Wrap Text
Summarised Consolidated Results
for the financial year ended 30 June 2016
Alaris Holdings Limited
Incorporated in the Republic of South Africa
(Registration number 1997/011142/06)
Share code: ALH ISIN: ZAE000201554
(“Alaris” or “the Company” or “the Group”)
SUMMARISED CONSOLIDATED RESULTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2016
GROUP COMMENTARY
Highlights
- Revenue from continued operations increased by 29% from R193.0 million to R248.5 million.
- Profit after tax from continued operations improved from a loss of R1.2 million to a profit of R21.5 million.
- Normalised earnings increased from R20.0 million to R48.8 million.
- Normalised earnings per share increased by 86% from 16.41 cents to 30.60 cents per share.
- Cash generated from operations increased by 358% from R6.8 million to R80.6 million.
- Cash and cash equivalents increased by 27% from R74.4 million to R94.5 million.
- COJOT acquisition concluded and consolidated from 1 May 2016.
- Results include net foreign exchange gains of R12.5 million.
WHAT WE ARE ALL ABOUT
Alaris Holdings Limited is a technology holding company listed on the JSE AltX since July 2008.
The Alaris Group consists of:
Alaris Antennas which designs, manufactures and sells specialised broadband antennas as well as other related radio
frequency products. Its products are used in the communication, frequency spectrum monitoring, test and measurement,
electronic warfare and other specialised markets. Clients are located across the globe, mostly outside of South Africa
(the Americas, Europe and Asia). Its clients are system integrators, frequency spectrum regulators and players in the
homeland security space.
COJOT was founded in 1986 and is located in Espoo, Finland. The company has 30 years of experience in the design,
development and manufacture of innovative antenna products, serving military and public safety markets globally. The
Company develops innovative broadband antennas to improve connectivity, coverage and competitiveness of radio
equipment which is deployed to save lives and protect property.
Aucom which provides end–to–end turnkey solutions for radio and TV broadcasters. It designs, sells, implements and
maintains integrated broadcasting systems. It has specific expertise in digital compression platforms for Digital Terrestrial
Television (DTT), Direct to Home (DTH) and Internet Protocol Television (IPTV), signal distribution, multiscreen as well as over-
the-top (OTT) systems. It is well positioned to assist broadcasters with the migration to digital television and radio services
and has implemented several conversions to date.
RESULTS OVERVIEW
Total profit for the Group was R21.5 million, compared to a loss of R5.1 million in the comparative period. However, the
financial results for both periods include items which are not representative of the performance of the underlying
operations and are shown in the reconciliation below to normalised profit after tax.
Audited Audited
R’000 June 2016 June 2015
Profit for the year 21 491 (5 124)
Contingent consideration asset (1) 22 206 (22 206)
Profit on disposal of discontinued operations - (2 395)
Losses incurred by discontinued operations - 6 279
Legal and consulting costs for acquisitions and disposals (2) 5 116 10 070
Impairment of goodwill - 33 342
Normalised earnings after tax comprising (3) 48 813 19 966
Alaris Antennas 34 032 20 944
COJOT (4) 5 193 -
Aucom 18 828 7 299
Corporate and consolidation (5) (9 240) (8 277)
Weighted average number of ordinary shares in issue 159 539 913 121 697 691
Normalised earnings per ordinary share (cents) 30.60 16.41
(1) Based on Aucom achieving the cumulative three year earn-out target of R38 million the contingent consideration
asset raised in 2015 was reversed at the end of June 2016. Refer to supplementary note 2 for more detail.
(2) Non-recurring legal, consulting and transaction fees amounted to R5.1 million for the year ended 30 June 2016 relating
to the previous potential acquisitions that did not materialise, finalisation of Compart sale and Aucom acquisition
transaction and costs relating to the COJOT acquisition.
(3) Normalised earnings, as determined by the Alaris Group, is calculated by adjusting profit for the reversal of the
contingent consideration asset, goodwill impairment, loss on discontinued operations and profit (net after tax) on the
disposal of Compart and legal and consulting fees for acquisitions and disposals.
(4) COJOT numbers are consolidated for two months. Large orders were delivered during these two months resulting in
high profit margins, which should not be seen as representative of the profitability over a longer period.
