| Tue 29 Nov 2011, 17:00 | | CKS - Crookes Brothers Limited - Unaudited interim results and cash dividend |
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CKS
CKS
CKS - Crookes Brothers Limited - Unaudited interim results and cash dividend
declaration for the six months ended 30 September 2011
CROOKES BROTHERS LIMITED
Registration number: 1913/000290/06
Share code: CKS
ISIN: ZAE000001434
("Crookes" or "the company" or "the group")
UNAUDITED INTERIM RESULTS and CASH DIVIDEND DECLARATION for the six months
ended 30 September 2011
COMMENTS ON THE RESULTS
Due to improved agricultural conditions and good prices for the group`s major
crops, particularly sugar cane, headline earnings per share for the six months
ended 30 September 2011 are 173% higher than for the same period in the
previous year.
Basic earnings per share for the prior year were significantly inflated by the
inclusion of the net capital profit of R87 million from the sale of the
group`s Komati Estate.
Operating profits are up 200% with each segment performing as follows:
Sugar cane: Production in Swaziland, Mpumalanga and Zambia achieved
expectations while the production from the group`s KwaZulu-Natal (KZN) estates
was negatively impacted by the drought of the previous year. Operating profits
were boosted by the excellent South African sucrose price. The Swaziland and
Zambia prices were less favourable but have potential to improve due to the
strong global market and recent local currency weakness.
Bananas: The recent restructuring of this division has yielded excellent
results in terms of yields and quality, but the positive impact of the
replanting being undertaken will only materialise over the next two years.
Deciduous fruit: Losses are due mainly to the seasonality of the income and to
the large-scale replant of old orchards currently in progress.
Grain and sheep: With harvesting largely complete, excellent yields following
good winter rains and firm prices, have contributed to sound results from this
division. Mutton and wool prices are also favourable at present.
Net investment activity in the period under review comprised expansion of the
Swaziland sugar cane and Western Cape deciduous fruit operations as the group
selectively expands around its core operating nodes and in crops in which it
has expertise.
PROSPECTS
The board again cautions against using interim figures to project full year
results, due to the varying seasonality of the diverse crops in the group`s
portfolio.
Due to the volatility of exchange rates and prices for the group`s products it
is considered inappropriate to provide a forecast of expected headline
earnings for the full year at this stage.
Several significant projects are currently being implemented with the aim of
enhancing future earnings:
- The area under sugar cane on the existing Swaziland Estate is being expanded
by 570 hectares to 2 190 hectares, with the prospect of a further 500 hectares
expansion, also on currently owned land, should water rights be secured;
- An additional area of 250 hectares under sugar cane has been purchased in
Mpumalanga, subsequent to the end of the interim reporting period, and a
further 85 hectares leased on favourable terms;
- Additional sugar cane area of 220 hectares has been added on leased land at
the KwaCele joint venture in KZN, funded by grants to the community property
trust;
- Expansion of the deciduous fruit operations by a further 100 hectares is
being undertaken on currently owned land, which will increase the total area
under deciduous fruit to 490 hectares; and
- The investigation of property development opportunities on the Renishaw farm
is proceeding according to plan with final environmental impact assessment
(EIA) documentation having been recently submitted to the authorities.
INTERIM CASH DIVIDEND DECLARATION
The board is mindful of balancing growth prospects with generating a
competitive yield to shareholders, and considers its capital investment
prospects together with seeking to at least match the dividend yields and
payout ratios of its peer group of JSE-listed food and agricultural companies.
A dividend of 65.0 cents (2010: 45,0 cents) per share, for the six-month
period ended 30 September 2011, has been declared payable to shareholders
recorded in the books of the company at the close of business on the record
date, Friday, 6 January 2012.
The salient dates of the declaration and payment of this dividend is as
follows:
Last day to trade cum-dividend Thursday, 29 December 2011
Shares commence trading ex-dividend Friday, 30 December 2011
Record date Friday, 6 January 2012
Payment date Monday, 9 January 2012
Share certificates may not be dematerialised or rematerialised between Friday,
30 December 2011 and Friday, 6 January 2012, both days inclusive.
For and on behalf of the board
G P Wayne G S Clarke
Chairman Managing Director
Renishaw 25 November 2011
ACCOUNTING POLICIES
The unaudited interim results of the group have been prepared in accordance
with IAS 34 - Interim Financial Reporting as well as the AC 500 Standards as
issued by the Accounting Practices Board, the Listings Requirements of the JSE
Limited and the requirements of the South African Companies Act. 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.
REGISTERED OFFICE AND POSTAL ADDRESS
PO Renishaw, KwaZulu-Natal, 4181
TRANSFER SECRETARIES
Computershare Investor Services (Pty) Limited
PO Box 61051, Marshalltown, 2107
DIRECTORS
G P Wayne * (Chairman), G S Clarke (Managing), P J Barker (Financial),
P Bhengu *, C J H Chance *, J A F Hewat *, P G Joubert *, P Mnganga*,
M T Ruther ford *, R E Stewart* * Non-executive director
COMPANY SECRETARY
Highway Corporate Services (Pty) Limited
SPONSOR
Sasfin Capital
(A division of Sasfin Bank Limited)
WEBSITE
www.cbl.co.za
CONDENSED CONSOLIDATED
STATEMENT OF COMPREHENSIVE INCOME
Audited
Unaudited Year
Six months ended ended
30 Sept 30 Sept 31 March
(R`000) 2011 2010 2011
Revenue 206 796 190 421 298 303
Operating profit 52 297 17 430 25 794
Share of profit of associate companies - - 51
Investment income 3 030 1 198 5 412
Finance costs (2 503) (3 825) (4 353)
Capital items - 92 972 93 741
Profit before tax 52 824 107 775 120 645
Income tax expense (14 917) (6 528) (7 439)
Profit for the period 37 907 101 247 113 206
Other comprehensive income/(loss)
Investment revaluation 262 13 1 542
Exchange differences on translating
foreign operations 5 127 (3 609) (2 646)
Other comprehensive income/(loss)
for the period, net of tax 5 389 (3 596) (1 104)
Total comprehensive income
for the period 43 296 97 651 112 102
Profit attributable to:
Owners of the company 34 413 99 582 112 828
Non-controlling interests 3 494 1 665 378
37 907 101 247 113 206
Total comprehensive income
attributable to:
Owners of the company 39 802 95 986 111 724
Non-controlling interests 3 494 1 665 378
43 296 97 651 112 102
Earnings per share:
Basic (cents) 277,9 804,1 911,0
Diluted (cents) 276,2 803,2 905,5
Dividends/cash distributions per share:
Interim (cents) 65.0 45.0 45.0
Special (cents) - 50.0 50.0
Final (cents) - - 65.0
HEADLINE EARNINGS RECONCILIATION
Profit for the period attributable to
owners of the company 34 413 99 582 112 828
Adjusted for:
Capital (profit) on disposal of land,
buildings and bearer biological assets - (92 972) (93 741)
(Profit) on disposal of property,
plant and equipment (397) - (499)
Tax effect of the above 111 5 883 6 662
Headline earnings 34 127 12 493 25 250
Headline earnings per share:
Headline earnings (cents) 275,6 100,9 203,9
Headline earnings (diluted) (cents) 273,9 100,8 202,6
CONDENSED CONSOLIDATED
STATEMENT OF CHANGES IN EQUITY
Audited
Unaudited Year
Six months ended ended
30 Sept 30 Sept 31 March
(R`000) 2011 2010 2011
Balance at beginning of period 439 056 341 705 341 705
Share-based payment reserve movement - - 112
Total comprehensive income for the period 43 296 97 651 112 102
Ordinary dividends paid (8 052) (3 096) (14 863)
Total equity 474 300 436 260 439 056
CONDENSED CONSOLIDATED
SUPPLEMENTARY INFORMATION
Audited
Unaudited Year
Six months ended ended
30 Sept 30 Sept 31 March
(R`000) 2011 2010 2011
Depreciation 6 699 6 499 13 742
Capital expenditure
- Incurred 17 177 13 982 20 441
Capital commitments
- Contracted 12 177 1 702 4 699
- Authorised but not
contracted 7 910 1 478 12 700
20 087 3 180 17 399
Guarantees 56 18 18
Contingent liabilities 702 643 682
Contingent assets* 25 300 24 500 25 300
Net asset value per share 3 830 3 522 3 545
Ordinary number of
shares in issue 12 385 000 12 385 000 12 385 000
Weighted average number of
ordinary shares in issue 12 385 000 12 385 000 12 385 000
Weighted average number of
diluted shares in issues 12 460 360 12 398 591 12 460 360
* Interest claim relating to the sale of the Komatipoort estate subject to
ongoing legal process.
CONDENSED CONSOLIDATED
STATEMENT OF FINANCIAL POSITION
Unaudited Audited
30 Sept 30 Sept 31 March
(R`000) 2011 2010 2011
ASSETS
Non-current assets 328 657 282 125 295 621
Property, plant and equipment 198 027 164 799 177 847
Bearer biological assets 113 258 104 714 101 730
Unlisted investments 6 881 3 891 5 576
Investment in associate companies 9 818 8 063 9 818
Unsecured loan: long term 673 658 650
Current assets 346 961 316 480 303 664
Inventories 12 853 12 370 19 348
Biological assets: crops and livestock 114 859 89 464 123 677
Trade and other receivables 59 969 43 686 18 326
Taxation - 4 054 5 466
Other financial assets: preference shares 128 671 125 938 129 004
Cash and cash equivalents 30 309 30 968 7 811
Unsecured loan: short term 300 - 32
Assets classified as held for sale - 10 000 -
Total assets 675 618 598 605 599 285
EQUITY AND LIABILITIES
Capital and reserves 474 300 436 260 439 056
Share capital and premium 3 208 3 208 3 208
Retained earnings 460 239 432 399 433 878
Investment revaluation reserve 5 393 3 602 5 131
Foreign currency translation reserve 1 614 (4 476) (3 513)
Share-based payment reserve 421 308 420
Shareholders` interest 470 875 435 041 439 124
Outside shareholders in subsidiary 3 425 1 219 (68)
Non-current liabilities 133 530 113 963 116 928
Deferred taxation 56 809 47 561 53 103
Long-term borrowings: interest-bearing 18 260 9 320 6 559
Long-term liability: interest free 43 925 42 434 41 076
Post-employment obligations 14 536 14 648 16 190
Current liabilities 67 788 48 382 43 301
Trade, other payables and provisions 43 164 32 945 20 755
Short-term borrowings 19 074 5 437 22 546
Taxation 5 550 - -
Liabilities directly associated with
assets classified as held for sale - 10 000 -
Total equity and liabilities 675 618 598 605 599 285
CONDENSED CONSOLIDATED
STATEMENT OF CASH FLOWS
Audited
Unaudited Year
Six months ended ended
30 Sept 30 Sept 31 March
(R`000) 2011 2010 2011
Operating profit for the period 52 297 17 430 25 794
Non-cash items 13 344 25 824 16 991
Operating cash flows before
movements in working capital 65 641 43 254 42 785
Net outflow from changes
in working capital (12 739) (3 420) (1 224)
Finance costs (2 503) (3 825) (4 353)
Taxation paid (1 003) (19 073) (20 470)
Net cash flows from operating activities 49 396 16 936 16 738
Net investing activities
Purchase of investments (1 333) (125 956) (129 004)
Consideration on disposal of property,
plant and equipment 774 199 745 201 568
Other net investment activities (26 516) (1 611) (16 628)
Net cash flows before dividends
and financing activities 22 321 89 114 72 674
Dividends paid (8 052) (3 096) (14 862)
Net increase/(decrease) in borrowings 8 229 (58 388) (53 339)
Net increase in cash and
cash equivalents 22 498 27 630 4 473
Cash and cash equivalents at
beginning of period 7 811 3 338 3 338
Cash and cash equivalents at
end of period 30 309 30 968 7 811
CONDENSED CONSOLIDATED
GROUP SEGMENTAL ANALYSIS
Audited
Unaudited Year
Six months ended ended
30 Sept 30 Sept 31 March
(R`000) 2011 2010 2011
Revenue
Sugar cane 154 782 136 344 171 858
Bananas 23 284 25 786 50 359
Deciduous fruit 19 635 15 486 45 937
Grain and sheep 1 887 1 733 13 710
Other operations 7 208 11 072 16 439
206 796 190 421 298 303
Operating profit
Sugar cane 63 589 37 341 46 344
Bananas 3 926 (62) 2 630
Deciduous fruit (5 279) (6 572) (586)
Grain and sheep 3 415 1 543 4 572
Other operations/sundry income 2 845 (295) 2 156
Group administration (16 199) (14 525) (29 322)
52 297 17 430 25 794
29 November 2011
Sponsor
Sasfin Capital
(a division of Sasfin Bank Limited)
Date: 29/11/2011 17:00:02 Produced by the JSE SENS Department.
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