| JSE Company News (SENS)
2007/03/01 05:09:26 PM |
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| JSE Code: CCL |
| Date: 2007/03/01 |
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| CCL |
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CCL - Compu-Clearing - Reviewed Results For The Six Month Period Ended 31 |
| December 2006 |
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COMPU-CLEARING OUTSOURCING LIMITED |
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(Registration number 1998/015541/06) |
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(Incorporated in the Republic of South Africa) |
| Share Code: CCL & ISIN: ZAE000016564 |
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("Compu-Clearing" or "the Company") |
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Reviewed results for the six month period ended 31 December 2006 |
| Commentary |
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It is with pleasure that we present our results for the six month period |
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that ended 31 December 2006. Although headline earnings have remained |
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constant, results are good with excellent cash flows notwithstanding |
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payment of a dividend of 11 cents per share and a distribution of share |
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premium of 9 cents per share. Whilst we have achieved a pleasing 8% |
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increase in revenues, the effect on earnings has been impacted by increased |
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costs. The principal cause of the increase in costs are development and |
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advertising expenditures incurred on new products. These expenses are of a |
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non-recurring nature and consequently, we expect operating margins to |
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improve in the second half. There was a considerable increase in our |
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business partner expenses, as a result of the lengthy implementation |
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process at a major new installation. The successful completion of this |
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project, together with the commencement of revenues therefrom are set to |
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further strengthen second half performance. |
| Prospects |
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The second half, traditionally evidences revenue growth. We expect this to |
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continue and to be enhanced by the new implementation mentioned above. |
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Increased contribution from new products and cost reductions are expected |
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to further strengthen second half performance. |
| Condensed Balance Sheet |
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31 31 30 June |
| December December 2006 |
|
2006 2005 (Audited) |
|
(Reviewed) (Reviewed) R'000 |
| R'000 R'000 |
| ASSETS |
|
Non current 14,788 13,578 15,879 |
| assets |
|
Property, 13,569 11,798 14,370 |
| plant and |
| |
| equipment |
|
Intangible 840 1,396 1,111 |
| asset |
|
Deferred 379 384 398 |
| taxation asset |
|
Current assets 26,619 26,135 29,194 |
|
Inventory 69 64 75 |
|
Trade and 5,699 5,977 7,183 |
| other receivables |
|
Taxation 805 509 18 |
| receivable |
|
Investments 2,513 5,204 2,296 |
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Cash and cash 17,533 14,381 19,622 |
| equivalents |
| |
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Total assets 41,407 39,713 45,073 |
| |
| EQUITY AND |
| LIABILITIES |
|
Equity 37,539 35,295 40,343 |
|
Share capital 9,470 12,664 12,461 |
| and premium |
|
Treasury (1,000) (1,917) (804) |
| shares |
|
Distributable 29,069 24,548 28,686 |
| reserves |
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Non-current 1,820 1,598 1,824 |
| liabilities |
|
Post 1,597 1,416 1,583 |
| retirement |
| medical |
| obligations |
|
Deferred 223 182 241 |
| taxation |
| liability |
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Current 2,048 2,820 2,906 |
| liabilities |
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Trade and 2,048 2,570 2,906 |
| other payables |
|
Taxation - 250 - |
| |
| payable |
| |
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Total equity and 41,407 39,713 45,073 |
| liabilities |
| |
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Net asset value 94.3 91.6 103.9 |
| per share (cents) |
| Condensed Income Statement |
| 6 months ended Year |
| ended |
|
% Inc. 31 31 30 June |
|
/ December December 2006 |
| (decr.) 2006 2005 (Audited) |
| (Reviewed) (Reviewed) |
|
R'000 R'000 R'000 |
| |
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Rental and 8 20,811 19,355 39,759 |
| other revenue |
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Operating costs 16,617 14,542 30,260 |
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- Distribution 10,526 9,667 21,961 |
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- 5,709 4,793 7,528 |
| Administration |
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- Other 382 82 771 |
| |
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Operating (13) 4,194 4,813 9,499 |
| profit |
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Net financing 977 853 1,648 |
| income |
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- Financial 978 1,061 1,843 |
| income |
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- Financial (1) (208) (195) |
| expenses |
| |
