| Wed 3 Dec 2003, 16:08 | | RESULTS FOR THE YEAR ENDED 30 SEPTEMBER 2003 |
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CULLINAN HOLDINGS LIMITED - RESULTS FOR THE YEAR ENDED 30 SEPTEMBER 2003
CULLINAN HOLDINGS LIMITED
RESULTS FOR THE YEAR ENDED 30 SEPTEMBER 2003
(Registration number 1902/001808/06)
(Share code: CUL ISIN number: ZAE000013710)
Group balance sheet
Reviewed year ended Audited year ended
30 September 30 September
2003 2002
R"000 R"000
Assets
Property, plant and equipment 28 577 22 009
Goodwill 12 501 13 416
Deferred taxation 9 000 6 000
Current assets 143 352 126 503
Inventories 9 247 8 379
Accounts receivable 57 333 50 056
Cash resources 76 772 68 068
Total assets 193 430 167 928
Equity and liabilities
Ordinary shareholders" equity 35 966 24 414
Minority interest -- 29
Interest bearing term loans 27 673 27 716
Preference share capital 26 046 26 046
Short-term loans 1 627 1 670
Current liabilities 129 791 115 769
Accounts payable 121 409 106 626
Provisions 8 184 8 734
Receiver of Revenue 24 128
Preference dividends 174 281
Total equity and liabilities 193 430 167 928
Financial statistics
Net gearing (%) -- --
Current ratio 1:1 1:1
Net asset value per share (cents) 5,0 3,6
Group income statement
Reviewed Audited
year ended year ended
30 September 30 September
2003 2002
R"000 R"000
Revenue 160 075 138 613
Net operating expenses (142 502) (117 628)
Operating income before exceptional items 17 573 20 985
Exceptional items (362) (2 361)
Operating income 17 211 18 624
Net financing (charges)/income 2 673 (2 129)
Income before taxation 19 884 16 495
Taxation (1 263) (324)
Net income after taxation 18 621 16 171
Minority interest 160 (108)
Net attributable income 18 781 16 063
Ordinary shares (000"s)
In issue 717 188 715 688
Weighted average 717 188 648 638
Income per ordinary share (cents) 2,6 2,3
Headline income per ordinary
share (cents) 2,7 2,7
Determination of headline earnings
Net attributable income 18 781 16 063
Exceptional items 362 2 361
Headline earnings 19 143 18 424
Notes
1. Basis of preparation The annual financial statements are prepared in
accordance with the requirements of South African Statements of Generally
Accepted Accounting Practice. The measurement basis used is the historical
cost basis which has been consistently applied. The annual financial
statements are prepared on the going concern basis.
2. Segmental reporting The directors are of the opinion that a segmental
report is not required as the Group"s operations consist mainly of tourism and
travel.
Group statement of changes in equity
Reviewed Audited
year ended year ended
30 September 30 September
2003 2002
R"000 R"000
Ordinary share capital
Balance at the beginning of the year 7 157 6 846
Issued during the period 15 311
Balance at the end of the year 7 172 7 157
Share premium
Balance at the beginning of the year 59 795 58 865
Premium on issue of shares 75 930
Balance at the end of the year 59 870 59 795
Revaluation reserve
Balance at the beginning of the year 232 232
Transfer to accumulated loss (232) --
Balance at the end of the year -- 232
Share capital reduction reserve fund
Balance at the beginning of the year 20 876 20 876
Balance at the end of the year 20 876 20 876
Capital redemption reserve fund
Balance at the beginning of the year 4 4
Balance at the end of the year 4 4
Foreign currency translation reserve
-- --
Balance at the beginning of the year
Reserve on translation
of foreign subsidiary (147) --
Balance at the end of the year (147) --
Accumulated loss
Balance at the beginning of the year (63 650) (79 713)
Attributable income for the year 18 781 16 063
--
Transfer from revaluation reserve 232
--
Ordinary dividend paid (7 172)
Balance at the end of the year (51 809) (63 650)
Ordinary shareholders" equity 35 966 24 414
Summarised group cash flow statement
Reviewed Audited
year ended year ended
30 September 30 September
2003 2002
R"000 R"000
Cash flows from operating activities
Operating income 17 211 18 624
Depreciation 5 880 5 914
Other non cash items (274) (1 061)
Changes in working capital 6 086 18 044
Cash generated from operating activities 28 903 41 521
Net interest received 5 580 479
Taxation (paid) (1 367) (2 576)
Preference dividends paid (3 014) (3 559)
Ordinary dividends paid (7 172) --
Net cash inflow from operating activities 22 930 35 825
Cash flows from investing activities
Investment to maintain operations:
Additions to goodwill (2 000) (2 140)
Additions of property, plant and equipment (13 831) (15 933)
Net proceeds from disposal of property,
plant and equipment 1 558 2 881
Net proceeds from disposal of
subsidiaries and investments -- 74 171
Net cash outflow from investing activities (14 273) 58 979
Cash flows from financing activities
Long-term liabilities repaid (43) (2 793)
Ordinary share capital issued 90 1 242
Net cash outflow from financing activities 47 (1 551)
(Decrease)/Increase in cash
and cash equivalents 8 704 93 253
Cash and cash equivalents
at beginning of period 68 068 (25 185)
Cash and cash equivalents
at end of period 76 772 68 068
Comments
Over view
The year started with promise and after six months all divisions were trading
at levels substantially up on the previous year. However, the travel
environment, both internally and externally, has been influenced by a number of
events. The most significant of these was the SARS epidemic in the Far East
which had a negative effect on profits over the last 6 months of the financial
year. To a lesser extent, the Iraqi war had a dampening effect on travel,
particularly out of the United States, and the uncertainties that accompany the
volatility of the South African Rand made trading conditions difficult. In
addition, the stronger Rand resulted in a write down of R2.2 million on the
loan account to the Singapore operation.
