v2 Report
SYFT Syft Technologies Limited

Commentary: 

Syft Technologies Limited (SYFT) is a technology company with expertise in technology that detects chemicals such as the voice200 unit which is able to detect traces of explosives – useful in counter-terrorism measures. “We derive our name from SIFT-MS (Selected Ion Flow Tube Mass Spectrometry).  SIFT-MS represents a quantum breakthrough in VOC analysis, and at Syft we incorporate the world's leading SIFT-MS research centre, bringing together a unique body of intellectual property, software, hardware, and design know-how.” (from the website; about section).

Some recent highlights include the capital raising; NZD4.4m @12 cents per share, as part of a two stage effort intended to raise a total NZD 10mio. The second stage will be via a rights issue – see here for details. The purpose of the capital raising is basically to fund growth and expansion: “We look forward to putting the funds to work in expanding our market-reach and in further research and development of the innovative Syft technology.” Mr Luff said the Company was at a very exciting stage in its development. It had launched the second generation Voice200TM in Europe last month and was working hard on boosting growth in global markets.” (from the announcement made on the capital raising)

In terms of financial performance, the company is still in the early development stage and thus is yet to run a profit. Given that net assets in the FY 07 report are lower than the net loss made in that year – another year may have wiped the company out, luckily the capital raising will ensure that the company at least staves off bankruptcy before it starts pulling in some serious sales. Essentially there can’t be much said about the financials at this stage of the company’s life; as an investor you’re basically counting on the company to commercialise its product ASAP.

Going forward, the successful capital raising will ensure that the company will have the financial stability and strength to support the product roll-out. It is an interesting product with particular relevance in the current climate, and with a potential global market it could be a good bet. But essentially it is speculative, an investment decision relies on your forecasts of future sales and whether cash flows from these will discount to an amount greater than the price you paid –but then with this kind of company simply breaking even and announcing the scoring of some key contracts will give the stock price a boost. So make a forecast of the future and act accordingly…

By Callum Thomas

4-September-2007

Website:  http://www.syft.com/ 

Recent announcements: click here 

IPOs and Investment Opportunities

Financials 
 

Statement of Financial Performance
	2007	2006	2005	2004
Revenue
Sales	1,142,000	2,481,000	24,258	33,819
Interest received	77,000	93,000	91,017	92,782
Other	1,987,000	1,805,000	1,279,729	255,496
Total Revenue	3,206,000	4,379,000	1,395,004	382,097
Expenses
Cost of sales	5,935,000	5,635,000	5,266	16,585
Other expenses	-	-	3,342,802	2,556,986
EBITDA	(2,729,000)	(1,256,000)	(1,953,064)	(2,191,474)
Depreciation	104,000	125,000	-	-
Amortisation	19,000	-	-	-
EBIT	(2,852,000)	(1,381,000)	(1,953,064)	(2,191,474)
Interest expense	35,000	8,000	31	418
Taxation	-	-	-	-
NPAT	(2,887,000)	(1,389,000)	(1,953,095)	(2,191,892)
Statement of Financial Position
	2007	2006	2005	2004
Assets
Current Assets
Bank and cash	215,000	41,000	1,996,623	713,746
Receivables	716,000	197,000	19,009	6,224
Inventory	891,000	970,000	701,287	-
Other	116,000	127,000	101,622	77,938
Total Current Assets	1,938,000	1,335,000	2,818,541	797,908
Non Current Assets
Property Plant & Equipment	496,000	470,000	262,627	213,617
Investments	-	75,000	-	-
Goodwill & Intangibles	188,000	133,000	69,670	-
Other	-	164,000	-	-
Total Non Current Assets	684,000	842,000	332,297	213,617
Total Assets	2,622,000	2,177,000	3,150,838	1,011,525
Liabilities
Current Liabilities
Payables	410,000	431,000	207,927	192,378
Short term borrowings	-	-	-	-
Other	490,000	666,000	473,678	133,752
Total Current Liabilities	900,000	1,097,000	681,605	326,130
Non Current Liabilities
Long-term Borrowings	-	-	-	-
Other	-	-	-	-
Total Non Current Liabilities	-	-	-	-
Total Liabilities	900,000	1,097,000	681,605	326,130
Net Assets	1,722,000	1,080,000	2,469,233	685,395
Statement of Cashflows
	2007	2006	2005	2004
Cash flows from operating activities
Operating revenues	2,641,000	4,218,000	1,854,039	375,873
Operating expenses	5,815,000	5,908,000	4,111,683	2,284,533
	(3,174,000)	(1,690,000)	(2,257,644)	(1,908,660)
Cash flows from investing activities
Inflows	-	1,000	3,202	489
Outflows	181,000	267,000	212,681	223,754
	(181,000)	(266,000)	(209,479)	(223,265)
Cash flows from financing activities
Inflows	3,529,000	-	3,750,000	-
Outflows	-	-	-	-
	3,529,000	-	3,750,000	-
Net Increase (decrease)	174,000	(1,956,000)	1,282,877	(2,131,925)
Opening cash	41,000	1,997,000	713,746	2,845,671
Closing cash	215,000	41,000	1,996,623	713,746
	Analysis
Per share figures
Dividend/shares	-	-	-	-
NPAT/shares (EPS)	(0.02)	(0.01)	(0.02)	(0.31)
EBITDA/shares	(0.02)	(0.01)	(0.02)	(0.31)
Net Assets/shares	0.01	0.01	0.02	0.10
Profitability
ROA	-110.11%	-63.80%	-61.99%	-216.69%
Equity multiplier	1.5	2.0	1.3	1.5
ROE	-167.65%	-128.61%	-79.10%	-319.80%
ROavgE	-206.07%	-78.27%	-123.82%	-
Net profit margin	-90.05%	-31.72%	-140.01%	-573.65%
Liquidity
Net working capital	1,038,000	238,000	2,136,936	471,778
Current ratio	2.15	1.22	4.14	2.45
Quick ratio	1.16	0.33	3.11	2.45
Working capital ratio	0.40	0.11	0.68	0.47
Capital structure
Debt to equity	0.52	1.02	0.28	0.48
Interest coverage	-81.49	-172.63	-63002.06	-5242.76
Shares	133,574,678	120,000,000	120,000,000	7000000
Dividends paid	-	-	-	-
Dividend payout ratio	0%	0%	0%	0%
Growth rates
Revenue	-26.79%	213.91%	265.09%
EBITDA	117.28%	-35.69%	-10.88%
NPAT	107.85%	-28.88%	-10.89%
Total assets	20.44%	-30.91%	211.49%
Net assets	59.44%	-56.26%	260.26%
g = (ROE*(1-DPR))	-167.65%	-128.61%	-79.10%	-319.80%
Other
Share price (31-August-07)	$            0.17	Avg 4 yr growth rate (NPAT)		22.69%
Market cap	$  22,707,695	Cmpdg 4 yr growth rate (NPAT)		7.13%
Enterprise value (EV)	$  23,607,695	Avg 4 yr growth rate (NA)		87.82%
EV/EBITDA	-8.65	Cmpdg 4 yr growth rate (NA)		25.90%
P/E Ratio	-7.87
P/NA ratio	13.19
Dividend yield	0.00%
Earnings yield (E/P)	-13%

Company balance date: 31 March

Supplementary Information

This company has not supplied any content, and has not chosen to provide sponsorship.

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