| Wed 27 May 2009, 12:47 | | CKS - Crookes Brothers Limited - Abridged audited group results for the year |
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CKS
CKS
CKS - Crookes Brothers Limited - Abridged audited group results for the year
ended 31 march 2009, final dividend declaration and proposed capital
reduction
CROOKES BROTHERS LIMITED
Registration No. 1913/000290/06
Share code : CKS
ISIN No:
ZAE000001434
("the company" or
"the group")
ABRIDGED AUDITED GROUP RESULTS FOR
THE YEAR ENDED 31 MARCH 2009, FINAL
DIVIDEND DECLARATION AND PROPOSED
CAPITAL REDUCTION
The audited results of the group for the year ended 31 March 2009 together
with those of the previous year are set out below:
ABRIDGED GROUP INCOME STATEMENT % 31 March 31 March
(R000`s) chang 2009 2008
e
Revenue 25 307 368 246 879
Operating profit 30 74 868 57 440
Share of profit of associate companies 8 4
Investment income 2 049 772
Finance costs (9 752) (3 268)
Capital items 27 457 3 854
Profit before taxation 94 630 58 802
Taxation (22 218) (16 870)
Profit for the year 73 72 412 41 932
Attributable to:
Shareholders 72 468 41 932
Outside shareholders in subsidiary (56) -
72 412 41 932
Earnings per share (basic) (cents) 73 584,7 338,8
Earnings per share (diluted) (cents) 73 584,2 338,4
Dividends declared per share (cents) 113,0 140,0
Cash distribution by way of capital
reduction
(subject to shareholder approval)- per 50,0 -
share (cents)
Total distributions per share (cents) 16 163,0 140,0
HEADLINE EARNINGS % 31 March 31 March
(R000`s) chang 2009 2008
e
Profit for the year 72 412 41 932
Capital profit on disposal of land, (27 457) (3 854)
buildings and biological assets
Loss/(profit) on disposal of property, 32 (669)
plant and equipment
Tax effect on disposal of property, (1 037) 346
plant and equipment
Loss on disposal of shares 213 -
Tax effect on disposal of shares 6 -
Headline earnings 17 44 169 37 755
Headline earnings per share (cents) 17 356,6 305,1
Headline earnings per share (diluted) 17 356,3 304,7
(cents)
ABRIDGED GROUP STATEMENT OF CHANGES IN 31 March 31 March
EQUITY
(R000`s) 2009 2008
Shareholders` equity at beginning of 288 354 257 298
year
Changes in share capital and premium
Issue of share capital 34 413
Movements in:
Share-based payment reserve 92 58
Investment revaluation reserve (847) 4 131
Changes in retained earnings 54 462 26 454
Net profit attributable to shareholders 72 412 41 932
Deconsolidation of subsidiary company
and reclassification
as an associate company 8 -
Ordinary dividends paid (17 958) (15 478)
Shareholders` equity at end of year 342 095 288 354
ABRIDGED GROUP BALANCE SHEET % 31 March 31 March
(R000`s) chang 2009 2008
e
ASSETS
Non-current assets 202 050 274 002
Property,plant and equipment 126 310 186 175
Bearer biological assets 65 680 77 526
Unlisted investments 3 518 4 503
Investment in associate companies 5 805 5 115
Other non-current assets 737 683
Current assets 319 646 127 483
Inventories 26 201 15 952
Biological assets - crops and livestock 111 178 96 538
Trade and other receivables 52 888 14 869
Cash and cash equivalents 155 124
Assets classified as held for sale 129 224 -
Total assets 521 696 401 485
EQUITY AND
LIABILITIES
Ordinary shareholders` funds 342 095 288 354
Share capital and premium 9 401 9 367
Retained earnings 329 258 274 740
Investment revaluation reserve 3 284 4 131
Share-based payment reserve 208 116
Shareholders` interest 342 151 288 354
Outside interests in subsidiary (56) -
Non-current liabilities 82 648 72 234
Deferred taxation 65 960 55 410
Long-term borrowings 2 296 2 800
Post-employment obligations 14 392 14 024
Current liabilities 96 953 40 897
Trade and other payables 16 717 13 444
Taxation 1 450 1 910
Interest bearing borrowings - short term 68 786 25 543
Liabilities associated with assets 10 000 -
classified as held for sale
Total equity and liabilities 521 696 401 485
Net asset value per share (cents) 19 2 762 2 329
ABRIDGED GROUP CASH FLOW STATEMENT 31 March 31 March
(R000`s) 2009 2008
Operating profit 74 868 57 440
Non-cash items (28 591) (2 206)
Cash generated by operations before 46 277 55 234
working capital
Net outflow from changes in working (20 545) (8 958)
capital
Interest paid (9 752) (3 268)
Taxation paid (11 990) (12 738)
Cash inflow from operating activities 3 990 30 270
Net investment activities (38 774) (27 854)
Net cash (outflow)/inflow before (34 784) 2 416
financing activities
Dividends paid (17 958) (15 478)
Net cash outflow before financing (52 742) (13 062)
activities
