| Tue 25 Nov 2008, 15:30 | | CSP - Chemical Specialities - Interim Results For The Six Months Ended |
|
CSP
CSP
CSP - Chemical Specialities - Interim Results For The Six Months Ended
30 September 2008
CHEMICAL SPECIALITIES LIMITED
Country of incorporation and domicile: South Africa
Registration number: 2005/039947/06
Share code: CSP
ISIN: ZAE000109427
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2008
- 17% revenue growth
- 61% global growth
- 63% operating profit growth
- 150% HEPS growth
- 210% EPS growth
- R31,4 million operating cash flow
COMMENTARY
Overview
ChemSpec has shown great results with an increase in operating profit of 63%,
notwithstanding the difficult trading conditions currently being experienced by
business across the globe. The group continues to take advantage of its
distribution network to grow its international business. The group has
benefited from a strong focus on cash generation and working capital management
which reflects in positive operating cash flows of R31,4 million and total cash
movements of R17,9 million achieved during the first half of the year. At the
same time the group continues to invest in people, capacity and technology with
special focus at the moment on the move of the group`s plant to Canelands.
Financial performance
Group revenue of R322,5 million has increased 17% when compared with the
comparative period. Management is pleased to report that, against a background
of significant upward pressure on input costs over the period, continued focus
on key product costs and a strict adherence to margins has helped maintain
profit margins at 41% when compared with the comparative period and improved by
1% when compared with the full year results to March 2008.
Operating expenses grew by 26% versus the comparative period. There are certain
once-off expenses included in operating expenses that relate to the move to the
group`s new Canelands premises as well as costs that are still being incurred
as a result of the fire at the Phoenix plant (refer note 3). The business has
also been adversely affected by the increases in the cost of fuel which have
increased distribution and selling costs significantly. Management continues to
apply strict fiscal discipline and has implemented further monitoring and
approval processes to manage and mitigate operating expenses.
Other income includes fair value adjustments on the investment property portion
of the Canelands property as well as the release of deferred income raised on
the original purchase and operating lease back of a portion of the Canelands
property to Dow AgroSciences Southern Africa (Pty) Limited.
This has contributed to the 63% growth in operating profit to R41,3 million and
the increase in the group`s operating profit margins which improved from 9% in
the comparative period to 13% in the current period.
The proceeds from the listing in November 2007 were used to settle long-term,
high interest-bearing debt. This has favorably impacted the financing costs,
which reduced by 25% to R13,8 million when compared with the comparative
period.
ChemSpec`s headline earnings increased by 150% to R17,4 million when compared
with the comparative period. This translates to 5,75 cents per share from 3,48
cents.
The group`s basic earnings increased by 210% to R27,3 million from R8,8 million
in the comparative period. The group`s basic earnings per share increased to
9,05 cents per share from 4,41 cents in the comparative period.
Trading performance
Revenue continues to be driven by growth in our automotive refinish segment,
which grew 28% when compared with the comparative period. This segment
continues to be the major contributor to our profit line, making up 43% of our
turnover and 51% of profit. Decorative performance was solid, achieving growth
of 15% when compared with the comparative period. This segment continues to
match its contribution to turnover with profit. The Industrial, Woodfinish and
Solvent segment of the business continues to be the "bread and butter" line
delivering 10% growth and contributing 27% to profit for the interim period.
Trading results show the impact of the group`s strategy to expand its product
offering into the global market and to grow its international presence, with
revenue from external international customers continuing to grow by 61% when
compared with the comparative period.
The business continues to expand internationally and the long lead times from
manufacture through to supply into the export countries and the subsequent
collection of the receivable, are being actively managed.
Canelands
During September, the directors resolved to dispose of the Canelands facility
on the basis of a sale and operating leaseback to realise the value embedded in
the property. The sale will enable the repayment of certain long-term,
medium-term and short-term debt. The proceeds from the sale of the property
will significantly reduce the gearing in the business and will improve cash
flows. This process is well underway and prospective buyers are presently in
negotiations with management. Further announcements will be made in due course
in this regard.
