| Thu 31 May 2001, 0:00 | | Super Group: Audited Results 2001 |
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Super Group Limited
(Incorporated in the Republic of South Africa)
(Registration number 1943/016107/06)
Super Group Limited
(Incorporated in the Republic of South Africa)
(Registration number 1943/016107/06)
AUDITED RESULTS 2001
HEADLINE EPS up 18%
STRONG BALANCE SHEET
HEADLINE EARNINGS up 20%
TOTAL CASH GENERATED EXCEEDS R1 BILLION
Consolidated Cash Flow Statement
31 March
Audited Audited*
2001 2000
R000 R000
Cash flows from operating activities
Cash receipts from customers 5 041 605 4 429 922
Cash paid to suppliers and employees 4 496 910 4 040 969
Cash generated from operations 544 695 388 953
Net interest cost (50 358) (89 993)
Net dividend paid (50 735) (16 649)
Taxation paid (9 517) (7 795)
Net cash inflow from
operating activities 434 085 274 516
Cash flows from investing activities
Net proceeds/(cost) on
disposal/acquisition of subsidiaries,
operations and associates 563 417 (123 265)
Purchase of fixed assets (net) (260 128) (209 845)
Movement in foreign currency
translation reserve 16 352 (3 124)
Investments and loans (54 467) 4 540
Net cash inflow/(outflow)
from investing activities 265 174 (331 694)
Cash flows from financing activities
Net cost of share buybacks and issues (140 400) (1 803)
(Decrease)/increase in
interest-bearing debt (9 535) 48 145
Net cash (outflow)/inflow
from financing activities (149 935) 46 342
Net increase/(decrease) in cash and
cash equivalents 549 324 (10 836)
Borrowings at beginning of year (103 624) (92 788)
Cash and cash equivalents/(borrowings)
at end of year 445 700 (103 624)
Consolidated Income Statement
31 March
Audited Audited*
2001 2000 %
R000 R000 Change
Turnover 4 505 319 3 864 337 16,6
Continuing operations 4 074 106 3 271 808
Discontinued operations 431 213 592 529
Profit before depreciation,
net interest cost and taxation 526 456 482 685 9,1
Depreciation 149 204 146 114
Operating income 377 252 336 571 12,1
Continuing operations 338 189 320 261
Discontinued operations 39 063 16 310
Net interest cost (50 358) (89 993)
Income from associates
(net of taxation) 58 734 83 237
Profit before exceptional items 385 628 329 815 16,9
Exceptional items 181 041 (35 422)
Profit before taxation 566 669 294 393 92,5
Taxation 62 110 51 153
Profit after taxation 504 559 243 240 107,4
Attributable to outside shareholders 11 232 13 632
Attributable earnings 493 327 229 608 114,9
Number of shares in issue (000)
- Total 347 140 347 140
- Weighted 337 914 332 890
- Diluted 355 348 343 557
Basic earnings per share (cents) 146,0 69,0 111,6
Headline earnings per share (cents) 94,0 79,6 18,1
Diluted earnings per share (cents) 142,9 68,5 108,6
Dividend per ordinary share (cents) 22,0 19,0 15,8
Calculation of headline earnings
Attributable earnings 493 327 229 608
Adjusted for:
Exceptional items (181 041) 35 422
(Profit)/loss on sale of
operations and change of interest
in associates - net (207 878) 24 730
Impairment of fixed property 26 837 -
Restructuring costs - 10 692
Amortisation of goodwill 5 517 -
Headline earnings 317 803 265 030 19,9
Consolidated Balance Sheet
31 March
Audited Audited*
2001 2000
R000 R000
ASSETS
Property, vehicles and equipment 799 911 862 191
Goodwill 35 100 -
Investments and loans 292 464 194 435
Deferred tax asset 35 243 72 200
Current assets 1 559 866 1 365 807
Inventories 429 542 379 700
Trade and other receivables 683 443 883 913
Cash resources 446 881 102 194
Total assets 2 722 584 2 494 633
EQUITY AND LIABILITIES
Capital and reserves
Share capital and reserves 1 174 826 926 769
Compulsorily convertible debentures 140 495 140 495
1 315 321 1 067 264
Outside shareholders' interest 32 866 34 547
Liabilities
Deferred tax liability 58 750 80 599
Fund reserves 90 509 15 129
Interest-bearing debt
- Long-term 247 153 266 574
- Short-term 81 036 277 475
Current liabilities 896 949 753 045
Total equity and liabilities 2 722 584 2 494 633
Net tangible asset value
per share (cents) 392,4 307,4
Statement of Changes in Shareholders' Equity
31 March
Audited Audited*
2001 2000
R000 R000
Balance at beginning of year 926 769 557 006
Change in accounting policy - 83 700
(Buyback)/issue of shares, net of costs (140 400) 114 572
Movement in other reserves (35 165) 8 584
Attributable earnings 493 327 229 608
Dividends (69 705) (66 701)
Balance at end of year 1 174 826 926 769
*Comparative figures are restated in accordance with changes in accounting
policies.