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Profit before (9) 5,171 5,666 11,147 |
| taxation |
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Taxation- 1,134 1,654 3,082 |
| company |
| Taxation- STC 538 480 480 |
| (secondary |
| tax on |
| |
| companies) |
|
Profit for the (1) 3,499 3,532 7,585 |
| year |
| |
|
Actual number of shares 39,803 38,511 38,836 |
| in issue ('000) |
|
Weighted 39,385 38,494 38,609 |
| average number |
| of shares in |
| issue ('000) |
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Diluted 39,932 40,681 40,589 |
| weighted |
| average number |
| of shares in |
| issue ('000) |
| |
| Earnings per |
| share (cents) |
|
Basic (3) 8.9 9.2 19.6 |
|
Diluted 1 8.8 8.7 18.7 |
|
Ordinary 10 11.0 10.0 10.0 |
| dividend per |
| share (cents) |
| Headline |
| earnings per |
| share (cents) |
|
Basic (4) 8.9 9.3 19.9 |
|
Diluted 0 8.8 8.8 18.9 |
|
Reconciliation of headline earnings |
| 6 months ended Year |
| ended |
|
31 31 30 June |
| December December 2006 |
|
2006 2005 (Audited) |
| (Reviewed) (Reviewed) |
|
R'000 R'000 R'000 |
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Profit for the 3,499 3,532 7,585 |
| year |
| Adjusted for : |
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Loss on disposal 24 50 123 |
| |
| of property, |
| plant and |
| equipment |
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Taxation effect (7) (15) (36) |
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Headline 3,516 3,567 7,672 |
| earnings |
| Condensed segment report |
| 6 months ended Year |
| ended |
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% Inc. 31 31 30 June |
|
/ December December 2006 |
| (decr.) 2006 2005 (Audited) |
| (Reviewed) (Reviewed) |
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Local sources R'000 R'000 R'000 |
| |
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Software 11 15,234 13,691 28,537 |
| rental revenue |
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Hardware (3) 4,404 4,535 9,064 |
| rental revenue |
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Other 4 1,173 1,129 2,158 |
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Total revenue 8 20,811 19,355 39,759 |
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Operating (13) 4,194 4,813 9,499 |
| profit |
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Operating 20% 25% 24% |
| margin |
|
Condensed Cash Flow Statement |
| 6 months ended Year |
| ended |
|
31 31 30 June |
| December December 2006 |
|
2006 2005 (Audited) |
| (Reviewed) (Reviewed) |
|
R'000 R'000 R'000 |
| |
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Operating 4,194 4,813 9,499 |
| profit |
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Non cash items 1,572 1,302 2,576 |
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Cash generated by 5,766 6,115 12,075 |
| operations |
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Increase/ (decrease) 14 (60) 107 |
| |
| in post retirement |
| medical obligations |
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Decrease / (increase) 632 374 (507) |
| in working capital |
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Cash generated 6,412 6,429 11,675 |
| by operations |
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Net financing 977 853 1,648 |
| income |
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- Financial 978 1,061 1,843 |
| income |
|
- Financial (1) (208) (195) |
| expenses |
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Income tax paid (2,457) (374) (1,516) |
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Distributions (7,883) (3,847) (3,847) |
| to shareholders |
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- Dividends (4,307) (3,847) (3,847) |
| paid |
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- Distribution (3,576) - - |
| of share |
| premium |
| |
|
Cash (out) / (2,951) 3,061 7,960 |
| inflow from |
| operating |
| activities |
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Cash flow from (666) (1,423) (1,991) |
| investing |
| activities |
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Acquisition of (350) (737) (4,168) |
| property, plant |
| and equipment |
|
Acquisition of (99) (65) (110) |
| intangible |
| asset |
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(Acquisition)/ (217) (621) 2,287 |
| disposal of |
| other |
| investments |
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Cash inflow 1,528 149 1,059 |
| from financing |
| |
| activities |
| - Issue of shares and |
| sale of treasury |
| shares |
|
(Decrease) / Increase (2,089) 1,787 7,028 |
| in cash and cash |
| equivalents |
| Cash and cash |
| equivalents at the |
| beginning of the |
| period |
|
19,622 12,594 12,594 |
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Cash and cash 17,533 14,381 19,622 |
| equivalents at the end |
| of the period |
| |
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Statement of changes in equity |
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Share Share Treasury Retained Share- Total |
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capital premium shares earnings based |
| payment |
| reserve |
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R'000 R'000 R'000 R'000 R'000 R'000 |
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Balance at 30 June 400 12,061 (1,863) 24,380 418 35,396 |
| 2005 |
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Sale of treasury 1,059 1,059 |
| shares |
|
Recognised income 7,585 7,585 |
| and expense |
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Dividends paid (3,847) (3,847) |
|
Share-based payment 150 150 |
| transaction |
| |
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Balance at 30 June 400 12,061 (804) 28,118 568 40,343 |
| 2006 |
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Sale of treasury (196) 1,139 943 |
| shares |
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New share allotments 6 579 585 |