The group will continue with its plans to relocate all four of its
manufacturing facilities to the new Canelands facility over the next three
months. Certain costs have already been incurred in this regard and further
details are set out below. Management expects to achieve significant cost
savings and efficiencies once the plant is fully operational which is expected
to be completed by the end of March 2009.
Prospects
Whilst the global trading environment continues to go through a period of great
difficulty and uncertainty, the focus of our business remains on growing our
international automotive refinish market. Our dynamic brands in this sector
deliver comparable quality and ease-of-use when measured against the leading
brands in this category. Our excellent product quality, coupled with our
outstanding pricing model which is approximately 50% lower than our
international competitors, means that we are becoming an irresistible choice
for the newly created value-conscious international market.
New research shows that the market has moved from big brand, high cost products
to value brands that offer high quality at a fair price, as can be seen by the
substantial growth in our international markets. Our board will, of course, be
monitoring the granting of credit in these difficult times by instituting
credit checks on our customers and their bank.
A vigilant eye on margins and minimisation of operating costs will continue in
earnest and we expect further improvement in efficiencies from our new
Canelands plant. Continued investment in technology and the development of our
products is a priority along with effective brand management.
Directors
Ivan Clark was appointed to the Board on 22 July 2008 and resigned with effect
from 27 October 2008 for personal reasons.
Dividend
In view of the fact that the group only listed in November and the board`s
strategy to retain capital for investment in global business growth, no
dividend has been declared for this interim period. The board is, however,
committed to adopt its dividend policy and target dividend cover of
approximately three times subject to meeting its capital management objectives.
Appreciation
The directors would like to thank the management and staff of the group for
their hard work and dedication during the period, as well as shareholders,
customers and suppliers for their continued invaluable support.
SM Wood JG Maehler
Chief Executive Officer Chief Financial Officer
25 November 2008
CONDENSED CONSOLIDATED INCOME STATEMENTS
Unaudited
Six months
ended
30 September
Figures in Rand Notes 2008
Revenue 322 533 800
Cost of sales (189 072 538)
Gross profit 133 461 262
Other income 2 22 495 053
Operating expenses 3 (114 618 084)
Operating profit 41 338 231
Investment revenue 3 260 723
Finance costs (13 855 047)
Profit before taxation 30 743 907
Taxation (3 500 424)
Profit for the period 27 243 483
Attributable to:
Equity holders of the parent 27 324 646
Minority interest (81 163)
27 243 483
Basic and diluted earnings per share (cents) 4 9,05
Notes to the income statement
Basic and diluted headline earnings per
share (cents) 4 5,75
Unaudited
Six months
ended Audited
30 September 31 March
Figures in Rand 2007 2008
Revenue 275 736 352 580 239 447
Cost of sales (163 229 264) (346 836 126)
Gross profit 112 507 088 233 403 321
Other income 3 771 042 17 139 386
Operating expenses (90 961 543) (197 972 427)
Operating profit 25 316 587 52 570 280
Investment revenue 3 844 156 4 414 318
Finance costs (18 381 932) (29 302 019)
Profit before taxation 10 778 811 27 682 579
Taxation (1 602 106) (3 890 144)
Profit for the period 9 176 705 23 792 435
Attributable to:
Equity holders of the parent 8 828 550 24 041 841
Minority interest 348 155 (249 406)
9 176 705 23 792 435
Basic and diluted earnings per share (cents) 4,41 10,01
Notes to the income statement
Basic and diluted headline earnings per
share (cents) 3,48 9,25
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Unaudited Unaudited
Six months Six months
ended ended Audited
30 September 30 September 31 March
Figures in Rand 2008 2007 2008
Profit for the period 27 243 483 9 176 705 23 792 435