Segmental Analysis
Turnover Operating income
% in- % in-
2001 2000 crease 2001 2000 crease
Logistics 1 487 780 1 349 975 10 128 038 127 221 1
Automotive 2 580 920 2 140 277 21 124 121 109 006 14
Financial services 436 619 374 085 17 125 093 100 344 25
4 505 319 3 864 337 17 377 252 336 571 12
Commentary
The results for the year maintain Super Group's record of 14-years'
uninterrupted growth. Super Group has produced a five-year compound headline
EPS growth since listing of 34,5%. These solid results, in a difficult
trading environment, highlight the group's resilience to tough trading
conditions. For the second year growth has been organic.
Headline earnings are up 19,9% to R318 million. Headline earnings per share
at 94 cents is up 18% from 79,6 cents in 2000. The 2000 figures have been
restated for a change in accounting policy for deferred tax assets of R11,5
million and a prior year adjustment by UniFer which reduced our 2000 equity
accounted income by R6,4 million (2000 Headline EPS previously reported - 85
cents). Turnover has grown 16,6% and exceeds R4,5 billion. Profit before
exceptional items is up 16,9% to R386 million.
Group operating margin was maintained at similar levels to last year, which
is encouraging considering the contribution from the lower margin dealership
and parts businesses.
The balance sheet has improved significantly during the year with cash
generated of R1,1 billion. Shareholders' equity (excluding CCDs) exceeds R1
billion for the first time. Gearing at 44% (R442 million) last year has been
extinguished with net cash balances of R118 million at 2001 year end. This
is as a result of the disposal of non-core businesses which is in line with
the strategic direction of the group and strong cash flow from operations of
R545 million.
The strong balance sheet affords the group the ability to make acquisitions
and maintain optimal gearing.
Overview
Super Group continues to build the logistics and automotive divisions.
Further progress has been made in the strategy of transforming from an asset
based enterprise to one focused on technology, services and intellectual
capital while maintaining relevant asset ownership. To this end a further
600 trucks have been sold during the year, which has resulted in the
increase in depreciation charge being marginal. The full maintenance lease
business will be incorporated in the logistics division from 2002 financial
year as it transforms into an integral part of a holistic logistics
solution.
This has been a second planned year of consolidation without acquisitions.
Super Group has focused on efficiency optimisation, cost reduction, improved
financial reporting and systems enhancement. Management has been
strengthened where necessary and quality of earnings improved - business
fundamentals are sound.
Sale of businesses
Glasfit and the Payloads tipper businesses have been sold to management.
Previous detailed announcements of the excellent price achieved for the
disposal of BBR have been made. These sales have contributed significantly
to the elimination of gearing resulting in a strong balance sheet.
Share buybacks
The group is in the process of buying back its shares and announcements have
been made in this regard.
Change in accounting policies
In order to comply with revised GAAP statements, the group has changed its
accounting policies for goodwill and deferred tax assets.
* Whereas goodwill was previously written off against reserves, it is now
capitalised and amortised over its useful life in terms of AC 131.
* In terms of AC 102, deferred tax assets are recognised. The comparative
figures have been restated, the effect being a reduction of R11,5 million in
attributable earnings and the creation of a net deferred tax asset of R72,2
million.
