References in this announcement to “R” are to South African rand and references to “U.S. dollars” and “$” are to United States dollars. Unless otherwise stated MiX Telematics has translated U.S. dollar amounts from South African rand at the exchange rate of R10.1012 per $1.00, which was the R/$ exchange rate reported by the South African Reserve Bank as of September 30, 2013.
Second Quarter Highlights:
- Total subscription revenue of R207 million ($20.5 million), grew over 25% year on year
- Total vehicles under subscription increased by 28% year over year, bringing the total to over 404,000 subscribers at September 30, 2013
- Total revenue of R315 million ($31.2 million), grew 11% year over year
- Adjusted EBITDA of R67 million ($6.6 million), representing a 21% Adjusted EBITDA margin
- In August 2013, the Company raised R650 million ($65.5 million) in proceeds before expenses through the initial public offering of ADRs on the NYSE
- Company raises guidance for subscription revenue, and reiterates guidance for total revenue, Adjusted EBITDA and earnings per share, for the full year fiscal 2014
MIDRAND, South Africa--(BUSINESS WIRE)--MiX Telematics Limited (NYSE: MIXT, JSE: MIX), a leading global provider
of fleet and mobile asset management solutions delivered as
Software-as-a-Service (SaaS), today announced financial results for its
second quarter and first half of fiscal year 2014, each of which ended
September 30, 2013.
“We are pleased to report strong second quarter results, which were
highlighted by 25% subscription revenue growth and over 27,000
subscriber additions that pushed our total subscriber base over the
400,000 milestone,” said Stefan Joselowitz, Chief Executive Officer of
MiX Telematics. “Adoption of both fleet and consumer products is
increasing in our target markets, and MiX Telematics is well positioned
to be a prime beneficiary of growth opportunities as we have already
achieved meaningful scale, built a global distribution network, and
offer scalable, state-of-the-art solutions that yield a powerful return
on investment.”
Financial Performance for the three months
ended September 2013
Revenue: Total revenue was R315.0 million ($31.2 million), an
increase of 10.9% compared to R284.0 million ($28.1 million) for the
second quarter of fiscal year 2013. Subscription revenue was R207.1
million ($20.5 million), an increase of 25.5% compared with R165.0
million ($16.3 million) for the second quarter of fiscal year 2013. This
was driven primarily by an increase of over 89,000 vehicles under
subscription since the end of the second quarter of fiscal year 2013.
Hardware and other revenue was R107.9 million ($10.7 million), a
decrease of 9.3% compared to R119.0 million ($11.8 million) for the
second quarter of fiscal year 2013, when hardware revenues were elevated
due to the upfront hardware purchases associated with two major
contracts in the North American fleet solutions segment.
Gross Profit: Gross profit was R204.2 million ($20.2 million), an
increase compared to R185.5 million ($18.4 million) for the second
quarter of fiscal year 2013. Gross profit margin was 64.8%, compared to
65.3% for the second quarter of fiscal year 2013.
Operating Profit: Operating profit was R44.2 million ($4.4
million), representing an operating margin of 14.0% and compared to
R41.6 million ($4.1 million) for the second quarter of fiscal year 2013
when the operating margin was 14.6%. The second quarter of fiscal year
2014 included additional investments in headcount, expenses incurred by
the start-up operation in Brazil and non-recurring expenses of R8.5
million ($0.8 million) related to the initial public offering (“IPO”) of
ADRs on the NYSE. These additional costs were partially offset by an
unrealized foreign exchange gain of R10.5 million ($1.0 million)
relating to the IPO proceeds, which are maintained in U.S. dollars and
are therefore sensitive to R:$ exchange rate movements. The combination
of these factors had a slightly dilutive effect on the quarter’s
operating margin.
Profit for the period: Profit for the period was R30.3 million
($3.0 million), compared to R28.8 million ($2.9 million) in the second
quarter of fiscal year 2013. Earnings per diluted ordinary share was 4
South African cents, consistent with the second quarter of fiscal year
2013.
On a U.S. dollar basis, and using the September 30, 2013 exchange rate
of 10.1012 rands per U.S. dollar, and at a ratio of 25 ordinary shares
to one ADR, profit for the period was $3.0 million, or 10 U.S. cents per
diluted ADR.
Adjusted EBITDA: Adjusted EBITDA, a non-IFRS measure, was R66.9
million ($6.6 million) a decrease of 3.5% compared to R69.3 million
($6.9 million) for the second quarter of fiscal year 2013. The Adjusted
EBITDA margin for the second quarter of fiscal year 2014 was 21.2%, down
from the 24.4% Adjusted EBITDA margin in the second quarter of fiscal
year 2013 due primarily to increased operating costs as a result of an
investment in headcount, as well as the impact of the expected losses
incurred by the start-up operation in Brazil. Operating profit was R44.2
million ($4.4 million) representing an operating margin of 14.0% and
compared to R41.6 million ($4.1 million) for the second quarter of
fiscal year 2013 when the operating margin was 14.6%. Adjusted EBITDA is
defined as profit for the period before income taxes, net interest
income/(expense), depreciation of property, plant and equipment
including capitalized customer in-vehicle devices, amortization of
intangible assets including capitalized in-house development costs,
share-based compensation costs, transaction costs arising from the
acquisition of a business, restructuring costs, profits/(losses) on the
disposal or impairments of assets or subsidiaries, certain non-recurring
initial public offering costs, and unrealized foreign exchange
gains/(losses).
A reconciliation of Adjusted EBITDA and Adjusted EBITDA margin for the
three months ended September 30, 2013 and 2012 is provided in the
financial tables that accompany this release.
Statement of Financial Position and Cash Flow: At September 30,
2013, MiX Telematics had R767.8 million ($76.0 million) of cash and cash
equivalents, an increase from R150.3 million ($14.9 million) at June 30,
2013 due primarily to the R649.9 million ($65.5 million) in net proceeds
(before expenses) raised from the IPO during the second quarter.
MiX Telematics generated R44.3 million ($4.4 million) in net cash from
operating activities for the three months ended September 30, 2013 and
invested R32.8 million ($3.2 million) in capital expenditures during the
quarter, leading to free cash flow of R11.5 million ($1.1 million) for
the second quarter of fiscal year 2014, compared with free cash flow of
R9.1 million ($0.9 million) for the second quarter of fiscal year 2013.
Free cash flow is determined as net cash generated from operating
activities less capital expenditure per investing activities.
Financial Performance for the six months ended
September 2013
Revenue: Total revenue for the first six months of fiscal year
2014 was R613.4 million ($60.7 million), an increase of 8.7% compared to
R564.3 million ($55.9 million) for the first half of fiscal year 2013.
Subscription revenue increased to R401.3 million ($39.7 million), up
23.7% from R324.4 million ($32.1 million) for the first half of last
year. Subscription revenue growth was driven primarily by the increased
number of vehicles under subscription since the first half of fiscal
year 2013.
Operating Profit: Operating profit for the first six months of
fiscal year 2014 was R80.3 million ($7.9 million), up from R76.3 million
($7.6 million) posted in the first half of last year. The operating
margin for the first half of fiscal year 2014 was 13.1%, compared to the
13.5% posted in the first half of last year.
Adjusted EBITDA: Adjusted EBITDA was R132.1 million ($13.1
million) compared to R129.9 million ($12.9 million) in the first half of
fiscal year 2013. The Adjusted EBITDA margin for the first half of this
year was 21.5%, slightly below the 23.0% posted in the first half of
fiscal year 2013, primarily due to increased operating costs as a result
of an investment in headcount, as well as the impact of the expected
losses incurred by the start-up operation in Brazil. Adjusted EBITDA is
defined as profit for the period before income taxes, net interest
income/(expense), depreciation of property, plant and equipment
including capitalized customer in-vehicle devices, amortization of
intangible assets including capitalized in-house development costs,
share-based compensation costs, transaction costs arising from the
acquisition of a business, restructuring costs, profits/(losses) on the
disposal or impairments of assets or subsidiaries, certain non-recurring
initial public offering costs, and unrealized foreign exchange
gains/(losses).
A reconciliation of Adjusted EBITDA and Adjusted EBITDA margin for the
six months ended September 30, 2013 and 2012 is provided in the
financial tables that accompany this release.
Segment commentary for the six months ended
September 2013
Regional performance
Africa: Total revenue from the Africa region represented 52.5% of
our business for the first half of the fiscal year.
Africa consumer solutions: The Africa consumer business
contributed 27.0% of the total revenue for the first half of the fiscal
year. Subscribers under management grew 13.3% and subscription revenue
growth was up approximately 10%. Adjusted EBITDA of R49.1million ($4.9
million) grew 23.3% versus the comparative period last year. While total
revenue was flat year over year, the first half of the fiscal year 2013
included R10.7 million ($1.1 million) of revenue related to connection
incentive bonuses from our cellular network provider, which we opted to
forgo from July 2012 in favor of lower data costs.
Africa fleet solutions: The Africa fleet business contributed
25.5% of total revenue and was up 16.6% compared to the prior fiscal
year. At an Adjusted EBITDA level it grew 12.8% compared to the first
half of fiscal year 2013 and posted a 29.9% margin.
Europe fleet solutions: The European business represented 11.2%
of our total revenue for the first half of fiscal year 2014 and despite
continuing economic headwinds in the region, grew subscribers by 14.6%.
The restructuring actions undertaken in the first quarter contributed to
Europe showing a small positive contribution at the Adjusted EBITDA
level for the first half of fiscal year 2014.
North America fleet solutions: The Americas represented 10.2% of
our total revenue. North American subscribers grew by 16.7% compared to
the first half of fiscal year 2013. We believe the premium fleet market
is highly under penetrated in the Americas, and are investing in sales
and distribution capacity in the region. The region posted a loss of
R2.1 million ($0.2 million) at the Adjusted EBITDA level.
Middle East and Australasia fleet solutions: The Middle East and
Australasia region grew 42.5% year over year, and represented 25.1% of
total first half revenue. The Adjusted EBITDA was flat primarily due to
an investment in headcount and infrastructure necessary to support
continued growth in this region.
Brazil fleet solutions: Our Brazil operation launched last
quarter in São Paulo and showed modest revenue for the six month period.
Brazil made an expected loss amounting to R5.4 million ($ 0.5 million)
at the Adjusted EBITDA level and is not expected to break even for the
current fiscal year.
