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 R11.2416 per $1.00, which was the R/$ exchange rate reported by the South African Reserve Bank as of September 30, 2014.
Second quarter and first half highlights:
- Subscribers increased by 19% year over year, bringing the total to over 479,000 subscribers at September 30, 2014
- Second quarter subscription revenue of R241.8 million ($21.5 million), grew 17% year over year
- Second quarter Adjusted EBITDA of R70.7 million ($6.3 million), representing a 20% Adjusted EBITDA margin
- First half subscription revenue of R478.4 million ($42.6 million), grew 19% year over year
- First half Adjusted EBITDA of R122.7 million ($10.9 million), representing a 18% Adjusted EBITDA margin
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 2015, which ended September
30, 2014.
“Relative to the first quarter, we experienced an improved demand
environment and saw a 35% sequential increase in net subscriber
additions. For the six months we added close to 29,000 subscribers,
finishing the half year with a total base of over 479,000. However, our
cumulative adds for the year remain well behind our internal plan, and
consequently we have lowered our revenue and earnings targets for the
fiscal year,” said Stefan Joselowitz, Chief Executive Officer of MiX
Telematics. “While we continue to face macroeconomic headwinds in South
Africa, our business is growing and is handsomely profitable. Comparing
the first half of fiscal year 2015 to the comparative period last year,
all of our regions showed year over year subscriber growth. The Americas
and Europe grew subscribers at around 10%, with the balance of our
operations growing at around 20% or better. Additionally, we are taking
advantage of strategic opportunities: We acquired a key reseller in
South Africa, which will be immediately accretive to both our top and
bottom lines, and we are winning major contracts. We continue to believe
that MiX Telematics is well positioned to be a prime beneficiary of
telematics market growth as we have already achieved meaningful scale,
built a global distribution network and offer state of the art solutions
that yield a powerful ROI for our customers.”
Financial Performance for the three months ended September 30, 2014
Revenue:
Total revenue was R351.0 million ($31.2 million), an increase of 11.4%
compared to R315.0 million ($28.0 million) for the second quarter of
fiscal year 2014. Subscription revenue was R241.8 million ($21.5
million), an increase of 16.8% compared with R207.1 million ($18.4
million) for the second quarter of fiscal year 2014. Growth in
subscription revenue was driven primarily by an increase of over 75,000
subscribers, which resulted in an increase in subscribers of 18.6% from
September 2013 to September 2014. Hardware and other revenue was R109.2
million ($9.7 million), an increase of 1.2% compared to R107.9 million
($9.6 million) for the second quarter of fiscal year 2014.
Gross Margin: Gross profit was R240.1 million ($21.4 million), as
compared to R204.2 million ($18.2 million) for the second quarter of
fiscal year 2014. Gross profit margin was 68.4%, compared to 64.8% for
the second quarter of fiscal year 2014.
Operating Margin: Operating profit was R37.1 million ($3.3
million), compared to R34.7 million ($3.1 million) for the second
quarter of fiscal year 2014. Operating margin was 10.6%, compared to
11.0% for the second quarter of fiscal year 2014. The Company is
executing its strategy of investing in sales and marketing and as a
result sales and marketing costs for the second quarter of fiscal 2015
increased by R7.6 million ($0.7 million) from the second quarter of
fiscal 2014. Administration and other charges increased by R24.5 million
($2.2 million) primarily as a result of investments in headcount
necessary to support the Company's growth initiatives and increased
regulatory and reporting compliance requirements for U.S. listed public
companies. Administration and other costs included non-recurring
litigation costs of R6.5 million ($0.6 million) in the second quarter of
fiscal year 2015 while the second quarter of fiscal year 2014 included
non-recurring initial public offering costs of R8.5 million ($0.8
million).
Adjusted EBITDA: Adjusted EBITDA, a non-IFRS measure, was R70.7
million ($6.3 million) compared to R66.9 million ($5.9 million) for the
second quarter of fiscal year 2014. Adjusted EBITDA margin, a non-IFRS
measure, for the second quarter of fiscal year 2015 was 20.2%, compared
to 21.2% for the second quarter of fiscal year 2014.
Profit for the period and earnings per share: Profit for the
period was R48.9 million ($4.4 million), compared to R30.3 million ($2.7
million) in the second quarter of fiscal year 2014. Earnings per diluted
ordinary share were 6 South African cents, compared to 4 South African
cents in the second quarter of fiscal year 2014. For the second quarter
of fiscal 2015, the calculation was based on diluted weighted average
ordinary shares in issue of 804.8 million compared to 755.7 million
diluted weighted average ordinary shares in issue during the second
quarter of fiscal 2014.
The Company's effective tax rate for the quarter was 33.0% in comparison
to 31.9% in the second quarter of fiscal 2014.
On a U.S. Dollar basis, and using the September 30, 2014 exchange rate
of R11.2416 per U.S. Dollar, and at a ratio of 25 ordinary shares to one
American Depositary Share ("ADS"), profit for the period was $4.4
million, or 14 U.S. cents per diluted ADS.
Adjusted earnings for the period and adjusted earnings per share:
Adjusted earnings for the period, a non-IFRS measure, was R26.4 million
($2.4 million), compared to R23.4 million ($2.1 million) in the second
quarter of the 2014 fiscal year and excludes a net foreign exchange gain
of R34.2 million ($3.0 million). The net foreign exchange gain includes
R38.6 million ($3.4 million) relating to a foreign exchange gain on the
IPO proceeds which are maintained in U.S. Dollars and are therefore
sensitive to R:$ exchange rate movements. Adjusted earnings per diluted
ordinary share, also a non-IFRS measure, were 3 South African cents,
compared to 3 South African cents in the second quarter of fiscal year
2014.
On a U.S. Dollar basis, and using the September 30, 2014 exchange rate
of R11.2416 per U.S. Dollar, and at a ratio of 25 ordinary shares to one
ADS, adjusted profit for the period was $2.4 million, or 7 U.S. cents
per diluted ADS.
Statement of Financial Position and Cash Flow: At September 30,
2014, the Company had R904.6 million ($80.5 million) of cash and cash
equivalents, compared to R767.8 million ($68.3 million) at September 30,
2013. The Company generated R61.1 million ($5.4 million) in net cash
from operating activities for the three months ended September 30, 2014
and invested R37.9 million ($3.4 million) in capital expenditures during
the quarter, leading to free cash flow of R23.2 million ($2.1 million)
for the second quarter of fiscal year 2015, compared with free cash flow
of R11.5 million ($1.0 million) for the second quarter of fiscal year
2014. Free cash flow is determined as net cash generated from operating
activities less capital expenditure per investing activities.
An explanation of non-IFRS measures used in this press release is set
out in the Non-IFRS financial measures section of this press
release. A reconciliation of these non-IFRS measures to the most
directly comparable IFRS measures is provided in the financial tables
that accompany this release.
Financial Performance for the first half of fiscal year 2014
Revenue:
Total revenue for the first half of fiscal year 2015 was R670.2
million ($59.6 million), an increase of 9.3% compared to R613.4 million
($54.6 million) for the first half of fiscal year 2014. Subscription
revenue increased to R478.4 million ($42.6 million), up 19.2% from
R401.3 million ($35.7 million) for the first half of fiscal year 2014.
Subscription revenue growth was driven primarily by the increase in
subscribers since the end of the first half of fiscal 2014. Hardware and
other revenue was R191.8 million ($17.1 million), compared to R212.1
million ($18.9 million) for the first half of fiscal year 2014.
Gross margin: Gross profit for the first half of fiscal year 2015
was R451.7 million ($40.2 million), an increase compared to R402.4
million ($35.8 million) for the first half of fiscal year 2014. Gross
profit margin was 67.4%, up from 65.6% for the first half of fiscal year
2014. In the first half of fiscal 2015, subscription revenue, which
generates a higher gross profit margin than hardware and other revenue,
contributed 71.4% of total revenue compared to 65.4% in the first half
of fiscal 2014.
Operating margin: Operating profit for the first half of fiscal
year 2015 was R59.7 million ($5.3 million), compared to R72.0 million
($6.4 million) posted in the first half of fiscal year 2014. The
operating margin for the first half of fiscal year 2015 was 8.9%,
compared to the 11.7% posted in the first half of fiscal year 2014. The
Company is executing its strategy of investing in sales and marketing
and as a result sales and marketing costs for the first half of fiscal
2015 increased by R18.7 million ($1.7 million) from the first half of
fiscal 2014. Administration and other costs increased by R42.0 million
($3.7 million) primarily as a result of investments in headcount
necessary to support the Company's growth initiatives and additional
costs pertaining to regulatory and reporting compliance requirements for
U.S. listed public companies. Administration and other costs included
non-recurring litigation costs of R8.6 million ($0.8 million) in the
first half of fiscal year 2015 while the first half of fiscal year 2014
included non-recurring initial public offering costs of R8.5 million
($0.8 million).
Adjusted EBITDA: Adjusted EBITDA was R122.7 million ($10.9
million) compared to R132.1 million ($11.8 million) for the first half
of fiscal year 2014. The Adjusted EBITDA margin for the first half of
fiscal year 2015 was 18.3%, compared with the 21.5% in the first half of
fiscal year 2014.
Profit for the year and earnings per share: Profit for the first
half of fiscal year 2015 was R65.0 million ($5.8 million), compared to
R56.6 million ($5.0 million) in the first half of fiscal year 2014.
Earnings per diluted ordinary share were 8 South African cents, which
was unchanged from the first half of fiscal year 2014. For the first
half of fiscal year 2015, the calculation was based on diluted weighted
average ordinary shares in issue of 804.7 million compared to 727.3
million diluted weighted average ordinary shares in issue during the
first half of fiscal year 2014.
The Company's effective tax rate for the first half of fiscal year 2015
was 32.9% in comparison to 30.2% in the first half of fiscal year 2014.
Adjusted earnings for the period and adjusted earnings per share: Adjusted
profit for the first half of fiscal year 2015, a non-IFRS measure, was
R42.8 million ($3.8 million), compared to R50.5 million ($4.5 million)
in the first half of fiscal year 2014 and excludes a net foreign
exchange gain of R34.0 million ($3.0 million). The net foreign exchange
gain includes R39.3 million ($3.5 million) relating to a foreign
exchange gain on the IPO proceeds which are maintained in U.S. Dollars
and are therefore sensitive to R:$ exchange rate movements. Adjusted
earnings per diluted ordinary share were 5 South African cents, compared
to 7 South African cents in the first half of fiscal year 2014.
