| Mon 3 Jun 2002, 0:00 | | Super Group Limited: Audited Results 2002 |
|
SUPER GROUP LIMITED: AUDITED RESULTS 2002
Super Group Limited
(Incorporated in the Republic of South Africa)
(Registration number 1943/016107/06)
JSE Share code: SPG ISIN: ZAE000011334
("Super Group" or "the company")
AUDITED RESULTS 2002
TURNOVER EXCEEDS R5,5 BILLION ... up 23%
OPERATING INCOME INCREASES ... UP 29%
ADJUSTED HEPS ... UP 8,6%
STRONG BALANCE SHEET
Consolidated Cash Flow Statement
31 March
Audited Audited*
2002 2001
R000 R000
Cash flows from operating activities
Cash receipts from customers 5 855 061 5 041 605
Cash paid to suppliers and employees 5 245 884 4 494 423
Cash generated from operations 609 177 547 182
Net interest cost (74 176) (50 358)
Net dividend paid (37 020) (50 735)
Taxation paid (45 675) (9 517)
Net cash inflow from
operating activities 452 306 436 572
Cash flows from investing activities
Net proceeds/(cost) on disposal/
acquisition of subsidiaries,
operations and associates (66 554) 621 213
Additions to operating fixed assets
(net of disposals) (491 403) (307 406)
Investments and loans 1 960 (54 191)
Net cash (outflow)/inflow from
investing activities (555 997) 259 616
Cash flows from financing activities
Net cost of share repurchase and
share issues (114 110) (140 854)
Increase/(decrease) in
interest-bearing debt 221 643 (9 533)
Net cash inflow/(outflow) from
financing activities 107 533 (150 387)
Net increase in cash and
cash equivalents 3 842 545 801
Cash and cash equivalents/(borrowings)
at beginning of year 445 700 (103 624)
Translation of cash in
foreign subsidiaries 84 463 3 523
Cash and cash equivalents at
end of year 534 005 445 700
Consolidated Income Statement
31 March
Audited Audited*
2002 2001 %
R000 R000 Change
Revenue 5 536 447 4 505 319 22,9
Continuing operations 5 536 447 4 074 106 35,9
Discontinued operations - 431 213
Operating profit before depreciation
and amortisation (EBITDA) 610 700 526 456 16,0
Depreciation 174 644 149 204
Operating income 436 056 377 252 15,6
Continuing operations 436 056 338 189 28,9
Discontinued operations - 39 063
Net interest cost 62 149 50 358
Income from associates
(net of taxation) 21 223 16 469
(Loss)/profit attributable to UniFer (105 677) 42 265
Profit before exceptional items 289 453 385 628 (24,9)
Exceptional items (10 337) 181 041
Profit before taxation 279 116 566 669
Taxation 71 054 62 110
Profit after taxation 208 062 504 559
Minority interest 14 049 11 232
Net profit for the year 194 013 493 327
Number of shares in issue (000)
- Total 347 141 347 141
- Effective 312 461 326 253
- Weighted 314 888 337 914
- Diluted 332 322 355 348
Basic earnings per share (cents) 61,6 146,0 (57,8)
Headline earnings per share (cents) 68,6 94,0 (27,0)
Adjusted headline earnings
per share (cents) 102,1 94,0 8,6
Diluted earnings per share (cents) 61,3 142,9 (57,1)
Dividend per ordinary share (cents)
as per AC 107 22,0 19,0 15,8
Calculation of headline earnings
Net profit for the year 194 013 493 327
Adjusted for:
Exceptional items 10 337 (181 041)
Loss/(profit) on sale of operations 10 337 (207 878)
Impairment of fixed property - 26 837
Amortisation of goodwill 11 524 5 517
Headline earnings 215 874 317 803
Loss attributable to UniFer 105 677 -
Adjusted headline earnings 321 551 317 803
Consolidated Balance Sheet
31 March
Audited Audited*
2002 2001
R000 R000
ASSETS
Property, vehicles and equipment 691 339 646 220
Full maintenance lease assets 586 975 187 928
Goodwill 99 977 35 100
Investments and loans 153 947 292 464
Deferred tax asset 35 706 35 243
Current assets 1 887 721 1 561 335
Inventories 527 757 431 011
Trade and other receivables 708 657 683 443
Cash resources 651 307 446 881
Total assets 3 455 665 2 758 290
EQUITY AND LIABILITIES
Capital and reserves
Share capital and reserves 1 176 551 1 279 562
Compulsorily convertible debentures 140 495 140 495
1 317 046 1 420 057
Minority interest 36 612 32 866
Liabilities
Fund reserves 79 934 33 714
Deferred tax liability 129 516 70 136
