| Thu 1 Nov 2001, 0:00 | | Oceana Group Limited - Group Results And Dividend |
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Incorporated in the Republic of South Africa
(Registration Number 1939/001730/06)
GROUP RESULTS AND DIVIDEND DECLARATION FOR THE YEAR ENDED 30 SEPTEMBER 2001
The audited results for the year ended 30 September 2001 are set out herein.
This report has been prepared in compliance with South African Statements of
Generally Accepted Accounting Practice and, except as disclosed in note 2,
in accordance with the principles applied in the most recently published
annual financial statements.
Directors :
D M J Ncube (Chairman), R A Williams (Vice Chairman), A B Marshall
(Managing Director), D F Behrens, M A Brey, B P Connellan, N Dennis, R M
Kramer, R G Nicol, S Pather, R V Smither, R de H Steenkamp, A W S Visagie, T
W Vundla.
Alts: A L Hobbs, L T Langeni, R A Oktober, G A Rhodes-Harrison
GROUP INCOME STATEMENT
Notes 2001 2000 Change
R'000 R'000 %
Revenue 2,084,523 1,737,473 20
Operating profit 205,429 165,865 24
Dividends received 206 0
Share of profits of associate companies 0 61
Net interest received 10,036 8,967
Profit before taxation and
abnormal items 215,671 174,893 23
Abnormal items 1 2,054 383
Profit before taxation 217,725 175,276
Taxation 76,008 62,038 23
Profit after taxation 141,717 113,238
Attributable to outside
shareholders in subsidiaries 3,365 592
Attributable to own
shareholders 138,352 112,646 23
Number of shares in
issue (000's) 106,055 104,414
Weighted average no of shares
on which headline earnings and
net profit per share are
based (000's) 105,137 103,694
Headline earnings per
share (cents) 127,2 107,3 19
Diluted headline earnings
per share (cents) 123.5 105.4 17
Net profit per share (cents) 131,6 108,6 21
Dividends per share (cents) 53,4 45,0 19
DETERMINATION OF HEADLINE EARNINGS
Attributable to own shareholders 138,352 112,646
Adjusted for:
- Amortisation of goodwill 310 0
- Profit on change of interest
in investment (416) (262)
- Profit on disposal of fixed
assets (4,518) (1,164)
Headline earnings the year 133,728 111,220 20
DIVIDEND DECLARATION
Notice is hereby given that a final dividend No. 116 of 40,4 cents per
share, in respect of the year ending 30 September 2001, was declared on 01
November 2001, payable on 7 January 2002. The last day to trade cum
dividend will be Thursday, 27 December 2001. The shares will commence
trading ex dividend from Friday, 28 December 2001 and the record date is
Friday 4 January 2001. Share certificates may not be dematerialised or
rematerialised between 19 December 2001 and 4 January 2001, both days
inclusive.
By order of the board
J D Cole Secretary
01 November 2001
JSE Share Code: OCE
ISIN Number: ZAE 0000 25284
Registered Office: 16th Floor Metlife Centre, 7 Coen Steytler Avenue,
Cape Town 8001
Transfer Secretaries: Mercantile Registrars Limited
11 Diagonal Street, Johannesburg 2001
(PO Box 1053, Johannesburg 2000)
STATEMENT OF CHANGES IN EQUITY
Notes Share Non TOTAL
Capital Distribut- Distribut- R'000
& able able
Premium Reserves Reserves
R'000 R'000 R'000
Balance at 01 October 11,857 11,632 282,998 306,487
1999
Transfer between 0 (94) 94 0
reserves
Shares issued 4,938 0 0 4,938
Discount on acquisition 0 558 0 558
of business
Movement on foreign 0 1,833 0 1,833
currency translation
reserve
Goodwill written off 0 0 (219) (219)
Net profit for the year 0 0 112,646 112,646
Dividends 0 0 (46,996) (46,996)
Balance at 01 October 16,795 13,929 348,523 379,247
2000
Adjustments to opening 2.3 0 0 1,466 1,466
balance
Restated balance at 01 16,795 13,929 349,989 380,713