International CSO fleet solutions and development: MiX
International is a central services organization that wholesales our
products and services to our regional operations and distributors who in
turn, interface with our end-customers. MiX International showed growth
both at the revenue and Adjusted EBITDA level.
Business Outlook
MiX Telematics has translated U.S. dollar amounts in this Business
Outlook paragraph from South African rand at the exchange rate of
R10.1658 per $1.00, which was the R/$ exchange rate reported by the
South African Reserve Bank as of November 5, 2013.
Based on information as of today, November 7, 2013, the Company is
issuing the following financial guidance for the full 2014 fiscal year:
-
Revenue - R1,270 million to R1,300 million ($124.9 million to $127.9
million), which would represent revenue growth of 8% to 11% compared
to fiscal year 2013.
-
Subscription revenue - R825 million to R833 million ($81.2 million to
$81.9 million), which would represent subscription revenue growth of
20% to 21% compared to fiscal year 2013.
-
Adjusted EBITDA - R270 million to R280 million ($26.6 million to $27.5
million).
-
Earnings per diluted ordinary share of 15 to 16 South African cents
based on 770 million diluted ordinary shares in issue, an exchange
rate of R10.1658 per $1 and based on an effective tax rate of 28% to
31%. At a ratio of 25 ordinary shares to one ADR, this equates to
earnings per diluted ADR of 37 to 39 U.S. cents.
For the third quarter of fiscal year 2014 the Company expects
subscription revenue to be in the range of R209 million to R214 million
($20.6 million to $21.1 million) which would represent subscription
revenue growth of 19% to 22% compared to the third quarter of fiscal
year 2013.
The key assumptions used in deriving the forecast are as follows:
-
Growth in subscription revenue and vehicles under subscription are
based on expected growth rates related to market conditions and takes
into account growth rates achieved previously.
-
Costs have been increased to take into account the Company's strategy
of investing in sales and marketing and development and also include
costs necessary to operate as a U.S. listed company.
The forecast is the responsibility of the board of directors and has not
been reviewed or reported on by the Company’s external auditors. The
Company’s policy is to give guidance on a quarterly basis, if necessary,
and does not update guidance between quarters.
The information disclosed in this “Business Outlook” paragraph complies
with the disclosure requirements in terms of paragraph 8.38 of the JSE
Listings Requirements which deals with profit forecasts.
Quarterly Reporting Policy in respect of JSE
Listing Requirements
Following the listing of the Company’s ADRs on the New York Stock
Exchange, the company has adopted a quarterly reporting policy. As a
result of such quarterly reporting the company is, in terms of paragraph
3.4(b)(ix) of the JSE Listings Requirements, not required to publish
trading statements in terms of paragraph 3.4(b)(i) to (viii) of the JSE
Listings Requirements.
Conference Call Information
MiX Telematics management will also host a conference call and audio
webcast at 8:00 a.m. Eastern Time (3:00 p.m. South African Time) today,
November 7, 2013 to discuss the Company's financial results and current
business outlook.
-
The live webcast of the call will be available at the “Investor
Information” page of the Company’s website, http://investor.mixtelematics.com.
-
To access the call, dial 1-888-500-6950 (within the United States) or
0 800 999 558 (within South Africa) or 1-719-325-2495 (outside of the
United States).
-
A replay of this conference call will be available for a limited time
at 1-877-870-5176 (within the United States) or 1-858-384-5517 (within
South Africa or outside of the United States). The replay conference
ID is 1605602.
-
A replay of the webcast will also be available for a limited time at http://investor.mixtelematics.com.
About MiX Telematics
MiX Telematics is a leading global provider of fleet and mobile asset
management solutions delivered as SaaS to customers in 112 countries.
The Company’s products and services provide enterprise fleets, small
fleets and consumers with solutions for safety, efficiency,risk and
security. MiX Telematics was founded in 1996 and has offices in South
Africa, the United Kingdom, the United States, Uganda, Brazil, Australia
and the United Arab Emirates as well as a network of more than 130 fleet
partners worldwide. MiX Telematics shares are publicly traded on the
Johannesburg Stock Exchange (JSE: MIX) and MiX Telematics American
Depositary Receipts are listed on the New York Stock Exchange (NYSE:
MIXT). For more information visit www.mixtelematics.com.
Forward-Looking Statements
This press release includes certain “forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of 1995,
including statements concerning our financial guidance for the third
quarter of fiscal year 2014 and the full year of fiscal year 2014, our
position to execute on our growth strategy, and our ability to expand
our leadership position. These forward-looking statements include, but
are not limited to, plans, objectives, expectations and intentions and
other statements contained in this press release that are not historical
facts and statements identified by words such as "expects,"
"anticipates," "intends," "plans," "believes," "seeks," "estimates" or
words of similar meaning. These forward-looking statements reflect our
current views about our plans, intentions, expectations, strategies and
prospects, which are based on the information currently available to us
and on assumptions we have made. Although we believe that our plans,
intentions, expectations, strategies and prospects as reflected in or
suggested by those forward-looking statements are reasonable, we can
give no assurance that the plans, intentions, expectations or strategies
will be attained or achieved. Furthermore, actual results may differ
materially from those described in the forward-looking statements and
will be affected by a variety of risks and factors that are beyond our
control including, without limitation, the Company's ability to attract,
sell to and retain customers; the Company's anticipated growth
strategies, including its ability to increase sales to existing
customers, the introduction of new solutions and international
expansion; the Company's ability to adapt to rapid technological change
in its industry; competition from industry consolidation; loss of key
personnel or the Company's failure to attract, train and retain other
highly qualified personnel; the Company's ability to integrate any
businesses it acquires; the Company's dependence on its network of
dealers and distributors to sell its solutions; the Company's dependence
on key suppliers and vendors to manufacture its hardware; businesses may
not continue to adopt fleet management solutions; the Company's future
business development, results of operations and financial condition;
expected changes in the Company's profitability and certain cost or
expense items as a percentage of its revenue; changes in the practices
of insurance companies; the impact of laws and regulations relating to
the Internet and data privacy; the Company's ability to protect its
intellectual property and proprietary technologies and address any
infringement claims; significant disruption in service on, or security
breaches of, the Company's websites or computer systems; the Company's
dependence on third-party technology; fluctuations in the value of the
South African rand; economic, social, political, labour and other
conditions and developments in South Africa and globally; the Company's
ability to issue securities and access the capital markets in the
future; and other risks set forth under the caption “Risk Factors” in
the Company’s final prospectus related to its initial public offering
filed pursuant to Rule 424b under the Securities Act of 1933, as
amended, with the Securities and Exchange Commission (the "SEC") on
August 12, 2013, as updated by the Company's filings that it makes with
the SEC. The Company assumes no obligation to update any forward-looking
statements contained in this press release as a result of new
information, future events or otherwise.
Non - IFRS financial measures
Adjusted EBITDA
To provide investors with additional information regarding the Company's
financial results, it has disclosed within this press release Adjusted
EBITDA, which is a non-IFRS financial measure. Adjusted EBITDA is
defined as the profit for the period before income taxes, net interest
income/(expense), depreciation of property, plant and equipment
including capitalized customer in-vehicle devices, amortization of
intangible assets including capitalized in-house development costs,
share-based compensation costs, transaction costs arising from the
acquisition of a business, restructuring costs, profits/(losses) on the
disposal or impairments of assets and subsidiaries, certain
non-recurring initial public offering costs and unrealized foreign
exchange gains/(losses). The Company presents in the financial tables
that accompany this release a reconciliation of Adjusted EBITDA to
profit for the period and Adjusted EBITDA margin to profit for the
period margin, the most directly comparable financial measures presented
in accordance with IFRS.
The Company has included Adjusted EBITDA and Adjusted EBITDA margin in
this press release because they are key measures that the Company's
management and Board of Directors use to understand and evaluate its
core operating performance and trends; to prepare and approve its annual
budget; and to develop short-and long-term operational plans. In
particular, the exclusion of certain expenses in calculating Adjusted
EBITDA and Adjusted EBITDA margin can provide a useful measure for
period-to-period comparisons of the Company's core business.
Accordingly, the Company believes that Adjusted EBITDA and Adjusted
EBITDA margin provide useful information to investors and others in
understanding and evaluating its operating results.
The Company's use of Adjusted EBITDA (and measures such as Adjusted
EBITDA margin that are derived from it) has limitations as an analytical
tool, and investors should not consider this performance measure in
isolation from, or as a substitute for, analysis of the Company's
results as reported under IFRS. Some of these limitations are:
-
although depreciation and amortization are non-cash charges, the
assets being depreciated and amortized may have to be replaced in the
future, and Adjusted EBITDA does not reflect cash capital expenditure
requirements for such replacements or for new capital expenditure
requirements;
-
Adjusted EBITDA does not reflect changes in, or cash requirements for,
the Company's working capital needs;
-
Adjusted EBITDA does not consider the potentially dilutive impact of
equity-based compensation;
-
Adjusted EBITDA does not reflect tax payments that may represent a
reduction in cash available to the Company;
-
Adjusted EBITDA does not reflect the interest expense or the cash
requirements necessary to service interest payments on the Company's
debt or any losses on the extinguishment of its debt;
-
Adjusted EBITDA does not include unrealized foreign currency
transaction gains and losses;
-
Adjusted EBITDA does not include certain non-recurring initial public
offering costs; and
-
other companies, including companies in the Company's industry, may
calculate Adjusted EBITDA differently, which reduces its usefulness as
a comparative measure.
Because of these limitations, investors should consider Adjusted EBITDA
and Adjusted EBITDA margin alongside other financial performance
measures, including operating profit, profit for the period, profit for
the period margin and the Company's other results.
Headline Earnings
Headline earnings is a profit measure required for JSE-listed companies
as defined by the South African Institute of Chartered Accountants. The
profit measure is determined by taking the profit for the year prior to
separately identifiable re-measurements of the carrying amount of an
asset or liability that arose after the initial recognition of such
asset or liability net of related tax (both current and deferred) and
related non-controlling interest.
A reconciliation of headline earnings to profit for the period has been
included in the financial results section of this announcement.
Accounting policies
The Group consolidated interim and quarter results included in this
announcement have been prepared in accordance with IFRS accounting
policies. The basis of preparation and accounting policies have been set
out in note 1 of the unaudited Group consolidated interim financial
results for the period ended September 30, 2013.
