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.
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 R14.1437 per $1.00, which was the R/$ exchange rate reported by Oanda.com as at September 30, 2018.
Highlights:
Second quarter fiscal 2019:
- Subscription revenue of R420 million ($29.7 million), an increase of 18.5% year over year, on a constant currency basis
- Net subscriber additions of over 22,000, bringing the total base to over 714,000 subscribers, up 12% year over year
- Operating profit of R87 million ($6.1 million), up 92% year over year
- Adjusted EBITDA of R153 million ($10.8 million), up 48% year over year
- Adjusted EBITDA margin of 30.8%, up 570 basis points year over year
- Net cash generated from operating activities of R179 million ($12.6 million)
- Free cash flow of R93 million ($6.6 million), up from R4 million ($0.3 million) compared to the second quarter of fiscal 2018
First half fiscal 2019:
- Subscription revenue of R811 million ($57.3 million), an increase of 18.4% year over year, on a constant currency basis
- Net subscriber additions of 37,100, compared to 18,100 additions in the first half of fiscal 2018
- Operating profit of R154 million ($10.9 million), up 75% year over year
- Adjusted EBITDA of R279 million ($19.8 million), up 42% year over year
- Adjusted EBITDA margin of 29.3%, up 520 basis points year over year
Company raises full year guidance:
- Subscription revenue - R1,683 million to R1,695 million ($115.4 million to $116.2 million)
- Total revenue - R1,930 million to R1,963 million ($132.3 million to $134.6 million)
- Adjusted EBITDA - R550 million to R570 million ($37.7 million to $39.1 million)
- Adjusted earnings per diluted ordinary share of 35.1 to 37.9 South African cents. At a ratio of 25 ordinary shares to one ADS, this equates to adjusted earnings per diluted ADS of 60.2 to 65.0 U.S. cents. Refer to the Business Outlook section below.
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 2019, which ended on
September 30, 2018.
“MiX reported a very strong second quarter, highlighted by our ability
to exceed expectations across all key operating metrics,” said Stefan
Joselowitz, Chief Executive Officer of MiX Telematics. “Our over 18%
year over year subscription revenue growth was broad-based, driven by
uptake from our premium fleet customers globally. Additionally, this is
the ninth consecutive quarter of year over year adjusted EBITDA margin
improvement, reaching over 30%. MiX remains well positioned to maintain
the momentum for the second half of fiscal 2019 and beyond given the
strong and growing pipeline of opportunities worldwide.”
Financial performance for the three months ended September 30, 2018
Subscription revenue: Subscription revenue was R420.2 million
($29.7 million), an increase of 20.3% compared to R349.3 million ($24.7
million) for the second quarter of fiscal 2018. Subscription revenue
increased by 18.5% on a constant currency basis. Subscription revenue
benefited from a net increase of over 73,800 subscribers from October
2017 to September 2018, representing an increase in the subscriber base
of 11.5% during that period. Subscription revenue has also benefited
from an expansion in the average revenue per user.
Total revenue: Total revenue was R496.7 million ($35.1 million),
an increase of 20.8% compared to R411.2 million ($29.1 million) for the
second quarter of fiscal 2018. Hardware and other revenue was R76.6
million ($5.4 million), an increase of 23.7% compared to R61.9 million
($4.4 million) for the second quarter of fiscal 2018.
Gross Margin: Gross profit was R336.6 million ($23.8 million),
compared to R269.4 million ($19.1 million) for the second quarter of
fiscal 2018. Gross profit margin was 67.8%, compared to 65.5% for the
second quarter of fiscal 2018.
Operating Margin: Operating profit was R86.7 million ($6.1
million), compared to R45.3 million ($3.2 million) for the second
quarter of fiscal 2018. Operating margin was 17.5%, compared to 11.0%
for the second quarter of fiscal 2018. The margin expansion was
attributable primarily to improved economies of scale and ongoing cost
management initiatives. Operating expenses of R250.4 million ($17.7
million) increased by R26.2 million ($1.9 million), or 11.7%, compared
to the second quarter of fiscal 2018. Operating expenses represented
50.4% of revenue compared to 54.5% of revenue in the second quarter of
fiscal 2018.
Adjusted EBITDA: Adjusted EBITDA, a non-IFRS measure, was R152.9
million ($10.8 million), compared to R103.3 million ($7.3 million) for
the second quarter of fiscal 2018. Adjusted EBITDA margin, a non-IFRS
measure, for the second quarter of fiscal 2019 was 30.8%, compared to
25.1% for the second quarter of fiscal 2018.
Profit for the period and earnings per share: Profit for the
period was R54.4 million ($3.8 million), compared to R24.2 million ($1.7
million) in the second quarter of fiscal 2018. Profit for the period
included a net foreign exchange gain of R0.5 million ($0.04 million)
before tax. During the second quarter of fiscal 2018, profit for the
period included a net foreign exchange gain of R3.2 million
($0.2 million).
Diluted earnings per ordinary share were 9 South African cents, compared
to 4 South African cents in the second quarter of fiscal 2018. For the
second quarter of fiscal 2019, the calculation was based on diluted
weighted average ordinary shares in issue of 587.6 million, compared to
566.0 million diluted weighted average ordinary shares in issue during
the second quarter of fiscal 2018.
The Company’s effective tax rate was 37.7%, compared to 50.2% for the
second quarter of fiscal year 2018. Ignoring the impact of net foreign
exchange gains and losses, and related tax consequences, the tax rate
which is used in determining adjusted earnings below, was 29.4% compared
to 32.0% in the second quarter of fiscal 2018.
On a U.S. Dollar basis, using the September 30, 2018 exchange rate of
R14.1437 per U.S. Dollar, and a ratio of 25 ordinary shares to one
American Depositary Share (“ADS”), profit for the period was $3.8
million, or 16 U.S. cents per diluted ADS compared to $1.7 million, or 8
U.S. cents per diluted ADS in the second quarter of fiscal 2018.
Adjusted earnings for the period and adjusted earnings per share:
Adjusted earnings for the period, a non-IFRS measure, were R61.2 million
($4.3 million) compared to R30.9 million ($2.2 million) for the second
quarter of fiscal 2018. Adjusted earnings per diluted ordinary share,
also a non-IFRS measure, were 10 South African cents, compared to 5
South African cents in the second quarter of fiscal 2018.
On a U.S. Dollar basis, using the September 30, 2018 exchange rate of
R14.1437 per U.S. Dollar, and a ratio of 25 ordinary shares to one ADS,
adjusted earnings for the period were $4.3 million, or 18 U.S. cents per
diluted ADS, compared to 10 U.S. cents per diluted ADS in the second
quarter of fiscal 2018.
Statement of Financial Position and Cash Flow: At September 30,
2018, the Company had R312.3 million ($22.1 million) of net cash and
cash equivalents, compared to R290.5 million ($20.5 million) at March
31, 2018. The Company generated R178.7 million ($12.6 million) in net
cash from operating activities for the three months ended September 30,
2018 and invested R85.9 million ($6.1 million) in capital expenditures
during the quarter (including investments in in-vehicle devices of
R61.9 million ($4.4 million), leading to free cash flow, a non-IFRS
measure, of R92.8 million ($6.6 million) compared to free cash flow of
R3.8 million ($0.3 million) for the second quarter of fiscal 2018. The
Company utilized R10.6 million ($0.7 million) in financing activities,
compared to R12.6 million ($0.9 million) utilized during the second
quarter of fiscal 2018. The cash utilized in financing activities during
the second quarter of fiscal 2019 mainly consisted of dividends paid of
R16.9 million ($1.2 million) and the payment of lease liabilities of
R4.7 million ($0.3 million), offset by proceeds from the issuance of
shares in respect of employee share options of R11.1 million ($0.8
million). The cash utilized in financing activities during the second
quarter of fiscal 2018 mainly consisted of dividends paid.
Financial performance for the first half of fiscal 2019
Subscription revenue: Subscription revenue increased to R810.5
million ($57.3 million), an increase of 18.4% compared to R684.6 million
($48.4 million) for the first half of fiscal 2018. On a constant
currency basis, subscription revenue also increased by 18.4%.
Subscription revenue benefited from a net increase of over 73,800
subscribers from October 2017 to September 2018, representing an
increase in subscribers of 11.5% during that period. Subscription
revenue has also benefited from an expansion in the average revenue per
user.
Total revenue: Total revenue was R953.6 million ($67.4 million),
an increase of 16.7% compared to R816.8 million ($57.8 million) for the
first half of fiscal 2018. Hardware and other revenue was R143.0 million
($10.1 million), compared to R132.2 million ($9.3 million) for the first
half of fiscal 2018.
Gross margin: Gross profit was R642.4 million ($45.4 million), an
increase of 18.7% compared to R541.0 million ($38.2 million) for the
first half of fiscal 2018. Gross profit margin was 67.4%, compared to
66.2% for the first half of fiscal 2018.
Operating margin: Operating profit was R154.4 million ($10.9
million), compared to R88.2 million ($6.2 million) in the first half of
fiscal 2018. The operating margin was 16.2%, compared to 10.8% in the
first half of fiscal 2018. The margin expansion was attributable
primarily to the revenue growth leveraging the Company’s fixed
overheads, and ongoing cost management initiatives. Operating expenses
represented 51.2% of revenue compared to 55.8% in the first half of
fiscal 2018.
Adjusted EBITDA: Adjusted EBITDA was R279.4 million ($19.8
million) compared to R197.2 million ($13.9 million) for the first half
of fiscal 2018. Adjusted EBITDA margin was 29.3%, compared to 24.1% in
the first half of fiscal 2018.
Profit for the period and earnings per share: Profit for the
period was R68.8 million ($4.9 million), compared to R58.1 million ($4.1
million) in the first half of fiscal 2018. Profit for the period
included a net foreign exchange gain of R0.3 million ($0.02 million)
before tax. During the first half of fiscal 2018, a net foreign exchange
loss of R1.8 million ($0.1 million) was recorded.
Diluted earnings per ordinary share were 12 South African cents,
compared to 10 South African cents in the first half of fiscal 2018. For
the first half of fiscal 2019, the calculation was based on diluted
weighted average ordinary shares in issue of 587.2 million, compared to
566.7 million diluted weighted average ordinary shares in issue during
the first half of fiscal 2018.
The Company’s effective tax rate was 55.6%, compared to 34.0% for the
first half of fiscal 2018. Ignoring the impact of net foreign exchange
gains and losses, and related tax consequences, the effective tax rate,
which is used in calculating adjusted earnings, was 29.0% compared to
31.4% in the first half of fiscal 2018.
Adjusted earnings for the period and adjusted earnings per share: Adjusted
earnings for the period were R109.9 million ($7.8 million), compared to
R61.6 million ($4.4 million) in the first half of fiscal 2018. Adjusted
earnings per diluted ordinary share were 19 South African cents,
compared to 11 South African cents for the first half of fiscal 2018.
The impact of foreign exchange movements and the related tax effects on
the Group's effective tax rate is included in note 19 of the unaudited
Group interim financial results for the six months ended September 30,
2018.
On a U.S. Dollar basis, using the September 30, 2018 exchange rate of
R14.1437 per U.S. Dollar, and a ratio of 25 ordinary shares to one ADS,
adjusted earnings were $7.8 million, or 33 U.S. cents per diluted ADS,
compared to $4.4 million, or 19 U.S. cents per diluted ADS in the first
half of fiscal 2018.
Cash Flow: The Company generated R201.5 million ($14.2 million)
in net cash from operating activities for the first half of fiscal 2019
and invested R164.2 million ($11.6 million) in capital expenditures
during the period (including investments in in-vehicle devices of R119.2
million ($8.4 million), leading to free cash flow of R37.3 million ($2.6
million), compared to negative free cash flow of R60.2 million ($4.3
million) for the first half of fiscal 2018. Capital expenditures in the
first half of fiscal 2018 were R182.5 million ($12.9 million) and
included in-vehicle devices of R124.5 million ($8.8 million).
The Company utilized R29.7 million ($2.1 million) in financing
activities, compared to R42.5 million ($3.0 million) utilized during the
first half of fiscal 2018. The cash utilized in financing activities
during the first half of fiscal 2019 mainly consisted of dividends paid
of R33.8 million ($2.4 million) and the payment of lease liabilities of
R6.9 million ($0.5 million), offset by proceeds from the issuance of
shares in respect of employee share options of R11.1 million ($0.8
million). The cash utilized during the first half of fiscal 2018
consisted primarily of dividends paid of R25.2 million ($1.8 million)
and share repurchases of R18.7 million ($1.3 million).
Segment commentary for the first half of fiscal 2019
The segment results below are presented on an integral margin basis. In
respect of revenue, this method of measurement entails reviewing the
segment results based on external revenue only. In respect of Adjusted
EBITDA (the profit measure identified by the Company), the margin
generated by our Central Services Organization (“CSO”), net of any
unrealized intercompany profit, is allocated to the geographic region
where the external revenue is recorded by our Regional Sales Offices
(“RSOs”).
CSO is our central service organization that wholesales our products and
services to our RSOs who, in turn, interface with our end-customers and
distributors. CSO is also responsible for the development of our
hardware and software platforms and provides common marketing, product
management, technical and distribution support to each of our other
operating segments. CSO’s operating expenses are not allocated to each
RSO.
Each RSO’s results reflect the external revenue earned, as well as the
Adjusted EBITDA earned (or loss incurred) by each operating segment
before the CSO and corporate cost allocations.
For further information in this regard, please refer to note 3 of the
unaudited Group interim financial results for the six months ended
September 30, 2018.
