Wrap Text
Unaudited Condensed Consolidated Results for the Six Months Ended 31 December 2018
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 2018
Summary
• Revenue decreased by 17% from R102.6 million to R85.0 million.
• Normalised earnings for the Group decreased by 64% from R21.7 million to R7.8 million.
• The US acquisition was successfully concluded and consolidated with an effective date of 1 October
2018.
What we are all about
Alaris Holdings Limited is a Radio Frequency (“RF”) technology holding company listed on the JSE AltX since July
2008.
The Alaris Group consists of 3 subsidiaries, namely:
Alaris Antennas, with its head office in Centurion, designs, manufactures and sells specialised broadband antennas
as well as other related RF 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.
COJOT develops innovative broadband antennas to improve connectivity, coverage and competitiveness of radio
equipment which is deployed to save lives and protect property.
mWave is based in Windham, Maine in the United States and is a leading global provider of innovative custom and
commercial microwave antenna solutions. The company was established in 2004 and designs and manufactures
standard and custom microwave antenna products for commercial and government applications spanning the
scientific, defence, and academic communities.
Business Overview
The results of the combined operations for the first half were lower than the comparative period. Revenue was down
by 17% and the basic and headline earnings per ordinary share decreased by 71% from 18.62 cents to 5.41 cents.
The decrease is mainly from a decline in revenue at Alaris Antennas and COJOT compared to the corresponding
interim period. A significant portion of the Group’s performance is associated with long sales cycles on larger
opportunities with six to twelve month delivery timeframes. The timing of these opportunities can impact the results
significantly.
The group had a very strong comparative first half in FY18 with COJOT posting an exceptional performance. This
year’s first half revenue has been impacted by a low order intake in the first quarter.
Recently acquired mWAVE has been consolidated into the Group for three months during this period. Therefore
their results didn’t have a significant impact on the Group’s performance with revenue of R9.0 million and Profit after
tax (“PAT”) of R0.1 million.
The Group’s cash position at 31 December 2018 was R18.5 million. The purchase of mWAVE was facilitated by a
cash payment to the amount of US$2.3 million (R30.2 million) and by issuing 4.9 million shares to the Sellers.
Alaris Antennas
Revenue decreased by 14% from R62.7 million to R53.9 million and PAT decreased from R15.5 million to R9.4 million.
Alaris Antennas experienced lower revenue for the period, impacted by a delay in closing orders and a higher
proportion of precision engineering projects, which took longer to complete.
It is beneficial for Alaris Antennas to get more involved in the larger precision engineering projects. Although they
have a complex initial design component (which can take long), there is more scope for future simpler and
profitable “production-only” orders once the work has been “designed in” to a larger system. The challenge is to
complete the initial design process in a timely and cost effective manner, given the advanced technical
requirements.
Measures have been put in place to counter the impact of the design process. These include placing more
importance on upfront project assessments with increased effort on understanding the technical risks, scope, pricing
and timelines.
The company’s competitive advantage remains its ability to develop cutting-edge technology solutions for its
clients. This half year it was no different as the company added 23 (2018: 33) new products to its portfolio. Some of
these projects resulted in a prolonged delivery cycle given the intense technological requirements. A number of
these projects will be delivered in the second half of the financial year.
COJOT
COJOT experienced a lower first half of the financial year, compared to the exceptional performance in the
comparative period. Revenue decreased by 45% from R39.9 million to R22.1 million and PAT decreased from R11.8
million to R3.6 million.
The order intake increased positively during the latter part of the period. Deliveries of several orders are scheduled
for the second half of the financial year.
mWAVE Industries
The acquisition of mWAVE has been successfully concluded during the second quarter of the year. The company
specialises in parabolic grids, solid parabolic and directional panel antennas, as well as wide band feeds.
The mWAVE product portfolio is complementary to the Group. COJOT and Alaris Antennas do not offer the same
antenna products. mWAVE’s product range also covers higher frequency ranges than those offered by the other
subsidiaries.
mWAVE maintains an antenna test range that is used to verify new antenna designs and final production, as well
as third party testing for its customers.
mWAVE was incorporated into the Alaris Holdings Group from 1 October 2018, with a low profit contribution for the
three months. The business should be assessed over a twelve-month period. Management remains positive about
the opportunities of having a US presence and the prospects ahead.
During the past couple of months, the focus has been on the integration of mWAVE into the Group. Various
operational activities are underway to align specific functions with the Group’s objectives.
