| Mon 22 May 2006, 7:00 | | Cargo Carriers - Audited results for the year ende |
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CRG
CRG
Cargo Carriers - Audited results for the year ended 28 February 2006 and
Dividend announcement
Cargo Carriers Limited
(Registration number: 1959/003254/06)
Incorporated in the Republic of South Africa
("Cargo Carriers" or "the company")
JSE Share code: CRG
ISIN Code: ZAE000001764
Audited results for the year ended 28 February 2006 and Dividend announcement
Headline Earnings per share 23% up
Dividends Increased 122% up
Net asset Value per share 19% up
_____________________________________________________________________
Restated
2006 2005
______________________
R000 R000
CONSOLIDATED INCOME STATEMENT
Turnover 353,726 371,518
Other revenue 6,096 4,356
Operating and administration costs (304,415) (327,815)
Depreciation (18,643) (15,909)
Profit on disposal of tangible assets 2,125 1,868
Adjustments to value of assets 9,115 1,130
Income from associates and joint venture 327 654
______________________
Profit from operating activities 48,331 35,802
Finance costs (6,915) (6,147)
______________________
Profit before taxation 41,416 29,655
Taxation (9,075) (8,403)
______________________
Profit of the group for the year 32,341 21,252
Attributable to:
- Equity holders of the company 32,063 21,088
- Minority interests 278 164
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Profit for the year 32,341 21,252
______________________
FINANCIAL INFORMATION
Dividend per share (cents)
- interim declared during the year 7.5 5.0
- final declared after year end 22.5 10.0
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Total dividends 30.0 15.0
______________________
Earnings per share (cents) 165.2 108.7
Adjustments:
- Profit on sale of tangible assets (7.7) (6.7)
- Loss / ( Profit) on sale of investment
in subsidiary 1.0 (0.2)
- Impairment of goodwill - 8.3
- Write up of investment property to fair
value (40.2) (14.2)
- Impairment of investment 1.1 1.1
______________________
Headline earnings per share (cents) 119.4 97.0
______________________
Borrowings
Capacity utilised (%) 7.0 0.0
Total net borrowing capacity (R"000) 99,648 83,517
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Capital commitments (R"000) 11,071 4,276
______________________
Net asset value per share (cents) 1,017 856
______________________
Ordinary shares in issue
(closing and weighted average) (000) 19,406 19,406
SEGMENTAL ANALYSIS
Turnover
Industrial 220,363 221,548
Agricultural 90,252 108,473
Consumer 11,495 8,304
Supply chain services 31,616 33,193
______________________
353,726 371,518
______________________
Profit from operating activities
Industrial 43,169 34,173
Agricultural 13,862 8,648
Consumer 61 50
Supply chain services (8,761) (7,069)
______________________
48,331 35,802
______________________
CONSOLIDATED BALANCE SHEET
Non-current assets
Tangible assets 248,074 201,958
Deferred taxation 425 484
Loan and unlisted investment 101 304
Investments in associates 2,321 953
Investment in joint venture 3,557 1,131
Current assets
Receivables and inventories 47,693 54,103
Cash resources 50,155 49,138
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352,326 308,071
______________________
Equity
Ordinary shareholders" interest 197,275 166,114
Minority shareholders" interest 2,020 920
Non-current liabilities
Deferred taxation 40,916 34,410
Interest-bearing long-term loans 42,808 33,059
Current liabilities
Payables 54,714 64,256
Interest-bearing borrowings 14,593 9,312
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352,326 308,071
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CONSOLIDATED CASH FLOW STATEMENT
Operating profit after non-cash flow items 51,308 46,398
Increase in working capital (3,177) (20,018)
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Cash generated by operations 48,131 26,380
Interest received 4,497 2,468
Finance costs paid (6,915) (6,147)
Dividends paid (3,396) (2,911)
Taxation paid (4,123) (7,736)
______________________
Cash inflow from operating activities 38,194 12,054
Net cash inflow / (outflow) from
financing activities 15,030 (1,950)
Net cash flow from investing activities (52,207) (15,995)
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- Disposal of investment in subsidiary 573 459
- Increase in loan to joint venture
and associates (4,273) (443)
- Replacement of tangible assets (55,464) (26,684)
- Proceeds on sale of tangible assets 6,957 10,673
______________________
Cash generated / (utilised) during period 1,017 (5,891)
Net cash at beginning of period 49,138 55,029
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Net cash at end of period 50,155 49,138
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MOVEMENT IN EQUITY
Opening Equity 166,114 145,941
Revaluation of tangible assets 5,719 4,533
Transferred to deferred taxation (1,658) (1,360)
Foreign currency translation reserve (1,567) (1,177)
Net profit for the period 32,063 21,088
Dividends paid during the year (3,396) (2,911)
______________________
197,275 166,114
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Reconciliation of equity* 2005
R000
As reported under SA GAAP 143,604
Adjustments for:
- Depreciation 23,070
- Foreign currency translation reserve (341)
- Consolidation of subsidiary 701
As restated under IFRS 167,034
Reconciliation of net profit* 2005
R000
As reported under SA GAAP 16,888
Adjustments for:
- Depreciation 2,827
- Goodwill Adjustment 836
- Consolidation of subsidiary 701
As restated under IFRS 21,252
* The reconciliations provided have been amended since reporting of the group"s
interim results.