(5) Net foreign exchange gains on foreign currency cash balances were accumulated for the COJOT acquisition and
have been recorded as part of this segment. Costs relating to shared services and fees associated with being a listed
company are also included in this segment. Net funding costs, including the interest paid on the PSG preference
shares of R4.8 million are also included in the segment.
BUSINESS OVERVIEW
Considering the slow start to the first half of the financial year, the underlying businesses performed well for the second
half resulting in robust profit growth.
The overall results were boosted by a net foreign exchange gain of R12.5 million (2015: R0.4 million). Foreign currency was
accumulated to pay for the COJOT acquisition. The Group benefitted from a weakening Rand resulting in a net profit
recognised in the year-end financial results. Foreign currency gains and losses are treated as part of normalised earnings
given the nature of the Group and have been consistently treated with the prior year.
The Group’s cash position increased by R20.1 million to R94.5 million despite the COJOT investment being paid for in cash.
Management focused on improving the investment in net working capital during the year which resulted in cash flow
from operating activities improving to R54.2 million (2015: outflow of R0.9 million).
Alaris Antennas
Revenue increased by 33% from R88.4 million to R117.3 million and profit after tax (“PAT”) increased by 62% from R20.9
million to R33.9 million.
The sales cycle consists of the generation of an order book followed by the execution and delivery thereof to the end
customer. The recognition of sales takes place when the order is executed and invoiced to the client. The recognition of
revenue in any given financial year is therefore dependent on the timing of orders executed on, which is characterised
by the size and complexity of the order. The business commenced the financial year with a lower order book value
impacting the half year results. The improvement in the order book as well as the execution and delivery thereof is evident
in the improvement in the second half results.
Alaris Antennas continued to be a leader in product innovation, adding 98 (2015: 155) new products to its portfolio in the
financial year to support future top line growth. The sales capability and product portfolio was also expanded to include
cross selling opportunities with the COJOT team.
The gross margin improved as a result of two primary factors namely: 1) pricing leverage in the supply chain as a result of
increased volumes and 2) export sales owing to a weakening Rand.
Further investment in productive headcount from 87 to 101 was necessary to execute on the order book during the year.
Headcount growth in engineering resources, a customer retention manager as well as starting a new Specialised
Production and Electronics Facility bode well for the future. These expansions support our strategy to deliver high quality
products to our customers within the committed timelines.
COJOT
All conditions precedent to the Acquisition as per the agreement were fulfilled and the results of COJOT were included in
the Group results from 1 May 2016. Revenue of R14.8 million and PAT of R5.2 million was consolidated for the two months
to year end. These two months contributed a significantly higher profit margin than anticipated owing to a few larger
orders being delivered in these months. These profit margins are not indicative of the historical average margins therefore
should not be reflective of the longer term margins of the business.
The COJOT product portfolio integration on a Group level contributed 124 products to the portfolio to be included in cross
selling opportunities going forward.
Aucom
Despite a slow first half, Aucom managed to deliver healthy growth on last year’s results with revenue increasing by 11%
from R104.6 million to R116.4 million and PAT increasing by 155% from R7.3 million to R18.6 million. The net profit margin
increased from 7% to 16% mainly due to higher commissions received and an increase from R3.9 million to R9.8 million per
annum for recurring monthly service level charges which have a lower cost base.
A significant contract in the Seychelles was secured in the first half of the year and a large portion of the deal was
completed by the end of June 2016.
Corporate and consolidation
In addition to the shared services costs and fees associated with being a listed company, this segment carried several
additional items:
- Legal and consulting fees of R2.6 million were incurred in relation to the potential acquisitions that did not
materialize, finalization of prior transactions like Aucom and Compart and settlements reached in respect of these
cases.
- Legal, consulting fees and transfer taxes of R2.5 million incurred as part of the finalisation of the COJOT acquisition.
- The contingent consideration asset value of R22.2 million raised in the prior year was reversed through the profit
and loss based on the Aucom earnings of R18.6 million for the current year. The cumulative three year
performance of R38.5 million versus the target of R38 million resulted in no shares being recallable. Refer to
supplementary note 2 for further details.
