Wrap Text
Unaudited Condensed Consolidated Results
for the Six Months Ended 31 December 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”)
UNAUDITED CONDENSED CONSOLIDATED RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2016
GROUP COMMENTARY
Highlights
- Revenue from continuing operations increased by 135% from R36.1 million to R84.7million.
- Profit after tax from continuing operations increased by 378% from R2.7 million to R12.9 million.
- Normalised earnings from continuing operations increased by 40% from R9.3 million to R13.0 million.
- COJOT business acquired on 1 May 2016 contributed profit after tax of R2.4 million for the six months.
- Aucom business classified as held for sale.
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 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 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. In accordance with the SENS announcement on 23 December 2016, the Group
is in the process of disposing of this subsidiary and therefore it is reflected as a discontinued operation. Refer to
supplementary note 3 for more information.
RESULTS OVERVIEW
The financial results for the periods include items which are not representative of the performance of the underlying
operations and are shown in the reconciliation to normalised profit after tax below.
Unaudited Re-presented
six months ended year ended
December December June
R’000 2016 2015 (4) 2016 (4)
Continuing Operations
Profit for the period 12 942 2 698 4 390
Legal and consulting costs for acquisitions and disposals (1) 25 2 679 4 894
Contingent consideration asset - 3 954 22 206
Normalised earnings after tax comprising (2) 12 967 9 331 31 490
Alaris Antennas 20 845 5 967 34 032
COJOT 2 433 - 5 193
Corporate and consolidation (3) (10 311) 3 364 (7 735)
Weighted average number of ordinary shares in issue 156 615 401 110 510 297 159 539 913
Normalised earnings per ordinary share (cents) – Continuing 8.28 8.45 19.74
Operations
Discontinued Operations (4)
(Loss) / profit for the period (3 483) (1 056) 17 101
Legal and consulting costs for acquisitions and disposals (1) - - 222
Normalised earnings after tax comprising (3) (3 483) (1 056) 17 323
Aucom (2 731) (304) 18 828
Corporate and consolidation (4) (752) (752) (1 505)
Weighted average number of ordinary shares in issue 156 615 401 110 510 297 159 539 913
Normalised earnings per ordinary share (cents) – Discontinued (2.22) (0.96) 10.86
Operations
(1) Non-recurring legal, consulting and transaction fees relate to the previous potential acquisitions that did not
materialise, finalisation of Compart sale and Aucom acquisition, recent Aucom disposal transaction and costs relating
to the COJOT acquisition.
(2) Normalised earnings, as determined by the Group, is calculated by adjusting profit for the reversal of the contingent
consideration asset and legal and consulting fees for acquisitions and disposals.
(3) Costs relating to shared services, fees associated with being a listed company, net foreign exchange gains/losses
and costs of the incentive share options are included in this segment. Net funding costs, including the interest paid
on the PSG preference shares are also included in the segment.
(4) The Group is in the process of disposing its Aucom business and has classified Aucom as a discontinued operation in
accordance with IFRS5: Non-current Assets held for sale and Discontinued Operations. Comparative numbers were
represented to reflect the discontinued operations of Aucom.
BUSINESS OVERVIEW
The continuing operations performed well in the first half of the period resulting in robust profit growth compared to a slow
start in the comparative period.
The overall results were also negatively impacted by a net foreign exchange loss of R2.9 million compared to net gains of
R15 million in the comparitve period. Foreign currency gains and losses are treated as part of normalised earnings given
the global nature of the Group’s operations and have been consistently treated in line with the prior year. Despite this
normalised earnings from continuing operations was up 40%.
The Group’s cash postion decreased by R35.4 million to R64.2 million. A cash outflow from operating activities of R6.7
million (Dec 2015: R17.6 million inflow) relates to working capital timing. Trade and other payables relating to high value
projects invoiced close to the 30 June 2016 year end were paid in the period reported on.
Alaris Antennas
Revenue increased by 86% from R36.1 million to R67.3 million, while profit after tax (“PAT”) increased by 249% from R6.0
million to R20.8 million.
The year started off with a healthier confirmed order book, compared to last year, resulting in a better spread of workload
and therefore improving efficiency in production recoveries against invoicing and improved margins.
Alaris Antennas continued to be a leader in product innovation, adding 44 (Dec 2015: 50) new products to its portfolio in
the six months to support future top line growth.
Although the headcount remained stable at 101 compared to the June 2016 year end, the Group has employed highly
skilled staff in specialised areas to support the Company’s client-centric approach. There has been expansion in
engineering resources, finance and supply chain management. This supports our strategy to deliver high quality products
to our customers within the committed timelines.
COJOT
The integration of the COJOT business into the Group is progressing well. There are already roughly R1 million intersegment
sales generated in the Group by cross selling the products of the two underlying businesses into the customerbase of both
companies.
COJOT contributed revenue of R17.5 million and a profit after tax of R2.4 million. A significant expected order out of
Europe is delayed and we hope to see this order coming though in the second half of FY2017.
The results of COJOT were included in the full year to June 2016 for 2 months (from 1 May 2016). As mentioned in the
previous results, large orders were delivered during these two months in the prior financial year resulting in high profit
margins, which should not be seen as representative of the profitability over a longer period.
Corporate and consolidation
In addition to the shared services costs, cost of incentive share options and fees associated with being a listed company,
this segment houses the centralised treasury function, where foreign currency hedging is managed. Therefore foreign
exchange gains / losses and the interest paid on the PSG preference shares are also included in this segment.
Discontinued Operations
In line with the Group’s strategy to focus on development, manufacturing and selling of Radio Frequency (RF) products
to global niche markets, the board of directors of Alaris (“Board”) has decided to sell its Aucom subsidiary to the
management of Aucom.
The Transaction has been agreed in principle between the parties and will be subject to the fulfilment of various Conditions
Precedent as per the announcement released on SENS on 23 December 2016. In accordance with IFRS 5, the business is
disclosed as a discontinued operation and will continue to be consolidated until the effective date of the disposal
transaction.
Aucom managed to deliver healthy growth on last year’s revenue with an increase of 125% from R17.8 million to R40.1
million. Delays in the recovery of long outstanding trade receivables balances have resulted in a doubtful debt provision
of R8.9 million being raised. Management continues to focus on collecting long outstanding trade receivables balances
from the respective customers.
PROSPECTS
The Group remains focused on achieving sustainable growth (organic and acquisitive) and improving profitability in the
short 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 distributors, agents and new system houses as clients. We are also
diversifying territories and entering new market segments where the Company’s core competencies find application.
Management believes the business has significant potential for organic growth, as well as 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
distinguishes the business from value added resellers and makes us competitive in the global market, resulting in
approximately 80% of our revenue from exports.
Projects to improve our operational scalability are under way. This is to ensure that we remain agile and are able to adapt
to our clients’ needs as the business grows, while still delivering excellent quality on time.
Orders are obtained from around the world, supporting our strategy of global growth and diversifying our product
portfolio. The outlook for this segment remains positive as we continue to nurture new opportunities in multiple
geographies.
COJOT
COJOT is a customer intimate organisation where new product development is centered around customer 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 partnerships with contract manufacturers and a professional service provider network to enable
sustainable growth.
COJOT launched a new product range called MIDAS. This product range is a set of antennas (vehicle, manpack and
handheld) which automatically adapts to the radios it is connected to. Typically, it provides improved range and better
link quality. About €0.7 million was invested into this product range over the past 6 years. Samples are currently placed
with several radio manfucturers world wide. The success of this product could significantly boost growth of the COJOT
business over time.
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 its
proximity to clients, as well as meet clients’ needs.
The current focus is to finalise the Aucom disposal and ensure profitable organic growth of both Alaris Antennas and
COJOT.
Post-merger integration processes to capitalise on synergies between Alaris and COJOT, as well as cross selling
opportunities, will remain a priority in the next six 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. Both
companies are strongly focused on research and development and both hold exploitable patented technologies. We
expect that the fostering of design innovation and the 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 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.
CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
Unaudited six months ended Re-presented
year ended
December December June
R’000 2016 2015 (2) 2016 (2)
Continuing Operations
Revenue 84 723 36 126 132 116
Cost of sales (22 457) (11 551) (35 057)
Gross profit 62 266 24 575 97 059
Other income 130 11 754 14 628
Operating expenses (41 387) (23 696) (67 396)
Trading operating profit (1) 21 009 12 633 44 291
Finance income 307 575 836
Contingent consideration asset adjustment - (3 954) (22 206)
Finance costs (2 516) (2 329) (4 953)
Profit before taxation 18 800 6 925 17 968
Taxation (5 858) (4 227) (13 578)
Profit from continuing operations 12 942 2 698 4 390
Discontinued Operations (2)
Revenue 40 075 17 769 116 383
Cost of sales (25 792) (11 510) (76 338)
Gross profit 14 283 6 259 40 045
Other income 62 3 571 3 503
Operating expenses (19 480) (11 661) (20 282)
Trading operating (loss) / profit (5 135) (1 831) 23 266
Finance income 307 361 696
Finance costs (11) (12) (258)
(Loss) / profit before taxation (4 839) (1 482) 23 704
Taxation 1 356 426 (6 603)
(Loss) / profit from discontinued operations (3 483) (1 056) 17 101
Profit for the period 9 459 1 642 21 491
Other comprehensive income net of tax:
Items that may be reclassified subsequently to profit or loss:
- Foreign currency translation reserve (5 886) - (299)
Total comprehensive income 3 573 1 642 21 192
(1) 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.
(2) Aucom was classified as a discontinued operation and comparative numbers have been represented accordingly.
Refer to supplementary note 3.
Unaudited six months Re-presented
ended year ended
December December June
R’000 2016 2015 2016
Weighted average number of ordinary shares in issue 156 615 401 110 510 297 159 539 913
Weighted average number of diluted ordinary shares in issue 177 110 357 156 489 936 179 939 913
Basic- and headline earnings per ordinary share (cents)
Continuing operations 8.26 1.69 2.75
Discontinued operations (2.22) (0.66) 10.72
Total 6.04 1.03 13.47
Diluted- and headline earnings per ordinary share (cents)
Continuing operations 8.72 3.21 5.09
Discontinued operations (1.97) 1.84 9.50
Total 6.75 5.05 14.59
Normalised earnings per ordinary share (cents)
Continuing operations 8.28 8.45 19.74
Discontinued operations (2.22) (0.96) 10.86
Total 6.06 7.49 30.60
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Unaudited six months ended Re-presented
year ended
December December June
R’000 2016 2015 2016
Assets
Non-Current Assets
Plant and equipment 5 710 6 956 7 904
Goodwill 24 150 22 115 47 101
Intangible assets 12 193 11 465 17 486
Deferred tax assets 3 495 7 468 5 420
45 548 48 004 77 911
Current Assets
Inventories 13 749 14 030 18 040
Other financial assets - 8 955 6 969
Current tax receivable 272 179 1 617
Assets classified as held-for-sale (1) 71 755 - -
Contingent consideration asset - 18 251 -
Trade and other receivables 38 231 51 176 78 819
Cash and cash equivalents 64 215 99 582 94 481
188 222 192 173 199 926
Total Assets 233 770 240 177 277 837
Equity and Liabilities
Equity
Equity attributable to owners of the Company
Share capital and preference shares 897 897 897
Share premium 222 051 229 226 226 369
Share-based payment reserve 3 599 1 379 2 430
Foreign currency translation reserve (“FCTR”) (6 185) - (299)
Accumulated loss (86 292) (115 600) (95 751)
Total equity 134 070 115 902 133 646
Liabilities
Non-Current Liabilities
Preference share liability - 50 111 50 111
Loans and borrowings - - 581
Other financial liabilities - - -
Deferred tax liabilities 1 126 1 853 2 941
1 126 51 964 53 633
Current Liabilities
Preference share liability 50 111 - -
Loans and borrowings 166 843 153
Trade and other payables 18 076 58 036 81 348
Current tax payable 2 039 5 974 3 264
Provisions 2 478 3 985 3 576
Other financial liabilities - 3 473 2 217
Liabilities classified as held-for-sale (1) 25 704 - -
98 574 72 311 90 558
Total Liabilities 99 700 124 275 144 191
Total Equity and Liabilities 233 770 240 177 277 837
Number of ordinary shares legally in issue, less treasury shares 156 116 771 159 825 752 158 116 771
Net asset value per ordinary share (cents) (2) 85.88 72.52 84.52
Net tangible asset value per ordinary share (cents) (2) 46.95 40.09 43.68
(1) Refer to supplementary note 3.
(2) Net asset value is calculated by dividing total equity by the number of ordinary shares in issue, being the 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 number of ordinary shares legally in issue less treasury
shares.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
Unaudited six months ended Re-presented
year ended
December December June
R’000 2016 2015 2016
Profit before taxation 13 961 5 443 41 672
Adjusted for non-cash items 1 666 (4 205) 36 240
Working capital changes (22 339) 16 362 2 698
Cash (utilised in) / generated from operations (6 712) 17 600 80 610
Net finance cost (1 913) (1 405) (3 679)
Taxation paid (6 288) (3 696) (22 754)
Net cash (used in) / from operating activities (14 913) 12 499 54 177
Net cash used in investing activities (7 367) (3 114) (35 819)
Net cash from financing activities 67 756 638
Net (decrease) / increase in cash and cash equivalents for the (22 213) 10 141 18 996
period
Cash classified as held-for-sale (1) (8 029) - -
Cash and cash equivalents at the beginning of the year 94 481 74 386 74 386
Effect of exchange rate movement on cash balances (24) 15 055 1 099
Total cash and cash equivalents at end of the period 64 215 99 582 94 481
(1) Refer to supplementary note 3.
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Share Share
capital and based Accumu
preference Share payment -lated Total
R’000 shares premium reserve FCTR loss equity
Six months ended
Balance at 1 July 2016 897 226 369 2 430 (299) (95 751) 133 646
Total comprehensive income for the period - - - (5 886) 9 459 3 573
- Profit for the period - - - 9 459 9 459
- Foreign currency transaltion reserve net of
taxation - - - (5 886) - (5 886)
Share based payment charge for existing
options - - 1 169 - - 1 169
Movement in treasury shares * (4 318) - - - (4 318)
Balance at 31 December 2016 897 222 051 3 599 (6 185) (86 292) 134 070
Balance at 1 July 2015 897 231 265 406 - (117 242) 115 326
Total comprehensive income for the period - - - - 1 642 1 642
Shares repurchased Poynting Empowerment
Trust - (964) - - - (964)
Share based payment charge for existing
options - - 973 - - 973
Movement in treasury shares * (1 075) - - - (1 075)
Balance at 31 December 2015 897 229 226 1 379 - (115 600) 115 902
Year ended
Balance at 1 July 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 reservenet of
taxation - - - (299) - (299)
Share based payment charge for existing
options - - 2 024 - - 2 024
Shares repurchased Poynting Empowerment
Trust - (904) - - - (904)
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
Unaudited six months
ended Re-presented
year ended
R’000 December December June
2016 2015 (3) 2016 (3)
Continuing Operations
Segmental revenue
Alaris Antennas 67 269 36 125 117 294
- Total revenue 67 717 36 125 117 294
- Inter-segmental (448) - -
COJOT (1) 17 454 - 14 822
- Total revenue 18 172 - 14 822
- Inter-segmental (718) - -
84 723 36 125 132 116
Operating earnings before interest, tax, depreciation and amortisation (2)
Alaris Antennas 30 335 10 762 51 852
COJOT (1) 2 927 - 6 822
Corporate and consolidation (10 142) 5 001 (9 058)
23 120 15 763 49 616
Profit / (loss) for the period
Alaris Antennas 20 845 5 967 33 910
COJOT (1) 2 433 - 5 193
Corporate and consolidation (10 336) (3 269) (34 713)
12 942 2 698 4 390
Normalised earnings after tax for the period
Alaris Antennas 20 845 5 967 34 032
COJOT (1) 2 433 - 5 193
Corporate and consolidation (10 311) 3 364 (7 735)
12 967 9 331 31 490
Discontinued Operations (3)
Segmental revenue
Aucom 40 075 17 770 116 383
Operating earnings before interest, tax, depreciation and amortisation (2)
Aucom (3 843) (638) 25 733
Profit / (loss) for the period
Aucom (2 731) (304) 18 606
Corporate and consolidation (3) (752) (752) (1 505)
(3 483) (1 056) 17 101
Normalised earnings after tax for the period
Aucom (2 731) (304) 18 828
Corporate and consolidation (3) (752) (752) (1 505)
(3 483) (1 056) 17 323
Segment assets
Alaris Antennas 73 310 69 550 74 550
COJOT 17 203 - 48 764
Corporate and consolidation 71 502 66 226 39 981
Aucom (Discontinued operation assets held for sale) (3) 72 674 104 401 114 542
234 689 240 177 277 837
Segment liabilities
Alaris Antennas (17 225) (51 513) (33 590)
COJOT (8 160) - (13 099)
Corporate and consolidation (48 612) (18 219) (45 493)
Aucom (Discontinued operations liabilities held for sale) (3) (26 623) (54 543) (52 009)
(100 620) (124 275) (144 191)
(1) COJOT was consolidated into Group results from 1 May 2016 in the June 2016 financial year.
(2) Operating EBITDA is trading operating profit per Condensed Consolidated Statement of Profit or Loss and Other
Comprehensive Income excluding depreciation and amortisation:
Unaudited six months Re-
ended presented
year ended
R’000 December December June
2016 2015 (3) 2016 (3)
Continuing Operations
Trading operating profit 21 009 12 633 44 291
Depreciation and amortisation 2 111 3 130 5 325
Operating earnings before interest, tax, depreciation and amortisation 23 120 15 763 49 616
Discontinued Operations 3
Trading operating profit (5 135) (1 831) 23 266
Depreciation and amortisation 1 292 1 193 2 467
Operating earnings before interest, tax, depreciation and amortisation (3 843) (638) 25 733
(3) Aucom was classified as a discontinued operation and comparative numbers have been re-presented accordingly.
Refer to supplementary note 3.
SUPPLEMENTARY NOTES
TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
For the six months ended 31 December 2016
1. RECONCILIATION OF PROFIT TO HEADLINE EARNINGS
Total Operations Continuing Operations
Unaudited six months Re-presented Unaudited six months Re-
ended year ended ended presented
Year
ended
December December June 2016 December December June 2016
R’000 2016 2015 2016 2015
Profit from operations for 9 459 1 642 21 491 12 492 2 698 4 390
the period
Earnings attributable to - (509) - - (836) -
shares subject to recall
Headline earnings 9 459 1 133 21 491 12 942 1 862 4 390
attributable to ordinary
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 liability 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, payables, 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.
3. ASSETS AND LIABILITIES CLASSIFIED AS HELD FOR SALE AND DISCONTINUED OPERATIONS
We refer to the announcement released on SENS on 23 December 2016. In line with the strategy to focus on development,
manufacturing and selling of RF products to global niche markets, the Board has decided to sell its Aucom subsidiary.
Terms have been agreed between Alaris and the management team of the Company’s subsidiary, Aucom (“Aucom
Management”), for the sale by Alaris to Aucom Management of the Company’s entire 100% shareholding in Aucom, in
exchange for 30 000 000 Alaris shares held by Aucom Management at a consideration of R2.00 per share (“Disposal and
Repurchase”). In addition, the Company will repurchase a further 10 000 000 Alaris shares from Aucom Management at
a consideration of R2.00 per share (“Specific Repurchase”).
The Disposal and Repurchase and the Specific Repurchase (collectively, the “Transaction”) are subject to the fulfilment
of various conditions precedent. Management expects this deal to be concluded by 30 April 2017.
As a result of the above decision, this business has been classified as a discontinued operation. The relevant requirements
of IFRS5 have been met for this classification.
The Aucom business was not previously classified as held-for-sale or as a discontinued operation. The comparative
Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income and Segmental Analysis have
been re-presented to show the impact of the discontinued operation and its related assets and liabilities separately from
continuing operations.
Identifiable assets and liabilities held-for-sale consist of: Unaudited six
months ended
R’000 December 2016
Assets classified as held-for-sale 71 755
Plant and equipment 1 647
Intangible assets 4 529
Goodwill 19 908
Current tax receivable 1 763
Deferred tax asset 3 922
Inventories 7 054
Trade and other receivables 24 903
Cash and cash equivalents 8 029
Liabilities classified as held-for-sale (25 704)
Deferred tax liability (1 268)
Loans and borrowings (635)
Trade and other payables (23 259)
Provisions (542)
Total identifiable net assets 46 051
Unaudited six months ended Re-presented year
ended
Cash flows used in discontinued operation: December 2016 December 2015 June 2016
Net cash generated from operating activities 1 317 12 799 16 283
Net cash utilised in investing activities (240) (1 206) (1 499)
Net cash generated from financing activities 79 649 -
Net cash inflow for the period 1 156 12 242 14 784
4. STATEMENT OF COMPLIANCE
Alaris Holdings Limited is a South African registered company. These condensed consolidated interim financial statements
comprise of the Company and its subsidiaries.
The condensed consolidated interim financial statements for the six months ended 31 December 2016 are prepared in
accordance with the International Financial Reporting Standard (“IFRS”), IAS 34 Interim Financial Reporting, the SAICA
Financial Reporting Guides as issued by the Accounting Practices Committee and Financial Pronouncements as issued
by Financial Reporting Standards Council and the requirements of the Companies Act of South Africa. The accounting
policies applied in the preparation of these interim financial statements are in terms of International Financial Reporting
Standards and are consistent with those applied in the previous annual financial statements.
BASIS OF PREPARATION
The accounting policies applied in the preparation of the condensed consolidated interim financial statements are in
terms of IFRS5 and are consistent with those accounting policies applied in the preparation of the previous consolidated
annual financial statements.
The condensed consolidated interim 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 condensed
consolidated interim 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 condensed consolidated interim 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 H. Weilert was appointed as an independent non-executive director of the Board on 17 February 2017.
By order of the Board
Jürgen Dresel Gisela Heyman
Group Chief Executive Officer Group Financial Director
6 March 2017
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*^, Heinz Weilert*^,
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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