| Thu 20 Oct 2005, 7:05 | | Cargo Carriers Limited - Unaudited results and div |
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Cargo Carriers Limited - Unaudited results and dividend announcement
Cargo Carriers Limited
Company registration number 1959/003254/06
Incorporated in the Republic of South Africa
("Cargo Carriers" or "the company")
JSE Share code: CRG
ISIN Code: ZAE000001764
UNAUDITED RESULTS FOR THE SIX MONTHS ENDED 31 AUGUST 2005 AND DIVIDEND
ANNOUNCEMENT
R"000 R"000 R"000
__________________________________________________________________
Restated
Unaudited unaudited *Restated
6 months 6 months unaudited
ended ended year to
31/08/2005 31/08/2004 28/02/2005
________________________________
CONSOLIDATED INCOME STATEMENT
Revenue 192,686 200,286 373,074
Interest received 2,405 1,445 2,800
Operating and administration costs (163,316) (175,931) (328,351)
Depreciation (8,658) (6,837) (13,589)
Profit/(loss) on disposal of
tangible assets 626 (465) 1,868
Income/(losses) from associates
and joint venture 248 (225) 654
________________________________
Profit from operating activities 23,991 18,273 36,456
Finance costs (4,065) (3,453) (6,147)
________________________________
Profit before taxation 19,926 14,820 30,309
Taxation (6,754) (4,294) (8,403)
________________________________
Net profit of the group 13,172 10,526 21,906
________________________________
Attributable to:
Ordinary shareholders 13,093 10,387 21,742
Minority shareholders 79 139 164
________________________________
Net profit for the period 13,172 10,526 21,906
________________________________
FINANCIAL INFORMATION
Dividend per share (cents)
- paid during the period 10.0 10.0 5.0
- declared after period end 7.5 5.0 10.0
________________________________
Total dividends 17.5 15.0 15.0
________________________________
Earnings per share (cents) 67.5 53.5 112.1
Adjustments:
- (Profit)/loss on sale of
tangible assets (2.3) 1.7 6.7
- Profit on sale of investment in
subsidiary - - (0.2)
- Impairment of goodwill - - 8.8
- Write up of investment property to
fair value - - (16.6)
- Impairment of investment 0.5 0.5 1.0
________________________________
Headline earnings per share
(cents) 65.7 55.7 111.8
________________________________
Borrowings
Capacity utilised (%) 28.9 33.1 -
Total net borrowing capacity
(R"000) 93,465 81,543 87,718
________________________________
Capital commitments (R"000) 9,487 17,577 4,276
________________________________
Retirement fund contribution
suspension contingent liability
(R"000) 10,187 9,514 10,187
________________________________
Net asset value per share (cents) 958 836 900
Ordinary shares in issue (closing
and weighted average) (000) 19,400 19,400 19,400
________________________________
SEGMENTAL ANALYSIS (R"000)
Revenue
Industrial 113,111 109,861 221,548
Agricultural 62,150 66,780 110,029
Consumer 4,528 4,877 8,304
Supply chain services 12,897 18,768 33,193
________________________________
192,686 200,286 373,074
________________________________
Profit from operating activities
Industrial 17,246 13,563 34,827
Agricultural 7,891 6,601 8,648
Consumer 702 102 50
Supply chain services (1,848) (1,993) (7,069)
________________________________
23,991 18,273 36,456
________________________________
CONSOLIDATED BALANCE SHEET (R"000)
Non-current assets
Tangible assets 246,838 213,247 213,940
Deferred taxation 435 640 484
Unlisted investment 203 406 304
Investments in associates 2,413 503 953
Investment in joint venture 1,073 502 1,131
Goodwill - 2,082 -
Current assets
Receivables and inventories 71,086 85,735 54,103
Cash resources 39,854 28,628 49,138
________________________________
361,902 331,743 320,053
________________________________
Equity
Ordinary shareholders" interest 185,931 162,191 174,516
Minority shareholders" interest 999 895 920
Non-current liabilities
Deferred taxation 41,703 37,582 37,991
Interest-bearing long-term loans 56,327 40,095 33,059
Current liabilities
Payables 66,398 75,432 64,255
Interest-bearing borrowings 10,544 15,548 9,312
________________________________
361,902 331,743 320,053
