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Preliminary financial statements for year end June 2014 and dividend declaration
Compu-Clearing Outsourcing Limited
Registration number: 1998/015541/06
JSE share code: CCL ISIN: ZAE000016564
PRELIMINARY CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2014 AND CASH DIVIDEND DECLARATION
REVENUE UP 8%
OPERATING PROFIT UP 38%
PROFIT FOR THE YEAR UP 24%
CASH GENERATED BY OPERATIONS UP 26%
HEADLINE EARNINGS PER SHARE UP 15%
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
30 June 30 June
% 2014 2013
Inc./ [Audited &
All figures in R'000 Dec. [Reviewed] restated]
Rental and other revenue 8 71 968 66 733
Operating costs 1 (54 488) (54 043)
- Distribution (38 503) (39 073)
- Administration (15 324) (14 530)
- Other ( 661) ( 440)
Operating profit 38 17 480 12 690
Interest received 5 1 050 1 000
Profit before income tax 35 18 530 13 690
Income tax - normal and deferred (5 930) (3 559)
Profit for the year 24 12 600 10 131
Other comprehensive income 1 556 5 085
Total comprehensive income for the year attributable
to equity holders of the company (7) 14 156 15 216
Basic earnings per share [cents] 23 30.0 24.3
Diluted 23 30.0 24.3
Headline earnings per share [cents]
Basic 15 30.0 26.0
Diluted 15 30.0 26.0
Actual number of shares in issue ['000] 42,061 42,022
Weighted average number of shares in issue ['000] 42,055 41,710
Diluted weighted average number of shares in issue ['000] 42,055 41,710
Gross ordinary dividend per share declared[cents] 32.0 30.0
Gross ordinary dividend per share paid [cents] 30.0 25.0
RECONCILIATION OF HEADLINE EARNINGS
30 June 30 June
2014 2013
% [Audited &
All figures in R'000 Inc. [Reviewed] Restated]
Profit for the period attributable to ordinary shareholders 12 600 10 131
Adjusted for:
Loss on disposal of property, plant and equipment 16 1 009
Tax effect (4) (283)
Headline earnings 16 12 612 10 857
SEGMENTAL REPORT
30 June 30 June
2014 2013
% [Audited &
All figures in R'000 Inc. [Reviewed] restated]
Revenue
Software rental 8 55 011 51 063
Hardware rental 3 11 636 11 310
CargoWise One 32 3 841 2 919
Headoffice 3 1 480 1 441
Total revenue from external sources 8 71 968 66 733
Segment profit/(loss)
Software rental 14 28 055 24 672
Hardware rental 50 2 706 1 803
CargoWise One 48 1 527 1 030
Headoffice - (14 808) (14 815)
Total operating profit 38 17 480 12 690
Segment Assets
Software rental 16 698 12 126
Hardware rental 6 746 7 441
CargoWise One 1 153 852
Headoffice 41 684 41 006
Total assets 66 281 61 425
Segment Liabilities
Software rental 2 105 693
Hardware rental 175 241
CargoWise One 1 484 540
Headoffice 7 452 6 689
Total liabilities 11 216 8 163
STATEMENT OF FINANCIAL POSITION
30 June 30 June
% 2014 2013
All figures in R'000 Inc. [Reviewed] [Audited]
ASSETS
Non current assets 33 035 28 657
Property, plant and equipment 27 449 26 398
Intangible asset 5 139 1 590
Deferred taxation asset 447 669
Current assets 33 246 32 768
Inventory - 23
Trade and other receivables 11 425 9 800
Taxation receivable 789 477
Cash and cash equivalents 21 032 22 468
Total assets 66 281 61 425
EQUITY AND LIABILITIES
Equity 55 065 53 262
Share capital and premium 2 696 2 696
Treasury shares - (265)
Distributable reserves 52 369 50 831
Non-current liabilities 3 198 2 687
Post retirement medical obligations 394 433
Deferred taxation liability 2 804 2 254
Current liabilities 8 018 5 476
Trade and other payables 7 319 5 476
Income tax payable 699 -
Total equity and liabilities 66 281 61 425
Net asset value per share [cents] 130.9 126.7
Net tangible asset value per share [cents] 118.7 123.0
STATEMENT OF CHANGES IN EQUITY Non- Share-based
Share Share Treasury Distributable Retained payment
capital premium shares reserve earnings reserve Total
R'000 R'000 R'000 R'000 R'000 R'000 R'000
Balance at 30 June 2012 as previously reported 419 1 630 (341) 2 813 42 413 761 47 695
Impact of change in accounting policy
on Other Comprehensive Income 108 (108) -
Total comprehensive income for the year as restated 5 085 10 131 15 216
Profit for the year as previously reported 10 822 10 131
IAS19 (960) (960)
Tax effect (269) (269)
Other Comprehensive Income as previously reported 4 394 4 394
Surplus on revaluation of property 5 848 5 848
Tax effect (1 454) (1 454)
Transfer of post retirement actuarial gains from profit and loss 960 960
Tax effect (269) (269)
Transactions with owners recorded directly in equity
-Transfer from revaluation surplus (45) 45 -
-Sale of treasury shares 182 76 258
-Share issued 3 462 465
-Dividend paid (10 384) (10 384)
Share-based payment transaction 12 12
Balance at 30 June 2013 as restated 422 2 274 (265) 7 961 42 097 773 53 262
Total comprehensive income for the year 1 556 12 600 14 156
Profit for the year 12 600 12 600
Surplus on revaluation of property 2 090 2 090
Tax effect (534) (534)
Transactions with owners recorded directly in equity
-Sale of treasury shares 265 265
