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OCE
OCE
OCE - Oceana Group Limited - Audited Group Results And Dividend Declaration For
The Year Ended 30 September 2009
Oceana Group Limited
Incorporated in the Republic of South Africa
(Registration Number 1939/001730/06)
JSE Share Code: OCE
ISIN Number: ZAE000025284
NSX Share Code: OCG
Audited Group Results and Dividend declaration for the year ended 30 September
2009
This report has been prepared in compliance with International Financial
Reporting Standards (IFRS) applicable to Interim Financial Reporting (IAS 34)
and in accordance with the principles applied in the most recently published
annual financial statements.
The financial information has been audited by our auditors, Deloitte & Touche,
whose unmodified audit opinion is available for inspection at the registered
office of the company.
COMMENTS
Financial Results
Revenue for the year ended 30 September 2009 increased by 10% over the previous
year and operating profit before abnormal items improved by 29%. The canned fish
and horse mackerel businesses showed exceptional improvement over the prior year
whilst some of the other business units were negatively affected by the global
downturn and the strong Rand in the second half of the year.
Earnings per share and headline earnings per share for the year ended 30
September 2009 increased by 18%.
A final dividend of 153 cents per share has been declared, which together with
the interim dividend of 31 cents, brings the total dividend for the year to 184
cents per share, an increase of 18% on the 2008 total dividend of 156 cents.
Review of operations
Inshore Fishing
The 2009 Total Allowable Catch (TAC) for pilchard is 90 000 tons (2008: 90 776
tons). The size and quality of fish landed was good resulting in improved
canning yields. Canned fish production at the St Helena Bay cannery was
accordingly above the prior year level. The Namibian pilchard TAC was the same
as in 2008 at 15 000 tons but production at the Etosha Fishing cannery was lower
due to a re-alignment of quotaholders which provide quota to the company. Sales
of canned pilchards on the local market increased in volume terms although
insufficient product was available to fully meet demand. Additional supplies
were imported from several international suppliers to help meet market demand
and maintain Lucky Star`s market leadership position. This in turn gave rise to
significantly increased working capital requirements.
Volumes and margins declined at Glenryck Foods in the United Kingdom as a
consequence of depressed economic conditions.
Overall, profitability from canned fish was above that of the previous year.
The 2009 `A` season anchovy TAC was 449 437 tons and the `B` season 120 000 tons
(2008: `A` season 397 500 tons; `B` season 120 000 tons). Catches have not been
good and at 30 September, the close of the anchovy `A` season, Oceana had landed
42% of the quota available to it, slightly ahead of the industry total. Similar
to the previous year the `B` season quota is unlikely to be landed by 31
December. Fish meal production volumes were lower than last year, however,
higher selling prices on the local and export markets resulted in improved
profitability.
The TAC for west coast lobster was reduced to 2 340 tons (2008: 2 571 tons).
Quota available to Oceana for the season to 30 September 2009 amounted to 348
tons (2008: 373 tons) which was landed in full after catch rates improved later
in the season. Export prices were lower in foreign currency terms and with the
effect of the stronger Rand exchange rate during the second half of the
financial year resulted in lower turnover. Lobster profits were lower for the
full year.
A protracted strike by fishermen in the squid industry caused squid catches to
be lower than those of last year. The low volumes and significantly lower Euro
selling prices resulted in a loss being recorded.
Sales volumes in the French fry business were lower than the prior year with the
economic downturn having affected all major clients. Profits and margins were
negatively impacted by high raw potato prices.
Midwater and Deep-sea Fishing
The South African and Namibian horse mackerel TACs were unchanged at 31 500 tons
and 230 000 tons respectively. Catches were very good with excellent catch rates
per trip and an improved mix of larger fish. Volumes in Namibia were
significantly up on last year as a result of the introduction of a third
midwater trawler in August last year. The higher turnover from own vessels was
offset by a large decline in the trading of fish purchased from foreign fleets
operating in Mauritania and the Pacific, resulting in overall turnover
increasing by 8%. Operating profit however was significantly better due to the
improved fishing performance, higher prices and improved margins.
Despite a good hake fishing performance, operating profits from this sector, in
which Oceana has a minor interest, declined as a result of weak markets.
Cold Storage
Occupancy levels were generally lower as a result of a decline in customers`
import volumes with the exception of the stores at Walvis Bay and Duncan Dock,
Cape Town which experienced higher utilisation. Handling activity levels of
frozen product were slightly below those of the prior year. The sterilised fruit
handling facility at Maydon Wharf showed improved results. Overall, operating
profit showed a satisfactory improvement.
Prospects
The group is well placed to take advantage of an improvement in global economic
conditions. Fishing conditions in the southern African region remain reasonably
stable and the group has opportunities for further organic growth.
On behalf of the board.
