Logistics and technology supply chain company Imperilog has received a summons in relation to a dispute over a business sold in 1998.
<B>Figures at a glance</B>
Imperilog results for the year to 30 June 2001
Previous year`s figures in parentheses:
Revenue: R56.88m (R212.34m)
Continuing operations: R56.88m (R33.33m)
Operating profit: R21.13m (R12.45)
Continuing operations: R21.13m (R10.04m)
Profit after tax: R611 000 (R14.11m)
Headline earnings: R31.45m (R29.38m)
HEPS: 29.8c (39.9c)
Current liabilities: R44.4m (R55.42m)
Current assets: R28.21m (R21.4m)
Cash and equivalents: R18.14m (R12.23m)
Cash generated by operations: R13.97m (R86.74m)
Imperilog chairman Tak Hiemstra says a summons was issued on behalf of Corpgro seeking damages of R40 million for alleged breach of warranty and non-disclosure.
The spat centres on a business which Imperilog sold in 1998.
"The directors and the group`s legal advisors are of the opinion that the claim can be successfully defended," Hiemstra says.
The group, which provides logistics to the technology sector and companies involved in high-value consumer and industrial goods, has also reported its financial results for the year to 30 June 2001.
While total revenue showed a marked decline, revenue from continuing operations rose 70.7%, while on a continuing operations basis, operating profit more than doubled from the previous year.
"Profits from logistics operations exceeded the budgeted forecast for the year," says Hiemstra. "It is significant to note that the growth in all operating divisions was purely organic and that business volumes increased despite the general business slowdown experienced in the technology sector."
Hiemstra adds that the previous year`s results have been restated, due to recent changes in generally accepted accounting practice regarding the treatment of deferred taxation.
"The effect of this change was that an asset of R43.8 million had to be raised in the previous year, due to unutilised assessed losses carried forward. This asset increased the prior year`s net asset value from 91c to 129c (42%). The resultant deferred tax charged in the current year has a negative impact on headline earnings per share of 6c and has no impact on cash flow.
"In addition to the charge for deferred tax, the headline earnings per share were negatively impacted by the weighted average number of shares in the previous year."
Looking ahead, Hiemstra says Imperitek, ImperiHold and ImperiXpress will continue to grow as their services are extended to more customers in the high-value and time-sensitive goods industries.
"However, it is anticipated that an exciting opportunity in the area of supply chain financing exists. ImperiFin is well positioned with adequate cash resources at its disposal to capitalise on this opportunity."
The group is also planning to develop ImperiFreight as a strong inbound logistics division to manage the freight forwarding and clearing into SA of significant tonnages of high-value goods.
The Imperilog share was unchanged at 110c on the JSE late this morning.
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