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Abridged Audited Consolidated Financial Statements
for the period ended 31 March 2016 and notice of AGM
Ansys Limited
("Ansys" or "the company" or "the Group")
(Incorporated in the Republic of South Africa)
(Registration Number: 1987/001222/06)
Share Code: ANS
ISIN: ZAE000097028
Abridged Audited Consolidated Financial Statements
for the period ended 31 March 2016 and notice of annual general meeting
HIGHLIGHTS
- Revenue increased to R474 million from R251.1 million (up 88.8%)
- EBITDA improved to R42.8 million from R19.5 million (up 119.6%)
- Profit after tax improved to R19.97 million from R10 million (up 99.2%)
- Headline Earnings per share increased to 4.86 cents from 4.44 cents (up 9.5%)
- Basic Earnings per share increased to 4.86 cents from 4.09 cent (up 18.8%)
- Tangible Net Asset Value increased to 17.5 cents from 10.4 cents (up 68%)
Abridged consolidated statement of financial position
As at 31 March 2016
31 March 2016 31 March 2016 28 Feb 2015
Notes
(Audited) (Reviewed) (Audited)
R'000 R'000 R'000
Assets
Non-current assets 175 492 172 788 27 091
Property, plant and equipment 1.2 43 053 43 139 1 716
Intangible assets 1.3 120 418 117 652 16 869
Deferred tax asset 1.4 12 021 11 997 8 506
Current assets 249 489 252 550 124 739
Inventories 84 774 84 774 40 533
Trade and other receivables 1.7 121 682 124 743 64 816
Cash and cash equivalents 42 358 42 358 19 390
Other financial assets 675 675 -
Total assets 424 981 425 338 151 830
Equity and liabilities
Equity 201 271 204 104 42 433
Capital, reserves and non-
controlling interest 201 271 204 104 42 433
Non-current liabilities 48 887 36 979 10 496
Instalment sale agreement 1.5 - 3 420 532
Interest bearing borrowings 1.5 32 509 29 089 -
Loans from related parties - - 9 070
Other financial liabilities 1.6 6 372 - -
Deferred tax liability 1.4 10 006 4 470 894
Current liabilities 174 823 184 255 98 901
Instalment sale agreements 1.5 - 1 836 350
Provisions 1 503 1 503 2 280
Interest bearing borrowings 1.5 2 703 867 -
Other financial liabilities 1.6 2 070 8 441 -
Loans from related parties - - 5 998
Trade and other payables 1.8 152 382 155 443 89 938
Current tax payable 1 460 1 460 335
Cash and cash equivalents 14 705 14 705 -
Total equity and liabilities 424 981 425 338 151 830
Number of shares in issue 461 038 321 461 038 321 244 867 056
Net asset value per share (cents) 43.7 44.3 17.3
Tangible net asset value per
share (cents) 17.5 18.8 10.4
Abridged consolidated statement of comprehensive income
For the 13 months ended 31 March 2016
13 months 13 months Year
ended ended ended
31 March 2016 31 March 2016 28 Feb 2015
Notes (Audited) (Reviewed) (Audited)
R'000 R'000 R'000
Revenue 474 066 474 066 251 121
Cost of sales (351 054) (351 054) (187 916)
Gross profit 123 012 123 012 63 205
Other income 703 703 361
Operating costs 1.9 (78 158) (78 263) (48 331)
Other (losses)/gains (2 719) (2 719) 4 270
EBITDA 1.9 42 838 42 733 19 505
Depreciation and amortisation 1.9 (10 759) (6 717) (2 201)
Development cost impairment - - (1 168)
Profit before interest and
taxation 32 079 36 016 16 135
Finance income 1.9 1 419 1 420 34
Finance costs 1.9 (4 996) (4 997) (1 842)
Profit before taxation 1.9 28 502 32 439 14 327
Taxation 1.9 (8 529) (9 631) (4 302)
Profit for the period 1.9 19 974 22 808 10 025
Other comprehensive income,
net of tax - - -
Total comprehensive income
for the period 19 974 22 808 10 025
Attributable to:
Equity holders of the company 20 010 22 844 10 025
Non-controlling interest (36) (36) -
19 974 22 808 10 025
Basic earnings per share (cents) 1.1 4.86 5.55 4.09
Diluted earnings per share
(cents) 1.1 4.86 5.55 4.09
Weighted average number of
shares in issue 1.1 410 797 070 410 797 070 244 867 056
Diluted average number of
shares in issue 1.1 410 797 070 410 797 070 244 867 056
Abridged consolidated statement of cash flows
For the 13 months ended 31 March 2016
13 months 13 months Year
ended ended ended
31 March 2016 31 March 28 Feb
2016 2015
(Audited) (Reviewed) (Audited)
