| Tue 3 Jun 2003, 14:56 | | Super Group Limited - Reviewed Results For The Per |
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Super Group Limited - REVIEWED RESULTS FOR THE PERIOD ENDED 31 MARCH 2003
Super Group Limited
(Incorporated in the Republic of South Africa)
(Registration number 1943/016107/06)
Share code: SPG ISIN: ZAE000011334
* Headline Earnings per share +48%
* Operating income +17%
* Revenue exceeds R6 billion
* Group operating margins improved to 8,2% from 7,6%
* 4th consecutive year of solid organic growth
* New supply chain outsourcing contracts results in annuity income of
R5 billion
* Preferred bidder for 3 000 vehicle fleet of Eastern Cape Provincial
Government
Consolidated Cash Flow Statement
31 March
Reviewed Audited*
2003 2002
R"000 R"000
Cash flows from operating activities
Operating profit before working capital changes 691 048 575 591
Working capital changes (269 931) 33 586
Increase in inventories (135 103) (103 081)
Increase in accounts receivable (42 099) (95 330)
Increase in accounts payable 2 251 183 344
(Decrease)/Increase in fund reserves (3 062) 46 219
Movement in foreign currency translation reserve (91 918) 2 434
Cash generated from operations 421 117 609 177
Net interest cost (68 131) (58 894)
Net dividend paid (51 127) (52 302)
Taxation paid (24 994) (45 675)
Net cash inflow from operating activities 276 865 452 306
Cash flows from investing activities
Net proceeds/(cost) on disposal/acquisition of
subsidiaries, operations and associates (46 237) (45 910)
Additions to operating fixed assets - net of disposals (157 360) (50 603)
Additions to full maintenance lease
assets - net of disposals (322 645) (440 800)
Investments and loans (91 780) (18 684)
Net cash outflow from investing activities (618 022) (555 997)
Cash flows from financing activities
Net cost of share purchase and share issues (12 588) (114 110)
Decrease in interest bearing debt (246 024) (219 157)
Increase in full maintenance debt 393 995 440 800
Net cash inflow from financing activities 135 383 107 533
Net (decrease)/increase in cash and cash equivalents (205 774) 3 842
Cash and cash equivalents at beginning of year 534 005 445 700
Movement in foreign currency translation reserve (45 283) 84 463
Cash and cash equivalents at end of year 282 948 534 005
Consolidated Income Statement
31 March
Reviewed Audited*
2003 2002 %
R"000 R"000 change
Revenue 6 013 946 5 536 447 8,6
Operating profit before depreciation
and amortisation (EBITDA) 673 995 594 057 13,5
Depreciation and amortisation 181 494 174 644
Operating income before forward exchange
contracts 492 501 419 413 17,4
Forward exchange contracts (losses)/gains (54 591) 16 643
Operating income after forward exchange
contracts 437 910 436 056 0,4
Net interest cost 47 935 62 149
Income from associates - net of taxation 13 756 21 223
Loss attributable to UniFer - (105 677)
Profit before exceptional items 403 731 289 453 39,5
Exceptional items (41 838) (10 337)
Profit before taxation 361 893 279 116 29,7
Taxation 73 107 71 054
Profit after taxation 288 786 208 062 38,8
Minority interests 24 438 14 049
Net profit for year 264 348 194 013 36,3
Number of shares in issue ("000)
- Total 347 141 347 141
- Effective 312 427 312 461
- Weighted 312 427 314 888
- Diluted 329 861 332 322
Basic earnings per share (cents) 84,6 61,6 37,3
Headline earnings per share (cents) 101,6 68,6 48,1
Adjusted headline earnings per share (cents) 101,6 102,1 (0,5)
Diluted earnings per share (cents) 83,6 61,3 36,4
Dividend per ordinary share (cents) as per AC 107 25,0 22,0 13,6
Calculation of headline earnings
Net profit for year 264 348 194 013
Adjusted for:
Exceptional items 41 838 10 337
Amortisation of goodwill 11 290 11 524
Headline earnings 317 476 215 874
Loss attributable to UniFer - 105 677
Adjusted headline earnings 317 476 321 551
Consolidated Balance Sheet
31 March
Reviewed Audited*
2003 2002
R"000 R"000
ASSETS
Property, vehicles and equipment 508 672 691 339
Full maintenance lease assets 828 464 586 975
Goodwill 104 874 99 977
Investments and loans 249 275 158 462
Deferred tax assets 80 196 35 706
Current assets 1 787 805 1 883 206
Inventories 671 822 527 757
