Surveyed Results and Business Review.


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Programming Division monetary results. Income up 26.1% to R475m (2007: ... Most specialty units recorded strong results and keep on being very much situated in ...
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Explored Results & Business Overview for the 12 months finished 30 September 2008 Published on 25 November 2008

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Forward looking explanation Various comments that we may make about future desires, arranges and prospects for the Group or its auxiliaries constitute forward looking proclamations Actual results may contrast really from those demonstrated by these forward looking articulations as a consequence of different vital variables

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Agenda John Bright – CEO – UCS Group Limited Introduction & exchanging environment 2008 monetary results highlights Dean Sparrow – CFO – UCS Group Limited Group budgetary audit for the year finished 30 September 2008 John Bright – CEO – UCS Group Limited Divisional Review BBBEE Looking Forward Q&A

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The UCS Group (\'UCS\') UCS is an IT business with an essential spotlight on the arrangement of Software, Solutions & Services for chose markets UCS has accomplished an authority position in the retail showcase area in South Africa and is very much situated for further development locally and universally through various characterized activities Currently, more than 80% of UCS\'s incomes are gotten from the arrangement of its own Software, Solutions & Services, instead of the offer of 3 rd party items

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About us We are an enhanced IT Software, Solutions & Services business which includes huge client esteem through vertical business sector center We are the recognized pioneers in answers for the retail advertise in South Africa and have started our worldwide extension in this vertical The larger part of SA\'s biggest retailers are clients of UCS Group Our product keeps running in more than 15 000 stores Our retail programming & arrangements touches more than 20m South Africans consistently We utilize more than 2 500 individuals over the Group We are all around situated for further development locally & globally through various characterized activities as of now in advancement

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UCS Group 2008 segmental report Software Division (6 exchanging elements) UCS Group Limited Solutions & Services Division (10 exchanging elements) UCS Software UCS Solutions CKS CEB Maintenance GAAP TSS MS UCS Software Manufacturing Destiny (incl CSC)* UCS UK Accsys Aquitec UK** UKS UCS USA Inc** (t/an Aquitec USA) Fernridge LifeWorld/4Life DiverseIT * Acquisition viable first September 2008 ** Acquisition viable first March 2008 *** Lifeworld and 4 Life are two related however isolate statutory elements

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Trading environment Global lull Extremely unstable exchanging conditions Non-sustenance retail advertises under exceptional weight Number of significant IT anticipates in forte retail showcase lessening & rivalry strengthening Domestic market Good action levels in Government segment until Mbeki review Expect low movement in Government segment until after races one year from now As with International markets, non-nourishment retail segment under extraordinary weight Other UCS exchanging elements The thump on impact of diminished customer certainty and optional spend is undulating through most ventures Overall, a testing exchanging environment for IT organizations like UCS, especially with an attention on claim to fame retail

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Results highlights Acceptable execution given the intense exchanging conditions Revenue up 14.5% to R1 226m (2007: R1 071m) Normalized EBITDA up 11.2% to R195m mirroring an edge of 15.9% (2007:16.4%) Normalized PBIT up 16.1% to R130m mirroring an enhancing edge of 10.6% (2007: 10.4%) Cash produced from operations, adjusted to EBITDA up 11.5% to R199m (2007: R179m) Total resources = R1 billion surprisingly Return on value at 22.1%

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Dean Sparrow CFO – UCS Group Limited

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Income Statement investigation Revenue development of 14.5% comprises of natural development of 10.1% and the parity identified with earlier and current year acquisitions Annuity income developed by 28.6% to R759m (2007: R590m) Material once off things incorporated into EBITDA and PBIT FY08 identified with the securing of Aquitec: R5m benefit on revaluation of advance record procured in Aquitec UK R3m negative goodwill emerging on obtaining of Aquitec USA Material once off things incorporated into EBITDA and PBIT FY07 were as per the following: R66m benefit on creation and unbundling of Argility Limited R8m benefit on special of the system business to Internet Solutions The above things have been stripped out to reflect standardized EBITDA and PBIT as highlighted Decrease in the R&D cost connected with the unbundling of Argility Limited and the outsourced item improvement concurrence with UCSSM

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Income Statement examination (proceeded with) Interest paid up generously (98%) year on year because of expansion paying off debtors on asset report and the movement from non enthusiasm bearing non bank obligation to enthusiasm bearing bank obligation The tax collection for 2008 of R 21.5m (2007: R17.9m) contains: Statutory charge (incl CGT & STC) of R39.9m (2007: R29.6m) Deferred charge credit of R18.4m (2007: R11.7m) Previously unrecognized surveyed misfortunes brought up in FY08 relating to a great extent to Destiny e Commerce brought about an a sound representative for tax assessment of R13.4m (2007: UCS Solutions R10.8m credit) Current year standardized expense rate compares to 27% (2007: 16%) i.e. in the wake of evacuating the once off things (incl charge impact) and including back the R13.4m (2007: R10.8m) conceded charge credit The Group\'s compelling duty rate going ahead will draw nearer to the statutory rate of 28%