Notes
R'000 R'000 R'000
Cash flows from operating
activities before working capital 1.10 33 195 32 017 17 823
Changes in working capital 1.10 (66 989) (65 840) 4 626
Cash flows from operating
activities 1.10 (33 794) (33 823) 22 449
Cash flows from investing
activities 1.10 914 14 773 (643)
Cash flows from financing
activities 1.10 41 143 27 313 4 798
Cash flows for the period 8 263 8 263 26 604
Cash and cash equivalents at
beginning of period 19 390 19 390 (7 214)
Cash and cash equivalents at
end of the period 27 653 27 653 19 390
Abridged consolidated statement of changes in equity
For the 13 months ended 31 March 2016
Issued Non-
share Accumu- controlling
Notes capital lated losses interest Total
R'000 R'000 R'000 R'000
Balance as at 1 March 2014
(Audited) 73 668 (41 259) - 32 408
Movements during the year
Profit for the year - 10 025 - 10 025
Balance as at 28 February
2015 (Audited) 73 668 (31 234) - 42 433
Movements during the period
Shares issued 26 270 - - 26 270
Business combination 112 203 - 389 112 592
Profit for the period - 22 844 (36) 22 808
Balance as at 31 March 2016
(Reviewed) 212 141 (8 390) 353 204 104
Balance as at 28 February
2015 (Audited) 73 668 (31 234) - 42 433
Movements during the period
Shares issued 26 270 - - 26 270
Business combination 112 203 - 390 112 592
Profit for the period - 20 010 (36) 19 974
Balance as at 31 March 2016
(Audited) 212 141 (11 224) 354 201 271
Abridged consolidated segment report
For the 13 months ended 31 March 2016
13 months 13 months Year
ended ended ended
31 March 2016 31 March 2016 28 Feb 2015
Notes (Audited) (Reviewed) (Audited)
R'000 R'000 R'000
Segment revenue
Rail 137 016 137 016 94 109
Defence and Information 90 145 90 145 9 993
Security***
Mining and Industrial*** 42 548 42 548 2 112
Telecommunications 204 357 204 357 144 907
Total 474 066 474 066 251 121
Segment profit/(loss) *
Rail 15 871 15 871 17 099*
Defence and Information 15 997 19 000 1 562*
Security***
Mining and Industrial*** 4 029 4 963 (2 360)*
Telecommunications 6 130 6 130 7 115*
Sub total 42 027 45 964 23 416
Corporate costs** 1.11 (9 948) (9 948) (7 281)**
Finance costs (4 996) (4 997) (1 842)
Finance income 1 419 1 420 34
Profit before taxation 28 502 32 439 14 327
Financial position
Assets 425 981 425 338 151 830
Rail 98 043 69 497 58 810
Defence and Information 70 700 27 133 1 012
Security***
Mining and Industrial*** 33 207 19 648 1 635
Telecommunications 127 308 111 347 55 881
Intangible assets to be classified 1.11 - 87 731 -
Corporate assets 1.11 95 723 109 982 34 492
Liabilities 223 710 221 234 109 397
Rail 1 263 1 263 -
Defence and Information 23 995 23 995 -
Security***
Mining and Industrial*** - - -
Telecommunications 94 271 94 271 59 563
Corporate liabilities 1.11 104 181 101 705 49 834
(*) In the previous financial year, segment profit in Rail, Defence and Information Security,
Mining and Industrial was reported on a Gross Profit basis, and Telecommunications was
reported on Net Profit (after tax and interests). This year all segment profits are all based
on Net Profit, calculated as Gross Profits for the segments, with the remaining costs in the
entities (less Corporate costs) being apportioned to segments based on Gross Profit margin
percentages.
In the prior year the segment profit/(loss) were stated as follows:
R'000 R'000
Rail R29 778 Defence and R2 721
Information Security
Mining and Industrial (R4 110) Telecommunications R5 936
** Corporate costs include group head office, corporate, marketing and administration costs. In
the prior year this was a balancing figure and was reported as R18.191 million in the
segment report. This year the figure was restated to reflect the same method of calculation
used in the current year's segment report.
*** Management has reviewed the segment report due to the Parsec acquisition.
The segment names have been changed from "Mining" to "Mining & Industrial" as well as
"Defence" to "Defence & Information Security" to include new segments from the Parsec
Holdings acquisition.
