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CKS
CKS
CKS - Crookes Brothers - Unaudited interim results for the six months ended 30
september 2009,cash dividend declaration and cautionary announcement
CROOKES BROTHERS LIMITED
Registration No. 1913/000290/06
Share code : CKS ISIN No. ZAE000001434
("Crookes" "the company" or "the group")
UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2009
CASH DIVIDEND DECLARATION
CAUTIONARY ANNOUNCEMENT
CONDENSED CONSOLIDATED STATEMENT
OF COMPREHENSIVE INCOME
(R000`s) Unaudited Six Unaudited Six Audited
months ended months ended Year ended
30 September 30 September 31 March
2009 2008 2009
Revenue 180155 179944 307368
Operating profit 15252 42676 74868
Share of profit of associate - - 8
company
Investment income 857 304 2049
Finance costs (2329) (3829) (9752)
Capital items 13198 (57) 27457
Profit before taxation 26978 39094 94630
Taxation (2578) (12287) (22218)
Profit after taxation 24400 26807 72412
Other comprehensive income
Investment revaluation reserve 75 (39) (985)
Tax on revaluation movement (10) 6 138
Other comprehensive income for 65 (33) (847)
the period
Total comprehensive income for 24465 26774 71565
the period
Profit attributable to :
Shareholders 24463 26807 72468
Outside shareholders in (63) - (56)
subsidiary
24400 26807 72412
Total comprehensive income
attributable to :
Shareholders 24528 26774 71621
Outside shareholders in (63) - (56)
subsidiary
24465 26774 71565
Earnings per share (basic) 197.0 216.5 584.7
(cents)
Earnings per share (diluted) 196.8 216.3 584.2
(cents)
Dividends declared per share 45.0 45.0 113.0
(cents)
Cash distribution per share - - 50.0
(cents)
HEADLINE EARNINGS RECONCILIATION
(R000`s) Unaudited Six Unaudited Six Audited
months ended months ended Year ended
30 September 30 September 31 March
2009 2008 2009
Profit after taxation 24400 26807 72412
Capital profit on disposal of (13198) (27457)
land, buildings & biological -
assets
(Profit)/loss on disposal of (148) 57 32
plant and equipment
Tax effect on disposal of (2602) (16) (1037)
property, plant and equipment
Loss on disposal of shares - - 213
Tax effect on disposal of shares - - 6
Headline earnings 8452 26848 44169
Headline earnings per share 68.2 216.8 356.6
(cents)
Headline earnings per share 68.2 216.6 356.3
(diluted) (cents)
CONDENSED CONSOLIDATED
STATEMENT OF CHANGES IN EQUITY
(R000`s) Unaudited Six Unaudited Six Audited
months ended months ended Year ended
30 September 30 September 31 March
2009 2008 2009
Balance at beginning of period 342151 288354 288354
Issue of share capital - 34 34
Share-based payment reserve 50 46 92
movement
Total comprehensive income for 245528 26774 71621
the period
Ordinary dividends paid (8422) (12385) (17958)
Cash distribution paid (6193) - -
Deconsolidation of subsidiary & - - 8
reclassification as an associate
Shareholders` equity at end of 352114 302823 342151
period
Outside shareholders interest in subsidiary
Balance at beginning of period (56)
- -
Total comprehensive income for (63) (56)
the period -
(119) 302823 (56)
Total equity 327467 276049 342095
CONDENSED CONSOLIDATED
STATEMENT OF FINANCIAL POSITION
(R000`s) Unaudited Six Unaudited Six Audited
months ended months ended Year ended
30 September 30 September 31 March
2009 2008 2009
ASSETS
Non-current assets 226167 324178 202050
Property, plant and equipment 136694 211171 126310
Bearer biological assets 79308 102314 65680
Unlisted investments 3593 4869 3518
Interest in associate companies 5805 5115 5805
Other non-current assets 767 709 737
Current assets 284959 161135 319646
Inventories 17397 20979 26201
Biological assets - crops and 99741 82893 111178
livestock
Trade and other receivables 47915 50686 52888
Cash and cash equivalents 3102 12 155
Assets classified as held-for- 116804 6565 129224
sale
