DNA Supply Chain Investments experienced a "disappointing" year to 30 June, reporting a 49.5% decline in headline earnings per share.
<B>Salient figures</B>
DNA Supply Chain Investments results for the year to 30 June 2002.
Previous year`s figures in parentheses:
Turnover: R2.39b (R1.7b)
Revenue*: R1.03b (R586.09m)
EBITDA: R64.29m (R84.75m)
Goodwill amortisation: R22.03m (R11.31m)
Income after tax: R16.21m (R47.91m)
Attributable income: R12.22m (R43.85m)
HEPS: 5.3c (10.5c)
Current assets: R545.34m (R422.5m)
Current liabilities: R465.77m (R316.65m)
NAV per share: 39.3c (36c)
NTAV per share: 21.2c (23.3c)
*Revenue is calculated by deducting statutory and other disbursements, made on behalf of clients, from gross billings.
CEO Mark Kaplan says although the supply chain solutions group experienced growth in market share and revenue, the margins were affected negatively by several factors.
The group made several investments, among them technology and the development of client solutions, the benefits of which have still to be reaped. Offshore investments, aimed at positioning DNA to take advantage of international opportunities, were not expected to yield a return in the first year, Kaplan says.
Sensormatic lost a major contract, resulting in a failure to meet its stated objectives, and the provisional liquidation of retailer CNA resulted in lost revenue. A R5 million provision has been made in that regard.
Kaplan says the overall financial performance for the year, particularly the second half, has been disappointing.
However, he says the group has been positioned to provide a valuable and distinctive supply chain management offering.
"We expect growth to come from our existing client base and new clients. Consequently, the year ahead is expected to show an improvement in margins as benefits begin to flow from our investments in technology, solutions and infrastructure."
DNA`s objectives for the year ahead include converting existing clients and introducing new clients to its integrated service offering; strengthening its position in its chosen markets; and continuing to develop opportunities with international partners.
Kaplan says shareholders will soon be sent a circular providing full details of an agreement with a black empowerment partner which may become a controlling shareholder of subsidiary DNA Micor.
The DNA share was trading at 39c on the JSE this morning, down 1c from yesterday`s close.
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