NOTES TO THE FINANCIAL INFORMATION
1. Restatement of reviewed results for the 13 months ended 31 March 2016
The reviewed financial results for the 13 month period ended 31 March 2016 which was
released on SENS on 30 June 2016, have been restated due to:
- The finalisation of the Purchase Price Allocation of the Parsec business combination
and the resulting classification of the intangible assets identified, as well as the
resulting amortisation effect for the 10 months that the subsidiary have been part of
the Ansys group. This also affected the deferred taxation for the year.
- Classification of "other financial liabilities" into the non-current and current portions
- The elimination of intercompany debtors and creditors in trade and other payables
and trade and other debtors.
- Other minor reclassifications as specified in the notes below.
The effect of the restatement only applies to the reviewed 31 March 2016 figures, and the
effect on the individual line items are contained in the notes below:
1.1 Headline earnings per share
for the 13 months ended 31 March 2016
13 months 13 months
ended ended
31 March 2016 31 March 2016
(Audited) (Reviewed) Adjustment
R'000 R'000 R'000
Profit attributable to ordinary
shareholders 19 974 22 808 (2 834)
Basic earnings per share
(cents) 4.86 5.55 (0.69)
Diluted basic earnings per
share (cents) 4.86 5.55 (0.69)
Reconciliation of headline
earnings:
Profit attributable to ordinary
shareholders 19 974 22 808 (2 834)
Development cost impairment - - -
Profit on disposal of property,
plant and equipment (21) (17) (4)
Total tax effect of adjustments 6 5 1
Headline earnings
attributable to ordinary
shareholders 19 958 22 796 (2 838)
Headline earnings per share
(cents) 4.86 5.55 (0.69)
Diluted headline earnings per
share (cents) 4.86 5.55 (0.69)
Weighted average number of
shares in issue 410 797 070 410 797 070 -
1.2 Property, plant and equipment
31 March 2016 31 March 2016
(Audited) (Reviewed)
R'000 R'000 R'000
Total property, plant and equipment at book 43 053 43 139 (86)
value
The difference in the book value reported previously is due to the reclassification of computer
software from the Parsec group of R 0.086 million – this was previously classified as property,
plant and equipment and has now been reclassified to Intangibles. Refer note 1.3.
1.3 Intangible assets
31 March 2016 31 March 2016
(Audited) (Reviewed)
R'000 R'000 R'000
Intangible assets 120 418 117 652 2 766
The total difference of R2.766 million can be reconciled as follows:
R'000
Deferred tax classified as part of PPA 6 614
Customer related intangible asset amortisation for 10 months (3 322)
Brand related intangible asset amortisation for 10 months (615)
Computer software reclassified from PPE 86
At the time of reporting the reviewed interim results for the 13 months ended 31 March 2016, the
Purchase Price Allocation of the acquisition of Parsec Holdings was not yet completed, and hence
the amount over and above the net tangible assets identified at that stage was classified as
"intangible assets to be classified" of R87.7 million.
The Purchase Price Allocation has since been completed and the allocation identified two intangible
assets that needed to the classified and amortised, namely:
R'000
Customer related intangible asset 19 930
Brand related intangible asset 3 690
Goodwill 78 013
Deferred tax (6 614)
The customer related intangible asset and brand related intangible assets both have a 5 year
amortisation period, and the resulting amortisation and deferred tax effect on the statement
of comprehensive income for the 13 months period ending 31 March 2016 is as follows:
R'000
Customer related intangible asset 3 322
Brand related intangible asset 615
Deferred tax (1 102)
The net assets acquired and method of settlement was finalised as follows:
R'000
Fair value of the purchase consideration
- Shares issued (1 June 2015 share price of 77 cents) 112 203
- Cash consideration 15 570
- Contingent cash consideration 6 373
Total purchase consideration 134 146
The fair value of assets and liabilities acquired comprise:
Property, plant and equipment 40 832
Intangible assets 7 060
Deferred tax 975
Other financial assets 345
Inventory 15 503
Trade and other receivables 36 322
Cash and cash equivalents 20 781
Current tax receivable 308
Non-controlling interest (389)
Interest bearing borrowings (4 387)
Trade and other payables (78 223)
Total fair value of assets acquired 39 127
Customer related intangible asset 19 930
Brand related intangible asset 3 690
Goodwill 78 013
Deferred tax (6 614)
Total purchase consideration 134 146
1.4 Deferred tax asset and liabilities
31 March 2016 31 March 2016
(Audited) (Reviewed)
R'000 R'000 R'000
Deferred tax assets 12 021 11 997 24
Deferred tax liability 10 006 4 470 5 536
The movement in the deferred tax asset (R 0.024 million) was a reclassification from deferred
tax liabilities.
