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Spanjaard Limited - Unaudited Results For The Six Months Ended 31 August 2005

Release Date: 17/11/2005 17:00:01      Code(s): SPA
Spanjaard Limited - Unaudited results for the six months ended 31 August 2005   
SPANJAARD LIMITED                                                               
(Incorporated in the Republic of South Africa)                                  
Registration number 1960/004393/06                                              
Share code: SPA & ISIN: ZAE000006938                                            
UNAUDITED RESULTS FOR THE SIX MONTHS ENDED 31 AUGUST 2005                       
CONSOLIDATED INCOME STATEMENT                                                   
Six months to                 Twelve       Twelve     
                           31 August                 months to    months to     
                        2005          2004            28.02.05     28.02.05     
                                  Restated            Restated      SA GAAP     
Unaudited     Unaudited           Unaudited      Audited     
                       R"000         R"000               R"000        R"000     
Sales                 36 571        32 604              67 395       67 423     
Cost of sales         28 401        25 144              51 248       51 270     
Gross profit           8 170         7 460              16 147       16 153     
Operating expenses     8 000         7 049              14 236       14 238     
Depreciation and                                                                
amortisation             567           539               1 087        1 159     
(Loss)/profit from                                                              
operations             (397)         (128)                 824          756     
Finance                                                                         
income/(costs) -                                                                
net                    (187)         (272)                 106          106     
(Loss)/profit                                                                   
before tax             (584)         (400)                 930          862     
Income tax                                                                      
benefit/(expense)        164            36               (334)        (334)     
Net (loss)/profit      (420)         (364)                 596          528     
Number of ordinary                                                              
shares                                                                          
in issue ("000)        5 700         5 700               5 700        5 700     
(Loss)/earnings                                                                 
per ordinary share                                                              
- basic and                                                                     
diluted (cents)        (7,4)         (6,4)                10,5          9,3     
Headline (loss)/                                                                
earnings per                                                                    
ordinary                                                                        
share - basic and                                                               
diluted (cents)        (7,4)         (6,8)                10,2         10,3     
Dividend declared                                                               
per ordinary                                                                    
share (cents)                                              7,0          7,0     
Net asset value                                                                 
per share (cents)      228.8         226,3               236,2        234,1     
CONSOLIDATED CASH FLOW STATEMENT                                                
Six months to            Twelve       Twelve     
                                 31 August           months to    months to     
                              2005          2004      28.02.05     28.02.05     
                                        Restated      Restated      SA GAAP     
Unaudited     Unaudited     Unaudited      Audited     
                             R"000         R"000         R"000        R"000     
Cash flows from                                                                 
operating activities       (3 659)       (4 193)         (287)        (302)     
Cash flows from                                                                 
investing activities         (968)         (729)       (1 308)      (1 308)     
Cash flows from                                                                 
financing activities           803           363          (15)         (15)     
Net (decrease)/increase                                                         
in cash                                                                         
and cash equivalents       (3 824)       (4 559)       (1 610)      (1 625)     
SEGMENTAL INFORMATION                                                           
Six months to           Twelve      Twelve     
                                   31 August          months to   months to     
                               2005          2004      28.02.05    28.02.05     
                                         Restated      Restated     SA GAAP     
Unaudited     Unaudited     Unaudited     Audited     
                              R"000         R"000         R"000       R"000     
Segment sales                                                                   
Lubricants                   23 642        24 476        48 942      48 970     
Metal powders                12 929         8 128        18 453      18 453     
                             36 571        32 604        67 395      67 423     
Segment results                                                                 
Lubricants                    (442)           992         1 005       1 009     
Metal powders                    45       (1 120)         (181)       (253)     
                              (397)         (128)           824         756     
RECONCILIATION OF PREVIOUS SA GAAP TO IFRS                                      
                                Audited      Unaudited                 IFRS     
Year ended     Six months      Transition date     
                               28.02.05       31.08.04             01.03.04     
                                  R"000          R"000               R "000     
Balance Sheet                                                                   
Non-current assets                                                              
As previously reported - SA                                                     
GAAP                              6 967          6 402                5 838     
Goodwill no longer amortised         72             36                          
Change in functional                                                            
currency from                                                                   