-Dividend paid (12,618) (12,618)
Transfer from share-based payments reserve
to retained earnings 773 (773) -
Balance at 30 June 2014 422 2 274 - 9 517 42 852 - 55,065
STATEMENT OF CASH FLOWS
30 June 30 June
2014 2013
[Audited &
All figures in R'000 Reviewed restated]
Profit before income tax 18 530 13 690
Adjusted for: 2 679 3 468
Non cash items 3 729 4 468
Interest received (1 050) (1 000)
Cash generated by trading operations 21 209 17 158
(Decrease) increase in post retirement medical obligations (39) 24
Decrease (increase) in working capital (241) (198)
Cash generated by operations 21 411 16 984
Interest received 1 050 1 000
Income tax paid (5 306) (3 786)
Dividends paid (12 618) (10 384)
Cash inflow from operating activities 4 537 3 814
Cash outflow from investing activities (6 238) (2 412)
Utilised to maintain operations:
Acquisition of property, plant and equipment (1 913) (1 998)
Acquisition of intangible assets (4 379) (472)
Proceeds on disposal of property, plant
and equipment 54 58
Cash inflow from financing activities 265 723
Proceeds from the issue of shares - 465
Proceeds from the sale of treasury shares 265 258
(Decrease) increase in cash and cash equivalents (1 436) 2 125
Cash and cash equivalents at the beginning of the year 22 468 20 343
Cash and cash equivalents at the end of the year 21 032 22 468
Commentary
CompuClearing is South Africa’s market leader in the provision of IT services and products to the Customs Clearing and Freight Forwarding
industry, which it has proudly serviced for the past 30 years.
The Group’s core revenue is transaction-based and directly linked to customer import and export volumes. Other revenue segments comprise
hardware rental and the distribution of a globally leading third party freight management solution, CargoWise One.
Group revenue for the year ended 30 June 2014 grew by 8% to R72,0 million (2013 – R66,7 million). This was driven by an 8% growth in
the software rental segment and a 32% growth in the CargoWise One segment, which although off a small base, continues to make good
progress and gain new clients.
The consistent rate of revenue growth combined with strong cost control produced a pleasing 38% growth in operating profit.
Cash flow for the period remained robust with cash generated by operations up 26% to R21,4 million (2013 – R17,0 million).
CompuClearing marked its 30th anniversary with the commencement of a project designed to entrench and enhance its status as a market
leader. The first phase of the Group’s new flagship product CompuSolutions Diamond (“Diamond”) has been completed and successfully
implemented at a number of sites. Roll out of the first phase will continue in the 2015 financial year. Development of the second
phase of the project is currently underway and is scheduled for release towards the end of the 2015 financial year. Development
costs totalling R2,5 million (2013—RNil) have been capitalised to intangible assets and will be amortised against the related
revenue flows. Initial revenue flows from Diamond commenced in the latter part of this financial year.
Prospects
The CargoWise One segment continues to grow with further implementations expected to go live in the new financial year.
The Group continues to invest in technology that delivers robust systems yielding fast and reliable performance.
Management will seek further market penetration through the rollout of Diamond, intensified marketing efforts and continued
development of new functionality in existing products. Management continue to monitor costs and maintain operating margins at
acceptable levels.
Basis of preparation
These preliminary condensed consolidated financial statements have been prepared in accordance with the recognition and measurement
requirements of International Financial Reporting Standards, the presentation and disclosure requirements of IAS 34 Interim
Financial Reporting, the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee, Financial 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 financial statements, are 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 preliminary condensed consolidated financial statements of the Group have been presented on the historical cost basis and are
presented in Rand rounded to the nearest thousand, which is the functional and presentation currency.
Changes in accounting policies
The Group adopted the new, revised or amended accounting pronouncements as issued by the IASB, which were effective and applicable
to the Group from 1 July 2013.
IFRS 10 Consolidated Financial Statements
IFRS 10 establishes principles for the presentation and preparation of consolidated financial statements when an entity controls one
or more other entities. The Group has revised its accounting policies on the consolidation of subsidiaries and concluded that the
adoption of IFRS 10 did not result in any material change in the consolidation of the Group.