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Recognised income 3,499 3,499 |
| and expense |
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Dividends paid (4,307) (4,307) |
| |
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Distribution of (3,576) (3,576) |
| share premium |
|
Share-based payment 228 (176) 52 |
| transaction |
| |
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Balance at 31 406 9,064 (1,000) 28,677 392 37,539 |
| December 2006 |
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| Basis of preparation |
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The condensed financial statements have been prepared in accordance with |
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International Financial Reporting Standards. The accounting policies |
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applied are consistent with those reflected in the financial statements for |
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the year ended 30 June 2006. |
| Review report |
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The Group's auditors KPMG Inc, have reviewed the financial information for |
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the six months ended 31 December 2006. Their review report is available for |
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inspection at the registered office of the Company. |
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Distributions to shareholders |
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A dividend of 11 cents per share, relating to the 2006 financial year, was |
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declared during the period. In addition a distribution of share premium of |
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9 cents per share was made to shareholders. |
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Notice is hereby given that, in terms of a general authority granted on 25 |
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October 2006, the board of directors has further resolved to distribute to |
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ordinary shareholders a portion of the share premium account (`the |
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distribution`). The distribution will amount to 10 cents per ordinary share |
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(2005: Nil). The following salient dates to the distribution will apply: |
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Last date to trade `cum` the distribution Thursday,.15 March 2007 |
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Trading commences `ex` the distribution Friday, 16 March 2007 |
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Record date Friday, 23 March 2007 |
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Date of payment Monday, 26 March 2007 |
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Share certificates may not be dematerialised or rematerialised during the |
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period Friday, 16 March to Friday, 23 March 2007, both days inclusive. |
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The following table illustrates the effect of the distribution of share |
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premium on the earnings and net asset value per Compu-Clearing ordinary |
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share and is based on these reviewed results. These financial effects are |
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prepared for illustrative purposes only, are the responsibility of the |
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board and because of their nature, may not give a true indication of the |
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company's financial position and results of operations. |
| Before After Change% |
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Earnings per share (cents) 8.9 8.5 -4.3 |
| |
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Headline earnings per share (cents) 8.9 8.5 -4.3 |
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Net asset value and net tangible asset 94.3 86.0 -8.8 |
| value per share (cents) |
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It is assumed that the capital distribution has been paid to shareholders |
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on 1 July 2006, based on a reduction of R4,003,845 and an after tax |
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interest rate of 7.48% earned on cash resources. |
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Compu-Clearing will consider further distributions to shareholders once its |
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results for the year ended 30 June 2007 have been finalised. |
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For and on behalf of the Board |
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Johannesburg A.Garber J. du Preez |
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2 March 2007 (Chairman) (Chief |
| Executive) |
| Directors: A.Garber, J.du Preez, A.Katz*, M.Lutrin*, D. Rosevear*, |
| Dr.T.M.Mogale*, M.Steele*, A. Webb*, C.P. Efthymiades, M.Acosta-Alarcon |
| *(Non-executive) |
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Transfer secretaries: Registered office: |
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Computershare Investor Services 2004 Limited 7 Drome Road |
| GroundFloor Lyndhurst, 2192 |
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70 Marshall Street PO Box 890856 |
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Johannesburg, 2001 Lyndhurst, 2106 |
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Date: 01/03/2007 17:00:01 Produced by the JSE SENS Department. |
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