| Tue 29 May 2012, 15:00 | | 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 2012 and final dividend declaration
CROOKES BROTHERS LIMITED
Registration No. 1913/000290/06
Share code : CKS ISIN: ZAE000001434
("Crookes" or "the Company" or "the Group")
ABRIDGED AUDITED GROUP RESULTS FOR THE YEAR ENDED 31 MARCH 2012 AND
FINAL DIVIDEND DECLARATION
The audited results of the group for the year ended 31 March 2012 together
with those of the previous year are set out below:
ABRIDGED CONSOLIDATED STATEMENT OF
COMPREHENSIVE INCOME 31 March 31 March
(R000`s) Note 2012 2011
Revenue 361 964 298 303
Operating profit 98 345 25 794
Share of profit of associate companies 120 51
Investment income 1 9 722 5 412
Finance costs (3 467) (4 353)
Capital items 4 627 93 741
Profit before taxation 109 347 120 645
Taxation expense (27 163) (7 439)
Profit for the year 82 184 113 206
Other comprehensive loss
Investment revaluation 1 (1 516) 1 542
Exchange differences on translating foreign
operations (160) (2 646)
Other comprehensive loss for the year, net of
tax (1 676) (1 104)
Total comprehensive income for the year 80 508 112 102
Profit attributable to:
Owners of the company 78 261 112 828
Non-controlling interests 3 923 378
82 184 113 206
Total comprehensive income attributable to:
Owners of the company 76 585 111 724
Non-controlling interests 3 923 378
80 508 112 102
Note:
1. includes dividend in specie of Pioneer shares
from Overberg Agri Limited of R3.661 million,
in turn reducing the revaluation reserve.
These shares were held for sale at year-end.
Earnings per share
Earnings per share (basic) (cents) 631.9 911.0
Earnings per share (diluted) (cents) 627.1 905.5
Dividends per share
Ordinary dividends declared per share (cents)
- interim 65.0 45.0
Ordinary dividends declared per share (cents)
- final 135.0 65.0
Special dividends declared per share (cents) 0.0 50.0
200.0 160.0
RECONCILIATION OF HEADLINE EARNINGS 31 March 31 March
(R000`s) 2012 2011
Profit for the year 78 261 112 828
Capital profit on disposal of land, buildings and
biological assets (4 627) (93 741)
Profit on disposal of plant and equipment (436) (499)
Tax effect of the adjustments (343) 6 662
Headline earnings 72 855 25 250
Headline earnings per share
Headline earnings per share (cents) 588.3 203.9
Headline earnings per share (diluted) (cents) 583.8 202.6
ABRIDGED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 31 March 31 March
(R000`s) 2012 2011
Shareholders` equity at beginning of year 439 056 341 705
Movements in:
Share-based payment reserve 131 112
Other comprehensive loss for the year (1 676) (1 104)
Changes in retained earnings 66 084 98 343
Net profit attributable to shareholders 82 184 113 206
Dividends paid (16 100) (14 863)
Shareholders` equity at end of year 503 595 439 056
ABRIDGED CONSOLIDATED STATEMENT OF FINANCIAL POSITION 31 March 31 March
(R000`s) 2012 2011
ASSETS
Non-current assets 370 916 295 621
Property, plant and equipment 236 952 177 847
Bearer biological assets 116 000 101 730
Unlisted investments 3 769 5 576
Investment in associate companies 13 257 9 818
Unsecured loan - long term 938 650
Current assets 359 940 303 664
Inventories 25 467 19 348
Biological assets - crops and livestock 164 380 123 677
Trade and other receivables 43 818 18 358
Taxation 1 572 5 466
Cash and cash equivalents 19 383 7 811
Other financial assets 101 756 129 004
Assets classified as held for sale 3 564 -
Total assets 730 856 599 285
EQUITY AND LIABILITIES
Capital and reserves 503 595 439 056
Share capital and premium 3 208 3 208
Retained earnings 496 039 433 878
Investment revaluation reserve 3 615 5 131
Foreign currency translation reserve (3 673) (3 513)
Share-based payment reserve 551 420
Shareholders` interest 499 740 439 124
Non-controlling interests 3 855 (68)
Non-current liabilities 147 473 116 928
Deferred taxation 71 456 53 103
Long-term borrowings - interest-bearing 16 373 6 559
Long-term liability - interest-free 45 174 41 076
Post-employment obligations 14 470 16 190
Current liabilities 79 788 43 301
Trade and other payables and provisions 38 642 20 755
Short term borrowings - interest-bearing 41 146 22 546
Total equity and liabilities 730 856 599 285
Net asset value per share (cents) 4 066 3 545
ABRIDGED CONSOLIDATED STATEMENT OF CASH FLOWS 31 March 31 March
(R000`s) 2012 2011
Operating profit 98 345 25 794
Adjustment for non-cash items (31 149) 16 991
67 196 42 785
Net working capital changes (4 986) (1 224)
Cash generated from operations 62 210 41 561