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Condensed consolidated income statement
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Six months
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Six months
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Three months
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Three months
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ended
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ended
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ended
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ended
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South African rand
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September 30,
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September 30,
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September 30,
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September 30,
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Figures are stated in thousands unless
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2013
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2012
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2013
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2012
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otherwise stated
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Unaudited
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Unaudited
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Unaudited
|
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Unaudited
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Revenue
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613,408
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564,341
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314,961
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283,963
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Cost of sales
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(211,036)
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(210,945)
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(110,756)
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(98,507)
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Gross profit
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402,372
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353,396
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204,205
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185,456
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Other income/(expenses) - net (note 8)
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9,899
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4,598
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11,041
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1,799
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Operating expenses
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(331,998)
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(281,649)
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(171,083)
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(145,694)
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- Sales and marketing
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(68,203)
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(68,346)
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(34,051)
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(34,866)
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- Administration and other charges
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(263,795)
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(213,303)
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(137,032)
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(110,828)
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Operating profit
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80,273
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76,345
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44,163
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41,561
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Finance income
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2,100
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1,090
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953
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324
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Finance cost
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(1,266)
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(1,993)
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(682)
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(1,186)
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Profit before taxation
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81,107
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75,442
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44,434
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40,699
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Taxation
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(24,519)
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(21,972)
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(14,181)
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(11,853)
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Profit for the period
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56,588
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53,470
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30,253
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28,846
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Attributable to:
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Shareholders of the parent
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56,588
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53,470
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30,253
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28,846
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Non-controlling interests
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*
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-
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*
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-
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56,588
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53,470
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30,253
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28,846
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Attributable earnings per share
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-basic (R)
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0.08
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0.08
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0.04
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0.04
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-diluted (R)
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|
0.08
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0.08
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0.04
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0.04
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Earnings per American Depositary Receipt
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-basic (R)
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2.05
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2.03
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1.05
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1.10
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-diluted (R)
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1.95
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1.99
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1.00
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1.08
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Ordinary shares ('000)
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-in issue at September 30
|
|
|
|
772,950
|
|
|
658,825
|
|
|
772,950
|
|
|
658,675
|
-weighted average
|
|
|
|
688,787
|
|
|
657,289
|
|
|
717,059
|
|
|
657,338
|
-diluted weighted average
|
|
|
|
727,259
|
|
|
671,954
|
|
|
755,739
|
|
|
670,444
|
Weighted average American Depositary Receipt ('000)
|
|
|
|
|
|
|
|
-in issue at September 30
|
|
|
|
30,918
|
|
|
26,353
|
|
|
30,918
|
|
|
26,347
|
-weighted average
|
|
|
|
27,551
|
|
|
26,292
|
|
|
28,682
|
|
|
26,294
|
-diluted weighted average
|
|
|
|
29,090
|
|
|
26,878
|
|
|
30,230
|
|
|
26,818
|
* Amounts less than R1000/$1000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed consolidated income statement (continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months
|
|
|
Six months
|
|
|
Three months
|
|
|
Three months
|
|
|
|
ended
|
|
|
ended
|
|
|
ended
|
|
|
ended
|
United States dollar
|
|
|
September 30,
|
|
|
September 30,
|
|
|
September 30,
|
|
|
September 30,
|
Figures are stated in thousands unless
|
|
|
2013
|
|
|
2012
|
|
|
2013
|
|
|
2012
|
otherwise stated
|
|
|
Unaudited
|
|
|
Unaudited
|
|
|
Unaudited
|
|
|
Unaudited
|
Revenue
|
|
|
60,726
|
|
|
55,869
|
|
|
31,181
|
|
|
28,112
|
Cost of sales
|
|
|
(20,892)
|
|
|
(20,883)
|
|
|
(10,965)
|
|
|
(9,752)
|
Gross profit
|
|
|
39,834
|
|
|
34,986
|
|
|
20,216
|
|
|
18,360
|
Other income/(expenses) - net
|
|
|
980
|
|
|
455
|
|
|
1,093
|
|
|
178
|
Operating expenses
|
|
|
(32,867)
|
|
|
(27,883)
|
|
|
(16,937)
|
|
|
(14,423)
|
- Sales and marketing
|
|
|
(6,752)
|
|
|
(6,766)
|
|
|
(3,371)
|
|
|
(3,451)
|
- Administration and other charges
|
|
|
(26,115)
|
|
|
(21,117)
|
|
|
(13,566)
|
|
|
(10,972)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit
|
|
|
7,947
|
|
|
7,558
|
|
|
4,372
|
|
|
4,115
|
Finance income
|
|
|
208
|
|
|
108
|
|
|
94
|
|
|
32
|
Finance cost
|
|
|
(125)
|
|
|
(197)
|
|
|
(68)
|
|
|
(117)
|
Profit before taxation
|
|
|
8,030
|
|
|
7,469
|
|
|
4,398
|
|
|
4,030
|
Taxation
|
|
|
(2,427)
|
|
|
(2,175)
|
|
|
(1,404)
|
|
|
(1,173)
|
Profit for the period
|
|
|
5,603
|
|
|
5,294
|
|
|
2,994
|
|
|
2,857
|
Attributable to:
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders of the parent
|
|
|
5,603
|
|
|
5,294
|
|
|
2,994
|
|
|
2,857
|
Non-controlling interests
|
|
|
*
|
|
|
-
|
|
|
*
|
|
|
-
|
|
|
|
5,603
|
|
|
5,294
|
|
|
2,994
|
|
|
2,857
|
Attributable earnings per share
|
|
|
|
|
|
|
|
|
|
|
|
|
-basic ($)
|
|
|
0.01
|
|
|
0.01
|
|
|
#
|
|
|
#
|
-diluted ($)
|
|
|
0.01
|
|
|
0.01
|
|
|
#
|
|
|
#
|
Earnings per American Depositary Receipt
|
|
|
|
-basic ($)
|
|
|
0.20
|
|
|
0.20
|
|
|
0.10
|
|
|
0.11
|
-diluted ($)
|
|
|
0.19
|
|
|
0.20
|
|
|
0.10
|
|
|
0.11
|
Ordinary shares ('000)
|
|
|
|
|
|
|
|
|
|
|
|
|
-in issue at September 30
|
|
|
772,950
|
|
|
658,825
|
|
|
772,950
|
|
|
658,675
|
-weighted average
|
|
|
688,787
|
|
|
657,289
|
|
|
717,059
|
|
|
657,338
|
-diluted weighted average
|
|
|
727,259
|
|
|
671,954
|
|
|
755,739
|
|
|
670,444
|
Weighted average American Depositary Receipt ('000)
|
|
|
|
|
|
|
-in issue at September 30
|
|
|
30,918
|
|
|
26,353
|
|
|
30,918
|
|
|
26,347
|
-weighted average
|
|
|
27,551
|
|
|
26,292
|
|
|
28,682
|
|
|
26,294
|
-diluted weighted average
|
|
|
29,090
|
|
|
26,878
|
|
|
30,230
|
|
|
26,818
|
* Amounts less than R1000/$1000
|
|
|
|
|
|
|
|
|
|
|
|
|
# Amounts less than $0.01
|
|
|
|
|
|
|
|
|
|
|
|
|
South African rand amounts have been translated to U.S. dollars at the
exchange rate of R10.1012 per $1.00, which was the R/$ exchange rate
reported by the South African Reserve Bank as of September 30, 2013. The
U.S. dollar figures may not compute as they are rounded independently.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed consolidated statement of
comprehensive income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
South African rand
|
|
|
United States dollar
|
|
|
|
Six months
|
|
|
Six months
|
|
|
Six months
|
|
|
Six months
|
|
|
|
ended
|
|
|
ended
|
|
|
ended
|
|
|
ended
|
|
|
|
September 30,
|
|
|
September 30,
|
|
|
September 30,
|
|
|
September 30,
|
Figures are stated in thousands unless
|
|
|
2013
|
|
|
2012
|
|
|
2013
|
|
|
2012
|
otherwise stated
|
|
|
Unaudited
|
|
|
Unaudited
|
|
|
Unaudited
|
|
|
Unaudited
|
Profit for the period
|
|
|
56,588
|
|
|
53,470
|
|
|
5,603
|
|
|
5,294
|
Other comprehensive income:
|
|
|
|
|
|
|
|
|
|
|
|
|
Items that may be reclassified to profit or loss
|
|
|
|
|
|
|
|
|
|
Exchange differences on translating foreign operations
|
|
|
27,586
|
|
|
16,504
|
|
|
2,731
|
|
|
1,634
|
Exchange differences on net investments in foreign operations
|
|
|
2,737
|
|
|
1,429
|
|
|
271
|
|
|
141
|
Other comprehensive income for the period, net of tax
|
|
|
30,323
|
|
|
17,933
|
|
|
3,002
|
|
|
1,775
|
Total comprehensive income for the period
|
|
|
86,911
|
|
|
71,403
|
|
|
8,605
|
|
|
7,069
|
Attributable to:
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders of the parent
|
|
|
86,911
|
|
|
71,403
|
|
|
8,605
|
|
|
7,069
|
Non-controlling interests
|
|
|
*
|
|
|
-
|
|
|
*
|
|
|
-
|
|
|
|
86,911
|
|
|
71,403
|
|
|
8,605
|
|
|
7,069
|
* Less than R1000/$1000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of headline earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
South African rand
|
|
|
United States dollar
|
|
|
|
Six months
|
|
|
Six months
|
|
|
Six months
|
|
|
Six months
|
|
|
|
ended
|
|
|
ended
|
|
|
ended
|
|
|
ended
|
|
|
|
September 30,
|
|
|
September 30,
|
|
|
September 30,
|
|
|
September 30,
|
Figures are stated in thousands unless
|
|
|
2013
|
|
|
2012
|
|
|
2013
|
|
|
2012
|
otherwise stated
|
|
|
Unaudited
|
|
|
Unaudited
|
|
|
Unaudited
|
|
|
Unaudited
|
Profit for the period attributable to shareholders of the parent
|
|
|
56,588
|
|
|
53,470
|
|
|
5,603
|
|
|
5,294
|
Adjusted for:
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss/(profit) on disposal of property, plant and equipment and
intangible assets
|
|
|
54
|
|
|
(18)
|
|
|
5
|
|
|
(2)
|
Impairment of product development costs capitalized (note 4)
|
|
|
-
|
|
|
4,066
|
|
|
-
|
|
|
403
|
Foreign currency translation reserve released due to liquidation of
intermediary subsidiary holding company (note 4)
|
|
|
-
|
|
|
(1,619)
|
|
|
-
|
|
|
(160)
|
Tax effect on the above components
|
|
|
(14)
|
|
|
(1,135)
|
|
|
(1)
|
|
|
(112)
|
Headline earnings attributable to shareholders of the parent
|
|
|
56,628
|
|
|
54,764
|
|
|
5,607
|
|
|
5,423
|
Headline earnings per share (cents)
|
|
|
|
|
|
|
|
|
|
|
|
|
-basic
|
|
|
8.2
|
|
|
8.3
|
|
|
0.8
|
|
|
0.8
|
-diluted
|
|
|
7.8
|
|
|
8.1
|
|
|
0.8
|
|
|
0.8
|
South African rand amounts have been translated to U.S. dollars at the
exchange rate of R10.1012 per $1.00, which was the R/$ exchange rate
reported by the South African Reserve Bank as of September 30, 2013. The
U.S. dollar figures may not compute as they are rounded independently.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed consolidated statement of
financial position
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
South African rand
|
|
|
|
|
United States dollar
|
|
|
|
September 30,
|
|
|
March 31,
|
|
|
|
|
September 30,
|
|
|
March 31,
|
Figures are stated in thousands unless
|
|
|
2013
|
|
|
2013
|
|
|
|
|
2013
|
|
|
2013
|
otherwise stated
|
|
|
Unaudited
|
|
|
Audited
|
|
|
|
|
Unaudited
|
|
|
Unaudited
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant and equipment
|
|
|
117,550
|
|
|
96,547
|
|
|
|
|
11,637
|
|
|
9,558
|
Intangible assets
|
|
|
662,322
|
|
|
645,736
|
|
|
|
|
65,569
|
|
|
63,927
|
Finance lease receivable
|
|
|
6,975
|
|
|
6,359
|
|
|
|
|
691
|
|
|
630
|
Deferred tax assets
|
|
|
18,552
|
|
|
13,868
|
|
|
|
|
1,837
|
|
|
1,373
|
Total non-current assets
|
|
|
805,399
|
|
|
762,510
|
|
|
|
|
79,734
|
|
|
75,488
|
Current assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inventory
|
|
|
51,973
|
|
|
38,927
|
|
|
|
|
5,146
|
|
|
3,855
|
Trade and other receivables
|
|
|
215,123
|
|
|
186,987
|
|
|
|
|
21,298
|
|
|
18,512
|
Finance lease receivable
|
|
|
5,350
|
|
|
3,604
|
|
|
|
|
530
|
|
|
357
|
Taxation
|
|
|
3,022
|
|
|
4,823
|
|
|
|
|
299
|
|
|
477
|
Restricted cash
|
|
|
9,634
|
|
|
8,235
|
|
|
|
|
954
|
|
|
815
|
Cash and cash equivalents
|
|
|
767,770
|
|
|
147,702
|
|
|
|
|
76,008
|
|
|
14,622
|
Total current assets
|
|
|
1,052,872
|
|
|
390,278
|
|
|
|
|
104,235
|
|
|
38,638
|
Total assets
|
|
|
1,858,271
|
|
|
1,152,788
|
|
|
|
|
183,969
|
|
|
114,126
|
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital and reserves
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stated capital
|
|
|
1,416,673
|
|
|
790,491
|
|
|
|
|
140,249
|
|
|
78,257
|
Other reserves
|
|
|
(78,461)
|
|
|
(111,362)
|
|
|
|
|
(7,767)
|
|
|
(11,024)
|
Retained earnings
|
|
|
205,724
|
|
|
188,750
|
|
|
|
|
20,368
|
|
|
18,687
|
Equity attributable to shareholders of the parent
|
|
|
1,543,936
|
|
|
867,879
|
|
|
|
|
152,850
|
|
|
85,920
|
Non-controlling interest
|
|
|
(5)
|
|
|
(5)
|
|
|
|
|
*
|
|
|
*
|
Total equity
|
|
|
1,543,931
|
|
|
867,874
|
|
|
|
|
152,850
|
|
|
85,920
|
LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred tax liabilities
|
|
|
11,965
|
|
|
8,605
|
|
|
|
|
1,185
|
|
|
852
|
Provisions
|
|
|
2,427
|
|
|
283
|
|
|
|
|
240
|
|
|
28
|
Total non-current liabilities
|
|
|
14,392
|
|
|
8,888
|
|
|
|
|
1,425
|
|
|
880
|
Current liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade and other payables
|
|
|
211,829
|
|
|
184,397
|
|
|
|
|
20,970
|
|
|
18,255
|
Borrowings
|
|
|
-
|
|
|
3,472
|
|
|
|
|
-
|
|
|
344
|
Taxation
|
|
|
4,462
|
|
|
10,691
|
|
|
|
|
442
|
|
|
1,058
|
Provisions
|
|
|
19,173
|
|
|
21,461
|
|
|
|
|
1,898
|
|
|
2,125
|
Bank overdraft
|
|
|
64,484
|
|
|
56,005
|
|
|
|
|
6,384
|
|
|
5,544
|
Total current liabilities
|
|
|
299,948
|
|
|
276,026
|
|
|
|
|
29,694
|
|
|
27,326
|
Total liabilities
|
|
|
314,340
|
|
|
284,914
|
|
|
|
|
31,119
|
|
|
28,206
|
Total equity and liabilities
|
|
|
1,858,271
|
|
|
1,152,788
|
|
|
|
|
183,969
|
|
|
114,126
|
Net cash (note 6)
|
|
|
703,286
|
|
|
88,225
|
|
|
|
|
69,624
|
|
|
8,734
|
Net asset value per share (cents)
|
|
|
199.7
|
|
|
131.5
|
|
|
|
|
19.8
|
|
|
13.0
|
Net tangible asset value per share (cents)
|
|
|
114.1
|
|
|
33.7
|
|
|
|
|
11.3
|
|
|
3.3
|
Capital expenditure
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- incurred
|
|
|
63,855
|
|
|
94,147
|
|
|
|
|
6,322
|
|
|
9,320
|
- authorized but not spent
|
|
|
24,732
|
|
|
44,497
|
|
|
|
|
2,448
|
|
|
4,405
|
* Amounts less than R1000/$1000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
South African rand amounts have been translated to U.S. dollars at the
exchange rate of R10.1012 per $1.00, which was the R/$ exchange rate
reported by the South African Reserve Bank as of September 30, 2013. The
U.S. dollar figures may not compute as they are rounded independently.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed consolidated statement of cash
flows
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
South African rand
|
|
|
|
|
United States dollar
|
|
|
|
Six months
|
|
|
Six months
|
|
|
|
|
Six months
|
|
|
Six months
|
|
|
|
ended
|
|
|
ended
|
|
|
|
|
ended
|
|
|
ended
|
|
|
|
September 30,
|
|
|
September 30,
|
|
|
|
|
September 30,
|
|
|
September 30,
|
|
|
|
2013
|
|
|
2012
|
|
|
|
|
2013
|
|
|
2012
|
Figures are stated in thousands unless
|
|
|
(Restated)
|
|
|
|
|
|
|
|
(Restated)
|
otherwise stated
|
|
|
Unaudited
|
|
|
Unaudited
|
|
|
|
|
Unaudited
|
|
|
Unaudited
|
Operating activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash generated from operations
|
|
|
100,565
|
|
|
87,774
|
|
|
|
|
9,956
|
|
|
8,690
|
Net financing income/(costs)
|
|
|
413
|
|
|
(1,148)
|
|
|
|
|
41
|
|
|
(114)
|
Taxation paid
|
|
|
(30,028)
|
|
|
(34,598)
|
|
|
|
|
(2,973)
|
|
|
(3,425)
|
Net cash generated from operating activities
|
|
|
70,950
|
|
|
52,028
|
|
|
|
|
7,024
|
|
|
5,151
|
Investing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditure, net of government grant received
|
|
|
(63,855)
|
|
|
(45,030)
|
|
|
|
|
(6,322)
|
|
|
(4,458)
|
Acquisition of business, net of cash acquired
|
|
|
-
|
|
|
23
|
|
|
|
|
-
|
|
|
2
|
Proceeds on sale of property, plant and equipment
|
|
|
48
|
|
|
18
|
|
|
|
|
5
|
|
|
2
|
Increase in restricted cash
|
|
|
(1,399)
|
|
|
(3,524)
|
|
|
|
|
(138)
|
|
|
(349)
|
Net cash used in investing activities
|
|
|
(65,206)
|
|
|
(48,513)
|
|
|
