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Notes |
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Six months |
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Six months |
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Year |
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ended |
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ended |
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ended |
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31.08.09 |
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31.08.08 |
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28.02.09 |
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(Unaudited) |
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(Unaudited) |
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(Audited) |
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Headline earnings per
share (cents) |
-51% |
93 |
|
192 |
|
275 |
|
Adjusted headline earnings
per share (cents) |
-49% |
103 |
|
200 |
|
295 |
|
Diluted headline earnings
per share (cents) |
-47% |
91 |
|
171 |
|
257 |
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Adjusted diluted headline
earnings per share (cents) |
-44% |
100 |
|
179 |
|
277 |
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Basis of preparation |
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The unaudited interim
financial results have been prepared in
accordance with the recognition and measurement
criteria of International Financial Reporting
Standards (IFRS) and its interpretations adopted
by the International Accounting Standards Board
(IASB) in issue and effective at 31 August 2009,
the disclosure requirements of IAS34, Interim
Financial Reporting and in compliance with the
Listings Requirements of the JSE Limited.
The accounting policies used in the preparation
of these interim results are consistent with
those used in the annual financial statements
for the year ended 28 February 2009. |
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R millions
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1.
Capital items |
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|
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Net gain /
(loss) on disposal of property, plant and
equipment |
|
1
|
|
(1) |
|
23
|
|
Impairment of
goodwill |
|
(51) |
|
-
|
|
(90) |
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Impairment of
property, plant and equipment |
|
-
|
|
-
|
|
(12) |
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Net gain on
disposal of businesses and investments |
|
-
|
|
58
|
|
58
|
|
|
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(50) |
|
57
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|
(21) |
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2. Reconciliation
between attributable earnings and |
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|
headline earnings |
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|
|
|
|
|
|
Attributable to Altron
equity holders |
|
243
|
|
654
|
|
835
|
|
Capital items - gross |
|
50
|
|
(57) |
|
21
|
|
Tax effect of capital
items |
|
-
|
|
2
|
|
8
|
|
Minority interest in
capital items |
|
-
|
|
1
|
|
(3) |
|
Headline earnings |
|
293
|
|
600
|
|
861
|
|
|
|
|
|
|
|
|
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3. Reconciliation
between attributable earnings and |
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diluted earnings |
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|
|
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|
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Attributable to Altron
equity holders |
|
243
|
|
654
|
|
835
|
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Additional earnings
attributable to BBBEE minorities in subsidiaries |
|
(3) |
|
(56) |
|
(44) |
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Minority interest in
adjustments |
|
1
|
|
1
|
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8
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Additional earnings
attributable to dilutive options at subsidiary
level |
|
(4) |
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(5) |
|
(17) |
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Diluted earnings |
|
237
|
|
594
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782
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|
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4. Reconciliation
between headline earnings and |
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|
|
|
|
|
|
diluted headline earnings |
|
|
|
|
|
|
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Headline earnings |
|
293
|
|
600
|
|
861
|
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Additional earnings
attributable to BBBEE minorities in subsidiaries |
|
(3) |
|
(56) |
|
(41) |
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Minority interest in
adjustments |
|
1
|
|
1
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8
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Additional earnings
attributable to dilutive options at subsidiary
level |
|
(4) |
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(5) |
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(17) |
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Diluted headline earnings |
|
287
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|
540
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811
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5. Reconciliation
between headline earnings and |
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adjusted headline
earnings |
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Adjusted headline earnings
have been presented to demonstrate the |
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impact of some accounting
charges arising on acquisitions on the headline |
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earnings of the group.
