| Thu 8 Nov 2001, 0:00 | | Super Group: Interim Results 2001 |
|
Super Group Limited
(Incorporated in the Republic of South Africa)
(Registration number 1943/016107/06)
Share Code: SPG ISIN: ZAE000011334
INTERIM RESULTS 2001
TURNOVER UP 17%
HEADLINE EPS up 18%
STRONG BALANCE SHEET
Consolidated Cash Flow Statement
6 months 6 months 12 months
30 September 30 September 31 March
2001 2000 2001
Unaudited Unaudited Audited
R000 R000 R000
Cash flows from operating activities
Cash receipts from customers 2 794 098 2 384 422 5 041 605
Cash paid to suppliers and employees 2 609 939 2 203 857 4 494 423
Cash generated from operations 184 159 180 565 547 182
Net interest cost (19 744) (28 605) (50 358)
Net dividends paid (56 812) (49 149) (50 735)
Taxation paid (43 469) (378) (9 517)
Net cash inflow from
operating activities 64 134 102 433 436 572
Cash flows from investing activities
Net (cost)/proceeds on (acquisition)/
disposal of subsidiaries, operations
and associates (47 057) 242 377 621 213
Increase in investments (9 346) (31 412) (54 191)
Additions to operating fixed assets
(net of disposals) (46 171) (90 910) (307 406)
Foreign currency translation adjustment 13 438 - 3 523
Net cash (outflow)/inflow from
investing activities (89 136) 120 055 263 139
Cash flows from financing activities
Net cost of share repurchase and
share issues (94 016) (14) (140 854)
Decrease in interest-bearing debt (18 045) (18 941) (9 533)
Net cash outflow from
financing activities (112 061) (18 955) (150 387)
Net (decrease)/increase in cash and
cash equivalents (137 063) 203 533 549 324
Cash and cash equivalents/(borrowings)
at beginning of period 445 700 (103 624) (103 624)
Cash and cash equivalents at
end of period 308 637 99 909 445 700
Consolidated Income Statement
6 months 6 months 12 months
30 September 30 September 31 March
2001 2000 Percentage 2001
Unaudited Unaudited change Audited
R000 R000 % R000
Revenue 2 574 804 2 198 323 17,1 4 505 319
Operating profit
before depreciation
and amortisation (EBITDA) 248 210 243 343 2,0 526 446
Depreciation and
amortisation 72 113 76 906 149 194
Operating income 176 097 166 437 5,8 377 252
Net interest cost 19 744 28 605 50 358
Income from associates 31 084 31 740 58 734
Profit before
exceptional items 187 437 169 572 10,5 385 628
Exceptional items - - 181 041
Profit before taxation 187 437 169 572 10,5 566 669
Taxation 29 707 26 593 62 110
Profit after taxation 157 730 142 979 10,3 504 559
Minority interest 13 658 6 296 11 232
Net profit for the period 144 072 136 683 5,4 493 327
Number of shares in issue (000)
- Total 347 141 347 141 347 141
- Effective 315 896 344 631 326 253
- Weighted 315 049 343 422 337 914
- Diluted 332 483 360 856 355 348
Basic earnings
per share (cents) 45,7 39,8 14,8 146,0
Headline earnings
per share (cents) 46,9 39,8 17,8 94,0
Fully diluted earnings
per share (cents) 45,2 39,4 14,7 142,9
Consolidated Balance Sheet
30 September 30 September 31 March
2001 2000 2001
Unaudited Unaudited Audited
R000 R000 R000
ASSETS
Non-current assets
Property, vehicles and equipment 773 969 884 572 799 911
Goodwill 76 357 - 35 100
Investments 302 212 249 564 293 306
Deferred tax asset 31 243 84 987 35 243
Current assets 1 734 648 1 202 632 1 559 024
Total assets 2 918 429 2 421 755 2 722 584
EQUITY AND LIABILITIES
Capital and reserves
Share capital and reserves 1 306 476 1 067 988 1 174 826
Compulsorily convertible debentures 140 495 140 495 140 495
1 446 971 1 208 483 1 315 321
Minority interest 43 984 40 843 32 866
Liabilities
Fund reserves 77 713 13 525 33 714
Deferred tax liability 53 750 93 386 58 750
Interest-bearing debt
- Long-term 298 929 242 041 247 153
- Short-term 73 905 76 741 82 218
Current liabilities 923 177 746 736 952 562
Total equity and liabilities 2 918 429 2 421 755 2 722 584
Net tangible asset value
per share (cents) 394,8 348,1 368,8
Statement of Changes in Shareholders' Equity
30 September 30 September 31 March
2001 2000 2001
Unaudited Unaudited Audited
R000 R000 R000
Balance at beginning of the period 1 315 321 1 073 633 1 067 264
Share issue expenses - (14) (454)
Repurchase of shares (94 016) - (140 400)
Movement in other reserves - (1 819) -
Foreign currency translation reserve 81 594 - (34 711)
Net profit for the period 144 072 136 683 493 327
Ordinary dividends - - (69 705)
Balance at end of the period 1 446 971 1 208 483 1 315 321
SEGMENTAL ANALYSIS INTERIM FINANCIAL RESULTS 30 SEPTEMBER 2001
Operating
Turnover income
R'000 R'000
Super Logistics 873 578 78 709
Super Automotive 1 645 130 67 191
Services 56 096 30 197
2 574 804 176 097
SEGMENTAL ANALYSIS ANNUAL FINANCIAL RESULTS 31 MARCH 2001*
Operating
Turnover income
R'000 R'000
Super Logistics 1 638 354 151 257
Super Automotive 2 580 920 124 121
Services 286 045 101 874
4 505 319 377 252
*as foreshadowed in the annual financial statements the full maintenance
lease operations have been moved under the Super Logistics division. The
segmental results have been restated in accordance with this change. These
operations were previously under the Services division.
