|
SOV
SOV
Sovereign - Unaudited Group results for the six months ended 31 August 2006
Sovereign Food Investments Limited
Registration number 1995/003990/06
Incorporated in the Republic of South Africa
JSE code: SOV & ISIN: ZAE000009221
("Sovereign" or "the group")
UNAUDITED GROUP RESULTS FOR THE SIX MONTHS ENDED 31 AUGUST 2006
HIGHLIGHTS
PROFIT AFTER TAX UP 55%
EARNINGS PER SHARE UP 42%
CASH GENERATED FROM OPERATIONS 119 CENTS PER SHARE
INTERIM CAPITAL DISTRIBUTION OF 8.5 CENTS PER ORDINARY SHARE
Income Statement
Unaudited Audited
six months ended year ended
31 August February
2006 2005 2006
R"000 R"000 R"000
Revenue 204 346 183 949 398 580
Operating income 42 907 31 690 93 489
Depreciation 4 523 3 808 7 500
Net interest paid 1 208 3 904 6 427
Net operating income 37 176 23 978 79 562
Normal and deferred taxation 10 764 6 970 22 907
Retained earnings for the period 26 412 17 008 56 655
Weighted average number of shares
in issue (000"s) 32 426 29 738 31 071
Earnings per share (cents) 81.5 57.2 182.3
Headline earnings per share (cents) 81.5 57.2 182.6
Capital distribution per share (cents)
- final prior year - - 53.5
Capital distribution per share (cents)
- interim 8.5 6.5 -
Reconciliation between earnings and headline earnings
Profit after taxation 26 412 17 008 56 655
Reconciling items:
Disposal of fixed assets - - (107)
Taxation effect - - 175
Headline profit after taxation 26 412 17 008 56 723
Balance Sheet
Unaudited Audited
six months ended year ended
31 August February
2006 2005 2006
R"000 R"000 R"000
Assets
Non-current assets
Property, plant and equipment 209 606 156 585 179 827
Current assets 213 922 160 988 232 092
Cash and cash equivalents 120 959 79 145 146 756
Inventory and biological assets 54 273 46 286 52 356
Trade and other receivables 38 690 35 557 32 980
Total assets 423 528 317 573 411 919
Equity and liabilities
Capital and reserves
Equity 193 079 146 506 184 057
Interest bearing debt 109 375 81 374 119 262
Long term portion 86 069 62 955 97 060
Short term portion 23 306 18 419 22 202
Deferred taxation 66 679 45 843 55 915
Trade and other payables 50 053 43 850 47 841
Provision for normal taxation 4 342 - 4 844
Total equity and liabilities 423 528 317 573 411 919
Cash Flow Statement
Unaudited Audited
six months ended year ended
31 August February
2006 2005 2006
R"000 R"000 R"000
Cash generated from operations
before working capital changes 42 868 31 751 93 382
Changes in working capital (4 376) 5 221 7 701
Cash generated from operating
activities 38 492 36 972 101 083
Interest paid (1 208) (3 904) (6 427)
Taxation paid (502) - (1 000)
Net cash flow from operating
activities 36 782 33 068 93 656
Capital distribution paid (17 331) (10 297) (12 405)
Net cash flow after capital
distribution 19 451 2 771 81 251
Net cash flows from investing
in fixed assets (26 992) (6 181) (18 245)
Net cash flows from issuing of shares - 25 617 25 736
Net cash flows from debt repayment (18 256) (9 852) 2 581
Net change in cash and cash
equivalents (25 797) 32 355 91 323
Statement of Changes in Equity
Share
Share Share based Retained
capital premium payments earnings Total
R"000 R"000 R"000 R"000 R"000
28 February 2006 325 54 186 446 129 100 184 057
Net profit for the
period - - - 26 412 26 412
Treasury shares - - - - -
New shares issued - - - - -
Share based payments - - (59) - (59)
Capital distribution - (17 331) - - (17 331)
31 August 2006 325 36 855 387 155 512 193 079
Share
Share Share Treasury based Retained
capital premium shares payments earnings Total
R"000 R"000 R"000 R"000 R"000 R"000
28 February 2005 294 41 005 (232) 327 72 492 113 886
Net profit for the
period - - - - 17 008 17 008
Treasury shares - - 232 - - 232
New shares issued 31 25 586 - - - 25 617
Share based payments - - - 60 - 60
Capital distribution - (10 297) - - - (10 297)
31 August 2005 325 56 294 - 387 89 500 146 506
Results for the period under review
The group had an excellent trading period and increased earnings per share by
42% over the prior period. Although the average poultry price decreased by 6%
over the prior period and the average spot price of yellow maize increased by
83% over the prior period, operating margins increased to 18.7% from 17.2%. The
results include a hedging profit of R4.6m for the period under review.