Cash flows from operating activities 53 274 16 738
Cash generated from operations 62 210 41 561
Finance costs (3 467) (4 353)
Taxation paid (5 469) (20 470)
Cash flows from investing activities (58 114) 55936
Proceeds on disposal of property, plant, equipment and
biological assets 1 035 20 1568
Net proceeds of other financial assets 24 730 (128 915)
Acquisition of property, plant, equipment and biological
assets (78 903) (20539)
Expansion of area under crop (10 623) -
Other investing activities 5 647 3 822
Cash flows from financing activities 16 412 (68 201)
Dividends paid (16 100) (14 862)
Net increase/(decrease) in borrowings 32 512 (53 339)
Net increase in cash and cash equivalents 11 572 4 473
Cash and cash equivalents at beginning of year 7 811 3 338
Cash and cash equivalents at end of year 19 383 7 811
Cash flow from operating activities - per share (cents) 430.1 135.1
OTHER GROUP SALIENT FEATURES 31 March 31 March
(R000`s) 2012 2011
Depreciation 13 974 13 742
Capital expenditure 76 149 20 441
Capital commitments
- Contracted 9 347 4 699
- Authorised but not contracted 53 018 12 700
62 365 17 399
Guarantees 771 700
Contingent assets - disputed interest on capital sale 28 900 25 300
Number of shares in issue 12 385 000 12 385 000
Weighted average number of shares on which earnings
per share (and headline earnings per share) are
based 12 385 000 12 385 000
ABRIDGED CONSOLIDATED SEGMENTAL ANALYSIS 31 March 31 March
(R000`s) 2012 2011
Revenue
Sugar cane 225 808 171 858
Bananas 51 700 50 359
Deciduous fruit 52 468 45 937
Grain and sheep 19 450 13 710
Other operations 12 538 16 439
361 964 298 303
Operating profit/loss)
Sugar cane 98 700 46 344
Bananas 7 463 2 630
Deciduous fruit 10 452 (586)
Grain and sheep 8 059 4 572
Other operations/sundry income 4 305 1 657
Profit on disposal of plant and equipment 436 499
Group administration (31 070) (29 322)
98 345 25 794
Preparer of annual financial statements for the year ended 31 March 2012:
These abridged annual financial statements have been prepared by Phillip
Barker (BA, ACMA) Group Financial Director
ACCOUNTING POLICIES
The abridged financial information has been prepared in accordance with the
framework concepts and the measurement and recognition requirements of
International Financial Reporting Standards (IFRS), the AC 500 standards as
issued by the Accounting Practices Board, the information as required by the
International Accounting Standards Board`s IAS 34: Interim Financial Reporting
and the JSE Limited`s Listing Requirements. The report has been prepared using
accounting policies that comply with IFRS which are consistent with those
applied in the financial statements for the year ended 31 March 2011. For a
better understanding of the Group`s financial position and the results of its
operations for the period and of the scope of the audit, the abridged
financial statements should be read in conjunction with the financial
statements from which the abridged financial statements were derived and the
audit report thereon.
AUDITED RESULTS
The auditors, Deloitte & Touche, have issued their opinion on the group`s
financial statements for the year ended 31 March 2012. The audit was conducted
in accordance with International Standards on Auditing and in compliance with
all requirements of the Companies Act, No 71 of 2008. 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. Any reference to future
financial performance included in this announcement has not been reviewed or
reported on by the auditors.
POST BALANCE SHEET EVENTS
There have been no material events between the balance sheet date and the date
of this report.
COMMENTS ON THE RESULTS
The group achieved record headline earnings in the past financial year, mainly
due to increased sugar cane production, significantly higher prices for major
products and successful resolution of underperforming operations.
Group revenue increased from R298 million in 2011 to R362 million, operating
profit from R25.8 million to R98.3 million and headline earnings from R25.3
million to R72.9 million.
Earnings decreased from R113.2 million to R82.2 million largely due to the
recognition in the prior reporting period of capital profits realised on the
sale of the Komati Estate to the National Department of Land Affairs.
Operating cash flow improved from R16.7 million in 2011 to R53.3 million and,
at the end of the financial year, the group`s aggregate of cash holdings and
redeemable investments was R121 million.