UK Pounds to SA Rands                39              5                          
Non-current assets restated                                                     
- IFRS                            7 078          6 443                5 838     
Current assets                                                                  
As previously reported - SA                                                     
GAAP                             21 311         20 390               21 227     
Change in functional                                                            
currency from                                                                   
UK Pounds to SA Rands                15              1                          
Current assets restated -                                                       
IFRS                             21 326         20 391               21 227     
Retained earnings                                                               
As previously reported - SA                                                     
GAAP                             12 267         11 740               12 138     
Goodwill no longer amortised         72             36                          
Foreign currency translation                                                    
reserve                             608            608                          
Change in functional                                                            
currency from                                                                   
UK Pounds to SA Rands               (4)            (2)                          
Retained earnings restated -                                                    
IFRS                             12 943         12 382               12 138     
Reserves                                                                        
As previously reported - SA                                                     
GAAP                                559            600                  608     
Foreign Currency Translation                                                    
Restatement                          49              8                          
Transfer to retained earnings     (608)          (608)                          
Reserves restated - IFRS              -              -                  608     
Current liabilities                                                             
As previously reported - SA                                                     
GAAP                             13 134         12 259               12 325     
Change in functional                                                            
currency from                                                                   
UK Pounds to SA Rands                 9                                         
Current liabilites restated                                                     
- IFRS                           13 143         12 259               12 325     
Income statement                                                                
Net profit as previously                                                        
reported                            528          (398)                          
Goodwill no longer amortised         72             36                          
Change in functional                                                            
currency from                                                                   
UK Pounds to SA Rands               (4)            (2)                          
Net profit restated - IFRS          596          (364)                          
CONSOLIDATED BALANCE SHEET                                                      
Six months to         Twelve       Twelve     
                                   31 August         months to    months to     
                              2005          2004      28.02.05     28.02.05     
                                        Restated      Restated      SA GAAP     
Unaudited     Unaudited     Unaudited      Audited     
                             R"000         R"000         R"000        R"000     
Assets                                                                          
Non-current assets           7 375         6 443         7 078        6 967     
Property, plant and                                                             
equipment                    5 038         4 615         4 636        4 636     
Intangible assets               72            72            72                  
Deferred tax assets            808           879           732          724     
Amount due by holding                                                           
company                      1 457           877         1 638        1 607     
Current assets              18 202        20 391        21 326       21 311     
Total assets                25 577        26 834        28 404       28 278     
Equity and liabilities                                                          
Shareholders equity         13 043        12 902        13 463       13 346     
Ordinary shares and                                                             
premium                        520           520           520          520     
Foreign currency                                                                
revaluation reserve              -             -             -          559     
Retained earnings          12 523        12 382        12 943       12 267      
Non-current liabilities      2 687         1 673         1 798        1 798     
Borrowings                   2 629         1 550         1 448        1 448     
Deferred tax liabilities        58           123           350          350     
Current liabilities          9 847        12 259        13 143       13 134     
Interest bearing               129         1 312           506          506     
Non-interest bearing         9 718        10 947        12 637       12 628     
Total equity and                                                                
liabilities                 25 577        26 834        28 404       28 278     
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY                                     
Six months to           Twelve       Twelve     
                                  31 August          months to    months to     
                              2005          2004      28.02.05     28.02.05     
                                        Restated      Restated      SA GAAP     
Unaudited     Unaudited     Unaudited      Audited     
                             R"000         R"000         R"000        R"000     
Ordinary shares                285           285           285          285     
Share premium                  235           235           235          235     
Retained earnings           12 523        12 382        12 943       12 267     
Retained earnings at                                                            
beginning                                                                       
