AUTOMATIC SYSTEMS LTD.
AUDITED INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2005
|
|
|
|
|
|
|
|
2004 |
2004 |
|
|
|
Rs 000 |
Rs 000 |
|
|
|
|
|
|
|
|
|
|
|
TURNOVER |
|
657,430 |
421,742 |
|
|
|
-------- |
-------- |
|
Payments to winners |
|
492,976 |
|
313,785 |
|
Payments to the
National Solidarity Fund |
|
6,309 |
|
- |
|
Payments to the Horse
Racing Board |
|
- |
|
3,873 |
|
Government tax |
|
57,992 |
|
38,255 |
|
Net pools carried
forward |
|
16 |
|
12 |
|
|
|
557,293 |
355,925 |
|
|
|
-------- |
-------- |
|
Gross profit |
|
100,137 |
65,817 |
|
|
|
|
|
|
Selling expenses |
|
( 5,845) |
( 5,450) |
|
Administrative expenses |
|
( 54,462) |
(31,464) |
|
Other operating expenses: Payments to
The Mauritius Turf Club |
|
( 35,224) |
( 22,310) |
|
|
|
-------- |
-------- |
|
OPERATING PROFIT |
|
4,606 |
6,593 |
|
Finance income |
|
2,094 |
1,587 |
|
|
|
-------- |
-------- |
|
PROFIT BEFORE TAXATION |
|
6,700 |
8,180 |
|
Income tax expense |
|
(1,867) |
(1,850) |
|
|
|
-------- |
-------- |
|
PROFIT FOR THE YEAR |
|
4,833 |
6,330 |
|
|
|
======== |
======== |
|
|
|
|
|
|
BASIC AND DILUTED EARNINGS PER SHARE |
Re |
1.37 |
1.79 |
|
|
|
======== |
======== |
AUTOMATIC SYSTEMS LTD.
AUDITED BALANCE SHEET – 31 DECEMBER 2005
|
|
|
2005 |
2004 |
|
|
|
Rs 000 |
Rs 000 |
|
ASSETS |
|
|
|
|
Non-current assets |
|
|
|
|
Plant and equipment |
|
8,464 |
18,107 |
|
Available-for-sale financial assets |
|
100 |
100 |
|
|
|
------- |
------- |
|
|
|
8,564 |
18,207 |
|
|
|
------- |
------- |
|
Current assets |
|
|
|
|
Receivables and prepayments |
|
926 |
829 |
|
Loans |
|
30,500 |
5,000 |
|
Cash at bank |
|
2,917 |
20,704 |
|
|
|
------- |
------- |
|
|
|
34,343 |
26,533 |
|
|
|
------- |
------- |
|
Total assets |
|
42,907 |
44,740 |
|
|
|
======= |
======= |
|
|
|
|
|
|
EQUITY |
|
|
|
|
Share capital |
|
24,745 |
24,745 |
|
Share premium |
|
1,168 |
1,168 |
|
Retained earnings |
|
4,917 |
7,508 |
|
|
|
------- |
------- |
|
Total equity |
|
30,830 |
33,421 |
|
|
|
------- |
------- |
|
LIABILITIES |
|
|
|
|
Non-current liabilities |
|
|
|
|
Deferred income tax liabilities |
|
1,065 |
2,950 |
|
|
|
------- |
------- |
|
Current liabilities |
|
|
|
|
Trade and other payables |
|
7,087 |
5,339 |
|
Current income tax liabilities |
|
3,925 |
3,030 |
|
|
|
------- |
------- |
|
|
|
11,012 |
8,369 |
|
|
|
------- |
------- |
|
Total liabilities |
|
12,077 |
11,319 |
|
|
|
------- |
------- |
|
Total equity and
liabilities |
|
42,907 |
44,740 |
|
|
|
======= |
======= |
AUTOMATIC SYSTEMS LTD.
AUDITED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2005
|
|
Share capital |
Share premium |
Retained earnings |
Total equity |
|
|
Rs 000 |
Rs 000 |
Rs 000 |
Rs 000 |
|
|
|
|
|
|
|
At 01 January 2004 |
35,350 |
1,168 |
1,178 |
37,696 |
|
Profit for the year |
- |
- |
6,330 |
6,330 |
|
Reduction of share capital |
( 10,605) |
- |
- |
( 10,605) |
|
|
------- |
------- |
------- |
------- |
|
At 31 December 2004 |
24,745 |
1,168 |
7,508 |
33,421 |
|
Profit
for the year |
- |
- |
4,833 |
4,833 |
|
Dividends
paid |
- |
- |
( 7,424) |
( 7,424) |
|
|
------- |
------- |
------- |
------- |
|
At 31 December 2005 |
24,745 |
1,168 |
4,917 |
30,830 |
|
|
======= |
======= |
======= |
======= |
AUTOMATIC SYSTEMS LTD.
