Wrap Text
Reviewed interims for period ended 31 December 2013
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 condensed consolidated interim Highlights
Revenue 8% ? Cash generated by operations 26% ?
financial statements for the six months
Operating profit 35% ? Headline earnings per share 17% ?
ended 31 December 2013
Profit for the period 18% ?
Compu-Clearing Outsourcing Limited | "Compu-Clearing", "The Company" or "The Group" | Incorporated in the Republic of South Africa | Registration number 1998/015541/06 | JSE Share code : CCL | ISIN ZAE 000016564 | Listed on the JSE Limited
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME STATEMENT OF FINANCIAL POSITION Changes in accounting policies
6 m onths ended Year ended 31 Decem ber 31 December 30 June The Group adopted the new, revised or amended accounting pronouncements as issued by
31 Decem ber 31 December 30 June 2013 2012 2013 the IASB, which were effective and applicable to the Group from 1 July 2013.
% Inc. 2013 2012 2013 [Review ed] [Review ed] [Audited]
[Review ed] [Restated] [Restated] IFRS 10 Consolidated Financial Statements
R'000 R'000 R'000
R'000 R'000 R'000 IFRS 10 establishes principles for the presentation and preparation of consolidated financial
ASSETS
statements when an entity controls one or more other entities. The Group has revised its
Non current assets 29,733 23,885 28,657
Rental and other revenue 8 35,599 32,866 66,733 accounting policies on the consolidation of subsidiaries and concluded that the adoption of
Property, plant and equipment 25,955 22,116 26,398
Operating costs (26,741) (26,294) (54,043) IFRS 10 did not result in any material change in the consolidation of the Group.
Intangible asset 3,561 1,711 1,590
- Distribution (19,608) (19,290) (39,073) Deferred taxation asset 217 58 669 IFRS 13: Fair value measurement
- Administration (5,796) (6,845) (14,530) Current assets 25,015 24,670 32,768 IFRS 13 aims to improve consistency and reduce complexity by providing a precise definition
- Other (1,337) (159) (440) Inventory - 30 23 of fair value and a single source of fair value measurement and disclosure requirements for
Operating profit 35 8,858 6,572 12,690
Trade and other receivables 9,266 8,612 9,800 use across IFRS. IFRS 13 was adopted and applied prospectively and it was assessed that
Taxation receivable 753 1,556 477 the adoption did not result in any material impact on the financial results of the Group. The
Finance income 510 476 1,000
Cash and cash equivalents 14,996 14,472 22,468 face value of the financial instruments presented approximates the fair value.
Profit before income tax 33 9,368 7,048 13,690
Income tax - normal and deferred (3,029) (1,698) (3,559) Total assets 54,748 48,555 61,425 IAS 19 Employee benefits
EQUITY AND LIABILITIES As a result of IAS 19 (2011), the Group has changed its accounting policy with respect to the
Profit for the period 18 6,339 5,350 10,131
Equity 47,128 43,379 53,262 basis for determining the income or expense related to the defined benefit medical obligation.
Other comprehensive income for the
- 634 5,085 Share capital and premium 2,576 2,120 2,696
period Under IAS 19 (2011), the Group determines the net interest expense for the period on the net
Treasury shares - (330) (265)
Total comprehensive income for the defined benefit liability by applying the discount rate used to measure the defined benefit
Distributable reserves 44,552 41,589 50,831 obligation at the beginning of the annual period to the net defined benefit liability at the begin-
period 6,339 5,984 15,216
Non-current liabilities 3,074 1,351 2,687 ning of the annual period, taking into account any changes in the net defined benefit liability
Earnings per share [cents] Post retirement medical obligations 414 451 433 during the period as a result of contributions and benefit payments. Consequently, the net
Basic 17 15.1 12.9 24.3 Deferred taxation liability 2,660 900 2,254 interest on the net defined benefit liability now comprises:
Diluted 19 15.1 12.7 24.3 Current liabilities 4,546 3,825 5,476
Headline earnings per share [cents] Trade and other payables 3,777 3,825 5,476 •interest cost on the defined benefit obligation;
Basic 17 15.1 12.9 26.0 Income tax payable 769 - - •interest income on plan assets; and
Diluted 18 15.1 12.7 26.0 •interest on the effect on the asset ceiling.
Total liabilities 7,620 5,176 8,163
Actual number of shares in issue ['000] 42,061 41,537 42,022
Weighted average number of shares in issue ['000] 42,048 41,531 41,710 In addition the movements in the defined benefit plan are now shown in other comprehensive
Total equity and liabilities 54,748 48,555 61,425
Diluted weighted average number of shares in issue 42,048 42,045 41,710 income and not in profit or loss.