Total assets 511126 485313 521696
EQUITY AND LIABILITIES
Total equity 351995 302823 342095
Share capital and premium 3208 9401 9401
Retained earnings 345299 289162 329258
Investments revaluation reserve 3349 4098 3284
Share-based payment reserve 258 162 208
Shareholders` interest 352114 302823 342151
Outside interests in subsidiary (119) (56)
Non-current liabilities 99812 71957 82648
Deferred taxation 59708 55518 65960
Long-term liabilities 26429 2555 2296
Post-employment obligations 13675 13884 14392
Current liabilities 59319 110533 96953
Trade and other payables 28980 28042 16717
Taxation 5741 8425 1450
Current portion of long-term 1524 474 503
liabilities
Interest bearing debt - short- 11454 73592 68283
term
Other liabilities 1620 - -
Liabilities associated with 10000 - 10000
assets classified as held for
sale
Total equity and liabilities 511126 485313 521696
CONDENSED CONSOLIDATED
STATEMENT OF CASH FLOWS
(R000`s) Unaudited Six Unaudited Six Audited
months ended months ended Year ended
30 September 30 September 31 March
2009 2008 2009
Operating profit 15252 42676 74868
Non-cash items 18629 7106 (28591)
Cash generated by operations 33881 49782 46277
before working capital
Net inflow/(outflow) from 26040 (26247) (20545)
changes in working capital
Finance costs (2329) (3829) (9752)
Taxation paid (4549) (5657) (11990)
Cash flows from operating 53043 14049 3990
activities
Net investment activities
Acquisition of deciduous fruit farms (42243) (42243)
Other net investment activities (3978) (7845) 3469
Net cash outflow before 49065 (36039) (34784)
dividends and financing
activities
Dividends and cash distribution (14615) (12385) (17958)
paid
Net cash inflow/(outflow) before 34450 (48424) (52742)
financing activities
Financing activities (31503) 48312 52773
Proceeds from issue of shares 34 34
Net (decrease)/increase in (31503) 48278 42739
borrowings
Increase in liabilities - - 10000
associated with assets held for
sale
Net (decrease)/increase in cash 2947 (112) 31
and cash equivalents
Cash and cash equivalents at 155 124 124
beginning of period
Cash and cash equivalents at end 3102 12 155
of period
SUPPLEMENTARY INFORMATION
(R000`s) Unaudited Six Unaudited Six Audited
months ended months ended Year ended
30 September 30 September 31 March
2009 2008 2009
Depreciation 6286 6129 12250
Capital expenditure
Incurred 17852 38625 53481
Capital commitments
- Contracted 1229 783 5557
- Authorised but not 1551 2100 10040
contracted
2780 2883 15597
Contingent liabilities 575 515 575
Net asset value per share 2842 2445 2762
Ordinary number of shares in 12385000 12385000 12385000
issue
Weighted average number of 12385000 12384000 12384500
shares in issue
Fully diluted number of shares 12396014 12395109 12395173
GROUP SEGMENTAL ANALYSIS
(R000`s) Unaudited Six Unaudited Six Audited
months ended months ended Year ended
30 September 30 September 31 March
2009 2008 2009
Revenue
Sugar cane 123461 114200 159592
Bananas 21920 22530 55421
Deciduous fruit 19259 19508 52196
Grain and sheep 1052 1601 16726
Citrus 10585 17662 15155
Crocodile farming/tourism 1154 2984 4457
Cattle 1186 550 1618
Other operations 1538 909 2203
180155 179944 307368
Operating profit
Sugar cane 39086 36479 46201
Bananas 2234 2391 9083
Deciduous fruit (9319) 4031 28312
Grain and sheep 2406 4468 6317
Citrus (5478) 3636 1191
Crocodile farming/tourism (1429) 185 1695
Cattle 67 156 434
Other operations/sundry income 815 383 2197
Group administration (13130) (9053) (20562)
15252 42676 74868
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 the amendments to IAS 1 - Presentation of
Financial
Statements (revised) during the current financial period. The adoption of the
amendment to the standard has resulted in certain disclosure reclassifications
but has not resulted in any changes in accounting policy.
COMMENTS ON THE RESULTS
Although operating cash flows reflect a significant improvement over the
previous corresponding period, with nearly 50% of the company`s revenue derived
from exports, profits for the first six months have been negatively impacted by
the relatively firm Rand.
Sugar cane -
The sugar operations are experiencing a good season with good yields and
quality, and a relatively firm price.
Bananas -
Banana yields were adversely affected by severe winter frost, but prices have
generally been good throughout the season.
Deciduous -
Although excellent yields and good quality were achieved, Rand prices are on
average 20% lower than the previous year.
The interim results were aggravated by a R7.1 million negative revaluation of
stock carried forward from the previous year, resulting from adverse currency
movements, and a further reduction arising from a seasonal devaluation of
biological assets.
Nevertheless this crop is expected to remain profitable over the full year.
Citrus -
This past season yielded poor results due to small fruit size and weak market
conditions.
Grain -
While grain yields look promising, prices are well down on those of the previous
year.
Crocodiles -
Following the global financial crisis, the market for crocodile skins has
effectively collapsed, with no sales expected in the current year. Contingency
plans have been put in place to deal with excess stocks and the market is being
closely monitored.
Capital transactions and post balance sheet events-
Komatipoort estate
In the period under review shareholders ratified the sale of the company`s
Komatipoort Estate to the National Department of Land Affairs for the amount of
R200 million and the suspensive conditions were concluded on 17 June 2009.
Shareholders were previously notified that the State has failed to fulfil its
obligations in respect of the sale and a legal challenge against the State for
due performance is in progress, but we have no indication of the potential
outcome at this stage.
The group`s strategy will be significantly affected by the outcome of his case.
Cedars farm
The cane farming operation "Cedars" comprising 1226 ha of dryland cane was sold
to the Department of Land Affairs in April 2009 for R26.2 million, yielding a
capital profit of R13.2 million.
Riversbend Estate
The Riversbend Estate will be leased to a third party as from 1 December 2009.
The existing 200 hectares under citrus will be planted to cane by the lessee.
PROSPECTS
The Board cautions against using interim figures to project full year results,
due to the varying seasonality of the diverse crops in the group`s portfolio.
Given the uncertainty around the timing of the recognition of the sale of the
Komatipoort Estate and pricing variability of our crops, it is considered
premature to provide a forecast of expected earnings for the year.
However, with improved cash flows and the elimination of underperforming assets,
the group is well poised to take advantage of opportunities arising in the
agricultural sector.
CAUTIONARY ANNOUNCEMENT
Shareholders are advised that the company has entered into negotiations to
purchase a farm in a SADC country which, if which if successfully concluded may
have a material effect on the price at which the company`s shares trade on the
JSE Limited.
Shareholders are advised to exercise caution when dealing in their Crookes
shares until a full announcement is made.
INTERIM CASH DIVIDEND NO. 189
An interim dividend of 45,0 cents (2008: 45,0 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, 8 January 2010.
The salient dates of the declaration and payment of this interim dividend are as
follows:
Last day to trade cum-dividend Thursday 31 December 2009
Shares commence trading ex-dividend Monday 4 January 2010
Record date Friday 8 January 2010
Payment date Monday 11 January 2010
Share certificates may not be dematerialised or rematerialised between Monday, 4
January 2010 and
Friday, 8 January 2010, both days inclusive.
For and on behalf of the Board
G P Wayne (Chairman) G S Clarke (Managing Director)
Renishaw 27 November 2009
Registered office and postal address Transfer secretaries
Renishaw, KwaZulu-Natal Computershare Investor
P O Renishaw, KwaZulu-Natal, 4181 Services (Pty) Ltd.
P O Box 61051, Marshalltown,
2107
Sponsor Website
Sasfin Capital www.cbl.co.za
A division of Sasfin Bank Limited
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: 30/11/2009 12:30:03 Produced by the JSE SENS Department.
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