| Mon 10 Nov 2003, 10:16 | | RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2003 |
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Super Group Limited - RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2003
Super Group Limited
(Incorporated in the Republic of South Africa)
(Registration number 1943/016107/06)
Share code: SPG ISIN: ZAE000011334
RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2003
Highlights
* Headline earnings per share +16,1%
* Headline earnings per share adjusted for currency effect +25,5%
* Operating income +17,5%
* operating margins improve from 6,8% to 7,8%
Consolidated Cash Flow Statements
6 months 6 months 12 months
30 September 30 September 31 March
2003 2002 2003
Unaudited Unaudited Audited
R"000 R"000 R"000
Cash flows from operating activities
Operating profit before working
capital changes 322 664 266 574 691 048
Working capital changes (175 015) (121 100) (269 931)
Cash generated from operations 147 649 145 474 421 117
Net interest cost (48 663) (42 348) (68 131)
Net dividend paid (77 002) (63 810) (51 127)
Taxation paid (28 207) (1 642) (24 994)
Net cash (outflow)/inflow from
operating activities (6 223) 37 674 276 865
Cash flows from investing activities
Net proceeds/(cost) on disposal/
(acquisition) of subsidiaries,
operations and associates 3 460 (11 034) (46 237)
Investments and loans (105 361) (5 793) (91 780)
Additions to operating fixed
assets - net of disposals (70 051) (27 203) (157 360)
Additions to full maintenance
lease assets
- net of disposals (77 676) (235 836) (322 645)
Net cash (outflow) from investing
activities (249 628) (279 866) (618 022)
Cash flows from financing activities
Net cost of share repurchase and
share issues - (9 710) (12 588)
Loan to Share Trust (59 995) - -
(Decrease)/Increase in interest bearing
debt - other (18 766) 4 863 (246 024)
Increase in interest bearing debt - Full
Maintenance lease 74 503 121 812 393 995
Net cash (outflow) / inflow from
financing activities (4 258) 116 965 135 383
Net decrease in cash and cash
equivalents (260 109) (125 227) (205 774)
Cash and cash equivalents at
beginning of period 282 948 534 005 534 005
Movement in foreign currency
translation reserve (6 321) (2 946) (45 283)
Cash and cash equivalents at end
of period 16 518 405 832 282 948
Consolidated Income Statements
6 months 6 months 12 months
30 September 30 September 31 March
2003 2002 % 2003
Unaudited Unaudited change Audited
R"000 R"000 R"000
Revenue 3 330 909 3 245 020 2,6 6 013 946
Operating profit before depreciation
and amortisation 369 190 312 979 18,0 673 995
Depreciation and amortisation 109 217 91 696 181 494
Operating income before forward
exchange contracts 259 973 221 283 17,5 492 501
Forward exchange contract losses (10 092) (6 562) (54 591)
Operating income after forward
exchange contracts 249 881 214 721 16,4 437 910
Net interest cost 48 769 42 348 47 935
Income from associates - net of taxation 4 791 8 102 13 756
Profit before exceptional items 205 903 180 475 14,1 403 731
Exceptional items - - (41 838)
Profit before taxation 205 903 180 475 14,1 361 893
Taxation 38 329 32 750 73 107
Profit after taxation 167 574 147 725 13,4 288 786
Minority interests 17 071 17 770 24 438
Net profit for period 150 503 129 955 15,8 264 348
-
Number of shares in issue ("000)
- Total 357 575 347 141 347 141
- Effective 315 905 312 427 312 427
- Weighted 315 905 312 427 312 427
- Diluted 329 861 329 861 329 861
Basic earnings per share (cents) 47,6 41,6 14,4 84,6
Headline earnings per share (cents) 49,7 42,8 16,1 101,6
Diluted earnings per share (cents) 47,6 41,1 15,8 83,6
Dividend per ordinary share (cents)
as per AC 107 28 25 25
CALCULATION OF HEADLINE EARNINGS
Net profit for period 150 503 129 955 264 348
Adjusted for:
Exceptional items - - 41 838
Amortisation of goodwill 6 410 3 912 11 290
Headline earnings 156 913 133 867 17,2 317 476
Consolidated Balance Sheets
30 September 30 September 31 March
2003 2002 2003
