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CRG - Cargo Carriers - Unaudited Results for the Six Months Ended 31 August 2008
and Dividend declaration
Cargo Carriers Limited
(Registration number: 1959/003254/06)
(Incorporated in the Republic of South Africa)
JSE Share code: CRG ISIN Code: ZAE000001764
("Cargo Carriers" or " the group ")
Unaudited Results for the Six Months Ended 31 August 2008 and Dividend
Announcement
CONSOLIDATED INCOME STATEMENTS
Unaudited Unaudited Audited
6 months 6 months year
ended ended ended
31/08/2008 31/08/2007 29/02/2008
R'000 R'000 R'000
Revenue 263 457 229 178 419 587
Other revenue 2 764 2 780 5 507
Interest income 3 296 3 634 4 366
Operating and (231 577) (196 149) (373 353)
administration costs
Depreciation (12 719) (14 189) (23 628)
(Loss)/Profit on disposal (108) (225) 380
of assets
Loss on disposal of - (1 282) (1 282)
investment in subsidiary
Adjustments to fair value - - 38 953
of assets
Impairment of Zimbabwe - (4 624) (6 364)
operations
Income from associates and 1 575 754 1 558
joint venture
Profit from operating 26 688 19 877 65 724
activities
Finance costs (12 095) (7 843) (15 413)
Profit before taxation 14 593 12 034 50 311
Taxation (3 934) (3 390) (9 510)
Profit of the group for 10 659 8 644 40 801
the year
Attributable to:
Equity holders of the 10 659 7 659 40 032
parent
Minority interests - 985 769
Profit for the year 10 659 8 644 40 801
FINANCIAL INFORMATION
Unaudited Unaudited Audited
6 months 6 months year
ended ended ended
31/08/2008 31/08/2007 29/02/2008
R'000 R'000 R'000
Dividend per share (cents)
- paid during the period 9.0 9.0 9.5
- declared after period 9.5 9.5 9.0
end
Total dividends 18.5 18.5 18.5
Earnings per share 54.9 39.5 206.3
(cents)
Adjustments:
- Loss/(Profit) on sale of 0.4 0.8 (1.4)
tangible assets
- Loss on disposal of
investment in 0.0 4.7 4.7
subsidiary
- Impairment of Zimbabwe 0.0 18.5 32.8
operations
- Write up of investment
property to fair 0.0 0.0 (172.7)
value
Headline earnings per 55.3 63.5 69.7
share (cents)
Borrowings
Capacity utilised (%) 90.5% 68.5% 58.7%
Total net borrowing 146 547 120 921 141 959
capacity (R'000)
Capital commitments 21 945 9 080 12 221
(R'000)
Net asset value per share 1 510 1 246 1 463
(cents)
Ordinary shares in issue
(closing and weighted 19 406 19 406 19 406
average) (`000)
SEGMENTAL ANALYSIS
Turnover
Industrial 164 939 133 760 261 062
Agricultural 74 583 77 663 124 994
Consumer 4 775 10 535 9 481
Aviation 5 613 1 425 2 988
Supply chain services 14 270 6 475 22 453
Property 2 041 2 100 4 116
266 221 231 958 425 094
Profit from operating
activities
Industrial 22 164 16 963 39 086
Agricultural 3 430 4 684 (7 855)
Consumer 409 348 (217)
Aviation 2 456 (164) 75
Supply chain services (2 266) (2 385) (4 318)
Property 495 431 38 953
26 688 19 877 65 724
CONSOLIDATED BALANCE SHEETS
Unaudited Unaudited Audited
6 months 6 months year
ended ended Ended
31/08/2008 31/08/2007 29/02/20
R'000 R'000 08
R'000
Non-current assets
Tangible assets 324 639 251 873 283 093
Deferred taxation 1 901 2 108 2 008
Investments in associates 6 823 7 027 7 736
Investment in joint venture 10 645 9 290 10 533
Current assets 248 842 114 331 100 349
Inventories 6 416 5 951 6 742
Trade and other receivables 132 103 91 665 70 888
Letting enterprise 95 000 - -
receivable
Taxation 6 291 4 531 7 770
Cash and cash equivalents 9 032 12 184 14 949
Asset held for sale - 62 848 95 000
592 850 447 477 498 719
Equity
Ordinary shareholders' 293 095 241 842 283 919
interest
Non-current liabilities
Deferred taxation 54 862 40 980 54 008
Interest-bearing long-term 118 770 81 617 70,966
loans
Current liabilities
Trade and other payables 103 287 69 619 62 535
Taxation - - -
Short term portion of
interest-bearing loans 22 836 13 419 27 291
592 850 447 477 498 719
CONSOLIDATED CASH FLOW STATEMENT
Operating profit after non-
cash flow items 36 701 35 558 51 173
Increase in working capital (21 878) (40 904) (26 654)
Cash generated/(utilised) 14 823 (5 346) 24 519
by operations
Interest received 3 296 3 634 4 366
Finance costs paid (12 095) (7 843) (15 413)
Dividends paid (1 746) (1 746) (3,590)
Taxation paid (1 401) (7 785) (9,607)
Cash inflow from operating 2 877 (19 086) 275
activities
Net cash inflow from 43 344 10 245 19 650
financing activities
Net cash flow from (52 138) (30 666) (56 667)
investing activities
- Disposal of investment - 917 48
in subsidiary
- Investment in associate - - (1 560)
- Decrease/(Increase) in
loan to joint venture and 2 038 (139) (167)
associates
- Replacement of tangible (56 305) (32 313) (57 602)
assets
- Proceeds on sale of 2 129 869 2 614
tangible assets
Cash utilised during period (5 917) (39 507) (36 742)
Net cash at beginning of 14 949 51 691 51 691
period
Net cash at end of period 9 032 12 184 14 949
MOVEMENT IN EQUITY
Unaudited Unaudited Audited
6 months 6 months year
ended ended Ended
31/08/2008 31/08/2007 29/02/20
R'000 R'000 08
R'000
Opening Equity 283 919 235 773 235 773
Revaluation of tangible - - 15 474
assets
Transferred to deferred - - (4 487)
taxation
Foreign currency 263 156 717
translation reserve
Net profit for the period 10 659 7 659 40 032
Dividends paid during the (1 746) (1 746) (3 590)
year
293 095 241 842 283 919
Review
Revenue for the period has increased by 15.0% and profit from operating
activities has increased by 34.3%. Finance costs have increased substantially
in line with capital expenditure and interest rate increases within the
reporting period. Depreciation has, however, decreased in comparison to the
reporting period last year as a result of an associate being partially
consolidated in the prior year.
Consistent with our assessment at year end 29 February 2008, the Zimbabwe
operations have not been consolidated into these results, due to their
immateriality in relation to the group. No further asset impairments have
materialised during this interim period and the group's investment in Zimbabwe
has been fully written off.
Earnings per share have increased by 39%, however, headline earnings per share
have decreased by 12.9% in comparison to the prior year. The primary
contributors to the decrease in headline earnings is the increased finance and
fuel costs incurred during the current reporting period as well as the partial
inclusion of the Zimbabwe operations operating profit, after impairment of its
assets, in the prior year.
Prospects
The growth in volumes in the industrial segment have slowed as a result of the
large increase in input costs, but continuing infrastructure expenditure will
result in stable results. The company's operations in the agricultural segment
have been negatively affected by industrial action, plant unreliability and
unfavorable weather patterns. There is an intense focus on resolving these
factors, where possible, but an improvement in the results of this segment is
not anticipated.
Interest rate increases will affect results but the associated risk is well
controlled through the company's prudent gearing policy.
Accounting Policies
The financial results for the half-year ended 31 August 2008 have been prepared
in accordance with IAS 34, International Financial Reporting Standards (IFRS),
the requirements of the South African Companies Act, Act 61 of 1973, and the
Listing Requirements of the JSE Limited. These results have not been audited
nor have they been reviewed by the group's auditors, Ernst & Young Inc.
Dividend Declaration
An interim dividend (no. 35) of 9.5 (2007: 9.5) cents per share has been
declared to shareholders recorded in the books of the company at the close of
business on Friday, 12 December 2008. The last date to trade cum dividend will
be Friday, 5 December 2008 and the shares will trade ex dividend from the
commencement of business on Monday, 8 December 2008. The dividend will be paid
on Monday, 15 December 2008. Share certificates may not be dematerialised /
rematerialised between Monday, 8 December 2008 and Friday, 12 December 2008,
both days inclusive.
Events after the balance sheet date
On the 12 September 2008, the letting enterprise receivable of R95 million was
received in cash. This receipt will be used to reduce borrowings, for new
capital acquisitions and as approved by the board of directors.
By order of the board
MJ Bolton
Company Secretary
30 October 2008
Registered Office
140 North Reef Road, Elandsfontein, 1406
Directors
SG Chilvers* (Chairman), GD Bolton, MJ Bolton, AE Franklin*, BB
Fraser*, SP Mzimela*, V Raseroka*, MJ Vuso*
(* Non-executive)
Transfer Secretaries Sponsor
Computershare Investor Arcay Moela Sponsors (Pty) Ltd
Services (Pty) Ltd
70 Marshall Street Website
Johannesburg, 2001
(PO Box 61051, Marshalltown,
2107)
www.cargocarriers.co.za
