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Abridged Audited Consolidated Financial Statements
for the year ended 31 March 2018 and notice of annual general m
Etion Limited
(“Etion” or “the company” or “the Group”)
(Incorporated in the Republic of South Africa)
(Registration Number: 1987/001222/06)
Share Code: ETO
ISIN: ZAE000257739
Abridged Audited Consolidated Financial Statements
for the year ended 31 March 2018 and notice of annual general meeting
(KEY FEATURES)
- Revenue decreased (down 29%) to R572.6 million (2017: 806.0 million)
- The revenue performance continues to reflect a positive trend of a compounded
annual growth rate (CAGR) of 31% over three years
- Gross Margin improved to 28,3% (2017: 26,3%)
- Headline Earnings per share halved (50% down) to 7.29 cents (2017: 14.72)
- Earnings continue to reflect an upward trend with a positive CAGR of 18% over
three years.
- EBITDA reduced (down 46%) to R60.7 million (2017: R113.1 million)
- The EBITDA result demonstrates an encouraging trend with a CAGR of 46% over
three years
- Tangible Net Asset Value increased to 39.9 cents from 32.6 cents (up 22%)
- Liquidity ratio improved from 1.7 to 2.1
Abridged consolidated statement of financial position
As at 31 March 2018
31 March 2018 31 March 2018 31 March 2017
(Audited) (Reviewed) (Audited)
R’000 R’000 R’000
Assets
Non-current assets 184 569 184 569 179 010
Property, plant and equipment 50 294 50 294 53 158
Intangible assets 118 543 118 543 118 692
Deferred tax asset 14 722 14 722 6 150
Other financial asset 1 010 1 010 1 010
Current assets 285 379 285 379 304 794
Inventories 88 276 88 276 101 099
Trade and other receivables 140 790 140 790 124 404
Cash and cash equivalents 50 800 50 800 79 291
Current tax receivable 5 513 5 513 -
Total assets 469 948 469 948 483 804
Equity and liabilities
Equity 302 446 302 446 269 022
Share capital 212 141 212 141 212 141
Accumulated profit 90 305 90 305 56 652
Minority interest - - 229
Non-current liabilities 32 952 32 952 38 060
Interest bearing borrowings 27 788 27 788 36 602
Other financial liabilities - - -
Deferred tax liability 5 164 5 164 1 458
Current liabilities 134 550 134 550 176 722
Provisions 5 388 5 388 1 186
Interest bearing borrowings 9 461 9 461 5 211
Trade and other payables 110 155 110 155 166 467
Current tax payable - - 3 802
Bank overdrafts 9 546 9 546 56
Total equity and liabilities 469 948 469 948 483 804
Abridged consolidated statement of comprehensive income
For the year ended 31 March 2018
Year Year Year
ended ended ended
31 March 2018 31 March 2018 31 March 2017
(Audited) (Reviewed) (Audited)
R’000 R’000 R’000
Revenue 572 562 572 562 806 019
Cost of sales (410 379) (410 379) (593 887)
Gross profit 162 183 162 183 212 132
Other income 2 276 2 276 969
Operating costs (125 787) (125 787) (130 304)
Other gains 7 849 7 849 17 409
Operating profit 46 521 46 521 100 206
Finance income 1 975 1 975 3 106
Finance costs (6 143) (6 143) (9 132)
Profit before taxation 42 353 42 353 94 180
Taxation (8 929) (8 929) (26 429)
Net profit for the period 33 424 33 424 67 751
Total comprehensive income
for the period 33 424 33 424 67 751
Attributable to:
Equity holders of the company 33 473 33 473 67 876
Non-controlling interest (49) (49) (125)
33 424 33 424 67 751
Basic earnings per share (cents) 7.26 7.26 14.72
Diluted earnings per share 7.26 7.26 14.72
(cents)
Abridged consolidated statement of cash flows
For the year ended 31 March 2018
Year Year Year Year
ended ended ended ended
31 March 31 March 31 March 31 March
2018 2018 2017 2017
(Audited) (Reviewed) (Restated) (Previously
reported)
R’000 R’000 R’000 R’000
Cash flows from operating
activities
Cash receipts from customers 556 150 556 150 787 654 787 654
Cash paid to suppliers and