Segment
|
|
Subscription
Revenue
Half-year
2019
R'000
|
|
Total Revenue
Half-year
2019
R'000
|
|
Adjusted EBITDA
Half-year
2019
R'000
|
|
Adjusted EBITDA
Half-year %
change on
prior
period
|
|
Adjusted EBITDA
Margin
Half-year
2019
|
Africa
|
|
470,565
|
|
507,596
|
|
230,200
|
|
9.9%
|
|
45.4%
|
|
Subscription revenue increased by 11.2% in the segment as a result
of a 10.4% increase in subscribers since October 1, 2017. Total
revenue increased by 8.1%. The region reported an Adjusted EBITDA
margin of 45.4% (up from the 44.6% Adjusted EBITDA margin reported
in the first half of fiscal 2018).
|
Americas
|
|
136,223
|
|
151,009
|
|
74,858
|
|
199.9%
|
|
49.6%
|
|
Subscription revenue growth on a constant currency basis was
62.1%. Subscribers increased by 31.4% since October 1, 2017.
Subscription revenue continued to receive assistance from the
market’s ongoing preference for bundled deals across new and
existing customers. Total revenue improved by 55.6% on a constant
currency basis as hardware and other revenues increased by 13.5%.
The region reported an Adjusted EBITDA margin of 49.6% (up from
the 26.0% Adjusted EBITDA margin reported in the first half of
fiscal 2018). Americas is currently the fastest growing
geographical region both at a subscription revenue and Adjusted
EBITDA level.
|
Middle East and Australasia
|
|
109,168
|
|
155,448
|
|
67,762
|
|
36.7%
|
|
43.6%
|
|
Subscription revenue increased by 10.6% on a constant currency
basis. Subscribers increased by 7.1% since October 1, 2017. Total
revenue in constant currency improved by 14.8% as hardware
revenues were higher than in the first half of fiscal 2018. The
region reported an Adjusted EBITDA margin of 43.6% (up from the
36.4% Adjusted EBITDA margin reported in the first half of fiscal
2018).
|
Europe
|
|
64,784
|
|
108,408
|
|
37,403
|
|
27.0%
|
|
34.5%
|
|
Subscription revenue growth on a constant currency basis was
10.9%. Subscribers increased by 8.3% since October 1, 2017. Total
revenue increased by 16.1% on a constant currency basis due to
higher hardware revenues compared to the first half of fiscal
2018. The region reported an Adjusted EBITDA margin of 34.5% (up
from the 32.9% Adjusted EBITDA margin reported in the first half
of fiscal 2018).
|
Brazil
|
|
29,417
|
|
30,707
|
|
11,292
|
|
29.0%
|
|
36.8%
|
|
Subscription revenue increased by 48.8% on a constant currency
basis. The increase was due to the market’s preference for bundled
deals and an increase in subscribers of 29.1% since October 1,
2017. On a constant currency basis, total revenue increased by
41.1%. The segment reported Adjusted EBITDA of R11.3 million ($0.8
million) in the first half of fiscal 2019, at an Adjusted EBITDA
margin of 36.8% (up from the 34.4% Adjusted EBITDA margin reported
in the first half of fiscal 2018).
|
Central Services Organization
|
|
385
|
|
391
|
|
(82,283)
|
|
(19.5%)
|
|
—
|
|
CSO is responsible for the development of our hardware and
software platforms and provides common marketing, product
management, technical and distribution support to each of our
other operating segments. The negative Adjusted EBITDA reported
arises as a result of operating expenses carried by the segment.
|
|
|
|
Business Outlook
MiX Telematics has translated U.S. Dollar amounts in this Business
Outlook paragraph from South African Rand at the exchange rate of
R14.5849 per $1.00, which was the R/$ exchange rate reported by
Oanda.com as at October 29, 2018.
Based on information as of today, November 1, 2018, the Company is
issuing the following financial guidance for the full 2019 fiscal year:
-
Subscription revenue - R1,683 million to R1,695 million ($115.4
million to $116.2 million), which would represent subscription revenue
growth of 17.3% to 18.2% compared to fiscal 2018. On a constant
currency basis, this would represent subscription revenue growth of
15.3% to 16.2%. Previous guidance was R1,624 million to R1,645 million.
-
Total revenue - R1,930 million to R1,963 million ($132.3 million to
$134.6 million), which would represent revenue growth of 12.7% to
14.6% compared to fiscal 2018. On a constant currency basis, this
would represent revenue growth of 10.9% to 12.8%. Previous guidance
was R1,864 million to R1,895 million.
-
Adjusted EBITDA - R550 million to R570 million ($37.7 million to $39.1
million), which would represent Adjusted EBITDA growth of 24.5% to
29.0% compared to fiscal 2018. Previous guidance was R526 million to
R545 million.
-
Adjusted earnings per diluted ordinary share of 35.1 to 37.9 South
African cents based on 583 million diluted ordinary shares in issue
(previous guidance was 31.2 to 33.2 South African cents based on 587
million diluted ordinary shares in issue), and based on an effective
tax rate of 28.0% to 31.0%. At a ratio of 25 ordinary shares to one
ADS, this equates to adjusted earnings per diluted ADS of 60.2 to 65.0
U.S. cents.
For the third quarter of fiscal 2019, the Company expects
subscription revenue to be in the range of R429 million to R434 million
($29.4 million to $29.8 million) which would represent subscription
revenue growth of 14.0% to 15.3% compared to the third quarter of fiscal
2018. On a constant currency basis, this would represent subscription
revenue growth of 13.3% to 14.6%.
The key assumptions used in deriving the forecast are as follows:
-
Growth in subscription revenue and vehicles under subscription is
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.
-
An average forecast exchange rate for the 2019 fiscal year of R13.8000
per $1.00.
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 it does not update guidance between quarters.
The Company provides earnings guidance only on a non-IFRS basis and does
not provide a reconciliation of forward-looking Adjusted EBITDA and
Adjusted Earnings per Diluted Ordinary Share guidance to the most
directly comparable IFRS financial measures because of the inherent
difficulty in forecasting and quantifying certain amounts that are
necessary for such reconciliations, including adjustments that could be
made for foreign exchange gains/(losses) and related tax consequences,
restructuring costs, share-based compensation costs, and other charges
reflected in the Company’s reconciliation of historic non-IFRS financial
measures, the amounts of which, based on past experience, could be
material.
The information disclosed in this “Business Outlook” section
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 Daylight Time) and 2:00 p.m. (South
African Time) on November 1, 2018 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 1-877-451-6152 (within the United States) or
0 800 983 831 (within South Africa) or 1-201-389-0879 (outside of the
United States). The conference ID is 13684158.
-
A replay of this conference call will be available for a limited time
at +1-844-512-2921 (within the United States) or 1-412-317-6671
(within South Africa or outside of the United States). The replay
conference ID is 13684158.
-
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 managing over
714,000 assets in approximately 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, Romania, Thailand 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 ADSs 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 2019, 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, 2018, 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 and Adjusted EBITDA
margin are non-IFRS financial measures, and they do not represent cash
flows from operations for the periods indicated, and should not be
considered an alternative to net income as an indicator of the Company’s
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 finance
income/(costs) including foreign exchange gains/(losses), depreciation
of property, plant and equipment including capitalized customer
in-vehicle devices and right-of-use assets, amortization of intangible
assets including capitalized in-house development costs and intangible
assets identified as part of a business combination, share-based
compensation costs, restructuring costs, profits/(losses) on the
disposal or impairments of assets or subsidiaries, insurance
reimbursements relating to impaired assets and certain litigation costs.
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 has limitations as an analytical
tool, and you should not consider this performance measure in isolation
from or as a substitute for analysis of our 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 or the payment of lease
liabilities that may represent a reduction in cash available to the
Company; 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
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
and is calculated in accordance with circular 4/2018 issued by the South
African Institute of Chartered Accountants. The profit measure is
determined by taking the profit for the period prior to certain
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.
Adjusted Earnings and Adjusted Earnings Per Share
Adjusted earnings per share is defined as profit attributable to owners
of the parent, MiX Telematics Limited, excluding net foreign exchange
gains/(losses) net of tax, divided by the weighted average number of
ordinary shares in issue during the period.
We have included Adjusted earnings per share in this press release
because it provides a useful measure for period-to-period comparisons of
the Company’s core business by excluding net foreign exchange
gains/(losses) from earnings. Accordingly, we believe that Adjusted
earnings per share provides useful information to investors and others
in understanding and evaluating the Company’s operating results.
Free cash flow
Free cash flow is determined as net cash generated from operating
activities less capital expenditure for investing activities. We believe
that free cash flow provides useful information to investors and others
in understanding and evaluating the Company’s cash flows as it provides
detail of the amount of cash the Company generates or utilizes after
accounting for all capital expenditures including investments in
in-vehicle devices and development expenditure.
Constant currency and U.S. Dollar financial information
Financial information presented in United States Dollars and constant
currency financial information presented as part of the segment
commentary constitute pro forma financial information under the JSE
Listings Requirements. Unless otherwise stated, MiX Telematics has
translated U.S. Dollar amounts from South African Rand at the exchange
rate of R14.1437 per $1.00, which was the R/$ exchange rate reported by
Oanda.com as at September 30, 2018.
Constant currency information has been presented to illustrate the
impact of changes in currency rates on the Group’s results. The constant
currency information has been determined by adjusting the current
financial reporting period results to the prior period average exchange
rates, determined as the average of the monthly exchange rates
applicable to the period. The measurement has been performed for each of
the Group’s currencies, including the U.S. Dollar and British Pound. The
constant currency growth percentage has been calculated by utilizing the
constant currency results compared to the prior period results.
This pro forma financial information is the responsibility of the
Group’s board of directors and is presented for illustrative purposes.
Because of its nature, the pro forma financial information may not
fairly present MiX Telematics’ financial position, changes in equity,
results of operations or cash flows. The pro forma financial information
does not constitute pro forma information in accordance with the
requirements of Regulation S-X of the SEC or generally accepted
accounting principles in the United States. In addition, the rules and
regulations related to the preparation of pro forma financial
information in other jurisdictions may also vary significantly from the
requirements applicable in South Africa. The information contained in
this report has not been reviewed or audited by the Group’s auditors.
|
|
|
|
|
CONDENSED CONSOLIDATED INCOME STATEMENT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
South African Rand
|
|
Six months
ended
|
|
|
Six months ended
|
|
|
Three months
ended
|
|
|
Three months ended
|
|
Figures are in thousands unless otherwise stated
|
|
September 30,
|
|
|
September 30,
|
|
|
September 30,
|
|
|
September 30,
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
|
|
Unaudited
|
|
|
Unaudited
|
|
|
Unaudited
|
|
|
Unaudited
|
|
Revenue
|
|
953,559
|
|
|
816,830
|
|
|
496,737
|
|
|
411,167
|
|
Cost of sales
|
|
(311,168
|
)
|
|
(275,864
|
)
|
|
(160,107
|
)
|
|
(141,732
|
)
|
Gross profit
|
|
642,391
|
|
|
540,966
|
|
|
336,630
|
|
|
269,435
|
|
Other income/(expenses) - net
|
|
423
|
|
|
2,879
|
|
|
435
|
|
|
(64
|
)
|
Operating expenses
|
|
(488,383
|
)
|
|
(455,676
|
)
|
|
(250,359
|
)
|
|
(224,116
|
)
|
-Sales and marketing
|
|
(98,811
|
)
|
|
(98,238
|
)
|
|
(51,955
|
)
|
|
(49,259
|
)
|
-Administration and other charges
|
|
(389,572
|
)
|
|
(357,438
|
)
|
|
(198,404
|
)
|
|
(174,857
|
)
|
Operating profit
|
|
154,431
|
|
|
88,169
|
|
|
86,706
|
|
|
45,255
|
|
Finance income/(costs) - net
|
|
628
|
|
|
(84
|
)
|
|
473
|
|
|
3,402
|
|
-Finance income
|
|
5,970
|
|
|
3,900
|
|
|
3,524
|
|
|
5,108
|
|
-Finance costs
|
|
(5,342
|
)
|
|
(3,984
|
)
|
|
(3,051
|
)
|
|
(1,706
|
)
|
Profit before taxation
|
|
155,059
|
|
|
88,085
|
|
|
87,179
|
|
|
48,657
|
|
Taxation
|
|
(86,274
|
)
|
|
(29,941
|
)
|
|
(32,829
|
)
|
|
(24,417
|
)
|
Profit for the period
|
|
68,785
|
|
|
58,144
|
|
|
54,350
|
|
|
24,240
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable to:
|
|
|
|
|
|
|
|
|
|
|
|
|
Owners of the parent
|
|
68,786
|
|
|
58,084
|
|
|
54,350
|
|
|
24,248
|
|
Non-controlling interest
|
|
(1
|
)
|
|
60
|
|
|
*
|
|
|
(8
|
)
|
|
|
68,785
|
|
|
58,144
|
|
|
54,350
|
|
|
24,240
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
|
|
|
|
|
|
|
|
|
|
|
|
|
-basic (R)
|
|
0.12
|
|
|
0.10
|
|
|
0.10
|
|
|
0.04
|
|
-diluted (R)
|
|
0.12
|
|
|
0.10
|
|
|
0.09
|
|
|
0.04
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per American Depositary Share
|
|
|
|
|
|
|
|
|
|
|
|
|
-basic (R)
|
|
3.04
|
|
|
2.59
|
|
|
2.40
|
|
|
1.08
|
|
-diluted (R)
|
|
2.93
|
|
|
2.56
|
|
|
2.31
|
|
|
1.07
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ordinary shares ('000)1
|
|
|
|
|
|
|
|
|
|
|
|
|
-in issue at September 30
|
|
569,756
|
|
|
559,381
|
|
|
569,756
|
|
|
559,381
|
|
-weighted average
|
|
565,249
|
|
|
560,677
|
|
|
566,025
|
|
|
558,824
|
|
-diluted weighted average
|
|
587,152
|
|
|
566,715
|
|
|
587,616
|
|
|
566,008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average American Depositary Shares ('000)1
|
|
|
|
|
|
|
|
|
|
|
|
|
-in issue at September 30
|
|
22,790
|
|
|
22,375
|
|
|
22,790
|
|
|
22,375
|
|
-weighted average
|
|
22,610
|
|
|
22,427
|
|
|
22,641
|
|
|
22,353
|
|
-diluted weighted average
|
|
23,486
|
|
|
22,669
|
|
|
23,505
|
|
|
22,640
|
|
* Amounts less than R1,000
|
1
September 30, 2018 figure excludes
40,000,000 (September 30, 2017: 40,000,000) treasury shares held
by MiX Telematics Investments Proprietary Limited (“MiX
Investments”), a wholly owned subsidiary of the Group.
