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Cullinan Holdings Limited - Results For The Year Ended 30 September 2004
Release Date: 01/12/2004 17:09:58 Code(s): CUL
Cullinan Holdings Limited - Results For The Year Ended 30 September 2004
CULLINAN HOLDINGS LIMITED
(Registration number 1902/001808/06)
Share code: CUL
ISIN number: ZAE000013710
RESULTS FOR THE YEAR ENDED 30 SEPTEMBER 2004
* Headline earnings up 37%
* EPS up from 2,7c to 3,6c
* Positive cash flow of R32,2 million
Group balance sheet
Reviewed year ended Audited year ended
30 September 30 September
2004 2003
R`000 R`000
Assets
Property, plant and equipment 37 744 28 577
Goodwill 9 909 12 501
Defer red taxation 12 000 9 000
Cur rent assets 179 544 143 352
- Inventories 9 749 9 247
- Accounts receivable 62 771 57 333
- Cash resources 107 024 76 772
Total assets 236 197 193 430
Equity and liabilities
Ordinary Shareholders` equity 54 277 35 966
Preference Shareholders` equity 1 046 1 046
Total Shareholders` equity 55 323 37 012
Redeemable preference shares - 25 000
Cur rent liabilities 180 874 131 418
Accounts payable 146 433 121 409
Short term loans - 1 627
Provisions 9 277 8 184
Redeemable preference shares 25 000 -
Receiver of Revenue 22 24
Preference dividends 208 174
Total equity and liabilities 236 197 193 430
Financial statistics
Cur rent ratio 1:1 1:1
Net asset value per share (cents) 7,7 5,2
Group income statement
Reviewed Audited
year ended year ended
30 September 30 September
2004 2003
R`000 R`000
Revenue * 204 838 177 085
Net operating expenses * (180 120) (159 512)
Operating income before exceptional items 24 718 17 573
Exceptional items (930) (362)
Operating income 23 788 17 211
Interest income 4 800 5 580
Preference dividends paid (2 109) (2 907)
Income before taxation 26 479 19 884
Taxation (1 162) (1 263)
Net income after taxation 25 317 18 621
Outside shareholders` portion of
losses/(profits) - 160
Income attributable to ordinary shareholders 25 317 18 781
Attributable profit per share (cents) 3,5 2,6
Headline profit per share (cents) 3,6 2,7
* Comparatives have been restated.
Ordinary shares (000`s)
- In issue 718 188 717 188
- Weighted average 718 188 717 188
Income per ordinary share (cents) 3,5 2,6
Headline income per ordinary
share (cents) 3,6 2,7
Determination of headline earnings
Net attributable income 25 317 18 781
Exceptional items 930 362
Headline earnings 26 247 19 143
Group statement of changes in equity
Reviewed Audited
year ended year ended
30 September 30 September
2004 2003
R`000
Ordinary share capital
Balance at the beginning of the year 7 172 7 157
Issued during the period 10 15
Balance at the end of the year 7 182 7 172
Share premium
Balance at the beginning of the year 59 870 59 795
Premium on issue of shares 30 75
Balance at the end of the year 59 900 59 870
Revaluation reserve
Balance at the beginning of the year - 232
Transfer to accumulated loss - (232)
Balance at the end of the year - -
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 (147) -
Reserve on translation of foreign
subsidiary 135 (147)
Balance at the end of the year (12) (147)
Accumulated loss
Balance at the beginning of the year (51 809) (63 650)
Attributable income for the year 25 317 18 781
Transfer from revalution reserve - 232
Ordinary dividend paid (7 181) (7 172)
Balance at the end of the year (33 673) (51 809)
Ordinary shareholders` equity 54 277 35 966
Summarised group cash flow statement
Reviewed Audited
year ended year ended
30 September 30 September
2004 2003
R`000 R`000
Cash flows from operating activities
Operating income 23 788 17 211
Depreciation 6 711 5 880
Other non cash items (245) (274)
Changes in working capital 20 111 6 086
Cash generated from operating activities 50 365 28 903
Interest received 4 800 5 580
Preference dividends paid (2 075) (3 014)
Ordinary dividends paid (7 181) (7 172)
Secondary taxation on companies (1 164) (1 367)
Net cash inflow/(outflow) from operating
activities 44 745 22 930
Cash flow from investing activities
Additions to property, plant and equipment (14 437) (13 831)
Acquisition of goodwill - (2 000)
Proceeds on disposal of property, plant
and equipment 1 531 1 558
Net cash inflow/(outflow) from investing
activities (12 906) (14 273)
Cash flow from investing activities
Ordinary share capital issued 40 90
Preference share capital redeemed - -
Short term loans repaid (1 627) (43)
Net cash inflow/(outflow) from financing
activities (1 587) 47
Net increase in cash and cash equivalents 30 252 8 704
Cash and cash equivalents
at beginning of year 76 772 68 068
Cash and cash equivalents
at end of year 107 024 76 772
Notes
1. Accounting policies
The accounting policies used in the preparation of the annual financial
statement for the year ended September 2004 are the same as those used in the
audited results for the financial year ended September 2003.