The 11% increase in turnover was driven by 17% increase in volumes over the
prior period. The expected capital expansion program of R25m has been
accelerated to drive higher volumes and it is expected that the total capital
expansion for the year will now be R65m.
Industry conditions
Higher than expected imports in the first half of the year led to a decline in
pricing. However, the recent depreciation of the Rand has since rectified this
situation.
Prospects
Pricing in the second half of the year is traditionally stronger than in the
first half of the year and the group expects the volume increase in the first
half to be maintained into the second half of the year.
Currently national supply and demand is balanced but there is concern about
potential industry over capacity in 2007.
Directorate
During the period under review Adrian Vardy resigned as a non-executive
director. The board wishes to thank Adrian for his many years of valuable
service to the group. During the period under review Mark Manley and Blaine van
Rensburg were appointed as executive directors.
Accounting policies
The condensed consolidated interim financial statements have been prepared in
accordance with International Financial Reporting Standards ("IFRS") with the
date of transition to IFRS for the group being 1 March 2005 and are consistent
with the accounting policies used in the previous period.
Interim capital distribution
In terms of a general authority granted to the directors at the annual general
meeting held on 22 June 2006, an interim capital distribution out of share
premium of 8.5 cents per ordinary share will be paid.
Financial effects of the interim capital distribution
The pro forma effect of the interim capital distribution on the historical
earnings, headline earnings, net asset value and net tangible asset value per
share of Sovereign is not significant (less than 3%).
Last date to trade "CUM" the interim capital distribution ("LDT"): Friday, 13
October 2006
Trading commences "EX" the interim capital distribution: Monday, 16 October 2006
Record date: Friday, 20 October 2006
Date of payment: Monday, 23 October 2006
Share certificates may not be dematerialised or rematerialised between Monday,
16 October 2006 and Friday, 20 October 2006, both dates inclusive.
By order of the board
RB Spanjaard MJ Davis
Non-executive chairman Chief executive officer
26 September 2006
Directorate
RB Spanjaard* (Non-executive chairman), MJ Davis (Chief executive officer), BR
Cape*, C Coombes, MP Manley, BA Spanjaard*, B Van Rensburg (* Non- executive).
Transfer secretaries
Computershare Investor Services 2004 (Pty) Limited
PO Box 61051
Marshalltown 2107
Gauteng
Registered office
Kruis River Road
Uitenhage 6230
PO Box 1386
Uitenhage 6230
Sponsor
Barnard Jacobs Mellet Corporate Finance (Pty) Limited
e-mail: info@sovfoods.co.za
Website: www.sovfoods.co.za
Date: 26/09/2006 02:30:09 PM Produced by the JSE SENS Department
| Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information. | |||||||||||||
| Other Profile Group sites: FundsData Online (unit trust data) | Profile Group corporate site | |||||||||||||
| [ Terms of Use | Privacy Policy | PAIA manual | FAQs/Help | Site Map | © Copyright Reserved 2026 ] | |||||||||||||
|
|||||||||||||
