| Tue 9 Sep 2008, 10:54 | | CCI - CIC - Results announcement for the 12 months ended 30 June 2008 |
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CCI
CCI
CCI - CIC - Results announcement for the 12 months ended 30 June 2008
CIC Holdings Limited
(Incorporated in the Republic of Namibia)
(Registration number 95/502)
(Registered as an external company in the Republic of South Africa)
(Registration number 1996/002672/10)
Share code: CCI & ISIN: NA0009174278
("CIC" or "the Group")
RESULTS ANNOUNCEMENT FOR THE 12 MONTHS ENDED 30 JUNE 2008
CHANGE IN ACCOUNTING PERIOD
As previously announced to shareholders, the Group has changed its financial
year end from 30 June to the last day of February. The last audited results re-
published on SENS on 4 August 2008 and distributed to shareholders on 6 August
2008, was for the 8 month period ended 29 February 2008. As a result of the
change in year end, the Group, in compliance with the JSE Listings Requirements
and in order to provide more meaningful 12 month comparative results to
shareholders, has thus disclosed the reviewed financial results for the 12
months ended 30 June 2008.
KEY INFORMATION
Strong revenue growth of 25%
Attributable earnings increased by 79%
Weighted headline earnings per share increased by 59%
COMMENTARY
The Group successfully listed on the Altx on 30 November 2007. The listing on
Altx has increased the number of shares in issue from 202 188 081 to 252 188 081
through the private placement of 50 million shares at R1 per share.
The majority of the Group`s income streams emanate from countries outside of
South Africa. Top line sales have unfortunately faced the pressure of rising
costs particularly in the area of distribution with increased fuel prices linked
to managing customer service level appropriately. However, the Group has
experienced good sales growth, year on year, in all countries.
All categories, including fast moving consumer goods, tobacco products, and
alcoholic beverages that make up the core agency business, performed well.
The staffing solutions business performed to expectation despite having lost a
major blue collar staffing contract, due to other divisions performing above
expectations.
RESULTS
Total revenue for the period was N$1 905 million (2007 N$1 529 million).
Profit from operations increased by 32% to N$51,8 million with a margin
improvement of 5,8% to 2,7%.
Attributable profit to the Group`s shareholders increased from N$17,7 million to
N$31,7 million, up 78,6%. This was as a result of good performances across the
board from existing businesses as well as the effect of new business
acquisitions in South Africa, the increased shareholding in Ocean Traders
International and the acquisition of minority shareholdings in associated
companies during the period.
A total of 50 million new shares were issued pursuant to the listing of CIC on
the Altx. This contributed to the weighted average number of shares increasing
to 206 066 583 shares at 30 June 2008.
The Balance Sheet reflects the increased working capital requirements due to
price increases this year that resulted in higher inventory, debtors and
creditors values. This, together with strategic stock purchasing resulted in
higher working capital levels at 30 June 2008.
The higher working capital levels, the acquisitions in associate companies and
further shareholding acquired in subsidiary companies, resulted in cash and cash
equivalents decreasing to N$61,1 million at 30 June 2008 versus the N$67,2
million at 30 June 2007 and N$72,2 million as at the end of December 2007.
Net asset value per share increased to 76,5 cents per share.
REGIONAL REVIEW
SOUTH AFRICA
The staffing solutions business` strategic move into the hospitality market as
well as the acquisition of the Foundation Group has added significant critical
mass to the business. Other growth opportunities in the technical staff market
are also gaining momentum. Labour Supply Chain`s venture into Botswana is also
starting to experience success with a number of new accounts.
The investment in Vital Merchandising Services has contributed positively to the
year`s results. This was followed by the purchase of a shareholding in the Focus
Retail Services business in the Western Cape as a further step in acquiring a
national footprint in the sales and merchandising services industry, supplying
manufacturers with solutions to all trade sectors, within which they operate.
SWAZILAND / MOZAMBIQUE - OCEAN TRADERS INTERNATIONAL
Ocean Traders International has had a good year. Alcoholic beverages have sold
particularly well in the region.