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED INCOME STATEMENT
|
|
|
|
|
United States Dollar
|
|
Six months
ended
|
|
|
Six months ended
|
|
|
Three months
ended
|
|
|
Three months ended
|
|
Figures are in thousands unless otherwise stated
|
|
September 30,
|
|
|
September 30,
|
|
|
September 30,
|
|
|
September 30,
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
|
|
Unaudited
|
|
|
Unaudited
|
|
|
Unaudited
|
|
|
Unaudited
|
|
Revenue
|
|
67,419
|
|
|
57,752
|
|
|
35,121
|
|
|
29,071
|
|
Cost of sales
|
|
(22,000
|
)
|
|
(19,504
|
)
|
|
(11,320
|
)
|
|
(10,021
|
)
|
Gross profit
|
|
45,419
|
|
|
38,248
|
|
|
23,801
|
|
|
19,050
|
|
Other income/(expenses) - net
|
|
30
|
|
|
204
|
|
|
31
|
|
|
(5
|
)
|
Operating expenses
|
|
(34,530
|
)
|
|
(32,218
|
)
|
|
(17,701
|
)
|
|
(15,846
|
)
|
-Sales and marketing
|
|
(6,986
|
)
|
|
(6,946
|
)
|
|
(3,673
|
)
|
|
(3,483
|
)
|
-Administration and other charges
|
|
(27,544
|
)
|
|
(25,272
|
)
|
|
(14,028
|
)
|
|
(12,363
|
)
|
Operating profit
|
|
10,919
|
|
|
6,234
|
|
|
6,131
|
|
|
3,199
|
|
Finance income/(costs) - net
|
|
44
|
|
|
(6
|
)
|
|
33
|
|
|
240
|
|
-Finance income
|
|
422
|
|
|
276
|
|
|
249
|
|
|
361
|
|
-Finance costs
|
|
(378
|
)
|
|
(282
|
)
|
|
(216
|
)
|
|
(121
|
)
|
Profit before taxation
|
|
10,963
|
|
|
6,228
|
|
|
6,164
|
|
|
3,439
|
|
Taxation
|
|
(6,100
|
)
|
|
(2,117
|
)
|
|
(2,321
|
)
|
|
(1,726
|
)
|
Profit for the period
|
|
4,863
|
|
|
4,111
|
|
|
3,843
|
|
|
1,713
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable to:
|
|
|
|
|
|
|
|
|
|
|
|
|
Owners of the parent
|
|
4,863
|
|
|
4,107
|
|
|
3,843
|
|
|
1,713
|
|
Non-controlling interest
|
|
*
|
|
|
4
|
|
|
*
|
|
|
*
|
|
|
|
4,863
|
|
|
4,111
|
|
|
3,843
|
|
|
1,713
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
|
|
|
|
|
|
|
|
|
|
|
|
|
-basic ($)
|
|
0.01
|
|
|
0.01
|
|
|
0.01
|
|
|
#
|
|
-diluted ($)
|
|
0.01
|
|
|
0.01
|
|
|
0.01
|
|
|
#
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per American Depositary Share
|
|
|
|
|
|
|
|
|
|
|
|
|
-basic ($)
|
|
0.22
|
|
|
0.18
|
|
|
0.17
|
|
|
0.08
|
|
-diluted ($)
|
|
0.21
|
|
|
0.18
|
|
|
0.16
|
|
|
0.08
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ordinary shares ('000)1
|
|
|
|
|
|
|
|
|
|
|
|
|
-in issue at September 30
|
|
569,756
|
|
|
559,381
|
|
|
569,756
|
|
|
559,381
|
|
-weighted average
|
|
565,249
|
|
|
560,677
|
|
|
566,025
|
|
|
558,824
|
|
-diluted weighted average
|
|
587,152
|
|
|
566,715
|
|
|
587,616
|
|
|
566,008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average American Depositary Shares ('000)1
|
|
|
|
|
|
|
|
|
|
|
|
|
-in issue at September 30
|
|
22,790
|
|
|
22,375
|
|
|
22,790
|
|
|
22,375
|
|
-weighted average
|
|
22,610
|
|
|
22,427
|
|
|
22,641
|
|
|
22,353
|
|
-diluted weighted average
|
|
23,486
|
|
|
22,669
|
|
|
23,505
|
|
|
22,640
|
|
* Amounts less than $1,000
|
# Amounts less than $0.01
|
1
September 30, 2018 figure excludes
40,000,000 (September 30, 2017: 40,000,000) treasury shares held
by MiX Telematics Investments Proprietary Limited (“MiX
Investments”), a wholly owned subsidiary of the Group.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MIX TELEMATICS LIMITED
|
|
|
|
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
|
|
|
|
|
|
South African Rand
|
|
|
United States Dollar
|
|
|
Six months
ended
|
|
|
Six months ended
|
|
|
Six months
ended
|
|
|
Six months ended
|
Figures are in thousands unless otherwise stated
|
|
September 30,
|
|
|
September 30,
|
|
|
September 30,
|
|
|
September 30,
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
|
Unaudited
|
|
|
Unaudited
|
|
|
Unaudited
|
|
|
Unaudited
|
Profit for the period
|
|
68,785
|
|
|
58,144
|
|
|
4,863
|
|
|
4,111
|
Other comprehensive income:
|
|
|
|
|
|
|
|
|
|
|
|
Items that may be subsequently reclassified to profit or loss
|
|
|
|
|
|
|
|
|
|
|
|
Exchange differences on translating foreign operations
|
|
96,206
|
|
|
18,796
|
|
|
6,802
|
|
|
1,329
|
- Attributable to owners of the parent
|
|
96,203
|
|
|
18,785
|
|
|
6,802
|
|
|
1,328
|
- Attributable to non-controlling interests
|
|
3
|
|
|
11
|
|
|
*
|
|
|
1
|
Taxation relating to components of other comprehensive income
|
|
(262
|
)
|
|
—
|
|
|
(18
|
)
|
|
—
|
Other comprehensive income for the period, net of tax
|
|
95,944
|
|
|
18,796
|
|
|
6,784
|
|
|
1,329
|
Total comprehensive income for the period
|
|
164,729
|
|
|
76,940
|
|
|
11,647
|
|
|
5,440
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable to:
|
|
|
|
|
|
|
|
|
|
|
|
Owners of the parent
|
|
164,727
|
|
|
76,869
|
|
|
11,647
|
|
|
5,435
|
Non-controlling interests
|
|
2
|
|
|
71
|
|
|
*
|
|
|
5
|
Total comprehensive income for the period
|
|
164,729
|
|
|
76,940
|
|
|
11,647
|
|
|
5,440
|
* Amounts less than $1,000
|
|
|
|
|
HEADLINE EARNINGS
|
|
|
Reconciliation of headline earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
South African Rand
|
|
United States Dollar
|
|
|
|
Six months
ended
|
|
Six months ended
|
|
Six months
ended
|
|
|
Six months ended
|
|
Figures are in thousands unless otherwise stated
|
|
September 30,
|
|
September 30,
|
|
September 30,
|
|
|
September 30,
|
|
|
2018
|
|
2017
|
|
2018
|
|
|
2017
|
|
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
|
Unaudited
|
|
Profit for the period attributable to owners of the parent
|
|
68,786
|
|
|
58,084
|
|
|
4,863
|
|
|
4,107
|
|
Adjusted for:
|
|
|
|
|
|
|
|
|
|
|
Profit on disposal of property, plant and equipment and intangible
assets
|
|
(238
|
)
|
|
(313
|
)
|
|
(17
|
)
|
|
(22
|
)
|
Impairment of product development costs capitalized
|
|
51
|
|
|
127
|
|
|
4
|
|
|
9
|
|
Income tax effect on the above components
|
|
53
|
|
|
—
|
|
|
4
|
|
|
—
|
|
Headline earnings attributable to owners of the parent
|
|
68,652
|
|
|
57,898
|
|
|
4,854
|
|
|
4,094
|
|
Headline earnings
|
|
|
|
|
|
|
|
|
|
|
Headline earnings per share
|
|
|
|
|
|
|
|
|
|
|
-basic (R/$)
|
|
0.12
|
|
|
0.10
|
|
|
0.01
|
|
|
0.01
|
|
-diluted (R/$)
|
|
0.12
|
|
|
0.10
|
|
|
0.01
|
|
|
0.01
|
|
|
|
|
|
|
|
|
|
|
|
|
Headline earnings per American Depositary Share
|
|
|
|
|
|
|
|
|
|
|
-basic (R/$)
|
|
3.04
|
|
|
2.58
|
|
|
0.21
|
|
|
0.18
|
|
-diluted (R/$)
|
|
2.92
|
|
|
2.56
|
|
|
0.21
|
|
|
0.18
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADJUSTED EARNINGS
|
|
|
|
|
|
|
Reconciliation of adjusted earnings
|
|
|
|
|
|
|
South African Rand
|
|
Six months
ended
|
|
|
Six months ended
|
|
|
Three months
ended
|
|
|
Three months ended
|
|
Figures are in thousands unless otherwise stated
|
|
September 30,
|
|
|
September 30,
|
|
|
September 30,
|
|
|
September 30,
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
|
|
Unaudited
|
|
|
Unaudited
|
|
|
Unaudited
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the period attributable to owners of the parent
|
|
68,786
|
|
|
58,084
|
|
|
54,350
|
|
|
24,248
|
|
Net foreign exchange (gains)/losses
|
|
(309
|
)
|
|
1,784
|
|
|
(540
|
)
|
|
(3,209
|
)
|
Income tax effect on the above component
|
|
41,434
|
|
|
1,692
|
|
|
7,352
|
|
|
9,853
|
|
Adjusted earnings attributable to owners of the parent
|
|
109,911
|
|
|
61,560
|
|
|
61,162
|
|
|
30,892
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of earnings per share to adjusted earnings per
share
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share (R)
|
|
0.12
|
|
|
0.10
|
|
|
0.10
|
|
|
0.04
|
|
Net foreign exchange (gains)/losses
|
|
#
|
|
|
0.01
|
|
|
#
|
|
|
(0.01
|
)
|
Income tax effect on the above component
|
|
0.07
|
|
|
#
|
|
|
0.01
|
|
|
0.03
|
|
Basic adjusted earnings per share (R)
|
|
0.19
|
|
|
0.11
|
|
|
0.11
|
|
|
0.06
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings per share
|
|
|
|
|
|
|
|
|
|
|
|
|
-basic (R)
|
|
0.19
|
|
|
0.11
|
|
|
0.11
|
|
|
0.06
|
|
-diluted (R)
|
|
0.19
|
|
|
0.11
|
|
|
0.10
|
|
|
0.05
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings per American Depositary Share
|
|
|
|
|
|
|
|
|
|
|
|
|
-basic (R)
|
|
4.86
|
|
|
2.74
|
|
|
2.70
|
|
|
1.38
|
|
-diluted (R)
|
|
4.68
|
|
|
2.72
|
|
|
2.60
|
|
|
1.36
|
|
# Amounts less than R0.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United States Dollar
|
|
Six months
ended
|
|
|
Six months ended
|
|
|
Three months
ended
|
|
|
Three months ended
|
|
Figures are in thousands unless otherwise stated
|
|
September 30,
|
|
|
September 30,
|
|
|
September 30,
|
|
|
September 30,
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
|
|
Unaudited
|
|
|
Unaudited
|
|
|
Unaudited
|
|
|
Unaudited
|
|
Profit for the period attributable to owners of the parent
|
|
4,863
|
|
|
4,107
|
|
|
3,843
|
|
|
1,713
|
|
Net foreign exchange (gains)/losses
|
|
(22
|
)
|
|
126
|
|
|
(38
|
)
|
|
(227
|
)
|
Income tax effect on the above component
|
|
2,930
|
|
|
120
|
|
|
520
|
|
|
697
|
|
Adjusted earnings attributable to owners of the parent
|
|
7,771
|
|
|
4,353
|
|
|
4,325
|
|
|
2,183
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of earnings per share to adjusted earnings per
share
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share ($)
|
|
0.01
|
|
|
0.01
|
|
|
0.01
|
|
|
#
|
|
Net foreign exchange (gains)/losses
|
|
#
|
|
|
#
|
|
|
#
|
|
|
#
|
|
Income tax effect on the above component
|
|
#
|
|
|
#
|
|
|
#
|
|
|
#
|
|
Basic adjusted earnings per share ($)
|
|
0.01
|
|
|
0.01
|
|
|
0.01
|
|
|
#
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings per share
|
|
|
|
|
|
|
|
|
|
|
|
|
-basic ($)
|
|
0.01
|
|
|
0.01
|
|
|
0.01
|
|
|
#
|
|
-diluted ($)
|
|
0.01
|
|
|
0.01
|
|
|
0.01
|
|
|
#
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings per American Depositary Share
|
|
|
|
|
|
|
|
|
|
|
|
|
-basic ($)
|
|
0.34
|
|
|
0.19
|
|
|
0.19
|
|
|
0.10
|
|
-diluted ($)
|
|
0.33
|
|
|
0.19
|
|
|
0.18
|
|
|
0.10
|
|
# Amounts less than $0.01
|
|
|
|
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
|
|
|
|
South African Rand
|
|
|
United States Dollar
|
|
Figures are in thousands unless otherwise stated
|
|
September 30,
|
|
|
March 31,
|
|
|
September 30,
|
|
|
March 31,
|
|
|
2018
|
|
|
2018
|
|
|
2018
|
|
|
2018
|
|
|
|
Unaudited
|
|
|
Audited
|
|
|
Unaudited
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current assets
|
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant and equipment
|
|
461,968
|
|
|
334,038
|
|
|
32,662
|
|
|
23,617
|
|
Intangible assets
|
|
934,225
|
|
|
898,527
|
|
|
66,052
|
|
|
63,528
|
|
Capitalized commission assets
|
|
50,290
|
|
|
—
|
|
|
3,556
|
|
|
—
|
|
Deferred tax assets
|
|
44,857
|
|
|
40,717
|
|
|
3,172
|
|
|
2,879
|
|
Total non-current assets
|
|
1,491,340
|
|
|
1,273,282
|
|
|
105,442
|
|
|
90,024
|
|
Current assets
