000 R'000 (decrease)
Software rental revenue 51 063 48 448 5
Hardware rental revenue 11 310 10 981 3
EdiEnterprise revenue 2 919 2 502 17
Head Office revenue 1 441 1 372 5
Total revenue 66 733 63 303 5
Segment profit - Software 24 672 23 079 7
Segment profit - Hardware 1 803 2 436 (26)
Segment profit - EdiEnterprise 1 030 766 34
Segment profit - Head Office (13 855) (12 383) 12
Total operating profit 13 650 13 898 (2)
Operating margin 20% 22%
Basis of preparation
The preliminary condensed consolidated results for the year ended 30 June 2013 have been
prepared and presented in accordance with requirements of International Accounting Standard
(“IAS”) 34 Interim Financial Reporting, the SAICA Financial Reporting Guides as issued by the
Accounting Practices Committee and Financial Reporting Pronouncements as issued by the Financial
Reporting Standards Council, the Listings Requirements of the JSE Limited and the South African
Companies Act, no 71 of 2008 as amended.
The accounting policies applied in the presentation of the preliminary condensed
consolidated results which comply with International Financial Reporting Standards are
consistent with those applied for the year ended 30 June 2012. The preliminary condensed
consolidated results have been presented on the historical cost basis with the exception of
certain fixed property which has been revalued and are presented in Rand rounded to the nearest
thousand, which is the Company’s functional and presentation currency.
Review report
The preliminary condensed consolidated results of Compu-Clearing Outsourcing Limited for the
year ended 30 June 2013 have been reviewed by the companies auditor, KPMG Inc. Their review
report dated 29 August 2013, is available for inspection at the Company’s Registered Office.
KPMG Inc state that their review was conducted in accordance with the International Standard on
Review Engagements 2410, Review of Interim Information Performed by the Independent Auditor of
the Entity, and have expressed an unmodified opinion on the preliminary condensed results.
Related party transactions
There has been no significant change in related party relationships since the prior year. Other
than in the normal course of business, there have been no significant transactions during the
year with other related parties.
Ordinary cash dividend declaration
Notice is hereby given of the declaration of an ordinary cash dividend of 30 cents per share
(2012 – 25 cents per share) (‘the dividend’) in respect of the year 30 June 2013. In
accordance with the JSE Listing Requirements the following additional information is
disclosed ;the dividend has been declared out of income reserves; the local dividend tax rate is
15%; the gross local dividend amount is 30 cents per ordinary share for shareholders exempt from
dividend tax; the net local dividend amount is 25.5 cents per ordinary share for shareholders
liable to pay dividend tax; the company currently has 42 021 645 shares in issue and the
company’s income tax reference number is 9913001716. No STC credits have been utilised.
The following salient dates will apply to the dividend:
Last date to trade `cum` the dividend Friday, 18 October 2013
Trading commences `ex` the dividend Monday, 21 October 2013
Record date Friday, 25 October 2013
Date of payment of the dividend Monday, 28 October 2013
Share certificates may not be dematerialised or rematerialised during the period Monday, 21
October 2013 to Friday, 25 October 2013 both days inclusive.
Annual General Meeting
The Annual General Meeting of Compu-Clearing will be held at 7 Drome Road,Lyndhurst,
Johannesburg, 2192 at 14h00 on Thursday 28 November 2013.
For and on behalf of the Board
Johannesburg A.Garber J. du Preez
29 August 2013 (Chairman) (Chief Executive)
Executive directors: A. Garber, J. du Preez, M. Acosta-Alarcon, C. Efthymiades
Independent non-executive directors : A. Katz, Dr. T. Mogale
Non-executive directors : D. Cleasby, M. Lutrin, G. McMahon
Registered office 7 Drome Road, Lyndhurst, 2106
PO Box 890856, Lyndhurst, 2106
Transfer secretaries Computershare Investor Services (Pty)Limited
70 Marshall Street, Johannesburg, 2001
Secretary Lutrin and Associates
1st Floor Block B, Sandhavon Office Park ,12 Pongola Crescent
Eastgate Ext 17, Sandton, 2090
Auditors KPMG Inc, Registered Auditor
KPMG Crescent,85 Empire Road, Parktown, 2193
Private Bag 9, Parkview, 2122
Sponsors Sasfin Capital a division of Sasfin Bank Ltd
(Registration number 1951/002280/06)
Sasfin Place,29 Scott Street, Waverley,2090
Attorneys Fluxmans Attorneys
11 Biermann Avenue, Rosebank 2196
Private Bag X41, Saxonwold, 2132
Prepared by : W Fourie Bcompt (Hons)
6 September 2013
Date: 06/09/2013 05:05:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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