- In line with the international acquisition strategy of the Group, foreign currency was accumulated to settle the
purchase price of future acquisitions. As a result of the deterioration of the Rand versus the Dollar and Euro, net
foreign exchange gains of R9.1 million were recognised in this segment.
Discontinued Operations
The Compart businesses were consolidated up to 31 December 2014 and are therefore included in the comparative
numbers. These operations recorded a loss of R3.9 million for the year ended June 2015. Refer to the 30 June 2015 year
end results for details of the disposal previously disclosed.
PROSPECTS
The Group remains focused on achieving growth (organic and acquisitive) and improving profitability in the medium
term.
Alaris Antennas
The business has grown turnover and profits consistently since its establishment in 2005. Organic growth is stimulated and
achieved through understanding customers’ needs and adding new innovative products to the portfolio. Further
opportunities for growth are achieved by adding new system houses as clients, distributors and agents. We are also
diversifying territories and entering into new market segments where the Company’s core competencies find application.
Management believes the business has significant potential for organic growth and acquisitive growth where there is a
complimentary opportunity in markets and products.
Our products are designed locally by our team of engineers and manufactured at our premises in Centurion. This makes
us competitive in the global market, resulting in approximately 80% of our revenue from exports.
COJOT
COJOT is a customer intimate organisation where new product development is centered around the customer’s needs.
Sales are generated by the company’s sales team with the help of its channel partners. By taking cognisance of our
customers’ needs and adjusting our product features and operations accordingly we stay competitive. The organisation’s
efficiency is complemented by the partnership with contract manufacturers and a professional service provider network
to enable sustainable growth.
Aucom
The business continues to bid for significant Digital Terrestrial Television and Transmission infrastructure opportunities across
the African continent and is well positioned to obtain these opportunities. There is an upswing in market activity from the
urgency to comply with deadlines set by the International Telecommunication Union.
Further increased returns are expected on the capital investment made this year on the service lab facility. The income
stream from this facility has steadily increased in these past few months.
The Group
A significant portion of the Group’s performance is associated with long sales cycles and three to six month delivery
timeframes. In order to mitigate this, the Group continues to expand its regional and product diversity to improve our
proximity to our clients and meet their needs.
The current focus is to ensure the profitable organic growth of the Alaris Antennas, COJOT and Aucom businesses and
further improve working capital management of the Group.
Post-merger integration processes to capitalise on synergies between Alaris and COJOT, as well as cross selling
opportunities, will remain a focus area in the next twelve months. The two businesses are complimentary and the
combined operations will allow existing customers to receive an improved service as well as an expanded product
portfolio through cross-selling. With both companies historically strongly focused on research and development and both
holding exploitable patented technologies, it is expected that the fostering of design innovation and continued pursuit
of novel technologies will be enhanced through the sharing of ideas and talent in both organisations. As such, the design
and development of new products resulting from the combined skill sets of the two companies will provide more
competitive features enabling increased performance for end users.
International expansion is an important part of the Group’s global strategy and management will remain on the lookout
for further opportunities to increase the global footprint.
SUMMARISED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
Audited Audited
R’000 June 2016 June 2015
Continuing Operations
Revenue 248 499 193 034
Cost of sales (111 395) (103 300)
Gross profit 137 104 89 734
Other income (1) 18 131 898
Operating expenses (87 678) (72 880)
Trading operating profit (2) 67 557 17 752
Finance income 1 532 3 312
Contingent consideration asset adjustment (22 206) 22 206
Impairment of goodwill - (33 342)
Finance costs (5 211) (4 851)
Profit before taxation 41 672 5 077
Taxation (20 181) (6 317)
Profit / (loss) from continuing operations 21 491 (1 240)
Discontinued Operations
Revenue - 25 189
Cost of sales - (14 871)
Gross profit - 10 318
Operating expenses - (17 639)
Trading operating loss - (7 321)