Headline earnings are reconciled to adjusted |
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headline earnings as
follows: |
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Headline earnings |
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293
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600
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861
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Amortisation of
intangibles arising on business acquisitions |
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50
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42
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104
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Tax effect of adjustments |
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(12) |
|
(13) |
|
(29) |
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Minority interest in
adjustments |
|
(7) |
|
(3) |
|
(12) |
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Adjusted headline earnings |
|
324
|
|
626
|
|
924
|
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6. Reconciliation
between diluted headline earnings and |
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|
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|
|
|
|
adjusted diluted headline
earnings |
|
|
|
|
|
|
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Diluted headline earnings |
|
287
|
|
540
|
|
811
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Amortisation of
intangibles arising on business acquisitions |
|
50
|
|
42
|
|
104
|
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Tax effect of adjustments |
|
(12) |
|
(13) |
|
(29) |
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Minority interest in
adjustments |
|
(7) |
|
(3) |
|
(12) |
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Adjusted diluted headline
earnings |
|
318
|
|
566
|
|
874
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Fully diluted earnings,
diluted headline earnings and adjusted diluted
headline earnings have been calculated in
accordance with IAS 33 - Earnings per share on
the basis that:
| - |
The
recognition of the deferred sale of a
30% interest in Aberdare Cables to the
Izingwe Consortium based on the
assumption that the outstanding purchase
price will be settled in cash for R80
million (comprising the empowerment
funding obligation net of excess cash
deposits of R27 million), adjusted for
the dilutive effect of the option price
at the Aberdare level and after taking
into account the 10% investment in the
Izingwe Consortium by Power Technologies
(Pty) Limited. |
| - |
The
recognition of the deferred sale of a
30% interest to Platina Venture Holdings
(Pty) Limited in Altech Alcom Matomo
based on the assumption that the
internally financed purchase price will
be settled in cash of R13 million,
adjusted for the dilutive effect of the
option at the Altech Alcom Matomo
level. |
| - |
The
earnings effect of dilutive options at
Allied Technologies Limited level. |
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7. Acquisitions of
subsidiaries |
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During the period the
Altech group acquired a number of operations,
namely 1 March 2009 - Fleetcall - the largest
trunk two-way radio operator in South Africa, 1
March 2009 - Technology Concepts - an
established internet technology services
business and corporate internet service
provider, 1 June 2009 - NuPay - a transaction
service provider and switching company and 100%
of the Altech Netstar franchisees in Nelspruit
and Polokwane for an aggregate consideration of
R190 million, of which R54 million is
deferred. |
The acquired businesses
contributed revenue of R73 million and net
profit after tax of R13 million to the group for
the period ended
31 August 2009. |
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If the acquisitions had
occurred on 1 March 2009, group revenue and net
profit after tax before allocations would have
increased by R24 million and R3 million
respectively. These amounts have been calculated
using the group's accounting policies and where
purchase price allocations have been completed,
by adjusting the results of the subsidiaries to
reflect amortisation on the fair value
adjustments to intangible assets from 1 March
2009, together with the consequential tax
effects. |
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The purchase price
allocations of Fleetcall, Technology Concepts
and Nupay are in the process of being finalised. |
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R millions |
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Recognised |
|
Fair value |
|
Carrying |
|
|
|
values |
|
adjustments |
|
amount |
|
Non-current assets |
|
32
|
|
23
|
|
55
|
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Current assets |
|
28
|
|
-
|
|
28
|
|
Current liabilities |
|
(27) |
|
-
|
|
(27) |
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Net identifiable assets
and liabilities |
|
33
|
|
23
|
|
56
|
|
Excess of consideration to
balance sheets before fair value adjustments |
|
|
|
|
|
134
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Total consideration |
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|
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|
190
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less attributable to
minorities |
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(2) |
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less cash and cash
equivalents in subsidiaries acquired |
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(7) |
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less deferred purchase
consideration |
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(54) |
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Cash outflow from the
group on acquisition |
|
|
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|
127
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8. Disposal of NamITech
South Africa, a division of Altech Information
Technologies (Proprietary) Limited. |
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On 1 April 2009 the group
disposed of the net assets of the NamITech South
Africa division for R 82.2 million to Gemalto. |
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The net assets were shown
as held for sale at 28 February 2009. |
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9. Post-Balance sheet
events |
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Altech together with its
partner, Sameer has acquired significant
bandwith capacity on the Seacom undersea cable
system. |
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Altech/Sameer has procured
two STM-16s from Seacom (equivalent to 5 gbps),
for US$ 69.3m payable by Altech and Sameer
according to |
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their 60%/40% shareholding
over a number of years, with the option to
upgrade within three years to double this
capacity. |
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Seacom has, in return,
invested in excess of US$20 million in capacity
on the terrestrial fibre network of Kenya Data
Networks, a subsidiary of the Altech group. |