|
|
(6,455)
|
|
|
(4,803)
|
Financing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from share capital issued
|
|
|
652,632
|
|
|
1,808
|
|
|
|
|
64,609
|
|
|
179
|
Share issue expenses paid
|
|
|
(15,444)
|
|
|
-
|
|
|
|
|
(1,529)
|
|
|
-
|
Repayment of borrowings
|
|
|
(3,542)
|
|
|
(20,185)
|
|
|
|
|
(351)
|
|
|
(1,998)
|
Dividends paid
|
|
|
(39,570)
|
|
|
(52,520)
|
|
|
|
|
(3,917)
|
|
|
(5,199)
|
Net cash generated from/(used) in financing activities
|
|
|
594,076
|
|
|
(70,897)
|
|
|
|
|
58,812
|
|
|
(7,018)
|
Net increase/(decrease) in cash and cash equivalents
|
|
|
599,820
|
|
|
(67,382)
|
|
|
|
|
59,381
|
|
|
(6,670)
|
Net cash and cash equivalents at beginning of the period
|
|
|
91,697
|
|
|
68,530
|
|
|
|
|
9,078
|
|
|
6,784
|
Exchange gains on cash and cash equivalents
|
|
|
11,769
|
|
|
2,792
|
|
|
|
|
1,165
|
|
|
276
|
Net cash and cash equivalents at end of the period
|
|
|
703,286
|
|
|
3,940
|
|
|
|
|
69,624
|
|
|
390
|
|
South African rand amounts have been translated to U.S. dollars at the
exchange rate of R10.1012 per $1.00, which was the R/$ exchange rate
reported by the South African Reserve Bank as of September 30, 2013. The
U.S. dollar figures may not compute as they are rounded independently.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed consolidated statement of
changes in equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable to shareholders of the parent
|
|
|
|
|
|
|
|
|
|
South African rand
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-
|
|
|
|
Figures are in thousands unless otherwise stated
|
|
|
Stated capital
|
|
|
Share capital
|
|
|
Share premium
|
|
|
Other reserves
|
|
|
Retained earnings
|
|
|
Total
|
|
|
controlling interest
|
|
|
Total equity
|
Balance at April 1, 2012 (audited)
|
|
|
-
|
|
|
13
|
|
|
787,589
|
|
|
(154,745)
|
|
|
139,233
|
|
|
772,090
|
|
|
-
|
|
|
772,090
|
Total comprehensive income
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
17,933
|
|
|
53,470
|
|
|
71,403
|
|
|
-
|
|
|
71,403
|
Profit for the period
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
53,470
|
|
|
53,470
|
|
|
-
|
|
|
53,470
|
Other comprehensive income
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
17,933
|
|
|
-
|
|
|
17,933
|
|
|
-
|
|
|
17,933
|
Transactions with shareholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares issued in relation to share options exercised
|
|
|
-
|
|
|
*
|
|
|
1,808
|
|
|
-
|
|
|
-
|
|
|
1,808
|
|
|
-
|
|
|
1,808
|
Dividends declared of 8 cents per share (note 7)
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(52,576)
|
|
|
(52,576)
|
|
|
-
|
|
|
(52,576)
|
Share-based payments
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
949
|
|
|
-
|
|
|
949
|
|
|
-
|
|
|
949
|
Total transactions with shareholders
|
|
|
-
|
|
|
*
|
|
|
1,808
|
|
|
949
|
|
|
(52,576)
|
|
|
(49,819)
|
|
|
-
|
|
|
(49,819)
|
Balance at September 30, 2012 (unaudited)
|
|
|
-
|
|
|
13
|
|
|
789,397
|
|
|
(135,863)
|
|
|
140,127
|
|
|
793,674
|
|
|
-
|
|
|
793,674
|
Total comprehensive income
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
22,299
|
|
|
75,001
|
|
|
97,300
|
|
|
(5)
|
|
|
97,295
|
Profit for the period
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
75,001
|
|
|
75,001
|
|
|
(5)
|
|
|
74,996
|
Other comprehensive income
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
22,299
|
|
|
-
|
|
|
22,299
|
|
|
-
|
|
|
22,299
|
Transactions with shareholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares issued in relation to share options exercised
|
|
|
464
|
|
|
*
|
|
|
617
|
|
|
-
|
|
|
-
|
|
|
1,081
|
|
|
-
|
|
|
1,081
|
Dividends declared of 4 cents per share
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(26,378)
|
|
|
(26,378)
|
|
|
-
|
|
|
(26,378)
|
Share-based payments
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
2,202
|
|
|
-
|
|
|
2,202
|
|
|
-
|
|
|
2,202
|
Total transactions with shareholders
|
|
|
464
|
|
|
*
|
|
|
617
|
|
|
2,202
|
|
|
(26,378)
|
|
|
(23,095)
|
|
|
-
|
|
|
(23,095)
|
Transfer from share capital and share premium to stated capital
|
|
|
790,027
|
|
|
(13)
|
|
|
(790,014)
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
Balance at March 31, 2013 (audited)
|
|
|
790,491
|
|
|
-
|
|
|
-
|
|
|
(111,362)
|
|
|
188,750
|
|
|
867,879
|
|
|
(5)
|
|
|
867,874
|
Total comprehensive income
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
30,323
|
|
|
56,588
|
|
|
86,911
|
|
|
*
|
|
|
86,911
|
Profit for the period
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
56,588
|
|
|
56,588
|
|
|
*
|
|
|
56,588
|
Other comprehensive income
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
30,323
|
|
|
-
|
|
|
30,323
|
|
|
-
|
|
|
30,323
|
Transactions with shareholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividend declared of 6 cents per share (note 7)
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(39,614)
|
|
|
(39,614)
|
|
|
-
|
|
|
(39,614)
|
Shares issued in relation to share options exercised
|
|
|
3,430
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
3,430
|
|
|
-
|
|
|
3,430
|
Share-based payments
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
2,578
|
|
|
-
|
|
|
2,578
|
|
|
-
|
|
|
2,578
|
Proceeds from shares issued, net of share issue costs (note 13)
|
|
|
622,752
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
622,752
|
|
|
-
|
|
|
622,752
|
Total transactions with shareholders
|
|
|
626,182
|
|
|
-
|
|
|
-
|
|
|
2,578
|
|
|
(39,614)
|
|
|
589,146
|
|
|
-
|
|
|
589,146
|
Balance at September 30, 2013 (unaudited)
|
|
|
1,416,673
|
|
|
-
|
|
|
-
|
|
|
(78,461)
|
|
|
205,724
|
|
|
1,543,936
|
|
|
(5)
|
|
|
1,543,931
|
Condensed consolidated statement of
changes in equity (continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable to shareholders of the parent
|
|
|
|
|
|
|
|
|
|
United States dollar
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-
|
|
|
|
Figures are in thousands unless otherwise stated
|
|
|
Stated capital
|
|
|
Share capital
|
|
|
Share premium
|
|
|
Other reserves
|
|
|
Retained earnings
|
|
|
Total
|
|
|
controlling interest
|
|
|
Total equity
|
Balance at April 1, 2012 (audited)
|
|
|
-
|
|
|
1
|
|
|
77,970
|
|
|
(15,319)
|
|
|
13,784
|
|
|
76,436
|
|
|
-
|
|
|
76,436
|
Total comprehensive income
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
1,775
|
|
|
5,294
|
|
|
7,069
|
|
|
-
|
|
|
7,069
|
Profit for the period
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
5,294
|
|
|
5,294
|
|
|
-
|
|
|
5,294
|
Other comprehensive income
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
1,775
|
|
|
-
|
|
|
1,775
|
|
|
-
|
|
|
1,775
|
Transactions with shareholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares issued in relation to share options exercised
|
|
|
-
|
|
|
*
|
|
|
179
|
|
|
-
|
|
|
-
|
|
|
179
|
|
|
-
|
|
|
179
|
Dividends declared of 0.8 cents per share (note 7)
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(5,205)
|
|
|
(5,205)
|
|
|
-
|
|
|
(5,205)
|
Share-based payments
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
94
|
|
|
-
|
|
|
94
|
|
|
-
|
|
|
94
|
Total transactions with shareholders
|
|
|
-
|
|
|
*
|
|
|
179
|
|
|
94
|
|
|
(5,205)
|
|
|
(4,932)
|
|
|
-
|
|
|
(4,932)
|
Balance at September 30, 2012 (unaudited)
|
|
|
-
|
|
|
1
|
|
|
78,149
|
|
|
(13,450)
|
|
|
13,873
|
|
|
78,573
|
|
|
-
|
|
|
78,573
|
Total comprehensive income
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
2,208
|
|
|
7,425
|
|
|
9,633
|
|
|
*
|
|
|
9,633
|
Profit for the period
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
7,425
|
|
|
7,425
|
|
|
*
|
|
|
7,425
|
Other comprehensive income
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
2,208
|
|
|
-
|
|
|
2,208
|
|
|
-
|
|
|
2,208
|
Transactions with shareholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares issued in relation to share options exercised
|
|
|
46
|
|
|
*
|
|
|
61
|
|
|
-
|
|
|
-
|
|
|
107
|
|
|
-
|
|
|
107
|
Dividends declared of 0.4 cents per share
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(2,611)
|
|
|
(2,611)
|
|
|
-
|
|
|
(2,611)
|
Share-based payments
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
218
|
|
|
-
|
|
|
218
|
|
|
-
|
|
|
218
|
Total transactions with shareholders
|
|
|
46
|
|
|
*
|
|
|
61
|
|
|
218
|
|
|
(2,611)
|
|
|
(2,286)
|
|
|
-
|
|
|
(2,286)
|
Transfer from share capital and share premium to stated capital
|
|
|
78,211
|
|
|
(1)
|
|
|
(78,210)
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
Balance at March 31, 2013 (audited)
|
|
|
78,257
|
|
|
-
|
|
|
-
|
|
|
(11,024)
|
|
|
18,687
|
|
|
85,920
|
|
|
*
|
|
|
85,920
|
Total comprehensive income
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
3,002
|
|
|
5,603
|
|
|
8,605
|
|
|
*
|
|
|
8,605
|
Profit for the period
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
5,603
|
|
|
5,603
|
|
|
*
|
|
|
5,603
|
Other comprehensive income
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
3,002
|
|
|
-
|
|
|
3,002
|
|
|
-
|
|
|
3,002
|
Transactions with shareholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividend declared of 0.6 cents per share (note 7)
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(3,922)
|
|
|
(3,922)
|
|
|
-
|
|
|
(3,922)
|
Shares issued in relation to share options exercised
|
|
|
340
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
340
|
|
|
-
|
|
|
340
|
Share-based payments
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
255
|
|
|
-
|
|
|
255
|
|
|
-
|
|
|
255
|
Proceeds from shares issued, net of share issue costs (note 13)
|
|
|
61,652
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
61,652
|
|
|
-
|
|
|
61,652
|
Total transactions with shareholders
|
|
|
61,992
|
|
|
-
|
|
|
-
|
|
|
255
|
|
|
(3,922)
|
|
|
58,325
|
|
|
-
|
|
|
58,325
|
Balance at September 30, 2013 (unaudited)
|
|
|
140,249
|
|
|
-
|
|
|
-
|
|
|
(7,767)
|
|
|
20,368
|
|
|
152,850
|
|
|
*
|
|
|
152,850
|
* Amounts less than R1000/$1000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
South African rand amounts have been translated to U.S. dollars at the
exchange rate of R10.1012 per $1.00, which was the R/$ exchange rate
reported by the South African Reserve Bank as of September 30, 2013. The
U.S. dollar figures may not compute as they are rounded independently.
