| Mon 11 Nov 2002, 10:12 | | Super Group Limited - Interim Results 2002 |
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Super Group Limited - Interim Results 2002
Super Group Limited
(Incorporated in the Republic of South Africa)
(Registration number 1943/016107/06)
Share Code: SPG ISIN: ZAE000011334
INTERIM RESULTS 2002
* TURNOVER UP 26%
* ADJUSTED HEADLINE EPS up 8,6%
* OPERATING INCOME UP 22%
Consolidated Cash Flow Statements
6 months 6 months 12 months
30 Sept 30 Sept 31 March
2002 2001 2002
Unaudited Unaudited Audited
R000 R000 R000
Cash flows from operating activities
Cash receipts from customers 3 220 735 2 794 098 5 855 061
Cash paid to suppliers and employees 3 075 261 2 609 939 5 245 884
Cash generated from operations 145 474 184 159 609 177
Net interest cost (42 348) (19 744) (74 176)
Net dividends paid (63 810) (56 812) (37 020)
Taxation paid (1 642) (43 469) (45 675)
Net cash inflow from operating activities 37 674 64 134 452 306
Cash flows from investing activities
Net cost on acquisition of subsidiaries,
operations and associates (11 034) (47 057) (45 910)
Increase in investments (5 793) (9 346) (18 684)
Additions to operating fixed assets
(net of disposals) (27 203) (26 221) (73 717)
Additions to Full Maintenance Lease assets
(net of disposals) (235 836) (19 950) (417 686)
Net cash outflow from investing activities (279 866) (102 574) (555 997)
Cash flows from financing activities
Net cost of share repurchase
and share issues (9 710) (94 016) (114 110)
Increase/(decrease) in interest-bearing
debt - Other 4 863 (18 045) (58 728)
Increase in interest-bearing debt
- Full Maintenance Lease 121 812 - 280 371
Net cash inflow/(outflow) from
financing activities 116 965 (112 061) 107 533
Net (decrease)/increase in cash
and cash equivalents (125 227) (150 501) 3 842
Cash and cash equivalents at
beginning of period 534 005 445 700 445 700
Movement in foreign currency
translation reserve (2 946) 13 438 84 463
Cash and cash equivalents at end of year 405 832 308 637 534 005
Consolidated Income Statements
6 months 6 months 12 months
30 Sept 30 Sept 31 March
2002 2001 Percentage 2002
Unaudited Unaudited change Audited
R000 R000 % R000
Revenue 3 245 020 2 574 804 26,0 5 536 447
Operating profit before
Depreciation and amortisation
(EBITDA) 306 417 248 210 23,5 610 700
Depreciation and amortisation 91 696 72 113 174 644
Operating income 214 721 176 097 21,9 436 056
Net interest cost 42 348 19 744 62 149
Income from associates 8 102 9 205 21 223
Profit/(loss) attributable to UniFer - 21 879 (105 677)
Profit before exceptional items 180 475 187 437 (3,7) 289 453
Exceptional items - - (10 337)
Profit before taxation 180 475 187 437 (3,7) 279 116
Taxation 32 750 29 707 71 054
Profit after taxation 147 725 157 730 (6,3) 208 062
Minority interests 17 770 13 658 14 049
Net profit for the period 129 955 144 072 (9,8) 194 013
Number of shares in issue (000)
- Total 347 141 347 141 347 141
- Effective 312 427 315 896 312 461
- Weighted 312 427 315 049 314 888
- Diluted 329 861 332 483 332 322
Basic earnings per share (cents) 41,6 45,7 (9,0) 61,6
Headline earnings per share (cents) 42,8 46,9 (8,7) 68,6
Adjusted headline earnings
per share (cents)** 42,8 39,4 8,6 102,1
Diluted earnings per share (cents) 41,1 45,2 (9,1) 61,3
Calculation of headline earnings
Net profit for the year: 129 955 144 072 194 013
Adjusted for:
Exeptional items - - 10 337
Amortation of goodwill 3 912 3 568 11 524
Headline earnings 133 867 147 640 215 874
Adjusted for UniFer - (21 879) 105 677
Goodwill on UniFer - (1 492) -
Adjusted headline earnings 133 867 124 269 321 551
Consolidated Balance Sheets
30 Sept 30 Sept 31 March
2002 2001 2002
Unaudited Unaudited* Audited
R000 R000 R000
ASSETS
Non-current assets
Property, vehicles and equipment 619 359 617 040 691 339
Full maintenance lease assets 757 726 191 166 586 975
Goodwill 97 504 76 357 99 977
Investments and loans 190 649 302 212 153 947
Deferred tax assets 31 911 31 243 35 706
Current assets 1 830 585 1 736 117 1 887 721
Total assets 3 527 734 2 954 135 3 455 665
EQUITY AND LIABILITIES
Capital and reserves
Share capital and reserves 1 219 876 1 341 507 1 176 551
Compulsorily convertible debentures 140 495 140 495 140 495
1 360 371 1 482 002 1 317 046
Minority interests 47 610 43 984 36 612
Liabilities
Fund reserves 81 903 77 713 79 934
Deferred tax liabilities 120 819 65 136 129 516
Interest-bearing debt
- Long-term 127 224 298 929 129 745
- Full maintenance lease liabilities 411 794 - 289 982
- Short-term 184 725 73 905 260 180
Current liabilities 1 193 288 912 466 1 212 650
Total equity and liabilities 3 527 734 2 954 135 3 455 665
Net tangible asset value per share (cents) 363,8 404,9 350,6
Statements of Changes in Shareholders` Equity
30 Sept 30 Sept 31 March
2002 2001 2002
Unaudited Unaudited* Audited
R000 R000 R000
Balance at beginning of year 1 317 046 1 420 057 1 420 057
Revaluation surplus realised - - (5 366)
Repurchase of shares (9 710) (94 016) (114 110)
Restatement for hyperinflationary economies - - (11 624)
Foreign currency translation reserve 1 000 81 594 (96 219)
Net profit for the period 129 955 144 072 194 013
Ordinary dividends (77 920) (69 705) (69 705)
Balance at end of the period 1 360 371 1 482 002 1 317 046
* Comparative numbers have been restated for hyperinflation and changes in
accounting policy.