MA Brey FP Kuttel
Chairman Chief Executive Officer
12 November 2009
CONDENSED GROUP INCOME STATEMENT
Audited Audited
2009 Change 2008
Note R`000 % R`000
Revenue 3 301 288 10 3 002 476
Operating profit before 410 866 29 317 284
abnormal items
Abnormal items 1 19 329 65 11 725
Operating profit 430 195 31 329 009
Dividends received and 18 731 (2) 19 103
accrued
Net interest received 7 230 (30) 10 311
Profit before taxation 456 156 27 358 423
Taxation 148 223 42 104 153
Profit after taxation 307 933 21 254 270
Attributable to:
Shareholders of Oceana Group 292 199 19 246 073
Limited
Outside shareholders in 15 734 92 8 197
subsidiaries
307 933 21 254 270
Weighted average number of 2 99 041 98 721
shares on which earnings per
share is based (000`s)
Adjusted weighted average 101 950 100 144
number of shares on which
diluted earnings per share
is based (000`s)
Earnings per share (cents)
Basic 295.0 18 249.3
Diluted 286.6 17 245.7
Dividends per share (cents) 184.0 18 156.0
Headline earnings per share
(cents)
Basic 279.4 18 237.7
Diluted 271.5 16 234.3
CONDENSED GROUP BALANCE SHEET
Audited Audited
2008
2009
R`000 R`000
Assets
Non-current assets 534 276 516 084
Property, plant and equipment 352 170 334 147
Goodwill 18 774 23 544
Trademarks 17 343 21 749
Deferred taxation 5 878 5 386
Investments and loans 140 111 131 258
Current assets 1 188 010 1 039 398
Inventories 589 814 344 458
Accounts receivable 408 793 424 405
Cash and cash equivalents 189 403 270 535
Total assets 1 722 286 1 555 482
Equity and liabilities
Equity 16 536 2 370
Share capital and premium
Foreign currency translation reserve (2 518) 22 376
Capital redemption reserve 130 130
Cash flow hedging reserve (7 856)
Share-based payment reserve 32 015 24 616
Distributable reserve 1 053 395 920 434
Interest of own shareholders 1 091 702 969 926
Interest of outside shareholders 33 994 29 632
Total equity 1 125 696 999 558
Non-current liabilities 76 291 59 690
Liability for share-based payments 26 462 14 957
Deferred taxation 49 829 44 733
Current liabilities 520 299 496 234
Accounts payable and provisions 499 866 443 832
Bank overdrafts 20 433 52 402
Total equity and liabilities 1 722 286 1 555 482
Number of shares in issue net of treasury 99 269 98 371
shares (000`s)
Net asset value per ordinary share (cents) 1 100 986
Total liabilities excluding deferred 49 51
taxation: Total equity (%)
Total borrowings: Total equity (%) 2 5
CONDENSED GROUP STATEMENT OF CHANGES IN EQUITY
Audited Audited
2009 2008
R`000 R`000
Balance at the beginning of the period 999 558 905 522
Shares issued 12 979 9 588
Increase in treasury shares held by subsidiary (52 302)
Decrease in treasury shares held by share 1 187 1 282
trusts
Movement on foreign currency translation (24,894) (2 974)
reserve
Movement on cash flow hedging reserve (7 856)
Recognition of share-based payments 7 466 7 865
Profit after taxation 307 933 254 270
Profit / (loss) on sale of treasury shares 307 (53)
Dividends declared (170 984) (123 640)
Balance at the end of the year 1 125 696 999 558
Comprising:
Share capital and premium 16 536 2 370
Foreign currency translation reserve (2 518) 22 376
Capital redemption reserve 130 130
Cash flow hedging reserve (7 856)
Share-based payment reserve 32 015 24 616
Distributable reserve 1 053 395 920 434
Outside shareholders interest 33 994 29 632
Total 1 125 696 999 558
CONDENSED GROUP CASH FLOW STATEMENT
Audited Audited
2009 2008
R`000 R`000
Cash flows from operating activities
Operating profit before abnormal items 410 866 317 284
Adjustment for non-cash items and other 89 659 83 045
Cash operating profit before working capital 500 525 400 329
changes
Working capital changes (206 875) (79 496)
Cash generated from operations 293 650 320 833
Interest and dividends received 16 509 20 998
Interest paid (5 600) (6 464)
Taxation paid (138 822) (84 623)
Dividends paid (170 984) (123 640)
Cash (outflow)/inflow from operating (5 247) 127 104
activities
Cash outflow from investing activities (62 429) (87 526)
Capital expenditure (91 138) (127 511)
Proceeds on disposal of property, plant and 10 275 2 478
equipment
Net movement on loans and advances 14 221 3 470
Proceeds on disposal of investments 451
Cash-related abnormal items 4 213 4 546
Net disposal and acquisition of business 21 312
Proceeds on disposal of fishing rights 7 728
Cash inflow/(outflow) from financing 15 670 (41 583)
activities
Proceeds from issue of share capital 14 472 10 817
Short-term borrowings raised/(repaid) 1 198 (98)
Acquisition of treasury shares by subsidiary (52 302)
Net decrease in cash and cash equivalents (52 006) (2 005)
Cash and cash equivalents at the beginning 218 133 218 369