As a consequence, the comparative results for the year are relatively
disappointing after a very good first six months. The highlights are:
Headline earnings up from R18,424 million to R19,143 million for the year.
Attributable earnings up from R16,063 million to R18,781 million for the year.
Headline earnings per share remain at 2,7 cents per share for 2002 & 2003.
All of the regions with whom we trade in the Far East have now been declared
SARS free, and it is pleasing to note that these markets, both inbound and
outbound, have fully recovered.
Review of Operations
Thompsons Outbound
The Thompsons brand is a market leader in the outbound sector, and the feature
of its performance this year was a growth in turnover of 25% off a
comparatively high base. The irony of the stronger Rand is that substantially
higher traffic is required to produce the same level of turnover and both
volumes and costs have increased accordingly. Notwithstanding the higher
expenditure profits have increased.
This division continues to invest substantial sums on computer systems in order
to achieve better productivity. This expenditure will bear fruit in the medium
term.
Thompsons Inbound
With the exception of business from the Far East, the inbound division had a
ver y good year. Turnover from all markets was up, and good stable mar gins
were maintained. Our Singapore office sustained heavy losses as a direct
result of the SARS epidemic. The business has now recovered, and the forward
booking picture is healthy.
While the stronger Rand is a cause for concern in this division, inbound
turnover remains buoyant. This indicates that South Africa still offers good
value for money as a destination. Of far greater concern is the lack of air
capacity into South Africa over peaks and at reasonable prices, particularly
out of London, which is one of the bigger single markets.
Thompsons Touring
The Touring division, which sells excursions, overnight tours and sightseeing,
had a very good year. Our open vehicle game drive business in the Kruger
National Park has now been extended to Hluhluwe, and the volume increase has
allowed us to expand the range and frequency of regular tours with pleasing
results. This is a business of critical mass, which has now been achieved.
Continued growth in this area can be expected.
Corporate Retail Travel
Corporate Retail business, Thompsons Travel, had an indifferent year.
Pentravel
Pentravel, the leisure-based group of 15 travel agents, primarily located in
shopping malls, had a good year. Turnover was slightly up but profits improved
because of better margins.
Thompsons Leisure
The three Thompsons Leisure branches had pleasing results with significant
increases in both turnover and profits. The Thompsons Internet site, which is
being constantly upgraded, is starting to yield small but growing profits.
Manex
Manex profits declined during the year as a result of a slow down in the
yacht-building industry in South Africa which occurred as the industry
adjusted to the reality of the stronger currency, the soft American economy
and the Iraq war (a lot of yachts sales are American-based). Furthermore,
margins deteriorated temporarily because of price pressures caused by the
strengthening Rand.
As the currency has stabilised, so business has now returned to normal.
Interest
The group is cash flow positive and sensitive to interest rate changes. During
the past year positive cash flows and high interest rates contributed to the
improved results.
Acquisitions
The stated objectives of our group are to expand our activities in related
fields in Southern Africa, and in travel businesses internationally. To this
end we have acquired a second open vehicle game drive business in the Hluhluwe
area which complements our Kruger Park operation. Subsequent to year end, we
have also initiated the process of acquiring the business of African Travel, a
well-known brand in North America based in Los Angeles. African Travel has for
many years been a market leader in the sale of Tours and Safari"s to the
African continent and fits in with our objective of extending our international
distribution channels.
Prospects
The start of the new financial year is encouraging. All divisions are showing
real growth in both turnover and profits.
A A Thompson M Ness
Chief Executive Officer Chairman
2 December 2003
Auditors
BDO Spencer Steward (Jhb) Inc. will continue to act as auditors to the Company.
A preliminary audit review report is available for inspection. The audited
annual financial statements will be mailed to shareholders in December 2003.
Sponsors
LPC Manhattan Sponsors (Pty) Ltd, 4th Floor, Hyde Park Shopping Centre, Jan
Smuts Avenue, Hyde Park. (Registration number 1999/02479/07)
Directors
MA Ness (Chairman)*, VET O"Hana , DD Hosking **, Mr Bagus, AA Thompson,
QA Southey
Company Secretary: QA Southey
* British ** New Zealand Non-executive
Registered office
1st Floor, Dunkeld West Centre, 277 Jan Smuts Avenue, Dunkeld West
Transfer secretaries
Computershare Limited, Ground Floor, 70 Marshall Street, Johannesburg, 2001
(PO Box 1053, Johannesburg, 2000)
For further information on group activities, please write to:
The Group Secretary, Cullinan Holdings Limited, PO Box 41032, Craighall, 2024
Date: 03/12/2003 03:53:10 PM Supplied by www.sharenet.co.za
Produced by the JSE SENS Department