Unaudited Unaudited Audited
R"000 R"000 R"000
ASSETS
Non-current assets
Property, vehicles and equipment 519 025 619 359 508 672
Full maintenance lease assets 865 841 757 726 828 464
Goodwill 108 011 97 504 104 874
Investments and loans 411 816 190 649 249 275
Deferred tax assets 77 008 31 911 80 196
Current assets 1 718 575 1 830 585 1 787 805
Total assets 3 700 276 3 527 734 3 559 286
EQUITY AND LIABILITIES
Capital and reserves
Share capital and reserves 1 095 672 1 219 876 1 059 510
Compulsorily convertible debentures 80 500 140 495 140 495
Ordinary shareholders" interest 1 176 172 1 360 371 1 200 005
Minority interests 77 869 47 610 61 858
Liabilities
Fund reserves 112 738 81 903 89 267
Deferred tax liabilities 154 533 120 819 160 273
Interest bearing debt
- Long term 108 334 127 224 84 670
- Full maintenance lease liabilities 564 796 411 794 562 269
- Short term 213 304 184 725 166 101
Current liabilities 1 292 530 1 193 288 1 234 843
Total equity and liabilities 3 700 276 3 527 734 3 559 286
Net tangible asset value per
share (cents) 298,7 363,8 315,5
Statement of Changes in Shareholders" Equity
30 September 30 September 31 March
2003 2002 2003
Unaudited Unaudited Audited
R"000 R"000 R"000
Balance at beginning of period 1 200 005 1 317 046 1 317 046
AC 133 adjustment (24 421) - -
Share issue/(repurchase of shares) 1 043 (9 710) (12 588)
Premium on issue of shares 58 952 - -
Conversion of CCD"s (59 995) - -
Foreign currency translation reserve (62 237) 1 000 (290 694)
Net profit for period 150 503 129 955 264 348
Ordinary dividends (87 678) (77 920) (78 107)
Balance at end of period 1 176 172 1 360 371 1 200 005
Segmental Analysis
Turnover
30 September 30 September %
2003 2002 change
Unaudited Unaudited
R"000 R"000 R"000
Supply Chain Management 378 140 291 317 30
Cross - Border Transport 350 301 460 395 (24)
Fleet Solutions 304 475 324 607 (6)
Automotive Parts 718 104 640 445 12
Dealerships 1 516 398 1 476 336 3
Services 63 491 51 920 22
3 330 909 3 245 020 3
Operating income
30 September 30 September %
2003 2002 change
Unaudited Unaudited
Supply Chain Management 88 077 57 226 54
Cross - Border Transport 24 047 36 782 (35)
Fleet Solutions 54 685 37 533 46
Automotive Parts 36 780 28 944 27
Dealerships 47 380 47 071 1
Services 9 004 13 727 (34)
259 973 221 283 18
Background
Super Group has two primary operating divisions, namely Supply Chain and
Automotive. The Supply Chain division, which comprises Supply Chain
Management, Cross-border 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 increasing number of contracts
being won proves this division"s ability to manage and implement complex
supply chain solutions. The Automotive division constitutes Dealerships and
Automotive Parts, the leader in the wholesale and retail of automotive parts
to the after-market.
Financial overview
Super Group delivered solid growth from operations for the period under
review. Revenue increased 2,6% while substantial margin improvement from 6,8%
to 7,8% resulted in operating income increasing 17,5% to R260 million. If the
prior period financial results are adjusted for fuel and insurance recoveries,
which from 1 October 2002 have not been included in fleet solutions revenue
and transport and automotive businesses disposed during 2003, revenue and
operating income increased 12,8% and 17,7%, respectively.
Headline earnings per share increased 16,1% from 42,8 cents to 49,7 cents.
The appreciation of the Rand against the US Dollar resulted in US Dollar
earnings being translated into South African Rand at a lower average
exchange rate and gave rise to negative adjustment of R10,1 million (2003:
negative R6,6 million) resulting from the marking-to-market of financial
instruments taken out to cover exposure to foreign currency denominated
imports. For the period under review, the strengthening Rand reduced headline
earnings per share by 4 cents, which would have translated into headline
earnings per share growth of 25,5%.