Sugar cane - Favourable climatic conditions in most areas assisted the
recovery of sugar cane production to previous highs despite the continuing
effect of the drought on the group`s KZN coastal estates. Substantial
increases in yields were recorded on our larger estates in Mpumalanga and
Swaziland. Prices in all the markets in which we operate showed significant
improvement over those received in the previous season.
Deciduous - Financial results continue to be adversely affected by the high
level of replanting and development currently being undertaken in this
division. Firmer prices have resulted in an improved performance. As
previously indicated, long term prospects remain positive.
Bananas - The improvement in product quality and higher prices offset lower
production from reduced area under crop as a result of the current replant
programme, the benefits of which will be realised in the next financial year.
Grain and Sheep - Substantially higher grain yields, due to excellent growing
conditions, more than offset the negative effect of lower prices. The sheep
operation experienced another good year with mutton and wool prices continuing
to climb.
Renishaw - The evaluation of the 1 800 hectare Renishaw cane farms for
property development potential is progressing with the recent submission by
Renishaw Property Developments (Pty) Limited to the Department of Agriculture,
Environmental Affairs and Rural Development of the Environmental Impact
Assessment for mixed use development. The land claim over a portion of this
property is subject to continuing negotiation.
Investment activities
The following activities have been concluded in the year under review:
- Expansion of the area under sugar cane on the existing Swaziland estate by
493 hectares;
- Purchase of 2 farms, totalling 253 hectares under sugar cane, in Mpumalanga;
- Lease of a farm in the Malelane area of Mpumalanga, with 85 hectares under
sugar cane;
- Addition of 190 hectares of sugar cane area on leased land at the KwaCele
Farming joint venture in KwaZulu-Natal, funded by grants to the community
property trust;
- Expansion of the deciduous fruit orchards in the Western Cape by a further
40 hectares
- Disposal of the deciduous fruit farm Belleview, 43 hectares in extent, to
the Department of Rural Development and Land Reform; and
- Approval of an agreement for a 50-year lease of 3 000 hectares of irrigable
land in Mozambique for macadamia nut and grain production.
Prospects
Projects now being implemented or under consideration should provide a
platform for strong growth in the medium term. With the substantial cash
resources available for investment, the group is well positioned to undertake
an expansion into Southern Africa in line with its strategic objectives.
DECLARATION OF FINAL CASH DIVIDEND
The board has declared a final gross cash dividend of 135.0 cents per share in
respect of the year ended 31 March 2012.
In respect of the normal final gross cash dividend, the following further
information is provided to shareholders in respect of the new dividends tax:
- The dividend has been declared from income reserves
- Secondary tax on companies (STC) credits available amount to 4.1
cents per share
- The dividend withholding tax rate is 15% resulting in a net dividend
of 115.365 cents per share to those shareholders who are not exempt
from the dividend withholding tax
- The Crookes Brothers Limited tax reference number is 9696/001/71/9
- The issued number of shares as at declaration date is 12 385 000.
The final dividend will be paid on Monday, 16 July 2012 to shareholders
recorded in the books of the company at the close of business on the
record date, Friday, 13 July 2012.
The salient dates relating to the ordinary dividend are as follows:
Last day to trade cum the dividend Friday, 6 July 2012
Shares commence trading ex the dividend Monday, 9 July 2012
Record date Friday, 13 July 2012
Payment date of the dividend Monday, 16 July 2012
Share certificates may not be dematerialised or rematerialised between Monday,
9 July 2012 and Friday, 13 July 2012, both days inclusive.
The above dividend is in addition to the interim dividend of 65.0 cents per
share which was declared on 29 November 2011 and brings the aggregate dividend
in respect of the year ended 31 March 2012 to 200.0 cents (2010: 160.0 cents)
per share.
NOTICE OF THE ANNUAL GENERAL MEETING AND POSTING OF ANNUAL REPORT
The annual report will be posted to shareholders on or about 30 June 2012.
Notice is hereby given that the annual general meeting of the company will be
held at 12:00 on 27 July 2012, at the Durban Country Club, 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 29 May 2012
Registered office and postal address
Renishaw, KwaZulu-Natal
PO Renishaw, 4181
Sponsor
Sasfin Capital
A division of Sasfin Bank Limited
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 Mnanga *,
M T Rutherford *, R E Stewart *
* Non-executive director
Secretary
Highway Corporate Services (Pty) Limited
Date: 29/05/2012 15:00:04 Produced by the JSE SENS Department.
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