Net cash generated by financing 52 773 13 098
activities
Proceeds from issue of shares 34 413
Net increase in borrowings 42 739 12 685
Increase in liabilities associated with 10 000 -
assets held for sale
Net increase in cash and cash 31 36
equivalents
Cash and cash equivalents at beginning 124 88
of year
Cash and cash equivalents at end of year 155 124
Cash flow from operating activities
- per share (cents) 0,3 244,6
OTHER GROUP SALIENT FEATURES 31 March 31 March
(R000`s) 2009 2008
Depreciation 12 250 11 570
Capital expenditure
Incurred ( including the purchase of 53 481 27 380
the Vyeboom farm )
Capital commitments
- Contracted 5 557 5 268
- Authorised but not contracted 10 040 4 555
15 597 9 823
Guarantees and contingent liabilities 575 497
Number of shares in issue 12 385 12 382
000 000
Weighted average number of shares on
which earnings per
share ( and headline earnings per share 12 384 12 376
) are based 500 056
SEGMENTAL ANALYSIS 31 March 31 March
(R000`s) 2009 2008
Revenue
Sugar cane 159 592 142 436
Bananas 55 421 44 978
Deciduous fruit 52 196 20 752
Grain and sheep 16 726 18 070
Citrus 15 155 14 692
Crocodile farming/tourism 4 457 3 526
Cattle 1 618 1 181
Other operations 2 203 1 244
307 368 246 879
Operating profit
Sugar cane 46 201 44 578
Bananas 9 083 6 944
Deciduous fruit 28 312 11 762
Grain and sheep 6 317 7 962
Citrus 1 191 2 232
Crocodile farming/tourism 1 695 1 575
Cattle 434 769
Other operations/sundry income 2 197 1 534
Group administration (20 562) (19 916)
74 868 57 440
ACCOUNTING POLICIES
The annual financial statements have been prepared in accordance with the
group`s accounting policies which fully comply with International Financial
Reporting Standards ("IFRS"). These abridged annual financial statements are
in accordance with IAS 34. The accounting policies and methods of computation
used in this report are consistent with those applied in the previous
financial year. For a better understanding of the group`s financial position
and results of operations, these abridged financial statements must be read
in conjunction with the group`s audited annual financial statements for the
year ended 31 March 2009 which include all disclosures required by IFRS.
COMMENTS ON THE RESULTS
It is pleasing to report that the group achieved record earnings and headline
earnings for the year under review notwithstanding a significant increase in
the costs of fertilizer, chemicals, transport and electricity, particularly
in sugar cane. Operating profits increased by 30% to R74,9 million (2008:
R57,4 million) and headline earnings by 17% to R44,2 million (2008: R37,8
million). Operating profits include the increase in biological assets of
R39,8 million (2008: R14,4 million).
Earnings include a substantial portion of non cash items and cash flows were
negatively impacted by the investment in first-year crop carrying costs on
the recently acquired Vyeboom deciduous fruit farm and the Mthayiza cane
operation. Profit before taxation includes the capital profit of R27,5
million from the sale of the company`s Langespruit farms (Doornkop) to the
National Department of Land Affairs for a purchase consideration of R48,9
million. Half of the sale proceeds were received in March 2009 and the
balance in April 2009.
Sugar cane - the current crop of 594894 tons was 7% lower than the previous
season`s record crop of 642188 tons.
Improved sucrose prices in South Africa - R2011 (2008: R1702) and Swaziland -
R1988 (2008: R1713) were offset by significant increases in farming input
costs.
Bananas - production volumes were 19% higher than the previous season and
local prices were marginally higher than those of the previous year.
Deciduous - a combination of higher yields and the acquisition of the Vyeboom
farm contributed to record earnings from this operation. Export prices were
significantly better than those of the previous year.
Grain - the volumes and quality of the wheat crop were effected by torrential
rains at the time of harvest. Fortunately the barley crop had been harvested
before the rain and it yielded some 9% higher than forecast.
Citrus - production volumes were 18% higher than the previous year however
export cartons of oranges were lower due to quality issues and small fruit
size which generally affected the whole area. The marginal improvement in
export prices was more than offset by higher agricultural costs.
OUTLOOK
Production volumes of all crops are expected to be higher in the 2010
financial year than those achieved in the prior year.