Other comprehensive income (2 373 217) (885 282) 2 232 087
Exchange differences on
translating foreign operations (2 373 217) (885 282) 2 232 087
Income tax relating to
comprehensive income - - -
Total comprehensive income for
the year 24 870 266 8 291 423 26 024 522
Total comprehensive income
attributable to:
Equity holders of the parent 25 733 906 8 040 914 26 066 977
Minority interest (863 640) 250 509 (42 455)
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
Share capital/ (Accumulated loss)
Figures in Rand Notes Share premium Retained income
Balance at 1 April 2007 1 000 (4 315 116)
Acquisition of subsidiaries 5 - -
Total comprehensive income - 8 828 550
Balance at 30 September 2007 1 000 4 513 434
Issue of shares 7 109 950 500 -
Share issue expenses (6 396 911) -
Acquisition of subsidiaries 5 - (144 327)
Total comprehensive income - 15 213 291
Balance at 31 March 2008 103 554 589 19 582 398
Issue of shares 7 11 500 000 -
Share issue expenses (26 393) -
Acquisition of subsidiaries 5 - (369 045)
Total comprehensive income - 27 324 646
Balance at 30 September 2008 115 028 196 46 537 999
Foreign currency
translation
Figures in Rand reserve (FCTR) Total
Balance at 1 April 2007 405 721 (3 908 395)
Acquisition of subsidiaries - -
Total comprehensive income (787 636) 8 040 914
Balance at 30 September 2007 (381 915) 4 132 519
Issue of shares - 109 950 500
Share issue expenses - (6 396 911)
Acquisition of subsidiaries - (144 327)
Total comprehensive income 2 812 772 18 026 063
Balance at 31 March 2008 2 430 857 125 567 844
Issue of shares - 11 500 000
Share issue expenses - (26 393)
Acquisition of subsidiaries - (369 045)
Total comprehensive income (1 590 740) 25 733 906
Balance at 30 September 2008 840 117 162 406 312
Figures in Rand Minority interest Total equity
Balance at 1 April 2007 - (3 908 395)
Acquisition of subsidiaries 3 854 999 3 854 999
Total comprehensive income 250 509 8 291 423
Balance at 30 September 2007 4 105 508 8 238 027
Issue of shares - 109 950 500
Share issue expenses - (6 396 911)
Acquisition of subsidiaries - (144 327)
Total comprehensive income (292 964) 17 733 099
Balance at 31 March 2008 3 812 544 129 380 388
Issue of shares - 11 500 000
Share issue expenses - (26 393)
Acquisition of subsidiaries (544 750) (913 795)
Total comprehensive income (863 640) 24 870 266
Balance at 30 September 2008 2 404 154 164 810 466
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
Unaudited
Six months
ended
30 September
Figures in Rand Notes 2008
Assets
Non-current assets
Property, plant and equipment 78 344 531
Intangible assets 11 041 951
Goodwill 22 454 065
Other financial assets 1 310 746
Deferred tax -
113 151 293
Current assets
Inventories 141 441 061
Other financial assets 5 098 900
Trade and other receivables 135 964 521
Cash and cash equivalents 8 527 505
291 031 987
Non-current assets held for sale 6 119 979 530
Total assets 524 162 810
Equity and liabilities
Equity
Share capital 7 1 550
Share premium 7 115 026 646
Reserves 840 117
Retained income 46 537 999
Attributable to equity holders of the parent 162 406 312
Minority interest 2 404 154
164 810 466
Liabilities
Non-current liabilities
Shareholders` liabilities -
Other financial liabilities 15 615 772
Deferred tax 2 813 794
18 429 566
Current liabilities
Other financial liabilities 135 283 771
Trade and other payables 101 829 316
Bank overdraft 103 809 691
340 922 778
Total liabilities 359 352 344
Total equity and liabilities 524 162 810
Unaudited
Six months
ended Audited
30 September 31 March
Figures in Rand 2007 2008
Assets
Non-current assets
Property, plant and equipment 48 827 523 62 143 711
Intangible assets 3 418 283 7 861 326
Goodwill 23 501 690 22 457 038
Other financial assets 1 551 463 1 431 055
Deferred tax 2 945 476 841 196
80 244 435 94 734 326
Current assets
Inventories 132 847 241 138 330 361
Other financial assets 5 337 085 6 190 743
Trade and other receivables 145 390 437 136 869 774
Cash and cash equivalents 7 137 978 8 795 349
290 712 741 290 186 227
Non-current assets held for sale - -
Total assets 370 957 176 384 920 553
Equity and liabilities