of the year
Effect of exchange rate changes 2 843 1 769
Cash and cash equivalents at the end of the 168 970 218 133
year
CONDENSED GROUP SEGMENTAL REPORT
Audited Audited
2009 2008
R`000 R`000
Revenue
Inshore fishing 2 142 497 1 879 711
Midwater and deep-sea fishing 948 267 934 384
Commercial cold storage 210 524 188 381
Total 3 301 288 3 002 476
Operating profit before abnormal items
Inshore fishing 165 451 164 345
Midwater and deep-sea fishing 177 681 94 267
Commercial cold storage 67 734 58 672
Total 410 866 317 284
Total assets
Inshore fishing 926 830 697 947
Midwater and deep-sea fishing 286 029 283 247
Commercial cold storage 174 035 165 557
Financing 329 514 403 345
1 716 408 1 550 096
Deferred taxation 5 878 5 386
Total 1 722 286 1 555 482
Total liabilities
Inshore fishing 351 170 324 220
Midwater and deep-sea fishing 128 385 102 703
Commercial cold storage 44 437 34 247
Financing 22 769 50 021
546 761 511 191
Deferred taxation 49 829 44 733
Total 596 590 555 924
NOTES
Audited Audited
2009 2008
R`000 R`000
1. Abnormal items
Net surplus on disposal of 8 474 1 684
property
Reversal of provision for loans in 7 422 5 395
Namibian whitefish business
Profit on disposal of investment 1 413 243
Reversal of provision for 600 505
irrecoverable
loans
Insurance proceeds 2 799
Impairment charge on vessels and (713)
equipment
Utilisation of pension fund (666)
surplus
Impairment loss on Western
Australia (1 476)
lobster fishing rights
Profit on disposal of Western 4 565
Australia
lobster fishing rights
Profit on change of interest in 809
business
Abnormal profit before taxation 19 329 11 725
Taxation (2 312) (319)
Abnormal profit after taxation 17 017 11 406
Number Number
of shares of shares
`000 `000
2. Elimination of treasury shares
Weighted average number of shares 118 386 117 610
in issue
Less: treasury shares held by (14 251) (14 375)
share trusts
Less: treasury shares held by (5 094) (4 514)
subsidiary company
Weighted average number of shares 99 041 98 721
on which earnings per share and
headline earnings per share are
based
R`000 R`000
3. Determination of headline
earnings
Profit after taxation attributable 292 199 246 073
to own shareholders
Adjusted for:
Net surplus on disposal of (9 954) (1 684)
property, plant and equipment
Reversal of provision for loans in (7 422) (5 395)
Namibian whitefish business
Profit on disposal of investment (1 413) (243)
Impairment charge on vessels and 713
equipment
Impairment loss on Western 1 476
Australia lobster fishing rights
Profit on disposal of Western (4 598)
Australia lobster fishing rights
Profit on change of interest in (809)
business
Reversal of provision for (505)
irrecoverable loans
Total tax effects of adjustments 2 641 321
Headline earnings for the year 276 764 234 636
4. Dividends
Estimated dividend declared after 151 881 127 883
reporting date
Dividend on shares issued prior to 607
last day
to trade
Actual dividend declared after 128 490
reporting date
5. Supplementary information
Cost of sales 2 231 648 2 131 946
Depreciation 72 035 67 255
Operating lease charges 24 239 18 876
Net foreign exchange loss /(profit) 4 900 (15 769)
Capital expenditure 91 138 127 511
Expansion 19 618 89 384
Replacement 71 520 38 127
Budgeted capital commitments 105 264 125 778
Contracted 9 449 27 769
Not contracted 95 815 98 009
Dividend declaration
Notice is hereby given that a final dividend No. 132 of 153 cents per share, in
respect of the year ending 30 September 2009, was declared on Thursday 12
November 2009. Relevant dates are as follows:
Last day to trade cum dividend - Thursday, 31 December 2009
Commence trading ex dividend - Monday, 4 January 2010
Record date - Friday, 8 January 2010
Dividend payable - Monday, 11 January 2010
Share certificates may not be dematerialised or re-materialised between Monday 4
January 2010 and Friday 8 January 2010, both dates inclusive.
By order of the board
M Allie
Company Secretary
12 November 2009
Directors: MA Brey (chairman), RA Williams (vice-chairman), FP Kuttel*
(chief executive officer), PG de Beyer, ABA Conrad*, M Fleming, PB Matlare, R
Nicol*,S Pather, NV Simamane, TJ Tapela (* executive)
Registered Office: 16th Floor Metropolitan Centre, 7 Coen Steytler Avenue, Cape
Town, 8001
Transfer Secretaries: Computershare Investor Services (Pty) Limited
70 Marshall Street, Johannesburg, 2001
(PO Box 61051, Marshalltown, 2107)
Sponsor - South Africa: The Standard Bank of South Africa Limited
Sponsor - Namibia: Old Mutual Investment Services (Namibia) (Pty) Limited
Company Secretary: M Allie
Date: 12/11/2009 16:30:02 Produced by the JSE SENS Department.
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