Finance income - 101
Profit on disposal of discontinued operations - 2 395
Finance costs - -
Loss before taxation - (4 825)
Taxation - 941
Loss from discontinued operations - (3 884)
Profit / (loss) for the year 21 491 (5 124)
Other comprehensive income net of tax:
Items that may be reclassified subsequently to profit or loss:
- Foreign currency translation reserve (299) -
Total comprehensive income 21 192 (5 124)
Audited Audited
R’000 June 2016 June 2015
Weighted average number of ordinary shares in issue 159 539 913 121 697 691
Weighted average number of diluted ordinary shares in issue 179 939 913 168 826 622
Total operations - Basic earnings per ordinary share (cents) 13.47 (2.91)
Total operations - Diluted earnings per ordinary share (cents) 14.59 (13.52)
Total operations - Headline earnings per ordinary share (cents) 13.47 15.22
Total operations - Diluted headline earnings per ordinary share (cents) 14.59 5.39
Total operations - Normalised earnings per ordinary share (cents) 30.60 16.41
Continuing operations - Basic earnings per ordinary share (cents) 13.47 (0.70)
Continuing operations - Diluted earnings per ordinary share (cents) 14.59 (11.22)
Continuing operations - Headline earnings per ordinary share (cents) 13.47 18.23
Continuing operations - Diluted headline earnings per ordinary share(cents) 14.59 8.53
Continuing operations - Normalised earnings per ordinary share (cents) 30.60 16.41
(1) In line with the international acquisition strategy of the Group, foreign currency was accumulated to settle the
purchase price of future acquisitions. As a result of the deterioration of the Rand versus the Dollar and Euro, significant
net foreign exchange profits and Aucom over performance provision reversal were recognised and reflected in other
income.
(2) Trading operating profit comprises sale of goods, rendering of services and directly attributable costs, but excludes
investment income, fair value adjustments, impairment of goodwill and finance costs.
SUMMARISED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Audited Audited
R’000 June 2016 June 2015
Assets
Non-Current Assets
Plant and equipment 7 904 6 221
Goodwill 47 101 22 115
Intangible assets 17 486 13 408
Deferred tax assets 5 420 1 541
Contingent consideration asset (1) - 22 206
Other financial assets - 2 647
77 911 68 138
Current Assets
Inventories 18 040 9 236
Other financial assets 6 969 8 165
Current tax receivable 1 617 1 665
Trade and other receivables 78 819 43 428
Cash and cash equivalents 94 481 74 386
199 926 136 880
Total Assets 277 837 205 018
Equity and Liabilities
Equity
Equity attributable to owners of the Company
Share capital and preference shares 897 897
Share premium 226 369 231 265
Share-based payment reserve 2 430 406
FCTR (2) (299) -
Accumulated loss (95 751) (117 242)
Total equity 133 646 115 326
Liabilities
Non-Current Liabilities
Preference share liability 50 111 50 111
Loans and borrowings 581 -
Other financial liabilities - 911
Deferred tax liabilities 2 941 2 146
53 633 53 168
Current Liabilities
Loans and borrowings 153 96
Trade and other payables 81 348 29 906
Current tax payable 3 264 1 138
Provisions 3 576 1 741
Other financial liabilities 2 217 3 643
90 558 36 524
Total Liabilities 144 191 89 692
Total Equity and Liabilities 277 837 205 018
Number of ordinary shares legally in issue, less treasury shares 158 116 771 160 241 950
Net asset value per ordinary share (cents) (3) 84.52 71.97
Net tangible asset value per ordinary share (cents) (3) 43.68 35.94
(1) Refer to supplementary note 2.
(2) Foreign currency translation reserve (“FCTR”) relates to the translation of functional currency of foreign subsidiaries to
the presentation currency of the Group.
(3) Net asset value is calculated by dividing total equity, by the number of ordinary shares in issue, being number of
shares legally in issue less treasury shares. Net tangible asset value is calculated by dividing total equity less contingent
consideration asset less goodwill and intangible assets by the same number of ordinary shares legally in issue.
SUMMARISED CONSOLIDATED STATEMENT OF CASH FLOWS
Audited Audited
R’000 June 2016 June 2015
Profit before taxation 41 672 252
Adjusted for non-cash items 36 240 21 167
Working capital changes 2 698 (14 663)
Cash generated from operations 80 610 6 756
Net finance cost (3 679) (1 438)
Taxation paid (22 754) (6 245)
Net cash from / (used in) operating activities 54 177 (927)
Net cash used in investing activities (1) (35 819) (10 242)
Net cash from / (used in) financing activities 638 (2 469)
Net increase / (decrease) in cash and cash equivalents for the year 18 996 (13 638)
Cash disposed as part of business disposal - 2 332
Cash and cash equivalents at the beginning of the year 74 386 85 821
Effect of exchange rate movement on cash balances 1 099 (129)
Total cash and cash equivalents at end of the year 94 481 74 386
(1) Refer supplementary note 3.