employees (555 460) (550 935) (686 268) (679 864)
Cash generated from operations 690 5 215 101 386 107 790
Finance costs (6 143) (6 143) (9 132) (9 132)
Finance income 1 975 1 974 3 106 3 106
Taxation paid (23 110) (23 112) (26 765) (26 765)
Net cash flow from
operating activities (26 588) (22 066) 68 595 74 999
Cash flows from investing
activities
Purchase of property, plant and
equipment (4 942) (4 942) (15 371) (15 371)
Proceeds from disposal of
property, plant and equipment 1 169 1 169 612 612
Purchase of intangible assets (7 578) (7 578) (6 482) (6 482)
Increase in other financial
assets - - (335) (335)
Net cash flow from
investing activities (11 351) (11 351) (21 576) (21 576)
Cash flows from financing
activities
Settlement of other financial
liabilities - - (8 442) (8 442)
(Repayment of)/proceeds from
interest bearing borrowings (4 564) (4 564) 6 601 6 601
Net cash flow from financing
activities (4 564) (4 564) (1 841) (1 841)
Net (decrease)/increase in cash,
cash equivalents and bank (42 503) (37 981) 45 178 51 582
overdrafts
Cash, cash equivalents and
bank overdrafts at beginning of 79 235 79 235 27 653 27 653
year
Unrealised foreign exchange
adjustment 4 522 - 6 404 -
adjustment
Cash, cash equivalents and
bank overdrafts at year end 41 254 41 254 79 235 79 235
bank overdrafts at year end
Abridged consolidated statement of changes in equity
For the year ended 31 March 2018
Accumu
Issued lated Non-
share (losses)/ controlling
capital profit interest Total
R’000 R’000 R’000 R’000
Balance as at 1 March
2016 (Audited) 212 141 (11 224) 354 201 271
Movements during the year
Profit for the year - 67 876 (125) 67 751
Balance as at 31 March
2017 (Audited) 212 141 56 652 229 269 022
Movements during the year
Profit for the year - 33 473 (49) 33 424
Acquisition of minority
interest - 180 (180) -
Balance as at 31 March
2018 (Reviewed) 212 141 90 305 - 302 446
Balance as at 1 March
2016 (Audited) 212 141 (11 224) 354 201 271
Movements during the year
Profit for the year - 67 876 (125) 67 751
Balance as at 31 March
2017 (Audited) 212 141 56 652 229 269 022
Movements during the year
Profit for the year - 33 473 (49) 33 424
Acquisition of minority
interest - 180 (180) -
Balance as at 31 March
2018 (Audited) 212 141 90 305 - 302 446
Abridged consolidated segment report
For the year ended 31 March 2018
Year Year Year
ended ended ended
31 March 2018 31 March 2018 31 March 2017
(Audited) (Reviewed) (Audited)
R’000 R’000 R’000
Segment revenue
Safety and Productivity 77 035 77 035 100 240
Solutions
Digital Network Solutions 266 469 266 469 428 836
Original Design Manufacturing 229 058 229 058 276 943
Total 572 562 572 562 806 019
Segment profit
Safety and Productivity (4 211) (4 210) 5 530
Solutions
Digital Network Solutions 27 606 27 606 82 248
Original Design Manufacturing 31 542 31 542 22 455
Sub total 54 937 54 938 110 233
Corporate costs (8 416) (8 416) (10 027)
Finance costs (6 143) (6 143) (9 132)
Finance income 1 975 1 974 3 106
Profit before taxation 42 353 42 353 94 180
Financial position ^
Assets 469 948 469 948 483 804
Safety and Productivity 91 570 91 571 80 748
Solutions
Digital Network Solutions 142 645 142 646 198 290
Original Design Manufacturing 235 627 235 628 203 556
Corporate assets 106 103 1 210
Liabilities 167 502 167 502 214 782
Safety and Productivity 24 922 24 920 12 090
Solutions
Digital Network Solutions 45 470 45 471 114 977
Original Design Manufacturing 97 108 97 109 84 625
Corporate liabilities 2 2 3 090
^ In the current reporting period, the operating segments have been reclassified to align with the
Group’s stated digital strategy. Consequently, the prior year reporting has been restated. As in the
past, the allocation of assets and liabilities is based on the principle of being directly related to the
segment.
In the prior period the consolidated segment report was stated as follows:
Year
ended
31 March 2017
(Audited)
R’000
Segment revenue
Rail 100 240
Defence and Cyber Security 187 623
Mining and Industrial 89 320
Telecommunications 428 836
Total 806 019
Segment profit
Rail 5 530
Defence and Cyber Security 14 721
Mining and Industrial 7 734
Telecommunications 82 248
Sub total 110 233
Corporate costs (10 027)
Finance costs (9 132)
Finance income 3 106
Profit before taxation 94 180
Financial position
Assets 483 804
Rail 80 748
Defence and Cyber Security 142 045
Mining and Industrial 61 511
Telecommunications 198 290
Corporate assets 1 211
Liabilities 214 782
Rail 12 090
Defence and Cyber Security 61 872
Mining and Industrial 22 753
Telecommunications 114 977
Corporate liabilities 3 090
NOTES TO THE FINANCIAL INFORMATION
1. Restatement of reviewed results for the year ended 31 March 2018
The reviewed financial results for the year ended 31 March 2018 which was released
on SENS on 27 June 2018, as well as the audited cash flow statement for the period
ended 31 March 2017 have been restated due to the following items:
- The split of unrealised foreign exchange differences in the cash flow
statement and the “cash generated from operations note” to reflect the
correct split of unrealised foreign exchange differences to the elements they
relate to.
- Minor rounding differences on individual figures with the finalisation of the
financial statements.
The effect of the restatement applies to the reviewed 31 March 2018 figures as well
as the audited cash flow statement figures for 2017.
There were no material changes to the Statement of Comprehensive Income and
hence there was no change to any of the key indicators that relate to this, including
the Earnings per Share and Headline Earnings per share. The effect on the individual
line items are contained in the notes below:
1.1 Cash flow statement and notes to cashflow statement
The following changes were made in order to either achieve consistency in disclosure
between the current and prior years, or to split of unrealised foreign exchange
differences in the cash flow statement and the “cash generated from operations
note” to reflect the correct split of unrealised foreign exchange differences to the
elements they relate to.
2018 financial year:
Year Year Difference
ended ended
31 March 31 March
2018 2018
(Audited) (Reviewed)
R’000 R’000 R’000
Cash flows from operating
activities
Cash paid to suppliers and
employees (555 460) (550 935) (4 525)
Cash generated from operations 690 5 215 (4 525)
Finance income 1 975 1 974 1
Taxation paid (23 110) (23 112) 2
Net cash flow from
operating activities (26 588) (22 066) (4 522)
Net (decrease)/increase in cash,
cash equivalents and bank (42 503) (37 981) (4 522)
overdrafts
Unrealised foreign exchange
adjustment 4 522 - 4 522
2017 financial year:
Year Year Difference
ended ended
31 March 31 March
2017 2017
(Restated) (Previously
reported)
R’000 R’000 R’000
Cash flows from operating
activities
Cash paid to suppliers and
employees (686 268) (679 864) (6 404)
Cash generated from operations 101 386 107 790 6 404
Net cash flow from
operating activities 68 595 74 999 (6 404)
Net (decrease)/increase in cash,
cash equivalents and bank 45 178 51 582 (6 404)
overdrafts
Unrealised foreign exchange
adjustment 6 404 - 6 404
In the note “cash generated from operations” the changes are as follows:
2018 financial year:
Year Year Difference
Ended Ended
31 March 2018 31 March 2018
(Audited) (Reviewed)
R’000 R’000 R’000
Profit before tax 42 353 42 353 -
Adjustments For:
Increase in provision for slow moving and 91 90 1
obsolete raw materials
(Decrease)/ increase in provision for (751) (906) 155
impairment of trade receivables
Operating lease straight line adjustment 617 - 617
(Decrease)/Increase in provisions 4 202 - 4 202
Unrealised foreign exchange differences – (4 522) - (4 522)
cash and back equivalents
Unrealised foreign exchange differences – 1 475 - 1 475
trade creditors
Unrealised foreign exchange differences – 1 888 - 1 888
trade debtors
Unrealised foreign exchange differences - (2 486) (2 486)
Changes in Working Capital
Inventories 12 732 12 733 (1)
Trade and other receivables (17 522) (15 477) (2 045)
Trade and other payables (58 405) (53 825) (4 580)
(Decrease)/Increase in provisions - 4 201 (4 201)
Cash generated from operations 690 5 215 (4 525)
2017 financial year:
Year Year Difference
Ended Ended
31 March 2017 31 March 2017
(Restated) (Previously
reported)
R’000 R’000 R’000
Adjustments For:
Unrealised foreign exchange differences – (6 404) - (6 404)
cash and back equivalents
Unrealised foreign exchange differences – 2 426 - 2 426
trade creditors
Unrealised foreign exchange differences – 19 - 19
trade debtors
Unrealised foreign exchange differences - (3 959) (3 959)
Balance before working capital
changes
Changes in Working Capital
Increase in trade and other receivables (3 738) (3 718) (20)
(Decrease)/increase in trade and other 11 659 18 043 (6 384)
payables
Cash generated from operations 101 386 107 790 (6 404)
1.2 Segment results
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
Year Year Difference
ended ended
31 March 2018 31 March 2018
(Audited) (Reviewed)
R’000 R’000 R’000
Segment profit
Safety and Productivity (4 211) (4 210) (1)
Solutions
Sub total 54 937 54 938 (1)
Finance income 1 975 1 974 1
Financial position ^
Assets 469 948 469 948 -
Safety and Productivity 91 570 91 571 (1)
Solutions
Digital Network Solutions 142 645 142 646 (1)
Original Design Manufacturing 235 627 235 628 (1)
Corporate assets 106 103 3
Liabilities 167 502 167 502 -
Safety and Productivity 24 922 24 920 2
Solutions
Digital Network Solutions 45 470 45 471 (1)
Original Design Manufacturing 97 108 97 109 (1)
STATEMENT OF COMPLIANCE AND BASIS OF PREPARATION
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.
AUDIT 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 by BC Lamprecht CA(SA) under the supervision of EC De
Kock FCMA.
GOING CONCERN
The directors have reviewed the group’s budget and cash flow forecast for the year to
March 2019. On this basis and considering the group’s current financial position, the
directors are satisfied that the group will continue to operate for the foreseeable future
and have adopted a going concern basis in preparing these reviewed provisional financial
results.
ISSUE OF AUDITED ANNUAL FINANCIAL STATEMENTS AND ANNUAL GENERAL MEETING
In compliance with section 3.22 of the JSE Listing Requirements shareholders are
advised that the Company’s 2018 integrated annual report, which incorporates Etion’s
consolidated financial statements for the year ended 31 March 2018, was posted to
shareholders on Tuesday, 31 July 2018. Shareholders are further advised that the
integrated annual report will be made available on the Company’s website
(www.etion.co.za) on the same day.
Notice is hereby given that the annual general meeting of the shareholders of Ansys will
be held on Thursday 27 September 2018 at 10h00 at 85 Regency Drive, Route 21
Corporate Park, Irene, Pretoria to deal with the business as set out in the notice of
annual general meeting forming part of the annual report.
- Record date for the purpose of determining which shareholders are entitled to
receive the notice of annual general meeting; Tuesday, 31 July 2018
- Mailing of integrated annual report; Tuesday, 31 July 2018
- Last day to trade for the purposes of being entitled to attend, participate in and
vote at the annual general meeting; Tuesday 18 September 2018.
- Record date on which members must be recorded as such in the register;
Friday,21 September 2018
Proxy forms to be lodged with the transfer secretaries by 10:00 Tuesday, 25 September
2018. Any form of proxy not delivered to the transfer secretaries by this time may be
handed to the chairman of the annual general meeting prior to the commencement of
the annual general meeting.
By order of the board
Teddy Daka Elvin De Kock
Chief Executive Officer Chief Financial Officer
31 July 2018
Directors
CP Bester; T Daka (CEO)*; Dr. SJ Khoza; EC De Kock (CFO)*; N Medupe; NS Mjoli-
Mncube; SP Mzimela, C Maherry*
*Executive
Company secretary
Fusion Corporate Secretarial Services (Pty) Ltd
Telephone: +27 12 749 1800
Facsimile: +27 12 665 2767
Website: www.etion.co.za
Registered office: 85 Regency Drive, Route 21 Corporate Park, Irene, Pretoria 0157
(PO Box 95361, Waterkloof, Pretoria)
Designated adviser: Exchange Sponsors 2008 (Pty) Ltd
Transfer secretaries: Computershare Investor Services (Pty) Ltd
Date: 31/07/2018 10:05:00 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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