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets classified as held for sale (Note 6)
|
|
17,058
|
|
|
17,058
|
|
|
1,206
|
|
|
1,206
|
|
Inventory
|
|
66,154
|
|
|
57,013
|
|
|
4,677
|
|
|
4,031
|
|
Trade and other receivables
|
|
351,726
|
|
|
286,406
|
|
|
24,868
|
|
|
20,250
|
|
Taxation
|
|
12,371
|
|
|
30,373
|
|
|
875
|
|
|
2,147
|
|
Restricted cash
|
|
32,664
|
|
|
20,935
|
|
|
2,309
|
|
|
1,480
|
|
Cash and cash equivalents
|
|
347,253
|
|
|
308,258
|
|
|
24,552
|
|
|
21,795
|
|
Total current assets
|
|
827,226
|
|
|
720,043
|
|
|
58,487
|
|
|
50,909
|
|
Total assets
|
|
2,318,566
|
|
|
1,993,325
|
|
|
163,929
|
|
|
140,933
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
Stated capital
|
|
857,475
|
|
|
846,405
|
|
|
60,626
|
|
|
59,845
|
|
Other reserves
|
|
51,099
|
|
|
(51,614
|
)
|
|
3,613
|
|
|
(3,649
|
)
|
Retained earnings
|
|
781,968
|
|
|
722,380
|
|
|
55,287
|
|
|
51,074
|
|
Equity attributable to owners of the parent
|
|
1,690,542
|
|
|
1,517,171
|
|
|
119,526
|
|
|
107,270
|
|
Non-controlling interest
|
|
12
|
|
|
10
|
|
|
1
|
|
|
1
|
|
Total equity
|
|
1,690,554
|
|
|
1,517,181
|
|
|
119,527
|
|
|
107,271
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred tax liabilities
|
|
132,369
|
|
|
82,658
|
|
|
9,359
|
|
|
5,844
|
|
Provisions
|
|
2,437
|
|
|
2,132
|
|
|
172
|
|
|
151
|
|
Recurring commission liability
|
|
2,632
|
|
|
—
|
|
|
186
|
|
|
—
|
|
Capitalized lease liability
|
|
33,679
|
|
|
—
|
|
|
2,381
|
|
|
—
|
|
Total non-current liabilities
|
|
171,117
|
|
|
84,790
|
|
|
12,098
|
|
|
5,995
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade and other payables
|
|
380,733
|
|
|
350,519
|
|
|
26,919
|
|
|
24,780
|
|
Capitalized lease liability
|
|
10,322
|
|
|
—
|
|
|
730
|
|
|
—
|
|
Taxation
|
|
5,894
|
|
|
2,832
|
|
|
417
|
|
|
200
|
|
Provisions
|
|
24,969
|
|
|
20,283
|
|
|
1,765
|
|
|
1,434
|
|
Bank overdraft
|
|
34,977
|
|
|
17,720
|
|
|
2,473
|
|
|
1,253
|
|
Total current liabilities
|
|
456,895
|
|
|
391,354
|
|
|
32,304
|
|
|
27,667
|
|
Total liabilities
|
|
628,012
|
|
|
476,144
|
|
|
44,402
|
|
|
33,662
|
|
Total equity and liabilities
|
|
2,318,566
|
|
|
1,993,325
|
|
|
163,929
|
|
|
140,933
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
|
|
|
|
South African Rand
|
|
|
United States Dollar
|
|
|
|
Six months
ended
|
|
|
Six months ended
|
|
|
Six months
ended
|
|
|
Six months ended
|
|
|
|
September 30,
|
|
|
September 30,
|
|
|
September 30,
|
|
|
September 30,
|
|
Figures are in thousands unless otherwise stated
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
|
Unaudited
|
|
|
Unaudited
|
|
|
Unaudited
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from operating activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash generated from operations
|
|
221,187
|
|
|
141,163
|
|
|
15,639
|
|
|
9,981
|
|
Net financing income
|
|
4,133
|
|
|
1,703
|
|
|
292
|
|
|
120
|
|
Taxation paid
|
|
(23,851
|
)
|
|
(20,582
|
)
|
|
(1,686
|
)
|
|
(1,455
|
)
|
Net cash generated from operating activities
|
|
201,469
|
|
|
122,284
|
|
|
14,245
|
|
|
8,646
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditure payments
|
|
(164,192
|
)
|
|
(182,516
|
)
|
|
(11,609
|
)
|
|
(12,904
|
)
|
Proceeds on sale of property, plant and equipment and intangible
assets
|
|
412
|
|
|
1,218
|
|
|
29
|
|
|
86
|
|
Decrease in restricted cash
|
|
323
|
|
|
22
|
|
|
23
|
|
|
2
|
|
Increase in restricted cash
|
|
(1,057
|
)
|
|
(689
|
)
|
|
(75
|
)
|
|
(49
|
)
|
Net cash used in investing activities
|
|
(164,514
|
)
|
|
(181,965
|
)
|
|
(11,632
|
)
|
|
(12,865
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from issuance of ordinary shares
|
|
11,070
|
|
|
1,325
|
|
|
783
|
|
|
94
|
|
Share repurchase
|
|
—
|
|
|
(18,666
|
)
|
|
—
|
|
|
(1,320
|
)
|
Repayment of capitalized lease liability
|
|
(6,914
|
)
|
|
—
|
|
|
(489
|
)
|
|
—
|
|
Dividends paid to Company’s owners
|
|
(33,822
|
)
|
|
(25,200
|
)
|
|
(2,391
|
)
|
|
(1,782
|
)
|
Net cash used in financing activities
|
|
(29,666
|
)
|
|
(42,541
|
)
|
|
(2,097
|
)
|
|
(3,008
|
)
|
Net increase/(decrease) in cash and cash equivalents
|
|
7,289
|
|
|
(102,222
|
)
|
|
516
|
|
|
(7,227
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash and cash equivalents at the beginning of the period
|
|
290,538
|
|
|
356,333
|
|
|
20,542
|
|
|
25,194
|
|
Exchange gains on cash and cash equivalents
|
|
14,449
|
|
|
2,753
|
|
|
1,021
|
|
|
194
|
|
Net cash and cash equivalents at the end of the period
|
|
312,276
|
|
|
256,864
|
|
|
22,079
|
|
|
18,161
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
|
|
|
Attributable to owners of the parent
|
|
|
|
|
|
|
South African Rand
Figures are in thousands unless
otherwise stated
|
|
Stated
capital
|
|
|
Other
reserves
|
|
|
Retained
earnings
|
|
|
Total
|
|
|
Non-
controlling
interest
|
|
|
Total
equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at April 1, 2017 (Audited)
|
|
854,345
|
|
|
(4,370
|
)
|
|
594,514
|
|
|
1,444,489
|
|
|
(1,558
|
)
|
|
1,442,931
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income
|
|
—
|
|
|
18,785
|
|
|
58,084
|
|
|
76,869
|
|
|
71
|
|
|
76,940
|
|
Profit for the period
|
|
—
|
|
|
—
|
|
|
58,084
|
|
|
58,084
|
|
|
60
|
|
|
58,144
|
|
Other comprehensive income
|
|
—
|
|
|
18,785
|
|
|
—
|
|
|
18,785
|
|
|
11
|
|
|
18,796
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transactions with owners
|
|
(17,341
|
)
|
|
3,373
|
|
|
(25,227
|
)
|
|
(39,195
|
)
|
|
1,501
|
|
|
(37,694
|
)
|
Shares issued in relation to share options and share appreciation
rights exercised
|
|
1,325
|
|
|
—
|
|
|
—
|
|
|
1,325
|
|
|
—
|
|
|
1,325
|
|
Share-based payment transaction
|
|
—
|
|
|
4,874
|
|
|
—
|
|
|
4,874
|
|
|
—
|
|
|
4,874
|
|
Dividends declared
|
|
—
|
|
|
—
|
|
|
(25,227
|
)
|
|
(25,227
|
)
|
|
—
|
|
|
(25,227
|
)
|
Share repurchase (note 8)
|
|
(18,666
|
)
|
|
—
|
|
|
—
|
|
|
(18,666
|
)
|
|
—
|
|
|
(18,666
|
)
|
Transactions with non-controlling interest
|
|
—
|
|
|
(1,501
|
)
|
|
—
|
|
|
(1,501
|
)
|
|
1,501
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at September 30, 2017 (Unaudited)
|
|
837,004
|
|
|
17,788
|
|
|
627,371
|
|
|
1,482,163
|
|
|
14
|
|
|
1,482,177
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income
|
|
—
|
|
|
(79,361
|
)
|
|
123,050
|
|
|
43,689
|
|
|
(4
|
)
|
|
43,685
|
|
Profit for the period
|
|
—
|
|
|
—
|
|
|
123,050
|
|
|
123,050
|
|
|
(1
|
)
|
|
123,049
|
|
Other comprehensive loss
|
|
—
|
|
|
(79,361
|
)
|
|
—
|
|
|
(79,361
|
)
|
|
(3
|
)
|
|
(79,364
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transactions with owners
|
|
9,401
|
|
|
9,959
|
|
|
(28,041
|
)
|
|
(8,681
|
)
|
|
—
|
|
|
(8,681
|
)
|
Shares issued in relation to share options and share appreciation
rights exercised
|
|
9,401
|
|
|
—
|
|
|
—
|
|
|
9,401
|
|
|
—
|
|
|
9,401
|
|
Share-based payment transaction
|
|
—
|
|
|
4,126
|
|
|
—
|
|
|
4,126
|
|
|
—
|
|
|
4,126
|
|
Share-based payment - excess tax benefit
|
|
—
|
|
|
5,833
|
|
|
—
|
|
|
5,833
|
|
|
—
|
|
|
5,833
|
|
Dividends declared
|
|
—
|
|
|
—
|
|
|
(28,041
|
)
|
|
(28,041
|
)
|
|
—
|
|
|
(28,041
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at March 31, 2018 (Audited)
|
|
846,405
|
|
|
(51,614
|
)
|
|
722,380
|
|
|
1,517,171
|
|
|
10
|
|
|
1,517,181
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustment on initial application of IFRS 15, IFRS 16 and IFRS 9
(note 2)
|
|
—
|
|
|
—
|
|
|
24,675
|
|
|
24,675
|
|
|
—
|
|
|
24,675
|
|
Adjusted balance at April 1, 2018
|
|
846,405
|
|
|
(51,614
|
)
|
|
747,055
|
|
|
1,541,846
|
|
|
10
|
|
|
1,541,856
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income
|
|
—
|
|
|
95,941
|
|
|
68,786
|
|
|
164,727
|
|
|
2
|
|
|
164,729
|
|
Profit for the period
|
|
—
|
|
|
—
|
|
|
68,786
|
|
|
68,786
|
|
|
(1
|
)
|
|
68,785
|
|
Other comprehensive income
|
|
—
|
|
|
95,941
|
|
|
—
|
|
|
95,941
|
|
|
3
|
|
|
95,944
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transactions with owners
|
|
11,070
|
|
|
6,772
|
|
|
(33,873
|
)
|
|
(16,031
|
)
|
|
—
|
|
|
(16,031
|
)
|
Shares issued in relation to share options and share appreciation
rights exercised
|
|
11,070
|
|
|
—
|
|
|
—
|
|
|
11,070
|
|
|
—
|
|
|
11,070
|
|
Share-based payment transaction
|
|
—
|
|
|
4,167
|
|
|
—
|
|
|
4,167
|
|
|
—
|
|
|
4,167
|
|
Share-based payment - excess tax benefit
|
|
—
|
|
|
2,605
|
|
|
—
|
|
|
2,605
|
|
|
—
|
|
|
2,605
|
|
Dividends declared (note 9)
|
|
—
|
|
|
—
|
|
|
(33,873
|
)
|
|
(33,873
|
)
|
|
—
|
|
|
(33,873
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at September 30, 2018 (Unaudited)
|
|
857,475
|
|
|
51,099
|
|
|
781,968
|
|
|
1,690,542
|
|
|
12
|
|
|
1,690,554
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
|
|
|
Attributable to owners of the parent
|
|
|
|
|
|
|
United States Dollar
Figures are in thousands unless otherwise stated
|
|
Stated
capital
|
|
|
Other
reserves
|
|
|
Retained
earnings
|
|
|
Total
|
|
|
Non-
controlling
interest
|
|
|
Total
equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at April 1, 2017 (Unaudited)
|
|
60,406
|
|
|
(309
|
)
|
|
42,034
|
|
|
102,131
|
|
|
(110
|
)
|
|
102,021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income
|
|
—
|
|
|
1,328
|
|
|
4,107
|
|
|
5,435
|
|
|
5
|
|
|
5,440
|
|
Profit for the period
|
|
—
|
|
|
—
|
|
|
4,107
|
|
|
4,107
|
|
|
4
|
|
|
4,111
|
|
Other comprehensive income
|
|
—
|
|
|
1,328
|
|
|
—
|
|
|
1,328
|
|
|
1
|
|
|
1,329
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transactions with owners
|
|
(1,226
|
)
|
|
239
|
|
|
(1,784
|
)
|
|
(2,771
|
)
|
|
106
|
|
|
(2,665
|
)
|
Shares issued in relation to share options and share appreciation
rights exercised
|
|
94
|
|
|
—
|
|
|
—
|
|
|
94
|
|
|
—
|
|
|
94
|
|
Share-based payment transaction
|
|
—
|
|
|
345
|
|
|
—
|
|
|
345
|
|
|
—
|
|
|
345
|
|
Dividends declared
|
|
—
|
|
|
—
|
|
|
(1,784
|
)
|
|
(1,784
|
)
|
|
—
|
|
|
(1,784
|
)
|
Share repurchase (note 8)
|
|
(1,320
|
)
|
|
—
|
|
|
—
|
|
|
(1,320
|
)
|
|
—
|
|
|
(1,320
|
)
|
Transactions with non-controlling interest
|
|
—
|
|
|
(106
|
)
|
|
—
|
|
|
(106
|
)
|
|
106
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at September 30, 2017 (Unaudited)
|
|
59,180
|
|
|
1,258
|
|
|
44,357
|
|
|
104,795
|
|
|
1
|
|
|
104,796
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income
|
|
—
|
|
|
(5,611
|
)
|
|
8,700
|
|
|
3,089
|
|
|
—
|
|
|
3,089
|
|
Profit for the period
|
|
—
|
|
|
—
|
|
|
8,700
|
|
|
8,700
|
|
|
—
|
|
|
8,700
|
|
Other comprehensive loss
|
|
—
|
|
|
(5,611
|
)
|
|
—
|
|
|
(5,611
|
)
|
|
—
|
|
|
(5,611
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transactions with owners
|
|
665