Divisional overview
Logistics
Super Group continues to be the market leader in physical and intellectual
logistics on the African continent. The potential market is large and we are
only starting to make inroads. We have an excellent skills base and
competence in the design, management and execution of complicated supply
chains. Super Group has the ability to add value and create large savings
for an ever increasing client base.
The intellectual logistics businesses are exceeding expectations despite
being in an investment phase. Resources invested have been expensed in the
current year and are expected to produce results in future years. We are
currently working with several clients on large supply chain solutions and
are short-listed for other projects. Warehousing and distribution had
another good year with several new contracts being awarded. We are market
leaders in automotive parts logistics and FMCG (fast moving consumable
goods) logistics. Other niche areas are being developed.
The trading environment in our African transport, logistics and forwarding
business was the worst in its 14-year history. Despite this, rand profit
growth was achieved while US dollar earnings were slightly down on last
year. Management performed pro-actively in the circumstances and is well
versed in managing risk in Africa. The Democratic Republic of Congo appears
to be stabilising with prospects of peace - this will yield strong US$
earnings in the future.
Automotive
All the businesses in the automotive division had an excellent year. The
automotive parts business became market leader while maintaining margins in
a flat market. The automotive parts business was split into retailing and
logistics. Parts logistics is the market leader in its first year.
Dealerships produced earnings growth in excess of 30% and have operating
margins in excess of 3,5%. Our seven national used truck outlets performed
well.
Financial services
BBR was sold to Chubb for R556 million. UniFer's results were below
expectations but prospects are encouraging.
Full maintenance leasing had a solid year and the highlight was the award of
the 6 000 vehicle fleet of the City of Johannesburg on a R2,4 billion
contract. This will enhance earnings in the future. This contract has good
downstream synergies for other group companies including: dealerships,
logistics technology, parts, servicing, panelbeating and used truck sales.
A 30% stake in our full maintenance leasing company Super Fleet was sold to
an empowerment partner confirming our commitment to the empowerment process.
The insurance and treasury businesses using other group operations as their
base performed well.
Prospects
Super Group is focused with the business fundamentals and management teams
the strongest they have been. After two years of consolidation, Super Group
will be identifying suitable acquisitions. Management is once again
confident of producing positive earnings growth this year. The balance sheet
has no gearing with net cash of R118 million. Super Group has proved its
resilience to tough trading conditions and is positively geared to any
improvement in GDP.
Good growth is anticipated in the logistics, parts, dealership and full
maintenance leasing businesses. There are opportunities for our logistics
skills in other emerging markets.
A new branding initiative consolidating all logistics companies is being
undertaken. This will be followed by a marketing campaign, which should
assist growth.
Dividend
A dividend of 22 cents per share (2000: 19 cents) has been declared in
respect of the year ended 31 March 2001 and will be paid to shareholders
registered in the books of the company at the close of business on Friday,
29 June 2001. Dividend cheques will be posted on or about 20 July 2001. The
dividend is payable in South African Rand.
Appreciation
Appreciation is extended to directors, management and staff for their
efforts. Our advisors, financiers, customers and suppliers are similarly
thanked. Our shareholders are thanked for their belief in and support of
Super Group.
On behalf of the board
Dr. L. Lipschitz K.N. Grunow
Executive Chairman Group Financial Director
30 May 2001
Registered Office:
27 Impala Road, Chislehurston, Sandton, 2196
Private Bag X9973, Sandton, 2146
Transfer Secretaries:
Mercantile Registrars Limited, 10th Floor, 11 Diagonal Street, Johannesburg,
2001
PO Box 1053, Johannesburg, 2000
Directors:
Dr. L. Lipschitz (Executive Chairman), S.E. Abrahams* (Deputy Chairman),
R.J.N. Ballentine, G.D. Cohen+, B. Greenstone*, K. N. Grunow, R. Hounsell+*,
L. Johnston, J. Klotnick*, E. Mphande*, P. Vallet*, M. Vico+. J.R. Eaglesham
(Group Secretary).
*Non-executive +Zimbabwean
Also available on the Internet: www.supergrp.com