On a U.S. Dollar basis, and using the September 30, 2014 exchange rate
of R11.2416 per U.S. Dollar, and at a ratio of 25 ordinary shares to one
ADS, adjusted profit for the first half of fiscal year 2015 was $3.8
million, or 12 U.S. cents per diluted ADS, compared to $4.5 million, or
15 U.S. cents per diluted ADS in the first half of fiscal year 2014.
Cash Flow: The Company generated R67.3 million ($6.0 million) in
net cash from operating activities for the first half of fiscal year
2015 and invested R66.1 million ($5.9 million) in capital expenditures
during the period, leading to free cash flow of R1.2 million ($0.1
million) for the first half of fiscal year 2015, compared with free cash
flow of R7.1 million ($0.6 million) for the first half of fiscal year
2014. The decrease in free cash flow is primarily attributable to a
decrease in cash generated from operating activities of R3.7 million
($0.3 million) as a result of increased working capital investments and
an increase in capital expenditure of R2.2 million ($0.2 million) in the
first half of fiscal year 2015.
Segment commentary for the first half of fiscal year 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
|
|
|
|
Revenue
|
|
|
|
Adjusted EBITDA
|
|
|
|
Margin
|
|
|
|
Half-year
|
|
|
|
Half-year
|
|
|
|
Half-year
|
|
|
|
2015
|
|
% change on
|
|
2015
|
|
% change on
|
|
2015
|
|
Segment
|
|
R'000
|
|
prior year
|
|
R'000
|
|
prior year
|
|
R'000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Africa
|
|
341,595
|
|
5.2%
|
|
97,788
|
|
1.8%
|
|
28.6%
|
|
|
The subscriber base has grown by 20.9% since September 30, 2013.
Modest revenue growth of 5.2% is attributable to lower hardware
revenue caused by a revenue mix shift towards bundled sales for
fleet products. The segment delivered a strong Adjusted EBITDA
margin of 28.6%.
|
|
Europe
|
|
82,017
|
|
19.3%
|
|
2,675
|
|
168.8%
|
|
3.3%
|
|
|
Revenue was flat on a constant currency basis with lower hardware
sales offsetting subscription revenue growth of about 8% on a
constant currency basis. The subscriber base grew 9.0% from
September 30, 2013.
Operating cost savings, as a result of the European business
undertaking a restructuring in the first quarter of fiscal 2014,
resulted in the reported Adjusted EBITDA growth.
|
|
Americas
|
|
83,633
|
|
33.5%
|
|
(1,061)
|
|
50.0%
|
|
(1.3%)
|
|
|
The subscriber base increased by 20.1% from September 30, 2013 -
12.1% of the increase relates to a transfer of Latin American
subscribers from the Middle East operation during the second quarter
of fiscal 2015. Subscription revenue growth was 13.0% on a constant
currency basis. Investments in our sales and distribution capacity
are being made in order to position the segment for future growth in
both North and South America. As a result the segment posted a
negative Adjusted EBITDA margin.
|
|
Middle East and
Australasia
|
|
150,234
|
|
(2.9%)
|
|
(798)
|
|
—
|
|
(0.5%)
|
|
|
Subscribers increased 12.5% from September 30, 2013 despite the
aforementioned subscriber transfer to the Americas segment. While
subscription revenue increased by 19.4% on a constant currency
basis, total revenue declined as a result of lower hardware revenue
in the Middle East. As a result of this and additional investments
in sales and marketing, headcount and infrastructure necessary to
support future growth, the region reported a negative Adjusted
EBITDA margin of 0.5%.
|
|
Brazil
|
|
12,152
|
|
209.5%
|
|
(6,897)
|
|
(27.9%)
|
|
(56.8%)
|
|
|
The Brazil operation has not yet reached critical mass and
therefore, despite revenue growth in excess of 200%, the region
recorded an expected Adjusted EBITDA loss.
|
|
International
central services
organization
|
|
191,391
|
|
10.6%
|
|
55,804
|
|
18.6%
|
|
29.2%
|
|
|
International CSO 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.
International CSO is also responsible for the development of our
hardware and software platforms. International CSO continues to
benefit from the subscriber growth throughout the Company and
reported growth at both the revenue and Adjusted EBITDA level.
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|
|
|
|
Business Outlook
MiX Telematics has translated U.S. Dollar amounts in this Business
Outlook paragraph from South African Rand at the exchange rate of
R11.0385 per $1.00, which was the R/$ exchange rate reported by the
South African Reserve Bank as of November 4, 2014.
Based on information as of today, November 6, 2014, the Company is
issuing the following financial guidance for the full 2015 fiscal year:
-
Revenue - R1,325 million to R1,350 million ($120.0 million to $122.3
million), which would represent revenue growth of 4% to 6% compared to
fiscal year 2014.
-
Subscription revenue - R980 million to R990 million ($88.8 million to
$89.7 million), which would represent subscription revenue growth of
15% to 16% compared to fiscal year 2014.
-
Adjusted EBITDA - R237 million to R252 million ($21.5 million to $22.8
million), which would represent a decline in Adjusted EBITDA of 16% to
11% compared to fiscal year 2014.
-
Adjusted earnings per diluted ordinary share of 12.0 to 13.5 South
African cents based on 810 million diluted ordinary shares in issue,
and based on an effective tax rate of 29.0% to 33.0%. At a ratio of 25
ordinary shares to one ADS, this equates to adjusted earnings per
diluted ADS of 27 to 31 U.S. cents.
For the third quarter of fiscal year 2015 the Company expects
subscription revenue to be in the range of R246 million to R250 million
($22.3 million to $22.6 million) which would represent subscription
revenue growth of 12% to 14% compared to the third quarter of fiscal
year 2014.
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.
-
Achieving hardware sales according to expectations. Hardware sales are
dependent on the volumes of bundled solutions selected by customers.
-
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 Listings Requirements
Following the listing of the Company’s ADSs 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 Standard Time) and 3:00 p.m. (South
African Time) on November 6, 2014 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 1-888-516-2435 (within the United States) or
0 800 980 989 (within South Africa) or 1-719-325-2313 (outside of the
United States). The conference ID is 2212525.
-
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 2212525.
-
A replay of the webcast will also be available for a limited time at http://investor.mixtelematics.com.
About MiX Telematics Limited
MiX Telematics is a leading global provider of fleet and mobile asset
management solutions delivered as SaaS to customers in more than 120
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 Shares 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 without limitation, statements concerning our financial
guidance for the third quarter and full year of fiscal year 2015, our
position to execute on our growth strategy, and our ability to expand
our leadership position. 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.
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,
those described under the caption “Risk Factors” in the Company’s Annual
Report on Form 20-F filed with the Securities and Exchange Commission
(the "SEC") for the fiscal year ended March 31, 2014, as updated by
other reports that the Company files with or furnishes to 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 its financial
results, the Company has disclosed within this press release, Adjusted
EBITDA and Adjusted EBITDA margin. Adjusted EBITDA is a non-IFRS
financial measure, it does not represent cash flows from operations for
the periods indicated and should not be considered an alternative to net
income as an indicator of our results of operations or as an alternative
to cash flows from operations as an indicator of liquidity. 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 or subsidiaries, certain litigation
costs, certain non-recurring initial public offering or "IPO" costs,
unrealized foreign exchange gains/(losses) and foreign exchange
gains/(losses) related to the cash proceeds raised through the IPO.
Adjusted EBITDA does not have a standardized meaning and, accordingly,
the Company's definition of Adjusted EBITDA may not be comparable to
Adjusted EBITDA as used by other companies.
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 provides useful information to investors and others in
understanding and evaluating its operating results.
The Company's use of Adjusted EBITDA has limitations as an analytical
tool, and you 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,
our 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 our debt;
-
Adjusted EBITDA does not include interest earned on cash and cash
equivalents and other financial assets;
-
Adjusted EBITDA does not include certain foreign currency transaction
gains and losses;
-
Adjusted EBITDA does not include certain non-recurring IPO and
litigation costs; and
-
other companies, including companies in our industry, may calculate
Adjusted EBITDA differently, which reduces its usefulness as a
comparative measure.
Because of these limitations, you should consider Adjusted EBITDA and
Adjusted EBITDA margin alongside other financial performance measures,
including operating profit, profit for the period and our 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.
Adjusted Profit and Adjusted Earnings Per Share
Adjusted profit and adjusted earnings per share is defined as profit
attributable to owners of the parent excluding net foreign exchange
gains/(losses) net of tax for the relevant period. A reconciliation of
adjusted earnings to profit for the period has been included in the
financial results section of this announcement.