Interest-bearing debt
- Long-term 129 745 206 789
- Full maintenance lease liabilities 289 982 40 364
- Short-term 260 180 81 037
- Bank overdraft 117 302 1 181
Current liabilities 1 095 348 872 146
Total equity and liabilities 3 455 665 2 758 290
Net tangible asset value
per share (cents) 350,6 399,0
Statement of Changes in Shareholders` Equity
31 March
Audited Audited*
2002 2001
R000 R000
Balance at beginning of year 1 420 057 1 133 965
Restatement for
hyperinflationary countries - 35 031
Repurchase of shares (114 110) (140 400)
Share issue expenses - (454)
Movement in other reserves (113 209) (34 711)
Net profit for the year 194 013 493 327
Ordinary dividends (69 705) (66 701)
Balance at end of year 1 317 046 1 420 057
*Comparative numbers have been restated for changes in accounting policy and
hyper-inflation.
Commentary
Super Group has for the fifteenth consecutive year produced strong growth
from operations. This result is the third year of organic growth.
In tough trading conditions operating income from continuing operations
increased by 29% to R436 million, which is considered satisfactory. Turnover
increased by 23% to R5,5 billion in a flat market, by gaining market share.
Turnover from continuing operations is up 36% as a result of proactive
management and new strategic initiatives. The increase in turnover is
attributable to good growth in full maintenance leasing (FML), supply chain
outsourcing, dealerships and parts sales. The latter two being lower margin
businesses, resulted in the overall group operating margins decreasing to
7,9% from 8,4%.
The results have been adversely impacted by the once-off UniFer loss of
R106 million which has distorted both Earnings per Share (EPS) and Headline
Earnings per Share (HEPS). Detail on the UniFer transaction has been
published in previous press announcements. The full write-off of the UniFer
investment has been taken in the current year.
If the effect of UniFer is excluded from the current year`s results
(Adjusted Headline Earnings per Share), growth year on year is 8,6% to 102,1
cents. This represents Super Group`s sustainable earnings base for the
future. A more meaningful comparison would be to exclude the effect of
UniFer in both years. This shows growth in attributable income at 16,7%.
The Adjusted HEPS of 102,1 cents results in the compound annual growth
(CAGR) over the past six years as a listed entity of 29,75%.
The Group Balance Sheet remains strong with gearing (including FML
liabilities which have increased significantly during the year) of 11%. The
Group would not have gearing if the FML liabilities were excluded. Our
strong balance sheet enhances our ability to gear for growth should it be
deemed appropriate.
Super Group remains strongly cash positive as a result of good cash flows
(R609 million) generated from operations. Share buybacks for the year
amounted to R114 million, bringing the total shares purchased to just below
10% of the total issued share capital. The shares are held in a subsidiary
company as treasury shares.
During the year Super Group focused on further improvements in
efficiency, optimisation, cost reduction, reporting and systems. The Group
disposed of Genesis Capital, Beacon Dawes - heavy crane rental and its
timber operations. Post year-end the Group sold Bulktrans fuel transport
company and is finalising the disposal of its Car Panelshops.
The quality of earnings has been enhanced as a result of: growth being
organic; a strong increase in annuity income - R4 billion worth of contracts
over five years; and the R84 million gain resulting from the translation of
foreign cash balances being taken directly to reserves.
Recently, the Group invested in two intellectual supply chain outsourcing
companies in Australia and United Kingdom. The purpose of these investments
is to gain additional skill sets for our supply chain solution offerings as
well as enable the Group to export our own consulting and technology
developed over the last five years.