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Income Statement investigation (proceeded with) EPS down 42% to 33.3 pennies (2007: 57.4 pennies) earlier year Argility Limited exchange contributed 20.5 pennies of the 57.4 pennies EPS Headline profit moderately level year on year at R91.6m (2007: R92.5m) HEPS down 8% to 31.9 pennies (2007: 34.7 pennies) Key accommodating things amongst EPS and HEPS: Negative goodwill emerging on Aquitec exchange – 1.1 pennies Normalized HEPS down 18% to 25.5 pennies (2007: 31.1 pennies) – in the wake of barring full effect of R13.4m (2007: R10.8m) conceded charge credit Aquitec advance revaluation on procurement of R5m Diluted HEPS 30.8 pennies down 6% (2007: 32.7 pennies) Final profit announced of 5 pennies results in entire year profits of 9 pennies steady with the full profit pronounced and paid in admiration of FY07

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Balance Sheet examination Non-current Assets P,P&E net decline in net book estimation of R7.9m bolstered by: Capex of R48.7m (2007: R58.6m) P,P&E emerging on acquisitions of R3.4m; which is counterbalanced by Disposals of R11.9m, re-assignment to resources held available to be purchased R11.6m and deterioration of R36.5m The development in impalpable resources (excl. goodwill) bolstered by: Acquisition of CSC R42.6m Acquisition of Aquitec R25.5m Software acquired R8.2m Development costs promoted R5.6m Amortization R28.4m Disposals and other R1.1m

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Balance Sheet examination (proceeded with) Non current resources (cont) Key supporters to the substantial development in goodwill: Acquisition of CSC R37.5m Acquisition of Aquitec R21.1m Additional price tag connected with TSSMS R4.9m 4life R1.9m Current Assets Group rental stock exchange triggers: Finance lease receivables (short and long haul) R9.7m Asset held available to be purchased R11.6m still to be sold and rented back R9.1m of obligation altogether (both short and long haul) Trade and different receivables have expanded by 13% or R26m to R224m (2007: R198m) Trade receivables incl. current year acquisitions of R19.1m when prohibited shows account holders days point of view of 49 days (2007: 45 days)

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Balance Sheet investigation (proceeded with) Equity and stores The material developments in the value owing to value holder\'s of the guardian: Current year net benefit created R95.8m Ordinary shares issued at a premium R12.4m Fair esteem modification (R1m) Share based installments save increment R4.7m Dividends paid (R26m) Net abatement in treasury offers R5.4m Liabilities Net development in credits of R67m to R216m (2007: R149m) essentially as an aftereffect of: CSC procurement including: bank obligation R53m conceded seller advances of R15m Rental stock deal and leaseback duties of R9.1m

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Balance Sheet examination (proceeded with) Liabilities The year end monetary record mirrors an outfitting of 43% (2007: 36%) with the genuine outer bank obligation segment mirroring an adapting of 33.1% (2007: 10.2%) where value joins minority premiums The Group\'s present proportion at year end has enhanced to 1.3:1 (2007: 1.1:1) with the transient advance commitment diminishing by 18.2% year on year and the present resources developing by 15.8% Trade and different payables have expanded by 7.4% to R213m (2007: R198m) comprehensive of gatherings and development billings yet barring arrangements. The generally little increment on this line has negatively affected working capital according to the income articulation

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Cash Flow investigation Cash created from operations up 11.5% at R199m (2007: R179m) firmly adjusted to standardized EBITDA of R195m and supporting the nature of profit After the working capital necessities, premium, profit and tax assessment paid this changed over into a 30.7% abatement in income from working exercises Cash connected to contributing exercises can be separated as takes after: Acquisition of CSC – R68.7m Acquisition of Aquitec – R34.8m Acquisition of 4Life – R1m Cash obtained – (R14.8m) Capex – P,P&E and elusive resources – R55.5m Development costs promoted – R5.6m Purchase of treasury shares – R2.3m Proceeds on transfer of P,P&E – R10.5m Loans progressed – R20.3m

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Cash Flow examination Cash used in financing exercises is made up as takes after: Proceeds from net shares issued – R2.5m Net Loans raised – R75.8m Cash and money reciprocals at R143m (2007: R145m) moderately level year on year after generous contributing exercises

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John Bright Divisional Review

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UCS Group 2008 segmental report Software Division (6 exchanging substances) UCS Software Custom and bundled programming administrations & answers for huge scale retail endeavors – multip

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