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| Subject: Some calculations ERG | |
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Author: ERG first half reporting early Feb--period 30/6/02--31/12/02 |
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Date Posted: 08:29:05 01/22/03 Wed Thank you for using the forum, Wonder Woman Your entry has now been added to the forum as follows... Name: Wonder Woman Location: Sydney, NSW Australia Date: Thursday, January 23, 2003 at 3:25:52 AM Subject: Some calculations ERG financials--1st half---reporting early Feb03. Comments: Delloite Touche and Tomatshu will be the auditor. ratified 28/11/02. ---------------------- 6 million expensed integrating Proton acquired March 15 02 with The Group, during period 30/6/01 to the 30/6/02 reported 12/9 audited 1/10 The Group received 3 months of revenue for up untill March 15th 02 it only owned 10% of it. For period 30/6/02 to the 31/12/02 consolidated within accounts instead of having to subtract outside equity interests the full impact of PWI (29 patents amortised over the period in which no other party can use the design, relating to the period over which future benefits are recognised.) on net tangible assets,it is described as a merger ASX announcement 31/5/02 "the acquisition and merger with Proton World" ------------------------- ERG Group, in prior years including to the present day PWI has a policy of expensing all research and development costs, it has been in the primary stage of research and development of the products that are now being sold, this has been reflected in it's accounts, through the profit and loss statement,(as is it's current policy) while R&D is ongoing, (who was it Woodrow Wilson? who stated all the things that have been invented, have already been invented in I think around 1914?--LOL) it is in a tertiary stage, CEO Peter Fogarty has stated "This has given us the comfort to reduce R&D spend to 8% of revenue in 2002 compared to 18% of the comparable revenue base, which excludes telecommunications revenue, in 2001."(8% on research and development 30.16 million.F/Y03 -- If it were constant 25% revenue growth) it's former shareholders in resolution 3.1 ratified on the 28/11/02 have a changed legal relationship with ERG. an end to joint venture and now equity partners. S&P investable weight factor. ------------------------ ASX announcement-(abbreviated) 30/10/02 15 March 2002 issue to Banksys SA of 31,016,515 1,000,000 options at 31.4c(announced 8/4/02 amended 11/4/02--to add the 31.4 figure) fully paid ordinary shares.14,841,655 fully paid ordinary shares issued & allotted each to Interpay Nederland BV American Express Travel Related Services Company Inc Visa International Services Association it was done on the terms of the share purchase agreements between those companies at 28c, which were to meet a performance benchmark as part of receiving equity in ERG Group, the fact that they have received shares and confirmed in ERG's accounts that with the rollout of such things as Prisma, some of those benchmarks which are sliding scale have been met ahead of schedule.ASX announcement 19/3/02 " As part of the acquisition, American Express, Banksys and Interpay Nederland agreed to enter into five to seven year service level agreements that are expected to generate revenue in excess of $200 million over that time." The specific reason for the purchase of Proton on March 15th 2002 is stated in the prospectus for the rights issue lodged with the ASIC and announced 31/10/2001 "PWI is committed to the creation and implementation of worldwide standards and specifications for smart cards, and has been particularly active in the Global Platform consortium with regard to promoting the Proton Prisma Card and Application Life Cycle Manager ("CALC") specification, one of PWI’s products, as a foundation component of the Global Platform specification." ---------------------- As part of the same performance package, the following,1,000,000 unlisted options in the Company exercisable at 37.6c(American style.) any time up untill or even on the day 29th of March 2007. American Express Travel Related Services Company Inc referred for short as Amex 7,000,000 unlisted options exercise prices between 37.6c and 45c.Redundancy costs (once only) may be part of the above 6 million. 1.943.000.00 The redundancies occurred as did the 6 million expensed in the 2nd half of the last reporting period, then maybe not for it is recognised as an expense in the profit and loss statement, as it is incurred along with income tax, (ie it reduces pre tax operating profit) Erg Group paid of 3,870 future income tax benefit 69,566accumulated losses 223,314 mostly as the result of the one off non recurring writedowns financial reporting period June 30th 2001 to Junes 30th 2002-reported 12/9/2002 audited 1/10/2002. 6 million will not negatively impact this half year.30/6/2002 to the 31/12/2002 Consolidated balance sheet non current tax assets were listed as nil 12/9/02 for the second half, 31/12/01 to 30/6/02 in the first half 23,593 covering period 30/6/01 to 31/12/01 one of the reasons net assets declined from 273,185 down to 151,747--total equity, was related to this for non current tax liabilities, in period 30/6/01 to 3012/01 was 19,625. The entity has a non current tax liability of 19,625 it has now a future income tax benefit of 69,566 which with tax effect accounting coming in on the 1st of July 2005 it can claim to a formula the FITB as an asset this is AASB1020, The CPA (Certified Practicing Accountant's of Australia.) in it's magazine of December 2002 states the operative date of AASB1020/ AAS 3 'Income Taxes' to annual reporting periods beginning on or after 1 January 2005. However, for those companies that wish to early adopt, they can use AASB1020/AAS3 as they are harmonised with IAS 12. at any rate regrdless of the above within the last reporting period for the full year 30/6/2001 to 30/6/2002 reported 