|
|
|
704
|
|
|
(1,983
|
)
|
|
(614
|
)
|
|
—
|
|
|
(614
|
)
|
Shares issued in relation to share options and share appreciation
rights exercised
|
|
665
|
|
|
—
|
|
|
—
|
|
|
665
|
|
|
—
|
|
|
665
|
|
Share-based payment transaction
|
|
—
|
|
|
292
|
|
|
—
|
|
|
292
|
|
|
—
|
|
|
292
|
|
Share-based payment - excess tax benefit
|
|
—
|
|
|
412
|
|
|
—
|
|
|
412
|
|
|
—
|
|
|
412
|
|
Dividends declared
|
|
—
|
|
|
—
|
|
|
(1,983
|
)
|
|
(1,983
|
)
|
|
—
|
|
|
(1,983
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at March 31, 2018 (Unaudited)
|
|
59,845
|
|
|
(3,649
|
)
|
|
51,074
|
|
|
107,270
|
|
|
1
|
|
|
107,271
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustment on initial application of IFRS 15, IFRS 16 and IFRS 9
(note 2)
|
|
—
|
|
|
—
|
|
|
1,745
|
|
|
1,745
|
|
|
—
|
|
|
1,745
|
|
Adjusted balance at April 1, 2018
|
|
59,845
|
|
|
(3,649
|
)
|
|
52,819
|
|
|
109,015
|
|
|
1
|
|
|
109,016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income
|
|
—
|
|
|
6,784
|
|
|
4,863
|
|
|
11,647
|
|
|
*
|
|
|
11,647
|
|
Profit for the period
|
|
—
|
|
|
—
|
|
|
4,863
|
|
|
4,863
|
|
|
*
|
|
|
4,863
|
|
Other comprehensive income
|
|
—
|
|
|
6,784
|
|
|
—
|
|
|
6,784
|
|
|
*
|
|
|
6,784
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transactions with owners
|
|
781
|
|
|
478
|
|
|
(2,395
|
)
|
|
(1,136
|
)
|
|
—
|
|
|
(1,136
|
)
|
Shares issued in relation to share options and share appreciation
rights exercised
|
|
781
|
|
|
—
|
|
|
—
|
|
|
781
|
|
|
—
|
|
|
781
|
|
Share-based payment transaction
|
|
—
|
|
|
295
|
|
|
—
|
|
|
295
|
|
|
—
|
|
|
295
|
|
Share-based payment - excess tax benefit
|
|
—
|
|
|
183
|
|
|
—
|
|
|
183
|
|
|
—
|
|
|
183
|
|
Dividends declared (note 9)
|
|
—
|
|
|
—
|
|
|
(2,395
|
)
|
|
(2,395
|
)
|
|
—
|
|
|
(2,395
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at September 30, 2018 (Unaudited)
|
|
60,626
|
|
|
3,613
|
|
|
55,287
|
|
|
119,526
|
|
|
1
|
|
|
119,527
|
|
* 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, 2018
These condensed unaudited Group interim financial results for the half
year ended September 30, 2018 have been prepared in accordance with
International Financial Reporting Standard (“IFRS”), IAS 34: Interim
financial reporting, the SAICA Financial Reporting Guides as issued by
the Accounting Practices Committee, Financial Pronouncements as issued
by the Financial Reporting Standards Council (“FRSC”), the JSE Listings
Requirements and the requirements of the South African Companies Act,
No. 71 of 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, 2018, which have been
prepared in accordance with IFRS.
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, 2018, except for the adoption of
IFRS 9 Financial Instruments (“IFRS 9”), IFRS 15 Revenue from
Contracts with Customers (“IFRS 15”) and IFRS 16 Leases
(“IFRS 16”) from April 1, 2018.
The condensed unaudited Group interim financial results were prepared
under the supervision of the Interim Chief Financial Officer, PM Dell,
CA(SA). The results were made available on November 1, 2018.
Financial results for the second quarter of fiscal 2019
In addition to the condensed unaudited Group interim financial results
for the half year ended September 30, 2018, additional financial
information in respect of the second quarter of fiscal 2018 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 4), a reconciliation of free cash flow to net cash generated from
operating activities (note 7), other financial and operating data (note
11) and development costs historical data (note 18).
The quarterly financial results have not been audited or reviewed by the
Group’s external auditors.
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. Dollar amounts from
South African Rand at the exchange rate of R14.1437 per $1.00, which was
the R/$ exchange rate reported by Oanda.com as at September 30, 2018.
The U.S. Dollar figures may not compute as they are rounded
independently.
The supplementary information prepared in U.S. Dollars constitutes pro
forma financial information under the JSE Listings Requirements. This
pro forma financial information is the responsibility of the Group’s
Board of Directors and is presented for illustrative purposes. Because
of its nature, the pro forma financial information may not fairly
present MiX Telematics’ financial position, changes in equity, results
of operations or cash flows. The pro forma financial information does
not constitute pro forma information in accordance with the requirements
of Regulation S-X of the SEC or generally accepted accounting principles
in the United States. In addition, the rules and regulations relating to
the preparation of pro forma financial information in other
jurisdictions may also vary significantly from the requirements
applicable in South Africa.
2. Adoption IFRS 9, IFRS 15 and IFRS 16
IFRS 9 is effective for the Group from April 1, 2018.
IFRS 15 permits a modified retrospective cumulative catch-up approach
for the adoption, which the Group has decided to apply. Under this
approach, the Group has recognized transitional adjustments in retained
earnings on the date of initial application (i.e. April 1, 2018),
without restating the comparative period. Under the practical expedient,
the new requirements were only applied to contracts that were not
completed as of April 1, 2018.
IFRS 16 applies to annual reporting periods beginning on or after
January 1, 2019, but can be early adopted. Given that the Group applied
IFRS 15 from April 1, 2018, the Group decided to early adopt IFRS 16
from this date.
The Group has chosen to apply the ‘simplified approach’ on adoption of
IFRS 16 that includes certain relief related to the measurement of the
right-of-use asset and the lease liability at April 1, 2018, rather than
full retrospective application. Furthermore, the ‘simplified approach’
does not require a restatement of comparatives.
Refer to Note 2.1.1.2 of our consolidated financial statements for the
year ended March 31, 2018 for further details on the adoption of the
above mentioned standards.
Summary of the impact at April 1, 2018 of adopting IFRS 9, IFRS 15
and IFRS 16:
|
|
|
|
South African Rand
|
|
|
United States Dollar
|
IFRS 9 Assets
|
|
|
|
(R3.2 million)
|
|
|
($0.2 million)
|
Trade and other receivables
|
|
|
|
(R3.2 million)
|
|
|
($0.2 million)
|
|
|
|
|
|
|
|
|
IFRS 15 Assets
|
|
|
|
R46.5 million
|
|
|
$3.3 million
|
Capitalized commission assets
|
|
|
|
R45.3 million
|
|
|
$3.2 million
|
Trade and other receivables (1)
|
|
|
|
R1.2 million
|
|
|
$0.1 million
|
|
|
|
|
|
|
|
|
IFRS 16 Assets
|
|
|
|
R29.9 million
|
|
|
$2.1 million
|
Property, plant and equipment
|
|
|
|
R30.6 million
|
|
|
$2.2 million
|
Trade and other receivables (2)
|
|
|
|
(R0.7 million)
|
|
|
($0.1 million)
|
|
|
|
|
|
|
|
|
Total Assets
|
|
|
|
R73.2 million
|
|
|
$5.2 million
|
|
|
|
|
|
|
|
|
IFRS 15 Liabilities
|
|
|
|
R8.7 million
|
|
|
$0.6 million
|
Recurring commission liability (non-current)
|
|
|
|
R4.0 million
|
|
|
$0.3 million
|
Trade and other payables (3)
|
|
|
|
R4.7 million
|
|
|
$0.3 million
|
|
|
|
|
|
|
|
|
IFRS 16 Liabilities
|
|
|
|
R31.9 million
|
|
|
$2.3 million
|
Capitalized lease liability (non-current)
|
|
|
|
R23.3 million
|
|
|
$1.7 million
|
Capitalized lease liability (current)
|
|
|
|
R8.8 million
|
|
|
$0.6 million
|
Trade and other payables (2)
|
|
|
|
(R0.2 million)
|
|
|
($0.01 million)
|
|
|
|
|
|
|
|
|
Deferred tax liabilities
|
|
|
|
R7.9 million
|
|
|
$0.6 million
|
Total liabilities
|
|
|
|
R48.5 million
|
|
|
$3.5 million
|
|
|
|
|
|
|
|
|
Net increase in equity
|
|
|
|
R24.7 million
|
|
|
$1.7 million
|
(1)
|
|
Contract assets related to fixed escalations.
|
(2)
|
|
Reversal of lease prepayment and lease accruals under IAS 17
Leases. These have been reflected in the measurement of the lease
liability under IFRS 16.
|
(3)
|
|
Includes the current portion of additional recurring commission
liability of R2.9 million ($0.2 million) and increase in
liabilities related to contracts with customers due to significant
financing adjustments of R1.8 million ($0.1 million).
|
|
|
|
Summary of impact on the first half of fiscal 2019 of adopting IFRS
9, IFRS 15 and IFRS 16:
Other than a R3.6 million ($0.3 million) increase in finance costs
primarily as a result of IFRS 15 significant financing activity interest
expense and IFRS 16 capitalized lease liability interest, the impact on
each line item in the condensed consolidated income statement for the
first half of fiscal 2019 was not material.
The only adjustment to the statement of cash flows was an outflow of
R6.9 million ($0.5 million) in respect of lease liability payments being
recorded in cash flows from financing activities as a result of the
adoption of IFRS 16. This outflow was previously accounted for as an
operating lease expense and included under cash generated from
operations.
Summary of impact on the second quarter of fiscal 2019 of adopting
IFRS 9, IFRS 15 and IFRS 16:
Other than a R1.8 million ($0.1 million) increase in finance costs
primarily as a result of IFRS 15 significant financing activity interest
expense and IFRS 16 capitalized lease liability interest, the impact on
each line item in the condensed consolidated income statement for the
second quarter of fiscal 2019 was not material.
3. Segment information
Our operating segments are based on the geographical location of our
Regional Sales Offices (“RSOs”) and also include our Central Services
Organization (“CSO”). CSO is our central services organization that
wholesales our products and services to our RSOs who, in turn, interface
with our end-customers, distributors and dealers. CSO is also
responsible for the development of our hardware and software platforms
and provides common marketing, product management, technical and
distribution support to each of our other operating segments.
The chief operating decision maker (“CODM”) reviews the segment results
on an integral margin basis as defined by management. The CODM, who is
responsible for allocating resources and assessing performance of the
operating segments, has been identified collectively as the executive
committee and the Chief Executive Officer who make strategic decisions.
In respect of revenue, this method of measurement entails reviewing the
segmental results based on external revenue only. In respect of Adjusted
EBITDA (the profit measure identified by the CODM), the margin generated
by CSO, net of any unrealized intercompany profit, is allocated to the
geographic region where the external revenue is recorded by our RSOs.