Gross ordinary dividend per share declared[cents] - - 30.0 Net asset value per share [cents] 112.0 104.4 126.7
The effect on the statement of profit or loss and other comprehensive income is as follows:
Gross ordinary dividend per share paid [cents] 30.0 25.0 25.0 Net tangible asset value per share [cents] 103.6 100.3 123.0
31 31 30
STATEMENT OF CHANGES IN EQUITY Decem ber December June
RECONCILIATION OF HEADLINE EARNINGS 6 m onths ended Year ended
2013 2012 2013
6 m onths ended Year ended [Review ed] [Restated] [Restated]
31 Decem ber 31 December 30 June
31 Decem ber 31 December 30 June 2013 2012 2013
% Inc. 2013 2012 2013 [Review ed] [Review ed] [Audited]
[Review ed] [Restated] [Restated]
Profit for the period:
R'000 R'000 R'000
R'000 R'000 R'000 Overall decrease in profit for the period - (634) (691)
Balance at beginning of period 53,262 47,695 47,695
Profit for the period attributable to ordinary Proceeds of share issues 145 78 723 Overall increase in other comprehensive income for the period - 634 691
6,339 5,350 10,131
shareholders Total comprehensive income for the period 6,339 5,984 15,216 Overall impact on total comprehensive income for the period - - -
Adjusted for : Share-based payment reserve movement - 6 12 The change in accounting policy has had no material impact on the statement of financial
Loss on disposal of property, plant and equipment 8 9 1,009 Dividends paid (12,618) (10,384) (10,384) position. The movement in post retirement medical obligations no longer has a material impact
Taxation effect (2) (3) (283) Balance at end of period 47,128 43,379 53,262 on the statement of cash flows. The movement previously reported for 30 June 2013 and
Headline earnings 6,345 5,356 10,857
STATEMENT OF CASH FLOWS 31 December 2012 was R0,9million.
6 m onths ended Year ended The basic and diluted earnings per share for the year ended 30 June 2013, previously re-
SEGMENTAL REPORT 31 Decem ber 31 December 30 June ported as 25.9 cents, has moved to 24.3 cents. The basic and diluted earnings per share for
6 m onths ended Year ended 2013 2012 2013 the six months ended 31 December 2012, previously reported as 14.4 cents and 14.2 cents
31 Decem ber 31 December 30 June [Review ed] [Restated] [Restated]
% Inc. 2013 2012 2013
have moved to 12.9 and 12.7 cents respectively.
R'000 R'000 R'000
[Review ed] [Restated] [Restated] Profit before income tax 9,368 7,048 13,690 Headline earnings and diluted headline earnings per share for the year ended 30 June 2013,
R'000 R'000 R'000 Adjusted for: 1,390 1,249 3,468 previously reported as 27.7 cents, has moved to 26.0 cents. Headline and diluted headline
Revenue Non cash items 1,900 1,725 4,468 earnings per share for the six months ended 31 December 2012, previously reported as 14.4
Software rental 9 27,426 25,274 51,063 Net finance income (510) (476) (1,000) cents and 14.2 cents have moved to 12.9 and 12.7 cents respectively.
Hardware rental 3 5,720 5,529 11,310
CargoWise One 25 1,772 1,417 2,919 Cash generated by trading operations 10,758 8,297 17,158 We have assessed the impact of all other new standards that are currently effective and these
Headoffice 5 681 646 1,441 (Decrease) increase in post retirement medical standards have no material impact on the results of the Group.
Total revenue from external sources 8 35,599 32,866 66,733 obligations (19) (38) 24
Increase in working capital (1,142) (668) (198) Distributions to shareholders
Segment profit/(loss) Cash generated by operations 9,597 7,591 16,984 Compu-Clearing has a policy of paying a dividend at year end. As a result, the company has
Software rental 13,367 11,119 24,672 Net finance income 510 476 1,000 not declared an interim dividend.
Hardware rental 1,847 1,916 1,803 Income tax paid (1,679) (2,270) (3,786)
CargoWise One 687 630 1,030 Dividends paid (12,618) (10,384) (10,384) Reviewed report
Headoffice (6,533) (6,617) (13,815) Cash (outflow)/inflow from operating The condensed consolidated interim financial statements of Compu-Clearing Outsourcing
Profit before income tax 33 9,368 7,048 13,690 activities (4,190) (4,587) 3,814
Limited for the six months ended 31 December 2013 have been reviewed by the company’s
Cash outflow from investing activities (3,427) (1,362) (2,412)
auditor, KPMG Inc. In their reviewed report dated 10 March 2014, which is available for
Segment Assets inspection at the Company’s Registered Office. KPMG Inc state that their review was con-
Software rental 14,114 10,867 12,126 Acquisition of property, plant and equipment (1,135) (1,092) (1,998) ducted in accordance with the International Standard on Review Engagements 2410, Review
Hardware rental 7,253 8,934 7,441 Acquisition of intangible asset (2,313) (300) (472) of Interim Information Performed by the Independent Auditor of the Entity, and have expressed
CargoWise One 423 779 852 Proceeds on disposal of property, plant an unmodified conclusion on the condensed consolidated interim financial statements.
Headoffice 32,958 27,975 41,006 and equipment 21 30 58
Total assets 54,748 48,555 61,425 Cash generated by financing activities 145 78 723 Changes to the board of directors
Proceeds from the issue of shares - 78 465 Shareholders are referred to the announcement published on SENS on Tuesday, 11 March
Segment Liabilities 2014, wherein it was announced that Mr Costas Efthymiades has stepped down as Group
Software rental 206 120 693 Proceeds from the sale of treasury shares 145 - 258
Financial Director from the Board and that Mr Jonathan Davis has been appointed in his
Hardware rental 87 150 241 (Decrease) increase in cash and cash equivalents (7,472) (5,871) 2,125 stead.
CargoWise One 955 625 540 Cash and cash equivalents at the beginning of the
Headoffice 6,372 4,281 6,689 period 22,468 20,343 20,343 The effective date of both changes is 11 March 2014.
Total liabilities 7,620 5,176 8,163 Cash and cash equivalents at the end of the period 14,996 14,472 22,468
Related party transactions
There has been no significant change in related party relationships since the previous year.
Other than in the normal course of business, there have been no significant transactions
Commentary during the year with related parties.
Compu-Clearing is South Africa’s market leader in the provision of IT services and products to marketing efforts and continued development of new functionality in existing products. Man- Significant transactions
the customs clearing and freight forwarding industries. agement continue to monitor costs and maintain operating margins at acceptable levels.
No material events or circumstances have occurred subsequent to the period end.
The Group’s core revenue is transaction-based and directly linked to customer import and Basis of preparation
export volumes. Other revenue segments comprise hardware rental and the distribution of a The condensed consolidated interim financial statements for the six months ended 31 Decem-
For and on behalf of the Board
globally leading third party freight management solution, CargoWise One (formerly ber 2013 have been prepared and presented in accordance with the requirements of
ediEnterprise). International Financial Reporting Standard IAS 34 Interim Financial Reporting, the SAICA Johannesburg A. Garber J. du Preez
Financial Reporting Guides as issued by the Accounting Practices Committee, Financial 10 March 2014 (Chairman) (Chief Executive)
For the six months to 31 December 2013 Group revenue grew by 8% to R35,6 million Pronouncements as issued by the Financial Reporting Standards Council, the Listings
(2012 – R32,9 million). This was driven by a 9% growth in the software rental segment and a Requirements of the JSE Limited and the South African Companies Act, No 71 of 2008, as Executive directors: A. Garber, J. du Preez, M. Acosta-Alarcon, C. Efthymiades
25% growth in the CargoWise One segment, which although off a small base is making good amended.
progress by adding new clients. Independent non-executive directors : A. Katz, Dr. T. Mogale
In preparing these condensed consolidated interim financial statements, management makes Non-executive directors : D. Cleasby, M. Lutrin, G. McMahon
A pleasing 35% growth in operating profit was achieved. This was a result of reasonable use of judgements, estimates and assumptions that affect the application of accounting
revenue growth combined with excellent operating costs control. Prepared by: J Davis B Acc CA(SA) under the supervision of the financial director
policies and the reported amounts of assets and liabilities, income and expense.
email:jonathan@compuclearing.za.com
Cash flow for the period remained robust with cash generated by operations up 26% to R9,6 Actual results may differ from these estimates.
million (2012 – R7,6 million). 14 March 2014
The significant judgements made by management in applying the Group's accounting policies
The period saw the commencement of a project to entrench and enhance Compu-Clearing’s and the key sources of estimation uncertainty were the same as those that applied to the Transfer secretaries: Registered office:
position as a market leader. The first phase of the Group’s new flagship product consolidated financial statements as at and for the year ended 30 June 2013. Computershare Investor Services Proprietary Limited 7 Drome Road
Compusolutions Diamond (?Diamond?), has already met with an enthusiastic response. Ground Floor Lyndhurst, 2192
Development costs amounting to R1,2 million (2012—RNil) attributable to this project have The accounting policies applied in the presentation of the condensed consolidated interim 70 Marshall Street PO Box 890856
been capitalised to intangible assets and will be amortised against the related revenue flows. financial statements, which comply with International Financial Reporting Standards, are Johannesburg, 2001 Lyndhurst, 2106
Revenue flows from Diamond will commence in the second half of this financial year. consistent with those applied for the year ended 30 June 2013, except for new standards and
interpretations that became effective on 1 July 2013. The condensed consolidated interim
Prospects financial statements have been presented on the historical cost basis and are presented in
The CargoWise One segment continues to grow with further implementations expected to go Rand rounded to the nearest thousand, which is the Group`s functional and presentation
live in the second half of the 2014 financial year, which will drive further growth within the currency.
segment.
This interim report should be read in conjunction with the financial statements for the year Sponser: Sasfin Capital
The Group will seek further market penetration through the release of Diamond, intensified ended 30 June 2013. (a division of Sasfin Bank Limited)
WWW.COMPCLEAR.CO.za
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