The intent to increase the portfolio of fast moving consumer goods has been
very encouraging and started to contribute favourably towards the end of the
period. Additional resources have been deployed within the operation to manage
the momentum of the increased critical mass, along with upgrading infrastructure
to accommodate more appropriate stockholding and distribution requirements.
NAMIBIA / BOTSWANA
The businesses performed to expectation during the last year. Focus has been on
cost reduction, particularly in light of rising transport / distribution costs
linked to increasing fuel costs. Whilst the countries have small
populations residing in a vast land mass, service expectations are
not dissimilar to customers in South Africa. This puts further pressure on
managing costs. The businesses do have balanced portfolios within the fast
moving consumer goods, alcoholic beverages and tobacco categories that have
largely resulted in profitability flowing through for the year.
PROSPECTS
The volatility seen in global markets and the food commodity uncertainty linked
to exploding price increases may well, however, in the short term have a
dampening effect on the consumer goods markets within which the Group operates.
The critical rising inflation and higher food costs will have an effect on the
momentum of growth, with the very real possibility of affecting the overall
consumer goods market. However, the balance of CIC`s market presence and the
brand portfolios that are represented across all categories will to some extent
protect financial performance going forward, with many of the brands being
fairly resilient in tough trading conditions.
For and on behalf of the board
TP Rogers FW Britz
Chief Executive Officer Chief Financial Officer
8 September 2008
CONDENSED GROUP INCOME STATEMENTS
30 JUNE 2008
REVIEWED AUDITED
12 months 12 months
ended ended
Change 30/06/2008 30/06/2007
% N$`000 N$`000
Revenue 24.6 1,905,284 1,529,402
Profit from operations 31.8 51,875 39,370
Depreciation 18.8 6,550 5,512
Net finance expense 800.0 1,305 145
Share of profit of equity
accounted investees - 6,847 -
Profit before tax 50.9 50,867 33,713
Tax 43.3 14,696 10,254
Profit for the period 54.2 36,171 23,459
Attributable to:
Equity holders of the
company 78.6 31,707 17,752
Minority interest (21.8) 4,464 5,707
54.2 36,171 23,459
Reconciliation of
headline earnings
Profit for the period 36,171 23,459
Non - trading items
- capital profit (313) -
- capital loss 1,500 -
Plus : tax on the above
items 89 -
Headline earnings 59.6 37,447 23,459
Headline earnings
attributable to
Equity holders of the
company 81.8 32,269 17,752
Minority interest (9.3) 5,178 5,707
59.6 37,447 23,459
Earnings per
ordinary share
Weighted average -
cents 56.1 15.4 9.9
Diluted - cents 51.3 14.9 9.9
Fully diluted -
cents 43.2 12.6 8.8
Headline Earnings
per ordinary share
Weighted average -
cents 58.9 15.7 9.9
Diluted - cents 53.9 15.2 9.9
Fully diluted - cents 45.7 12.8 8.8
Number of ordinary
shares
Weighted average 206,067 180,133
Diluted 212,710 180,133
Fully diluted 252,188 202,188
CONDENSED GROUP STATEMENTS OF CHANGES IN SHAREHOLDERS` EQUITY
30 JUNE 2008
REVIEWED AUDITED
12 months 12 months
ended ended
30/06/2008 30/06/2007
N$`000 N$`000
Balance at beginning as previously reported 146,276 129,035
Share option reserve 2,378 811
Shares issued 46,064 -
Shareholding increased in subsidiary (14,758) -
New subsidiaries - Transfer to minority interest (5,826) (1,917)
Translation of foreign entities 3,429 (1,427)
Net profit for the period 36,171 23,459
Ordinary dividends (16,367) (3,685)
Balance at end of the period 197,367 146,276
Comprising:
Share capital 227 180
Share premium 129,379 83,362
Share option reserve 4,567 2,104
Accumulated profit 60,423 59,266
Translation of foreign entities (1,759) (5,158)
Minority interest 4,530 6,522
197,367 146,276
CONDENSED GROUP BALANCE SHEETS
30 JUNE 2008
REVIEWED AUDITED