October 2000
Shares issued 6,917 0 0 6,917
Movement on foreign 0 7,112 0 7,112
currency translation
reserve
Net profit for the year 0 0 138,352 138,352
Dividends 0 0 (56,681) (56,681)
Balance at 30 September 23,712 21,041 431,660 476,413
2001
GROUP BALANCE SHEET
Notes 2001 2000
R'000 R'000
Assets
Non current assets 246,040 190,995
Property, plant and equipment 194,758 158,142
Goodwill 2.1 2,797 0
Fishing Rights 2.1 24,653 0
Deferred taxation 16,254 22,331
Investments and loans 3 7,578 10,522
Current assets 658,992 595,032
Inventories 130,179 169,987
Accounts receivable 438,264 339,695
Cash and cash equivalents 4 90,549 85,350
Total assets 905,032 786,027
Equity and liabilities
Capital and reserves 484,247 384,531
Share capital and premium 23,712 16,795
Non-distributable reserves 21,041 13,929
Retained income 2.3 431,660 348,523
Interest of outside
shareholders 7,834 5,284
Non-current liabilities
Deferred taxation 10,447 960
Current liabilities
Accounts payable, provisions
& shareholders for dividends 2.3 410,338 400,536
Total equity and liabilities 905,032 786,027
Net asset value per ordinary
share (cents) 449 363
Total liabilities: Total
shareholders'funds (%) 100 124
GROUP CASH FLOW STATEMENT
2001 2000
R'000 R'000
Cash flows from operating activities
Operating profit 205,429 165,865
Adjustment for non cash items 33,107 31,364
Operating profit before working
capital changes 238,536 197,229
Working capital changes (63,069) 5,529
Cash generated from operations 175,467 202,758
Interest and dividends received 20,465 15,127
Interest paid (10,223) (6,160)
Taxation paid (52,033) (54,393)
Dividends paid (49,881) (38,226)
Net cash inflow from
operating activities 83,795 119,106
Cash outflow from investing
activities (79,366) (106,711)
Net cash inflow
before financing activities 4,429 12,395
Net cash flows from financing
activities 6,917 4,888
Net increase in cash
and cash equivalents 11,346 17,283
Borrowings resulting from
acquisition of business (8,945) (10,990)
Cash and cash equivalents at the
beginning of the period 85,350 79,057
Effect of exchange rate changes 2,798 0
Cash and cash equivalents at the
end of the year 90,549 85,350
SEGMENT REPORT
2001 2000
R'000 R'000
Revenue
Oceana Brands 801,677 758,145
Erongo Group 436,739 342,034
Blue Continent Group 737,769 537,878
Commercial Cold Storage & Logistics 108,338 99,416
Total 2,084,523 1,737,473
Operating Profit
Oceana Brands 75,814 67,729
Erongo Group 25,494 14,950
Blue Continent Group 72,935 58,112
Commercial Cold Storage & Logistics 31,186 25,074
Total 205,429 165,865
Total assets (Excluding deferred tax)
Oceana Brands 244,850 282,886
Erongo Group 175,877 70,398
Blue Continent Group 241,282 180,490
Commercial Cold Storage & Logistics 128,643 134,050
Financing 98,126 95,872
Total 888,778 763,696
Total current liabilities (Excluding
deferred tax)
Oceana Brands 158,421 165,755
Erongo Group 37,187 25,842
Blue Continent Group 78,811 90,821
Commercial Cold Storage & Logistics 83,350 74,430
Financing 52,569 43,688
Total 410,338 400,536
NOTES
2001 2000
R'000 R,000
1. Abnormal items
Profit on change of interest
in investment 416 263
Net profit on disposal of land 1,638 120
and buildings
Abnormal profit before taxation 2,054 383
Taxation 28 0
Abnormal profit attributable to
own shareholders 2,026 383
Change in accounting policies
2.1 The company has changed its accounting policy for goodwill and other
intangible assets. Whereas goodwill and intangible assets were previously
written off to distributable reserves, they are now capitalised and
amortised over their expected useful lives in terms of AC129.
