| Tue 1 Jun 2010, 7:05 | | CUL - Cullinan Holdings Limited - Unaudited condensed consolidated results for |
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CUL
CUL
CUL - Cullinan Holdings Limited - Unaudited condensed consolidated results for
the six months ended 31 March 2010
Cullinan Holdings Limited
(Registration number 1902/001808/06)
(Share code: CUL ISIN: ZAE000013710)
("the company" or "the group")
UNAUDITED CONDENSED CONSOLIDATED RESULTS FOR THE SIX MONTHS ENDED 31 MARCH 2010
GROUP FINANCIAL HIGHLIGHTS
Earnings - up 103% on corresponding period last year
Headline earnings - up 108% on corresponding period last year
GROUP CONDENSED STATEMENT OF FINANCIAL POSITION
Unaudited Unaudited Audited
as at as at as at
31 March 31 March 30 September
2010 2009 2009
R`000 R`000 R`000
ASSETS
Non-current assets 126 583 123 854 122 864
Property, plant and equipment 57 846 57 540 52 695
Goodwill 33 581 34 197 33 593
Intangible assets 24 973 26 328 26 055
Investment properties 5 000 - 5 000
Investment in associate companies 2 827 1 220 3 053
Investment in joint venture 1 171 1 058 1 241
Deferred tax asset 1 185 3 511 1 227
Current assets 172 628 204 003 239 174
Inventories 16 210 17 159 16 737
Accounts receivable 77 246 98 362 122 445
Other financial asset - - 754
Taxation 1 212 890 2 708
Cash resources 77 960 87 592 96 530
Non-current assets held for sale 4 193 7 757 6 551
Total assets 303 404 335 614 368 589
EQUITY AND LIABILITIES
Ordinary shareholders` equity 123 012 98 259 111 520
Preference shareholders` equity 546 546 546
Non-controlling interest 5 5 5
Total shareholders` equity 123 563 98 810 112 071
Non-current liabilities 14 695 46 162 46 967
Deferred tax liability 3 341 2 783 3 067
Long-term loans - 33 664 33 132
Operating lease accrual 10 854 9 215 10 268
Preference shares 500 500 500
Current liabilities 165 146 190 642 209 551
Short-term portion of long-term - 4 290 4 040
loans
Operating lease accrual 78 164 215
Accounts payable 153 327 176 941 197 488
Taxation 2 433 1 227 1 121
Preference dividends 42 14 41
Provisions 9 266 8 006 6 646
Total equity and liabilities 303 404 335 614 368 589
GROUP CONDENSED STATEMENT OF COMPREHENSIVE INCOME
Unaudited Unaudited Audited
six months six months year
ended ended ended
31 March 31 March 30 September
2010 2009 2009
R`000 R`000 R`000
Revenue 200 351 209 415 411 784
Turnover 198 185 208 652 409 224
Net operating expenses (183 956) (200 751) (386 658)
Operating profit 14 229 7 901 22 566
Finance income 2 166 763 2 560
Finance expenses - (196) (417)
Preference dividends paid (24) (27) (55)
Share of (loss)/profit of associates (226) - (771)
Share of profit of joint venture (71) - 183
Profit before taxation 16 074 8 441 24 066
Tax expense (4 595) (2 781) (6 115)
Profit for the period 11 479 5 660 17 951
Other comprehensive income:
Exchange differences on translating 13 (256) (150)
foreign operations
Total comprehensive income for the 11 492 5 404 17 801
period
Profit attributable to:
equity holders 11 479 5 660 17 951
non-controlling interest - - -
Total comprehensive income
attributable to:
equity holders 11 492 5 404 17 801
non-controlling interest - - -
Basic earnings per share (cents) 1,60 0,79 2,50
Diluted earnings per share (cents) 1,60 0,79 2,50
GROUP CONDENSED STATEMENTS OF CHANGES IN EQUITY
Unaudited Unaudited Audited
six months six months year
ended ended ended
31 March 31 March 30 September
2010 2009 2009
R`000 R`000 R`000
Ordinary share capital
Balance at beginning of period 7 184 7 184 7 184
Issued during period - - -
Balance at end of period 7 184 7 184 7 184
Share premium
Balance at beginning of period 59 905 59 905 59 905
Premium on issue of shares - - -
Balance at end of period 59 905 59 905 59 905
Share capital reduction reserve fund
Balance at beginning of period 20 876 20 876 20 876
Balance at end of period 20 876 20 876 20 876
Capital redemption reserve fund
Balance at beginning of period 4 4 4
Balance at end of period 4 4 4
Foreign currency translation reserve
Balance at beginning of period (1 573) (1 423) (1 423)
Reserve on translation of foreign 13 (256) (150)
subsidiary
Balance at end of period (1 560) (1 679) (1 573)
Revaluation reserve
Balance at beginning of period 864 - -
Reserve on translation of foreign - - 864
subsidiary
Balance at end of period 864 - 864
Accumulated profit/(loss)
Balance at beginning of period 24 260 6 309 6 309
Attributable income for period 11 479 5 660 17 951
Ordinary dividend paid - - -
Balance at end of period 35 739 11 969 24 260
Ordinary shareholders` equity 123 012 98 259 111 520
Equity portion of preference share
capital
Balance at beginning of period 546 546 546
Balance at end of period 546 546 546
Non-controlling interest
Balance at beginning of period 5 5 5
Profit attributable to non- - - -
controlling interest
Balance at end of period 5 5 5
Total income and expense for the
period
Profit for period 11 479 5 660 17 951
- Attributable to equity 11 479 5 660 17 951
shareholders
- Attributable to non-controlling - - -
interest
Total other comprehensive income for 13 (256) 714
the period
11 492 5 404 18 665
GROUP CONDENSED STATEMENT OF CASH FLOWS
Unaudited Unaudited Audited
six months six months year
ended ended ended
31 March 31 March 30 September
2010 2009 2009
R`000 R`000 R`000
Net cash inflow/(outflow) from 29 134 (26 241) (4 088)
operating activities
Net cash outflow from investing (10 554) (15 272) (27 667)
activities
Net cash outflow from financing (37 150) (1 064) (1 884)
activities
Net (decrease)/increase in cash and (18 570) (42 577) (33 639)
cash equivalents
Cash and cash equivalents at 96 530 130 169 130 169
beginning of period
Cash and cash equivalents at end of 77 960 87 592 96 530
period
NOTES
1. Basis of preparation
The unaudited condensed consolidated interim results for the six months ended
31 March 2010 have been prepared in accordance with IAS 34 Interim Financial
Reporting and in compliance with the South African Companies Act, No 61 of
1973, as amended. The condensed consolidated interim results for the six months
are prepared on the historical cost basis, with the exception of certain
financial instruments and properties which are measured at fair value. The
policies are consistent with those of the previous annual financial statements.
2. Notes to the income statement
Unaudited Unaudited Audited
six months six months year
ended ended ended
31 March 31 March 30 September
2010 2009 2009
Ordinary shares (`000)
- In issue 718 355 718 355 718 355
- Weighted average 718 355 718 355 718 355
R`000 R`000 R`000
Determination of headline earnings:
Earnings attributable to ordinary 11 479 5 660 17 951
shareholders
Share of (profit)/loss of associate 297 - 588
and joint venture
Adjustment to fair value on - - (5 275)
investment properties including
those classified as held for sale
(Profits)/losses on disposal of - - (99)
property, plant and equipment
Total tax effect of the adjustments - - 728
Headline earnings 11 776 5 660 13 893
Headline earnings per share (cents) 1,64 0,79 1,9
Diluted headline earnings per share 1,64 0,79 1,93
(cents)
Net asset value per share (cents) 17,20 13,76 15,60
3. Johannesburg Stock Exchange ("JSE")
The directors of the company ensured compliance with the JSE Listings
Requirements during the period under review.
4. Segmental reporting
Touring/ Travel Tour
Marine Coaching Agencies Operators Other Total
R`000 R`000 R`000 R`000 R`000 R`000
31 March 2010
Revenue 27 725 58 179 43 641 71 015 (209) 200 351
Operating profit 2 282 10 616 2 375 9 582 (10 626) 14 229
31 March 2009
Revenue 36 142 55 193 39 604 77 983 493 209 415
Operating profit 4 543 8 703 (1 261) 4 632 (8 716) 7 901
30 September
2009
Revenue 70 727 114 536 79 594 138 420 8 507 411 784
Operating profit 3 603 12 472 (3 362) 15 605 (5 752) 22 566
OVERVIEW
The results for the six month period show a substantial improvement on 2009.
Although sales continue to be affected by the general economic malaise, the
measures taken in the last twelve months to improve product and efficiency and
manage overheads have resulted in improved performance in the Travel & Tourism
businesses.
As anticipated, the Marine businesses have struggled in the period under review
as the effects of the economic slowdown really took hold in this period.
Fortunately, steps taken in anticipation of this have allowed us to manage this
slowdown and mitigate the effect.
Cash flow was healthy in the period with cash of R29 million generated from
operating activities. The cash generated was utilised to settle long-term
borrowings based upon expected strong cash generation going forward as well as
to recapitalise and improve fleet in both Hylton Ross Tours and Thompsons
Touring and Safaris.
REVIEW OF OPERATIONS
Thompsons Holidays (the Outbound division)
The Outbound division is a wholesale supplier of travel-related products and
holidays to the South African market. The domestic travel market remains soft,
affected by the volatile Rand and concerns over the global economy. In mid
2009, steps were taken to improve sales while concentrating on managing costs
and generally improving control within the business. These steps have resulted
in improvement in performance although we believe there is still room for
future gains.
Thompsons Africa (the Inbound division)
The Inbound division is a tour wholesaler and destination marketing
organisation that sells Africa to the world. Sales continue to be affected by
the slowdown in worldwide tourism although the trend is reversing and business
is showing improved growth over 2009. The steps taken over the past eighteen
months to improve efficiency have resulted in a good performance for the period
and the business is well placed for the future.
Thompsons Touring and Safaris
The Touring division provides tourism products for the Incoming division. These
include escorted tours, general sightseeing and open vehicle game drives in the
National Parks which are offered throughout Southern Africa. Turnover increased
for the period and with effective cost management has resulted in improved
performance for the six month period.
Thompsons Travel
Thompsons Travel is a Corporate and Retail travel agency with offices in
Johannesburg, Cape Town and Durban. The Corporate division has been less
affected by the downturn but continues to trade profitably. The performance of
the Leisure division has improved over 2009 as a result of concentration on
improved value and service and better cost management.
Pentravel
Pentravel is a chain of 23 retail travel outlets located in major shopping
malls throughout South Africa. The division has seen an increase in sales as a
result of the focus on service and value and the business continues to manage
costs well.
Hylton Ross Tours
Hylton Ross Tours operates coaches and vehicles for hire and charter in the
domestic travel market and also provides day tours in and around the Western
Cape and the Garden Route. It is a well-known brand in the travel market and
enjoys a substantial market share in the Western Cape. The business is trading
well and is continually investing in and improving its fleet.
Thompsons Gateway
Gateway, a sales office in Singapore, has seen a decline in sales out of its
markets in South East Asia. This is due to the global economic downturn and to
the strength of the Rand.
Planet Africa
Planet Africa is a joint venture operation formed to sell and market Southern
Africa to Far East tourists. In spite of a slowdown in volumes, the division
continues to trade profitably.
Manex
Manex is a supplier to the yacht building industry as well as a distributor of
a number of leading brands in the Scuba Diving and Leisure sector. The business
has been affected by pressure on margins and turnover.
Central Boating
Central Boating is a market leader in the importation and distribution of
leisure marine equipment to both the yachting and power boat sectors of the
market in South Africa. Consistent with Manex, the business has been affected
by the global economy and has seen pressure on margins.
Prospects
Difficult market conditions remain an ongoing challenge for management with the
impact of the World Cup still to be seen. Despite these difficult market
conditions, the Company is cautiously optimistic about its business prospects
over the next twelve months.
On Behalf of the Board
M Tollman DK Standage
Executive Chairman Financial Director
1 June 2010
Auditors
Mazars were re-elected as auditors in 2010.
Sponsor
Arcay Moela Sponsors (Proprietary) Limited
(Registration number 2006/033725/07)
Directors
M Tollman (Executive Chairman)MA Ness*VET O`HanaDD Hosking**LA PampallisG
Tollman***DK Standage (Financial Director)DT MadlalaR Arendse* British **
New Zealand *** USA Non-Executive
Company secretary
DK Standage
Registered office
6 Hood Avenue, Rosebank, 2196
Transfer secretaries
Computershare Investor Services (Pty) Limited
Ground Floor, 70 Marshall Street, Johannesburg, 2001
(PO Box 61051, Marshalltown, 2107)
For further information on group activities, please write to:
The Company Secretary, Cullinan Holdings Limited
PO Box 41032, Craighall, 2024
Date: 01/06/2010 07:05:06 Produced by the JSE SENS Department.
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