| Wed 9 Nov 2005, 14:35 | | Oceana - Audited group results and dividend declar |
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Oceana - Audited group results and dividend declaration
Oceana Group Limited
JSE Share Code: OCE
NSX Share Code: OCG
ISIN Number: ZAE000025284
Incorporated in the Republic of South Africa
(Registration Number 1939/001730/06)
AUDITED GROUP RESULTS AND DIVIDEND DECLARATION FOR THE YEAR ENDED 30 SEPTEMBER
2005
The results of the group for the year ended 30 September 2005 are set out
herein.
The accounting policies used in preparing this report are consistent with those
used in the annual financial statements which have been prepared in accordance
with South African Statements of Generally Accepted Accounting Practice on a
basis consistent with the previous year.
The financial information has been audited by Deloitte & Touche, whose
unqualified opinion is available for inspection at the registered office of the
company.
Oceana Group Limited
Registered Office: 16th Floor Metropolitan Centre, 7 Coen Steytler Avenue,
Cape Town 8001
Transfer Secretaries: Computershare Investor Services 2004 (Pty) Limited, 70
Marshall Street, Johannesburg 2001 (P O Box 61051, Marshalltown 2107).
Sponsors:
South Africa: The Standard Bank of South Africa Limited
Namibia: Old Mutual Investment Services (Namibia) (Pty) Limited
Directors : DMJ Ncube (Chairman), RA Williams (Vice Chairman),
AB Marshall* (Chief Executive Officer), MA Brey, BP Connellan, N Dennis,
LT Langeni*, RG Nicol*, S Pather, RV Smither. (*executive)
Company Secretary: JD Cole
GROUP INCOME STATEMENT
Audited Audited
2005 2004 Change
Note R"000 R"000 %
Revenue 2,576,513 2,487,502 4
Operating profit before abnormal items 185,074 221,483 (16)
Abnormal items 1 (27,830) 4,949
Operating profit 157,244 226,432
Dividends received 1 2,976
Net interest received 26,607 16,617
Profit before taxation 183,852 246,025 (25)
Taxation 64,859 78,522 (17)
Profit after taxation 118,993 167,503
Attributable to outside shareholders
in subsidiaries 7,455 3,123
Attributable to own shareholders 111,538 164,380 (32)
Number of shares in issue (000"s) 112,104 109,976
Weighted average number of shares on
which earnings per share and headline
earnings per share are based (000"s) 111,525 109,530
Adjusted weighted average number of shares
on which diluted earnings per share and
diluted headline earnings per share
are based (000"s) 112,246 111,670
Earnings per share (cents)
Basic 100.0 150.1 (33)
Diluted 99.4 147.2 (32)
Headline earnings per share (cents)
Basic 109.8 143.8 (24)
Diluted 109.1 141.1 (23)
Dividends per share (cents) 74.0 76.5 (3)
DETERMINATION OF HEADLINE EARNINGS
Attributable to own shareholders 111,538 164,380
Adjusted for:
- Provision for loans, staff retrenchment
and other closure costs in Namibian
whitefish business 14,201 0
- Impairment loss on property, plant
and equipment in Namibian whitefish
business 5,580 160
- Impairment loss on other assets 2,779 0
- Net surplus on disposal of property,
plant and equipment (4,540) (6,567)
- Profit on change of interest
in subsidiaries and joint ventures (7,103) (416)
- Headline earnings for the year 122,455 157,557 (22)
GROUP STATEMENT OF CHANGES IN EQUITY
Audited Audited
2005 2004
R"000 R"000
Balance at the beginning of the year 848,613 768,863
Shares issued 14,420 8,630
Increase in treasury shares
held by Share Trust (336) (128)
Movement on foreign currency
translation reserve (905) (9,567)
Net profit for the year attributable to
own shareholders 111,538 164,380
Profit on sale of treasury shares 238 250
Dividends (82,674) (83,815)
Balance at the end of the year 890,894 848,613
GROUP BALANCE SHEET
Audited Audited
2005 2004
R"000 R"000
Assets
Non-current assets 388,765 460,496
Property, plant and equipment 279,413 310,389
Goodwill 18,302 18,581
Fishing rights and trademarks 34,537 35,397
Deferred taxation 13,588 20,990
Investments and loans 42,925 75,139
Current assets 1,080,990 1,011,406
Inventories 242,413 309,288
Accounts receivable 457,996 502,380
Cash and cash equivalents 380,581 199,738
_________ _________
Total assets 1,469,755 1,471,902
