| Wed 28 Dec 2011, 9:23 | | CUL - Cullinan Holdings Ltd - Audited condensed consolidated results for the |
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CUL CULP
CUL
CUL - Cullinan Holdings Ltd - Audited condensed consolidated results for the
year ended 30 September 2011
CULLINAN HOLDINGS LTD
TOURISM AND LEISURE
(Incorporated in the Republic of South Africa)
Registration number: 1902/001808/06
(Share code: CUL ISIN: ZAE000013710)
(Preference Share code: CULP ISIN: ZAE000001947)
("Cullinan" or "the company" or "the group")
AUDITED CONDENSED CONSOLIDATED RESULTS FOR THE YEAR ENDED 30 SEPTEMBER 2011
GROUP FINANCIAL HIGHLIGHTS
Headline earnings - down 18%
Attributable earnings - down 21%
Cash generated in the year - R81m
Group condensed statement of financial position
As at As at
30 September 30 September
2011 2010
R`000 R`000
ASSETS
Non-current assets 123 258 132 359
Property, plant and equipment 58 702 65 710
Goodwill 33 786 33 601
Intangible assets 18 043 22 720
Investment properties 5 700 3 900
Investment in associate companies 2 952 3 166
Investment in joint venture 2 764 1 983
Deferred tax asset 1 311 1 279
Current assets 314 963 253 602
Inventories 18 165 17 033
Accounts receivable 110 575 136 144
Other financial asset 4 395 -
Taxation 1 999 2 156
Cash resources 179 829 98 269
Non-current assets held for sale 2 200 4 000
Total assets 440 421 389 961
EQUITY AND LIABILITIES
Ordinary shareholders` equity 161 139 138 704
Preference shareholders` equity 546 546
Non-controlling interest 19 1
Total shareholders` equity 161 704 139 251
Non-current liabilities 17 373 15 538
Deferred tax liability 5 200 3 603
Long term loans - -
Operating lease accrual 11 673 11 435
Preference shares 500 500
Current liabilities 261 344 235 172
Short-term portion of long term loan 31 -
Bank overdrafts 243
Operating lease accrual - 2
Accounts payable 259 572 225 817
Other financial liabilities - 1 801
Taxation 67 1 055
Preference dividends 15 1
Provisions 1 416 6 462
Total equity and liabilities 440 421 389 961
Group condensed statement of comprehensive income
Year ended Year ended
30 September 30 September
2011 2010
R`000 R`000
Revenue 393 747 405 069
Turnover 390 783 401 069
Net operating expenses (363 531) (367 729)
Operating profit 27 252 33 340
Finance income 2 964 4 000
Finance expenses (151) (56)
Preference dividends paid (55) (55)
Share of (loss) / profit of associates (214) 330
Share of profit of joint venture 781 742
Profit before taxation 30 577 38 301
Tax expense (8 502) (10 445)
Profit for the year 22 075 27 856
Other comprehensive income:
Exchange differences on translating
foreign operations (228) (10)
Revaluation of land and buildings 606 (600)
Total comprehensive income for the year 22 453 27 846
Profit attributable to:
equity holders 27 794 27 794
non-controlling interest 18 6
Total comprehensive income attributable to:
equity holders 22 435 27 184
non-controlling interest 18 6
Earnings per share (cents) 3.07 3.87
Diluted earnings per share (cents) 3.07 3.87
Group condensed statements of changes in equity
Year ended Year ended
30 September 30 September
2011 2010
R`000 R`000
Ordinary share capital
Balance at beginning of year 7 184 7 184
Issued during year - -
Balance at end of year 7 184 7 184
Share premium
Balance at beginning of year 59 905 59 905
Premium on issue of shares - -
Balance at end of year 59 905 59 905
Share capital reduction reserve fund
Balance at beginning of year 20 876 20 876
Balance at end of year 20 876 20 876
Capital redemption reserve fund
Balance at beginning of year 4 4
Balance at end of year 4 4
Foreign currency translation reserve
Balance at beginning of year (1 583) (1 573)
Reserve on translation of foreign subsidiary (228) (10)
Balance at end of year (1 811) (1 583)
Revaluation reserve
Balance at beginning of year 264 864
Revaluation of land and buildings 606 (600)
Balance at end of year 870 264
Accumulated profit / (loss)
Balance at beginning of year 52 054 34 165
Attributable income for year 22 057 27 794
Balance at end of year 74 111 61 959
Ordinary shareholders` equity 161 139 148 609
Non-controlling interest
Balance at beginning of year 1 5
Profit attributable to non-controlling interest for year 18 62
Dividend paid to non-controlling interest - (66)
Balance at end of year 19 1
Preference shareholders` equity
Balance at beginning of year 500 500
Balance at end of year 500 500
Total comprehensive income
Profit for year 22 075 27 856
- Attributable to equity shareholders 22 057 27 794
- Attributable to non-controlling interest 18 62
Translation of foreign subsidiary (228) (10)
Revaluation of land and buildings 606 (600)
22 453 27 246
Group condensed statement of cash flows
Year ended Year ended
30 September 30 September
2011 2010
R`000 R`000
Net cash inflow / (outflow) from operating activities 85 490 62 529
Net cash outflow from investing activities (4 173) (23 618)
Net cash outflow from financing activities - (37 172)
Net (decrease) / increase in cash and cash equivalents 81 317 1 739
Cash and cash equivalents at beginning of the year 98 269 96 530
Cash and cash equivalents at end of the year 179 586 98 269
Notes
1 Basis of preparation
This abridged report is prepared in accordance with the Framework concepts and
the measurement and recognition requirements of IFRS and the AC 500 standards
issued by the Accounting Practices Board and contains the information required
by IAS 34 Interim Financial Reporting.
The condensed consolidated results for the year are prepared on the historical
cost basis, with the exception of certain financial instruments and properties
which are measured at fair value. The policies and methods of calculation are
consistent with those of the most recently issued annual financial statements
and should be read in conjunction with these Financial Statements which have
been prepared in compliance with the Companies Act, 2008.
2 Property, plant and equipment
During the year the group purchased property, plant and equipment of R12.235
million (2010: R27.068 million) and disposed of property, plant and equipment
with a book value of R8.702 million (2009: R0.623 million).
3 Notes to the statement of comprehensive income
Year ended Year ended
30 30
2011 2010
Ordinary shares (`000)
- In issue 718 355 718 355
- Weighted average 718 355 718 355
R`000 R`000
Determination of headline earnings:
Earnings attributable to ordinary shareholders 22 057 27 794
Adjustment to fair value on investment properties - (560)
Tax effect - 78
Profit / (Losses) on disposal
of property, plant and equipment 105 (535)
Tax effect (29) 131
Headline Earnings 22 133 26 908
4 Related parties
The group`s head offices and the Thompsons Johannesburg operation in Rosebank
are leased from Motolla Property Investments (Pty) Limited, an entity to which
one of the group`s shareholders, Travcorp Investments Limited, is a related
party. The registered office and Central Boating premises are also leased from
Motolla Property Investments (Pty) Limited. Rentals paid to Motolla for the year
were market related and amounted to R8.653 million (2009: R7.288 million).
5 Audit
The results have been audited by the Group`s auditors, Mazars. Their unqualified
audit report is available for inspection at the company`s registered office.
6 Segmental reporting
Tour Coaching Retail Marine and Head
Operators and Touring Travel
Boating Office
R`000 R`000 R`000 R`000 R`000
30 September 2011
Revenue 147 274 97 842 101 859 46 831 211
Operating profit 21 340 9 977 13 380 (408) (17 037)
30 September 2010
Revenue 143 759 125 121 88 875 49 837 (2 523)
Operating profit 20 982 20 820 4 289 2 298 (15 049)
7 Contingent liabilities
In the preceding year, the company received a summons from the Powerpack Pension
Fund (in liquidation) claiming payment of approximately R45 million plus
interest relating to pension fund transactions during 1999.
Cullinan disputes liability and will be defending the claim. Details regarding
this matter have been disclosed in the notes of the company`s 2011 annual
financial statements.
Annual Financial Statements
These group condensed financial statement extracts should be read in conjunction
with the audited Annual Financial Statements issued on the 28th December 2011.
The Group Financial statements were prepared by D Standage, the Financial
Director of the Group.
Annual General Meeting
The annual general meeting of Shareholders will be held in the boardroom, 2nd
floor, Travel House, 6 Hood Avenue, Rosebank at 10-00 on the 23rd February 2012
to transact the business as stated in the annual general meeting notice forming
part of the Integrated Annual Report.
Overview
It gives me great pleasure to report on the results for the Cullinan Group of
Companies for the year ended 30 September 2011. The results reflect the tough
economic conditions being experienced worldwide, but it is pleasing to note that
despite this, most operating divisions improved their performance. The business
also generated significant cash flows with cash on hand at year end increasing
by 183% to R179m, boosted by good cash management and strong inflows from the
COP17 accommodation contract awarded to Thompsons Africa.
The Group also continued to search for opportunities to expand and entered into
a number of new ventures during the year, which are expected to come on stream
and contribute in 2012. These include the appointment of Thompsons Africa as the
approved Accommodation provider for COP17, acquisition of Ikapa Tours and Travel
and the appointment of Cullinan to run Naiade Holidays.
Performance Overview
The group saw a 18% decline in headline earnings per share, primarily due to the
decrease in revenue in the Inbound and Coaching divisions. These divisions felt
the effects of tough economic conditions worldwide and the impact of the strong
Rand on Inbound Tourism. In addition, the prior year comparatives were boosted
by the World Cup which contributed strongly to both the Inbound and Coaching
divisions revenue in 2010.
Conversely, the continuing improvement in product, efficiency and management of
the Outbound and Retail Travel businesses, assisted by the resilient local
economy and strength of the Rand, resulted in a very good performance from these
divisions.
The Marine businesses continue to struggle in the depressed boating market which
has resulted in decreased revenue and pressure on margins.
Prospects
The prospects for the Cullinan Group in 2012 are positive. While external
challenges exist due to factors such as the weak global economy, we are
satisfied that our business units are well managed and prepared for the year
ahead. Our well balanced portfolio of inbound and outbound businesses provides
diversfication of risk against external factor such as the movement in the Rand.
The group will also start to see the benefits of the various acquisitions and
business opportunities entered into in the latter part of the 2011 Financial
year. Lastly, based upon the improvements in the business and the improved
financial position of the group and together with our positive view of the year
ahead, the Group will continue to actively look for acquisitions. The Group also
intends to resume its dividend policy which was suspended in 2008 with the
intention to resume payments of dividends in 2012.
On Behalf of the Board
M Tollman D Standage
Executive Chairman Financial Director
Auditors
Mazars were re-elected as auditors in 2011
Sponsor
Arcay Moela Sponsors (Pty) Limited
(Registration number 2006/033725/07)
Directors
M Tolman, MA Ness *$, DD Hosking **, LA Pampallis, G Tollman***,
DK Standage, DT Madlala $, R Arendse $, S Nhumayo $, A Azoulay $
* British, ** New Zealand, *** USA, Non-Executive, $ Independent Non Executive.
Company secretary
B Allison
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: 28/12/2011 09:23:01 Produced by the JSE SENS Department.
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