12 months 12 months
ended ended
30/06/2008 30/06/2007
N$`000 N$`000
ASSETS
Non-current assets 99,690 59,180
Property, plant and equipment 24,965 19,305
Intangible assets 33,476 25,111
Deferred tax 10,404 9,044
Investments in equity accounted investees 30,845 5,720
Current assets 445,243 333,014
Inventories 123,930 88,644
Trade and other receivables 251,788 166,587
Loan to equity accounted investees 3,157 2,000
Taxation 1,426 2,383
Cash and cash equivalents 64,942 73,400
Total assets 544,933 392,194
EQUITY AND LIABILITIES
Capital and reserves attributable to
equity holders 192,837 139,754
Issued capital 129,606 83,542
Reserves 63,231 56,212
Minority interest 4,530 6,522
Total equity 197,367 146,276
Non-current liabilities 30,031 26,741
Interest-bearing borrowings 15,668 14,234
Deferred tax 451 349
Deferred operating lease liabilities 13,912 12,158
Current liabilities 317,535 219,177
Current portion of interest-bearing borrowings 7,217 5,053
Current portion of deferred operating lease
liabilities 189 633
Accounts payable and accrued liabilities 274,936 202,160
Subsidiary purchase consideration payable 23,244 -
Taxation 8,060 5,151
Bank overdraft 3,889 6,180
Total equity and liabilities 544,933 392,194
Net asset value per share (cents) 76.5 69.1
Net tangible asset value per share 63.2 56.7
CONDENSED GROUP CASH FLOW STATEMENTS
30 JUNE 2008
REVIEWED AUDITED
12 months 12 months
ended ended
30/06/2008 30/06/2007
N$`000 N$`000
Cash generated by operations 56,959 41,387
Change in working capital (47,420) (12,710)
Net finance and investment income/(expense) 661 (145)
Dividends paid (15,708) (4,263)
Taxation paid (12,044) (9,793)
Cash-flow from operations (17,552) 14,476
Investment to maintain operations: (10,670) (8,307)
- Additions to intangible asset (264) (2,774)
- Additions to property, plant and equipment (11,226) (7,508)
- Proceeds on disposal of property, plant and
equipment 820 1,975
Investments in associate companies (3,656) (7,720)
Investment in subsidiary (25,195) (9,706)
Cash flow from investing activities (39,521) (25,733)
Proceeds from issue of shares capital 47,308 -
Net movement in borrowings 3,598 (235)
Cash flows from financing activities 50,906 (235)
Net movement in cash and cash equivalents (6,167) (11,492)
Cash and cash equivalents at beginning of period 67,220 78,712
Cash and cash equivalents at end of period 61,053 67,220
Basis of preparation and accounting policies
The financial information has been prepared in accordance with International
Financial Reporting Standards (IFRS). The accounting policies and critical
accounting estimates applied to these financial statements are consistent, in
all material respects, with those used in the Annual Financial Statements for
the year ended 29 February 2008.
Independent review
The company`s auditors, Grant Thornton Neuhaus, has reviewed the financial
statements for the 12 months ended 30 June 2008. Their unqualified reviewed
report is available for inspection at the registered office of the Company.
Registered office
Corner of Iscor and Solingen Streets
Northern Industrial Area, Windhoek
(PO Box 98, Windhoek, Namibia)
Registered as an external company in the Republic of South Africa
Tuscany Office Park, Block 5
Coombe Place
Rivonia
(PO Box 3581, Rivonia, 2128)
Tel: 011 8070109
Fax: 011 8071316
Transfer Secretaries
Computershare Investor Services (Pty) Limited
70 Marshall Street, Johannesburg, 2001
(PO Box 61051, Marshalltown, 2107)
Designated adviser
Questco Sponsor (Pty) Limited
Corporate adviser
PSG Capital (Pty) Limited
Directorate
BH Kent (Chairman)*, TP Rogers (Chief Executive Officer), EHT Angula*#,
FW Britz, H-B Gerdes *#, JA Holtzhausen*, P Malan*
* - Non-executive, # - Namibian Citizen
Company Secretary
JFB Smit
Business address
Tuscany Office Park, Block 5
Coombe Place, Rivonia
Date: 09/09/2008 10:54:25 Produced by the JSE SENS Department.
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