ACCOUNTING POLICIES
The same accounting policies and methods of computation followed for the
annual financial statements for the year ended 31 March 2001 were used for
the interim financial statements for the period ended 30 September 2001.
The difference between basic earnings per share and headline earnings per
share is the amortisation of goodwill amounting to R3,69 million.
Commentary
Super Group was once again able to show strong growth and continues to
illustrate resilience to tough trading conditions. Headline earnings per
share (HEPS) grew by 18% for the six months. As there have been no
acquisitions for the past two and a half years this growth is organic.
Turnover for the period is up to R2,6 billion, a 17% increase on last
year's interim results. The 2000 turnover included R167 million turnover
from BBR and Payloads businesses, which were sold last year. Excluding this
turnover, the turnover growth from continuing operations amounts to 27%.
There was, however, very little growth in our markets and growth is a
function of proactive management and new initiatives.
Good cash inflow from operating activities of R184 million is marginally
up on last year despite not having the benefit of BBR's strong cash
generative earnings.
The Group spent R94 million on purchasing 10 357 600 shares as part of
its share repurchase programme.
The reduction in cash balances from R445,7 million to R308,6 million is
partly ascribed to share buybacks, purchase of fixed assets for full
maintenance lease contracts, several new logistic contracts and payment of
certain agterskot amounts to vendors on acquisitions previously made.
The balance sheet is strong with an ability to gear for growth should it
be deemed appropriate.
Divisional overview
Super Logistics
Super Group's stated and well established supply chain strategy of
building supply chain management, technology, IT and consulting competencies
while continuing to hold relevant distribution, warehousing and transport
assets, is proving to be highly successful. We are the leading supply chain
company on the African continent and are winning many new clients. Third
party logistics and full maintenance leasing operations have all benefited
from this logistics focus and are having an excellent year.
The automotive supply chain focus including Auto Parts Logistics is
showing exciting potential off a low base.
The South African transport operations are having an improved year. The
Group's reduced exposure to this market has, however, resulted in these
operations not being material to our overall results.
Activities in our African cross border, transport, trading, forwarding
and warehousing operations remain difficult. In recent months volumes have
shown signs of increased activity.
Super Automotive
The Dealership and Automotive parts operations are performing well in
tough market conditions. Automotive Parts is now the largest player in the
automotive after market and recorded 13% turnover growth in a stagnant
market by gaining market share.
Services
Super Group continues to explore and exploit niched financial services to
complement its logistics offering. In keeping with the strategy of focusing
on core operations, our 50% stake in Genesis Financial Services was sold to
management.
UniFer recorded disappointing results which adversely impacted the growth
in HEPS.
Prospects
Super Group is focused, with good management, a strong balance sheet, a
proven track record and defined growth strategy. The Group has positioned
itself to grow despite difficult market conditions and remains exceptionally
well positioned to take advantage of any market improvements.
Excess capacity for growth has been built into the businesses and we are
seeking acquisitions in our areas of competency.
The ability to forecast post September 11 is difficult. However, with no
deterioration in conditions, similar earnings growth can be expected for the
full year.
Corporate bond
Super Group Limited has mandated Merrill Lynch South Africa (Pty) Limited
as sole lead manager and Nedbank, a division of Nedcor Bank Limited, as co-
manager to investigate an inaugural bond issue. The timing, maturity and
size of the issue will be determined and advised at a later date.
Dividend
As has been the practice in previous years, no interim dividend has been
declared.
Appreciation
Appreciation is extended to all stakeholders, including employees,
customers, suppliers and shareholders for their effort and support.
On behalf of the board
Dr. L. Lipschitz K.N. Grunow
Executive Chairman Group Financial Director
8 November 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*, M.P. Malungani*, P. Vallet*, M. Vico+.
Group Secretary:
J.R. Eaglesham.
*Non-executive +Zimbabwean
Also available on the Internet: www.supergrp.com