12/9/02 audited by Price Waterhouse Coopers (next report done by Delloite Touch and Tomatsu) it's net tangible asset backing NTA,will not be affected by an amount of 19,625 as it has accumulated losses of 223,314 to offset. add further to the sum of 19,625 the positive aspect of not having to pay 3,870 in tax as ERG Group did in the prior period. ---------------------- So I make for the reasons stated above and quite apart from restructuring and the Proton acquisition of March 15th 02 making NTA rise, I see the above as being significant too. Australia follows the 'all inclusive' approach where all revenues and expenses, profits and losses are included in the calculation of profit and are recorded within the profit and loss statement there are three exceptions to this rule. P Fogarty states 12/9 "Depreciation and amortisation, mainly arising from the major infrastructure investments, will continue to run at approximately $35million (before amortisation of the Proton World goodwill of $11million each year.") ERG has chosen the straightline method for the goodwill of Proton and this is covered under AASB 1024 linked in the same way as the patents mentioned earlier with future benefits that will arise, no longer period than 20 years.The goodwill for the acquisition of PWI 15/3/02 was partly funded by the issue and allotment of shares to Banksys, Amex, Interpay and Visa, exact details also mentioned above, therefore amounts,share capital to the value of 21.152 million with the options that were issued including 7,437,210 options to employee's (appear European Style rather than American for it states expiring 1/2/2009 at 40c)--appendix 3B 26/6/02 and the contingent liability of 38,701,000 a further amount of 38,022,191 staggered. (some of which has been paid already)The 38,701,000 is a deffered expenditure falling under the matching principle, by deffering it ERG has boostedprofits period 30/6/02 to 30/12/02 which will be reported in early February, while at the same time being matched out as the revenue is earned from PWI, making it non current does subtract off NTA countering that however is as stated the full assets of 100% consolidated merged PWI, which in a mixture of cash and shares originally cost 58 million in cash and 75.5 million shares to it's10 per cent stake in Proton World International to full ownership. ----------------------- To confirm ASX announcement 1/10/2002 states "The recognition of this liability has not affected the reported earnings and has been added to the goodwill in relation to the Proton World acquisition." Sale of EDI Downer shares released from escrow occuring on the 9/7/02 announced to the ASX 10/7/02 13 million realised. mentioned again in ASX announcement 12/9 16 million generated proceeds used to repay Commonwealth Bank (part consideration ERG Connect) a phone call 13/1/03 to investor relations Sean Duffy stated a small profit made, reading the two announcements, while Sean did not state what the profit was, concluded is 3 million for on the 10/7/02 the word realised is used and on the 12/9 a greater amount has been mentioned ie 16 mill and the term generated has been stated.Annualised savings confirmed 30 million on the 28/11/02 (ie approx 27 m on the 30/5/02) equals 13.5 mill for half the year.ASX announcement realating to first half of last financial year 30/6/01 to 31/12/01 P Fogarty states "of which $12 million annualised has been achieved since November 2001."Profit or loss on sale of non current assets is calculated as selling price less book value,Investments accounted for using the equity method (unlisted companies) 58,876 minus 5 million Ecard equals 53,876 Ecard-14/11/02 39%'clear evidence' tangibility.5m retained rights to PWI technology owned ERG for auditor Deloitte Touche Tohmatsu. The previous amount by the Group on Ecard are recoverable through American Express which has an agreement with Telstra (among others)--ie roll out of Prisma, this will take time though, talking as the years go forward from here. As Peter Fogarty states 14/11/02 the benefits are longer term. (translated getting what we invested in to devolop the technology that Ecard has, with ANZ and Telstra) IAS36 An intangible asset should be derecognised on disposal or when no future economic benefits are expected from its use and subsequent disposal. Gains or losses arising from the derecognition of an intangible asset should be determined as the difference between the net disposal proceeds and the carrying amount of the asset and should be recognised as income or an expense in the income statement. --------------------- Reversal of prior year profit, exchange movement and equity losses applicable to Prepayment Cards Limited 13,990 47.1% equity accounted---regardless of it's status with it possibly moving above 50% the reversal of profit in last years accounts negatively impacted the entity--this has not occured in period 30/6/2002 to 31/12/2002. AASB 1018 (three exceptions) "A revaluation to the extent it is a reversal of a previous devaluation is recognised through the profit and loss statement." Corporations law requires directors ensure non current assets are recorded at an amount that would have to be spent to acquire the asset at the end of the financial year. This is referred to as the notional replacement cost. Have more to add to the above such as the Melbourne Settlement although a post has already been made on that. Along that line of thought a number of things occuring post June 30th, revenues building from Singapore,so forth. Regards,--WW. [ Next Thread | Previous Thread | Next Message | Previous Message ] |
| Subject | Author | Date |
| Re: Some calculations ERG I can see Walts 40c valuation | With an investor hat on--approx/estimate within 6 mths | 08:44:42 01/22/03 Wed |
| Re: Some calculations ERG half 28 equals 14 | half55 equals 27.5 half that equals13.75 9.20 halving 14.375 | 22:11:58 01/22/03 Wed |
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