Trade and other receivables 750 375 704 142
Cash and cash equivalents 365 608 651 307
Total assets 3 559 286 3 455 665
EQUITY AND LIABILITIES
Capital and reserves
Share capital and reserves 1 059 510 1 176 551
Compulsorily convertible debentures 140 495 140 495
Ordinary shareholders" interest 1 200 005 1 317 046
Minority interests 61 858 36 612
Liabilities
Fund reserves 89 267 79 934
Deferred tax liabilities 160 273 129 516
Interest bearing debt
- Long term 84 670 191 945
- Full maintenance lease liabilities 562 269 227 782
- Short term 166 101 260 180
- Bank overdraft 82 660 117 302
Current liabilities 1 152 183 1 095 348
Total equity and liabilities 3 559 286 3 455 665
Net tangible asset value per share (cents) 315,5 350,6
Statement of Changes in Shareholders" Equity
31 March
Reviewed Audited*
2003 2002
R"000 R"000
Balance at beginning of year 1 317 046 1 420 057
Purchase of shares (12 588) (114 110)
Foreign currency translation and hyperinflation (290 694) (113 209)
Net profit for year 264 348 194 013
Ordinary dividends (78 107) (69 705)
Balance at end of year 1 200 005 1 317 046
Operating income by currency
2003 2002
US$ and other 23,3% 21,4%
Rand 76,7% 78,6%
100% 100%
Segmental Analysis
for the year ended 31 March
Supply Chain
Group Management
Reviewed Audited Reviewed Audited
2003 2002* 2003 2002*
R"000 R"000 R"000 R"000
Revenue 6 013 946 5 536 447 577 187 419 727
Operating income 492 501 419 413 171 751 134 123
Foreign exchange
(losses)/gains (54 591) 16 643 (37 291) 11 369
Net interest cost (47 935) (62 149) 6 415 9 303
Income from associates
- net of taxation 13 756 21 223 - -
Profit before
exceptional items 403 731 395 130 140 875 154 795
Segmental Analysis
for the year ended 31 March
Cross-Border Fleet
Transport Solutions
Reviewed Audited Reviewed Audited
2003 2002* 2003 2002*
R"000 R"000 R"000 R"000
Revenue 715 566 803 993 633 773 675 974
Operating income 92 811 75 343 74 555 38 970
Foreign exchange
(losses)/gains - - - -
92 811 75 343 74 555 38 970
Net interest cost (500) (12 755) (30 533) 5 218
Income from associates
- net of taxation - - - -
Profit before
exceptional items 92 311 62 588 44 022 44 188
Segmental Analysis
for the year ended 31 March
Automotive
Parts Dealerships
Reviewed Audited Reviewed Audited
2003 2002* 2003 2002*
R"000 R"000 R"000 R"000
Revenue 1 266 310 1 003 281 2 714 611 2 528 454
Operating income 47 651 41 599 79 851 90 550
Foreign exchange
(losses)/gains (12 300) 3 750 (5 000) 1 524
35 351 45 349 74 851 92 074
Net interest cost (276) (442) (1 586) 78
Income from associates
- net of taxation - - - -
Profit before
exceptional items 35 075 44 907 73 265 92 152
Segmental Analysis
for the year ended 31 March
Services
Reviewed Audited
2003 2002*
R"000 R"000
Revenue 106 499 105 018
Operating income 25 882 38 828
Foreign exchange
(losses)/gains - -
25 882 38 828
Net interest cost (21 455) (63 551)
Income from associates
- net of taxation 13 756 21 223
Profit before
exceptional items 18 183 (3 500)
Background
Super Group has two primary operating divisions, namely Supply Chain and
Automotive. The Supply Chain division, which comprises Supply Chain Management,
Transport and Fleet Solutions has established itself as the market leader in
supply chain management, third party logistics and fleet solutions in Southern
Africa. The division has proved its ability to manage and implement complex
supply chains. The Automotive division constitutes Dealerships and Automotive
Parts which is the market leader in the wholesale and retail of automotive parts
to the after-market.
Commentary
Super Group has delivered solid growth from operations for the sixteenth
consecutive year despite being adversely affected by the strength in the Rand.
These results are the fourth year of organic growth.
Super Group"s revenue for the year grew by 9% to over R6 billion, while
operating income increased 17% to R493 million. This has resulted in a
substantial improvement in the group"s operating margin from 7,6% to 8,2%. If
the prior year financial results are adjusted for businesses disposed of during
that year, revenue and operating income increased 25% and 21%, respectively.