2.2 The company has changed its accounting policy for providing for the
impairment of property, plant and equipment. The company used to provide for
the impairment of these assets which occurred during the conduct of its
operating activities. These provisions were included in current liabilities
as the impairments were of a temporary nature and were rectified through
subsequent maintenance expenditure. This practice is no longer permissible
in terms of AC128. The effect of this change is set out below:
Impairment provisions at beginning of the year reversed to income 36,352
Major maintenance expenditure in respect of these provisions
charged to income 35,854
2.3 Provisions have been accounted for in accordance with AC130. This has
resulted in an adjustment to opening retained income as disclosed in the
statement of changes in equity as follows:
Reversal of excess provisions brought forward 2,116
Reversal of deferred tax on excess provisions (636)
Attributable to outside shareholders (14)
1,466
Prior year figures have not been Restated
Investment and loans
Directors' valuation of
investments and loans
Unlisted shares 801 279
Loans 6,777 10,243
7,578 10,522
Cash and cash equivalents
Cash 163,571 161,734
Bank overdrafts (73,022) (76,384)
90,549 85,350
5.Supplementary Information
Cost of inventories utilised 1,526,799 1,268,453
Depreciation 33,641 31,960
Amortisation of goodwill
and other intangibles 1,842 0
Operating lease charges 7,031 6,129
Capital expenditure 69,065 76,519
Expansion 45,158 48,754
replacement 23,907 27,765
Capital commitments 70,251 91,021
contracted 8,283 23,049
approved 61,968 67,972
Contingent liabilities 2,800 4,744
COMMENTS
Financial Results
Headline earnings increased by 20% and by 19% on a per share basis over
those of the previous year. Operating profit improved by 24%. Turnover
exceeded R2 billion for the first time, having increased by 20% on last
year.
A final dividend of 40.4 cents per share has been declared which together
with the interim dividend of 13 cents brings the total dividend for the year
to 53.4 cents per share. This total dividend represents an increase of 19%
over the previous year.
Review of operations
Turnover of canned pilchard increased by only 3% due to a shortage of
product. Poor weather caused difficult pilchard fishing conditions for the
industry towards the end of the financial year and landings were below
expectations. The Lucky Star brand increased its market share in the local
market and export sales grew by 16% in volume terms.
Despite a very low pilchard catch in Namibia, Etosha made a small profit due
to good fish meal sales, improved working capital management and cost
control.
Fish meal profitability in South Africa improved due to higher prices and
increased volumes.
Lobster earnings benefited from increased sales of live product, good
catches of West Coast lobster and improved prices for both West and South
Coast lobster. The Group's lobster operations in Australia have performed
satisfactorily.
The group increased its investment in hake operations in both South Africa
and Namibia during the year. Profits in the Western and Eastern Cape hake
operations were offset by losses incurred in Namibia.
Market conditions for horse mackerel were good and increased volumes were
traded out of Namibia, South Africa and the North Africa region.
The french fries business was negatively affected by the poor quality of
potatoes available.
Abalone landings were good and export prices remained high. Squid and tuna
catches, however, were disappointing.
Average occupancy levels at Commercial Cold Storage were higher than those
of the previous year. The expansion into fruit handling and storage in
Durban and Cape Town has been successful. Stevedoring operations in both
Walvis Bay and Cape Town recorded improved earnings.
Profitability at TRT Shipping Services improved.
Prospects
The group has submitted applications for medium term fishing rights in South
Africa. These rights are scheduled to be announced for all sectors by 31
December 2001.
Pilchard fishing improved in recent weeks and it is likely that similar
volumes to last year will be landed by the end of the season.
Fish meal prices are expected to remain high. Anchovy catches have also
improved since the poor winter weather and the Group expects to land
increased volumes this season.
Lobster prices have softened in line with prevailing world economic
conditions. However, due to the favourable rate of exchange, rand
realisations are expected to be similar to last year.
The new hake operations in Namibia are budgeted to contribute towards
profitability next year.
Increased participation in the horse mackerel industry in North Africa is
planned and market conditions are expected to remain stable for this
business.
Further investment in fruit handling and storage is planned.
Overall the Group anticipates real growth in operating profit and headline
earnings in the year ahead.
On behalf of the board.
DMJ Ncube A B Marshall
Chairman Managing Director