Corporate and consolidation
This division includes costs associated with being a listed entity and the running costs of shared services. An example
of this is the centralised treasury function, where foreign currency hedging is managed. The following are the main
costs before tax included in this segment:
• Net foreign exchange gains of R0.5 million (Dec 2017: R0.1 million loss)
• Employee costs, cost of the share incentive option scheme for Group executives and board fees totalling
R4.0 million (Dec 2017: R5.0 million)
• Legal and consulting fees including the costs to be listed on the JSE, advisory fees, group audit fees and
legal fees for the mWAVE acquisition totalling R2.9 million (Dec 2017: R1.1 million)
Prospects
The Group objective of becoming the preferred supplier of innovative RF products both locally and internationally
is gaining momentum with its latest strategic acquisition.
Alaris Antennas
Alaris Antenna’s competitive advantage is its ability to develop and own its IP as it continues to invest significantly
in research and development. Our research and development division has received more prospects as the quest
for specialized technological advantages increases. This provides opportunities to the highly skilled and specialized
team of engineers to support our objective of being the preferred supplier and partner of innovative RF products.
Products are manufactured on site in Centurion and approximately 70% of the company’s revenue for the period
was derived from exports. With the global footprint of the Group expanding, new opportunities are created and the
company is entering into new market segments where its core competencies can be leveraged. Further
opportunities for growth are achieved by adding distributors, agents and new system houses as clients.
Part of the strategic objective to obtain a presence in the United States was to establish an Alaris US division, which
will be an integral part of mWAVE. One of our key employees will relocate to the US and will head up the Alaris US
division to champion the selling of Alaris and COJOT products in the US market.
COJOT
COJOT maintains a client centric approach similar to Alaris. The company makes use of a direct sales team and
select channel partners to build their order book.
New opportunities are created from the requirement to development and design smart antennas and the company
is working closely with its customers to address this need. Its team of highly skilled engineers has many years of
experience in design and development to create solutions and products which allow functions like automatic
frequency tuning, switched beam antennas and multiple port antennas.
The company has established strong partnerships with key contract manufacturers over the years. These
partnerships provide efficiency and scalability as well as seamless quality to its client base.
The order intake bodes well for the second half.
mWAVE Industries LLC
mWAVE provides an ideal opportunity for future organic growth, as more than half of the global electronic warfare
market is located in the US.
Several opportunities have been added to the order book and the sales team has managed to unlock opportunities
with new and existing customers in this market.
We are optimistic that profits at mWAVE can be increased by improving margins and focusing on customised
product sales.
Operational activities are underway to align the company with Group strategic objectives. These include a
Customer Relationship Management system, which will improve interaction with the other subsidiaries and an in-
house accounting function.
The establishment of an Alaris US division at mWAVE will have a positive effect on exposure and relationships.
The Group
The Group’s three strategic pillars provide a solid foundation and unique position for growth to all three subsidiaries,
being Alaris Antennas, COJOT and mWAVE. These key areas consist of extensive expertise in RF products, owning
and continuously developing intellectual property and the global footprint of its products.
Sustainable organic growth will remain a strategic priority for the Group. As the operational activities are aligned
across the Group, the combined operations allow existing and new customers to receive an improved service and
an expanded product portfolio. The design and development of new products from the combined skill sets of the
three companies will provide more competitive features, enabling increased performance for end users. The
companies endeavor to continuously find the required technological edge for customers through product
innovation and excellent service.
International expansion remains an important part of the Group’s global strategy and management will continue
to be on the lookout for acquisitions that fit the Group’s objectives.
The Group remains positive about prospects for the period ahead. The focus is to ensure profitable organic and
acquisitive growth for the Alaris Holdings Group and its subsidiaries.
Condensed consolidated statement of profit or loss and other comprehensive income
Unaudited six months ended Audited
R’000 December 2018 December 2017 June 2018
Revenue 85 043 102 595 187 075
Cost of sales A (27 699) (27 770) (53 589)
Gross profit 57 344 74 825 133 486
Other income 585 63 738
Operating expenses (49 896) (47 344) (91 502)
Trading operating profit B 8 033 27 544 42 722
Finance income 180 140 380
Finance costs (81) (265) (392)
Profit before taxation 8 132 27 419 42 710
Taxation (1 727) (5 794) (9 791)
Profit for the period 6 405 21 625 32 919
Other comprehensive income net of tax:
Items that may be reclassified subsequently to profit or loss: 1 091 (592) 2 872
- Gross foreign currency translation reserve 1 367 (551) 3 652
- Taxation (276) (41) (780)
Total comprehensive income 7 496 21 033 35 791
Weighted average number of ordinary shares in issue C 118 436 265 116 116 771 116 116 771
Weighted average number of diluted ordinary shares in
issue C 118 436 265 116 116 771 116 116 771
Basic earnings per ordinary share (cents) 5.41 18.62 28.35
Diluted earnings per ordinary share (cents) 5.41 18.62 28.35
Headline earnings per ordinary share (cents) 5.41 18.62 28.35
Diluted headline earnings per ordinary share (cents) 5.41 18.62 28.35
Normalised earnings per ordinary share (cents) D 6.56 18.69 30.50
A. Cost of sales is impacted by the MWAVE products that have a lower gross margin compared to the Alaris
Antennas and COJOT product lines.
