| Fri 19 Feb 2010, 15:41 | | CVI - Capevin Investments Limited - Unaudited interim results for the six months |
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CVI
CVI
CVI - Capevin Investments Limited - Unaudited interim results for the six months
ended 31 December 2009
Capevin Investments Limited
(Previously KWV Investments Limited)
Registration number: 1979/007263/06
JSE share code: CVI (previously KWV)
ISIN number: ZAE000136446
Unaudited interim results for the six months ended 31 December 2009
Decrease in headline earnings per share of 2,2%
Increase in net asset value per share of 8,9%
Dividend per share of 173 cents
Consolidated income statement Unaudited Audited
Six months ended Year ended
31 December 30 June
2009 2008 2009
R`000 R`000 R`000
Restated Restated
Income from associate 181 599 185 956 278 788
Gain/(loss) on dilution of interest in 767 (438) (1 101)
associate
Interest income 126 60 288
Administrative expenses (744) (608) (1 412)
Profit before taxation 181 748 184 970 276 563
Taxation (17) (80)
Net profit attributable to ordinary 181 748 184 953 276 483
shareholders
Earnings per share (note 2)
- attributable / diluted attributable 432,7 440,4 658,3
- headline / diluted headline 431,2 440,9 660,3
Dividend per share
- interim 173,0 173,0 173,0
- final 182,0
Consolidated statement of comprehensive Unaudited Audited
income Six months ended Year ended
31 December 30 June
2009 2008 2009
R`000 R`000 R`000
Net income of the group 181 748 184 953 276 483
Share of other comprehensive income of 873 (16 755) (23 861)
associate
Other equity movements of associate 1 953 2 169 5 504
Total comprehensive income for the period 184 574 170 367 258 126
Attributable to ordinary shareholders of 184 574 170 367 258 126
the company
Consolidated statement of financial Unaudited Audited
position 31 December 30 June
2009 2008 2009
R`000 R`000 R`000
Restated Restated
Assets
Non-current assets
Investment in associate 1 512 680 1 389 295 1 404 938
Current assets 1 281 1 030 631
Taxation receivable 19 21 19
Cash and cash equivalents 1 262 1 009 612
Total assets 1 513 961 1 390 325 1 405 569
Equity and liabilities
Capital and reserves
Share capital 42 000 42 000 42 000
Reserves 1 470 769 1 347 523 1 362 635
Ordinary shareholders` funds 1 512 769 1 389 523 1 404 635
Current liabilities 1 192 802 934
Trade payables 391 55 128
Unclaimed dividends 801 747 806
Total equity and liabilities 1 513 961 1 390 325 1 405 569
Net asset value per share (cents) 3 602 3 308 3 344
Consolidated statement of changes in Unaudited Audited
owners` equity Six months ended Year ended
31 December 30 June
2009 2008 2009
R`000 R`000 R`000
Restated Restated
Ordinary shareholders` equity at beginning 1 404 635 1 295 596 1 295 596
of period
Total comprehensive income 184 574 170 367 258 126
Dividend paid (76 440) (76 440) (149 100)
Unclaimed dividends written back 13
Ordinary shareholders` equity at end of 1 512 769 1 389 523 1 404 635
period
Consolidated statement of cash flows Unaudited Audited
Six months ended Year ended
31 December 30 June
2009 2008 2009
R`000 R`000 R`000
Cash flow from operating activities
Administrative expenses (744) (608) (1 412)
Change in payables 258 208 353
Cash utilised in operations (486) (400) (1 059)
Dividends received 77 450 77 450 150 205
Dividends paid (76 440) (76 440) (149 100)
Interest received 126 60 288
Taxation paid (22) (83)
Net increase in cash and cash equivalents 650 648 251
Cash and cash equivalents at beginning of 612 361 361
period
Cash and cash equivalents at end of period 1 262 1 009 612
NOTES OF THE INTERIM REPORT
1 Basis of presentation and accounting policies
.
The interim consolidated financial statements have been prepared in terms
of IAS 34: Interim Financial Reporting and should be read in conjunction
with the annual financial statements for the year ended 30 June 2009,
which have been prepared in accordance with IFRS.
The accounting polices used in the preparation of the interim financial
statements are consistent with those used in the previous financial year,
except for the following standards which are effective for the financial
year beginning 1 July 2009:
- IAS 1 (revised): Presentation of Financial Statements,
- IFRS 8: Operating Segments,
- IAS 38 (amended): Intangible Assets,
- IAS 27 (revised): Consolidated and Separate Financial Statements.
The adoption of IAS 1 (revised) has introduced certain changes to the
presentation of the financial statements with no effect on the reported
results. No adjustments were necessary on the adoption of IFRS 8.
Comparative financial information has been restated for the amendment to
IAS 38 and the revised IAS 27 as detailed in note 4 below.
Unaudited Audited
Six months ended Year ended
31 December 30 June
2009 2008 2009
R`000 R`000 R`000
2 Earnings per share
.
Ordinary shares in issue (thousands) 42 000 42 000 42 000
Reconciliation of headline earnings
Net profit attributable to ordinary 181 748 184 953 276 483
shareholders
Interest in adjustments (net of taxation) 140 (216) (268)
of associate
(Gain)/loss on dilution of interest in (767) 438 1 101
associate
Headline earnings 181 121 185 175 277 316
Earnings per share (cents)
- attributable / diluted attributable 432,7 440,4 658,3
- headline / diluted headline 431,2 440,9 660,3
3 Group structure
.
The sole investment of Capevin Investments Limited (previously KWV
Investments Limited) is an effective interest of 29,16% (2008: 29,24%) in
the issued share capital of Distell Group Limited ("Distell"), held via
Remgro-Capevin Investments Limited.
4 Restatement of prior year figures
.
Prior year figures have been restated to account for the effects of the
amendment to IAS 38: Intangible Assets on Distell`s financial results.
Promotional stock and merchandising items were previously included in
inventory and expensed through the income statement when utilised. In
accordance with the amendment to IAS 38, promotional and merchandising
items should be expensed through the income statement when such items are
earmarked for promotional purposes.
Capevin Investments Limited ("Capevin Investments") also changed its
accounting policy following the guidance in IAS 27 (revised): Consolidated
and Separate Financial Statements whereby any gain or loss on the dilution
of interest in an associate should be accounted for in the income
statement. The group`s previous policy was to account for such gain or
loss directly in equity.
The effect of the restatement of prior year figures is summarised as
follows:
Previously Currently Difference
reported reported
R`000 R`000 R`000
Income statement
31 December 2008
Income from associate 190 344 185 956 (4 388)
Gain/(loss) on dilution of interest in (438) (438)
associate
Net profit for the period 189 779 184 953 (4 826)
Headline earnings 189 563 185 175 (4 388)
30 June 2009
Income from associate 278 990 278 788 (202)
Gain/(loss) on dilution of interest in (1 101) (1 101)
associate
Net profit for the period 277 786 276 483 (1 303)
Headline earnings 277 518 277 316 (202)
Statement of financial position
31 December 2008
Investment in associate 1 400 541 1 389 295 (11 246)
Ordinary shareholders` funds 1 400 769 1 389 523 (11 246)
30 June 2009
Investment in associate 1 411 998 1 404 938 (7 060)
Ordinary shareholders` funds 1 411 695 1 404 635 (7 060)
5 Commitments and contingencies
.
Distell has lodged an appeal against revised tax assessments issued by the
South African Revenue Service. The matter will be heard in the Special
Income Tax Court. The group`s interest in the amount at risk is R8,6
million.
6 Segment report
.
Capevin Investments is an investment holding company and its only
investment is the effective interest in Distell. The directors have not
identified any other segment to report on.
Commentary
Financial results
During the six months under review Distell`s revenue grew by 9,3% to R6,6
billion on a sales volume increase of 7,7%. Distell`s operating profit increased
by 1,9% mainly as a result of continued growth. Benefits derived from improved
throughput and greater efficiencies were largely offset by the impact of the
stronger rand on the revenue line and a less profitable sales mix. In addition,
foreign currency conversion losses of R17,9 million (2008: R32,1 million gain)
also impacted significantly on the 10,6% increase in operating expenses.
Capevin Investments` consolidated results reflect the decline in net profit of
Distell. The group`s attributable and headline earnings per share for the six
months under review decreased by 1,7% and 2,2% respectively.
Prospects
The board of Distell said that it is well positioned to weather the recession
and to take early advantage of any improvements in the economic conditions of
the markets in which Distell operates, given its versatile portfolio of strong,
appealing and diverse brands, its capacity to trade across a spectrum of markets
at a range of price points and the security of its financial position.
Refer to www.distell.co.za for Distell`s detailed interim results.
Dividend
In terms of the dividend policy of Capevin Investments, dividends received from
its indirect interest in Distell, after providing for administration costs, will
be distributed to shareholders. The directors have consequently resolved to
declare an ordinary dividend (dividend number 2) of 173 cents (2008: 173 cents)
per share for the six months ended 31 December 2009.
The salient dates of this dividend distribution are:
Last day to trade cum dividend Friday, 12 March 2010
Shares commence trading ex dividend from
commencement of business on Monday, 15 March 2010
Record date Friday, 19 March 2010
Payment date Tuesday, 23 March 2010
Share certificates may not be dematerialised or rematerialised between Monday,
15 March 2010, and Friday, 19 March 2010, both days inclusive.
Signed on behalf of the board of directors
KI Mampeule CA Otto
Chairman Financial director
Stellenbosch
19 February 2010
Directors (Non-executive): KI Mampeule (chairman), AEvZ Botha, JJ Mouton, CA
Otto
Secretary: PSG Corporate Services (Pty) Ltd
Registered office: 1st Floor, Ou Kollege, 35 Kerk Street, Stellenbosch, 7600
Transfer secretaries: Computershare Investor Services (Pty) Ltd
70 Marshall Street, Johannesburg, 2001
PO Box 61051, Marshalltown, 2107
Sponsor: PSG Capital
Auditor: PricewaterhouseCoopers Incorporated
Date: 19/02/2010 15:41:02 Produced by the JSE SENS Department.
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