SUMMARISED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Share capital Share Share FCTR Accumulated Total
and premium based loss equity
preference payment
R’000 shares reserve
Balance at 1 July 2014 898 231 151 123 - (76 279) 155 893
Total comprehensive income - - - - (5 124) (5 124)
for the year
Shares repurchased - (1) - - - (35 839) (35 840)
Compart
Share-based payment - new - - 397 - - 397
issue of options
Share options exercised - 114 (114) - - -
Balance at 30 June 2015 897 231 265 406 - (117 242) 115 326
Total comprehensive income
for the year: - - - (299) 21 491 21 192
- Profit for the year - - - - 21 491 21 491
- Foreign currency translation - - - (299) - (299)
reserve
Shares repurchased - - (904) - - - (904)
Poynting Empowerment Trust
Share-based payment - - 2 024 - - 2 024
charge for existing options
Movement in treasury shares * (3 992) - - - (3 992)
Balance at 30 June 2016 897 226 369 2 430 (299) (95 751) (133 646)
* Nominal amount – amount smaller than R1 000.
SEGMENTAL ANALYSIS
Audited Audited
R’000 June 2016 June 2015
Continuing Operations
Segmental revenue
Alaris Antennas 117 294 88 394
COJOT (1) 14 822 -
Aucom 116 383 104 640
248 499 193 034
Operating earnings before interest, tax, depreciation and amortisation (2)
Alaris Antennas 51 852 30 885
COJOT (1) 6 822 -
Aucom 25 733 8 523
Corporate and consolidation (9 058) (12 546)
75 349 26 862
Profit / (loss) for the year
Alaris Antennas 33 910 20 944
COJOT (1) 5 193 -
Aucom 18 606 7 299
Corporate and consolidation (36 218) (29 483)
21 491 (1 240)
Normalised earnings profit / (loss) after tax for the year (3)
Alaris Antennas 34 032 20 944
COJOT (1) 5 193 -
Aucom 18 828 7 299
Corporate and consolidation (9 240) (8 277)
48 813 19 966
Discontinued Operations
Segmental revenue
Compart - 25 189
Operating earnings before interest, tax, depreciation and amortization (2)
Compart - (1 855)
Profit / (loss) for the year
Compart - (3 884)
Continuing Operations
Trading operating profit 67 557 17 752
Depreciation and amortisation 7 790 9 110
Operating earnings before interest, tax, depreciation and amortisation 75 347 26 862
Segment assets
Alaris Antennas 74 550 93 722
COJOT 48 764 -
Aucom 84 060 38 939
Corporate and consolidation 70 463 72 357
277 837 205 018
Segment liabilities
Alaris Antennas (33 590) (13 721)
COJOT (13 099) -
Aucom (50 448) (13 933)
Corporate and consolidation (47 054) (62 038)
(144 191) (89 692)
(1) COJOT consolidated into Group results from 1 May 2016.
(2) Operating EBITDA is trading operating profit per Statement of Profit and Loss excluding depreciation and
amortisation.
(3) The foreign exchange gain reflected in other income on the Statement of Profit and Loss was not adjusted for in
normalised earnings in line with the definition thereof.
SUPPLEMENTARY NOTES
TO THE SUMMARISED CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2016
1. RECONCILIATION OF PROFIT / (LOSS) TO HEADLINE EARNINGS
Total Operations Continuing Operations
Audited Audited Audited Audited
June 2016 June 2015 June 2016 June 2015
R’000
Profit / (loss) from operations for the year 21 491 (5 124) 21 491 (1 240)
Impairment of goodwill - 33 342 - 33 342
Profit on disposal of discontinued operations - (2 395) - -
Tax on profit on disposal of discontinued operations - 976 - -
Earnings attributable to shares subject to recall - (8 278) - (9 917)
Headline earnings attributable to ordinary 21 491 18 521 21 491 22 185
shareholders
2. FINANCIAL INSTRUMENTS CARRIED AT FAIR VALUE
The fair value of a financial instrument is the price that would be received for the sale of an asset or paid for the transfer
of a Iiability in an orderly transaction between market participants at the measurement date.
