| Mon 29 Sep 2008, 17:40 | | SPA - Spanjaard - Abridged Unaudited Group Results For The Period Ended 31 |
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SPA
SPA
SPA - Spanjaard - Abridged Unaudited Group Results For The Period Ended 31
August 2008 and dividend declaration
Spanjaard Limited
(Incorporated in the Republic of South Africa)
Registration number 1960/004393/06
Share code: SPA
ISIN: ZAE000006938
ABRIDGED UNAUDITED GROUP RESULTS FOR THE PERIOD ENDED 31 AUGUST 2008
CONSOLIDATED INCOME STATEMENT
Six months to Twelve months to
31 August 29 February
2008 2007 2008
R`000 R`000 R`000
Revenue 46 782 41 089 84 457
Cost of sales 31 027 28 453 56 419
Gross profit 15 755 12 636 28 038
Operating expenses 11 565 10 689 21 373
Depreciation and amortisation 836 567 1 536
Profit from operations 3 354 1 380 5 129
Finance (cost)/income - net 227 483 (125)
Profit before tax 3 581 1 863 5 004
Income tax expense 1 230 538 1 656
Net profit 2 351 1 325 3 348
Number of ordinary shares in issue (`000) 8 143 6 514 8 143
Earnings per ordinary share
- basic and diluted (cents) 28,9 20,3 45,2
Dividend declared per ordinary
share (cents)
- interim 15,0 - -
- final - - 15,0*
* 5,0 cents of this 15,0 cents relates to the
final dividend declaration of the 2007
financial year but was paid during the
2008 financial year
Net asset value per share (cents) 421,6 498,9 408,9
CONSOLIDATED BALANCE SHEET
Six months to Twelve months to
31 August 29 February
2008 2007 2008
R`000 R`000 R`000
Assets
Non-current assets 20 227 20 524 18 052
Property, plant and equipment 19 279 19 913 18 052
Goodwill 437 - -
Deferred tax assets 511 611 -
Current assets 43 013 32 040 34 614
Total assets 63 240 52 564 52 666
Equity and liabilities
Shareholders` equity 34 328 32 495 33 293
Ordinary shares and premium 6 871 6 679 6 871
Reserves 27 457 25 816 26 422
Retained earnings 17 431 15 092 16 300
Foreign currency translation reserve 4 202 100
Revaluation reserve 10 022 10 522 10 022
Non-current liabilities 5 019 5 762 4 649
Borrowings 788 977 1 026
Deferred tax liabilities 4 231 4 785 3 623
Current liabilities 23 893 14 307 14 724
Interest bearing 1 688 457 202
Non-interest bearing 22 205 13 850 14 522
Total equity and liabilities 63 240 52 564 52 666
CONSOLIDATED CASH FLOW STATEMENT
Six months to Twelve months to
31 August 29 February
2008 2007 2008
R`000 R`000 R`000
Cash flows from operating activities (160) (3 446) 7 037
Cash flows from investing activities (2 021) (914) (1 289)
Cash flows from financing activities 1 095 5 186 4 963
Net increase/(decrease) in cash
and cash equivalents (1 086) 826 10 711
Cash and cash equivalents at
beginning of year 12 411 1 700 1 700
Cash and cash equivalents at end of period 11 325 2 526 12 411
SEGMENTAL INFORMATION
Six months to Twelve months to
31 August 29 February
2008 2007 2008
R`000 R`000 R`000
Segment sales
Lubricants 33 227 28 809 60 009
Metal powders 12 309 10 476 22 640
Other 1 246 1 804 1 808
46 782 41 089 84 457
Segment result
Lubricants 671 826 2 442
Metal powders 1 457 45 2 636
Other 1 226 509 51
3 354 1 380 51 291
SUPPLEMENTARY INFORMATION
Six months to Twelve months to
31 August 29 February
2008 2007 2008
R`000 R`000 R`000
Capital expenditure 2 065 - 1 396
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Six months to Twelve months to
31 August 29 February
2008 2007 2008
R`000 R`000 R`000
Ordinary shares 407 407 407
Share premium 6 464 6 2 72 6 464
Reserves 27 457 25 816 26 423
Retained earnings at the beginning of year 16 301 14 052 14 052
Foreign currency translation reserve 4 202 100
Net profit for the year 2 351 1 325 3 348
Revaluation reserve 10 022 10 522 10 022
Ordinary dividend (1 221) (285) (1 099)
Total shareholders` equity 34 328 32 495 33 294
RECONCILIATION OF HEADLINE EARNINGS
Six months to Twelve months to
31 August 29 February
2008 2007 2008
R`000 R`000 R`000
Net profit attributable to shareholders 2 351 1 325 3 348
Profit/(loss) on disposal of property,
plant and equipment - - (50)
Headline earnings 2 351 1 325 3 298
Weighted average number of
ordinary shares in issue (`000) 8 143 6 514 7 410
Headline earnings per ordinary share
- basic and diluted (cents) 28,9 20,3 44,5
COMMENTARY
Highlights
- Group revenue up by 14% from R41,1 million to R46,8 million for the six
month period.