________________________________
CONSOLIDATED CASHFLOW STATEMENT (R"000)
Operating profit after non-cashflow
items 29,127 25,501 42,251
Increase in working capital (16,127) (41,784) (18,505)
________________________________
Cash generated by/(utilised in)
operations 13,000 (16,283) 23,746
Interest received 2,405 1,445 2,800
Finance costs paid (4,065) (3,453) (6,147)
Dividends paid (1,941) (1,941) (2,911)
Taxation paid (1,699) (6) (7,735)
________________________________
Cash inflow/(outflow) from
Operating activities 7,700 (20,238) 9,753
Net cash inflow/(outflow) from
financing activities 24,495 11,323 (1,950)
Net cashflow from investing
activities (41,479) (17,486) (13,694)
________________________________
- Disposal of investment in
subsidiary - 459 459
- Decrease in loan to joint
venture - (143) 9
- Loan to associate 321 - (452)
- Replacement of tangible assets (44,803) (19,483) (26,684)
- Proceeds on sale of tangible
assets 3,003 1,681 12,974
________________________________
Cash utilised during period (9,284) (26,401) (5,891)
Net cash at beginning of period 49,138 55,029 55,029
________________________________
Net cash at end of period 39,854 28,628 49,138
________________________________
MOVEMENT IN EQUITY (R"000)
Ordinary shareholders" interest
At beginning of period 174,516 153,689 153,689
Movement for the period:
Revaluation of tangible assets - - 4,533
Transfer to deferred taxation - - (1,360)
Foreign currency translation reserve 263 56 (1,177)
Net profit for the period 13,093 10,387 21,742
Dividends paid during the period (1,941) (1,941) (2,911)
________________________________
At end of period 185,931 162,191 174,516
________________________________
Minority shareholders" interest
At beginning of period 920 297 297
Movement for the period:
- Disposal of interest in
subsidiary - 459 459
Net profit for the period 79 139 164
________________________________
At end of period 999 895 920
________________________________
Basis of Presentation and Accounting Policies
The results for the six months ended 31 August 2005, and comparative
information, have been prepared in terms of International Financial Reporting
Standards (IFRS) expected to be applicable at 28 February 2006 and comply with
IAS 34 - Interim Financial Reporting and relevant sections of the Company"s Act
in South Africa.
The Cargo Carriers group"s transition date is 1 March 2004. The financial
statements for the year ending 28 February 2006 will be the group"s first
consolidated IFRS-compliant financial statements. The disclosures required by
IFRS 1 (First-time adoption of International Financial Reporting Standards)
concerning the transition from South African Statements of Generally Accepted
Accounting Practice (SA GAAP) to IFRS and the required changes in accounting
policies are presented under the heading - "Reconciliation between IFRS and SA
GAAP".
At transition date IFRS 1 allows a number of exemptions to the retrospective
application principle on adoption of IFRS. The group has taken advantage of the
following optional exemptions from full retrospective application:
- The group made an election not to restate acquisitions prior
to the date of transition to IFRS. Goodwill is included on the
basis of its deemed cost, which represents the amount recorded
under SA GAAP. Negative goodwill was written off at transition
date.
- Cumulative foreign currency translation reserves in existence at
the transition date, arising from the previous application of SA
GAAP have been recognised in retained income in determining the
opening IFRS balance sheet at that date.
The following significant new accounting policies were applied for IFRS
reporting:
- Where parts of an item of property, plant and equipment have
different useful lives, they are accounted for as separate items
of property, plant and equipment. Residual values and useful
lives of all assets are reassessed annually.
- Goodwill which was previously amortised is tested annually for
impairment and carried at cost less accumulated impairment
losses.