Equity and liabilities
Capital and reserves 890,894 848,613
Share capital and premium 55,480 41,396
Non-distributable reserves 12,025 12,930
Distributable reserves 823,389 794,287
Interest of outside shareholders 21,192 14,577
Non-current liabilities
Deferred taxation 22,453 24,287
Current liabilities 535,216 584,425
Accounts payable and provisions 437,830 502,142
Bank overdraft 97,386 82,283
Total equity and liabilities 1,469,755 1,471,902
Net asset value per ordinary share (cents) 795 772
Total liabilities excl deferred tax:
Total shareholders"funds (%) 59 68
Total borrowings: Total shareholder"s funds (%) 11 10
GROUP CASH FLOW STATEMENT
Audited Audited
2005 2004
R"000 R"000
Cash flows from operating activities
Operating profit before abnormal items 185,074 221,483
Adjustment for non cash items 59,496 57,822
Cash operating profit before working
capital changes 244,570 279,305
Working capital changes 33,989 (55,860)
Cash generated from operations 278,559 223,445
Interest and dividends received 29,048 23,876
Interest paid (2,440) (4,283)
Taxation paid (62,366) (104,766)
Dividends paid (83,587) (86,464)
Net cash inflow from operating activities 159,214 51,808
Cash flow applied to investing activities (16,119) (153,899)
Net cash inflow (outflow) before financing
activities 143,095 (102,091)
Net cash flows from financing activities 17,822 18,459
Net increase/(decrease) in cash and cash
equivalents 160,917 (83,632)
Cash and cash equivalents at the
beginning of the year 117,455 205,040
Effect of exchange rate changes 4,823 (3,953)
Cash and cash equivalents at the end of the year 283,195 117,455
SEGMENT REPORT
Audited Audited
2005 2004
R"000 R"000
Revenue
Inshore Fishing 1,470,587 1,333,448
Midwater and Deep-sea Fishing 939,091 1,007,779
Commercial Cold Storage & Logistics 166,835 146,275
Total 2,576,513 2,487,502
Operating profit before abnormal items
Inshore Fishing 106,971 137,820
Midwater and Deep-sea Fishing 17,903 36,842
Commercial Cold Storage & Logistics 60,200 46,821
Total 185,074 221,483
Total assets
Inshore Fishing 638,124 682,455
Midwater and Deep-sea Fishing 275,297 309,270
Commercial Cold Storage & Logistics 119,239 184,310
Financing 423,507 274,877
1,456,167 1,450,912
Deferred taxation 13,588 20,990
Total 1,469,755 1,471,902
Total liabilities
Inshore Fishing 335,015 351,121
Midwater and Deep-sea Fishing 60,655 61,619
Commercial Cold Storage & Logistics 27,848 89,402
Financing 111,698 82,283
535,216 584,425
Deferred taxation 22,453 24,287
Total 557,669 608,712
The squid business which was previously
included in the midwater and deep-sea fishing
segment is now included in the inshore fishing
segment. Prior year comparative figures have
been restated accordingly.
NOTES
Audited Audited
2005 2004
R"000 R"000
1. Abnormal items
Provision for loans, staff retrenchment and
other closure costs in Namibian whitefish
business (28,764) -
Impairment loss on property, plant and equipment
in Namibian whitefish business (5,580) -
Impairment loss on other assets (3,138) -
Net surplus on disposal of property, plant
and equipment 2,364 5,072
Profit/(loss) on change of interest in
subsidiaries and joint ventures 7,288 (123)
Abnormal (loss)/profit before taxation (27,830) 4,949
Taxation 162 (88)
Abnormal (loss)/profit attributable to own
shareholders (27,668) 4,861
2. Dividends
Dividend declared after reporting date 66,141 64,886
3. Supplementary information
Cost of sales 1,812,179 1,704,794
Depreciation 58,168 58,036
Amortisation of goodwill and other intangibles - 1,190
Operating lease charges 18,647 15,669
Foreign exchange profit (2,075) (5,488)
Capital expenditure 46,072 93,300
Expansion 2,643 57,144
Replacement 43,429 36,156
Capital commitments 96,925 70,908
Contracted 703 2,246
Not contracted 96,222 68,662
COMMENTS
Financial Results
Headline earnings per share for the year ended 30 September 2005 decreased by
24% compared to those of the previous year. This was mainly due to difficult
fishing conditions in most industry sectors, competitive market conditions, the
strong rand and the costs of closure of the Namibian hake operations.