|
Unaudited interim financial results for the half year ended
September 30, 2014
|
|
|
|
CONDENSED CONSOLIDATED INCOME STATEMENTS
|
|
|
|
Six months
|
|
Six months
|
|
Three months
|
|
Three months
|
|
South African Rand
|
|
ended
|
|
ended
|
|
ended
|
|
ended
|
|
Figures are in thousands unless otherwise stated
|
|
September 30,
|
|
September 30,
|
|
September 30,
|
|
September 30,
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
670,210
|
|
|
613,408
|
|
|
351,000
|
|
|
314,961
|
|
|
Cost of sales
|
|
(218,559
|
)
|
|
(211,036
|
)
|
|
(110,931
|
)
|
|
(110,756
|
)
|
|
Gross profit
|
|
451,651
|
|
|
402,372
|
|
|
240,069
|
|
|
204,205
|
|
|
Other income/(expenses) - net
|
|
784
|
|
|
1,609
|
|
|
215
|
|
|
1,540
|
|
|
Operating expenses
|
|
(392,767
|
)
|
|
(331,998
|
)
|
|
(203,144
|
)
|
|
(171,083
|
)
|
|
-Sales and marketing
|
|
(86,938
|
)
|
|
(68,203
|
)
|
|
(41,632
|
)
|
|
(34,051
|
)
|
|
-Administration and other charges
|
|
(305,829
|
)
|
|
(263,795
|
)
|
|
(161,512
|
)
|
|
(137,032
|
)
|
|
Operating profit
|
|
59,668
|
|
|
71,983
|
|
|
37,140
|
|
|
34,662
|
|
|
Finance income/(costs) - net (note 3)
|
|
37,213
|
|
|
9,124
|
|
|
35,897
|
|
|
9,772
|
|
|
-Finance income
|
|
38,582
|
|
|
10,390
|
|
|
36,699
|
|
|
10,454
|
|
|
-Finance costs
|
|
(1,369
|
)
|
|
(1,266
|
)
|
|
(802
|
)
|
|
(682
|
)
|
|
Profit before taxation
|
|
96,881
|
|
|
81,107
|
|
|
73,037
|
|
|
44,434
|
|
|
Taxation
|
|
(31,874
|
)
|
|
(24,519
|
)
|
|
(24,089
|
)
|
|
(14,181
|
)
|
|
Profit for the period
|
|
65,007
|
|
|
56,588
|
|
|
48,948
|
|
|
30,253
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Owners of the parent
|
|
65,191
|
|
|
56,588
|
|
|
49,109
|
|
|
30,253
|
|
|
Non-controlling interests
|
|
(184
|
)
|
|
*
|
|
|
(161
|
)
|
|
*
|
|
|
|
|
65,007
|
|
|
56,588
|
|
|
48,948
|
|
|
30,253
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable earnings per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-basic (R)
|
|
0.08
|
|
|
0.08
|
|
|
0.06
|
|
|
0.04
|
|
|
-diluted (R)
|
|
0.08
|
|
|
0.08
|
|
|
0.06
|
|
|
0.04
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per American Depositary Share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-basic (R)
|
|
2.07
|
|
|
2.05
|
|
|
1.56
|
|
|
1.05
|
|
|
-diluted (R)
|
|
2.03
|
|
|
1.95
|
|
|
1.53
|
|
|
1.00
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ordinary shares ('000)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-in issue at September 30
|
|
790,788
|
|
|
772,950
|
|
|
790,788
|
|
|
772,950
|
|
|
-weighted average
|
|
786,468
|
|
|
688,787
|
|
|
788,220
|
|
|
717,059
|
|
|
-diluted weighted average
|
|
804,660
|
|
|
727,259
|
|
|
804,825
|
|
|
755,739
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average American Depositary Share ('000)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-in issue at September 30
|
|
31,632
|
|
|
30,918
|
|
|
31,632
|
|
|
30,918
|
|
|
-weighted average
|
|
31,459
|
|
|
27,551
|
|
|
31,529
|
|
|
28,682
|
|
|
-diluted weighted average
|
|
32,186
|
|
|
29,090
|
|
|
32,193
|
|
|
30,230
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Amounts less than $1,000/R1,000
|
|
|
CONDENSED CONSOLIDATED INCOME STATEMENTS
|
|
|
|
Six months
|
|
Six months
|
|
Three months
|
|
Three months
|
|
United States Dollar
|
|
ended
|
|
ended
|
|
ended
|
|
ended
|
|
Figures are in thousands unless otherwise stated
|
|
September 30,
|
|
September 30,
|
|
September 30,
|
|
September 30,
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
59,619
|
|
|
54,566
|
|
|
31,223
|
|
|
28,017
|
|
|
Cost of sales
|
|
(19,442
|
)
|
|
(18,773
|
)
|
|
(9,868
|
)
|
|
(9,852
|
)
|
|
Gross profit
|
|
40,177
|
|
|
35,793
|
|
|
21,355
|
|
|
18,165
|
|
|
Other income/(expenses) - net
|
|
70
|
|
|
143
|
|
|
19
|
|
|
137
|
|
|
Operating expenses
|
|
(34,939
|
)
|
|
(29,533
|
)
|
|
(18,070
|
)
|
|
(15,219
|
)
|
|
-Sales and marketing
|
|
(7,734
|
)
|
|
(6,067
|
)
|
|
(3,703
|
)
|
|
(3,029
|
)
|
|
-Administration and other charges
|
|
(27,205
|
)
|
|
(23,466
|
)
|
|
(14,367
|
)
|
|
(12,190
|
)
|
|
Operating profit
|
|
5,308
|
|
|
6,403
|
|
|
3,304
|
|
|
3,083
|
|
|
Finance income/(costs) - net (note 3)
|
|
3,310
|
|
|
811
|
|
|
3,194
|
|
|
869
|
|
|
-Finance income
|
|
3,432
|
|
|
924
|
|
|
3,265
|
|
|
930
|
|
|
-Finance costs
|
|
(122
|
)
|
|
(113
|
)
|
|
(71
|
)
|
|
(61
|
)
|
|
Profit before taxation
|
|
8,618
|
|
|
7,214
|
|
|
6,498
|
|
|
3,952
|
|
|
Taxation
|
|
(2,835
|
)
|
|
(2,181
|
)
|
|
(2,143
|
)
|
|
(1,261
|
)
|
|
Profit for the period
|
|
5,783
|
|
|
5,033
|
|
|
4,355
|
|
|
2,691
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Owners of the parent
|
|
5,799
|
|
|
5,033
|
|
|
4,369
|
|
|
2,691
|
|
|
Non-controlling interests
|
|
(16
|
)
|
|
*
|
|
|
(14
|
)
|
|
*
|
|
|
|
|
5,783
|
|
|
5,033
|
|
|
4,355
|
|
|
2,691
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable earnings per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-basic ($)
|
|
0.01
|
|
|
0.01
|
|
|
0.01
|
|
|
#
|
|
|
-diluted ($)
|
|
0.01
|
|
|
0.01
|
|
|
0.01
|
|
|
#
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per American Depositary Share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-basic ($)
|
|
0.18
|
|
|
0.18
|
|
|
0.14
|
|
|
0.09
|
|
|
-diluted ($)
|
|
0.18
|
|
|
0.17
|
|
|
0.14
|
|
|
0.09
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ordinary shares ('000)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-in issue at September 30
|
|
790,788
|
|
|
772,950
|
|
|
790,788
|
|
|
772,950
|
|
|
-weighted average
|
|
786,468
|
|
|
688,787
|
|
|
788,220
|
|
|
717,059
|
|
|
-diluted weighted average
|
|
804,660
|
|
|
727,259
|
|
|
804,825
|
|
|
755,739
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average American Depositary Share ('000)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-in issue at September 30
|
|
31,632
|
|
|
30,918
|
|
|
31,632
|
|
|
30,918
|
|
|
-weighted average
|
|
31,459
|
|
|
27,551
|
|
|
31,529
|
|
|
28,682
|
|
|
-diluted weighted average
|
|
32,186
|
|
|
29,090
|
|
|
32,193
|
|
|
30,230
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Amounts less than $1,000/R1,000
# Amounts less than
$0.01
|
|
|
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
|
|
|
|
South African Rand
|
|
United States Dollar
|
|
|
|
Six months
|
|
Six months
|
|
Six months
|
|
Six months
|
|
|
|
ended
|
|
ended
|
|
ended
|
|
ended
|
|
Figures are in thousands unless otherwise stated
|
|
September 30,
|
|
September 30,
|
|
September 30,
|
|
September 30,
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the period
|
|
65,007
|
|
|
56,588
|
|
|
5,783
|
|
|
5,033
|
|
Other comprehensive income:
|
|
|
|
|
|
|
|
|
|
|
|
|
Items that may be subsequently reclassified to profit or loss
|
|
|
|
|
|
|
|
|
|
|
|
|
Exchange differences on translating foreign operations
|
|
14,831
|
|
|
27,586
|
|
|
1,319
|
|
|
2,454
|
|
Exchange differences on net investments in foreign operations
|
|
3,661
|
|
|
2,737
|
|
|
326
|
|
|
244
|
|
Taxation relating to components of other comprehensive income
|
|
291
|
|
|
—
|
|
|
26
|
|
|
—
|
|
Other comprehensive income for the period, net of tax
|
|
18,783
|
|
|
30,323
|
|
|
1,671
|
|
|
2,698
|
|
Total comprehensive income for the period
|
|
83,790
|
|
|
86,911
|
|
|
7,454
|
|
|
7,731
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable to:
|
|
|
|
|
|
|
|
|
|
|
|
|
Owners of the parent
|
|
83,974
|
|
|
86,911
|
|
|
7,470
|
|
|
7,731
|
|
Non-controlling interests
|
|
(184
|
)
|
|
*
|
|
|
(16
|
)
|
|
*
|
|
Total comprehensive income for the period
|
|
83,790
|
|
|
86,911
|
|
|
7,454
|
|
|
7,731
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Amounts less than $1,000/R1,000
|
|
|
HEADLINE EARNINGS
|
|
Reconciliation of headline earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
South African Rand
|
|
United States Dollar
|
|
|
|
Six months
|
|
Six months
|
|
Six months
|
|
Six months
|
|
|
|
ended
|
|
ended
|
|
ended
|
|
ended
|
|
Figures are in thousands unless otherwise stated
|
|
September 30,
|
|
September 30,
|
|
September 30,
|
|
September 30,
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the period attributable to owners of the parent
|
|
65,191
|
|
|
56,588
|
|
|
5,799
|
|
|
5,033
|
|
|
Adjusted for:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit on disposal of property, plant and equipment and intangible
assets
|
|
126
|
|
|
54
|
|
|
11
|
|
|
5
|
|
|
Impairment of property, plant and equipment (note 5)
|
|
649
|
|
|
-
|
|
|
58
|
|
|
-
|
|
|
Impairment of product development costs capitalized (note 5)
|
|
456
|
|
|
-
|
|
|
41
|
|
|
-
|
|
|
Income tax effect on the above components
|
|
(343
|
)
|
|
(14
|
)
|
|
(31
|
)
|
|
(1
|
)
|
|
Headline earnings attributable to owners of the parent
|
|
66,079
|
|
|
56,628
|
|
|
5,878
|
|
|
5,037
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Headline earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Headline earnings per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-basic (R/$)
|
|
0.08
|
|
|
0.08
|
|
|
0.01
|
|
|
0.01
|
|
|
-diluted (R/$)
|
|
0.08
|
|
|
0.08
|
|
|
0.01
|
|
|