Condensed segmental analysis
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inter-
|
|
|
|
|
|
|
South African rand
|
|
|
|
|
|
Total
|
|
|
segment
|
|
|
Adjusted
|
|
|
|
Figures are in thousands unless otherwise stated
|
|
|
revenue
|
|
|
revenue
|
|
|
EBITDA
|
|
|
Assets
|
6 months ended September 30, 2013 (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Africa
|
|
|
Consumer Solutions
|
|
|
173,173
|
|
|
(7,298)
|
|
|
49,134
|
|
|
272,233
|
|
|
|
Fleet Solutions
|
|
|
159,580
|
|
|
(3,075)
|
|
|
47,776
|
|
|
120,059
|
Europe
|
|
|
Fleet Solutions
|
|
|
68,777
|
|
|
(311)
|
|
|
995
|
|
|
66,817
|
North America
|
|
|
Fleet Solutions
|
|
|
62,627
|
|
|
-
|
|
|
(2,120)
|
|
|
57,498
|
Middle East and Australasia
|
|
|
Fleet Solutions
|
|
|
154,693
|
|
|
(875)
|
|
|
17,569
|
|
|
145,470
|
Brazil
|
|
|
Fleet Solutions
|
|
|
3,926
|
|
|
-
|
|
|
(5,394)
|
|
|
4,970
|
International
|
|
|
Fleet Solutions and development
|
|
|
173,088
|
|
|
(170,897)
|
|
|
47,043
|
|
|
255,244
|
Total
|
|
|
|
|
|
795,864
|
|
|
(182,456)
|
|
|
155,003
|
|
|
922,291
|
Corporate and consolidation entries
|
|
|
-
|
|
|
-
|
|
|
(22,893)
|
|
|
1,092,784
|
Inter-segment elimination
|
|
|
|
|
|
(182,456)
|
|
|
182,456
|
|
|
-
|
|
|
(156,804)
|
Total
|
|
|
|
|
|
613,408
|
|
|
-
|
|
|
132,110
|
|
|
1,858,271
|
6 months ended September 30, 2012 (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Africa
|
|
|
Consumer Solutions
|
|
|
173,866
|
|
|
(5,442)
|
|
|
39,842
|
|
|
270,768
|
|
|
|
Fleet Solutions
|
|
|
136,859
|
|
|
(2,724)
|
|
|
42,359
|
|
|
97,182
|
Europe
|
|
|
Fleet Solutions
|
|
|
55,198
|
|
|
-
|
|
|
(6,888)
|
|
|
61,067
|
North America
|
|
|
Fleet Solutions
|
|
|
91,312
|
|
|
-
|
|
|
5,548
|
|
|
59,926
|
Middle East and Australasia
|
|
|
Fleet Solutions
|
|
|
108,561
|
|
|
-
|
|
|
18,786
|
|
|
95,667
|
International
|
|
|
Fleet Solutions and development
|
|
|
161,641
|
|
|
(154,930)
|
|
|
46,038
|
|
|
253,660
|
Total
|
|
|
|
|
|
727,437
|
|
|
(163,096)
|
|
|
145,685
|
|
|
838,270
|
Corporate and consolidation entries
|
|
|
-
|
|
|
-
|
|
|
(15,804)
|
|
|
415,355
|
Inter-segment elimination
|
|
|
|
|
|
(163,096)
|
|
|
163,096
|
|
|
-
|
|
|
(153,770)
|
Total
|
|
|
|
|
|
564,341
|
|
|
-
|
|
|
129,881
|
|
|
1,099,855
|
Condensed segmental analysis (continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inter-
|
|
|
|
|
|
|
United States dollar
|
|
|
|
|
|
Total
|
|
|
segment
|
|
|
Adjusted
|
|
|
|
Figures are in thousands unless otherwise stated
|
|
|
revenue
|
|
|
revenue
|
|
|
EBITDA
|
|
|
Assets
|
6 months ended September 30, 2013 (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Africa
|
|
|
Consumer Solutions
|
|
|
17,144
|
|
|
(722)
|
|
|
4,864
|
|
|
26,952
|
|
|
|
Fleet Solutions
|
|
|
15,798
|
|
|
(304)
|
|
|
4,730
|
|
|
11,887
|
Europe
|
|
|
Fleet Solutions
|
|
|
6,809
|
|
|
(31)
|
|
|
99
|
|
|
6,615
|
North America
|
|
|
Fleet Solutions
|
|
|
6,200
|
|
|
-
|
|
|
(210)
|
|
|
5,692
|
Middle East and Australasia
|
|
|
Fleet Solutions
|
|
|
15,314
|
|
|
(87)
|
|
|
1,739
|
|
|
14,401
|
Brazil
|
|
|
Fleet Solutions
|
|
|
389
|
|
|
-
|
|
|
(534)
|
|
|
492
|
International
|
|
|
Fleet Solutions and development
|
|
|
17,135
|
|
|
(16,919)
|
|
|
4,657
|
|
|
25,269
|
Total
|
|
|
|
|
|
78,789
|
|
|
(18,063)
|
|
|
15,345
|
|
|
91,308
|
Corporate and consolidation entries
|
|
|
-
|
|
|
-
|
|
|
(2,266)
|
|
|
108,183
|
Inter-segment elimination
|
|
|
|
|
|
(18,063)
|
|
|
18,063
|
|
|
-
|
|
|
(15,522)
|
Total
|
|
|
|
|
|
60,726
|
|
|
-
|
|
|
13,079
|
|
|
183,969
|
6 months ended September 30, 2012 (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Africa
|
|
|
Consumer Solutions
|
|
|
17,212
|
|
|
(538)
|
|
|
3,944
|
|
|
26,806
|
|
|
|
Fleet Solutions
|
|
|
13,549
|
|
|
(269)
|
|
|
4,193
|
|
|
9,621
|
Europe
|
|
|
Fleet Solutions
|
|
|
5,464
|
|
|
-
|
|
|
(682)
|
|
|
6,046
|
North America
|
|
|
Fleet Solutions
|
|
|
9,040
|
|
|
-
|
|
|
549
|
|
|
5,933
|
Middle East and Australasia
|
|
|
Fleet Solutions
|
|
|
10,747
|
|
|
-
|
|
|
1,860
|
|
|
9,471
|
International
|
|
|
Fleet Solutions and development
|
|
|
16,002
|
|
|
(15,338)
|
|
|
4,558
|
|
|
25,112
|
Total
|
|
|
|
|
|
72,014
|
|
|
(16,145)
|
|
|
14,422
|
|
|
82,989
|
Corporate and consolidation entries
|
|
|
-
|
|
|
-
|
|
|
(1,564)
|
|
|
41,119
|
Inter-segment elimination
|
|
|
|
|
|
(16,145)
|
|
|
16,145
|
|
|
-
|
|
|
(15,223)
|
Total
|
|
|
|
|
|
55,869
|
|
|
-
|
|
|
12,858
|
|
|
108,885
|
|
South African rand amounts have been translated to U.S. dollars at the
exchange rate of R10.1012 per $1.00, which was the R/$ exchange rate
reported by the South African Reserve Bank as of September 30, 2013. The
U.S. dollar figures may not compute as they are rounded independently.
Notes to the condensed consolidated financial
statements
1. Basis of preparation and accounting policies
Condensed unaudited Group interim financial results for the half
year ended September 30, 2013
These condensed unaudited Group interim financial results for the half
year ended September 30, 2013 have been prepared in accordance with the
recognition and measurement criteria of International Financial
Reporting Standards (IFRS) and are in compliance with IAS 34: Interim
Financial Reporting, SAICA financial Reporting Guidelines as issued by
the Accounting Practices Committee, Section 8.57 of the Listings
Requirements of the JSE Limited and the requirements of the Companies
Act of South Africa, 2008. The interim financial results have not been
audited or reviewed by the Group’s external auditors.
The condensed unaudited Group interim financial results do not include
all the information and disclosures required in the annual financial
statements and should be read in conjunction with the Group’s annual
financial statements for the year ended March 31, 2013, which have been
prepared in accordance with IFRS. The Group has adopted the required new
or revised accounting standards in the current period, as further set
out in note 2 below, none of which had a material impact on the Group’s
results.
The preparation of interim financial results requires management to make
judgements, estimates and assumptions that affect the application of
accounting policies and the reported amounts of assets and liabilities,
income and expenses. In preparing these condensed interim financial
results, the significant judgements made by management in applying the
Group’s accounting policies and the key sources of estimation and
uncertainty were the same as those applied to the consolidated financial
statements for the year ended March 31, 2013, with the exception of
changes in estimates that are required in determining the provision for
income taxes.
Financial results for the second quarter of fiscal year 2014
In addition to the Group’s interim financial results for the half year
ended September 30, 2013, additional financial information in respect of
the second quarter of fiscal year 2014 has been presented together with
the relevant comparative information. The quarterly information
comprises a condensed consolidated income statement, a reconciliation of
Adjusted EBITDA to profit for the period (note 4) and other financial
and operating data (note 9).
The accounting policies used in preparing the financial results for the
second quarter of fiscal year 2014 are consistent in all material
respects with those applied in the preparation of the condensed
unaudited Group interim financial results for the half year ended
September 30, 2013.
The quarterly financial results have not been audited or reviewed by the
Group’s external auditors.
The condensed unaudited Group quarterly financial results do not include
all the information and disclosures required in the annual financial
statements and should be read in conjunction with the Group’s annual
financial statements for the year ended March 31, 2013, which have been
prepared in accordance with IFRS.
Presentation currency and convenience translation
The Group’s presentation currency is South African rands. In addition to
presenting these interim financial results in South African rands,
supplementary information in U.S. dollars has been prepared for the
convenience of users of the Group interim financial results. Unless
otherwise stated, the Group has translated U.S. dollar amounts from
South African rand at the exchange rate of R10.1012 per $1.00, which was
the R/$ exchange rate reported by the South African Reserve Bank as of
September 30, 2013.
2. Accounting policies
The accounting policies applied are consistent with those followed in
the preparation of the Group’s annual financial statements for the year
ended March 31, 2013, except where the Group has adopted new or revised
accounting standards, as described below. IFRS 10, Consolidated
financial statements – Under IFRS 10, subsidiaries are all entities
(including structured entities) over which the group has control. The
group controls an entity when the group has power
2. Accounting policies (continued)
over an entity, is exposed to, or has rights to, variable returns from
its involvement with the entity and has the ability to affect these
returns through its power over the entity. Subsidiaries are fully
consolidated from the date on which control is transferred to the group.
The Group has applied IFRS 10 retrospectively in accordance with the
transition provisions of IFRS 10. This has not had any impact on the
Group.
IFRS 13, Fair value measurement – IFRS 13 measurement and disclosure
requirements are applicable for the March 31, 2014 financial year-end.
The Group has included the disclosures required by IAS 34. Refer to note
12.
3. Operating segments
The Group’s businesses are managed primarily on a geographic and also on
a product basis. During the period under review, a new profit measure
was implemented, namely Adjusted EBITDA which is a non-IFRS measure.
