Statement of comprehensive income |  Notes  |  Balance sheets   |   Statement of changes in equity  |  Cash flow statement  

 Supplementary information  |  Segment Analysis  |  Message to our shareholders

 
Notes  

 R millions
             
    Six months   Six months   Year
    ended   ended   ended
    31-Aug-09   31-Aug-08   29-Feb-2009
  %          
  Change (Unaudited)   (Unaudited)   (Audited)
             
Headline earnings per share (cents)

12

               292

 

261

 

571

Diluted headline earnings per share (cents)

12

               281

 

251

 

547

Adjusted headline earnings per share (cents)

13

               304

 

             269

 

             592

Diluted adjusted headline earnings per share (cents)

13

               293

 

             259

 

             567

             
Basis of preparation            
The unaudited interim financial results have been prepared in accordance with International Financial Reporting Standards (IFRS), and in terms of IAS 34. 
The accounting policies used in the preparation of these interim results are consistent with those used in the annual financial statements for the year ended 28 February 2009.
             
        Figures in R million
             
1.     Capital items              
     Net profit/(loss) on disposal of property, plant and equipment  

                   2

 

                1

 

               (2)
      

 

 

 

 

 
2.     Reconciliation between earnings and    

 

 

 

 

 
headline earnings   

 

 

 

 

 
Attributable earnings  

               284

 

             253

 

             549

Capital items   -  gross  

                 (2)

 

               (1)

 

                 2

Headline earnings  

               282

 

             252

 

             551

Dilutive earnings attributable to BBBEE minorities in a subsidiary  

                 (3)

 

               (2)

 

               (6)
Fully diluted headline earnings  

               279

 

             250

 

             545

   

 

 

 

 

 
3.     Reconciliation between earnings and    

 

 

 

 

 
        and fully diluted earnings  

 

 

 

 

 
Attributable earnings  

               284

 

             253

 

             549

        Dilutive earnings attributable to BBBEE minorities in a subsidiary  

                 (3)

 

               (2)

 

               (6)
Fully diluted earnings  

               281

 

             251

 

             543

   

 

 

 

 

 
4.     Reconciliation between earnings and    

 

 

 

 

 
adjusted headline earnings   

 

 

 

 

 
Attributable earnings  

               284

 

             253

 

             549

Capital items   -  gross  

                 (2)

 

               (1)

 

                 2

Amortisation of intangible assets arising on business combination  

                 14

 

                9

 

               25

Tax effect of  adjustments  

                 (2)

 

               (1)

 

               (5)
Adjusted headline earnings  

               294

 

             260

 

             571

Dilutive earnings attributable to B-BBEE minotities in a subsidiary  

                 (3)

 

               (2)

 

               (6)
Fully adjusted diluted headline earnings  

               291

 

             258

 

             565

             
5.    Dividends            
        It is group policy for dividends to be declared after the financial year.           

 

Acquisitions

Acquisition of 100 % interest in Fleetcall (Proprietary) Limited
The group acquired 100 % of the issued share capital of Fleetcall (Proprietary) Limited on 1 March 2009. The maximum purchase price is R 75 million, payable in cash. The purchase price is payable as follows :
 
- first tranche : R 48 million            
- second tranche : R 24 million            
           
The second tranche will be paid in terms of an earn out mechanism over one year based on after tax profit targets for the year ending February 2010 being achieved.
           
The acquired business contributed revenues of R 28 million and net profit after tax of R 8 million to the group for the period 1 March 2009
- 31 August 2009. 
These amounts have been calculated using the group's accounting policies.
           
           
Fleetcall is the largest Trunked Two-way Radio Operator in South Africa      
          Carrying
The acquiree's balance sheet at the date of acquisition is as follows :       amount
Property, plant and equipment                        28 
Inventories                         1 
Trade and other receivables                        10 
Trade and other payables                       (11)
Deferred tax                        (4)
Tax                        (3)
Cash and cash equivalents                         4 
Net identifiable assets and liabilities                        25 
Goodwill on acquisition                        45 
Total consideration                        70 
           
The amount reflected above as goodwill on acquisition will be finally allocated between intangibles and goodwill prior to year-end.
           