0.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Headline earnings per American Depositary Share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-basic (R/$)
|
|
2.10
|
|
|
2.06
|
|
|
0.19
|
|
|
0.18
|
|
|
-diluted (R/$)
|
|
2.05
|
|
|
1.95
|
|
|
0.18
|
|
|
0.17
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADJUSTED EARNINGS
|
|
Reconciliation of adjusted earnings
|
|
|
|
Six months
|
|
Six months
|
|
Three months
|
|
Three months
|
|
South African Rand
|
|
ended
|
|
ended
|
|
ended
|
|
ended
|
|
Figures are in thousands unless otherwise stated
|
|
September 30,
|
|
September 30,
|
|
September 30,
|
|
September 30,
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the period attributable to owners of the parent
|
|
65,191
|
|
|
56,588
|
|
|
49,109
|
|
|
30,253
|
|
|
Net foreign exchange gains (note 9)
|
|
(33,980
|
)
|
|
(8,290
|
)
|
|
(34,164
|
)
|
|
(9,501
|
)
|
|
Income tax effect on the above component
|
|
11,630
|
|
|
2,187
|
|
|
11,502
|
|
|
2,643
|
|
|
Adjusted earnings attributable to owners of the parent
|
|
42,841
|
|
|
50,485
|
|
|
26,447
|
|
|
23,395
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable adjusted earnings per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-basic (R)
|
|
0.05
|
|
|
0.07
|
|
|
0.03
|
|
|
0.03
|
|
|
-diluted (R)
|
|
0.05
|
|
|
0.07
|
|
|
0.03
|
|
|
0.03
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings per American Depositary Share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-basic (R)
|
|
1.36
|
|
|
1.83
|
|
|
0.84
|
|
|
0.82
|
|
|
-diluted (R)
|
|
1.33
|
|
|
1.74
|
|
|
0.82
|
|
|
0.77
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United States Dollar
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Figures are in thousands unless otherwise stated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the period attributable to owners of the parent
|
|
5,799
|
|
|
5,033
|
|
|
4,369
|
|
|
2,691
|
|
|
Net foreign exchange gains (note 9)
|
|
(3,023
|
)
|
|
(737
|
)
|
|
(3,039
|
)
|
|
(845
|
)
|
|
Income tax effect on the above component
|
|
1,035
|
|
|
195
|
|
|
1,023
|
|
|
235
|
|
|
Adjusted earnings attributable to owners of the parent
|
|
3,811
|
|
|
4,491
|
|
|
2,353
|
|
|
2,081
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable adjusted earnings per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-basic ($)
|
|
#
|
|
|
0.01
|
|
|
#
|
|
|
#
|
|
|
-diluted ($)
|
|
#
|
|
|
0.01
|
|
|
#
|
|
|
#
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings per American Depositary Share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-basic ($)
|
|
0.12
|
|
|
0.16
|
|
|
0.07
|
|
|
0.07
|
|
|
-diluted ($)
|
|
0.12
|
|
|
0.15
|
|
|
0.07
|
|
|
0.07
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
# Amounts less than $0.01
|
|
|
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
|
|
|
|
South African Rand
|
|
United States Dollar
|
|
Figures are in thousands unless otherwise stated
|
|
September 30,
|
|
March 31,
|
|
September 30,
|
|
March 31,
|
|
|
2014
|
|
2014
|
|
2014
|
|
2014
|
|
|
|
Unaudited
|
|
Audited
|
|
Unaudited
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant and equipment
|
|
132,914
|
|
|
129,079
|
|
|
11,823
|
|
|
11,482
|
|
|
Intangible assets
|
|
707,836
|
|
|
692,190
|
|
|
62,966
|
|
|
61,574
|
|
|
Available-for-sale financial asset
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
Finance lease receivable
|
|
3,295
|
|
|
6,677
|
|
|
293
|
|
|
594
|
|
|
Deferred tax assets
|
|
27,116
|
|
|
19,825
|
|
|
2,412
|
|
|
1,764
|
|
|
Total non-current assets
|
|
871,161
|
|
|
847,771
|
|
|
77,494
|
|
|
75,414
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inventory
|
|
46,192
|
|
|
39,774
|
|
|
4,109
|
|
|
3,538
|
|
|
Trade and other receivables
|
|
260,108
|
|
|
234,839
|
|
|
23,138
|
|
|
20,890
|
|
|
Finance lease receivable
|
|
6,816
|
|
|
6,652
|
|
|
606
|
|
|
592
|
|
|
Taxation
|
|
13,148
|
|
|
7,336
|
|
|
1,170
|
|
|
653
|
|
|
Restricted cash
|
|
13,480
|
|
|
10,279
|
|
|
1,199
|
|
|
915
|
|
|
Cash and cash equivalents
|
|
904,620
|
|
|
830,449
|
|
|
80,471
|
|
|
73,874
|
|
|
Total current assets
|
|
1,244,364
|
|
|
1,129,329
|
|
|
110,693
|
|
|
100,462
|
|
|
Total assets
|
|
2,115,525
|
|
|
1,977,100
|
|
|
188,187
|
|
|
175,876
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stated capital
|
|
1,435,033
|
|
|
1,429,250
|
|
|
127,653
|
|
|
127,139
|
|
|
Other reserves
|
|
(36,761
|
)
|
|
(58,335
|
)
|
|
(3,269
|
)
|
|
(5,189
|
)
|
|
Retained earnings
|
|
365,916
|
|
|
300,725
|
|
|
32,551
|
|
|
26,752
|
|
|
Equity attributable to owners of the parent
|
|
1,764,188
|
|
|
1,671,640
|
|
|
156,935
|
|
|
148,702
|
|
|
Non-controlling interest
|
|
(651
|
)
|
|
(10
|
)
|
|
(57
|
)
|
|
*
|
|
|
Total equity
|
|
1,763,537
|
|
|
1,671,630
|
|
|
156,878
|
|
|
148,702
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Borrowings
|
|
1,799
|
|
|
2,462
|
|
|
160
|
|
|
219
|
|
|
Deferred tax liabilities
|
|
38,486
|
|
|
20,601
|
|
|
3,424
|
|
|
1,833
|
|
|
Provisions
|
|
2,800
|
|
|
2,282
|
|
|
249
|
|
|
203
|
|
|
Share-based payment liability (note 11)
|
|
1,950
|
|
|
-
|
|
|
173
|
|
|
-
|
|
|
Total non-current liabilities
|
|
45,035
|
|
|
25,345
|
|
|
4,006
|
|
|
2,255
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade and other payables
|
|
228,470
|
|
|
228,961
|
|
|
20,322
|
|
|
20,368
|
|
|
Borrowings
|
|
1,309
|
|
|
1,279
|
|
|
116
|
|
|
114
|
|
|
Taxation
|
|
744
|
|
|
2,912
|
|
|
66
|
|
|
258
|
|
|
Provisions
|
|
19,418
|
|
|
19,163
|
|
|
1,727
|
|
|
1,705
|
|
|
Bank overdraft
|
|
57,012
|
|
|
27,810
|
|
|
5,072
|
|
|
2,474
|
|
|
Total current liabilities
|
|
306,953
|
|
|
280,125
|
|
|
27,303
|
|
|
24,919
|
|
|
Total liabilities
|
|
351,988
|
|
|
305,470
|
|
|
31,309
|
|
|
27,174
|
|
|
Total equity and liabilities
|
|
2,115,525
|
|
|
1,977,100
|
|
|
188,187
|
|
|
175,876
|
|
|
Net cash (note 7)
|
|
844,500
|
|
|
798,898
|
|
|
75,123
|
|
|
71,067
|
|
|
Net asset value per share (R/$)
|
|
2.23
|
|
|
2.13
|
|
|
0.20
|
|
|
0.19
|
|
|
Net tangible asset value per share (R/$)
|
|
1.33
|
|
|
1.25
|
|
|
0.12
|
|
|
0.11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditure
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-incurred
|
|
63,544
|
|
|
135,309
|
|
|
5,653
|
|
|
12,036
|
|
|
-authorized but not spent
|
|
45,044
|
|
|
60,115
|
|
|
4,007
|
|
|
5,348
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Amounts less than $1,000/R1,000
|
|
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
|
South African Rand
|
|
United States Dollar
|
|
|
|
Six months
|
|
Six months
|
|
Six months
|
|
Six months
|
|
|
|
ended
|
|
ended
|
|
ended
|
|
ended
|
|
Figures are in thousands unless otherwise stated
|
|
September 30,
|
|
September 30,
|
|
September 30,
|
|
September 30,
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash generated from operations
|
|
92,955
|
|
|
100,565
|
|
|
8,269
|
|
|
8,946
|
|
|
Net financing income
|
|
3,151
|
|
|
413
|
|
|
280
|
|
|
37
|
|
|
Taxation paid
|
|
(28,844
|
)
|
|
(30,028
|
)
|
|
(2,566
|
)
|
|
(2,671
|
)
|
|
Net cash generated from operating activities
|
|
67,262
|
|
|
70,950
|
|
|
5,983
|
|
|
6,312
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditure
|
|
(66,095
|
)
|
|
(63,855
|
)
|
|
(5,880
|
)
|
|
(5,680
|
)
|
|
Deferred consideration paid
|
|
(608
|
)
|
|
-
|
|
|
(54
|
)
|
|
-
|
|
|
Proceeds on sale of property, plant and equipment and intangible
assets
|
|
397
|
|
|
48
|
|
|
35
|
|
|
4
|
|
|
Increase in restricted cash
|
|
(3,009
|
)
|
|
(1,399
|
)
|
|
(268
|
)
|
|
(124
|
)
|
|
Net cash used in investing activities
|
|
(69,315
|
)
|
|
(65,206
|
)
|
|
(6,167
|
)
|
|
(5,800
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from issuance of ordinary shares
|
|
5,783
|
|
|
652,632
|
|
|
514
|
|
|
58,055
|
|
|
Share issue expenses paid
|
|
-
|
|
|
(15,444
|
)
|
|
-
|
|
|
(1,374
|
)
|
|
Repayment of borrowings
|
|
-
|
|
|
(3,542
|
)
|
|
-
|
|
|
(315
|
)
|
|
Dividends paid
|
|
-
|
|
|
(39,570
|
)
|
|
-
|
|
|
(3,520
|
)
|
|
Net cash generated from financing activities
|
|
5,783
|
|
|
594,076
|
|
|
514
|
|
|
52,846
|
|
|
Net increase in cash and cash equivalents
|
|
3,730
|
|
|
599,820
|
|
|
330
|
|
|
53,358
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash and cash equivalents at the beginning of the period
|
|
802,639
|
|
|
91,697
|
|
|
71,400
|
|
|
8,157
|
|
|
Exchange gains on cash and cash equivalents
|
|
41,239
|
|
|
11,769
|
|
|
3,669
|
|
|
1,046
|
|
|
Net cash and cash equivalents at the end of the period
|
|
847,608
|
|
|
703,286
|
|
|
75,399
|
|
|
62,561
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
|
|
|
|
Attributable to owners of the parent
|
|
|
|
|
|
|
South African Rand
|
|
|
|
|
|
|
|
|
|
Non-
|
|
|
|
Figures are in thousands unless
|
|
Stated
|
|
Other
|
|
Retained
|
|
Total
|
|
controlling
|
|
Total
|
|
otherwise stated
|
|
capital
|
|
reserves
|
|
earnings
|
|
|
|
interest
|
|
equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at April 1, 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 owners
|
|
626,182
|
|
|
2,578
|
|
|
(39,614
|
)
|
|
589,146
|
|
|
-
|
|
|
589,146
|
|
|