The businesses generated cash of R323 million before working capital
movements. A further R175 million was invested in working capital. Trade
receivables increased as a result of turnover growth, specifically Supply
Chain Management and Automotive Parts. The settlement of foreign letters of
credit resulted in a reduction in trade payables and R35 million of the working
capital movement was attributable to the strength of the Rand. The increase in
investments and loans arose from funds invested in certain grassroots businesses
and funds loaned to DNA Supply Chain Investments Limited ("DNA") on a secured
basis.
The balance sheet of the Group remains strong. The decrease in shareholders"
equity and net tangible asset value was attributable to foreign currency
fluctuations resulting in a negative foreign currency translation effect on
our foreign denominated assets and the application of AC 133 for the first
time. The net tangible asset value per share at 30 September 2003 was
299 cents.
Divisional overview
Supply Chain
Supply Chain Management generated strong earnings growth of 54% and continues
to be awarded new contracts of increasing complexity. On 14 October 2003, the
conditions precedent relating to the acquisition of DNA"s businesses known as
Micor, Sherwood, DNA Automotive, Streamworks and Jumpoint were fulfilled.
Financial results from these businesses acquired have not been included in
the period under review.
Fleet Solutions performed very well, increasing operating income by 46% as a
result of improved efficiencies. In August 2003, FleetAfrica
Eastern Cape, a subsidiary of Super Group"s FleetAfrica, was awarded the
Eastern Cape Provincial Government"s 3 000 vehicle fleet outsourcing
contract.
Cross-border Transport, in line with our expectations, produced lower US
Dollar earnings as a result of difficult trading conditions. Reflecting over
a 15-year trading history in Africa, the past six months rank as one of the
most challenging. Consideration is being given as to whether it is
appropriate to continue consolidating the Zimbabwean operations, given the
uncertainty, instability and high levels of inflation in the country.
Automotive
Automotive Parts continued to gain market share and produced another set of
pleasing results on the back of strong revenue growth and reaping the
benefits of our extensive supply chain skills. These benefits will continue
to flow through over the next 18 months.
Dealerships produced acceptable returns with margins being maintained despite
competitive trading conditions.
Services
This division comprises group treasury and insurance and performed to
expectations.
Prospects
The growth in headline earnings per share for the full year will be impacted
by the Rand-US Dollar exchange rate.
Super Group should achieve real headline earnings per share growth for the
full year. This growth will be underpinned by:
* Continuing to extend our service offering within our clients" supply
chains and acquiring new clients by offering them strategically competitive
supply chains;
* The Eastern Cape Provincial Government and other new fleet outsourcing
contracts within Fleet Solutions;
* Continued market share growth in Automotive Parts;
* Improving operational efficiencies in all our businesses.
Dividends
In line with the company"s dividend policy, no interim dividend has been
declared.
Accounting policies
The financial statements are prepared in accordance with and comply with
Statements of Generally Accepted Accounting Practice in South Africa. The
principle accounting policies as set out in the 2003 annual report have been
consistently applied in producing these results, except for the change in
policy as detailed below.
During the period the Group changed its accounting policy in respect of
financial instruments so as to comply with AC 133 Financial Instruments:
Recognition and Measurement. An adjustment of R24 million has been made to
the Group"s reserves at the beginning of the period.
Appreciation
Appreciation is extended to directors, management and staff for their
efforts. Our customers, suppliers, financiers and shareholders are similarly
thanked for their belief in and support of, Super Group.
On behalf of the board
Dr. L. Lipschitz K. N. Grunow
Executive Chairman Group Financial Director
10 November 2003
Registered Office:
27 Impala Road
Chislehurston,
Sandton, 2196
Private Bag X9973
Sandton, 2146
Transfer Secretaries:
Computershare 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
Sponsor: Deutsche Securities (SA) (Proprietary) Limited
Date: 10/11/2003 10:00:15 AM Produced by the JSE SENS Department