The costs remaining in CSO relate mainly to research and development of
hardware and software platforms, common marketing, product management
and technical and distribution support to each of the RSOs. CSO is a
reportable segment of the Group because it produces discrete financial
information which is reviewed by the CODM and has the ability to
generate external revenues.
Each RSO’s results therefore reflect the external revenue earned, as
well as the Adjusted EBITDA earned (or loss incurred) by each operating
segment before the remaining CSO and corporate costs allocations.
Segment assets are not disclosed as segment information is not reviewed
on such a basis by the CODM.
3. Segment information (continued)
South African Rand
Figures are in thousands unless
otherwise stated
|
|
Subscription
revenue
|
|
|
Hardware and
other revenue
|
|
|
Total
revenue
|
|
|
Adjusted
EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended September 30, 2018 (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Africa
|
|
|
|
470,565
|
|
|
37,031
|
|
|
507,596
|
|
|
230,200
|
|
Europe
|
|
|
|
64,784
|
|
|
43,624
|
|
|
108,408
|
|
|
37,403
|
|
Americas
|
|
|
|
136,223
|
|
|
14,786
|
|
|
151,009
|
|
|
74,858
|
|
Middle East and Australasia
|
|
|
|
109,168
|
|
|
46,280
|
|
|
155,448
|
|
|
67,762
|
|
Brazil
|
|
|
|
29,417
|
|
|
1,290
|
|
|
30,707
|
|
|
11,292
|
|
Total Regional Sales Offices
|
|
|
|
810,157
|
|
|
143,011
|
|
|
953,168
|
|
|
421,515
|
|
Central Services Organization
|
|
|
|
385
|
|
|
6
|
|
|
391
|
|
|
(82,283
|
)
|
Total Segment Results
|
|
|
|
810,542
|
|
|
143,017
|
|
|
953,559
|
|
|
339,232
|
|
Corporate and consolidation entries
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(59,879
|
)
|
Total
|
|
|
|
810,542
|
|
|
143,017
|
|
|
953,559
|
|
|
279,353
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended September 30, 2017 (unaudited)
|
|
|
|
Subscription revenue
|
|
|
Hardware and other revenue
|
|
|
Total revenue
|
|
|
Adjusted EBITDA
|
|
Africa
|
|
|
|
423,157
|
|
|
46,392
|
|
|
469,549
|
|
|
209,392
|
|
Europe
|
|
|
|
55,923
|
|
|
33,482
|
|
|
89,405
|
|
|
29,443
|
|
Americas
|
|
|
|
83,012
|
|
|
12,868
|
|
|
95,880
|
|
|
24,958
|
|
Middle East and Australasia
|
|
|
|
98,900
|
|
|
37,096
|
|
|
135,996
|
|
|
49,570
|
|
Brazil
|
|
|
|
23,120
|
|
|
2,327
|
|
|
25,447
|
|
|
8,752
|
|
Total Regional Sales Offices
|
|
|
|
684,112
|
|
|
132,165
|
|
|
816,277
|
|
|
322,115
|
|
Central Services Organization
|
|
|
|
515
|
|
|
38
|
|
|
553
|
|
|
(68,849
|
)
|
Total Segment Results
|
|
|
|
684,627
|
|
|
132,203
|
|
|
816,830
|
|
|
253,266
|
|
Corporate and consolidation entries
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(56,070
|
)
|
Total
|
|
|
|
684,627
|
|
|
132,203
|
|
|
816,830
|
|
|
197,196
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3. Segment information (continued)
United States Dollar
Figures are in thousands unless
otherwise stated
|
|
Subscription
revenue
|
|
|
Hardware and
other revenue
|
|
|
Total
revenue
|
|
|
|
Adjusted
EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended September 30, 2018 (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Africa
|
|
|
|
33,270
|
|
|
2,618
|
|
|
35,888
|
|
|
|
16,276
|
|
Europe
|
|
|
|
4,580
|
|
|
3,085
|
|
|
7,665
|
|
|
|
2,644
|
|
Americas
|
|
|
|
9,631
|
|
|
1,046
|
|
|
10,677
|
|
|
|
5,293
|
|
Middle East and Australasia
|
|
|
|
7,718
|
|
|
3,273
|
|
|
10,991
|
|
|
|
4,791
|
|
Brazil
|
|
|
|
2,080
|
|
|
91
|
|
|
2,171
|
|
|
|
798
|
|
Total Regional Sales Offices
|
|
|
|
57,279
|
|
|
10,113
|
|
|
67,392
|
|
|
|
29,802
|
|
Central Services Organization
|
|
|
|
27
|
|
|
*
|
|
|
27
|
|
|
|
(5,818
|
)
|
Total Segment Results
|
|
|
|
57,306
|
|
|
10,113
|
|
|
67,419
|
|
|
|
23,984
|
|
Corporate and consolidation entries
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
(4,232
|
)
|
Total
|
|
|
|
57,306
|
|
|
10,113
|
|
|
67,419
|
|
|
|
19,752
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended September 30, 2017 (unaudited)
|
|
|
|
Subscription revenue
|
|
|
Hardware and other revenue
|
|
|
Total revenue
|
|
|
|
Adjusted EBITDA
|
|
Africa
|
|
|
|
29,918
|
|
|
3,280
|
|
|
33,198
|
|
|
|
14,805
|
|
Europe
|
|
|
|
3,954
|
|
|
2,367
|
|
|
6,321
|
|
|
|
2,082
|
|
Americas
|
|
|
|
5,869
|
|
|
910
|
|
|
6,779
|
|
|
|
1,765
|
|
Middle East and Australasia
|
|
|
|
6,992
|
|
|
2,623
|
|
|
9,615
|
|
|
|
3,505
|
|
Brazil
|
|
|
|
1,635
|
|
|
164
|
|
|
1,799
|
|
|
|
619
|
|
Total Regional Sales Offices
|
|
|
|
48,368
|
|
|
9,344
|
|
|
57,712
|
|
|
|
22,776
|
|
Central Services Organization
|
|
|
|
37
|
|
|
3
|
|
|
40
|
|
|
|
(4,868
|
)
|
Total Segment Results
|
|
|
|
48,405
|
|
|
9,347
|
|
|
57,752
|
|
|
|
17,908
|
|
Corporate and consolidation entries
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
(3,964
|
)
|
Total
|
|
|
|
48,405
|
|
|
9,347
|
|
|
57,752
|
|
|
|
13,944
|
|
* Amount less than $1,000
|
|
4. Reconciliation of Adjusted EBITDA to Profit for the Period
South African Rand
|
|
Six months
ended
|
|
|
Six months ended
|
|
|
Three months
ended
|
|
|
Three months ended
|
|
Figures are in thousands unless otherwise stated
|
|
September 30,
|
|
|
September 30,
|
|
|
September 30,
|
|
|
September 30,
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
|
|
Unaudited
|
|
|
Unaudited
|
|
|
Unaudited
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
|
|
279,353
|
|
|
197,196
|
|
|
152,910
|
|
|
103,313
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net profit on sale of property, plant and equipment and intangible
assets
|
|
238
|
|
|
313
|
|
|
217
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation (1)
|
|
(86,180
|
)
|
|
(71,576
|
)
|
|
(45,522
|
)
|
|
(37,096
|
)
|
Amortization (2)
|
|
(32,454
|
)
|
|
(31,387
|
)
|
|
(16,359
|
)
|
|
(16,823
|
)
|
Impairment of product development costs capitalized
|
|
(51
|
)
|
|
(127
|
)
|
|
(51
|
)
|
|
(35
|
)
|
Share-based compensation costs
|
|
(4,167
|
)
|
|
(6,226
|
)
|
|
(2,159
|
)
|
|
(4,079
|
)
|
Equity-settled share-based compensation costs
|
|
(4,167
|
)
|
|
(4,874
|
)
|
|
(2,159
|
)
|
|
(2,727
|
)
|
Cash-settled share-based compensation costs
|
|
—
|
|
|
(1,352
|
)
|
|
—
|
|
|
(1,352
|
)
|
Net loss on sale of property, plant and equipment and intangible
assets
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(19
|
)
|
Increase in restructuring cost provision
|
|
(2,308
|
)
|
|
(24
|
)
|
|
(2,330
|
)
|
|
(6
|
)
|
Operating profit
|
|
154,431
|
|
|
88,169
|
|
|
86,706
|
|
|
45,255
|
|
Add: Finance income/(costs) - net
|
|
628
|
|
|
(84
|
)
|
|
473
|
|
|
3,402
|
|
Less: Taxation
|
|
(86,274
|
)
|
|
(29,941
|
)
|
|
(32,829
|
)
|
|
(24,417
|
)
|
Profit for the period
|
|
68,785
|
|
|
58,144
|
|
|
54,350
|
|
|
24,240
|
|
(1)
|
|
Includes depreciation of property, plant and equipment (including
in-vehicle devices). The adoption of IFRS 16 during the period
resulted in depreciation of right-of-use assets of R5.1 million
being recorded in the first half of fiscal 2019 and R2.8 million in
the three months ended September 30, 2018.
|
(2)
|
|
Includes amortization of intangible assets (including product
development costs and intangible assets identified as part of a
business combination).
|
|
|
|
4. Reconciliation of Adjusted EBITDA to Profit for the Period
(continued)
United States Dollar
|
|
Six months
ended
|
|
|
Six months ended
|
|
|
Three months
ended
|
|
|
Three months ended
|
|
Figures are in thousands unless otherwise stated
|
|
September 30,
|
|
|
September 30,
|
|
|
September 30,
|
|
|
September 30,
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
|
|
Unaudited
|
|
|
Unaudited
|
|
|
Unaudited
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
|
|
19,752
|
|
|
13,944
|
|
|
10,814
|
|
|
7,303
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net profit on sale of property, plant and equipment and intangible
assets
|
|
17
|
|
|
22
|
|
|
15
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation (1)
|
|
(6,093
|
)
|
|
(5,061
|
)
|
|
(3,219
|
)
|
|
(2,623
|
)
|
Amortization (2)
|
|
(2,295
|
)
|
|
(2,219
|
)
|
|
(1,157
|
)
|
|
(1,189
|
)
|
Impairment of product development costs capitalized
|
|
(4
|
)
|
|
(9
|
)
|
|
(4
|
)
|
|
(2
|
)
|
Share-based compensation costs
|
|
(295
|
)
|
|
(441
|
)
|
|
(153
|
)
|
|
(289
|
)
|
Equity-settled share-based compensation costs
|
|
(295
|
)
|
|
(345
|
)
|
|
(153
|
)
|
|
(193
|
)
|
Cash-settled share-based compensation costs
|
|
—
|
|
|
(96
|
)
|
|
—
|
|
|
(96
|
)
|
Net loss on sale of property, plant and equipment and intangible
assets
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
Increase in restructuring cost provision
|
|
(163
|
)
|
|
(2
|
)
|
|
(165
|
)
|
|
*
|
|
Operating profit
|
|
10,919
|
|
|
6,234
|
|
|
6,131
|
|
|
3,199
|
|
Add: Finance income/(costs) - net
|
|
44
|
|
|
(6
|
)
|
|
33
|
|
|
240
|
|
Less: Taxation
|
|
(6,100
|
)
|
|
(2,117
|
)
|
|
(2,321
|
)
|
|
(1,726
|
)
|
Profit for the period
|
|
4,863
|
|
|
4,111
|
|
|
3,843
|
|
|
1,713
|
|
* Amount less than $1,000
|
(1)
|
|
Includes depreciation of property, plant and equipment (including
in-vehicle devices). The adoption of IFRS 16 during the period
resulted in depreciation of right-of-use assets of $0.4 million
being recorded in the first half of fiscal 2019 and $0.2 million in
the three months ended September 30, 2018.
|
(2)
|
|
Includes amortization of intangible assets (including product
development costs and intangible assets identified as part of a
business combination).
|
|
|
|
5. Reconciliation of Adjusted EBITDA margin to Profit for the Period
margin
|
|
Six months
ended
|
|
|
Six months ended
|
|
|
Three months
ended
|
|
|
Three months ended
|
|
|
|
September 30,
|
|
|
September 30,
|
|
|
September 30,
|
|
|
September 30,
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
|
|
Unaudited
|
|
|
Unaudited
|
|
|
Unaudited
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA margin
|
|
29.3
|
%
|
|
24.1
|
%
|
|
30.8
|
%
|
|
25.1
|
%
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net profit on sale of property, plant and equipment and intangible
assets
|
|
0.0
|
%
|
|
0.0
|
%
|
|
0.0
|
%
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
(9.0
|
%)
|
|
(8.7
|
%)
|
|
(9.1
|
%)
|
|
(9.0
|
%)
|
Amortization
|
|
(3.5
|
%)
|
|
(3.8
|
%)
|
|
(3.3
|
%)
|
|
(4.1
|
%)
|
Impairment of product development costs capitalized
|
|
(0.0
|
%)
|
|
(0.0
|
%)
|
|
(0.0
|
%)
|
|
(0.0
|
%)
|
Share-based compensation costs
|
|
(0.4
|
%)
|
|
(0.8
|
%)
|
|
(0.4
|
%)
|
|
(1.0
|
%)
|
Equity-settled share-based compensation costs
|
|
(0.4
|
%)
|
|
(0.6
|
%)
|
|
(0.4
|
%)
|
|
(0.7
|
%)
|
Cash-settled share-based compensation costs
|
|
—
|
|
|
(0.2
|
%)
|
|
—
|
|
|
(0.3
|
%)
|
Net loss on sale of property, plant and equipment and intangible
assets
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.0
|
%)
|
Increase in restructuring cost provision
|
|
(0.2
|
%)
|
|
0.0
|
%
|
|
(0.5
|
%)
|
|
(0.0
|
%)
|
Operating profit margin
|
|
16.2
|
%
|
|
10.8
|
%
|
|
17.5
|
%
|
|
11.0
|
%
|
Add: Finance income/(costs) - net
|
|
0.1
|
%
|
|
(0.0
|
%)
|
|
0.1
|
%
|
|
0.8
|
%
|
Less: Taxation
|
|
(9.1
|
%)
|
|
(3.7
|
%)
|
|
(6.7
|
%)
|
|
(5.9
|
%)
|
Profit for the period margin
|
|
7.2
|
%
|
|
7.1
|
%
|
|
10.9
|
%
|
|
5.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6. Assets Classified as Held for Sale
The assets classified as held for sale relate to the property owned by
the Central Services Organization, a division of MiX Telematics
International Proprietary Limited. No impairment loss was recognized on
reclassification of the property as held for sale as the fair value
(estimated based on the recent market prices of similar properties in
similar locations) less costs to sell is higher than the carrying
amount. Management anticipate that the sale will be completed by the end
of fiscal 2019.