The existence of published price quotations in an active market is the best evidence of fair value and, where they exist,
they are used to measure the financial asset or financial liability. A market is considered to be active if transactions occur
with sufficient volume and frequency to provide pricing information on an ongoing basis. Financial instruments fair valued
using quoted prices would generally be classified as level 1 in terms of the fair-value hierarchy.
The carrying values of other financial assets and liabilities, trade and other receivables and payables and loans and
borrowings approximate their fair value. The Group measures currency futures at fair value using inputs as described in
level 1 of the fair value hierarchy.
Contingent consideration
Of the 66 million shares issued, 49.5 million shares were held as guarantee, to be released to the sellers as profit warranties
are met for the years ended 30 June 2014, 30 June 2015 and 30 June 2016, or recalled if warranties are not met in
aggregate.
In the 2015 financial year a contingent consideration asset of R22.2 million was recognised, equal to the estimated claw-
back of the original purchase price paid to the Aucom vendors should profit warranties not be achieved. The contingent
consideration asset was classified as a level 1 instrument.
Aucom achieved cumulative earnings of R38.5 million over the three year period putting them slightly ahead of the earn
out target of R38 million as stated in the sale of share agreement signed in 2014. Therefore, no shares are recallable as at
30 June 2016 and the contingent consideration asset of R22.2 million was adjusted through profit and loss.
3. BUSINESS COMBINATION
As announced on SENS the Group concluded an agreement to acquire 100% of the issued share capital of COJOT OY
and any and all shareholder loan claims that the Sellers have against the company (“the Acquisition”). All conditions
precedent to the Acquisition as per the agreement were fulfilled and the results of COJOT were included in the Group
results from 1 May 2016.
Identifiable net assets and liabilities acquired consist of: Recognised Fair value Carrying
R’000 values adjustments amount
Plant and equipment 1 094 - 1 094
Intangible assets 17 7 027 7 044
Inventories 133 - 133
Trade and other receivables 3 701 - 3 701
Cash and Cash equivalents 35 207 - 35 207
Deferred tax - (1 405) (1 405)
Current tax liability (278) - (278)
Trade and other payables (9 207) - (9 207)
Provisions (261) - (261)
Total identifiable net assets 30 406 5 622 36 028
Goodwill 24 775
Total purchase consideration 60 803
Less: cash acquired (35 207)
Net cash outflow 25 596
Full year effect of COJOT Revenue Profit after tax
Reported 248 499 21 491
Less: COJOT post acquisition (14 822) (5 193)
233 677 16 298
Estimated impact of business combination (if acquired 1 July 2015) 45 900 6 900
279 577 23 198
4. STATEMENT OF COMPLIANCE
Alaris Holdings Limited is a South African registered company. This summarised consolidated financial statements comprise
of the Company and its subsidiaries.
The summarised consolidated financial statements are prepared in accordance with the requirements of the JSE Limited
Listings Requirements for preliminary reports, and the requirements of the Companies Act applicable to summarised
financial statements. The Listings Requirements require preliminary reports to be prepared in accordance with the
framework concepts and the measurement and recognition requirements of International Financial Reporting Standards
(IFRS) and the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee and Financial
Pronouncements as issued by Financial Reporting Standards Council and to also, as a minimum, contain the information
required by IAS 34 Interim Financial Reporting.
BASIS OF PREPARATION
The accounting policies applied in the preparation of the consolidated financial statements from which the summarised
consolidated financial statements were derived are in terms of International Financial Reporting Standards and are
consistent with those accounting policies applied in the preparation of the previous consolidated annual financial
statements. The following standards and interpretations were in issue but not yet effective:
- IAS 16 and IAS 38 – Clarification of acceptable methods of depreciation and amortisation
- IFRS 15 – Revenue from contracts with customers
- IFRS 16 - Leases
- IFRS 9 – Financial instruments
- Improvement project to IFRSs 2012-2014 cycle:
o IFRS 5 – Non-current assets held for sale and discontinued operations: changes in method of disposal
o IFRS 7 – Financial instrument disclosure
o IAS 19 – Employee benefits
o IAS 34 – Interim financial reporting
- IFRS10, IFRS12 and IAS 28 – Investment entities: applying the consolidation exception
- IAS 1 – Disclosure initiative
Management is in the process of reviewing the impact of the above standards and interpretations in issue not yet
effective.