Group turnover increased by 4% whilst operating profit before abnormal items
declined by 16%. The effective tax rate was negatively impacted by certain
abnormal losses not being deductible for tax purposes.
Net cash balances increased by R166 million over the previous year end balances
mainly as a result of the reduction in inventories and the sale of TRT Shipping
Services.
An unchanged final dividend of 59.0 cents per share has been declared, which
together with the interim dividend of 15.0 cents, brings the total dividend for
the year to 74.0 cents per share (2004:76.5 cents).
Review of operations
Inshore Fishing
The 2005 total allowable catch (TAC) for pilchard was 382,119 tons (2004:
457,000 tons). Pilchard landings were lower than last year due to poor catches
in the early part of the year and fish being available only on the south and
east coasts. Costs increased as a result of longer fishing trips and having to
transport fish by road from Mossel Bay to the cannery at St Helena Bay. Pilchard
fishing in Namibia was good and the final TAC was set at 25,000 tons (2004:
25,000 tons).
Sales volumes of canned fish on the domestic market under the Lucky Star brand
increased appreciably over the previous year, although margins were lower in the
first half due to a very competitive market.
Glenryck UK (acquired 31 March 2004) performed well and achieved increased sales
volumes in the UK market. Most of its canned pilchard requirements were sourced
from the Etosha cannery in Namibia.
Overall, profitability from canned fish including Glenryck UK was slightly
higher than the previous year.
The fish meal operations showed a turnaround in the second half of the year and
recorded a profit after good winter catches of anchovy. Profits for the full
year were significantly lower than the previous year due to lower selling
prices.
The group"s lobster quota was landed in full. Fishing costs were higher due to a
lower catch per vessel and higher fuel costs. Export prices for lobster improved
on last year and realisations in rand terms were higher despite the stronger
rand exchange rate. Profits were slightly lower than the previous year.
Squid catches were reasonable, however, financial results were negatively
affected by the holding costs of high stock levels carried forward from the
previous season and low market prices.
Midwater and Deep-sea Fishing
Selling prices for Namibian horse mackerel were at similar levels to the
previous year. Higher fuel prices impacted on fishing costs despite conversions
to the vessels to enable the use of lower priced fuel grades. Trading volumes of
fish sourced from external fleets were higher than the previous year although
margins were lower. Overall, profitability from midwater pelagic was in line
with that of the previous year.
Hake results in South Africa were affected by inconsistent catches and a large
proportion of small fish resulting in lower prices which, together with the
strong rand exchange rate produced lower earnings than last year. Namibian hake
operations were discontinued in the first half. Costs of closure have been
recognised in full and disclosed as abnormal items in the income statement.
Tuna trading recorded a loss due to poor trading in the first half of the year
combined with lower than normal volumes out of South Africa and Namibia.
Cold Storage and Logistics
The cold storage division experienced higher occupancy levels as a result of
increased import activity whilst the Maydon Wharf steri-fruit facility handled
significantly higher volumes. The division performed extremely well and achieved
substantially higher profits than the previous year.
TRT Shipping Services was disposed of with effect from 1 July 2005. Financial
results of operations have been included to date of disposal and the profit on
disposal has been included in abnormal items.
Long Term Fishing Rights
Oceana"s operating subsidiaries applied for long term commercial fishing rights,
from 2006 onwards, in the sectors in which they are active. Results of
applications and allocations of rights are expected in November and December
2005. These rights are for periods between eight years (squid) and fifteen years
(small pelagic).
Prospects
The board expects an increase in headline earnings per share for the year ahead
subject to a satisfactory outcome to long term fishing rights.
On behalf of the board.
DMJ Ncube AB Marshall
Chairman Chief Executive Officer
DIVIDEND DECLARATION
Notice is hereby given that a final dividend No. 124 of 59.0 cents per share, in
respect of the year ended 30 September 2005, was declared on Wednesday
09 November 2005. Relevant dates are as follows:
Last day to trade cum dividend - Friday 6 January 2006
Commence trading ex dividend - Monday 9 January 2006
Record date - Friday 13 January 2006
Dividend payable - Monday 16 January 2006
Share certificates may not be dematerialised or rematerialised between
Monday 9 January 2006 and Friday 13 January 2006, both dates inclusive.
By order of the board
JD Cole Secretary
9 November 2005
JSE Share Code: OCE
ISIN Number: ZAE000025284
Date: 09/11/2005 02:35:19 PM Produced by the JSE SENS Department