The movement in deferred tax liabilities (R 5.536 million) can be reconciled as follows:
R'000
Reviewed balance 4 470
Intangible asset deferred tax effect on recognition 6 614
Intangible asset deferred tax effect on amortisation for the period (1 102)
Reclassification to deferred tax assets 24
Audited balance 10 006
1.5 Interest bearing borrowings and instalment sale agreement
31 March 2016 31 March 2016
(Audited) (Reviewed)
R'000 R'000 R'000
Non-current liabilities
Instalment sale agreements - 3 420 (3 420)
Interest bearing borrowings 32 509 29 089 3 420
Current liabilities
Instalment sale agreements - 1 836 (1 836)
Interest bearing borrowings 2 703 867 1 836
On the audited figures on the face of the statement of financial position, the balances previously
shown as "instalment sale agreement" and "interest bearing borrowings" have been combined to
show as one figure on the "interest bearing borrowings" line. The net aggregated amounts are
unchanged.
1.6 Other financial liabilities
31 March 2016 31 March 2016
(Audited) (Reviewed)
R'000 R'000 R'000
Non-current liabilities
Other financial liabilities 6 372 - 6 372
Current liabilities
Other financial liabilities 2 070 8 441 (6 372)
In the reviewed figures the total liability relating to this item was classified as current liabilities.
On the audited figures, this total liability was correctly split into its current and non-current
portions to accurately show the company's long term and short term liability in this regard.
1.7 Trade and other receivables
31 March 2016 31 March 2016
(Audited) (Reviewed)
Name R'000 R'000 R'000
- Trade debtors 102 201 105 261 (3 060)
- Sundry debtors and 1 230 1 231 (1)
deposits
- Retention debtors 407 407 -
- Prepayments 9 239 9 239 -
- Value added tax 3 656 3 656 -
- Project receivables (Work- 4 949 4 949 -
in-progress)
121 682 124 743 (3 061)
The only significant change occurred with an amount of R 3.060 million of intercompany balances
that were eliminated from trade debtors. Also refer to note 1.8 for the same effect on trade
creditors.
1.8 Trade and other payables
31 March 31 March
2016 2016
(Audited) (Reviewed)
Name R'000 R'000 R'000
- Trade creditors 118 451 120 568 (2 117)
- Accrued leave 2 451 2 451 -
- Sundry creditors 12 11 1
- Value added tax 774 775 (1)
- Deferred revenue - - -
- Advance payments 22 570 22 570 -
- Accruals 8 124 9 068 (944)
152 382 155 443 (3 061)
The only significant change occurred with an amount of R 3.060 million of intercompany balances
that were eliminated from trade creditors, as well as a reclassification of R 0.944k between
accruals and trade payables. Also refer to note 1.7 for the same intercompany correction on trade
debtors.
1.9 Statement of comprehensive income
The following changes have affected the line items in the table below:
- Minor rounding of the figures in "finance income" and "finance costs". The net
aggregated amounts are unchanged.
- Minor reclassification between "Depreciation and Amortisation" and "Operating costs"
of R 0.105 million. The net aggregated amounts are unchanged.
- The "depreciation and amortisation" amount, as well as the "profit before interest and
taxation" and "profit before taxation" figures changed with R 3.937 million due to the
amortisation of the intangibles assets identified during the purchase price allocation
(note 1.3) which has now been incorporated in the restated figures.
- The "taxation" figure changed with the tax effect of the amortisation of the intangibles
assets identified during the purchase price allocation.
31 March 2016 31 March 2016
(Audited) (Reviewed)
R'000 R'000 R'000
Operating costs (78 158) (78 263) 105
EBITDA 42 838 42 733 105
Depreciation and amortisation (10 759) (6 717) (4 042)
Profit before interest and
taxation 32 079 36 016 (3 937)
Finance income 1 419 1 420 (1)
Finance costs (4 996) (4 997) 1
Profit before taxation 28 502 32 439 (3 937)
Taxation (8 529) (9 631) 1 102
Profit for the period 19 974 22 808 (2 834)
Total comprehensive income
for the period 19 974 22 808 (2 834)
Attributable to:
Equity holders of the company 20 010 22 844 (2 834)
Non-controlling interest (36) (36) -
19 974 22 808 (2 834)
1.10 Cash flow statement
The following rounding adjustments and reclassifications were made in order to achieve
consistency between the current and prior years. The net aggregated amounts are unchanged.