- Gross profit margins up from 31% to 34% of turnover.
- Net profit margins up from 3% to 5% of turnover.
- Headline earnings have increased by 77% (headline earnings per share
increased from 20,3 to 28,9 cents per share (42,4%) based on an increase in the
weighted number of shares in issue from 6,514 million to 8,143 million shares)
Chairman`s statement
The results how the continued efforts by the company to remain focused on
improved operating efficiency, product profitability and improved working
capital management, borne out by the fact that Group turnover is up 14% whilst
headline earnings are up 77% over the same period.
Our management team remain positive in their outlook despite the current
unstable economic environment.
The company is optimistic regarding organic growth from the signing of new
contracts and the continued acquisition possibilities.
Basis of preparation
The condensed consolidated interim financial statements have been prepared in
accordance with IAS 34 Interim Financial Reporting and in compliance with the
South African Companies Act, 1973. The condensed consolidated interim financial
statements are prepared on the historical cost basis, with the exception of
certain financial instruments which are measured at fair value. The results of
the interim period are not necessarily indicative of the results for the entire
year, and these unaudited financial statements should be read in conjunction
with the audited financial statements for the year ended 29 February 2008.
The preparation of condensed consolidated interim financial statements requires
the use of estimates and assumptions that affect the reported amounts of assets
and liabilities and disclosure of contingent assets and liabilities at the date
of the condensed consolidated interim financial statements and the reported
amounts of revenue and expenses during the reporting periods. Although these
estimates are based on management`s best knowledge of current events and
actions that the Group may undertake in the future, actual results may differ
from those estimates.
Acquisition of Spanjaard EU BV
On 1 March 2008 Spanjaard EU BV ("BV"), a company incorporated in The
Netherlands, was acquired as a wholly owned subsidiary of Spanjaard Limited.
The purchase price resulted in goodwill to the value of R437 000 being
recognised.
Management is of the opinion that the carrying amounts approximated
the fair value of the assets and liabilities of BV purchased at acquisition.
There were no contingent liabilities at that date.
The profit from operations recognised in this subsidiary during the period,
amounting to R382 378, has been included under lubricants in the segmental
analysis.
Segmental analysis
Consolidated revenue is up by 14% to R46,8 million for the six month period.
The metal powders division has performed substantially better than the
comparable period last year. This is mainly due to an increase in profitable
trading activities and a focus on contracts with higher gross margin value.
Results of division "other" are attributed to performance of various other
trading activities. The decrease in EBIT from the lubricants sector is mainly
due to an increase in provisions.
Dividend
Notice is hereby given that the Board of Directors has declared dividend No. 16
(first ever interim dividend) of 15 cents per ordinary share. The last day to
trade cum dividend is Friday, 17 October 2008, payable to all shareholders of
Spanjaard Limited recorded in the books of the company at the close of business
on Friday, 24 October 2008. Shares will commence trading ex dividend from
Monday, 20 October 2008. The dividend is payable on Friday, 27 October 2008.
Share certificates may not be dematerialised or rematerialised between Monday,
20 October 2008 and Friday, 24 October 2008, both days inclusive.
By order of the Board
ML Bond - Company Secretary
29 September 2008
Directors: RJW Spanjaard (Executive Chairman), ARJ Spanjaard (Managing
Director), MA Barnes*, GF Cort, CA Gordon-Bennett, BL Montgomery*,
Dr DP van der Nest* *Non-executive
Registered Office: 748 - 750 Fifth Street, Wynberg, Sandton, 2090
Sponsor
Arcay Moela Sponsors (Proprietary) Limited
(Registration number 2006/033725/07)
Transfer Secretaries: Computershare Investor Services (Pty) Limited,
70 Marshall Street, Johannesburg, 2001
E-mail: info@spanjaardltd.com
Website: www.spanjaardltd.com
Date: 29/09/2008 17:40:54 Produced by the JSE SENS Department.
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