Shares issued in relation to share options exercised
|
|
3,430
|
|
|
-
|
|
|
-
|
|
|
3,430
|
|
|
-
|
|
|
3,430
|
|
|
Share-based payment
|
|
-
|
|
|
2,578
|
|
|
-
|
|
|
2,578
|
|
|
-
|
|
|
2,578
|
|
|
Proceeds from shares issued, net of share issue costs
|
|
622,752
|
|
|
-
|
|
|
-
|
|
|
622,752
|
|
|
-
|
|
|
622,752
|
|
|
Dividend declared of 6 cents per share (note 8)
|
|
-
|
|
|
-
|
|
|
(39,614
|
)
|
|
(39,614
|
)
|
|
-
|
|
|
(39,614
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at September 30, 2013 (Unaudited)
|
|
1,416,673
|
|
|
(78,461
|
)
|
|
205,724
|
|
|
1,543,936
|
|
|
(5
|
)
|
|
1,543,931
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income
|
|
-
|
|
|
18,093
|
|
|
95,001
|
|
|
113,094
|
|
|
(5
|
)
|
|
113,089
|
|
|
Profit for the period
|
|
-
|
|
|
-
|
|
|
95,001
|
|
|
95,001
|
|
|
(5
|
)
|
|
94,996
|
|
|
Other comprehensive income
|
|
-
|
|
|
18,093
|
|
|
-
|
|
|
18,093
|
|
|
-
|
|
|
18,093
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transactions with owners
|
|
12,577
|
|
|
2,033
|
|
|
-
|
|
|
14,610
|
|
|
-
|
|
|
14,610
|
|
|
Shares issued in relation to share options exercised
|
|
12,346
|
|
|
-
|
|
|
-
|
|
|
12,346
|
|
|
-
|
|
|
12,346
|
|
|
Share-based payment
|
|
-
|
|
|
2,033
|
|
|
-
|
|
|
2,033
|
|
|
-
|
|
|
2,033
|
|
|
Proceeds from shares issued, net of share issue costs
|
|
231
|
|
|
-
|
|
|
-
|
|
|
231
|
|
|
-
|
|
|
231
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at March 31, 2014 (Audited)
|
|
1,429,250
|
|
|
(58,335
|
)
|
|
300,725
|
|
|
1,671,640
|
|
|
(10
|
)
|
|
1,671,630
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income
|
|
-
|
|
|
18,783
|
|
|
65,191
|
|
|
83,974
|
|
|
(184
|
)
|
|
83,790
|
|
|
Profit for the period
|
|
-
|
|
|
-
|
|
|
65,191
|
|
|
65,191
|
|
|
(184
|
)
|
|
65,007
|
|
|
Other comprehensive income
|
|
-
|
|
|
18,783
|
|
|
-
|
|
|
18,783
|
|
|
-
|
|
|
18,783
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transactions with owners
|
|
5,783
|
|
|
2,791
|
|
|
-
|
|
|
8,574
|
|
|
(457
|
)
|
|
8,117
|
|
|
Shares issued in relation to share options exercised
|
|
5,783
|
|
|
-
|
|
|
-
|
|
|
5,783
|
|
|
-
|
|
|
5,783
|
|
|
Share-based payment
|
|
-
|
|
|
2,334
|
|
|
-
|
|
|
2,334
|
|
|
-
|
|
|
2,334
|
|
|
Transactions with non-controlling interest
|
|
-
|
|
|
457
|
|
|
-
|
|
|
457
|
|
|
(457
|
)
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at September 30, 2014 (Unaudited)
|
|
1,435,033
|
|
|
(36,761
|
)
|
|
365,916
|
|
|
1,764,188
|
|
|
(651
|
)
|
|
1,763,537
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Amounts less than R1,000
|
|
|
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
|
|
|
|
Attributable to owners of the parent
|
|
|
|
|
|
|
|
United States Dollar
|
|
|
|
|
|
|
|
|
|
|
Non-
|
|
|
|
Figures are in thousands unless
|
|
Stated
|
|
Other
|
|
Retained
|
|
|
|
|
controlling
|
|
Total
|
|
otherwise stated
|
|
capital
|
|
reserves
|
|
earnings
|
|
|
Total
|
|
interest
|
|
equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at April 1, 2013 (Unaudited)
|
|
70,318
|
|
|
(9,905
|
)
|
|
16,791
|
|
|
|
77,204
|
|
|
*
|
|
|
77,204
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income
|
|
-
|
|
|
2,698
|
|
|
5,033
|
|
|
|
7,731
|
|
|
*
|
|
|
7,731
|
|
|
Profit for the period
|
|
-
|
|
|
-
|
|
|
5,033
|
|
|
|
5,033
|
|
|
*
|
|
|
5,033
|
|
|
Other comprehensive income
|
|
-
|
|
|
2,698
|
|
|
-
|
|
|
|
2,698
|
|
|
-
|
|
|
2,698
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transactions with owners
|
|
55,702
|
|
|
229
|
|
|
(3,524
|
)
|
|
|
52,407
|
|
|
-
|
|
|
52,407
|
|
|
Shares issued in relation to share options exercised
|
|
305
|
|
|
-
|
|
|
-
|
|
|
|
305
|
|
|
-
|
|
|
305
|
|
|
Share-based payment
|
|
-
|
|
|
229
|
|
|
-
|
|
|
|
229
|
|
|
-
|
|
|
229
|
|
|
Proceeds from shares issued, net of share issue costs
|
|
55,397
|
|
|
-
|
|
|
-
|
|
|
|
55,397
|
|
|
-
|
|
|
55,397
|
|
|
Dividend declared of 0.5 cents per share (note 8)
|
|
-
|
|
|
-
|
|
|
(3,524
|
)
|
|
|
(3,524
|
)
|
|
-
|
|
|
(3,524
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at September 30, 2013 (Unaudited)
|
|
126,020
|
|
|
(6,978
|
)
|
|
18,300
|
|
|
|
137,342
|
|
|
*
|
|
|
137,342
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income
|
|
-
|
|
|
1,608
|
|
|
8,452
|
|
|
|
10,060
|
|
|
*
|
|
|
10,060
|
|
|
Profit for the period
|
|
-
|
|
|
-
|
|
|
8,452
|
|
|
|
8,452
|
|
|
*
|
|
|
8,452
|
|
|
Other comprehensive income
|
|
-
|
|
|
1,608
|
|
|
-
|
|
|
|
1,608
|
|
|
-
|
|
|
1,608
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transactions with owners
|
|
1,119
|
|
|
181
|
|
|
-
|
|
|
|
1,300
|
|
|
-
|
|
|
1,300
|
|
|
Shares issued in relation to share options exercised
|
|
1,098
|
|
|
-
|
|
|
-
|
|
|
|
1,098
|
|
|
-
|
|
|
1,098
|
|
|
Share-based payment
|
|
-
|
|
|
181
|
|
|
-
|
|
|
|
181
|
|
|
-
|
|
|
181
|
|
|
Proceeds from shares issued, net of share issue costs
|
|
21
|
|
|
-
|
|
|
-
|
|
|
|
21
|
|
|
-
|
|
|
21
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at March 31, 2014 (Unaudited)
|
|
127,139
|
|
|
(5,189
|
)
|
|
26,752
|
|
|
|
148,702
|
|
|
*
|
|
|
148,702
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income
|
|
-
|
|
|
1,671
|
|
|
5,799
|
|
|
|
7,470
|
|
|
(16
|
)
|
|
7,454
|
|
|
Profit for the period
|
|
-
|
|
|
-
|
|
|
5,799
|
|
|
|
5,799
|
|
|
(16
|
)
|
|
5,783
|
|
|
Other comprehensive income
|
|
-
|
|
|
1,671
|
|
|
-
|
|
|
|
1,671
|
|
|
-
|
|
|
1,671
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transactions with owners
|
|
514
|
|
|
249
|
|
|
-
|
|
|
|
763
|
|
|
(41
|
)
|
|
722
|
|
|
Shares issued in relation to share options exercised
|
|
514
|
|
|
-
|
|
|
-
|
|
|
|
514
|
|
|
-
|
|
|
514
|
|
|
Share-based payment
|
|
-
|
|
|
208
|
|
|
-
|
|
|
|
208
|
|
|
-
|
|
|
208
|
|
|
Transactions with non-controlling interest
|
|
-
|
|
|
41
|
|
|
-
|
|
|
|
41
|
|
|
(41
|
)
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at September 30, 2014 (Unaudited)
|
|
127,653
|
|
|
(3,269
|
)
|
|
32,551
|
|
|
|
156,935
|
|
|
(57
|
)
|
|
156,878
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Amounts less than $1,000
NOTES TO CONDENSED CONSOLIDATED FINANCIAL RESULTS
1. Basis of preparation and accounting policies
Condensed
unaudited Group interim financial results for the half year ended
September 30, 2014
These condensed unaudited Group interim
financial results for the half year ended September 30, 2014 have been
prepared in accordance with the recognition and measurement criteria of
International Financial Reporting Standards (IFRS), as issued by the
International Accounting Standards Board 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, 2014, which have been
prepared in accordance with IFRS. No new or revised accounting standards
have been adopted by the Group in fiscal 2015.
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, 2014.
Financial results for the second quarter of fiscal year 2015
In
addition to the Group’s interim financial results for the half year
ended September 30, 2014, additional financial information in respect of
the second quarter of fiscal year 2015 has been presented together with
the relevant comparative information. The quarterly information
comprises a condensed consolidated income statement, a reconciliation of
adjusted earnings to profit for the period, a reconciliation of Adjusted
EBITDA to profit for the period (note 5) and other financial and
operating data (note 12).
The accounting policies used in preparing the financial results for the
second quarter of fiscal year 2015 are consistent in all material
respects with those applied in the preparation of the Group’s annual
financial statements for the year ended March 31, 2014.
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, 2014, which have been
prepared in accordance with IFRS.
Presentation currency and convenience translation
The
Group’s presentation currency is South African Rand. In addition to
presenting these interim financial results in South African Rand,
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. Dollars amounts from
South African Rand at the exchange rate of R11.2416 per $1.00, which was
the R/$ exchange rate reported by the South African Reserve Bank as of
September 30, 2014. The U.S. Dollar figures may not compute as they are
rounded independently.
2. Accounting policies
The accounting policies are
consistent in all material respects with those applied in the
preparation of the annual financial statements for the year ended March
31, 2014.
3. Reclassification
Net foreign exchange gains/(losses)
During
the 2014 fiscal year, the Group changed its classification of foreign
exchange gains and losses in the income statement. Foreign exchange
gains and losses, which were previously classified as part of “Other
income/(expenses) - net”, are now classified as part of “Finance
income/(costs) - net”. The change is considered a more relevant
presentation of such items in the income statement since the majority of
foreign exchange gains and losses relate to translation differences on
foreign currency cash and cash equivalents arising from the initial
public offering proceeds.