7. Reconciliation of Free Cash Flow to Net Cash generated from
Operating Activities
|
|
Six months
ended
|
|
|
Six months ended
|
|
|
Three months
ended
|
|
|
Three months ended
|
|
South African Rand
|
|
September 30,
|
|
|
September 30,
|
|
|
September 30,
|
|
|
September 30,
|
|
Figures are in thousands unless otherwise stated
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
|
Unaudited
|
|
|
Unaudited
|
|
|
Unaudited
|
|
|
Unaudited
|
|
Net cash generated from operating activities
|
|
201,469
|
|
|
122,284
|
|
|
178,711
|
|
|
103,960
|
|
Capital expenditure payments
|
|
(164,192
|
)
|
|
(182,516
|
)
|
|
(85,886
|
)
|
|
(100,172
|
)
|
Free cash flow
|
|
37,277
|
|
|
(60,232
|
)
|
|
92,825
|
|
|
3,788
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months
ended
|
|
|
Six months ended
|
|
|
Three months
ended
|
|
|
Three months ended
|
|
United States Dollar
|
|
September 30,
|
|
|
September 30,
|
|
|
September 30,
|
|
|
September 30,
|
|
Figures are in thousands unless otherwise stated
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
|
Unaudited
|
|
|
Unaudited
|
|
|
Unaudited
|
|
|
Unaudited
|
|
Net cash generated from operating activities
|
|
14,245
|
|
|
8,646
|
|
|
12,635
|
|
|
7,350
|
|
Capital expenditure payments
|
|
(11,609
|
)
|
|
(12,904
|
)
|
|
(6,072
|
)
|
|
(7,082
|
)
|
Free cash flow
|
|
2,636
|
|
|
(4,258
|
)
|
|
6,563
|
|
|
268
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8. Share Repurchase
Fiscal 2018
On May 23, 2017, the MiX Telematics Board approved a share repurchase
program of up to R270 million ($19.1 million) under which the Company
may repurchase its ordinary shares, including American Depositary Shares
(“ADSs”). The Company may repurchase its shares from time to time at its
discretion through open market transactions and block trades, based on
ongoing assessments of the capital needs of the Company, the market
price of its securities and general market conditions. This share
repurchase program may be discontinued at any time by the Board of
Directors, and the Company has no obligation to repurchase any amount of
its securities under the program. The repurchase program will be funded
out of existing cash resources.
At September 30, 2017, the following purchases had been made under the
share repurchase program:
South African Rand
|
Total number of
shares
repurchased
|
|
|
Average
price paid
per share
(R)
(1)
|
|
|
Shares
canceled
under the
share
repurchase
program
|
|
|
Total value of
shares
purchased as
part
of
publicly
announced
program
(R'000)
|
|
|
Maximum value of
shares that could
be
purchased under
the program at
September
30, 2017
(R'000)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 2017
|
5,015,660
|
|
|
3.72
|
|
|
5,015,660
|
|
|
18,666
|
|
|
251,334
|
|
5,015,660
|
|
|
|
|
|
5,015,660
|
|
|
18,666
|
|
|
251,334
|
United States Dollar
|
Total number of
shares
repurchased
|
|
|
Average
price paid
per share
($)
(1)
|
|
|
Shares
canceled
under the
share
repurchase
program
|
|
|
Total value of
shares
purchased as
part
of
publicly
announced
program
($'000)
|
|
|
Maximum value of
shares that could
be
purchased under
the program at
September
30, 2017
($'000)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 2017
|
5,015,660
|
|
|
0.26
|
|
|
5,015,660
|
|
|
1,320
|
|
|
17,770
|
|
5,015,660
|
|
|
|
|
|
5,015,660
|
|
|
1,320
|
|
|
17,770
|
(1) Including transaction costs.
|
|
Subsequent to the repurchase, the shares were delisted and now form part
of the authorized unissued share capital of the Company. No repurchases
were made under the share repurchase program during the second half of
fiscal 2018.
Fiscal 2019
No purchases were made under the share repurchase program during the
first half of fiscal 2019. Refer to note 14 for details of share
repurchases made in October 2018 under this share repurchase program.
9. Dividends Paid
The following dividends were declared by the Company during the six
months ended September 30, 2018 (excluding dividends paid on treasury
shares):
-
In respect of the fourth quarter of fiscal year 2018, a dividend of
R16.9 million ($1.2 million) was declared on May 8, 2018 and paid on
June 4, 2018. Using shares in issue of 564,420,145 (excluding
40,000,000 treasury shares), this equated to a dividend of 3 South
African cents or 0.2 U.S. cents per ordinary share; and
-
In respect of the first quarter of fiscal 2019, a dividend of R16.9
million ($1.2 million) was declared on July 31, 2018 and paid on
August 27, 2018. Using shares in issue of 564,634,076 (excluding
40,000,000 treasury shares), this equated to a dividend of 3 South
African cents or 0.2 U.S. cents per share.
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
R41.4 million or $2.9 million. No loss is considered probable under this
arrangement.
11. Other Operating and Financial Data
South African Rand
|
|
Six months
ended
|
|
|
Six months ended
|
|
|
Three months
ended
|
|
|
Three months ended
|
Figures are in thousands except for subscribers
|
|
September 30,
|
|
|
September 30,
|
|
|
September 30,
|
|
|
September 30,
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
|
Unaudited
|
|
|
Unaudited
|
|
|
Unaudited
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue
|
|
953,559
|
|
|
816,830
|
|
|
496,737
|
|
|
411,167
|
Subscription revenue
|
|
810,542
|
|
|
684,627
|
|
|
420,152
|
|
|
349,262
|
Hardware revenue
|
|
122,900
|
|
|
106,810
|
|
|
66,369
|
|
|
49,837
|
Driver training, installation and other revenue
|
|
20,117
|
|
|
25,393
|
|
|
10,216
|
|
|
12,068
|
Adjusted EBITDA
|
|
279,353
|
|
|
197,196
|
|
|
152,910
|
|
|
103,313
|
Cash and cash equivalents
|
|
347,253
|
|
|
283,526
|
|
|
347,253
|
|
|
283,526
|
Net cash (1)
|
|
312,276
|
|
|
256,864
|
|
|
312,276
|
|
|
256,864
|
Capital expenditure incurred
|
|
168,093
|
|
|
177,127
|
|
|
85,349
|
|
|
98,003
|
Property, plant and equipment expenditure (2)
|
|
125,368
|
|
|
127,452
|
|
|
61,245
|
|
|
72,846
|
Intangible asset expenditure
|
|
42,725
|
|
|
49,675
|
|
|
24,104
|
|
|
25,157
|
Capital expenditure authorized but not spent
|
|
48,389
|
|
|
50,488
|
|
|
48,389
|
|
|
50,488
|
Total development cost incurred
|
|
68,091
|
|
|
67,342
|
|
|
33,983
|
|
|
34,167
|
Development cost capitalized
|
|
34,816
|
|
|
32,804
|
|
|
17,571
|
|
|
16,148
|
Development cost expensed within administration and other charges
|
|
33,275
|
|
|
34,538
|
|
|
16,412
|
|
|
18,019
|
Subscribers
|
|
714,011
|
|
|
640,158
|
|
|
714,011
|
|
|
640,158
|
|
|
|
|
|
|
|
|
|
|
|
|
South African Rand
|
|
September 30,
|
|
|
March 31,
|
|
|
|
|
|
|
|
|
2018
|
|
|
2018
|
|
|
|
|
|
|
|
|
Unaudited
|
|
|
Audited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value per share
|
|
2.97
|
|
|
2.69
|
|
|
|
|
|
|
Net tangible asset value per share
|
|
1.24
|
|
|
1.10
|
|
|
|
|
|
|
(1)
|
|
Net cash is calculated as being net cash and cash equivalents,
excluding restricted cash.
|
(2)
|
|
Excludes non-cash additions related to the initial recognition of
right-of-use assets arising from the adoption of IFRS 16 Leases. The
adoption of IFRS 16 during the period resulted in the recognition of
right-of-use assets of R12.4 million in the six months ended
September 30, 2018 and R5.2 million in the three months ended
September 30, 2018.
|
|
|
|
United States Dollar
|
|
Six months
ended
|
|
|
Six months ended
|
|
|
Three months
ended
|
|
|
Three months ended
|
Figures are in thousands except for subscribers
|
|
September 30,
|
|
|
September 30,
|
|
|
September 30,
|
|
|
September 30,
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
|
Unaudited
|
|
|
Unaudited
|
|
|
Unaudited
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue
|
|
67,419
|
|
|
57,752
|
|
|
35,121
|
|
|
29,071
|
Subscription revenue
|
|
57,306
|
|
|
48,405
|
|
|
29,706
|
|
|
24,694
|
Hardware revenue
|
|
8,689
|
|
|
7,552
|
|
|
4,692
|
|
|
3,524
|
Driver training, installation and other revenue
|
|
1,424
|
|
|
1,795
|
|
|
723
|
|
|
853
|
Adjusted EBITDA
|
|
19,752
|
|
|
13,944
|
|
|
10,814
|
|
|
7,303
|
Cash and cash equivalents
|
|
24,552
|
|
|
20,046
|
|
|
24,552
|
|
|
20,046
|
Net cash (1)
|
|
22,079
|
|
|
18,161
|
|
|
22,079
|
|
|
18,161
|
Capital expenditure incurred
|
|
11,885
|
|
|
12,523
|
|
|
6,034
|
|
|
6,929
|
Property, plant and equipment expenditure (2)
|
|
8,864
|
|
|
9,011
|
|
|
4,330
|
|
|
5,150
|
Intangible asset expenditure
|
|
3,021
|
|
|
3,512
|
|
|
1,704
|
|
|
1,779
|
Capital expenditure authorized but not spent
|
|
3,421
|
|
|
3,570
|
|
|
3,421
|
|
|
3,570
|
Total development cost incurred
|
|
4,815
|
|
|
4,761
|
|
|
2,402
|
|
|
2,416
|
Development cost capitalized
|
|
2,462
|
|
|
2,319
|
|
|
1,242
|
|
|
1,142
|
Development cost expensed within administration and other charges
|
|
2,353
|
|
|
2,442
|
|
|
1,160
|
|
|
1,274
|
Subscribers
|
|
714,011
|
|
|
640,158
|
|
|
714,011
|
|
|
640,158
|
|
|
|
|
|
|
|
|
|
|
|
|
United States Dollar
|
|
September 30,
|
|
|
March 31,
|
|
|
|
|
|
|
|
|
2018
|
|
|
2018
|
|
|
|
|
|
|
|
|
Unaudited
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value per share
|
|
0.21
|
|
|
0.19
|
|
|
|
|
|
|
Net tangible asset value per share
|
|
0.09
|
|
|
0.08
|
|
|
|
|
|
|
(1)
|
|
Net cash is calculated as being net cash and cash equivalents,
excluding restricted cash.
|
(2)
|
|
Excludes non-cash additions related to the initial recognition of
right-of-use assets arising from the adoption of IFRS 16 Leases. The
adoption of IFRS 16 during the period resulted in the recognition of
right-of-use assets of $0.9 million in the six months ended
September 30, 2018 and $0.4 million in the three months ended
September 30, 2018.
|
|
|
|
11. Other operating and financial data (continued)
|
|
Six months
ended
|
|
|
Six months ended
|
|
|
Three months
ended
|
|
|
Three months ended
|
|
|
September 30,
|
|
|
September 30,
|
|
|
September 30,
|
|
|
September 30,
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
|
Unaudited
|
|
|
Unaudited
|
|
|
Unaudited
|
|
|
Unaudited
|
Exchange Rates
|
|
|
|
|
|
|
|
|
|
|
|
The following major rates of exchange were used:
|
|
|
|
|
|
|
|
|
|
|
|
South African Rand: United States Dollar
|
|
|
|
|
|
|
|
|
|
|
|
-closing
|
|
14.14
|
|
|
13.56
|
|
|
14.14
|
|
|
13.56
|
-average
|
|
13.34
|
|
|
13.18
|
|
|
14.07
|
|
|
13.17
|
South African Rand: British Pound
|
|
|
|
|
|
|
|
|
|
|
|
-closing
|
|
18.43
|
|
|
18.13
|
|
|
18.43
|
|
|
18.13
|
-average
|
|
17.75
|
|
|
17.05
|
|
|
18.33
|
|
|
17.23
|
|
|
|
|
|
|
|
|
|
|
|
|
12. Fair Value of Financial Assets and Liabilities Measured at
Amortized Cost
The fair values of trade and other receivables, restricted cash, cash
and cash equivalents, trade payables, accruals, bank overdraft 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.