The summarised consolidated results have been presented on the historical cost basis except for the contingent
consideration asset and currency futures, which are fair valued. These results are presented in Rand, rounded to the
nearest thousand, which is the functional currency of Alaris and the Group presentation currency. These summarised
consolidated results incorporate the financial statements of the company, its subsidiaries and entities that, in substance,
are controlled by the Group. Results of subsidiaries are included from the effective date of acquisition up to the effective
date of disposal. All significant transactions and balances between Group entities are eliminated on consolidation.
The summarised consolidated financial statements for the year ended 30 June 2016 have been audited by KPMG Inc.,
who expressed an unmodified opinion thereon. The auditor also expressed an unmodified opinion on the annual financial
statements from which these summarised consolidated financial statements were derived.
A copy of the auditor’s report on the summarised consolidated financial statements and of the auditor’s report on the
annual consolidated financial statements are available for inspection at the company’s registered office, together with
the financial statements identified in the respective auditor’s reports.
The auditor’s report does not necessarily report on all of the information contained in the announcement. Shareholders
are therefore advised that in order to obtain a full understanding of the nature of the auditors’ engagement, they should
obtain a copy of the auditor’s report together with the accompanying financial information from the issuer’s registered
office.
The summarised consolidated financial statements were prepared under the supervision of the Group Financial Director,
Gisela Heyman CA(SA).
5. SUBSEQUENT EVENTS
Other than mentioned in this report, there were no material subsequent events that required disclosure.
6. GOING CONCERN
The directors have made an assessment of the ability of the Group and its subsidiaries to continue as going concerns and
have no reason to believe that the businesses will not be going concerns in the year ahead.
7. DIRECTORATE
Mr Andries Mellet was appointed as alternate non-executive director on 8 October 2015. No further changes to the board
took place during the period under review, up to and including the date of this report.
By order of the board
Jürgen Dresel Gisela Heyman
Group Chief Executive Officer Group Financial Director
12 September 2016
Johannesburg
ALARIS HOLDINGS LIMITED
(incorporated in the Republic of South Africa)
www.alarisholdings.co.za
Directors
Coen Bester*^ (Chairman), Nico de Waal^, Jürgen Dresel # (CEO), Villiers Joubert, Richard Willis*^, Andries Mellet^@,
Gisela Heyman (Financial Director)
*Independent ^Non-executive #German @Alternate
Business address and registered office
1 Travertine Avenue, N1 Business Park, Old Johannesburg Road, Centurion, 0157
(Private Bag X4, The Reeds, Pretoria, 0166)
Designated Adviser
Merchantec Capital
Registration Number 2008/027362/07
2nd Floor, North Block, Hyde Park Office Tower, Corner 6th Rd and Jan Smuts Ave, Hyde Park, 2196
(PO Box 41480, Craighall, 2024)
Company Secretary
Merchantec Proprietary Limited
Transfer Secretaries
Computershare Investor Services Proprietary Limited
Registration Number 2004/003647/07
Ground Floor, 70 Marshall Street, Johannesburg, 2001
(PO Box 61051, Marshalltown, 2107)
Auditors
KPMG Inc.
Bankers
Standard Bank
PRINCIPAL SUBSIDIARIES
Alaris Antennas Proprietary Limited
Registration Number 2013/048197/07
Alaris Antennas Division
Managing Director: Jürgen Dresel
1 Travertine Avenue, N1 Business Park, Old Johannesburg Road, Centurion, 0157
Tel +27 (0)11 034 5300
COJOT Oy
Registration Number 0620465-3
COJOT Division
Managing Director: Samu Lentonen
PL 59, 02271 Espoo, Finland
Tel +358 (0) 9 452 2334
African Union Communications Proprietary Limited
Registration Number 1999/000409/07
Aucom Division
Managing Director: Villiers Joubert
394 Cliff Avenue, Waterkloof Ridge X2, Pretoria
Tel +27 (0)12 001 8670
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