Equity
Share capital 1 000 1 500
Share premium - 103 553 089
Reserves (381 915) 2 430 857
Retained income 4 513 434 19 582 398
Attributable to equity holders of the parent 4 132 519 125 567 844
Minority interest 4 105 508 3 812 544
8 238 027 129 380 388
Liabilities
Non-current liabilities
Shareholders` liabilities 83 848 561 -
Other financial liabilities 46 730 889 44 888 554
Deferred tax - -
130 579 450 44 888 554
Current liabilities
Other financial liabilities 7 490 785 7 148 598
Trade and other payables 104 747 076 81 457 321
Bank overdraft 119 901 838 122 045 692
232 139 699 210 651 611
Total liabilities 362 719 149 255 540 165
Total equity and liabilities 370 957 176 384 920 553
CONDENSED CONSOLIDATED CASH FLOW STATEMENTS
Unaudited
Six months
ended
30 September
Figures in Rand Note 2008
Cash flows from operating activities
Operating cash flows before movements
in working capital 20 723 532
Increase/(decrease) in working capital 21 449 867
Cash generated from/(used by) operations 42 173 399
Investment revenue 3 260 723
Finance costs (13 855 047)
Taxation (paid)/received (150 537)
Net cash from operating activities 31 428 538
Cash flows from investing activities
Purchase of property, plant and equipment (120 111 588)
Proceeds on sale/claims for property,
plant and equipment -
Acquisition of intangible assets (3 991 873)
Acquisition of businesses 5 (905 070)
Proceeds from/(purchase of) financial assets 1 212 152
Net cash from investing activities (123 796 379)
Cash flows from financing activities
Proceeds on share issue 11 473 607
Proceeds/(repayment) from other financial liabilities 98 862 391
Proceeds/(repayment) from shareholders` liabilities -
Net cash from financing activities 110 335 998
Total cash movement for the period 17 968 157
Overdraft at the beginning of the period (113 250 343)
Cash and cash equivalents at the end of the period (95 282 186)
Reconciled as follows:
Cash and cash equivalents 8 527 505
Bank overdraft (103 809 691)
Cash and cash equivalents at the end of the period (95 282 186)
Unaudited
Six months
ended Audited
30 September 31 March
Figures in Rand 2007 2008
Cash flows from operating activities
Operating cash flows before movements
in working capital 28 370 682 61 989 916
Increase/(decrease) in working capital (57 282 279) (77 341 611)
Cash generated from/(used by) operations (28 911 597) (15 351 695)
Investment revenue 3 844 156 1 147 964
Finance costs (18 381 932) (25 779 597)
Taxation (paid)/received 607 626 (1 410 672)
Net cash from operating activities (42 841 747) (41 394 000)
Cash flows from investing activities
Purchase of property, plant and equipment (18 623 985) (36 850 658)
Proceeds on sale/claims for property,
plant and equipment 22 028 406 26 060 440
Acquisition of intangible assets (2 704 867) (7 087 388)
Acquisition of businesses (9 882 872) (10 027 199)
Proceeds from/(purchase of) financial assets 519 750 (213 500)
Net cash from investing activities (8 663 568) (28 118 305)
Cash flows from financing activities
Proceeds on share issue - 103 553 589
Proceeds/(repayment) from other financial (47 420 822) (49 605 343)
liabilities
Proceeds/(repayment) from shareholders`
liabilities 2 139 070 (81 709 491)
Net cash from financing activities (45 281 752) (27 761 245)
Total cash movement for the period (96 787 067) (97 273 550)
Overdraft at the beginning of the period (15 976 793) (15 976 793)
Cash and cash equivalents at the end of the
period (112 763 860) (113 250 343)
Reconciled as follows:
Cash and cash equivalents 7 137 978 8 795 349
Bank overdraft (119 901 838) (122 045 692)
Cash and cash equivalents at the end of the
period (112 763 860) (113 250 343)
CONDENSED CONSOLIDATED SEGMENT REPORT
Unaudited
Six months
ended
30 September
Figures in Rand Note 2008
Segment revenues
Buy-ins 23 485 567
Automotive 147 601 893
Decorative 40 095 195
Industrial/Wood 97 174 822
Solvents 34 118 960
Adhesives and Oleo 4 069 030
Total of all segments 346 545 467
Eliminations of intercompany revenue (24 011 667)
Consolidated revenue 322 533 800
External customers
South Africa 229 865 069
International 92 668 731
322 533 800
Segment result
Buy-ins 887 512
Automotive 4 855 360
Decorative 1 168 114
Industrial/Wood 2 086 414
Solvents 476 871
Adhesives and Oleo 28 092
Other 2 21 241 544
Profit before taxation 30 743 907
Taxation (3 500 424)
Profit for the year 27 243 483
Segment assets
Buy-ins 35 522 786
Automotive 223 253 312
Decorative 60 645 462
Industrial/Wood 146 980 505
Solvents 51 606 185
Adhesives and Oleo 6 154 560
Total of all segments 524 162 810
Unaudited
Six months
ended Audited
30 September 31 March
Figures in Rand 2007 2008
Segment revenues
Buy-ins 34 438 413 76 985 641
Automotive 115 388 618 238 535 190
Decorative 34 918 545 68 665 980
Industrial/Wood 90 429 237 174 640 279
Solvents 28 749 012 55 390 125
Adhesives and Oleo 4 791 706 8 111 257
Total of all segments 308 715 531 622 328 472
Eliminations of intercompany revenue (32 979 179) (42 089 025)
Consolidated revenue 275 736 352 580 239 447
External customers
South Africa 218 245 274 440 774 389
International 57 491 078 139 465 058
275 736 352 580 239 447
Segment result
Buy-ins 1 119 845 3 331 806
Automotive 3 854 679 11 468 583
Decorative 970 106 2 886 295
Industrial/Wood 2 140 069 6 367 214
Solvents 444 941 1 323 804
Adhesives and Oleo 70 765 210 540
Other 2 178 406 2 094 337
Profit before taxation 10 778 811 27 682 579
Taxation (1 602 106) (3 890 144)
Profit for the year 9 176 705 23 792 435
Segment assets
Buy-ins 41 381 709 47 616 905
Automotive 138 652 681 147 537 998
Decorative 41 958 643 42 471 055
Industrial/Wood 108 661 117 108 017 929
Solvents 34 545 240 34 259 717
Adhesives and Oleo 5 757 786 5 016 949
Total of all segments 370 957 176 384 920 553
NOTES to the condensed consolidated interim financial statements
1. Basis of preparation
These condensed consolidated interim financial statements have been prepared in
accordance with IAS 34 - Interim Financial Reporting, International Financial
Reporting Standards ("IFRS"), the Companies Act of South Africa, as amended,
and the JSE Limited Listings Requirements.
The accounting policies and method of measurement, recognition and computation
applied in the preparation of the condensed consolidated interim financial
statements are consistent with those applied in the group`s most recent audited
annual financial statements for the year ended 31 March 2008 and will be
applied to the annual financial statements for the current year ended 31 March
2009. The following standards and amendments to standards, were adopted early
and in accordance with the transitional provisions:
- IFRS 8 - Operating Segments;
- IAS 1 - Presentation of Financial Statements (revised 2007); and
- IAS 23 - Borrowing Costs (revised 2007).
The results for the period are not necessarily indicative of the results for
the entire year, and these financial statements should be read in conjunction
with the audited financial statements for the year ended 31 March 2008.
The preparation of the condensed consolidated interim financial statements
requires the use of estimates and assumptions that affect the values of assets
and liabilities at the reporting date, as well as the determination 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.
The board acknowledges its responsibility for the preparation of the condensed
consolidated interim financial statements in accordance with IFRS, the
Companies Act of South Africa, as amended, and the JSE Limited Listings
Requirements.
2. Other income
Unaudited Unaudited
Six months Six months
ended ended Audited
30 September 30 September 31 March
Figures in Rand 2008 2007 2008
Other income comprises
(Loss)/profit on sale of
property, plant and equipment (4 445 818) 2 178 406 2 094 337
Gain on appreciation in
investment property 15 291 446 - -
Deferred income 10 395 916 - -
Insurance claim 1 170 356 1 353 906 10 024 097
Franchise fees 1 072 913 608 551 557 349
Foreign exchange (loss)/gain (989 760) (369 821) 4 463 603
22 495 053 3 771 042 17 139 386
The "other" amount disclosed in the "segment result" of the "condensed
consolidated segment report" includes (loss)/profit on sale of property, plant
and equipment; gain on appreciation of investment property and deferred income.
3. Operating expenses
Included in operating expenses for the six months ended 30 September 2008 are
the following once-off expenses:
- Canelands moving costs: R1 329 210; and
- Phoenix fire costs: R701 470.
NOTES to the condensed consolidated interim financial statements
4. Basic and diluted earnings and headline earnings per share
The earnings and weighted average number of ordinary shares used in the
calculation of basic and diluted earnings and headline earnings per share are
as follows:
Reconciliation of total earnings to headline earnings attributable to equity
holders of the parent
Unaudited Unaudited
Six months Six months
ended ended Audited
30 September 30 September 31 March
Figures in Rand 2008 2007 2008
Total earnings attributable
to equity holders 27 324 646 8 828 550 24 041 841
Non-headline earnings
Less profit on sale of
property (15 291 446) (2 121 120) (2 121 120)
Add/(less) loss/(profit) on
sale of plant and equipment 4 445 818 (57 286) 26 783
Total tax effect of adjustments 895 973 312 997 320 847
Total minority interest in
adjustments - - (48 807)
Headline earnings 17 374 991 6 963 141 22 219 544
Weighted average number of
ordinary shares in issue 301 945 206 200 000 000 240 163 934
5. Acquisition of businesses Unaudited Unaudited Audited
30 September 30 September 31 March
2008 2007 2008
Figures in Rand Fair value Fair value Fair value
Assets
Property, plant and equipment - 6 723 706 6 723 706
Deferred tax - 160 065 160 065
Inventories - 10 964 116 10 964 116
Trade and other receivables - 8 108 708 8 108 708
Cash - 826 486 826 486
Liabilities
Other financial liabilities - (8 644 994) (8 644 994)
Trade and other payables - (8 415 028) (8 415 028)
- 9 723 059 9 723 059
Less minority interest - (3 854 999) (3 854 999)
Goodwill on acquisition - 4 841 298 4 841 298
ChemSpec USA, Inc. 905 070 10 709 358 10 709 358
ChemSpec (Coatings) (Pty)
Limited - - 144 327
905 070 10 709 358 10 853 685
NOTES to the condensed consolidated interim financial statements
5. Acquisition of businesses continued
September 2008
On 1 April 2008 the company acquired a further 5,6% share in ChemSpec USA, Inc.
No change in control took place and the increase in equity was set off against
the increase in the cost of the investment on consolidation. An amount of R905
070 relating to the costs of this transaction was written off against equity.
No further goodwill was recorded as there was no change in control. There was
no cash outflow other than the R905 070 referred to above.
March 2008
On 10 June 2007, 60,35% of the USA company, Montana Paints Inc. (now ChemSpec
USA, Inc.), was acquired. The acquisition was paid for in cash.
On 13 November 2007 the group acquired a further 14,999% share in its
Australian subsidiary, ChemSpec (Coatings) (Pty) Limited, through a rights
issue. No change in control took place and the increase in equity was set off
against the increase in the cost of the investment on consolidation. An amount
of R144 327 relating to the costs of this transaction was written off against
equity. No further goodwill was recorded as there was no change in control.
6. Non-current assets held for sale
The directors resolved in September 2008 to dispose of the Canelands property
to realise the value of this investment and to utilise the cash generated to
reduce the level of debt in the company. The company is currently in
negotiations with prospective buyers.
Unaudited Unaudited Audited
30 September 30 September 31 March
Figures in Rands 2008 2007 2008
40 New Glasgow Road, Canelands 119 979 530 - -
Properties to be sold consist of:
40 New Glasgow Road, Canelands
- Erfs 105, 106, 108, 109 and 205 Canelands (Extension 6);
- Portion 1973 (of 1240);
- Portion 2271;
- Remainder of Portion 1999 (of 691);
- Remainder of Portion 1171 (of 1160); and
- Remainder of Portion 1199 (of 1160) of the Farm Cotton Lands Number 1575.
Registration division ET, Province of KwaZulu-Natal in total measuring
approximately 217 292 hectares.
Deferred income raised on the sale and leaseback of the property to Dow
AgroSciences Southern Africa (Pty) Limited was realised in profit and loss as a
result (refer note 2).
NOTES to the condensed consolidated interim financial statements
7 Changes in share capital and share premium
Unaudited
30 September
Notes 2008
Share capital: 1 550
September 2008: 310 000 000 ordinary shares of
R0,000005 each
March 2008: 300 000 000 ordinary shares of
R0,000005 each
September 2007: 100 000 ordinary shares of
R0,01 each
Share premium:
September 2008: 110 000 000 ordinary shares of
R1,1041 each
March 2008: 100 000 000 ordinary shares of
R1,0995 each 121 449 950
Less share issue expenses (6 423 304)
115 026 646
Reconciliation between opening balance of
issued shares and closing balance
Issued shares 1 -
Further subdivision of shares on converting to
a public company 2 -
300 000 000
Private placing 3 and 4 10 000 000
310 000 000
Unaudited Audited
30 September 31 March
2007 2008
Share capital: 1 000 1 500
September 2008: 310 000 000 ordinary shares of
R0,000005 each
March 2008: 300 000 000 ordinary shares of
R0,000005 each
September 2007: 100 000 ordinary shares of
R0,01 each
Share premium:
September 2008: 110 000 000 ordinary shares of
R1,1041 each
March 2008: 100 000 000 ordinary shares of
R1,0995 each - 109 950 000
Less share issue expenses - (6 396 911)
1 000 103 553 089
Reconciliation between opening balance of
issued shares and closing balance
Issued shares 100 000 100 000
Further subdivision of shares on converting to
a public company - 199 900 000
- 200 000 000
Private placing - 100 000 000
- 300 000 000
Notes
1. The company has issued share capital of 100 000 ordinary shares of R0,01
each.
2. The issued share capital of R1 000, comprising 100 000 ordinary par value
shares of R0,01 each, was sub-divided into 200 000 000 ordinary par value
shares of R0,000005 each.
3. On 6 November 2007, the company listed on the ALTx after a private placing
of 100 000 000 ordinary par value shares.
4. On 21 July 2008, the company issued a further 10 000 000 ordinary par value
shares of R0,000005 each after a private placing.
NOTES to the condensed consolidated interim financial statements
8. Related party transactions
There has been no significant change in related party relationships since the
previous year or significant transactions during the year other than in the
normal course of business.
9. Commitments and post-balance sheet events
Authorised capital expenditure
The group purchased land, buildings and plant and equipment from Dow
AgroSciences Southern Africa (Pty) Limited in Canelands, Durban which was
transferred during the period. The property comprises owner-occupied property
as well as investment property, a portion of which is being leased back to Dow
AgroSciences Southern Africa (Pty) Limited under an operating lease. The group
has incurred R39 455 658 on developing the property and has committed to spend
an additional R21 984 073 on further development of the above site and to
prepare it for the relocation of the group`s plant.
This committed expenditure relates to land and buildings and will be financed
by mortgage and current and medium-term loan facilities.
The group has estimated that it will incur R2 900 000 on moving the group`s
plant which is expected to be completed before the end of the financial year.
There are no other post-balance sheet events.
CORPORATE INFORMATION
CHEMICAL SPECIALITIES LIMITED
Country of incorporation and domicile: South Africa
Registration number: 2005/039947/06
Share code: CSP
ISIN: ZAE000109427
Registered office
2029 Old Mill Road, Canelands, Verulam, 4339
Postal address
PO Box 2359 Verulam, 4340
Directors
SM Wood Chief Executive Officer, BR Mackinnon Deputy Managing Director,
JG Maehler Chief Financial Officer, DJ Randles Executive Director, MC Oldham
Non-executive Director, A Moodley Non-executive Director
Contact details
Tel: +27 32 541 8600
Fax: +27 32 541 8653
Web: www.chemspecpaint.com
Transfer secretaries
Computershare Investor Services (Pty) Limited
Auditors
BDO Spencer Steward (KZN) Incorporated
Designated advisor
QuestCo Sponsors (Pty) Limited
Date: 25/11/2008 15:30:01 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
