Crookes Brothers - Publication Of Chairman"s Addre
Crookes Brothers - Publication Of Chairman`s Address
CROOKES BROTHERS LIMITED
(INCORPORATED IN THE REPUBLIC OF SOUTH AFRICA)
(REGISTRATION NUMBER 1913/000290/06)
(`THE COMPANY`)
SHARE CODE: CKS ISIN: ZAE000001434
PUBLICATION OF CHAIRMAN`S ADDRESS TO THE ANNUAL GENERAL MEETING OF SHAREHOLDERS
ON 28 JULY 2005
`Ladies and Gentlemen,
I welcome the opportunity provided by this shareholders` meeting to give you a
brief update on the company`s prospects for the current year.
Management is currently in the process of finalising the first revision of our
annual budgets for the 2005/06 financial year and at this stage estimated
volumes of all crops are expected to be significantly higher than those achieved
in the previous year.
The estimated 627 000 tons of cane to be harvested during the current season is
some 11% higher than the previous season`s 563 931 tons. This increase in
volumes is despite the continuing drought, which is significantly affecting our
Komatipoort estates.
Both the South African RV and the Swaziland sucrose prices are higher than those
of the 2004 season mainly as a result of the continuing stronger world sugar
prices and a weaker Rand.
Banana yields are expected to be 30% higher than the previous season and local
market prices are estimated to be similar to those of the previous season.
Management continues with its policy of preferential water allocation to this
crop on our Komatipoort estates.
The grapefruit season is now complete and both yields and quality standards
exceeded original estimates. Export cartons of grapefruit are 30% higher than
the previous year whilst overall citrus tonnage is expected to be 20% higher
than the 2004 season.
As a result of the weaker Rand and improved size distribution, export grapefruit
prices are anticipated to be significantly higher than the previous year.
The valencia harvest is currently in progress and early indications are that
production volumes will be similar to the previous year.
Due to the excellent weather conditions, which have prevailed in the Western
Cape, grain yields are expected to be at normal levels. The industry anxiously
awaits the Government`s decision on the long outstanding issue of wheat import
tariffs.
Our deciduous fruit estates are now heading towards normal production cycle
levels due to the younger orchards achieving higher incremental yields. For
current budget purposes, export deciduous fruit prices have been based on the
2004 season figures.
In general, all agricultural imput costs with the notable exceptions of fuel and
fertilizer, are continuing to be well contained.
In summary, as a result of the abovementioned factors, considerable earnings
growth is expected during the current financial year.
As mentioned in the 2005 Annual Report, our Managing Director - Mr. Dudley
Crookes, will be retiring at the end of July 2006 after 26 years service with
the company. I wish to advise shareholders that the necessary steps have been
put in place by the Remuneration/Nominations Committee to find a suitable
replacement and for a smooth transition of executive responsibilities during
2006.
Many shareholders have complained that they are not receiving the company`s
financial reports. We have analysed the current list of dematerialized
shareholders and it is interesting to note that less than 40% of the total
beneficial shareholders are recorded as `yes` to receive our reports. Should you
wish to receive all company reports please contact your Central Securities
Depository Participant or broker and insist that they action your request.`
J F C PALMER DURBAN
CHAIRMAN 28 JULY 2005
Date: 29/07/2005 04:01:08 PM
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