The reclassification has been adopted retrospectively and the
comparative amounts for the six and three months ended September 30,
2013 have been adjusted accordingly. The reclassification was applied
for the first time during the three months ended December 31, 2013.
The impact of the reclassification results in a decrease of R8.3 million
($0.7 million) and R9.5 million ($0.8 million) in "Operating profit"
with corresponding additional income in “Finance income/(costs) - net"
for the six and three months ended September 30, 2013, respectively.
Profit before taxation and profit for the period remain unchanged for
the periods disclosed.
4. Segment information
As reported in our Annual Report on Form 20-F, during the 2014 fiscal
year the Group saw strong uptake of both its high-end fleet management
solutions and the low-end Beam-e track and trace solution (a consumer
product) in the Africa fleet solutions segment. Given the convergence
among the brands in Africa consumer solutions and Africa fleet solutions
these businesses were combined in June 2014 and we are reporting Africa
as a whole from fiscal 2015 onwards. This is consistent with the manner
in which segment information is reviewed by the chief operating decision
maker.
Additionally, the Group has noted a blending of product and service
types in the various geographies in which it operates. As a result, the
segment descriptions have been updated to only refer to the geography
and not to a specific product or service. This does not represent a
change to the segment reporting as the chief operating decision maker
continues to assess performance based on geography. The Group's product
range consists of asset tracking and fleet solutions.
The tables below present the segment information on this revised basis,
with the prior year amended to conform to the current year presentation
as shown below.
|
|
|
|
CONDENSED SEGMENTAL ANALYSIS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inter-
|
|
|
|
|
|
South African Rand
|
Total
|
|
segment
|
|
Adjusted
|
|
|
|
Figures are in thousands unless otherwise stated
|
revenue
|
|
revenue
|
|
EBITDA
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended September 30, 2014 (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Africa
|
|
341,595
|
|
|
-
|
|
|
97,788
|
|
|
420,375
|
|
|
Europe
|
|
82,017
|
|
|
(293
|
)
|
|
2,675
|
|
|
86,993
|
|
|
Americas
|
|
83,633
|
|
|
-
|
|
|
(1,061
|
)
|
|
83,972
|
|
|
Middle East and Australasia
|
|
150,234
|
|
|
(12
|
)
|
|
(798
|
)
|
|
162,890
|
|
|
Brazil
|
|
12,152
|
|
|
(5
|
)
|
|
(6,897
|
)
|
|
12,111
|
|
|
International Central Services Organization
|
|
191,391
|
|
|
(190,502
|
)
|
|
55,804
|
|
|
306,699
|
|
|
Total
|
|
861,022
|
|
|
(190,812
|
)
|
|
147,511
|
|
|
1,073,040
|
|
|
Corporate and consolidation entries
|
-
|
|
|
-
|
|
|
(24,767
|
)
|
|
1,265,509
|
|
|
Inter-segment elimination
|
|
(190,812
|
)
|
|
190,812
|
|
|
-
|
|
|
(223,024
|
)
|
|
Total
|
|
670,210
|
|
|
-
|
|
|
122,744
|
|
|
2,115,525
|
|
|
|
|
|
|
|
|
|
|
Six months ended September 30, 2013 - Restated (unaudited)
|
|
|
|
|
|
|
|
|
|
|
Africa
|
|
324,734
|
|
|
(2,354
|
)
|
|
96,092
|
|
|
386,092
|
|
|
Europe
|
|
68,777
|
|
|
(311
|
)
|
|
995
|
|
|
66,817
|
|
|
Americas
|
|
62,627
|
|
|
-
|
|
|
(2,120
|
)
|
|
57,498
|
|
|
Middle East and Australasia
|
|
154,693
|
|
|
(875
|
)
|
|
17,569
|
|
|
145,470
|
|
|
Brazil
|
|
3,926
|
|
|
-
|
|
|
(5,394
|
)
|
|
4,970
|
|
|
International Central Services Organization
|
|
173,088
|
|
|
(170,897
|
)
|
|
47,043
|
|
|
255,244
|
|
|
Total
|
|
787,845
|
|
|
(174,437
|
)
|
|
154,185
|
|
|
916,091
|
|
|
Corporate and consolidation entries
|
-
|
|
|
-
|
|
|
(22,075
|
)
|
|
1,093,321
|
|
|
Inter-segment elimination
|
|
(174,437
|
)
|
|
174,437
|
|
|
-
|
|
|
(151,141
|
)
|
|
Total
|
|
613,408
|
|
|
-
|
|
|
132,110
|
|
|
1,858,271
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONDENSED SEGMENTAL ANALYSIS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inter-
|
|
|
|
|
|
United States Dollar
|
Total
|
|
segment
|
|
Adjusted
|
|
|
|
Figures are in thousands unless otherwise stated
|
revenue
|
|
revenue
|
|
EBITDA
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended September 30, 2014 (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Africa
|
|
30,387
|
|
|
-
|
|
|
8,699
|
|
|
37,395
|
|
|
Europe
|
|
7,296
|
|
|
(27
|
)
|
|
238
|
|
|
7,738
|
|
|
Americas
|
|
7,440
|
|
|
-
|
|
|
(94
|
)
|
|
7,470
|
|
|
Middle East and Australasia
|
|
13,364
|
|
|
(1
|
)
|
|
(71
|
)
|
|
14,490
|
|
|
Brazil
|
|
1,081
|
|
|
-
|
|
|
(614
|
)
|
|
1,077
|
|
|
International Central Services Organization
|
|
17,025
|
|
|
(16,946
|
)
|
|
4,964
|
|
|
27,283
|
|
|
Total
|
|
76,593
|
|
|
(16,974
|
)
|
|
13,122
|
|
|
95,453
|
|
|
Corporate and consolidation entries
|
-
|
|
|
-
|
|
|
(2,203
|
)
|
|
112,574
|
|
|
Inter-segment elimination
|
(16,974
|
)
|
|
16,974
|
|
|
-
|
|
|
(19,840
|
)
|
|
Total
|
|
59,619
|
|
|
-
|
|
|
10,919
|
|
|
188,187
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended September 30, 2013 - Restated (unaudited)
|
|
|
|
|
|
|
|
|
|
|
Africa
|
|
28,887
|
|
|
(209
|
)
|
|
8,548
|
|
|
34,345
|
|
|
Europe
|
|
6,118
|
|
|
(28
|
)
|
|
89
|
|
|
5,944
|
|
|
Americas
|
|
5,571
|
|
|
-
|
|
|
(189
|
)
|
|
5,115
|
|
|
Middle East and Australasia
|
|
13,761
|
|
|
(78
|
)
|
|
1,563
|
|
|
12,940
|
|
|
Brazil
|
|
349
|
|
|
-
|
|
|
(480
|
)
|
|
442
|
|
|
International Central Services Organization
|
|
15,397
|
|
|
(15,202
|
)
|
|
4,185
|
|
|
22,705
|
|
|
Total
|
|
70,083
|
|
|
(15,517
|
)
|
|
13,716
|
|
|
81,491
|
|
|
Corporate and consolidation entries
|
-
|
|
|
-
|
|
|
(1,964
|
)
|
|
97,257
|
|
|
Inter-segment elimination
|
|
(15,517
|
)
|
|
15,517
|
|
|
-
|
|
|
(13,445
|
)
|
|
Total
|
|
54,566
|
|
|
-
|
|
|
11,752
|
|
|
165,303
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The prior year segment information has been amended to conform to the
current year presentation as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
South African Rand
|
|
Total
revenue
|
|
Inter-
segment
revenue
|
|
Adjusted
EBITDA
|
|
Assets
|
|
Figures are in thousands unless otherwise stated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended September 30, 2013 (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Africa (As previously reported)
|
|
Consumer solutions
|
|
173,173
|
|
|
(7,298
|
)
|
|
49,134
|
|
|
272,233
|
|
|
|
|
Fleet solutions
|
|
159,580
|
|
|
(3,075
|
)
|
|
47,776
|
|
|
120,059
|
|
|
|
|
|
|
332,753
|
|
|
(10,373
|
)
|
|
96,910
|
|
|
392,292
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inter-segment revenue eliminations
|
|
(8,019
|
)
|
|
8,019
|
|
|
-
|
|
|
-
|
|
|
Inter-segment unrealized profit eliminations
|
|
-
|
|
|
-
|
|
|
(818
|
)
|
|
(537
|
)
|
|
Inter-segment investments and intercompany receivable eliminations
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(5,663
|
)
|
|
Africa (Restated)
|
|
|
|
324,734
|
|
|
(2,354
|
)
|
|
96,092
|
|
|
386,092
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate and consolidation entries (As previously reported)
|
|
-
|
|
|
-
|
|
|
(22,893
|
)
|
|
1,092,784
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inter-segment unrealized profit eliminations
|
|
-
|
|
|
-
|
|
|
818
|
|
|
537
|
|
|
Corporate and consolidation entries (Restated)
|
|
-
|
|
|
-
|
|
|
(22,075
|
)
|
|
1,093,321
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inter-segment elimination (As previously reported)
|
|
(182,456
|
)
|
|
182,456
|
|
|
-
|
|
|
(156,804
|
)
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inter-segment revenue eliminations
|
|
8,019
|
|
|
(8,019
|
)
|
|
-
|
|
|
-
|
|
|
Inter-segment investments and intercompany receivable eliminations
|
|
-
|
|
|
-
|
|
|
-
|
|
|
5,663
|
|
|
Inter-segment elimination (Restated)
|
|
(174,437
|
)
|
|
174,437
|
|
|
-
|
|
|
(151,141
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United States Dollar
|
|
Total
revenue
|
|
Inter-
segment
revenue
|
|
Adjusted
EBITDA
|
|
Assets
|
|
Figures are in thousands unless otherwise stated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As previously reported:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Africa (As previously reported)
|
|
Consumer solutions
|
|
15,405
|
|
|
(648
|
)
|
|
4,371
|
|
|
24,217
|
|
|
|
|
Fleet solutions
|
|
14,195
|
|
|
(274
|
)
|
|
4,250
|
|
|
10,680
|
|
|
|
|
|
|
29,600
|
|
|
(922
|
)
|
|
8,621
|
|
|
34,897
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inter-segment revenue eliminations
|
|
(713
|
)
|
|
713
|
|
|
-
|
|
|
-
|
|
|
Inter-segment unrealized profit eliminations
|
|
-
|
|
|
-
|
|
|
(73
|
)
|
|
(48
|
)
|
|
Inter-segment investments and intercompany receivable eliminations
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(504
|
)
|
|
Africa (Restated)
|
|
|
|
28,887
|
|
|
(209
|
)
|
|
8,548
|
|
|
34,345
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate and consolidation entries (As previously reported)
|
|
-
|
|
|
-
|
|
|
(2,037
|
)
|
|
97,209
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inter-segment unrealized profit eliminations
|
|
-
|
|
|
-
|
|
|
73
|
|
|
48
|
|
|
Corporate and consolidation entries (Restated)
|
|
-
|
|
|
-
|
|
|
(1,964
|
)
|
|
97,257
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inter-segment elimination (As previously reported)
|
|
(16,230
|
)
|
|
16,230
|
|
|
-
|
|
|
(13,949
|
)
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inter-segment revenue eliminations
|
|
713
|
|
|
(713
|
)
|
|
-
|
|
|
-
|
|
|
Inter-segment investments and intercompany receivable eliminations
|
|
-
|
|
|
-
|
|
|
-
|
|
|
504
|
|
|
Inter-segment elimination (Restated)
|
|
(15,517
|
)
|
|
15,517
|
|
|
-
|
|
|
(13,445
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5. Reconciliation of Adjusted EBITDA to Profit for the Period
|
|
|
|
Six months
|
|
Six months
|
|
Three months
|
|
Three months
|
|
South African Rand
|
|
ended
|
|
ended
|
|
ended
|
|
ended
|
|
Figures are in thousands unless otherwise stated
|
|
September 30,
|
|
September 30,
|
|
September 30,
|
|
September 30,
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
|
|
122,744
|
|
|
132,110
|
|
|
70,739
|
|
|
66,876
|
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net realized foreign exchange losses
|
|
1,366
|
|
|
-
|
|
|
671
|
|
|
-
|
|
|
Decrease in provision for restructuring costs
|
|
-
|
|
|
-
|
|
|
-
|
|
|
109
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation (1)
|
|
(28,409
|
)
|
|
(21,671
|
)
|
|
(14,753
|
)
|
|
(11,438
|
)
|
|
Amortization (2)
|
|
(21,880
|
)
|
|
(24,458
|
)
|
|
(10,611
|
)
|
|
(9,868
|
)
|
|
Impairment of property, plant and equipment (3)
|
|
(649
|
)
|
|
-
|
|
|
(649
|
)
|
|
-
|
|
|
Impairment of product development costs capitalized
|
|
(456
|
)
|
|
-
|
|
|
(456
|
)
|
|
-
|
|
|
Share-based compensation costs
|
|
(4,284
|
)
|
|
(2,577
|
)
|
|
(1,264
|
)
|
|
(1,269
|
)
|
|
Net loss on sale of property, plant and equipment and intangible
assets
|
|
(126
|
)
|
|
(54
|
)
|
|
(8
|
)
|
|
(63
|
)
|
|
Restructuring costs
|
|
-
|
|
|
(2,762
|
)
|
|
-
|
|
|
-
|
|
|
Non-recurring initial public offering costs
|
|
-
|
|
|
(8,500
|
)
|
|
-
|
|
|
(8,500
|
)
|
|
Net realized foreign exchange gains
|
|
-
|
|
|
(105
|
)
|
|
-
|
|
|
(1,185
|
)
|
|
Net litigation costs (4)
|
|
(8,638
|
)
|
|
-
|
|
|
(6,529
|
)
|
|
-
|
|
|
Operating profit
|
|
59,668
|
|
|
71,983
|
|
|
37,140
|
|
|
34,662
|
|
|
Add: Finance income/(costs) - net
|
|
37,213
|
|
|
9,124
|
|
|
35,897
|
|
|
9,772
|
|
|
Less: Taxation
|
|
(31,874
|
)
|
|
(24,519
|
)
|
|
(24,089
|
)
|
|
(14,181
|
)
|
|
Profit for the period
|
|
65,007
|
|
|
56,588
|
|
|
48,948
|
|
|
30,253
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes depreciation of property, plant and equipment
(including in-vehicle devices).
(2) Includes
amortization of intangible assets (including product development costs).
(3)
Includes R0.6 million ($0.1 million) impairment of the helicopter asset.
(4)
Net costs relating to litigation and the related settlement described in note
14: Subsequent events - Litigation settlement.
|
|
|
5. Reconciliation of Adjusted EBITDA to Profit for the Period
(continued)
|
|
|
|
Six months
|
|
Six months
|
|
Three months
|
|
Three months
|
|
United States Dollar
|
|
ended
|
|
ended
|
|
ended
|
|
ended
|
|
Figures are in thousands unless otherwise stated
|
|
September 30,
|
|
September 30,
|
|
September 30,
|
|
September 30,
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
|
|
10,919
|
|
|
11,752
|
|
|
6,293
|
|
|
5,949
|
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net realized foreign exchange losses
|
|
122
|
|
|
-
|
|
|
60
|
|
|
-
|
|
|
Decrease in provision for restructuring costs
|
|
-
|
|
|
-
|
|
|
-
|
|
|
10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation (1)
|
|
(2,527
|
)
|
|
(1,928
|
)
|
|
(1,312
|
)
|
|
(1,017
|
)
|
|
Amortization (2)
|
|
(1,946
|
)
|
|
(2,176
|
)
|
|
(944
|
)
|
|
(878
|
)
|
|
Impairment of property, plant and equipment (3)
|
|
(58
|
)
|
|
-
|
|
|
(58
|
)
|
|
-
|
|
|
Impairment of product development costs capitalized
|
|
(41
|
)
|
|
-
|
|
|
(41
|
)
|
|
-
|
|
|
Share-based compensation costs
|
|
(381
|
)
|
|
(229
|
)
|
|
(112
|
)
|
|
(113
|
)
|
|
Net loss on sale of property, plant and equipment and intangible
assets
|
|
(11
|
)
|
|
(5
|
)
|
|
(1
|
)
|
|
(6
|
)
|
|
Restructuring costs
|
|
-
|
|
|
(246
|
)
|
|
-
|
|
|
-
|
|
|
Non-recurring initial public offering costs
|
|
-
|
|
|
(756
|
)
|
|
-
|
|
|
(757
|
)
|
|
Net realized foreign exchange gains
|
|
-
|
|
|
(9
|
)
|
|
-
|
|
|
(105
|
)
|
|
Net litigation costs (4)
|
|
(769
|
)
|
|
-
|
|
|
(581
|
)
|
|
-
|
|
|
Operating profit
|
|
5,308
|
|
|
6,403
|
|
|
3,304
|
|
|
3,083
|
|
|
Add: Finance income/(costs) - net
|
|
3,310
|
|
|
811
|
|
|
3,194
|
|
|
869
|
|
|
Less: Taxation
|
|
(2,835
|
)
|
|
(2,181
|
)
|
|
(2,143
|
)
|
|
(1,261
|
)
|
|
Profit for the period
|
|
5,783
|
|
|
5,033
|
|
|
4,355
|
|
|
2,691
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes depreciation of property, plant and equipment
(including in-vehicle devices).
(2) Includes
amortization of intangible assets (including product development costs).
(3)
Includes R0.6 million ($0.1 million) impairment of the helicopter asset.
(4)
Net costs relating to litigation and the related settlement described in note
14: Subsequent events - Litigation settlement.
|
|
|
6. 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,
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA margin
|
|
18.3
|
%
|
|
21.5
|
%
|
|
20.2
|
%
|
|
21.2
|
%
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net realized foreign exchange losses
|
|
0.2
|
%
|
|
-
|
|
|
0.2
|
%
|
|
-
|
|
|
Decrease in provision for restructuring costs
|
|
-
|
|
|
-
|
|
|
-
|
|
|
0.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
(4.2
|
%)
|
|
(3.5
|
%)
|
|
(4.2
|
%)
|
|
(3.6
|
%)
|
|
Amortization
|
|
(3.3
|
%)
|
|
(4.0
|
%)
|
|
(3.0
|
%)
|
|
(3.1
|
%)
|
|
Impairment of property, plant and equipment
|
|
(0.1
|
%)
|
|
-
|
|
|
(0.2
|
%)
|
|
-
|
|
|
Impairment of product development costs capitalized
|
|
(0.1
|
%)
|
|
-
|
|
|
(0.1
|
%)
|
|
-
|
|
|
Share-based compensation costs
|
|
(0.6
|
%)
|
|
(0.4
|
%)
|
|
(0.4
|
%)
|
|
(0.4
|
%)
|
|
Net loss on sale of property, plant and equipment and intangible
assets
|
|
(0.0
|
%)
|
|
(0.0
|
%)
|
|
(0.0
|
%)
|
|
(0.0
|
%)
|
|
Restructuring costs
|
|
-
|
|
|
(0.4
|
%)
|
|
-
|
|
|
-
|
|
|
Non-recurring initial public offering costs
|
|
-
|
|
|
(1.4
|
%)
|
|
-
|
|
|
(2.7
|
%)
|
|
Net realized foreign exchange gains
|
|
-
|
|
|
(0.1
|
%)
|
|
-
|
|
|
(0.4
|
%)
|
|
Net litigation costs
|
|
(1.3
|
%)
|
|
-
|
|
|
(1.9
|
%)
|
|
-
|
|
|
Operating profit margin
|
|
8.9
|
%
|
|
11.7
|
%
|
|
10.6
|
%
|
|
11.0
|
%
|
|
Add: Finance income/(costs) - net
|
|
5.6
|
%
|
|
1.5
|
%
|
|
10.2
|
%
|
|
3.1
|
%
|
|
Less: Taxation
|
|
(4.8
|
%)
|
|
(4.0
|
%)
|
|
(6.9
|
%)
|
|
(4.5
|
%)
|
|
Profit for the period margin
|
|
9.7
|
%
|
|
9.2
|
%
|
|
13.9
|
%
|
|
9.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7. Net Cash
Net cash is calculated as being net cash and
cash equivalents, excluding restricted cash less interest bearing
borrowings.
8. Dividends
No dividend was declared during the period. A
final dividend of R39.6 million or $3.5 million was declared during the
first half of fiscal 2014 and paid on July 8, 2013. Using shares in
issue of 660.2 million this equated to a dividend of 6.0 or $0.5 cents
per share.
Following the completion of its initial public offering of ADSs, the
Company discontinued its policy of declaring regular dividends in order
to increase the funds available to pursue opportunities for more rapid
growth.
9. Finance income/(costs) - net
As detailed in note 3 above,
the Group changed its classification of foreign exchange gains and
losses in the income statement. Finance income/(costs) - net includes
the following net foreign exchange gains:
|
|
|
Six months
|
|
Six months
|
|
Three months
|
|
Three months
|
|
South African Rand
|
|
ended
|
|
ended
|
|
ended
|
|
ended
|
|
Figures are in thousands unless otherwise stated
|
|
September 30,
|
|
September 30,
|
|
September 30,
|
|
September 30,
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net foreign exchange gains
|
|
33,980
|
|
|
8,290
|
|
|
34,164
|
|
|
9,501
|
|
|
|
Six months
|
|
Six months
|
|
Three months
|
|
Three months
|
|
United States Dollar
|
|
ended
|
|
ended
|
|
ended
|
|
ended
|
|
Figures are in thousands unless otherwise stated
|
|
September 30,
|
|
September 30,
|
|
September 30,
|
|
September 30,
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net foreign exchange gains
|
|
3,023
|
|
|
737
|
|
|
3,039
|
|
|
845
|
10. Contingent Liabilities
Service agreement
In
terms of an amended 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. No connection
incentives will be received in terms of the amended network services
agreement. The maximum potential liability under the arrangement is
R54.6 million ($4.9 million). No loss is considered probable under this
arrangement.
Taxation
MiX Telematics International Proprietary Limited
("MiX International"), a subsidiary of the Group, claims a 150%
allowance for research and development spend in terms of section 11D
("S11D") of the South African Income Tax Act of 1962 ("the Act"). As of
October 1, 2012, the legislation relating to the allowance was amended.
The amendment requires pre-approval of development project expenditure
on a project specific basis by the South African Department of Science
and Technology ("DST") in order to claim a deduction of the additional
50% over and above the expenditure incurred (150% allowance). Since the
amendments to S11D of the Act, MiX International had been claiming the
150% deduction resulting in a recognized tax benefit of R8.5 million
($0.8 million). MiX International has complied with the amended
legislation by submitting all required documentation to the DST in a
timely manner, commencing in October 2012.
In June 2014, correspondence was received from the DST indicating that
the research and development expenditure on certain projects for which
the 150% allowance was claimed did not constitute qualifying expenditure
in terms of the Act. MiX International is currently in the process of
formally objecting to the DST’s decision to disallow the expenditure
(for which a tax asset benefit of R2.7 million ($0.2 million) has been
recognized). If the Group is unsuccessful in defending this specific
matter, and if the same principles are applied to other projects, the
Group may incur an additional taxation expense of up to R8.5 million
($0.8 million) relating to the additional 50% claimed, with a
corresponding increase in current taxation payable.
11. Share-based payment transaction
In June 2014, the Group
entered into an agreement with Edge Gestao Empresarial Ltda. (“Edge”),
whereby Edge has been granted a 5% holding in the equity interests of
MiX Telematics Serviços De Telemetria E Rastreamento De Veículos Do
Brazil Limitada (“MiX Brazil”). At March 31, 2014 Edge held a
non-controlling interest in MiX Brazil of 0.0025%. Edge is a Brazilian
based investment company controlled by Luiz Munhoz, the Managing
Director of MiX Brazil. The increase in the equity interests granted to
Edge is in respect of services provided by Luiz Munhoz to MiX Brazil, in
his role as Managing Director of MiX Brazil.
The above transaction falls into the ambit of IFRS 2: Share-based
payments, and qualifies for recognition as a cash-settled share-based
payment. The cost of this share-based payment award recorded during the
period amounted to R2.0 million ($0.2 million).
|
|
|
12. Other operating and financial data
|
|
|
Six months
|
|
Six months
|
|
Three months
|
|
Three months
|
|
South African Rand
|
ended
|
|
ended
|
|
ended
|
|
ended
|
|
Figures are in thousands except for subscribers
|
September 30,
|
|
September 30,
|
|
September 30,
|
|
September 30,
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subscription revenue
|
478,382
|
|
|
401,272
|
|
|
241,769
|
|
|
207,064
|
|
Adjusted EBITDA
|
122,744
|
|
|
132,110
|
|
|
70,739
|
|
|
66,876
|
|
Cash and cash equivalents
|
904,620
|
|
|
767,770
|
|
|
904,620
|
|
|
767,770
|
|
Net cash
|
844,500
|
|
|
703,286
|
|
|
844,500
|
|
|
703,286
|
|
Capital expenditure
|
63,544
|
|
|
63,855
|
|
|
35,347
|
|
|
32,793
|
|
Subscribers
|
479,318
|
|
|
404,034
|
|
|
479,318
|
|
|
404,034
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exchange Rates
|
|
|
|
|
|
|
|
|
|
|
|
The following major rates of exchange were used:
|
|
|
|
|
|
|
|
|
|
|
|
South African Rand: United States Dollar
|
|
|
|
|
|
|
|
|
|
|
|
-closing
|
11.24
|
|
|
10.10
|
|
|
11.24
|
|
|
10.10
|
|
-average
|
10.65
|
|
|
9.73
|
|
|
10.76
|
|
|
9.99
|
|
South African Rand: British Pound
|
|
|
|
|
|
|
|
|
|
|
|
-closing
|
18.29
|
|
|
16.28
|
|
|
18.29
|
|
|
16.28
|
|
-average
|
17.85
|
|
|
15.02
|
|
|
17.97
|
|
|
15.49
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months
|
|
Six months
|
|
Three months
|
|
Three months
|
|
United States Dollar
|
ended
|
|
ended
|
|
ended
|
|
ended
|
|
Figures are in thousands except for subscribers
|
September 30,
|
|
September 30,
|
|
September 30,
|
|
September 30,
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Subscription revenue
|
42,555
|
|
|
35,695
|
|
|
21,506
|
|
|
18,419
|
|
Adjusted EBITDA
|
10,919
|
|
|
11,752
|
|
|
6,293
|
|
|
5,949
|
|
Cash and cash equivalents
|
80,471
|
|
|
68,297
|
|
|
80,471
|
|
|
68,297
|
|
Net cash
|
75,123
|
|
|
62,561
|
|
|
75,123
|
|
|
62,561
|
|
Capital expenditure
|
5,653
|
|
|
5,680
|
|
|
3,144
|
|
|
2,917
|
|
Subscribers
|
479,318
|
|
|
404,034
|
|
|
479,318
|
|
|
404,034
|
|
|
|
|
|
|
|
|
|
|
|
|
13. Fair value of financial assets and liabilities measured at
amortized cost
The fair values of trade and other receivables,
trade payables, accruals and other payables approximate their book
values as the impact of discounting is not considered material due to
the short-term nature of both the receivables and payables.
14. Subsequent events
Other than the litigation settlement,
business combination and changes to the board discussed below, the
directors are not aware of any matter material or otherwise arising
since September 30, 2014 and up to the date of this report, not
otherwise dealt with herein.
Litigation settlement
On June 6, 2014, Inthinc Technology
Solutions, Inc. (“Inthinc”) commenced a lawsuit in the U.S. District
Court, District of Utah, Central Division, against our wholly-owned
subsidiary, MiX Telematics North America, Inc. (“MiX North America”) and
Charles “Skip” Kinford, whom we hired in May 2014 as President and CEO
of MiX North America. Inthinc is Mr. Kinford’s previous employer. The
claims against MiX North America included misappropriation of trade
secrets under Utah state law and tortious interference with a contract.
The claims against Mr. Kinford included breach of a non-competition,
non-solicitation and confidentiality provisions in his employment
agreement with Inthinc, misappropriation of trade secrets under Utah
state law and breach of contract. Inthinc voluntarily dismissed MiX
North America without prejudice on June 12, 2014, due to its decision to
file the lawsuit in Texas discussed below.
On June 12, 2014, Inthinc commenced a lawsuit in the 48th Judicial
District of Tarrant County, Texas against MiX North America ("Texas
Lawsuit"). Inthinc alleged that MiX North America tortuously interfered
with Mr. Kinford’s employment agreement and post-employment restrictive
covenants and misappropriated unidentified trade secrets when MiX North
America hired Mr. Kinford.
On August 21, 2014, the parties agreed to consolidate the related
lawsuits into the Texas Lawsuit. In both of the lawsuits discussed
above, Inthinc sought injunctive relief and unspecified money damages.
On or about October 17, 2014, the parties entered into a confidential
settlement and release agreement. Pursuant to the terms of the
agreement, the parties have filed an Agreed Motion to Dismiss to
effectuate the dismissal of all claims, with prejudice, in the Texas
Lawsuit as well as the dissolution of any injunctions as issued to Mr.
Kinford and MiX North America. The settlement costs, net of insurance
proceeds, have been fully provided for at September 30, 2014.
Business combination
Subsequent to the period end, the Group
acquired the operating business of Compass Fleet Management Proprietary
Limited,(“Compass”), a provider of specialized fleet management
solutions delivered off the Group’s hardware and software platform. The
purchase consideration is a cash consideration of R58.0 million ($5.2
million) of which, R18.0 million ($1.6 million), will be held in trust
and is contingent on the achievement of agreed revenue and profit
targets for the period November 1, 2014 to March 31, 2015.
Due to the transaction only becoming effective shortly prior to the
release of the interim results the identification and allocation of fair
values to the assets and liabilities acquired have not yet been
finalized. This process will be completed within 12 months after
transaction date, as allowed in accordance with IFRS.
Changes to the board
The following changes to the board of
directors were effective from November 5, 2014:
-
Hubert Brody (non-independent non-executive director) who has served
on the board since August 2010 is relocating to Cape Town and will be
retiring from the board of directors of MiX Telematics due to other
commitments; and
-
Fundiswa Roji who has been a member of the board since August 2007 and
who has more recently served as Hubert Brody's alternate on behalf of
Imperial Holdings Limited (“Imperial”), has resigned from Imperial and
therefore from the board of MiX Telematics as well.
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For and on behalf of the board:
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SR Bruyns
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SB Joselowitz
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Midrand
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November 4, 2014
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For more information please visit our website at: www.mixtelematics.com
Mix Telematics Limited
(Incorporated in the Republic of
South Africa)
(Registration number 1995/013858/06)
JSE share
code: MIX NYSE code: MIXT ISIN: ZAE000125316
(“MiX Telematics” or
“the Company” or “the Group”)
Registered office
Matrix Corner, Howick Close, Waterfall
Park, Midrand
Directors
SR Bruyns* (Chairman), SB Joselowitz (CEO), EN
Banda*, CH Ewing*, RA Frew*, ML Pydigadu, CWR Tasker, AR Welton*
*
Non-executive
Company secretary
Java Capital Trustees and Sponsors
Proprietary Limited
Auditors
PricewaterhouseCoopers Inc.
Sponsor
Java Capital
November 6, 2014
Contact: