| Mon 24 May 2010, 11:22 | | 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 2010 , final dividend declaration and change to the board of
Directors
CROOKES BROTHERS LIMITED
Registration No. 1913/000290/06
Share code : CKS
ISIN No: ZAE000001434
("Crookes" or the "Company" or the Group")
ABRIDGED AUDITED GROUP RESULTS FOR THE YEAR ENDED 31 MARCH 2010 AND FINAL
DIVIDEND DECLARATION
The audited results of the group for the year ended 31 March 2010
together with those of the previous year are set out below:
ABRIDGED CONSOLIDATED STATEMENT OF 31 March 31 March
COMPREHENSIVE INCOME
(R000`s) 2010 2009*
Continuing operations:
Revenue 305,883 292,213
Operating profit 36,402 73,677
Share of profit of associate companies 7 8
Investment income 502 2,049
Finance costs (5,828) (9,752)
Capital items 13,188 27,457
Profit before taxation 44,271 93,439
Income tax expense (7,214) (21,885)
Profit for the year from continuing 37,057 71,554
operations
Discontinued operations:
(Loss)/profit for the year from (16,797) 858
discontinued operations
Profit for the year 20,260 72,412
Other comprehensive loss
Investment revaluation reserve 305 (847)
Exchange differences on translating (867) -
foreign operations
Other comprehensive loss for the year, (562) (847)
net of tax
Total comprehensive income for the year 19,698 71,565
Profit attributable to:
Owners of the company 20,650 72,468
Non-controlling interests (390) (56)
20,260 72,412
Total comprehensive income attributable to:
Owners of the company 20,088 71,621
Non-controlling interests (390) (56)
19,698 71,565
Earnings per share from continuing and
discontinued operations
Earnings per share (basic) (cents) 166.7 585.1
Earnings per share (diluted) (cents) 166.6 584.5
Earnings per share from continuing
operations
Earnings per share (basic) (cents) 302.4 578.2
Earnings per share (diluted) (cents) 302.0 577.6
Dividends/cash distributions per share
Dividends declared per share (cents) 70.0 113.0
Cash distribution by way of capital 0.0 50.0
reduction per share (cents)
Total distributions per share (cents) 70.0 163.0
*Re-presented to account for discontinued operations
RECONCILIATION OF HEADLINE EARNINGS 31 March 31 March
(R000`s) 2010 2009
Profit for the year 20,650 72,468
Capital profit on disposal of land, (13,188) (27,457)
buildings and biological assets
(Profit)/loss on disposal of property, (2,150) 32
plant, equipment and biological assets
Tax effect on the above (2,301) (1,037)
(Profit)/loss on disposal of shares (117) 213
Tax effect on disposal of shares 13 6
Discontinued operations write-off of 10,693
assets
Tax effect on discontinued operations (2,467)
write-off of assets
Headline earnings 11,133 44,225
Headline earnings per share
Headline earnings per share (cents) 89.9 357.1
Headline earnings per share (diluted) 89.8 356.8
(cents)
ABRIDGED GROUP STATEMENT OF CHANGES IN 31 March 31 March
EQUITY
(R000`s) 2010 2009
Shareholders` equity at beginning of year 342,095 288,354
Changes in share capital and premium
(Cash distribution from share (6,193) 34
premium)/Issue of share capital
Movements in:
Share-based payment reserve 100 92
Other comprehensive loss for the year (562) (847)
Changes in retained earnings 6,265 54,462
Net profit attributable to shareholders 20,260 72,412
Deconsolidation of subsidiary company - 8
and reclassification as an associate
company
Ordinary dividends paid (13,995) (17,958)
Shareholders` equity at end of year 341,705 342,095
ABRIDGED CONSOLIDATED STATEMENT OF 31 March 31 March
FINANCIAL POSITION
(R000`s) 2010 2009
ASSETS
Non-current assets 250,879 202,050
Property, plant and equipment 159,790 126,310
Bearer biological assets 79,153 65,680
Unlisted investments 3,873 3,518
Investment in associate companies 8,063 5,805
Other non-current assets - 737
Current assets 279,890 319,646
Inventories 21,105 26,201
Biological assets - crops and 120,345 111,178
livestock
Trade and other receivables 16,732 52,888
Taxation 1,495 -
Cash and cash equivalents 3,338 155
Unsecured loan - short term 797 -
Assets classified as held for sale 116,078 129,224
Total assets 530,769 521,696
EQUITY AND LIABILITIES
Ordinary shareholders` funds 341,705 342,095
Share capital and premium 3,208 9,401
Retained earnings 335,913 329,258
Investment revaluation reserve 3,589 3,284
Foreign currency translation reserve (867) -
Share-based payment reserve 308 208
Shareholders` interest 342,151 342,151
Outside interests in subsidiary (446) (56)
Non-current liabilities 98,806 82,648
Deferred taxation 57,547 65,960
Long term borrowings - interest 10,332 2,296
bearing
