| Tue 31 Aug 2010, 9:33 | | CVI - Capevin Investments Limited - Audited results for the year ended 30 June |
|
CVI
CVI
CVI - Capevin Investments Limited - Audited results for the year ended 30 June
2010 and notice of Annual General Meeting
Capevin Investments Limited
(Previously KWV Investments Limited)
Registration number: 1979/007263/06
JSE share code: CVI (Previously KWV)
ISIN number: ZAE000136446
("Capevin Investments" or "the company" or "the group")
Audited results for the year ended 30 June 2010 and notice of annual general
meeting
Intrinsic value per share of 9 148 cents
Increase in net asset value per share of 8,5%
Dividend per share of 182 cents
Abridged group income statement
2010 2009
R`000 R`000
Restated
Share of profit of associate 274 493 278 788
Gain/(loss) on dilution of interest in associate 1 413 (1 101)
Interest income 270 288
Administrative expenses (2 051) (1 412)
Profit before taxation 274 125 276 563
Taxation (80)
Profit for the year attributable to equity holders of the 274 125 276 483
company
Profit for the year attributable to equity holders of the 274 125 276 483
company
Non-headline items
Interest in adjustments of associate, net of taxation 592 (268)
(Gain)/loss on dilution of interest in associate (1 413) 1 101
Headline earnings 273 304 277 316
Earnings per share (cents)
- Attributable (basic and diluted) 652,7 658,3
- Headline (basic and diluted) 650,7 660,3
Number of shares in issue and weighted average 42 000 42 000
(thousands)
Abridged group statement of comprehensive income
2010 2009
R`000 R`000
Restated
Profit for the year attributable to equity 274 125 276 483
holders of the company
Share of other comprehensive loss of (9 842) (23 861)
associate
Other equity movements of associate 4 417 5 504
Total comprehensive income attributable to 268 700 258 126
equity holders of the company
Abridged group statement of financial position
2010 2009 2008
R`000 R`000 R`000
Restated Restated
Assets
Non-current assets
Investment in associate 1 525 214 1 404 938 1 295 813
Current assets 258 631 377
Cash and cash equivalents 254 612 361
Income tax receivable 4 19 16
Total assets 1 525 472 1 405 569 1 296 190
Equity and liabilities
Equity attributable to owners of the parent
Share capital 42 000 42 000 42 000
Reserves 1 482 254 1 362 635 1 253 596
Total equity 1 524 254 1 404 635 1 295 596
Current liabilities 1 218 934 594
Trade payables 90 128 11
Unclaimed dividends 1 128 806 583
Total equity and liabilities 1 525 472 1 405 569 1 296 190
Net asset value per share (cents) 3 629 3 344 3 085
Abridged group statement of changes in owners` equity
2010 2009
R`000 R`000
Restated
Ordinary shareholders` equity at beginning of year 1 404 635 1 295 596
Total comprehensive income 268 700 258 126
Unclaimed dividends written back 19 13
Dividends paid (149 100) (149 100)
Ordinary shareholders` equity at end of year 1 524 254 1 404 635
Dividend per share (cents)
- Interim 173 173
- Final 182 182
Abridged group statement of cash flows
2010 2009
R`000 R`000
Restated
Cash flows from operating activities
Administrative expenses (2 051) (1 412)
Increase in trade payables and unclaimed 303 353
dividends
Cash utilised in operations (1 748) (1 059)
Dividends received 150 205 150 205
Dividends paid (149 100) (149 100)
Interest received 270 288
Taxation received/(paid) 15 (83)
Net (decrease)/increase in cash and cash (358) 251
equivalents
Cash and cash equivalents at beginning of 612 361
year
Cash and cash equivalents at end of year 254 612
Notes to the abridged financial statements
1. Basis of presentation and accounting policies
The annual financial statements have been prepared in accordance with
the recognition and measurement principles of International Financial Reporting
Standards (IFRS), including IAS 34 - Interim Financial
Reporting; the requirements of the South African Companies Act of 1973, as
amended; and the Listings Requirements of the JSE Limited. The accounting
policies applied in the preparation of the abridged financial statements
are consistent with those used in the previous financial year, except for the
following new accounting standards, interpretations and amendments to IFRS:
- IAS 1 Revised - Presentation of Financial Statements
- IAS 27 Revised - Consolidated and Separate Financial Statements
- Amendment to IAS 38 - Intangible Assets
- IFRS 8 - Operating Segments
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 IAS 27 Revised, as detailed in note 3 below.
The company prepares `economic interest` financial statements in which its
interest in associate is equity accounted. These `economic interest` financial
statements are referred to as `group` financial statements.
2. Group structure
The sole investment of Capevin Investments is an effective interest of 29,12%
(2009: 29,22%), held via Remgro-Capevin Investments Limited, in
the issued share capital of Distell Group Limited ("Distell").
3. Restatement/reclassification 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 stock and merchandising
items should be expensed through the income statement
when such items
are earmarked for promotional purposes.
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 these restatements on
the group results are as follows:
Previously Currently
reported reported Difference
R`000 R`000 R`000
Statement of financial position at 30
June 2009
Investment in associate 1 411 998 1 404 938 (7 060)
Income statement for the year ended 30
June 2009
Share of profit of associate 278 990 278 788 (202)
Loss on dilution of interest in (1 101) (1 101)
associate
Profit for the year attributable to 277 786 276 483 (1 303)
equity holders of the company
Equity movements for the year ended 30
June 2009
Ordinary shareholders` equity at 1 260 671 1 253 813 (6 858)
beginning of year
Loss on dilution of interest in (1 101) 1 101
associate
(7 060)
Impact on earnings per share
Earnings attributable to ordinary 277 786 276 483 (1 303)
shareholders (R`000)
Headline earnings attributable to 277 518 277 316 (202)
ordinary shareholders (R`000)
Attributable earnings per share (cents) 661,4 658,3 (3,1)
Headline earnings per share (cents) 660,8 660,3 (0,5)
The comparative figure for current liabilities in the statement of financial
position has been reclassified to reflect the split between unclaimed dividends
and trade payables.
4. 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 that is at risk is
R8,6 million (2009: R8,6 million).
5. Segment report
Capevin Investments is an investment holding company with its sole investment
being an effective interest in Distell. The directors have not identified any
other segment to report on.
Commentary
Financial results
During the year under review Distell`s revenue grew by 8,7% to R11,8
billion on a sales volume increase of 7,3%. Although reasonable sales
volume growth was achieved, this year`s results were significantly impacted by
adverse exchange rates, and to a lesser extent, a less favourable sales mix.
Benefits derived from improved throughput and better operating efficiencies were
thus insufficient to protect margins and profitability. Consequently, operating
profit declined by 1,2% and the net operating
margin deteriorated to 11,8% (2009: 13,0%). Distell`s attributable and headline
earnings per share for the year under review decreased by 1,5%
and 1,2% respectively.
Included in the figure for administrative expenses are some once-off items
emanating from the compulsory offer. Administrative costs of a recurring
nature should in future only increase in line with inflation.
Prospects
The board of Distell said that although there were some early signs of a global
economic recovery in the latter part of the financial year under review, the
high levels of unemployment and limited disposable income are likely to continue
to impact consumer spending adversely. The trading environment is expected to
remain extremely competitive, both domestically and internationally.
However, Distell`s business is appropriately structured with a diversified and
exciting range of well-priced, quality brands in spirits, ciders,
ready-to-drinks and wines to enable Distell to compete effectively and to
continue to maximise trading opportunities and profitability.
Refer to www.distell.co.za for Distell`s detailed annual results.
Audited Financial Statements
PricewaterhouseCoopers Inc. has audited the results for the year ended 30 June
2010 and their unqualified opinion is available on request at
the company`s registered office.
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 3) of 182 cents (2009: 182 cents)
per share for the year ended 30 June 2010.
The salient dates of this dividend distribution are:
Last day to trade cum dividend Thursday, 16 September 2010
Trading ex dividend commences Friday, 17 September 2010
Record date Thursday, 23 September 2010
Date of payment Monday, 27 September 2010
Share certificates may not be dematerialised or rematerialised between Friday,
17 September 2010, and Thursday, 23 September 2010, both days inclusive.
Annual General Meeting
The company`s annual general meeting will be held at PSG Group`s office situated
at 1st Floor, Ou Kollege, 35 Kerk Street, Stellenbosch on Friday, 22 October
2010 at 09h00.
Signed on behalf of the board of directors
KI Mampeule CA Otto
Chairman Financial director
Stellenbosch
31 August 2010
Directors:
KI Mampeule (Chairman), AEvZ Botha, JJ Durand, JJ Mouton,
CA Otto, MH Visser
Secretary:
PSG Corporate Services (Pty) Ltd
Registered office:
1st Floor, Ou Kollege, 35 Kerk Street, Stellenbosch, 7600
PO Box 7403, Stellenbosch, 7599
Transfer secretaries:
Computershare Investor Services (Pty) Ltd, 70 Marshall Street, Johannesburg,
2001, PO Box 61051, Marshalltown, 2107
Sponsor:
PSG Capital
Auditor:
PricewaterhouseCoopers Inc.
Date: 31/08/2010 09:33:01 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