- Foreign exchange differences arising on translation of all
foreign operations are recognised directly in a separate
component of equity - foreign currency translation reserve.
- Subsidiaries in the group that operate under severe long-term
restrictions that significantly impair their ability to transfer
funds were not consolidated under SA GAAP. These exclusions are
no longer provided for in IAS 27 (revised) and such subsidiaries
are now consolidated.
* The audited results for the 12 months ended 28 February 2005 under SA GAAP
have been restated as unaudited due to the IFRS adjustments not having been
audited by the external auditors.
RECONCILIATION BETWEEN IFRS AND SA GAAP
The following reconciliations provide a quantification of the effect, after
taxation, of the transition to IFRS:
Reconciliation of equity
__________________________________________________________________
R"000 28/02/2005 31/08/2004 01/03/2004
__________________________________________________________________
As reported under SA GAAP 142,685 131,192 125,699
Adjustments for:
Depreciation 31,471 29,518 27,614
Reversal of negative goodwill - 376 376
Reversal of amortisation of goodwill - 55 -
Foreign currency translation
reserve (341) 16 -
Consolidation of subsidiary 701 1,034 -
________________________________
As reported under IFRS 174,516 162,191 153,689
________________________________
Reconciliation of net profit
__________________________________________________________________
R"000 12 months 6 months
28/02/2005 31/08/2004
__________________________________________________________________
As reported under SA GAAP 16,724 7,433
Adjustments for:
Depreciation 3,857 1,903
Reversal of amortisation of goodwill 99 55
Impairment of goodwill (475) -
Foreign currency translation reserve 836 (38)
Consolidation of subsidiary 701 1,034
______________________
As reported under IFRS 21,742 10,387
______________________
Review
Improved trading conditions and the careful management of vehicle utilisation
and costs have enabled the company to show a pleasing increase of 25.1% in group
net profit. This is despite a decrease in revenue of 4% through the
rationalisation of business which was performing below expectation.
The net finance costs have increased over those of last year but strong
operational cash flows, good working capital management, and the low interest
rate environment, have contained the overall impact of the amount spent to renew
and modernise the vehicle fleet.
The consolidation of the Zimbabwean operations has negatively affected profits
because of the vast devaluation of the Zimbabwean dollar.
Prospects
The industrial sector continues to be strong; whilst indications are that the
agricultural sector will meet expectations. Much depends on the rainfall pattern
in the second half year.
The prospects for the company"s chosen business sectors are positive and
shareholders can anticipate improved results for the full year in this the 5Oth
year of trading since the late Des Bolton founded the business.
Dividend Declaration
An interim dividend (no. 29) of 7.5 (2004: 5.0) cents per share has been
declared to shareholders recorded in the books of the company at the close of
business on Thursday, 15 December 2005. The last date to trade cum dividend
will be Thursday, 8 December 2005 and the shares will trade ex dividend from the
commencement of business on Friday, 9 December 2005. The dividend will be paid
on Monday, 19 December 2005. Share certificates may not be
dematerialised/rematerialised between Friday, 9 December 2005 and Thursday, 15
December 2005, both days inclusive.
By order of the board
MJ Bolton
Company Secretary
19 October 2005
Directors
S G Chilvers (Chairman), G D Bolton, M J Bolton, A E Franklin, B B Fraser, V
Raseroka
Registered Office
140 North Reef Road
Elandsfontein, 1406
Website: www.cargocarriers.co.za
Company registration number 1959/003254/06
Incorporated in the Republic of South Africa ("Cargo Carriers" or "the company")
JSE Share code: CRG
ISIN Code: ZAE000001764
Transfer Secretaries
Computershare Investor Services 2004 (Pty) Limited
70 Marshall Street
Johannesburg, 2001
(PO Box 61051, Marshalltown, 2107)
Sponsor
LPC MANHATTAN MOELA (PTY) LIMITED
REGISTRATION NUMBER 2001/009215/07
Date: 20/10/2005 07:05:13 AM Produced by the JSE SENS Department