B. Trading operating profit comprises sale of goods, rendering of services and directly attributable costs, but
excludes finance income and finance costs.
C. Weighted average number of shares net of treasury shares.
D. Refer to supplementary note 1.
Condensed consolidated statement of financial position
Unaudited six months ended Audited
R’000 December 2018 December 2017 June 2018
Assets
Non-Current Assets
Plant and equipment 7 351 7 301 6 619
Goodwill 51 213 24 749 26 582
Intangible assets 18 681 12 247 12 782
Deferred tax assets 1 688 3 802 2 539
78 933 48 099 48 522
Current Assets
Inventories 25 124 16 560 19 080
Current tax receivable 5 678 1 108 1 194
Trade and other receivables 38 841 48 882 35 151
Cash and cash equivalents 18 458 31 542 51 679
88 101 98 092 107 104
Total Assets 167 034 146 191 155 626
Equity and Liabilities
Equity
Equity attributable to owners of the Company
Share capital and preference shares 6 6 6
Share premium 210 164 202 051 202 051
Share-based payment reserve 8 856 5 796 7 428
Foreign currency translation reserve (“FCTR”) (1 058) (5 613) (2 149)
Accumulated loss (84 603) (102 302) (91 008)
Total equity 133 365 99 938 116 328
Liabilities
Non-Current Liabilities
Loans and borrowings 1 309 1 299 1 141
Deferred tax liabilities 2 451 1 025 962
3 760 2 324 2 103
Current Liabilities
Loans and borrowings 461 301 535
Trade and other payables 29 448 35 010 36 631
Current tax payable - 4 898 29
Bank overdraft - 3 720 -
29 909 43 929 37 195
Total Liabilities 33 669 46 253 39 298
Total Equity and Liabilities 167 034 146 191 155 626
Condensed consolidated statement of cash flows
Unaudited six months ended Audited
R’000 December 2018 December 2017 June 2018
Profit before taxation 8 132 27 419 42 710
Adjusted for non-cash items 3 911 5 011 10 909
Working capital changes (9 262) (14 453) (1 621)
Cash generated from operations 2 781 17 977 51 998
Net finance income/ (cost) 96 (125) (83)
Taxation (paid)/received (5 755) 508 (8 140)
Net cash (used in) /from operating activities (2 878) 18 360 43 775
Cash flows from investing activities
Additions to plant and equipment (1 063) (2 645) (3 188)
Proceeds on disposal of plant and equipment - 4 11
Additions to intangible assets (177) (1 215) (2 780)
Acquisition of subsidiary A (30 151) - -
Net cash used in investing activities (31 391) (3 856) (5 957)
Cash flows from financing activities
Repayment of preference shares - (51 000) (51 000)
Receipts of loans and borrowings 94 1 147 1 222
Net cash from/ (used in) financing activities 94 (49 853) (49 778)
Net decrease in cash and cash equivalents for the period (34 175) (35 349) (11 960)
Cash and cash equivalents at the beginning of the year 51 679 65 083 65 083
Effect of exchange rate movement on cash balances 954 (1 912) (1 444)