31 March 31 March
2016 2016
(Audited) (Reviewed)
R'000 R'000 R'000
Cash flows from operating
activities before working capital 33 195 32 017 (914)
Changes in working capital (66 989) (65 840) 943
Cash flows from operating
activities (33 794) (33 823) 29
Cash flows from investing
activities 914 14 773 (13 859)
Cash flows from financing
activities 41 143 27 313 13 830
Cash flows for the period 8 263 8 263 -
Cash and cash equivalents at
beginning of period 19 390 19 390 -
Cash and cash equivalents at
end of the period 27 653 27 653 -
1.11 Segment reporting
On the segment reporting, the line items indicated below have changed due to:
- the amortisation of intangible assets identified during the purchase price allocation.
This had to be apportioned to the relevant segments as well and this affected the
segment profit of the Defence and Information, as well as the Mining and Industrial
segments,
- the movement in assets between "Intangible assets to be classified" and the relevant
segment assets due to the intangible and goodwill identified during the Purchase Price
Allocation, as well as the corresponding movements of the amortisation on the
intangible assets identified.
- the movement in "Corporate liabilities" due to the deferred tax as part of the Purchase
Price Allocation and the corresponding movement in deferred tax due to the
amortisation for the period.
31 March 2016 31 March 2016
Notes (Audited) (Reviewed)
R'000 R'000 R'000
Segment profit
Defence and Information 15 997 19 000 (3 003)
Security
Mining and Industrial 4 029 4 963 (934)
Profit before taxation 28 502 32 439 (3 937)
Financial position
Assets 425 981 425 338 (357)
Rail 98 043 69 497 28 546
Defence and Information 70 700 27 133 43 567
Security***
Mining and Industrial*** 33 207 19 648 13 559
Telecommunications 127 308 111 347 15 961
Intangible assets to be classified - 87 731 (87 731)
Corporate assets 95 723 109 982 (14 259)
Liabilities 223 710 221 234 2 476
Rail 1 263 1 263 -
Defence and Information 23 995 23 995 -
Security***
Mining and Industrial*** - - -
Telecommunications 94 271 94 271 -
Corporate liabilities 104 181 101 705 2 476
STATEMENT OF COMPLIANCE, BASIS OF PREPARATION AND AUDIT REPORT
The summary consolidated financial statements are prepared in accordance with the requirements of
the JSE Limited Listings Requirements for abridged reports, and the requirements of the Companies
Act applicable to summary financial statements. The Listings Requirements require abridged 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 the Financial Reporting Standards Council and to also, as a minimum, contain the
information required by IAS 34 Interim Financial Reporting. The accounting policies applied in the
preparation of the consolidated financial statements from which the summary 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.
Auditor's report
This summarised report is extracted from audited information, but is not itself audited. The annual
financial statements were audited by PricewaterhouseCoopers Inc., who expressed an unmodified
opinion thereon. The audited annual financial statements and the auditor's report thereon are
available for inspection at the company's registered office.
The directors take full responsibility for the preparation of the abridged report and that the
financial information has been correctly extracted from the underlying annual financial statements.
PREPARER
These results were prepared under the supervision of Burt Lamprecht CA (SA), the Chief Financial
Officer.
GOING CONCERN
The directors have reviewed the Group's budget and cash flow forecast for the year to 31 March
2017. On this basis and in light of the Group's current financial position, the directors are satisfied
that the Group will continue to operate for the foreseeable future and have adopted the going
concern basis in preparing these abridged financial results.
EVENTS SUBSEQUENT TO PERIOD END
The directors are not aware of any significant events, other than noted above, that have occurred
between the period ended 31 March 2016 and the date of this report that may materially affect the
results of the Group for the period or its financial position as at 31 March 2016.
NOTICE OF ANNUAL GENERAL MEETING
Notice is hereby given that the annual general meeting of the shareholders of Ansys will be held in
the Ansys boardroom, 140 Bauhinia Street, Highveld Techno Park, Centurion, Gauteng on 3 November 2016
at 10:00 to deal with the business as set out in the notice of annual general meeting in the annual report.
By order of the board
Teddy Daka Burt Lamprecht
Chief Executive Officer Chief Financial Officer
30 September 2016
Directors
CP Bester, T Daka* (CEO); BC Lamprecht* (CFO); Dr. SJ Khoza, N Medupe, NS Mjoli-Mncube;
SP Mzimela, AR van der Watt*
*Executive
Company secretary
M van den Berg
Telephone: +27 12 749 1800
Facsimile: +27 12 665 2767
Website: www.ansys.co.za
Registered office: 140 Bauhinia Street Centurion, Pretoria 0157 (PO Box 95361, Waterkloof,
Pretoria)
Designated adviser: Exchange Sponsors 2008 (Pty) Ltd
Transfer secretaries: Computershare Investor Services (Pty) Ltd
Date: 30/09/2016 07:15:00 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.
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