| Wed 26 Nov 2008, 17:01 | | CKS - Crookes Brothers Limited - Unaudited interim results for the six months |
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CKS
CKS
CKS - Crookes Brothers Limited - Unaudited interim results for the six months
ended 30 September 2008
CROOKES BROTHERS LIMITED
Incorporated in the Republic of South Africa
Registration No. 1913/000290/06
Share code: CKS ISIN: ZAE000001434
("the company" or "the group")
UNAUDITED INTERIM RESULTS
for the six months ended 30 September 2008
ABRIDGED GROUP INCOME STATEMENT
Unaudited Audited
Six months ended Year ended
30 September 30 September 31 March
(R000`s) 2008 2007 2008
Revenue 179 944 148 882 246 879
Operating profit 42 619 34 326 61 294
Share of profit of associate
company - - 4
Investment income 304 303 772
Finance costs (3 829) (2 139) (3 268)
Profit before taxation 39 094 32 490 58 802
Taxation (12 287) (9874) (16 870)
Profit after taxation 26 807 22616 41 932
Earnings per share (basic)
(cents) 216,5 182,8 338,8
Earnings per share (diluted)
(cents) 216,3 182,6 338,4
Dividends declared per share
(cents) 45,0 40,0 140,0
HEADLINE EARNINGS Unaudited Audited
Six months ended Year ended
30 September 30 September 31 March
(R000`s) 2008 2007 2008
Profit after taxation 26 807 22 616 41 932
Capital profit on disposal of
land and buildings - - (3 854)
Loss/(profit) on disposal of
property, plant and equipment 57 (3 632) (669
Tax effect on disposal of
property, plant and equipment (16) 430 346
Headline earnings 26 848 19 414 37 755
Headline earnings per share (cents) 216,8 156,9 305,1
Headline earnings per share
(diluted) (cents) 216,6 156,7 304,7
ABRIDGED STATEMENT OF CHANGES IN EQUITY
Unaudited Audited
Six months ended Year ended
30 September 30 September 31 March
(R000`s) 2008 2007 2008
Shareholders` equity at
beginning of period 288 354 257 298 257 298
Issue of share capital 34 413 413
Share-based payment reserve movement 46 29 58
Investments revaluation reserve
movement (33) 3 903 4 131
Changes in retained earnings 14 422 12 091 26 454
Net profit attributable to
shareholders 26 807 22 616 41 932
Ordinary dividends paid (12 385) (10 525) (15 478)
Shareholders` equity at end of
period 302 823 273 734 288 354
ABRIDGED GROUP BALANCE SHEET
Unaudited Audited
30 September 30 September 31 March
(R000`s) 2008 2007 2008
ASSETS
Non-current assets 324 178 277 588 274 002
Property, plant and equipment 211 171 190 053 186 175
Bearer biological assets 102 314 79 183 77 526
Unlisted investments 4 869 4 234 4 503
Interest in associate companies 5 115 3 463 5 115
Other non-current assets 709 655 683
Current assets 161 135 112 654 127 483
Inventories 20 979 10 686 15 952
Biological assets - crops and
livestock 82 893 68 898 96 538
Trade and other receivables 50 686 33 050 14 869
Cash and cash equivalents 12 20 124
Assets classified as held-for-sale 6 565 - -
Total assets 485 313 390 242 401 485
EQUITY AND LIABILITIES
Ordinary shareholders` funds 302 823 273 734 288 354
Share capital and premium 9 401 9 367 9 367
Retained earnings 289 162 260 377 274 740
Investments revaluation reserve 4 098 3 903 4 131
Share-based payment reserve 162 87 116
Non-current liabilities 71 957 70 380 72 234
Deferred taxation 55 518 49 499 55 410
Long-term liabilities 2 555 2 643 2 800
Post-employment obligations 13 884 18 238 14 024
Current liabilities 110 533 46 128 40 897
Trade and other payables 36 467 32 379 15 354
Current portion of long-term
liabilities 474 808 447
Interest-bearing debt - short-term 73 592 12 941 25 096
Total equity and liabilities 485 313 390 242 401 485
ABRIDGED GROUP CASH FLOW STATEMENT
Unaudited Audited
Six months ended Year ended
30 September 30 September 31 March
(R000`s) 2008 2007 2008
Operating profit 42 619 34 326 61 294
Loss/(profit) on disposal of
property, plant and equipment 57 (3 632) (4 523)
Non-cash items 7 106 17 548 (1 537)
Cash generated by operations
before working capital 49 782 48 242 55 234
Net outflow from changes in
working capital (26 247) (12 080) (8 958)
Finance costs (3 29) (2 139) (3 268)
Taxation paid (5 57) (4 384) (12 738)
Cash flows from operating
activities 14 049 29 639 30 270
Net investment activities
Acquisition of deciduous
fruit farms (42 243) (13 577) (13 577)
Other net investment activities (7 845) (6 752) (14 277)
Net cash inflow before
financing activities (36 039) 9 310 2 416
Net cash used in financing
activities 35 927 (9 378) (2 380)
Dividends paid (12 385) (10 525) (15 478)
Proceeds from issue of shares 34 413 413
Net increase/(decrease) in
short-term borrowings 48 523 (1 909) 9 885
Net (decrease)/increase in
long-term liabilities (245) 2 643 2 800
Net (decrease)/increase in cash
and cash equivalents (112) (68) 36
Cash and cash equivalents at
beginning of period 124 88 88
Cash and cash equivalents at
end of period 12 20 124
SUPPLEMENTARY INFORMATION
Unaudited Audited
30 September 30 September 31 March
(R000`s) 2008 2007 2008
Depreciation 6 129 5 596 11 570
Capital expenditure
Incurred - Acquisition of
deciduous fruit farms 30 808 10 520 10 520
- Other 7 817 14 050 16 860
Capital commitments 38 625 24 570 27 380
- Contracted 783 989 5 268
- Authorised but not contracted 2 100 867 4 555
2 883 1 856 9 823
Contingent liabilities 515 463 497
Net asset value per share 2 445 2 211 2 329
Ordinary number of shares in
issue 12 385 000 12 382 000 12 382 000
Weighted average number of
shares in issue 12 384 000 12 370 111 12 376 056
Fully diluted number of shares 12 395 109 12 388 406 12 390 818
GROUP SEGMENTAL ANALYSIS
Unaudited Audited
Six months ended Year ended
30 September 30 September 31 March
(R000`s) 2008 2007 2008
Revenue
Sugar cane 114 200 101 302 142 436
Bananas 22 530 18 328 44 978
Deciduous fruit 19 508 7 261 20 752
Grain and sheep 1 601 3 150 18 070
Citrus 17 662 15 003 14 692
Crocodile farming/tourism 2 984 2 166 3 526
Cattle 550 1 053 1 181
Other operations 909 619 1 244
Operating profit 179 944 148 882 246 879
Sugar cane 36 479 31 058 44 578
Bananas 2 391 (129) 6 944
Deciduous fruit 4 031 2 345 11 762
Grain and sheep 4 468 3 497 7 962
Citrus 3 636 1 596 2 232
Crocodile farming/tourism 185 124 1 575
Cattle 156 507 769
Other operations 383 190 865
(Loss)/profit on disposal of
property,) plant and equipment (57) 3 632 4 523
Group administration (9 053) (8 494) (19 916)
42 619 34 326 61 294
ACCOUNTING POLICIES
The unaudited interim results of the group have been prepared in accordance
with IAS 34 - Interim Financial Reporting. The group`s accounting policies
comply with International Financial Reporting Standards ("IFRS") and the
financial information has been prepared on the historical cost basis except for
the revaluation of available-for-sale financial assets and the valuation of
biological assets and share-based payments at fair value. The principal
accounting policies are consistent with those of the previous year. The group
has adopted all standards and interpretations that are effective for the year
ending 31 March 2009.
Assets classified as held-for-sale
As announced on 2 July 2008, the group has sold its Doornkop farms for R48,9
million (excluding all movable farming assets) to the National Department of
Land Affairs. The effective date of disposal will be the date of registration
of transfer of the properties and this is expected during December 2008.