Total cash and cash equivalents at end of the half year 18 458 27 822 51 679
A. Refer to supplementary note 2.
Condensed consolidated statement of changes in equity
Share
capital Share
and based Accumu-
preference Share payment lated Total
R’000 shares premium reserve FCTR loss equity
Six months ended
Balance at 1 July 2018 6 202 051 7 428 (2 149) (91 008) 116 328
Total comprehensive income
for the period: - - - 1 091 6 405 7 496
- Profit for the period - - - - 6 405 6 405
- Foreign currency translation reserve - - - 1 091 - 1 091
Share-based payment charge for existing options - - 1 428 - - 1 428
Shares issued for mWAVE acquisition * 8 113 - - - 8 113
Balance at 31 December 2018 6 210 164 8 856 (1 058) (84 603) 133 365
Balance at 1 July 2017 6 202 051 4 721 (5 021) (123 927) 77 830
Total comprehensive income for the period - - - (592) 21 625 21 033
- Profit for the period - - - - 21 625 21 625
- Foreign currency translation reserve - - - (592) - (592)
Share based payment charge for existing options - - 1 075 - - 1 075
Balance at 31 December 2017 6 202 051 5 796 (5 613) (102 302) 99 938
Year ended
Balance at 1 July 2017 6 202 051 4 721 (5 021) (123 927) 77 830
Total comprehensive income
for the year: - - - 2 872 32 919 35 791
- Profit for the year - - - - 32 919 32 919
- Foreign currency translation reserve - - - 2 872 - 2 872
Share-based payment charge for existing options - - 2 707 - - 2 707
Ad-hoc Share-based payment charge - - 2 100 - - 2 100
Settlement of ad-hoc share-based payment - - (2 100) - - (2 100)
Balance at 30 June 2018 6 202 051 7 428 (2 149) (91 008) 116 328
* Nominal amount – amount smaller than R1 000.
Segmental analysis
Unaudited six months ended Audited
R’000 December 2018 December 2017 June 2018
Segmental revenue
Alaris Antennas 53 943 62 713 121 968
- Total revenue 54 051 62 740 123 267
- Inter-segmental (108) (27) (1 298)
COJOT 22 071 39 882 65 107
- Total revenue 22 685 40 480 66 544
- Inter-segmental (614) (598) (1 437)
mWAVE A 9 029 - -
- Total revenue 9 029 - -
85 043 102 595 187 075
Earnings before interest, tax, depreciation and amortisation
(EBITDA) B
Alaris Antennas 13 472 21 711 44 840
COJOT 4 789 15 106 19 309
mWAVE A 204 - -
Corporate and consolidation (7 314) (6 790) (16 254)
11 151 30 027 47 895
Profit for the period
Alaris Antennas 9 367 15 492 32 541
COJOT 3 579 11 763 14 945
mWAVE A 146 - -
Corporate and consolidation (6 687) (5 630) (14 567)
6 405 21 625 32 919
Normalised earnings after tax for the period
Alaris Antennas 9 367 15 492 32 541
COJOT 3 579 11 763 14 945
mWAVE A 146 - -
Corporate and consolidation (5 322) (5 556) (12 069)
7 770 21 699 35 417
Segment assets and liabilities
Unaudited six months ended Audited
R’000 December 2018 December 2017 June 2018
Segment assets
Alaris Antennas 72 792 77 753 86 830
COJOT 16 859 33 245 22 570
mWAVE A 14 581 - -
Corporate and consolidation 62 802 35 193 46 226
167 034 146 191 155 626
Segment liabilities
Alaris Antennas (20 217) (25 848) (26 788)
COJOT (7 468) (15 481) (10 703)
mWAVE A (3 402) - -
Corporate and consolidation (2 582) (4 924) (1 807)
(33 669) (46 253) (39 298)
A. mWAVE results are consolidated into the Group from 1 October 2018.
B. EBITDA is trading operating profit per Statement of Profit or Loss excluding depreciation and amortisation.
RECONCILIATION OF PROFIT TO NORMALISED EARNINGS
Unaudited six months ended Audited
R’000 December 2018 December 2017 June 2018
Profit for the year 6 405 21 625 32 919
Legal and consulting costs for acquisitions and disposals 1 365 74 2 498
Normalised earnings after tax comprising A 7 770 21 699 35 417
Alaris Antennas 9 367 15 492 32 541
COJOT 3 579 11 763 14 945
mWAVE 146 -
Corporate and consolidation B (5 322) (5 556) (12 069)
Weighted average number of ordinary shares in issue 118 436 265 116 116 771 116 116 771
Normalised earnings per ordinary share (cents) 6.56 18.69 30.50
A. Normalised earnings, as determined by the Alaris Group, is calculated for the current year by adjusting profit for
the legal and consulting fees for acquisitions.
B. Costs relating to shared services, fees associated with being a listed company, net foreign exchange
gains/losses and costs of the incentive share options of group executives are included in this segment. Net
funding costs are also included in the segment.
Supplementary notes to the condensed consolidated financial statements
For the six months ended 31 December 2018
1. BUSINESS COMBINATION
As announced on SENS the Group concluded an agreement to acquire 100% of the issued share capital of
mWAVE Industries LLC (“the Acquisition”). All conditions precedent to the Acquisition as per the agreement
were fulfilled and the results of mWAVE were included in the Group results from 1 October 2018.
Identifiable net assets and liabilities acquired consist of: Recognised Fair value Carrying
R’000 values adjustments amount
Plant and equipment 974 - 974
Intangible assets - 7 326 7 326
Inventories 6 371 - 6 371
Trade and other receivables 6 770 - 6 770
Cash and Cash equivalents 2 238 - 2 238
Deferred tax - (1 582) (1 582)
Trade and other payables (5 485) - (5 485)
Total identifiable net assets 10 868 5 744 16 612
Goodwill 23 890
Total purchase consideration 40 502
Less: consideration in shares (4.9 million shares) (8 113)
Less: cash acquired (2 238)
Net cash outflow 30 151
Illustrative example of the business combination’s impact for the
period: Revenue Profit after tax
Reported per statement of profit and loss 85 043 6 405
Less: mWAVE acquisition (9 029) (146)
76 014 6 259
Estimated impact of business combination (if acquired 1 July 2018) 19 796 261
Estimated impact of the business combination for the period (1 July 95 810 6 520
to 31 December 2018)
2. FINANCIAL INSTRUMENTS CARRIED AT FAIR VALUE
The carrying values of other financial assets and liabilities, trade and other receivables and trade and other
payables approximate their fair value due to it being short-term in nature. Loans and borrowings consist of finance
leases which approximate their fair value due to it being discounted at the prime lending rate. The Group measures
currency futures at fair value using inputs as described in level 1 of the fair value hierarchy.
3. 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 2018 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.
4. BASIS OF PREPARATION
The condensed consolidated interim results have been presented on the historical cost basis except for the 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). These interim results have not been audited or reviewed by the Group’s
auditors.
5. CHANGES IN ACCOUNTING POLICIES AND DISCLOSURES
The accounting policies applied in the preparation of the condensed consolidated interim financial statements are
in terms of IFRS and are consistent with those applied in the previous consolidated annual financial statements,
except for the changes arising from the adoption of the following significant new accounting pronouncements
which became effective in the current reporting period:
IFRS 15 Revenue from contracts with customers
The Group’s revenue is derived from 2 income streams:
1. Products that are fully configured where an order is received from the customer, the product is
manufactured and then shipped to the customer. The point of recognition is dependent on the sales
contract terms, known as the International Commercial Terms (Incoterms). As the transfer of risks and
rewards generally coincides with the transfer of control at a point in time under the Incoterms, the timing
and amount of revenue recognised by the Group for the sale of these products are not materially affected.
2. Products that are newly developed. For these products a sales contract exists where milestones are clearly
defined which coincides with the definition of performance obligations in IFRS 15. The revenue is recognised
at a point in time as per the performance obligations in the contract. Therefore, the timing and amount of
revenue recognised by the Group for the sale of newly developed products are not materially affected.
The Group applied IFRS 15 using the cumulative effect method. There was no impact on the transition from IAS 18
to IFRS 15 and hence opening retained earnings have not been adjusted.
This standard will result in additional disclosures to the year-end annual financial statements.
IFRS 9 Financial Instruments
Impairment: The standard introduces an expected credit loss (“ECL”) model for the assessment of impairment of
financial assets held at amortised cost. This replaces the ‘incurred loss’ model in IAS 39. The Group has selected to
use the simplified approach to calculate the expected credit loss.
Classification and measurement: The measurement and accounting treatment of the Group’s financial assets have
not materially changed. The financial assets consist of trade receivables and cash and cash equivalents. The trade
receivables are now classified at amortised cost under IFRS 9 where it was classified as loans and receivables under
IAS 39. The value of the gross debtors will not change.
The Group has taken an exemption not to restate comparative information for prior periods with respect to the
classification and measurement (including impairment) requirements of IFRS 9. Differences in the carrying amounts
of impairment from the transition of IAS 39 to IFRS 9 are immaterial. If comparative values had been restated, the
impact would have been to decrease the Group’s opening retained earnings at 1 July 2017 by R71 000. The effect
of initially applying this standard is attributed to the impairment loss being calculated using the IFRS 9 ECL model.
This standard will result in additional disclosures to the year-end annual financial statements.
IFRS 2 Share-based payments
The amendment addresses the classification and measurement of the share-based payment transactions. This
amendment does not have a material impact on the financial statements as the Group has classified share options
as equity-settled share-based payments. With the recent addition of the net settlement feature at the annual
general meeting in January 2019, the Group will continue to classify these as equity-settled share-based payments
in line with the requirements of IFRS 2.
IFRIC 22 Foreign Currency Transactions and Advance Consideration
The interpretation applies to circumstances when an entity has either paid or received an amount of consideration
in advance and in a foreign currency, resulting in a non-monetary asset or liability being recognised. The specific
issue addressed by the interpretation is how to determine the date of the transaction for the purposes of determining
the exchange rate to be used on the initial recognition of the related asset, expense or income when the non-
monetary asset or liability is derecognised. The interpretation specifies that the date of the transaction, for purposes
of determining the exchange rate to apply, is the date on which the entity initially recognises the non-monetary
asset or liability.
The interpretation does not have a material impact on the Group financial statements. Revenue decreased by
R206 000 and the foreign exchange profit increased by R206 000. The profit of the group remained the same.
The following standards and interpretations were in issue but not yet effective:
Standard/ Interpretation Effective date: Expected impact
Years beginning on
or after
IFRS 3, Business Combinations 1 January 2019 The impact of the standard is not expected to be
material.
IFRS 10 Consolidated Financial The effective date The impact of the standard is not expected to be
Statements of this amendment material.
has been deferred
indefinitely until
further notice.
IFRS 16 Leases 1 January 2019 A preliminary assessment is in the process of being
done. Buildings are the most significant lease
agreements that will affect the Group. The Group is
quantifying the impact of operating leases to be
capitalised. The capitalised right of use asset and
liability will approximate the net present value of the
future lease payments of the operating lease
commitments as at 30 June 2020. The Group intends
to apply the cumulative effect transition method
and will not restate comparative amounts for the
year prior to adoption.
IAS 12 Income Taxes 1 January 2019 The impact of the standard is not expected to be
material.
IFRIC 23 Uncertainty over Income 1 January 2019 The impact of the standard is not expected to be
Tax Treatments material.
IAS 8 Accounting Policies, Changes 1 January 2020 The impact of the standard is not expected to be
in Accounting Estimates and Errors material.
6. SUBSEQUENT EVENTS
The directors are not aware of any material event which occurred after the reporting date and up to the date of
this report.
7. 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.
8. DIVIDENDS
No dividend was declared for the period under review.
9. DIRECTORATE
Mr. P Anania was appointed as non-Executive Director to the Board on 1 November 2018. 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
19 March 2019
Johannesburg
Corporate information
ALARIS HOLDINGS LIMITED
(incorporated in the Republic of South Africa) PRINCIPAL SUBSIDIARIES
www.alarisholdings.co.za
Alaris Antennas Proprietary Limited
Directors
Registration Number 2013/048197/07
Coen Bester*^ (Chairman),
Managing Director: Jürgen Dresel
Jürgen Dresel # (CEO),
1 Travertine Avenue,
Richard Willis*^,
N1 Business Park,
Peter Anania*^°, Old Johannesburg Road,
Andries Mellet^, Centurion, 0157
Carel van der Merwe*^ Tel +27 (0)11 034 5300
Gisela Heyman (Financial Director and CFO)
COJOT Oy
*Independent
Registration Number 0620465-3
^Non-executive
#German Managing Director: Samu Lentonen
°American PL 59,
02271 Espoo,
Business address and registered office Finland
1 Travertine Avenue, Tel +358 (0) 9 452 2234
N1 Business Park,
Old Johannesburg Road,
mWAVE Industries LCC
Centurion, 0157
Managing Director: Peter Farnum
(Private Bag X4, The Reeds, Pretoria, 0061)
33R Main Street, Unit 1,
Designated Adviser Windham,
PSG Capital (Pty) Ltd ME 04062
Registration Number 2006/015817/07 USA
Second Floor, Tel +1 (207) 892 0011
11 Alice Lane,
Sandton, 2196 (PO Box 650957, Benmore, 2010)
Company Secretary
Fusion Corporate Secretarial Services
Transfer Secretaries
Computershare Investor Services Proprietary Limited
Registration Number 2004/003647/07
Rosebank Towers,
15 Biermann Avenue,
Rosebank,
Johannesburg, 2196
(PO Box 61051, Marshalltown, 2107)
Auditors
KPMG Inc.
Bankers
Standard Bank
Pretoria
19 March 2019
Designated Adviser
PSG Capital
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