of year                     12 943        12 138        12 138       12 138     
Net profit for the period    (420)         (364)           596          528     
Foreign currency                                                                
translation reserve                          608           608                  
Ordinary dividend                                        (399)        (399)     
Reserves                         -             -             -          559     
Reserves at beginning of                                                        
year                                                                    608     
Foreign currency                                                                
translation                                                                     
differences                                                            (49)     
Total shareholders equity   13 043        12 902        13 463       13 346     
RECONCILIATION OF HEADLINE EARNINGS                                             
Six months to         Twelve       Twelve     
                                    31 August        months to    months to     
                              2005          2004      28.02.05     28.02.05     
                                        Restated      Restated      SA GAAP     
Unaudited     Unaudited     Unaudited      Audited     
                             R"000         R"000         R"000        R"000     
Net (loss)/profit                                                               
attributable to                                                                 
shareholders                 (420)         (364)           596          528     
Amortisation of goodwill                                                 72     
Profit on disposal of                                                           
property,                                                                       
plant and equipment                         (24)          (13)         (13)     
Headline earnings           (420)         (388)           583          587      
BASIS OF PREPARATION                                                            
The unaudited results of the Group for the half-year ended 31 August 2005 have  
been prepared in accordance with the transitional provisions set out in IFRS 1, 
`First-time Adoption of International Financial Reporting Standards", and       
other relevant standards and is based on the final application of IFRS expected 
to apply as at 28 February 2006. Comparative information has been restated to   
take into account the requirements of all the standards. Following is a         
description of the required adjustments between previous SA GAAP and IFRS for   
the Group.                                                                      
GOODWILL                                                                        
The Group has made an election in terms of IFRS 1 that IFRS 3 - Business        
Combinations, will only be applied from 1 March 2004. Accordingly goodwill as   
at 1 March 2004 is included at the amount previously reported under SA GAAP.    
From 1 March 2004 goodwill is stated at cost less accumulated impairment        
losses. Goodwill is no longer amortised but is tested annually for impairment.  
TRANSLATION ADJUSTMENTS                                                         
The revised IAS 21 - The Effects of Changes in Foreign Exchange Rates, has      
introduced functional currency as the determinant for reflecting translation    
adjustments through the income statement.                                       
Under the extended guidance given by the revised standard, the functional       
currency of the Group subsidiary Spanjaard UK Limited has changed from UK       
Pounds to South African Rands. The foreign currency translation reserve         
relating to Spanjaard UK Limited as at 1 March 2004 has been reversed to        
retained earnings.                                                              
COMMENTARY                                                                      
GENERAL REVIEW                                                                  
Special lubricant and allied chemical product operations                        
The special lubricant and allied chemical product operations for m the larger   
part of our total operation. Local and inter national sales are progressing     
well at half year-end.                                                          
Metal powder operations                                                         
The metal powder operations have seen a complete turnaround since the previous  
financial year and there is now a tight control on costs and productivity. The  
business unit is operating profitably.                                          
PROSPECTS                                                                       
Despite the fact that the loss for the first six months is slightly larger than 
the comparable position a year earlier, we believe that an optimistic view of   
the results for the full financial year is more than justified. It should also  
be noted that historically, the second half of the financial year produces      
better results than the first.                                                  
It is anticipated that the profit for the full financial year ending            
28 February 2006, will show an improvement over the previous financial year.    
DIVIDENDS                                                                       
In keeping with the company"s policy of declaring only one dividend, no dividend
has been declared at half year-end.                                             
By order of the Board                                                           
I Spanjaard - Company Secretary                                                 
18 November 2005                                                                
Directors: R J W Spanjaard (Executive Chair man), C J Kairuz,                   
           R G Nicholson (non-executive), D H Petersen,                         
R B Spanjaard (non-executive)                                        
Registered office: 748 - 750 Fifth Street, Wynberg, Sandton, 2090               
Transfer Secretaries: Computershare Investor Services 2004                      
                     (Pty) Ltd, 70 Marshall Street,                             
Johannesburg, 2001                                        
E-mail: info@spanjaardltd.com                                                   
website: www.spanjaardltd.com                                                   
Date: 17/11/2005 05:00:50 PM Supplied by www.sharenet.co.za                     
Produced by the JSE SENS Department                                             
                                                                                
                                                                                
                                                                                



                                        
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