Price expectations for the group`s crops are generally favourable dependent
on Rand performance. The South African RV price of sugar at R2300 per ton, as
currently projected by the SA Sugar Association, is some 14% higher than the
equivalent price received for the 2008 calendar season, and this drives the
higher biological asset valuations in the year under review.
The company continues to investigate its options for the long term property
development of its coastal land at Renishaw and no firm decisions have been
made in this regard. Following its capital realisations the group is well
positioned to weather the current financial and economic conditions and is
actively considering opportunities for growth investments.
AUDITED RESULTS
The auditors, Deloitte & Touche, have issued their opinion on the group`s
financial statements for the year ended 31 March 2009. The audit was
conducted in accordance with International Standards on Auditing. They have
issued an unqualified audit opinion. A copy of their report is available for
inspection at the company`s registered office.
These abridged financial statements have been derived from the group
financial statements and are consistent in all material respects with the
group financial statements.
POST BALANCE SHEET EVENTS
The company has entered into an agreement to sell its Komatipoort estate to
the National Department of Land Affairs for a cash consideration of R200
million. The sale excludes the movable assets and current growing crops. The
company has also entered into an agreement to lease back the properties as a
going concern for a period of five years from the date of transfer of the
properties, with an option to renew for a further five year period. In terms
of the JSE Listings Requirements the sale is classified as a Category 1
transaction and the company is required to obtain shareholder approval for
the disposal. A Circular to Shareholders will be posted on 28 May 2009 and a
General Meeting of Shareholders is scheduled for 17 June 2009. The company
has also concluded the sale of its Cedars Farm to the National Department of
Land Affairs for a consideration of R26,2 million. The effective date of sale
(date of transfer) was in April 2009 and the full purchase price has been
received. Accordingly the Balance Sheet reflects R129,2 million as assets
classified as held for sale.
DECLARATION OF FINAL DIVIDEND AND PROPOSED CAPITAL REDUCTION
The board have decided to make distributions in the form of both a final cash
dividend of 68,0 cents per share in respect of the year ended 31 March 2009
and a cash distribution of 50,0 cents per share by way of a capital reduction
ex the share premium account. The capital reduction is made in terms of a
resolution to be approved by shareholders at an annual general meeting to be
held on 24 July 2009. The final dividend of 68,0 cents has been declared and
will be paid on Monday, 13 July 2009 to shareholders recorded in the books of
the company at the close of business on the record date, Friday, 10 July
2009.
The salient dates of the declaration and payment of this final dividend are
as follows:
Last day to trade cum the dividend Friday, 3 July 2009
Shares trade ex the dividend Monday, 6 July 2009
Record date Friday, 10 July 2009
Payment date Monday, 13 July 2009
Share certificates may not be dematerialised or rematerialised between
Monday, 6 July 2009 and Friday, 10 July 2009, both days inclusive.
The directors recommend that at the forthcoming annual general meeting a cash
distribution of 50,0 cents per share out of share premium be approved.
Subject to shareholder approval it is anticipated that this payment will be
made during August 2009.
The above distributions are in addition to the interim dividend of 45,0 cents
per share which was declared on 26 November 2008 and brings the aggregate
distribution in respect of the year ended 31 March 2009 to 163,0 cents per
share (2008: 140,0 cents), an increase of 16,4% on the previous year.
DIRECTORATE
Mr Bruce Darbyshire-Roberts is appointed as an executive director of the
company with effect from 22 May 2009.
NOTICE OF THE ANNUAL GENERAL MEETING AND POSTING OF ANNUAL REPORT
The annual report will be posted to shareholders on or about 26 June 2009.
Notice is hereby given that the annual general meeting of the company will be
held at 12h00 on 24 July 2009 to transact the business as stated in the
annual general meeting notice forming part of the annual financial
statements.
For and on behalf of the Board
G P Wayne (Chairman)
G S Clarke (Managing Director)
Renishaw
22 May 2009
Registered office and postal address
Renishaw, KwaZulu-Natal
P O Renishaw, 4181
Transfer secretaries
Computershare Investor Services (Pty) Ltd
70 Marshall Street, Johannesburg, 2001
Telephone (011) 370 5000
Sponsor
Sasfin Capital
(A division of Sasfin Bank Limited)
27 May 2009
Website
www.cbl.co.za
Directors:
G P Wayne * (Chairman), G S Clarke (Managing), P Bhengu *, C J H Chance *, A
C Crookes *,
D J Crookes *, B Darbyshire-Roberts, J A F Hewat *, M T Rutherford * *
Non-executive director
Secretary:
B Darbyshire-Roberts
Date: 27/05/2009 12:47:02 Produced by the JSE SENS Department.
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