Divisional Overview
Supply Chain
Super Group`s supply chain strategy continues to gain momentum with
significant new business being awarded. We are the acknowledged market
leaders in this field, which should result in future contract gains.
Turnover in Supply Chain (previously referred to as Logistics) has grown
significantly (28%) due to threefold growth in full maintenance leasing and
an excellent more than double growth in third party logistics and supply
chain outsourcing. As previously foreshadowed FML is now included in this
division (2001 comparatives have been adjusted accordingly).
Supply Chain Outsourcing contributes 56% (2001: 38%) to the operating
income and together with FML is predominantely responsible for the 77%
growth in the operating income of the division. The SA Freight operations
(transport, warehouse and brokerage) had a much improved year and posted
profits. The cross border freight operations were affected by the Zimbabwe
unrest and instability in the Democratic Republic of Congo resulting in the
US Dollar profits being lower than last year.
In keeping with our stated strategy, the Supply Chain division continues
to become a more significant contributor to the overall income of the Group
and in 2002 was responsible for 60% of operating income (2001: 39%).
Automotive
The dealership operations comprising panelbeaters, commercial vehicle
sales and motor dealerships had another successful year with turnover up
significantly and operating income increasing 9%. The Group anticipates a
high level awareness and interest on the opening of its new flagship 4 x 4
dealership and destination centre - Extreme 16. Automotive parts wholesaling
and retailing continues to entrench itself as the market leader. Operating
income in automotive parts grew by 15% in a flat market.
Services
This division comprises group treasury and insurance operations and
performed to expectations.
Accounting Policies
The financial statements of the Group comply in all material respects
with South African Statements of Generally Accepted Accounting Practice and
are consistent with those applied in the previous year. The following
revised accounting statements have been adopted in the current year:
Events after the balance sheet date (AC 107)
Investment properties (AC 135)
Employee benefits (AC 116)
The adoption of these statements has necessitated the restatement of the
previous year`s results. This restatement was not material.
Prospects
Super Group will continue to focus on increasing and improving earnings.
Growth in supply chain and consequently annuity based income is expected to
continue in the new year. Strong performances from automotive parts, third
party logistics and supply chain outsourcing can also be expected. Super
Group should continue its six year listed record of real earnings growth
from operations.
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.
Declaration of Ordinary Dividend
Notice is hereby given that a dividend of 25 cents (2001: 22 cents) per
ordinary share has been declared and is payable to Shareholders registered
in the books of the Company at the close of business on Friday, 12 July
2002.
In compliance with the requirements of STRATE, the electronic settlement
and custody system used by the JSE Securities Exchange South Africa, the
Company has determined the following salient dates for the payment of the
dividend:
Last day to trade cum-dividend Friday, 5 July 2002
Shares commence trading ex-dividend Monday, 8 July 2002
Record date Friday, 12 July 2002
Payment of dividend Monday, 15 July 2002
Share certificates may not be dematerialised/re-materialised between
Monday, 1 July 2002 and Friday, 12 July 2002.
Payment of this dividend will be made on or about 15 July 2002.
On behalf of the board
Dr. L. Lipschitz K.N. Grunow
Executive Chairman Group Financial Director
3 June 2002
Registered Office:
27 Impala Road, Chislehurston, Sandton, 2196
Private Bag X9973, Sandton, 2146
Transfer Secretaries:
Mercantile Registrars Limited,
6th Floor, Mercantile Building, 94 President Street, Johannesburg, 2001
PO Box 1053, Johannesburg, 2000
Directors:
Dr. L. Lipschitz (Executive Chairman), S.E. Abrahams* (Deputy Chairman),
R.J.N. Ballentine, L. Bergman*+, G.D. Cohen#*, B. Greenstone*,
K. N. Grunow, R. Hounsell#*, L. Johnston, M.P. Malungani*, P. Vallet*,
M. Vico#*.
*Non-executive #Zimbabwean +Austrian
Group Secretary:
J.R. Eaglesham
Also available on the Internet: www.supergrp.com