13. Performance Share Award under the MiX Telematics Limited
Long-Term Incentive Plan
The MiX Telematics Board of Directors has authorized a supplemental
performance share award under the MiX Telematics Limited Long-Term
Incentive Plan. In terms of this award the Board has designated
8,000,000 ordinary shares (equivalent to 320,000 ADSs), to be awarded to
eligible employees if the Company achieves both of the following
constant currency targets at March 31, 2020:
-
Cumulative subscription revenue for the 2019 and 2020 fiscal years of
R3,588 million, and
-
Cumulative Adjusted EBITDA for the 2019 and 2020 fiscal years of
R1,322 million.
The targets have been derived using an average forecast exchange rate of
R13.8000 per $1.00.
Half of this supplemental equity grant is being made now and the
remaining half will be awarded at the beginning of fiscal 2020 if the
Board of Directors believes the Company remains on track to meet the
vesting targets listed above. Furthermore, these performance shares will
not vest unless both targets are fully achieved in the specified
time-frame.
The incentive targets are in excess of the current and implied guidance
we have provided to investors. The incentive targets should be viewed by
investors as stretch targets that the Board and management believe may
potentially be achievable if market trends remain favorable and the
Company executes at an extremely high level. Whether or not the
incentive targets will be achievable requires consideration of the
assumptions underlying the financial guidance provided by the Company
for the 2019 fiscal year and consideration of further assumptions being
the achievement of substantial additional growth in subscription revenue
and subscribers and exceeding hardware sales targets while
simultaneously accelerating adjusted EBITDA margin expansion. The
setting of the incentive targets by the Board of Directors for the award
of the performance shares, does not substitute for the fiscal 2019
guidance and shareholders are advised to refer to the guidance provided
in the Business outlook section for the guidance for fiscal 2019. The
incentive targets relating to the performance share awards and the
assumptions underlying them are the responsibility of the board of
directors and have not been reviewed or reported on by the Company’s
external auditors.
14. Events after the reporting dates
Other than the item below, the directors are not aware of any matter
material or otherwise arising since September 30, 2018 and up to the
date of this report, not otherwise dealt with herein.
Share Repurchase
During October 2018, the following share purchases were made under the
share repurchase program:
South African Rand
|
Total number of
shares
repurchased
|
|
Average
price paid
per share
(R)
(1)
|
|
Shares
canceled
under the
share
repurchase
program
|
|
Value of shares
purchased as part
of
publicly
announced
program
(R'000)
|
|
Maximum value of
shares that may yet
be
purchased under
the program
(R'000)
|
October 2018
|
9,143,795
|
|
8.03
|
|
7,869,954
|
|
73,440
|
|
177,894
|
|
9,143,795
|
|
|
|
7,869,954
|
|
73,440
|
|
177,894
|
|
|
|
|
|
|
|
|
|
|
United States Dollar
|
Total number of
shares
repurchased
|
|
Average
price paid
per share
($)
(1)
|
|
Shares
canceled
under the
share
repurchase
program
|
|
Value of shares
purchased as part
of
publicly
announced
program
($'000)
|
|
Maximum value of
shares that may yet
be
purchased under
the program
($'000)
|
October 2018
|
9,143,795
|
|
0.57
|
|
7,869,954
|
|
5,192
|
|
12,578
|
|
9,143,795
|
|
|
|
7,869,954
|
|
5,192
|
|
12,578
|
(1)
|
|
Including transaction costs.
|
|
|
|
Subsequent to the repurchase, 7,869,954 of the shares repurchased were
delisted and now form part of the authorized unissued share capital of
the Company. The Company intends to delist all shares repurchased under
this repurchase program.
15. Dividend Declared
On October 30, 2018 the Board declared in respect of the second quarter
of fiscal year 2019, which ended on September 30, 2018, a dividend of 3
South African cents (0.2 U.S. cents) per ordinary share to be paid on
Monday, November 26, 2018.
The details with respect to the dividends declared for ordinary
shareholders are as follows:
Last day to trade cum dividend
|
|
|
|
Tuesday, November 20, 2018
|
Securities trade ex dividend
|
|
|
|
Wednesday, November 21, 2018
|
Record date
|
|
|
|
Friday, November 23, 2018
|
Payment date
|
|
|
|
Monday, November 26, 2018
|
|
|
|
|
|
Share certificates may not be dematerialized or rematerialized between
Wednesday, November 21, 2018 and Friday, November 23, 2018, both days
inclusive.
Shareholders are advised of the following additional information:
-
the dividend has been declared out of income reserves;
-
the local dividends tax rate is 20%;
-
the gross local dividend amounts to 3 South African cents per ordinary
share;
-
the net local dividend amount is 2.4 South African cents per ordinary
share for shareholders liable to pay dividends tax;
-
the issued ordinary share capital of MiX Telematics is 601,886,499
ordinary shares of no par value; and
-
the Company’s tax reference number is 9155/661/84/7.
The details with respect to the dividends declared for holders of our
ADSs are as follows:
Ex dividend on New York Stock Exchange (NYSE)
|
|
|
|
Wednesday, November 21, 2018
|
Record date
|
|
|
|
Friday, November 23, 2018
|
Approximate date of currency conversion
|
|
|
|
Monday, November 26, 2018
|
Approximate dividend payment date
|
|
|
|
Tuesday, December 11, 2018
|
|
|
|
|
|
16. Changes to the Board
Enos Banda resigned as an independent non-executive director of MiX
Telematics and a member of the Audit and Risk Committee with effect from
July 4, 2018. With effect from July 4, 2018, Fikile Futwa was appointed
as an independent non-executive director to the Board of Directors and
as a member of the Audit and Risk Committee.
17. Changes to the Company Secretary
With effect from July 1, 2018, Statucor Proprietary Limited has been
appointed as company secretary to MiX Telematics taking over from Java
Capital who had been previously appointed on an interim basis.
18. Development costs historical data
The table below sets out development costs incurred and capitalized for
each of the last eight quarters including the period ended September 30,
2018.
|
|
|
South African Rand
|
|
|
|
Figures are in thousands (Unaudited)
|
Three months ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
|
|
|
June 30,
|
|
|
March 31,
|
|
|
December 31,
|
|
|
September 30,
|
|
|
June 30,
|
|
|
March 31,
|
|
|
December 31,
|
|
|
2018
|
|
|
2018
|
|
|
2018
|
|
|
2017
|
|
|
2017
|
|
|
2017
|
|
|
2017
|
|
|
2016
|
Total development costs incurred
|
|
33,983
|
|
|
34,108
|
|
|
30,488
|
|
|
32,336
|
|
|
34,167
|
|
|
33,175
|
|
|
32,152
|
|
|
36,696
|
Development costs capitalized
|
|
17,571
|
|
|
17,245
|
|
|
16,543
|
|
|
15,996
|
|
|
16,148
|
|
|
16,656
|
|
|
17,268
|
|
|
20,415
|
Development costs expensed within administration and other charges
|
|
16,412
|
|
|
16,863
|
|
|
13,945
|
|
|
16,340
|
|
|
18,019
|
|
|
16,519
|
|
|
14,884
|
|
|
16,281
|
|
|
|
United States Dollar
|
|
|
|
Figures are in thousands (Unaudited)
|
Three months ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
|
|
|
June 30,
|
|
|
March 31,
|
|
|
December 31,
|
|
|
September 30,
|
|
|
June 30,
|
|
|
March 31,
|
|
|
December 31,
|
|
|
2018
|
|
|
2018
|
|
|
2018
|
|
|
2017
|
|
|
2017
|
|
|
2017
|
|
|
2017
|
|
|
2016
|
Total development costs incurred
|
|
2,402
|
|
|
2,413
|
|
|
2,156
|
|
|
2,286
|
|
|
2,416
|
|
|
2,345
|
|
|
2,273
|
|
|
2,594
|
Development costs capitalized
|
|
1,242
|
|
|
1,220
|
|
|
1,170
|
|
|
1,131
|
|
|
1,142
|
|
|
1,177
|
|
|
1,221
|
|
|
1,443
|
Development costs expensed within administration and other charges
|
|
1,160
|
|
|
1,193
|
|
|
986
|
|
|
1,155
|
|
|
1,274
|
|
|
1,168
|
|
|
1,052
|
|
|
1,151
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
19. Taxation
Section 11D Allowances relating to tax assets recognized
MiX Telematics International Proprietary Limited (“MiX International”),
a subsidiary of the Group, historically claimed a 150% allowance for
research and development spend in terms of section 11D (“S11D”) of the
South African Income Tax Act No. 58 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. 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 in the 2013 and 2014 fiscal years did
not, in the DST’s opinion, constitute qualifying expenditure in terms of
the Act. MiX International, through due legal process, had formally
requested a review of the DST’s decision not to approve this
expenditure. While approvals were obtained for a portion of this project
expenditure as a result of a further review performed by the DST in
February 2017, we continue to seek approval for the remaining projects
and as such the legal process is ongoing. In addition to the approvals
that were subject to the legal process, further approvals have been
obtained for certain project expenditure, relating to both current and
prior financial years. However, at period end, an uncertain tax position
remains in relation to S11D deductions in respect of which approvals
remain pending.
Since the introduction of the DST pre-approval process, the Group has
recognized in the income statement cumulative tax incentives in addition
to the incurred cost of R22.2 million ($1.6 million) in respect of S11D
deductions, of which R1.7 million ($0.1 million) was recognized during
the six months ended September 30, 2018. R19.4 million ($1.4 million)
relates to deductions in respect of development project expenditure
which has been approved by the DST. R2.8 million ($0.2 million) relates
to an uncertain tax position in respect of projects where approvals have
not yet been received from the DST. If the Group is unsuccessful in this
regard, the Group will not recover the R2.8 million ($0.2 million)
raised at September 30, 2018.
Impact of foreign exchange movements
The impact of foreign exchange movements and the related tax effects on
the Group's effective tax rate is shown below:
South African Rand
|
|
Six months ended September 2018
|
|
|
Six months ended September 2017
|
|
|
Unaudited
|
|
|
Unaudited
|
|
|
Profit for
the period
|
|
|
Foreign
exchange
gains
|
|
|
Adjusted
earnings
|
|
|
Profit for the period
|
|
|
Foreign exchange losses
|
|
|
Adjusted earnings
|
|
Profit before tax
|
|
155,059
|
|
|
(309
|
)
|
|
154,750
|
|
|
88,085
|
|
|
1,784
|
|
|
89,869
|
|
Taxation
|
|
(86,274
|
)
|
|
41,434
|
|
|
(44,840
|
)
|
|
(29,941
|
)
|
|
1,692
|
|
|
(28,249
|
)
|
Profit after tax
|
|
68,785
|
|
|
41,125
|
|
|
109,910
|
|
|
58,144
|
|
|
3,476
|
|
|
61,620
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Owners of the parent
|
|
68,786
|
|
|
41,125
|
|
|
109,911
|
|
|
58,084
|
|
|
3,476
|
|
|
61,560
|
|
Non-controlling interests
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|
60
|
|
|
—
|
|
|
60
|
|
|
|
68,785
|
|
|
41,125
|
|
|
109,910
|
|
|
58,144
|
|
|
3,476
|
|
|
61,620
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax rate
|
|
55.6
|
%
|
|
—
|
|
|
29.0
|
%
|
|
34.0
|
%
|
|
—
|
|
|
31.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United States Dollar
|
|
Six months ended September 2018
|
|
|
Six months ended September 2017
|
|
|
Unaudited
|
|
|
Unaudited
|
|
|
Profit for
the period
|
|
|
Foreign
exchange
gains
|
|
|
Adjusted
earnings
|
|
|
Profit for the period
|
|
|
Foreign exchange losses
|
|
|
Adjusted earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit before tax
|
|
10,963
|
|
|
(22
|
)
|
|
10,941
|
|
|
6,228
|
|
|
126
|
|
|
6,354
|
|
Taxation
|
|
(6,100
|
)
|
|
2,930
|
|
|
(3,170
|
)
|
|
(2,117
|
)
|
|
120
|
|
|
(1,997
|
)
|
Profit after tax
|
|
4,863
|
|
|
2,908
|
|
|
7,771
|
|
|
4,111
|
|
|
246
|
|
|
4,357
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Owners of the parent
|
|
4,863
|
|
|
2,908
|
|
|
7,771
|
|
|
4,107
|
|
|
246
|
|
|
4,353
|
|
Non-controlling interests
|
|
*
|
|
|
*
|
|
|
*
|
|
|
4
|
|
|
*
|
|
|
4
|
|
|
|
4,863
|
|
|
2,908
|
|
|
7,771
|
|
|
4,111
|
|
|
246
|
|
|
4,357
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax rate
|
|
55.6
|
%
|
|
—
|
|
|
29.0
|
%
|
|
34.0
|
%
|
|
—
|
|
|
31.4
|
%
|
* Amount less than $1,000
|
|
Excluding the impact of foreign exchange gains and losses and its
related tax consequences, the effective tax rate is 2.4% lower than the
first six months of fiscal 2018.
|
|
|
For and on behalf of the Board:
|
|
|
|
|
|
RA Frew
|
|
SB Joselowitz
|
Midrand
|
|
|
October 30, 2018
|
|
|
|
|
|
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
|
RA Frew* (Chairman), SB Joselowitz (CEO), SR Bruyns* (Lead
Independent Director), PM Dell, F Futwa*, IV Jacobs*,
|
F Roji-Maplanka*, CWR Tasker, AR Welton*
|
* Non-executive
|
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Company secretary
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Statucor Proprietary Limited
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Auditors
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Deloitte & Touche
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Sponsor
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Java Capital
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November 1, 2018
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Contact: