Wrap Text
Reviewed financial results summary for the year ended 31 August 2013
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 2013
Condensed Consolidated Statement of Comprehensive Income
Reviewed Audited
Year ended Year ended
31 Aug 13 31 Aug 12
Notes R'000 R'000
Revenue 13 988 17 933
Gross profit 6 132 10 579
(Loss)/profit before interest and depreciation (3 287) (782)
Depreciation (1 900) (1 856)
Loss before interest and taxation (5 187) (2 639)
Finance cost (190) (104)
Loss before taxation (5 377) (2 743)
Taxation 648 677
Loss after taxation (4 729) (2 066)
Other comprehensive income/(loss):
Foreign currency translation differences on
foreign operations 408 (1 582)
Total comprehensive loss for the year (4 321) (3 648)
Loss attributable to:
– Equity holders of the parent company (4 575) (1 980)
– Non-controlling interests (154) (87)
Loss for the year (4 729) (2 066)
Total comprehensive loss attributable to:
– Equity holders of the parent company (4 188) (3 478)
– Non-controlling interests (134) (170)
Total comprehensive loss for the year (4 321) (3 648)
Loss per share (cents) 4 (3.16) (1.37)
Diluted loss per share (cents) 4 (3.16) (1.38)
Condensed Consolidated Statement of Financial Position
Reviewed Audited
Year ended Year ended
31 Aug 13 31 Aug 12
Notes R'000 R'000
ASSETS
Non-current assets 11 281 11 512
Property, plant and equipment 8 349 9 112
Deferred taxation assets 2 932 2 401
Current assets 7 447 9 051
Inventory 5 4 420 5 911
Trade and other receivables 2 267 2 331
Cash and cash equivalents 760 810
TOTAL ASSETS 18 728 20 563
EQUITY AND LIABILITIES
Equity 1 256 5 578
Attributable to Stella Vista 1 430 5 618
Non-controlling interests (174) (40)
Non-current liabilities 546 787
Deferred revenue – 124
Deferred tax liability 546 663
Current liabilities 16 925 14 199
Trade and other payables 6 7 921 6 974
Deferred revenue – 115
Taxation payable 27 521
Current portion of interest-bearing
borrowings 8 895 6 550
Bank overdraft 82 38
TOTAL EQUITY AND LIABILITIES 18 728 20 563
Net asset value per share (cents) 0.87 3.85
Condensed Consolidated Statement of Cash Flows
Reviewed Audited
Year ended Year ended
31 Aug 13 31 Aug 12
R'000 R'000
Net loss before tax and separately disclosed items (5 377) (2 743)
Non-cash items 1 348 (573)
Working capital changes 2 262 2 708
Cash generated from operations (1 767) (608)
Finance cost (190) (104)
Taxation (paid)/refunded (494) 62
Cash flow from operating activities (2 450) (649)
Sale of property, plant and equipment 12 156
Purchase of property, plant and equipment – (147)
Cash flow from investing activities 12 9
Proceeds from interest bearing borrowings 2 345 521
Cash flow from financing activities 2 345 521
Net movement in cash and cash equivalents (94) (118)
Cash and cash equivalents at beginning of year 772 891
Cash and cash equivalents at end of year 678 772
Condensed Consolidated Statement of Changes in Equity
for the year ended 31 August 2013
Attributable
Foreign to equity
Share currency holders of Non-
capital and translation Accumulated the parent controlling Total
R‘000s premium reserve losses company interests equity
Audited balance at 1 September 2011 20 343 (1 703) (9 545) 9 096 130 9 226
Total comprehensive loss for the year – (1 498) (1 980) (3 478) (170) (3 648)
Audited balance at 31 August 2012 20 343 (3 201) (11 525) 5 618 (40) 5 578
Total comprehensive loss for the year – 387 (4 575) (4 188) (134) (4 321)
Reviewed balance at 31 August 2013 20 343 (2 813) (16 100) 1 430 (174) 1 256
Notes to the Condensed Consolidated Financial Statements
1. Basis of preparation
The condensed consolidated financial results for the year ended 31 August 2013
("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 2013.
3. Review opinion
The condensed consolidated results for the year ended 31 August 2013 have been
reviewed by the Group auditors, IAPA Johannesburg, Chartered Accountants (SA)
and their unmodified report is available for inspection at the registered office of
Stella Vista.
4. Reconciliation of earnings and headline (loss)/earnings
Reviewed Audited
Year ended Year ended
31 Aug 13 31 Aug 12
R'000 R'000
(Loss)/profit after taxation attributable to:
Ordinary equity holders of the parent entity for
the year (4 575) (1 980)
Loss on disposal of property, plant and equipment (9) (19)
Diluted loss (4 584) (1 998)
Headline loss (4 584) (1 998)
Weighted average number of shares in issue ('000) 145 000 145 000
Loss per share (cents) (3.16) (1.37)
Diluted loss per share (cents) (3.16) (1.38)
Headline loss per share (cents) (3.16) (1.38)
Diluted headline loss per share (cents) (3.16) (1.38)
5. Inventory
Raw material components 1 769 2 118
Work in progress 129 1 313
Finished goods 2 522 2 480
4 420 5 911
6. Trade and other payables
Trade and other payables comprise the following:
Trade payables 4 110 3 737
Deposits 2 085 1 894
Accrued expenses 1 298 1 045
Payroll related liability 353 227
VAT accrual - 29
Leave pay accrual 75 42
7 921 6 974
7. 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 cash flow. The monthly management accounts tabled at the board
meeting and used by the chief operating decision-maker are in line with IFRS.
At 31 August 2013, the Group was made up of the following operating segments:
- South African operations, which earns revenue from the sale of the screens
- United Kingdom operations, which earns revenue from the sale and maintenance of
the screens as well as rental income from screens
South United
R‘000 Africa Kingdom Total
Reviewed at 31 August 2013
Total segment revenue 7 616 6 372 13 988
Inter-segment revenue – – –
Revenue from external customers 7 616 6 372 13 988
Cost of sales 5 306 2 550 7 856
Depreciation and amortisation 144 1 756 1 900
Income tax credit 648 – 648
Loss after tax 2 265 2 464 4 729
Inventory 4 420 – 4 420
Total assets 9 300 9 423 18 728
Total liabilities 16 718 753 17 471
South United
R‘000 Africa Kingdom Total
Audited at 31 August 2012
Total segment revenue 11 420 6 639 18 059
Inter-segment revenue 126 – 126
Revenue from external customers 11 294 6 639 17 933
Cost of sales 6 442 912 7 354
Depreciation and amortisation 343 1 513 1 856
Income tax credit 677 – 677
Loss/(profit) after tax 1 077 989 2 066
Inventory 5 911 – 5 911
Total assets 10 021 10 542 20 563
Total liabilities 13 767 1 219 14 986
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 climate and the continued entry of imported lower standard displays
has resulted in tougher competition and increased pressure on margins. This is further
complicated as the South African regulations do not require any import duties on these
products. The end result is a significant reduction of sales income and diminishing
workforce. Local buyers believe they are safer if they import products regardless of price
competitiveness and lack of local support.
We continue to promote the benefit of procurement through a local manufacturer offering
guidance on product design solutions and the benefits of local back-up and technical
support thus ensuring an improved ROI for our customers.
Management is of the opinion that Stella Vista is in need of a serious capital investment.
This would allow for much needed R&D, an upgrade of rental stock and funding of new
marketing strategies.
Products and services
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.
A new line of products geared for the commercial market has been introduced. This will
allow more cost effective displays for the developing markets, lowering the bar for the
entry of many customers.
Financial results
Stella Vista is operating in a difficult environment for the LED industry worldwide.
When comparing the results of 2013 to 2012 there is a reduction in revenue of 21.98%,
a reduction in gross profit of 42.04%, and an increase in net loss after tax of 128.86% from
R2,066 for 2012 to R4,729 for 2013.
Subsequent events and capital commitments
Shareholders are reminded of the offer to purchase all of the Stella Vista Shares not already
held by the Offerors, as detailed in the Circular issued 11 November 2013. The Scheme
Meeting will be held at the Company's registered office at 10:00 on 10 December 2013.
The approval of this offer will then result in the subsequent delisting of the Company.
There was no significant capital expenditure authorised as at 31 August 2013.
Going concern
The going concern of the Company is subject to the continued support of the major
shareholders. Management believe that with the continued support of the major
shareholders the Company will remain a going concern and therefore believe the deferred
tax asset should continue to be recognised.
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
29 November 2013
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 (Chairman, Independent non-executive)
C Newman (Independent non-executive)
M Cizek (Independent non-executive), D Tabakovic, L Kerr
Company secretary
L Kerr
Preparer
D Mailich CA(SA)
Sponsor
ARCAY MOELA SPONSORS
Auditors
IAPA Johannesburg
Chartered Accountants (SA)
Date: 29/11/2013 04:28:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.