The net book value of the Doornkop farms as at 30 September 2008 is as follows:
Property, plant and equipment R6,565 million
Value of bearer biological assets R6,181 million
Value of biological assets - crops R6,321 million
Liabilities transferred with assets classified as held-for-sale Nil
IFRS 5 requires that biological assets (measured in terms of IAS 41 -
Agriculture) should not be classified as assets held-for-sale.
COMMENTS ON THE RESULTS
The seasonal nature of the group`s farming operations makes comparison of the
interim figures extremely difficult. As stated in the Trading Statement issued
on 13 November 2008, the increase in interim earnings is mainly due to improved
contributions from:
Sugar cane - improved RV sucrose price, partially offset by significant
increases in farming input costs.
Bananas - increased revenue and contribution due to improved volumes,
marginally reduced by lower local prices.
Deciduous - improved revenue and profit due to an increase in volumes as a
result of recent acquisitions and higher export prices. These results include
for the first time the contribution from the Vyeboom farm purchased with effect
from 1 May 2008.
Citrus - higher export prices partially offset by lower export volumes.
Capital transactions - the abovementioned results exclude the capital profit on
the sale of the company`s Doornkop farms to the National Department of Land
Affairs. A pre-tax capital profit of R29,8 million is expected to be realised
from the transaction. As announced on 2 July 2008, the company purchased the
Vyeboom deciduous fruit farm for R42,2 million. The purchase price was
apportioned as follows: Property, plant and equipment R30,8 million,
Biological assets R11,0 million and Unlisted investments R0,4 million.
PROSPECTS
The company is awaiting final approval from the Land Claims Commission for the
sale of its Komatipoort farms in terms of the Government`s land restitution
process.
The company is continuing to evaluate the possible development of 4 000
hectares of sugar cane in the SADC region and the feasibility of alternative
use of its Renishaw estate.
With currently indicated crop prices our full year headline earnings are now
expected to exceed those of last year.
FURTHER CAUTIONARY ANNOUNCEMENT
Further to the cautionary announcements previously published, the last of which
was dated 1 October 2008, shareholders are advised that negotiations referred
to therein are still in progress. If these negotiations are successfully
concluded they may have a material effect on the trading price of the company`s
securities.
Accordingly, shareholders are advised to continue exercising caution when
dealing in the company`s securities until a further announcement is made.
RETIREMENT FROM THE BOARD AND APPOINTMENT OF NEW CHAIRMAN
Shareholders are advised that Fred Palmer will be retiring as both chairman and
as a non-executive director of the company on 30 November 2008. He is thanked
for his valuable contribution to the company over the past 28 years, not only
as a board member, but also as chairman of the board for the past 10 years. His
strong leadership and wise counsel will be sorely missed.
The company is pleased to announce that Guy Wayne will be appointed as chairman
of the board on 1 December 2008.
INTERIM DIVIDEND NUMBER 187
An interim dividend of 45,0 cents (2007: 40,0 cents) per share has been
declared payable to shareholders recorded in the books of the company at the
close of business on the record date, Friday, 9 January 2009.
The salient dates of the declaration and payment of this interim dividend are
as follows:
Last day to trade cum-dividend Friday, 2 January 2009
Shares commence trading ex-dividend Monday, 5 January 2009
Record date Friday, 9 January 2009
Payment date Monday, 12 January 2009
Share certificates may not be dematerialised or rematerialised between Monday,
5 January 2009 and Friday, 9 January 2009, both days inclusive.
For and on behalf of the board
JFC Palmer GS Clarke
Chairman Managing Director
Renishaw 26 November 2008
Registered office and postal address
Renishaw, KwaZulu-Natal
PO Renishaw, KwaZulu-Natal, 4181
Transfer secretaries
Computershare Investor Services (Pty) Limited
70 Marshall Street, Johannesburg, 2001
Telephone 011 370 5000
SPONSOR
Sasfin Capital
(A division of Sasfin Bank Limited)
Website
www.cbl.co.za
Directors
JFC Palmer* (Chairman), GS Clarke (Managing), P Bhengu*, CJH Chance*
AC Crookes*, DJ Crookes*, JAF Hewat *, MT Rutherford*, GP Wayne*
*Non-executive director
Secretary
B Darbyshire-Roberts
Date: 26/11/2008 17:01:01 Produced by the JSE SENS Department.
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