Long term liability - interest free 16,550 -
Post-employment obligations 14,377 14,392
Current liabilities 90,258 96,953
Trade and other payables 18,146 16,717
Taxation - 1,450
Interest bearing borrowings - short 62,112 68,786
term
Liabilities associated with assets 10,000 10,000
classified as held for sale
Total equity and liabilities 530,769 521,696
Net asset value per share (cents) 2,759 2,762
ABRIDGED GROUP STATEMENT OF CASH FLOWS 31 March 31 March
(R000`s) 2010 2009
Operating profit 36,402 73,677
Non-cash items (14,333) (27,400)
Cash generated by operations before 22,069 46,277
working capital
Net inflow/(outflow) from changes in 18,231 (20,545)
working capital
Interest paid (5,828) (9,752)
Taxation paid (12,551) (11,990)
Cash inflow from operating activities 21,921 3,990
Net investment activities (16,462) (38,774)
Net cash (outflow)/inflow after 5,459 (34,784)
investing activities
Dividends paid (20,188) (17,958)
Net cash outflow before financing (14,729) (52,742)
activities
Net cash generated by financing 17,912 52,773
activities
Proceeds from issue of shares - 34
Net increase in borrowings 17,912 42,739
Increase in liabilities associated with - 10,000
assets held for sale
Net increase in cash and cash 3,183 31
equivalents
Cash and cash equivalents at beginning 155 124
of year
Cash and cash equivalents at end of year 3,338 155
Cash flow from operating activities
- per share (cents) 177.0 32.2
OTHER GROUP SALIENT FEATURES 31 March 31 March
(R000`s) 2010 2009
Depreciation 12,541 12,250
Capital expenditure incurred (including 55,521 53,481
purchase of farms)
Capital commitments
- Contracted 6,839 5,557
- Authorised but not contracted 10,975 10,040
17,814 15,597
Guarantees 613 575
Contingent liabilities 30 30
Contingent assets (16,100) -
Number of shares in issue 12,385,000 12,385,000
Weighted average number of shares on 12,385,000 12,384,500
which earnings per share ( and headline
earnings per share ) are based
ABRIDGED SEGMENTAL ANALYSIS - 31 March 31 March
Continuing operations
(R000`s) 2010 2009
Revenue
Sugar cane 179,094 159,592
Bananas 54,430 55,421
Deciduous fruit 50,209 52,196
Grain and sheep 14,290 16,726
Crocodile farming/tourism 2,812 4,457
Cattle 1,473 1,618
Other operations 3,575 2,203
305,883 292,213
Operating profit/(loss)
Sugar cane 54,435 46,201
Bananas 9,522 9,083
Deciduous fruit (10,154) 28,312
Grain and sheep 4,358 6,317
Crocodile farming/tourism (1,170) 1,695
Cattle (292) 434
Other operations/sundry income 5,029 2,197
Group administration (25,326) (20,562)
36,402 73,677
DISCONTINUED OPERATIONS - Citrus 31 March 31 March
(R000`s) 2010 2009
Revenue 5,719 15,155
Operating (loss)/profit before (12,298) 1,191
taxation
Income tax expense 3,727 (333)
(Loss)/profit for the year (8,571) 858
(Loss) on impairment and sale of (8,226) -
assets (net of tax)
(Loss)/profit for the year from (16,797) 858
discontinued operations
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 disclosure requirements, as well as AC 500 standards, the
Companies Act of South Africa and the JSE Limited Listings Requirements. The
accounting policies and methods of computation used in this report are
consistent with those applied in the previous financial year. IAS 1 and IFRS 8
standards have been adopted in the year under review and have not had a material
impact on disclosures.
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 2010
which include all disclosures required by IFRS.
AUDITED RESULTS
The auditors, Deloitte & Touche, have issued their opinion on the group`s
financial statements for the year ended 31 March 2010. The audit was conducted
in accordance with International Standards on Auditing. They have issued an
unmodified 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
There have been no material events between the balance sheet date and the date
of this report.
DECLARATION OF FINAL CASH DIVIDEND
The board has declared a final cash dividend of 25,0 cents per share in respect
of the year ended 31 March 2010.
The final dividend will be paid on Monday, 12 July 2010 to shareholders recorded
in the books of the company at the close of business on the record date, Friday,
9 July 2010.
The salient dates of the declaration and payment of this final dividend are as
follows:
Last day to trade cum the dividend Friday, 2 July 2010
Shares trade ex the dividend Monday, 5 July 2010
Record date Friday, 9 July 2010
Payment date Monday, 12 July 2010
Share certificates may not be dematerialised or rematerialised between Monday 5
July 2010 and Friday 9 July 2010, both days inclusive.
The above dividend is in addition to the interim dividend of 45,0 cents per
share which was declared on 27 November 2009 and brings the aggregate dividend
in respect of the year ended 31 March 2010 to 70,0 cents per share (2009: 163,0
cents, including a cash distribution of 50.0 cents).
DIRECTORATE
Mr Alan Crookes retired as a non-executive director on 16 April 2010 after
serving as a board member for 31 years.
Mr Pierre Joubert was appointed as a non-executive director on 16 April 2010.
Mr Bruce Darbyshire-Roberts retires as executive director on 31 May 2010 after
32 years service with the company.
Mr Phillip Barker has been appointed an executive, financial director with
effect from 1 June 2010.
NOTICE OF THE ANNUAL GENERAL MEETING AND POSTING OF ANNUAL REPORT
The annual report will be posted to shareholders on or about 28 June 2010.
Notice is hereby given that the annual general meeting of the company will be
held at 12h00 on 23 July 2010, at Durban Country Club, Isaiah Ntshangase Road
(formerly Walter Gilbert Road), Durban 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
21 May 2010
Registered office and postal address
Renishaw, KwaZulu-Natal
P O Renishaw, 4181
Directors:
GP Wayne* (Chairman), GS Clarke (Managing), P Bhengu*, CJH Chance*, DJ Crookes*,
B Darbyshire-Roberts, JAF Hewat*, PG Joubert*, MT Rutherford* * Non-executive
director
Secretary:
Highway Corporate Services (Pty) Limited
COMMENTS ON THE RESULTS
The past financial year was characterised by a general in most global
agricultural markets and unfavourable exchange rate movements, resulting in
significantly lower prices received for many of our products, with the notable
exception of sugar. The group has made good progress in repositioning its
agricultural portfolio, with the sale of Cedars farm, the lease of the
Riversbend property to Tongaat-Hulett Sugar ("THS") and the purchase of a sugar
cane farm in Zambia. The two community-partnering joint ventures have gained
momentum and relationships are well established.
While group revenue from continuing operations increased to R306 million (from
R292 million in 2009), total earnings declined to R20.3 million (from R72.4
million) and headline earnings decreased to R11.1 million (from R44.2 million).
Operating cash flow (before working capital movements) remained positive at
R22.1 million (from R46.3 million) and the group ended the year with net
interest-bearing debt at an acceptable 21% of shareholders` funds.
The decline in profitability was mainly due to the reduced prices of deciduous
and citrus fruit on export markets, as well as the write off of the citrus
assets due to the discontinuation of this operation with the lease of the
property to THS. It must be noted that a large part of the decline in headline
earnings is due to a change in the valuation of unrealised biological assets at
year end in line with reduced market prices or expectations.
The sale of the Komati estate to the National Department of Land Affairs as part
of the land restitution process is still pending despite the conclusion of all
agreements and approval by shareholders. Legal action for due performance has
been initiated. Neither the disposal of this asset nor the interest accruing on
the R200 million sale consideration have been brought to account in the year
under review.
Sugar cane - Excellent yields on the irrigated Komati and Swaziland estates and
a higher South African RV price boosted the results of the cane farming
operations. Total production increased from 594 894 to 617 916 tons with the
first year of production from the Mthayiza joint venture in Malelane more than
offsetting the loss of production resulting from the sale of the Cedars farm.
Bananas - Profitability was maintained with firmer prices compensating for the
effect of lower yields caused by the abnormally cold Lowveld winter.
Deciduous - Despite record production, the decline of the global deciduous
market, aided by the strength of the Rand, resulted in an average 43% decrease
in on-farm prices and a consequent loss by this operation.
Citrus - Exports were severely impacted by the strong rand and weak market
conditions, aggravated by below average production and cold damage incurred in
transit. This operation was terminated at the end of November 2009 with the
lease of the Riversbend farm to THS.
Other operations - Grain profits in the Western Cape declined with depressed
prices but the sheep operation performed well. Crocodile farming is under
pressure with the export market for skins stressed by the global financial
crisis.
OUTLOOK
Despite the continued strength of the Rand and weakness in the international
deciduous fruit and grain markets, the group remains well placed to weather the
current economic conditions. The group will look to expand its joint venture
operations on quality farms and continue to develop a portfolio of products in
diverse regions to mitigate against market and climatic risk.
The evaluation of the Renishaw/Clansthal cane farms for their property
development potential by Renishaw Property Developments (Pty) Limited is
progressing. Any development would be phased over many years and would be
complementary to our ongoing agricultural operation and environmental care of
the estate.
The delay in receiving the Komati sale proceeds has significant implications on
the group`s ability to make material further investment to achieve its strategic
objectives, although a solid platform has been established from which to
undertake future growth.
Sponsor
Sasfin Capital
A division of Sasfin Bank Limited
24 May 2010
Date: 24/05/2010 11:22:01 Produced by the JSE SENS Department.
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