**Comparative number has been restated with the effect of UniFer`s equity
earnings removed.
Background
Super Group has two primary operating divisions, Supply Chain and Automotive,
which are supported by a Services division.
Super Group is the leading supply chain company on the African continent, and
has proved its ability to manage and implement complex supply chains. The Group
is the market leader in consulting, IT and technology related to the supply
chain as well as third party logistics.
The Automotive division comprises Dealerships and Automotive Parts
operations. Super Group is the market leader in the wholesale and retail of
automotive parts to the after-market.
Commentary
Super Group showed pleasing growth at the turnover and operating level for
the six months ended 30 September 2002. Turnover grew by 26% to R3,2 billion and
operating income increased by 22% to R215 million.
This growth is almost entirely organic, as there have been no material
acquisitions over the past three and a half years. Growth in this six-month
period was driven mainly by Automotive Parts, Dealerships, Cross Border
Transport, Forwarding and Third Party Logistics.
Results at the pre-tax level are not comparable to the same period last year
as that period included R22 million of equity accounted earnings from UniFer,
compared to nil in the current period. The most meaningful comparison to assess
year-on-year growth is adjusted headline earnings per share (HEPS), which was
42,8 cents for this reporting period compared to 39,4 cents for the prior
period, excluding the UniFer equity earnings. This equates to growth of 8,6%.
Growth in HEPS was below the growth at the operating level, largely due to:
* Initial investments in several large Supply Chain contracts, with the revenues
from these contracts only flowing into the next financial year,
* The loss of income from the sale of the car panel shops, and
* Losses on foreign exchange contracts (R6,2 million), following a strengthening
of the Rand.
Operating cash flow remains strong, but has been impacted by increased stock
levels in the dealership division.
The balance sheet reflects cash of R406 million. Excluding Full Maintenance
Lease liabilities, the Group is in a net cash position.
Full Maintenance Lease liabilities amount to R412 million and the Group`s
gearing is 23% if these are included in the calculation. However, it must be
borne in mind that these liabilities are of a different nature to traditional
gearing as they are borrowings against long-term, low-risk contracts with semi-
liquid assets as security. Like a banking operation, gearing is normal business
practice in these operations to maximise the return on equity. In addition,
changes in interest rates are usually passed on to the customer. The R236
million increase in the Full Maintenance Lease fleet was funded by an increase
in interest bearing debt (R122 million) and internal resources (R114 million).
Divisional overview
Supply Chain
The Supply Chain businesses continue to gain strong momentum with turnover
exceeding R1 billion, an increase of 26% on the prior period. Activity in the
cross-border operations has increased, mainly as a result of the famine relief
projects to the region. The South African transport businesses are having a good
year.
The Group is in the process of finalising several large supply chain
outsource contracts with an annuity value of R1,5 billion over the next five
years. The revenue from these contracts will contribute to the following
financial year`s results.
Super Fleet, the Full Maintenance Lease business, has been rebranded
FleetAfrica in keeping with its African aspirations and continues to produce
strong profits, with growing prospects.
Automotive
The Automotive Parts business continues to power ahead with turnover growth
in excess of 35%, while maintaining operating margins. This significant growth
is attributable in part to a growth in market share following a drive to improve
service levels, merchandising and product range. The other major contributing
factor is the application of the Group`s excellent supply chain skills to this
business.
The dealership operations have recorded good growth in turnover and
profitability. Extreme 16, which is a start-up initiative selling used vehicles
into the buoyant 4x4 market, is showing promising potential and has exceeded
initial budgets. Sales are increasing monthly, with 175 vehicles sold in
October, which was only the fourth month of trading.
Services
This division`s function is mainly to support the two other operating
divisions and is performing to expectations.
Prospects
Super Group`s fundamentals continue to improve even though the growth in this
financial year is projected to be below the long-term trend. Investments in this
financial period, notably in Supply Chain management and Full Maintenance
Leasing, will translate into annuity earnings in future reporting periods. Super
Group continues to seek acquisitions in its core areas of competency. Earnings
growth for the full financial year is expected to be similar to that of the
first six months, using last year`s adjusted headline earnings per share of
102,1 cents as a basis of comparison.
Dividend
As has been the practice in previous years, no interim dividend has been
declared.
Basis of preparation
The Group results have been prepared in conformity with South African
Statements of Generally Accepted Accounting Practice.
The same accounting policies have been followed as in the annual financial
statements for March 2002.
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
11 November 2002
Registered Office:
27 Impala Road, Chislehurston, Sandton, 2196
Private Bag X9973, Sandton, 2146
Transfer Secretaries:
Computershare Investor Services 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, L.F. Bergman+*, G.D. Cohen#*,
B. Greenstone*, K.N. Grunow, R. Hounsell#*, L. Johnston,
M.P. Malungani*, P. Vallet*, M. Vico#*.
Group Secretary:
J.R. Eaglesham.
*Non-executive #Zimbabwean +Austrian
Also available on the Internet: www.supergrp.com
Date: 11/11/2002 08:00:00 AM Produced by the JSE SENS Department