Acquisition of 100 % interest in Lateral Technology Concepts (Proprietary) Limited ("Technology Concepts")
           
The group  acquired 100 % of the issued share capital of Technology Concepts on 1 March 2009. The maximum purchase price is R 45 million payable in cash. The purchase price is payable as follows :
           
- initial payment of R 7.5 million            
- the remaining maximum payments of R 37.5 million will be paid in terms of an earn out mechanism over  
two years based on after tax profit targets for the year ending February 2010 and 2011 being achieved  
           
Technology Concepts is an established Information Technology business and corporate Internet Service Provider.
           
The acquired business contributed revenues of R 14 million and net profit after tax of R 2 million to the group for the period 1 March 2009 - 31 August 2009. 
These amounts have been calculated using the group's accounting policies. 
           
           
The acquiree's balance sheet at the date of acquisition is as follows :       Carrying
          amount
Property, plant and equipment                         2 
Inventories                         1 
Trade and other receivables                         3 
Trade and other payables                        (2)
Cash and cash equivalents                         -  
Net identifiable assets and liabilities                         4 
Goodwill on acquisition                        36 
Total consideration                        40 
           
The amount reflected above as goodwill on acquisition will be finally allocated between intangibles and goodwill prior to year-end.
           
           
Acquisition of 50% plus one share interest in NuPay (Pty) Limited ("NuPay")
The group acquired 50% plus 1 share of the issued share capital of NuPay on 1 June 2009 for a consideration of R53,5m.
           
The acquired business contributed revenues of R 24 million and net profit after tax of R 2. 5 million to the group for the period 1 June 2009 - 31 August 2009. 
If the acquisition had occurred on 1 March 2009, group revenue and net profit  
after tax before allocations would have increased by R 48 million and R 5 million respectively. These amounts have been calculated using the group's accounting policies.
           
The acquiree's balance sheet at the date of acquisition is as follows:
           
          Carrying
          amount
Property, plant and equipment                       5 
Trade and other receivables                       6 
Trade and other payables                    (10)
Cash and cash equivalents          

 3 

Tax                      (1)
Net identifiable assets and liabilities                       3 
Attributable to minorities                      (1.5)
Goodwill on acquisition                     52.0 
Total consideration                     53.5 
           
The amount reflected above as goodwill on acquisition will be finally allocated between intangibles and goodwill prior to year-end.
           
           
Acquisition of the Altech Netstar franchisees in Nelspruit and Polokwane
During the period under review the group acquired 100% of the Altech Netstar franchisees in Nelspruit and Polokwane with effect from 1 April 2009 and 1 May 2009 respectively.
           
The acquired business contributed revenues of R 6.5 million and net profit after tax of R 0.9 million to the group for the period ended 31 August 2009.  
If the acquisitions had occurred on 1 March 2009, group revenue and net profit after tax before allocations would have increased by R 11.4 million and R 1.3 million respectively.These amounts have been calculated using the group's accounting policies and by adjusting the results of the subsidiaries to reflect amortisation on the fair value adjustments to intangible assets from 1 March 2009, together with the consequential tax effects. 
           
The acquirees' combined balance sheets at the date of acquisition were as follows:    
   Rm           
Total consideration           24          
Fair value of net assets acquired             1          
Intangible assets           23          
           
           
           
Disposal of Namitech South Africa, a division of Altech Information Technologies (Proprietary) Limited
           
On 1 April 2009 the group disposed of the net assets of Namitech South Africa division for R 82.2 million to Gemalto.
The net assets were shown as held for sale at 28 February 2009.        
           
           
Post-Balance sheet events            
           
Altech together with its partner, Sameer has acquired significant bandwith capacity on the SEACOM undersea cable system.
Altech/Sameer has procured two STM-16s from SEACOM (equivalent to 5 Gbps), for US 69.3million payable over a period, of which USD 20m was paid in September 2009.
           

 

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