Headline earnings per share increased 48% from 68,6 cents to 101,6 cents. The
appreciation of the Rand against the US dollar gave rise to a negative
adjustment of R55 million (2002: R17 million gain). This resulted from the
marking-to-market of financial instruments taken out to cover exposure to
foreign currency denominated imports. The impact was a 16 cents reduction in
headline earnings per share.
The businesses generated excellent cash flow, with cash generated by
operations before working capital movements increasing 20% to R691 million. The
businesses required a further R270 million of working capital of which R92
million was attributable to the strength of the Rand. Inventories increased as
the result of vehicle stock required for Extreme 16 and pre-emptive purchasing
by the dealership division ahead of the April price increase. Trade receivables
increased owing to growth in turnover, specifically Supply Chain Management.
The balance sheet of the group remains strong. The decrease in shareholders"
equity is attributable to foreign currency fluctuations resulting in a negative
foreign currency translation effect on our foreign denominated assets. The net
tangible asset value per share at 31 March 2003 was 316 cents. At year-end, we
had net cash of R283 million and remain ungeared when Full Maintenance Leasing
liabilities are excluded. Super Group is well-positioned to gear for growth and
acquisitions, should such acquisitions be deemed appropriate.
Divisional Overview
Supply Chain
The Supply Chain division had another exciting year. The individual business
units were successfully integrated and we are increasingly able to demonstrate
our innovative supply chain skills and physical execution thereof to existing
and potential clients. This culminated in our being awarded a significant number
of supply chain management contracts of increasing complexity resulting in an
additional R1,5 billion of annuity income over the past six months. Fleet
Solutions generated strong earnings growth with efficiencies coming to the fore.
Cross-Border produced solid hard currency growth as the expected investment by
international aid agencies and multi-national companies in drought relief for
the region complemented the core transport operations. Local transport and
rental also generated solid earnings growth. This division"s strong performance
bears testimony to our strategy of developing an integrated supply chain
management business.
Automotive
Automotive Parts continued to gain market share and produced another set of
pleasing results on the back of strong revenue growth. Dealerships produced
acceptable returns with margins being negatively affected by lower vehicle sales
volumes in the second half of the financial year and the start-up costs in
Extreme 16 which were expensed during the year. The Extreme 16 brand has been
successfully established and continues to meet expectations.
Services
This division comprises group treasury and insurance and performed to
expectations.
Prospects
The high interest rates and volatile Rand are expected to continue providing
a challenging trading environment. Super Group should nevertheless achieve real
earnings growth in 2004 driven by:
* improving operational efficiencies in all our businesses;
* continued market share growth in Automotive Parts;
* investments made in supply chain contracts awarded during 2003 generating the
anticipated returns;
* continuing to extend our service offering within our existing clients" supply
chains and acquiring new clients by offering them strategically competitive
supply chains;
* the recent award to FleetAfrica as the preferred bidder for the 3 000 vehicle
fleet of the Eastern Cape Provincial Government should underpin future growth
and we remain well-positioned for further major outsourcing contracts.
Further cautionary announcement
Further to the cautionary announcements dated 5 March 2003 and 30 April 2003
shareholders are advised that negotiations are still in progress, which, if
successfully concluded, may have an effect on the share price. Accordingly,
shareholders are advised to continue to exercise caution when dealing in their
shares until a further announcement is made.
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 28 cents (2002: 25 cents) per
ordinary share has been declared and is payable to shareholders recorded in the
books of the Company at the close of business on Friday, 11 July 2003.
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, 4 July 2003
Shares commence trading ex-dividend Monday, 7 July 2003
Record date Friday, 11 July 2003
Payment of dividend Monday, 14 July 2003
Share certificates may not be dematerialised/rematerialised between
Monday, 7 July 2003 and Friday, 11 July 2003, both days inclusive.
On behalf of the board
Dr. L. Lipschitz K. N. Grunow
Executive Chairman Group Financial Director
3 June 2003
Auditors Review
The condensed balance sheet, income statement, cash flow statement and
statement of changes in shareholders" equity, has been reviewed by the Company"s
auditors, KPMG Inc. Their unqualified review report is available for inspection
at the Company"s registered office.
These results are prepared in accordance with South African Generally
Accepted Accounting Practice. The accounting policies are consistent with the
prior year.
KPMG Inc.
Registered Office:
27 Impala Road
Chislehurston
Sandton, 2196
Private Bag X9973, Sandton, 2146
Transfer Secretaries:
Computershare Investor Services Limited
Ground Floor
70 Marshall 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
Super Group Limited
(Incorporated in the Republic of South Africa)
(Registration number 1943/016107/06)
Share code: SPG ISIN: ZAE000011334
Transactional sponsor
NEDBANK CORPORATE