IFRS 13 Fair value measurement
IFRS 13 aims to improve consistency and reduce complexity by providing a precise definition of fair value and a single source of fair
value measurement and disclosure requirements for use across IFRS. IFRS 13 was adopted and applied prospectively and it was assessed
that the adoption did not result in any material impact on the financial results of the Group.
IAS 19 Employee benefits
As a result of IAS 19 (2011), the Group has changed its accounting policy with respect to the basis for determining the income or
expense related to the defined benefit medical obligation.
Under IAS 19 (2011), the Group determines the net interest expense for the period on the net defined benefit liability by applying the
discount rate used to measure the defined benefit obligation at the beginning of the annual period to the net defined benefit liability
at the beginning of the annual period, taking into account any changes in the net defined benefit liability during the period as a
result of contributions and benefit payments. Consequently, the net interest on the net defined benefit liability now comprises:
• interest cost on the defined benefit obligation;
• interest income on plan assets; and
• interest on the effect on the asset ceiling.
There was no significant impact on the liability due to the change in the discount rate.
In addition, remeasurements in the defined benefit plan are now shown in other comprehensive income and not in profit or loss.
The effect on the statement of profit or loss and other comprehensive income is as follows:
30 June 30 June 30 June
2014 2013 2012
[Audited & [Audited &
All figures in R'000 Reviewed restated] restated]
Profit for the period:
Overall decrease in profit for the period - (691) 108
Overall increase in other comprehensive income for the period - 691 (108)
Overall impact on total comprehensive income for the period - - -
The change in accounting policy has had no impact on the statement of financial position. The movement in post retirement
medical obligations no longer has a material impact on the statement of cash flows. The movement previously reported for
30 June 2013 was R1,0 million.
The basic and diluted earnings per share for the year ended 30 June 2013, previously reported as 25.9 cents, has moved
to 24.3 cents.
Headline earnings and diluted headline earnings per share for the year ended 30 June 2013, previously reported as 27.7 cents,
has moved to 26.0 cents.
IAS1 Presentation of items of Other Comprehensive Income (“OCI”)
As a result of amendment to IAS1, the Group has modified the presentation of items of OCI in their statement of comprehensive
income, to present separately items that would be reclassified to profit or loss from those that would never be.
Comparative information has been restated accordingly.
We have assessed the impact of all other new standards that are currently effective and these standards have no material impact
on the results of the Group.
Review report
The preliminary condensed consolidated results of Compu-Clearing Outsourcing Limited for the year ended 30 June 2014 have been
reviewed by the Company’s auditor, KPMG Inc. Their review report dated 10 September 2014 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.
Changes to the board of directors
The following changes in the board of directors took place during the year and up to the date of this report
Name Designation Nature of change Date
C.Efthymiades Financial Director Resignation 11 March 2014
J.Davis Financial Director Appointment 11 March 2014
L. Jacobs Chairman Appointment 25 May 2014
M. Lutrin Non-executive director Resignation 24 July 2014
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 during the year with related parties.
Significant transactions
No material events or circumstances have occurred subsequent to the year end.
Ordinary cash dividend declaration
Notice is hereby given of the declaration of an ordinary cash dividend of 32 cents per share (2013 – 30 cents per share)
(‘the dividend’) for the year ended 30 June 2014. 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 32 cents per ordinary share for shareholders exempt from dividend tax; the net local dividend amount is
27.2 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, 17 October 2014
Trading commences `ex` the dividend Monday, 20 October 2014
Record date Friday, 24 October 2014
Date of payment of the dividend Monday, 27 October 2014
Share certificates may not be dematerialised or rematerialised during the period Monday, 20 October 2014 to Friday,
24 October 2014 both days inclusive.
Annual General Meeting
The Annual General Meeting of CompuClearing will be held at 7 Drome Road, Lyndhurst, Johannesburg, 2192
at 14h00 on Thursday 27 November 2014.
For and on behalf of the Board
Johannesburg L. Jacobs A.Garber
9 September 2014 (Chairman) (Chief Executive)
Executive directors: A. Garber, J. du Preez, M. Acosta-Alarcon, J.Davis
Independent non-executive directors : L. Jacobs, A. Katz, Dr. T. Mogale
Non-executive directors : D. Cleasby, G. McMahon
Prepared by: J Davis B Acc CA(SA) Financial Director
email:jonathan@compuclearing.za.com
9 September 2014
Transfer secretaries: Registered office:
Computershare Investor Services Proprietary Limited 7 Drome Road
Ground Floor Lyndhurst, 2192
70 Marshall Street PO Box 890856
Johannesburg, 2001 Lyndhurst, 2106
www.compclear.co.za
11 September 2014
Sponsor
Sasfin Capital (a division of Sasfin Bank Limited)
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