Adjusted EBITDA, which has replaced the EBITDA profit measure previously
presented, is defined as follows: profit for the period before income
taxes, net finance income/(expense), depreciation of property, plant and
equipment including capitalized customer in-vehicle devices,
amortization of intangible assets including capitalized in-house
development costs, share-based compensation costs, transaction costs
arising from the acquisition of a business, restructuring costs,
profits/(losses) on the disposal or impairments of assets or
subsidiaries, certain non-recurring initial public offering costs and
unrealized foreign exchange gains/(losses). A reconciliation of Adjusted
EBITDA to profit for the period, the most directly comparable financial
measures presented in accordance with IFRS, is disclosed in note 4.
4. Reconciliation of Adjusted EBITDA to
profit for the period
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months
|
|
|
Six months
|
|
|
Three months
|
|
|
Three months
|
|
|
|
ended
|
|
|
ended
|
|
|
ended
|
|
|
ended
|
South African rand
|
|
|
September 30,
|
|
|
September 30,
|
|
|
September 30,
|
|
|
September 30,
|
Figures are in thousands unless
|
|
|
2013
|
|
|
2012
|
|
|
2013
|
|
|
2012
|
otherwise stated
|
|
|
Unaudited
|
|
|
Unaudited
|
|
|
Unaudited
|
|
|
Unaudited
|
Adjusted EBITDA
|
|
|
132,110
|
|
|
129,881
|
|
|
66,876
|
|
|
69,311
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net unrealized foreign exchange gains
|
|
|
8,185
|
|
|
-
|
|
|
8,316
|
|
|
-
|
Net profit on sale of property, plant and equipment and intangible
assets
|
|
|
-
|
|
|
18
|
|
|
-
|
|
|
18
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation (1)
|
|
|
21,671
|
|
|
19,213
|
|
|
11,438
|
|
|
9,860
|
Amortization (2)
|
|
|
24,458
|
|
|
30,065
|
|
|
9,868
|
|
|
13,969
|
Impairment (3)
|
|
|
-
|
|
|
4,066
|
|
|
-
|
|
|
4,066
|
Share-based compensation costs
|
|
|
2,577
|
|
|
950
|
|
|
1,269
|
|
|
416
|
Net loss on sale of property, plant and equipment and intangible
assets
|
|
|
54
|
|
|
-
|
|
|
63
|
|
|
-
|
Foreign currency translation reserve released due to liquidation of
intermediary subsidiary holding company
|
|
|
-
|
|
|
(1,619)
|
|
|
-
|
|
|
(1,619)
|
Increase/(decrease) in provision for restructuring costs
|
|
|
2,762
|
|
|
-
|
|
|
(109)
|
|
|
-
|
Transaction costs arising from the acquisition of a business
|
|
|
-
|
|
|
17
|
|
|
-
|
|
|
10
|
Non-recurring initial public offering costs
|
|
|
8,500
|
|
|
-
|
|
|
8,500
|
|
|
-
|
Net unrealized foreign exchange losses
|
|
|
-
|
|
|
862
|
|
|
-
|
|
|
1,066
|
Operating profit
|
|
|
80,273
|
|
|
76,345
|
|
|
44,163
|
|
|
41,561
|
Add: Finance income
|
|
|
2,100
|
|
|
1,090
|
|
|
953
|
|
|
324
|
Less: Finance costs
|
|
|
1,266
|
|
|
1,993
|
|
|
682
|
|
|
1,186
|
Taxation
|
|
|
24,519
|
|
|
21,972
|
|
|
14,181
|
|
|
11,853
|
Profit for the period
|
|
|
56,588
|
|
|
53,470
|
|
|
30,253
|
|
|
28,846
|
4. Reconciliation of Adjusted EBITDA to profit for the
period (Continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months
|
|
|
Six months
|
|
|
Three months
|
|
|
Three months
|
|
|
|
ended
|
|
|
ended
|
|
|
ended
|
|
|
ended
|
United States dollar
|
|
|
September 30,
|
|
|
September 30,
|
|
|
September 30,
|
|
|
September 30,
|
Figures are in thousands unless
|
|
|
2013
|
|
|
2012
|
|
|
2013
|
|
|
2012
|
otherwise stated
|
|
|
Unaudited
|
|
|
Unaudited
|
|
|
Unaudited
|
|
|
Unaudited
|
Adjusted EBITDA
|
|
|
13,079
|
|
|
12,858
|
|
|
6,621
|
|
|
6,862
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net unrealized foreign exchange gains
|
|
|
810
|
|
|
-
|
|
|
823
|
|
|
-
|
Net profit on sale of property, plant and equipment and intangible
assets
|
|
|
-
|
|
|
2
|
|
|
-
|
|
|
2
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation (1)
|
|
|
2,145
|
|
|
1,902
|
|
|
1,132
|
|
|
976
|
Amortization (2)
|
|
|
2,421
|
|
|
2,976
|
|
|
977
|
|
|
1,383
|
Impairment (3)
|
|
|
-
|
|
|
403
|
|
|
-
|
|
|
403
|
Share-based compensation costs
|
|
|
255
|
|
|
94
|
|
|
126
|
|
|
41
|
Net loss on sale of property, plant and equipment and intangible
assets
|
|
|
5
|
|
|
-
|
|
|
6
|
|
|
-
|
Foreign currency translation reserve released due to liquidation of
intermediary subsidiary holding company
|
|
|
-
|
|
|
(160)
|
|
|
-
|
|
|
(160)
|
Increase/(decrease) in provision for restructuring costs
|
|
|
274
|
|
|
-
|
|
|
(11)
|
|
|
-
|
Transaction costs arising from the acquisition of a business
|
|
|
-
|
|
|
2
|
|
|
-
|
|
|
*
|
Non-recurring initial public offering costs
|
|
|
842
|
|
|
-
|
|
|
842
|
|
|
-
|
Net unrealized foreign exchange losses
|
|
|
-
|
|
|
85
|
|
|
-
|
|
|
106
|
Operating profit
|
|
|
7,947
|
|
|
7,558
|
|
|
4,372
|
|
|
4,115
|
Add: Finance income
|
|
|
208
|
|
|
108
|
|
|
94
|
|
|
32
|
Less: Finance costs
|
|
|
125
|
|
|
197
|
|
|
68
|
|
|
117
|
Taxation
|
|
|
2,427
|
|
|
2,175
|
|
|
1,404
|
|
|
1,173
|
Profit for the period
|
|
|
5,603
|
|
|
5,294
|
|
|
2,994
|
|
|
2,857
|
* Amounts less than R1000/$1000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes depreciation of property, plant and equipment
(including in-vehicle devices)
(2) Includes amortization of intangible assets (including product
development costs).
(3) Includes impairment of intangible assets.
|
|
South African rand amounts have been translated to U.S. dollars at the
exchange rate of R10.1012 per $1.00, which was the R/$ exchange rate
reported by the South African Reserve Bank as of September 30, 2013. The
U.S. dollar figures may not compute as they are rounded independently.
5. Reconciliation of Adjusted EBITDA
margin to profit for the period margin
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months
|
|
|
Six months
|
|
|
Three months
|
|
|
Three months
|
|
|
|
ended
|
|
|
ended
|
|
|
ended
|
|
|
ended
|
|
|
|
September 30,
|
|
|
September 30,
|
|
|
September 30,
|
|
|
September 30,
|
|
|
|
2013
|
|
|
2012
|
|
|
2013
|
|
|
2012
|
|
|
|
Unaudited
|
|
|
Unaudited
|
|
|
Unaudited
|
|
|
Unaudited
|
Adjusted EBITDA margin
|
|
|
21.5%
|
|
|
23.0%
|
|
|
21.2%
|
|
|
24.4%
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net unrealized foreign exchange gains
|
|
|
1.3%
|
|
|
-
|
|
|
2.6%
|
|
|
-
|
Net profit on sale of property, plant and equipment and intangible
assets
|
|
|
-
|
|
|
0.0%
|
|
|
-
|
|
|
0.0%
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
|
3.5%
|
|
|
3.4%
|
|
|
3.6%
|
|
|
3.5%
|
Amortization
|
|
|
4.0%
|
|
|
5.2%
|
|
|
3.1%
|
|
|
4.9%
|
Impairment
|
|
|
-
|
|
|
0.7%
|
|
|
-
|
|
|
1.4%
|
Share-based compensation costs
|
|
|
0.4%
|
|
|
0.2%
|
|
|
0.4%
|
|
|
0.1%
|
Net loss on sale of property, plant and equipment and intangible
assets
|
|
|
0.0%
|
|
|
-
|
|
|
0.0%
|
|
|
-
|
Foreign currency translation reserve released due to liquidation of
intermediary subsidiary holding company
|
|
|
-
|
|
|
(0.3%)
|
|
|
-
|
|
|
(0.6%)
|
Increase/(decrease) in provision for restructuring costs
|
|
|
0.4%
|
|
|
-
|
|
|
0.0%
|
|
|
-
|
Transaction costs arising from the acquisition of a business
|
|
|
-
|
|
|
0.0%
|
|
|
-
|
|
|
0.0%
|
Non-recurring initial public offering costs
|
|
|
1.4%
|
|
|
-
|
|
|
2.7%
|
|
|
-
|
Net unrealized foreign exchange losses
|
|
|
-
|
|
|
0.3%
|
|
|
-
|
|
|
0.5%
|
Operating profit margin
|
|
|
13.1%
|
|
|
13.5%
|
|
|
14.0%
|
|
|
14.6%
|
Add: Finance income
|
|
|
0.3%
|
|
|
0.2%
|
|
|
0.3%
|
|
|
0.1%
|
Less: Finance costs
|
|
|
0.2%
|
|
|
0.4%
|
|
|
0.2%
|
|
|
0.4%
|
Taxation
|
|
|
4.0%
|
|
|
3.8%
|
|
|
4.5%
|
|
|
4.1%
|
Profit for the period margin
|
|
|
9.2%
|
|
|
9.5%
|
|
|
9.6%
|
|
|
10.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6. Net cash
Net cash is calculated as being net cash and cash equivalents, excluding
restricted cash less interest bearing borrowings.
7. Dividends
A final dividend of R39.6 million or $3.9 million (2012: R52.6 million
or $5.2 million) was declared during the period and paid on July 8,
2013. Using shares in issue of 660.2 million (2012: 657.2 million) this
equated to a dividend of 6.0 or $0.6 (2012: 8.0 or $0.8) cents per share.