The annual financial statements comply with Statements of South African
Generally Accepted Accounting Practice.
2. Basis of accounting
These consolidated results were drawn up in compliance with statement AC127 of
South African Statements of Generally Accepted Practice and the company has
complied with the requirements of the Companies Act, 1973 (Act 61 of 1973) as
amended.
3. JSE Securities Exchange South Africa (`JSE`)
The directors of the company ensured compliance with the JSE Listings
Requirements during the year under review.
4. 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.
Comments
Over view
The year has been characterised by good growth in both the inbound and outbound
divisions which account for over 80% of group profits. Pentravel had a good
year, and the losses in the Singapore operation that were a result of the SARS
epidemic in the Far East last year, have been turned around into a small
profit. Trading conditions in the outbound division remain buoyant, and in
spite of a strong rand our inbound customers continue to deliver improved
turnovers.
The comparative results for the year make good reading and are as follows:
* Headline earnings improved by 37% from R19,1 million to R26,2 million.
* Attributable earnings improved by 35% from R18,7 million to R25,3 million.
* Headline earnings per share increased from 2,7c per share to 3,6c per share.
* Cash flows remain strong with cash balances at year-end totalling
R107,0 million.
Review of Operations
Thompsons Outbound
The Outbound division is a travel wholesaler that caters for the travel and
holiday requirements of people living in Southern Africa. Turnover continues to
grow of f an already high base. The Thompsons brand is a market leader in the
outbound market, and continues to grow in most destinations.
Thompsons Inbound
The inbound division is a destination marketing organisation that markets
Southern Africa to the rest of the world. The customer base is drawn primarily
from large international tourism companies that are located throughout the
world. More than half of the business comes from Britain, Ger many and the
Netherlands. Traffic is also generated from the America`s, Russia and the
Middle and Far East.
In spite of a dip in long haul arrivals into South Africa, inbound turnover
has improved which is encouraging. Our customer base has adjusted to the
reality of the stronger rand and Southern Africa still remains an attractive
destination. Continued growth from this sector can be expected.
Thompsons Touring
The Touring division, which provides excursions, overnight tours and
sightseeing, continues to expand. New offices have been opened at both Vic
Falls and in Windhoek.
Corporate Retail Travel
The corporate travel business is adjusting to the new dispensation in the
airline world where commissions are being replaced by fee paying structures.
Pentravel
Pentravel had a good year. It is a chain of leisure retail travel agents that
is based in major shopping malls. This year 3 new shops were opened and
turnover and profits are expected to improve.
Manex
Manex supplies the yacht building business in South Africa which is an export
driven activity that is very dependent on exchange rates. Yacht building is
well down because of the stronger rand. Efforts are being made to diversify
out of the dependence on yacht building.
Prospects
The new financial year has started well and indications are that the growth
will continue. The board believes that it is an apportune time, given the
group`s cash position and the strong rand, to pursue international
opportunities.
A A Thompson M Ness
Chief Executive Officer Chair man
1 December 2004
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 2004.
Sponsor
LPC Manhattan Sponsors (Pty) Ltd, 4th Floor, Hyde Park Shopping Centre, Jan
Smuts Avenue,
Hyde Park. (Registration number 1999/024792/07)
Directors
MA Ness (Chairman)*, VET O`Hana , DD Hosking **, Mr Bagus, GB TOLLMAN ***.
AA Thompson, QA Southey, LA Pampallis
Company Secretary: QA Southey
* British ** New Zealand *** USA Non Executive
Registered office
1st Floor, Dunkeld West Centre, 277 Jan Smuts Avenue, Dunkeld West
Transfer secretaries
Computershare Investor Services 2004 (Pty) Limited, Ground Floor, 70 Marshall
Street,
Johannesburg, 2001
(PO Box 61051, Marshalltown, 2107)
For further information on group activities, please write to:
The Group Secretary, Cullinan Holdings Limited, PO Box 41032, Craighall, 2024
