| Mon 11 Jun 2001, 0:00 | | Cullinan Holdings Limited - Interim Results |
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CULLINAN HOLDINGS LIMITED
Interim results for the six months ended 31 March 2001
Group income statement
Unaudited six months ended Audited
Year ended
31 March 31 March 30 September
2001 2000 2000
R'000 R'000 R'000
Turnover 167 356 252 852 517 181
Operating income/(loss)
- Continuing operations 8 750 2 959 9 825
- Discontinued operations (3 940) (7 659) (18 253)
Exceptional items 618 4 118 5 583
Net operating income/
(loss) 5 428 (582) (2 845)
Net financing charges (3 524) (3 950) (7 015)
Income/(Loss) before
taxation 1 904 (4 532) (9 860)
Taxation - STC 232 280 1 042
Net income/(loss) after
taxation 1 672 (4 812) (8818)
Outside shareholders'
interest (532) 810 2 025
Net attributable income/
(loss) 1 140 (4002) (6 793)
Ordinary shares (000's)
- In issue 734 638 734 638 734 638
Income per ordinary
share (cents) 0,2 (0,5) (0,9)
Headline income per
ordinary share (cents) 0,1 (1,1) (1,7)
Determination of headline
earnings
Net attributable income 1 140 (4 002) (6 793)
Profit on sale of
subsidiaries, plant and
equipment 1 917 - 6 813
Reconstruction,
reorganisation and
other expenses (2 535) (4 118) (12 396)
Headline income/(loss) 522 (8 120) (12 376)
Group balance sheet
Unaudited Audited
31 March 31 March 30 September
2001 2000 2000
R'000 R'000 R'000
Assets
Fixed assets 56 824 61 808 56 998
Goodwill 10 121 - 10 400
Deferred taxation 3 000 3 000 3 000
Current assets 267 510 352 890 341 755
Inventories 73 044 99 044 99 961
Accounts receivable 126 309 158 245 128 953
Cash resources 68 157 95 601 112 841
Total assets 337 455 417 698 412 153
Equity and liabilities
Ordinary shareholders'
Equity 41 029 42 680 39 889
Outside shareholders'
interest 7 609 729 7 386
Interest bearing term
loans 40 588 57 893 60 581
Preference share capital 26 046 46 046 46 046
Long-term loans 10 971 8 568 11 805
Short-term loans 3 571 3 279 2 730
Current liabilities 248 229 316 396 304 297
Accounts payable 157 464 217 689 188 161
Bank overdrafts 90 765 98 707 116 136
Total equity and
liabilities 337 455 417 698 412 153
Financial statistics
Gearing (%) 129,9 151,0 135,1
Current ratio 1,1 1,2 1,1
Net asset value per share
(cents) 5,6 5,4 5,4
Summarised group cash
flow statement
Unaudited six months ended Audited
31 March 31 March 30 September
2001 2000 2000
R'000 R'000 R'000
Cash flows from operating
activities
Operating income/(loss) 5 428 (582) (2 845)
Depreciation 5 940 4 517 15 178
Restructuring provisions
and exceptional items - - (7 438)
Other non-cash items 653 - 549
Decrease in working
Capital 11 364 20 401 23 497
Cash generated from
operating activities 23 385 24 336 28 941
Net interest paid (1 684) (1 515) (2 282)
Taxation (paid)/refund (232) (280) 76
Preference dividends paid (1 840) (2 435) (3 462)
Net cash inflow from
operating activities 19 629 20 106 23 273
Cash flows from investing
activities
Investment to maintain
operations
Replacement of property,
plant and equipment (8 426) (7 722) (20 224)
Net proceeds from disposal
of property, plant and
Equipment 2 286 186 7 945
Proceeds from disposal
of Subsidiaries and
investments - - 5 380
Investment to expand
operations
Net outflow on acquisition
of business - - (5 367)
Net cash outflow from
investing activities (6 140) (7 536) (12 266)
cash flows from financing
activities
Long-term liabilities
(repaid)/raised 7 (3 390) 3 393
Paid to Thompsons Vendors (12 500) - (12 500)
Redemption of preference (20 000) - -
shares
Outside shareholders
funding (309) - 7 091
Net cash outflow from (32 802) (3 390) (2 016)
financing activities
(Decrease)/Increase in
cash and cash equivalents (19 313) 9 180 8 991
Cash and Cash equivalents
at beginning of period (3 295) (12 286) (12 286)
Cash and cash equivalents (22 608) (3 106) (3 295)
at end of period
Group statement of changes
in equity
Unaudited six months ended Audited
31 March 31 March 30 September
2001 2000 2000
R'000 R'000 R'000
Ordinary share capital
Balance at the beginning
of the period 7 346 7 346 7 346
Share premium
Balance at beginning and
end of the period 60 856 60 865 60 865
Revaluation reserve
Balance at beginning
and end of period 232 232 232
Share capital reduction
reserve fund
Balance at beginning and
and end of period 20 876 20 876 20 876
Capital redemption reserve
fund
Balance at beginning and
end of period 4 4 4
Accumulated loss
Balance at beginning of
Period (49 434) (42 641) (42 641)
Attributable income/(loss)
for the period 1 140 (4 002) (6 793)
Balance at end of period (48 294) (46 643) (49 434)
Ordinary shareholders'
equity 41 029 42 680 39 889
Comments
The results for the past six months reflects a substantial turnaround with a
return to profitability for the Cullinan Holdings Group, and an improvement
in the gearing after the sale of Midmacor. The return to profitability has
been as a result of excellent tourism and travel results, and a decrease in
the losses of the outdoor lifestyle divisions. The company has now fully
paid the R25 Million to the Thompsons' Vendors and shareholders have
approved the specific repurchase of the 50 million shares that were the
subject to the put option.
The gearing reported in these results is strongly influenced by a high level
of borrowing in Karrimor International Limited. As a result additional
capital was sought and injected into Karrimor International Limited by the
outside shareholders subsequent to 31 March 2001. This will result in
Cullinan Holdings Limited's shareholding in Karrimor International Limited
reducing to below 50%.
Divisional Commentary
Tourism and Travel
The tourism and travel group reported improved results on the back of sales
growth of 20% on the equivalent period last year. This growth was led by
the inbound tourism division (Thompson South Africa), with good results from
the outbound division (Thompson Tours), and Pen Travel.
Outdoor Lifestyle
As a result of the decision to sell off the outdoor lifestyle businesses at
an opportune time these businesses have now been disclosed as discontinued.
Progress on the disposal programme has been made and it is anticipated that
the disposals will ultimately be achieved either by sales for cash or by
asset swops for Cullinan shares. The process should be completed by the end
of the year.
Future prospects
Tourism and Travel continue to trade strongly and with the continuing
improvement in the group gearing and the resultant lowering of the interest
burden we expect the second half of the year to continue to be profitable.
On behalf of the board
SJ Nash
Executive Chairman
Directors: SJ Nash (Executive Chairman), QA Southey (Financial Director),
AA Thompson, AP van der Merwe
Registered office and registration number
1st Floor, Sable Place, Fairway Office Park, 52 Grosvenor Road, Bryanston,
Sandton
(P O Box 2412, Cramerview 2060)
(Registration number 1901/001808/06
Transfer secretaries
Mercantile Registrars Limited, P O Box 1053, Johannesburg 2000
For further information on group activities, please write to:
The Group Secretary, Cullinan Holdings Limited, P O Box 2412, Cramerview
2060