Following the completion of its initial public offering of ADRs, the
Company discontinued its policy of declaring regular dividends in order
to increase the funds available to pursue opportunities for more rapid
growth.
8. Other income/(expenses) – net
Other income/(expenses) – net increased significantly over the period
predominantly due to foreign currency exposure relating to the proceeds
received from the NYSE listing (note 13) which resulted in unrealized
foreign exchange gains of R10.5 million ($1.0 million) being recorded in
the current period. As a result of the U.S. listing proceeds being
retained in U.S. dollar, in future reporting periods, a 5%
strengthening/(weakening) in the South African rand against the U.S.
dollar would result in an increase/(decrease) in profit before taxation
of R33.0 million ($3.3 million).
9. Other Operating and Financial Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months
|
|
|
Six months
|
|
|
Three months
|
|
|
Three months
|
|
|
|
|
ended
|
|
|
ended
|
|
|
ended
|
|
|
ended
|
South African rand
|
|
|
|
September 30,
|
|
|
September 30,
|
|
|
September 30,
|
|
|
September 30,
|
Figures are stated in thousands unless
|
|
|
|
2013
|
|
|
2012
|
|
|
2013
|
|
|
2012
|
otherwise stated
|
|
|
|
Unaudited
|
|
|
Unaudited
|
|
|
Unaudited
|
|
|
Unaudited
|
Subscription revenue
|
|
|
|
401,272
|
|
|
324,395
|
|
|
207,064
|
|
|
164,995
|
Adjusted EBITDA (note 4)
|
|
|
|
132,110
|
|
|
129,881
|
|
|
66,876
|
|
|
69,311
|
Cash and cash equivalents
|
|
|
|
767,770
|
|
|
93,176
|
|
|
767,770
|
|
|
93,176
|
Net cash
|
|
|
|
703,286
|
|
|
1,055
|
|
|
703,286
|
|
|
1,055
|
Capital expenditure
|
|
|
|
(63,855)
|
|
|
(45,030)
|
|
|
(32,793)
|
|
|
(25,076)
|
Vehicles under subscription ('000)
|
|
|
|
404,034
|
|
|
314,923
|
|
|
404,034
|
|
|
314,923
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exchange Rates
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following major rates of exchange were used:
|
|
|
|
|
|
|
|
|
|
|
|
SA rand : United States dollar
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- closing
|
|
|
10.10
|
|
|
8.31
|
|
|
10.10
|
|
|
8.31
|
|
- average
|
|
|
9.73
|
|
|
8.19
|
|
|
9.99
|
|
|
8.26
|
SA rand : British pound
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- closing
|
|
|
16.28
|
|
|
13.44
|
|
|
16.28
|
|
|
13.44
|
|
- average
|
|
|
15.02
|
|
|
12.94
|
|
|
15.49
|
|
|
13.05
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months
|
|
|
Six months
|
|
|
Three months
|
|
|
Three months
|
|
|
|
|
ended
|
|
|
ended
|
|
|
ended
|
|
|
ended
|
United States dollar
|
|
|
|
September 30,
|
|
|
September 30,
|
|
|
September 30,
|
|
|
September 30,
|
Figures are stated in thousands unless
|
|
|
|
2013
|
|
|
2012
|
|
|
2013
|
|
|
2012
|
otherwise stated
|
|
|
|
Unaudited
|
|
|
Unaudited
|
|
|
Unaudited
|
|
|
Unaudited
|
Subscription revenue
|
|
|
|
39,725
|
|
|
32,115
|
|
|
20,499
|
|
|
16,334
|
Adjusted EBITDA
|
|
|
|
13,079
|
|
|
12,858
|
|
|
6,621
|
|
|
6,862
|
Cash and cash equivalents
|
|
|
|
76,008
|
|
|
9,224
|
|
|
76,008
|
|
|
9,224
|
Net cash
|
|
|
|
69,624
|
|
|
104
|
|
|
69,624
|
|
|
104
|
Capital expenditure
|
|
|
|
(6,322)
|
|
|
(4,458)
|
|
|
(3,246)
|
|
|
(2,482)
|
Vehicles under subscription ('000)
|
|
|
|
404,034
|
|
|
314,923
|
|
|
404,034
|
|
|
314,923
|
|
|
|
South African rand amounts have been translated to U.S. dollars at the
exchange rate of R10.1012 per $1.00, which was the R/$ exchange rate
reported by the South African Reserve Bank as of September 30, 2013. The
U.S. dollar figures may not compute as they are rounded independently.
10. Contingent liabilities
Network Services Agreement
In terms of a network services agreement with Mobile Telephone Networks
Proprietary Limited (“MTN”), MTN is entitled to claw back payments from
MiX Telematics Africa Proprietary Limited in the event of early
cancellation of the agreement or certain base connections not being
maintained over the term of the agreement. The maximum potential
liability under the arrangement is R62.2 million ($6.2 million). No loss
is considered probable under this arrangement.
11. Restatement
In-vehicle devices
The Group has certain tracking devices which are installed in customer
vehicles (“in-vehicle devices”). In prior periods the Group classified
in-vehicle devices installed as inventory held in client vehicles, which
was included as a separate financial statement line item under current
assets in the statement of financial position. In addition, devices
which were designated for installation in client vehicles were accounted
for as inventory.
At March 31, 2013, the Group changed the classification of in-vehicle
devices to property, plant and equipment, since they represent tangible
items that are held for use in the supply of services, and are expected
to be used for more than one period. Management have adjusted their
accounting policy accordingly.
The reclassification has been adopted retrospectively and the
comparative amounts for the six months ended September 30, 2012 have
been restated accordingly.
The Group’s income statement continues to include a systematic
allocation of the cost of installed in-vehicle devices in cost of sales
in the form of depreciation (previously rental units consumed), and the
change in classification therefore has had no impact on the Group’s
income statement or statement of comprehensive income or any of the
earnings per share measures for the half year ended September 30, 2012.
The Group classifies cash payments to acquire property, plant and
equipment as investing activities, and the change in classification of
in-vehicle devices from inventory to property, plant and equipment
therefore resulted in a change in classification of cash flows
associated with the acquisition of such items. This is because the Group
now considers the expenditure associated with the acquisition of
in-vehicle devices to have been made for resources intended to generate
future income and cash flows. The effects on the consolidated statement
of cash flows for the half year ended September 30, 2012 is an increase
in cash generated from operations of R18.3 million ($1.8 million), and
an increase in net cash used in investing activities of R18.3 million
($1.8 million).
Restricted cash
At March 31, 2013, the Group reclassified cash flow movements in
restricted cash from operating activities to investing activities. The
effect on the consolidated statement of cash flows for the half year
ended September 30, 2012 is an increase in cash generated from
operations of R3.5 million and an increase in net cash used in investing
activities of R3.5 million.
12. Fair value of financial assets and liabilities measured at
amortised cost
The fair value of the Group’s financial assets and liabilities
approximate their carrying amounts at September 30, 2013.
13. New York Stock Exchange listing and proceeds from shares issued
On August 9, 2013, following a successful U.S. initial public offering
of American Depositary Receipt or “ADRs”, each of which represents 25
ordinary shares of no par value, The Group’s ADRs were listed on the
NYSE and are traded under the symbol MIXT.
As part of the U.S. initial public offering of ADRs, the Group settled
4,400,000 ADRs on August 14, 2013 and raised R649.9 million ($65.5
million) for the Company (before expenses). Selling shareholders sold an
additional 2,840,512 ADRs, resulting in a total capital raise by the
Group and selling shareholders, prior to underwriting discount, of
R1,150.0 million ($115.8 million).
Reconciliation of Initial public offering
price and proceeds received, net of expenses:
|
|
|
|
|
|
|
|
|
|
Figures are stated in thousands unless otherwise stated
|
|
|
South African rand
|
|
|
|
|
United States dollar
|
Initial public offering price
|
|
|
1,150,013
|
|
|
|
|
115,848
|
Underwriting discount
|
|
|
(80,501)
|
|
|
|
|
(8,109)
|
Proceeds received by selling shareholders (before expenses)
|
|
|
(419,578)
|
|
|
|
|
(42,267)
|
Proceeds received by Company (before expenses)
|
|
|
649,934
|
|
|
|
|
65,472
|
Share issue expenses
|
|
|
(27,182)
|
|
|
|
|
(2,738)
|
Proceeds from shares issued, net of share issue costs
|
|
|
622,752
|
|
|
|
|
62,734
|
The Group has translated the above U.S. dollar amounts from South
African rand at the exchange rate of R9.9269 per $1.00, which was the
R/$ exchange rate on August 14, 2013, the date that the shares were
settled on the JSE Limited.
14. Restructuring
During the period, the Europe fleet solutions segment implemented a
restructuring plan. The total cost of restructuring was approximately
R2.8 million. The restructuring is expected to result in operating cost
savings for the segment in future.
15. Subsequent events
The directors are not aware of any matter material or otherwise arising
since September 30, 2013 and up to the date of this report, not
otherwise dealt with herein.
16. Changes to the Board
On May 13, 2013, E Banda was appointed as an independent non-executive
director and as a member of the Audit and Risk Committee. F Roji has
resigned as non-executive director of the Board of Directors and has
been appointed as an alternate director to HR Brody with effect from May
13, 2013.
The following Board of Director members resigned, with effect from
August 9, 2013:
• R Shough, an independent non-executive director;
• R Botha, executive director responsible for special projects;
• T Buzer, executive director responsible for development and
engineering; and
• H Scott, executive director responsible for strategy and acquisition.
R Botha, T Buzer and H Scott continue to serve as full-time Group
executive committee members.
For and on behalf of the Board:
SR Bruyns SB Joselowitz
Midrand
November 5, 2013
Mix Telematics Limited
Incorporated in the Republic of South Africa.
Registration number 1995/013858/06
JSE code: MIX NYSE code: MIXT ISIN: ZAE000125316
(“MiX” or “the Company” or “the Group”)
Registered office
Matrix Corner, Howick Close, Waterfall Park, Midrand
Directors
SR Bruyns* (Chairman), SB Joselowitz (CEO), E Banda*, HR Brody*, CH
Ewing*, RA Frew*,
ML Pydigadu, F Roji (Alternate to HR Brody)*, CWR Tasker; AR Welton*
* Non-executive
Company secretary
Java Capital Trustees and Sponsors Proprietary Limited
Auditors
PricewaterhouseCoopers Inc.
Sponsor
Java Capital

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