COMMENTARY
Independent Auditor"s Report
The annual financial statements of the group have been audited by the company"s
auditors, Ernst & Young. Their unqualified report is available for inspection
at the registered office of the company.
Review
The significant 52% increase in earnings per share is the pleasing product of
the company"s focus on customer service and operating efficiency the increase in
the value of the group"s investment property portfolio. The 17% increase in the
depreciation charge arising from fleet renewal has been more than compensated by
improvements in vehicle operating costs.
The improvement in profit from operating activities is evidence of the buoyant
industrial economy and the improved conditions in the agricultural sector.
A 12% equity stake in a subsidiary company was sold during the year resulting in
a loss on sale of R195,000. This is in terms of the shareholders agreement
between the group and the subsidiaries" BEE shareholder grouping.
The contingent liability in respect of retirement funding as previously
disclosed has been eliminated as a result of the Financial Services Board
approving the retirement fund surplus apportionment in terms of the relevant
legislation.
Prospects
The regional economy continues to be strong. The low interest rate environment,
the company"s strong balance sheet and the skills of the staff augur well for
continued growth in earnings.
The agricultural conditions are encouraging at this stage but abnormal
conditions may hamper operations in this segment.
Dividend Declaration
A final dividend (no. 30) of 22.5 (2005: 10.0) cents per share has been declared
to shareholders recorded in the books of the company at the close of business on
Friday 23 June 2006. The last date to trade cum dividend will be Thursday 15
June 2006 and the shares will trade ex dividend from the commencement of
business on Monday 19 June 2006. The dividend will be paid on Monday 26 June
2006. Share certificates may not be dematerialised / rematerialised between
Monday 19 June 2006 and Friday 23 June 2006, both days inclusive.
Accounting Policies
The financial results are prepared in accordance with International Financial
Reporting Standards (IFRS), the requirements of the South African Companies Act,
Act 61 of 1973, and the Listing Requirements of the JSE Limited ("Listing
Requirements"). In terms of the Listing Requirements the group is required to
prepare its consolidated financial statements in accordance with IFRS from 01
March 2005. The date of transition to IFRS is 01 March 2004. The group"s opening
balance sheet at 01 March 2004 has been restated to reflect all existing IFRS
statements. The effect of the transition from South African Statements of
Generally Accepted Accounting Practice ("SA GAAP") to IFRS on the group"s
assets, equity and its net profit are detailed in the reconciliations provided
below.
Under SA GAAP, an item of property, plant and equipment was depreciated as a
single unit. IAS 16 requires each part of an item of property, plant and
equipment with a cost significant in relation to the total cost of the item to
be depreciated separately. A significant part of an item of property, plant and
equipment may have a useful life and a depreciation method that is different
from the useful life and the depreciation method of another significant part of
that same item. The application of this statement resulted in a reduction in
depreciation being charged to the current period"s Income Statement, to the
previous year"s Income Statement and in the restatement of the opening balance
of retained income for 2005.
Negative goodwill, which arose on the acquisition of an additional 20% in a
subsidiary and existed on transition to IFRS was written off in terms of IFRS 3.
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, and consequently
the results of the Zimbabwe subsidiary have now been consolidated.
Independent Auditor"s Report
The annual financial statements of the group have been audited by the company"s
auditors, Ernst & Young. Their unqualified report is available for inspection
at the registered office of the company.
Registered Office
140 North Reef Road
Elandsfontein, 1406
Transfer Secretaries
Computershare Investor Services 2004 (Proprietary) Limited
70 Marshall Street
Johannesburg, 2001
(PO Box 61051, Marshalltown, 2107)
Website
www.cargocarriers.co.za
Cargo Carriers Limited, Registration number: 1959/003254/06
Incorporated in the Republic of South Africa ("Cargo Carriers" or "the company")
JSE Share code: CRG
ISIN Code: ZAE000001764
By order of the board
GD Bolton MJ Bolton
Director Director
19 May 2006
Directors
S G Chilvers (Chairman), G D Bolton,
M J Bolton, A E Franklin, B B Fraser, V Raseroka
Sponsor
LPC MANHATTAN MOELA
LPC MANHATTAN MOELA (PTY) LIMITED
REGISTRATION NUMBER 2001/009215/07
Date: 22/05/2006 07:00:16 AM Produced by the JSE SENS Department