AUDITED CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2005
|
|
|
2005 |
2004 |
|
|
|
Rs 000 |
Rs 000 |
|
|
|
|
|
|
Cash flow
from operating activities |
|
|
|
|
Profit
before taxation |
|
6,700 |
8,180 |
|
Adjustments
for: |
|
|
|
|
Depreciation of plant and equipment |
|
5,441 |
7,154 |
|
Impairment of plant and equipment |
|
8,965 |
- |
|
Loss on plant and equipment scrapped |
|
1 |
- |
|
Dividend income |
|
( 29) |
(
27) |
|
Interest income |
|
( 2,065) |
(
1,555) |
|
Amortisation of discount on treasury bills |
|
- |
(
60) |
|
|
|
------- |
------- |
|
Operating profit before working capital changes |
|
19,013 |
13,692 |
|
Increase in
receivables and prepayments |
|
( 97) |
(
341) |
|
Increase/(decrease)
in trade and other payables |
|
976 |
(
743) |
|
|
|
------- |
------- |
|
Cash generated from operations |
|
19,892 |
12,608 |
|
Interest
received |
|
2,065 |
1,555 |
|
Income tax
paid |
|
( 2,857) |
(
3,070) |
|
|
|
------- |
------- |
|
Net cash from operating activities |
|
19,100 |
11,093 |
|
|
|
------- |
------- |
|
Cash flow
from investing activities |
|
|
|
|
Payments
for purchase of plant and equipment |
|
( 3,992) |
(
3,479) |
|
Proceeds
from redemption of treasury bills |
|
- |
2,700 |
|
Dividends
received |
|
29 |
27 |
|
Loans
granted |
|
( 44,000) |
(
7,300) |
|
Loans
reimbursed |
|
18,500 |
27,300 |
|
|
|
------- |
------- |
|
Net cash (used in)/from investing activities |
|
( 29,463) |
19,248 |
|
|
|
------- |
------- |
|
Cash flow
from financing activities |
|
|
|
|
Dividends
paid |
|
( 7,424) |
- |
|
Reduction
of share capital |
|
- |
(
10,605) |
|
|
|
------- |
------- |
|
Net cash used in financing activities |
|
( 7,424) |
(
10,605) |
|
|
|
------- |
------- |
|
Net (decrease)/increase in cash and cash equivalents |
|
( 17,787) |
19,736 |
|
Cash and
cash equivalents at beginning of year |
|
20,704 |
968 |
|
|
|
------- |
------- |
|
Cash and cash equivalents at end of year |
|
2,917 |
20,704 |
|
|
|
======= |
======= |
ACCOUNTING
STANDARDS
The financial statements
for the year ended 31 December 2005 have been prepared in accordance with and
comply with International Financial Reporting Standards.
COMMENTS ON 2005 RESULTS AND PROSPECTS
Turnover increased substantially from Rs 421 M in 2004 to reach Rs 657 M
in 2005. On the Stock Exchange, the
shares of the company traded at Rs 37.70 per share on 31 December 2005 compared
to Rs 33.00 on 31 December 2004, an increase of 14%.
In December 20042005, the directors decided to purchase and
install a new Tote System (“AMTOTE System”) at a cost of Rs 32 M..
This investment has been approved by the shareholders on 16 January 2006. The
commissioning is expected to be completed by 31 March 2006 and the new system
will be operational for the first race meeting scheduled for 22 April 2006.
The new system will allow betting by Mauritian punters on foreign races
and vice versa;
and this is known as commingling.
Commingling of bets this is expected to produce a bigger
pool. The directors have already
submitted an application to the Horse Racing Board for commingling of pools.
However the decision to purchase the new AMTOTE system resulted in the
company suffering an impairment loss equivalent to the net book value of the
existing Tote system, namely Rs 9.0 M. The profit after tax for the year 2005
was therefore adversely affected and stood at Rs 4.8 M compared to Rs 6.3 M in
2004. The earnings per share dropped to
Rs 1.37 from Rs 1.79 in 2004.
The 10 off-course outlets have performed above expectations in 2005 with
a combined turnover of Rs 238 M. The
company has applied for 15 additional outlets in 2006 and a positive response
from the Horse Racing Board is expected soon.
The directors expect the turnover of the Company to continue to grow in
2006 and the profits to improve accordingly in 2006.
DIVIDENDS
On 23 February 2006, the
Directors declared a dividend of Rs 1.39 per ordinary share resulting in a
total dividend payable of Rs 4,913,650.
Approved and signed
on 03 March 23
February 2006
and signed
by
M. A. Eric Espitalier Noël
and Ravindra Chetty
These financial statements are issued pursuant to
Listing Rule 12.20.
The Board of Directors of ASL accepts full
responsibility for the accuracy of the information contained in these financial
statements.