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Reviewed consolidated interim results for 6 month period ended December 2014
Compu-Clearing Outsourcing Limited
Registration number: 1998/015541/06
JSE share code: CCL ISIN: ZAE000016564
REVIEWED CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2014
REVENUE R37,1M
OPERATING PROFIT R8,5M
PROFIT FOR THE PERIOD R6,4M
HEADLINE EARNINGS PER SHARE 15,1 CPS
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
31 December 31 December 30 June
% 2014 2013 2014
All figures in R'000 Inc. [Reviewed] [Reviewed] [Audited]
Rental and other revenue 4 37 115 35 599 71 968
Operating costs (28 635) (26 741) (54 488)
- Distribution (20 544) (19 608) (38 503)
- Administration ( 6 504) ( 5 796) (15 324)
- Other ( 1 587) ( 1 337) ( 661)
Operating profit (4) 8 480 8 858 17 480
Finance income 525 510 1 050
Profit before income tax (4) 9 005 9 368 18 530
Income tax - normal and deferred (2 645) (3 029) (5 930)
Profit for the period 0 6 360 6 339 12 600
Other comprehensive income that will never be
realised in profit or loss - - 1 556
Total comprehensive income for the period 6 360 6 339 14 156
Earnings per share [cents]
Basic 0 15.1 15.1 30.0
Diluted 0 15.1 15.1 30.0
Headline earnings per share [cents]
Basic 0 15.1 15.1 30.0
Diluted 0 15.1 15.1 30.0
Actual number of shares in issue ['000] 42,061 42,061 42,061
Weighted average number of shares in issue ['000] 42,061 42,048 42,055
Diluted weighted average number of shares in issue ['000] 42,061 42,048 42,055
Gross ordinary dividend per share declared [cents] - - 32.0
Gross ordinary dividend per share paid [cents] 32.0 30.0 30.0
RECONCILIATION OF HEADLINE EARNINGS
31 December 31 December 30 June
% 2014 2013 2014
All figures in R'000 Inc. [Reviewed] [Reviewed] [Audited]
Profit for the period attributable to ordinary shareholders 6 360 6 339 12 600
Adjusted for:
(Profit) loss on disposal of property, plant and equipment (21) 8 16
Taxation effect 6 (2) (4)
Headline earnings 6 345 6 345 12 612
SEGMENTAL REPORT
31 December 31 December 30 June
% 2014 2013 2014
All figures in R'000 Inc. [Reviewed] [Reviewed] [Audited]
Revenue
Software rental 2 27 916 27 426 55 011
Hardware rental - 5 714 5 720 11 636
CargoWise One 51 2 668 1 772 3 841
Headoffice 20 817 681 1 480
Total revenue from external sources 4 37 115 35 599 71 968
Segment profit (loss)
Software rental 13 903 13 367 28 055
Hardware rental 1 409 1 847 2 706
CargoWise One 977 687 1 527
Headoffice (7 809) (7 043) (14 808)
Operating profit (4) 8 480 8 858 17 480
Segment Assets
Software rental 18 013 14 114 16 698
Hardware rental 6 560 7 253 6 746
CargoWise One 1 337 423 1 153
Headoffice 31 124 32 958 41 684
Total assets 57 034 54 748 66 281
Segment Liabilities
Software rental 339 206 2 105
Hardware rental 389 87 175
CargoWise One 1 138 955 1 484
Headoffice 7 202 6 372 7 452
Total liabilities 9 068 7 620 11 216
STATEMENT OF FINANCIAL POSITION
31 December 31 December 30 June
% 2014 2013 2014
All figures in R'000 Inc. [Reviewed] [Reviewed] [Audited]
ASSETS
Non current assets 34 020 29 733 33 035
Property, plant and equipment 26 973 25 955 27 449
Intangible asset 6 808 3 561 5 139
Deferred taxation asset 239 217 447
Current assets 23 014 25 015 33 246
Trade and other receivables 11 218 9 266 11 425
Taxation receivable 1 626 753 789
Cash and cash equivalents 10 170 14 996 21 032
Total assets 57 034 54 748 66 281
EQUITY AND LIABILITIES
Equity 47 966 47 128 55 065
Share capital and premium 2 696 2 576 2 696
Distributable reserves 45 270 44 552 52 369
Non-current liabilities 4 112 3 074 3 198
Post retirement medical obligations 374 414 394
Deferred taxation liability 3 738 2 660 2 804
Current liabilities 4 956 4 546 8 018
Trade and other payables 4 291 3 777 7 319
Income tax payable 665 769 699
Total liabilities 9 068 7 620 11 216
Total equity and liabilities 57 034 54 748 66 281
Net asset value per share [cents] 114.0 112.0 130.9
Net tangible asset value per share [cents] 97.9 103.6 118.7
STATEMENT OF CHANGES IN EQUITY
31 December 31 December 30 June
% 2014 2013 2014
All figures in R'000 Inc. [Reviewed] [Reviewed] [Audited]
Balance at beginning of period 55 065 53 262 53 262
Proceeds of share issues - 145 265
Total comprehensive income for the period 6 360 6 339 14 156
Profit for the year 6 360 6 339 12 600
Other comprehensive income (surplus on revaluation of property) - - 1 556
Dividends paid (13 459) (12 618) (12 618)
Balance at end of period 47 966 47 128 55 065
STATEMENT OF CASH FLOWS
31 December 31 December 30 June
% 2014 2013 2014
All figures in R'000 Inc. [Reviewed] [Reviewed] [Audited]
Profit before income tax 9 005 9 368 18 530
Adjusted for: 1 575 1 390 2 679
Non cash items 2 100 1 900 3 729
Net finance income (525) (510) (1 050)
Cash generated by trading operations 10 580 10 758 21 209
Decrease in post retirement medical obligations (20) (19) (39)
(Increase) decrease in working capital (2 821) (1 142) 241
Cash generated by operations 7 739 9 597 21 411
Net finance income 525 510 1 050
Income tax paid (2 375) (1 679) (5 306)
Dividends paid (13 459) (12 618) (12 618)
Cash (outflow) inflow from operating activities (7 570) (4 190) 4 537
Cash outflow from investing activities (3 292) (3 427) (6 238)
Acquisition of property, plant and equipment ( 958) (1 135) (1 913)
Acquisition of intangible asset (2 358) (2 313) (4 379)
Proceeds on disposal of property, plant and equipment 24 21 54
Cash generated by financing activities - 145 265
Decrease in cash and cash equivalents (10 862) (7 472) (1 436)
Cash and cash equivalents at the beginning of the period 21 032 22 468 22 468
Cash and cash equivalents at the end of the period 10 170 14 996 21 032
Commentary
CompuClearing is South Africa’s market leader in the provision of IT services and products to the customs clearing and freight
forwarding industries.
The Group’s core revenue is transaction-based and directly linked to customer import and export volumes. Other revenue
segments comprise hardware rental and the distribution of a leading global third party freight management solution, CargoWise One.
The current period has been one of consolidation, following a period of good growth. Against a climate of flat international
trade volumes, Group revenue for the six months to 31 December 2014 rose 4% to R37,1 million (2013 – R35,6 million).
This was driven by a 2% growth in the software rental segment and a 51% growth in the CargoWise One segment, which continues to
make good progress and add contract new clients.
The R1,9 million increase in operating costs includes the first time amortisation of Compusolutions Diamond, increased maintenance
costs for servers out of warranty and specialised management training courses as we develop a closer working relationship with
Wisetech Global, the creators of CargoWise One. Increased operating costs resulted in a 4% drop in operating profit to R8.5 million (2013—R8,9 million).
Cash flow for the period remained robust with cash generated by operations a healthy R7,7 million (2013 — R9,6 million). Trade and other
receivables increased due to timing differences, which have since corrected themselves.
Prospects
The CargoWise One segment continues to grow and has a healthy order book. Further implementations scheduled to go live in the
second half of the 2015 financial year will drive ongoing growth within the segment.
The Group will seek further market penetration through the release of Compusolutions Diamond, intensified marketing efforts and continued
development of new functionality in existing products. Management continue to monitor costs and maintain operating margins at acceptable levels.
Basis of preparation
The condensed consolidated interim financial statements for the six months ended 31 December 2014 have been prepared and presented in accordance
with the requirements of International Accounting Standard IAS 34 Interim Financial Reporting, the SAICA Financial Reporting Guides as issued by
the Accounting Practices Committee, the Listings Requirements of the JSE Limited and the South African Companies Act, No 71 of 2008.
In preparing these interim condensed consolidated financial statements, management makes use of judgements, estimates and assumptions that
affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense.
Actual results may differ from these estimates.
The significant judgements made by management in applying the Group's accounting policies were the same as those that applied to the
consolidated financial statements as at and for the year ended June 30 2014.
The accounting policies applied in the presentation of the condensed consolidated interim financial statements, which comply with
International Financial Reporting Standards, are consistent with those applied for the year ended 30 June 2014, except for new standards
and interpretations that became effective on 1 July 2014. The company adopted the following new and revised accounting standards, amendments
to standards and new interpretations during the year. The adoption of IFRIC 21 Levies, and the amendments to Investment Entities (Amendments
to IFRS 10, IFRS 12 and IAS 27), Offsetting Financial Assets and Financial Liabilities (Amendments to IAS 32), Recoverable Amount Disclosures
for Non-Financial Assets (Amendment to IAS 36), Novation of Derivatives and Continuation of Hedge Accounting (Amendments to IAS 39) had no
effect on the results of the company. The condensed consolidated interim financial statements have been presented on the historical cost basis
and are presented in Rand rounded to the nearest thousand, which is the Company’s functional and presentation currency.
This interim report should be read in conjunction with the financial statements for the year ended 30 June 2014.
Distributions to shareholders
CompuClearing has a policy of paying a dividend at year end. As a result, the company has not declared an interim dividend.
Review report
The condensed consolidated interim financial statements of CompuClearing Outsourcing Limited for the six months ended 31 December 2014 have
been reviewed by the company’s auditor, KPMG Inc. In their review report dated 10 March 2015, which is available for inspection at the
Company’s Registered Office. KPMG Inc state that their review was conducted in accordance with the International Standard on Review
Engagements 2410, Review of Interim Information Performed by the Independent Auditor of the Entity, and have expressed an unmodified
conclusion on the condensed interim financial statements.
Changes to the board of directors
The following change in the board of directors took place during the period and up to the date of this report:
Name Designation Nature of change Date
J. DuPreez Executive Director Retirement 31 December 2014
M. Lutrin Non-Executive Director Resignation 23 July 2014
Y. Zulberg Executive Director Appointment 10 March 2015
The Board and management thank Johan for his dedication and valued contribution to the development of CompuClearing over
many years. The Board further thanks Milton for his valuable contribution over the years.
Related party transactions
There has been no significant change in related party relationships since the previous year. Other than in the normal course
of business, there have been no significant transactions during the period with related parties.
Significant transactions
No material events or circumstances have occurred subsequent to the period end.
For and on behalf of the board
Johannesburg L. Jacobs A.Garber
10 March 2015 Chairman Chief Executive
Executive directors: A. Garber, M. Acosta-Alarcon, J.Davis, Y.Zulberg
Independent non-executive directors : L. Jacobs, A. Katz, Dr. T. Mogale
Non-executive directors : D. Cleasby, G. McMahon
Prepared by: J Davis B Acc CA(SA) (Financial Director)
email:jonathan@compuclearing.za.com
10 March 2015
Transfer secretaries: Registered office:
Computershare Investor Services Proprietary Limited 7 Drome Road
Ground Floor Lyndhurst, 2192
70 Marshall Street PO Box 890856
Johannesburg, 2001 Lyndhurst, 2106
Sponsor:
Sasfin Capital (a division of Sasfin Bank Limited)
www.compclear.holdings
Date: 10/03/2015 04:30:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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