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Spa - Spanjaard Limited - Abridged Unaudited Group Results For The Six Months

Release Date: 16/10/2007 17:00:01      Code(s): SPA
SPA - Spanjaard Limited - Abridged Unaudited Group Results For The Six Months   
                   Ended 31 August 2007                                         
Spanjaard Limited                                                               
(Incorporated in the Republic of South Africa)                                  
Registration number 1960/004393/06                                              
Share code: SPA                                                                 
ISIN: ZAE000006938                                                              
ABRIDGED UNAUDITED GROUP RESULTS FOR THE SIX MONTHS ENDED 31 AUGUST 2007        
ABRIDGED CONSOLIDATED INCOME STATEMENT                                          
                                    Six months to       Twelve                  
                                                        months to               
31 August           28 February             
                                    2007      2006      2007                    
                                    R`000     R`000     R`000                   
Revenue                              41 089    42 058    78 874                 
Cost of sales                        28 453    31 402    55 060                 
Gross profit                         12 636    10 656    23 814                 
Operating expenses                   10 689    8 852     21 106                 
Depreciation and amortisation        567       582       867                    
Finance income/(cost) - net          483       (250)     (275)                  
Profit before tax                    1 863     972       1 566                  
Income tax expense                   538       358       558                    
Net profit                           1 325     614       1 008                  
Weighted average number of ordinary  6 514     5 700     5 700                  
shares (`000)                                                                   
Earnings per ordinary share- basic   20,3      10,8      17,7                   
and diluted (cents)                                                             
Dividend declared per ordinary       5,0       2,0       -                      
share (cents)                                                                   
(Relate to prior year: refer note 1.3)                                          
ABRIDGED CONSOLIDATED BALANCE SHEET                                             
31 August  31 August 28 February             
                                   2007       2006      2007                    
                                   R`000      R`000     R`000                   
Assets                                                                          
Non-current assets                  20 524     5 354     20 195                 
 Property, plant and equipment     19 913     4 688     19 567                  
 Goodwill                          -          72        -                       
 Deferred tax assets               611        594       628                     
Current assets                      32 040     28 462    23 250                 
 Inventories                       8 448      5 520     6 711                   
 Loans receivable                  2 930      3 945     2 403                   
 Trade and other receivable        18 136     18 997    12 245                  
Cash and cash equivalents         2 526      -         1 700                   
 Current income tax prepayments    -          -         191                     
Total assets                        52 564     33 816    43 445                 
Equity and liabilities                                                          
Shareholders` equity                32 495     14 178    25 284                 
Ordinary shares and premium         6 679      520       520                    
Reserves                            25 816     13 658    24 764                 
Retained earnings                   15 092     13 658    14 052                 
Foreign currency translation      202        -         190                     
reserve                                                                         
 Revaluation reserve               10 522     -         10 522                  
Non-current liabilities             5 762      1 910     5 683                  
Borrowings                        977        1 550     954                     
 Deferred tax liabilities          4 785      360       4 729                   
Current liabilities                 14 307     17 728    12 478                 
 Interest bearing                  457        1 002     938                     
Non-interest bearing              13 312     15 155    11 540                  
 Taxation                          538        -         -                       
 Bank overdraft                    -          1 571     -                       
Total equity and liabilities        52 564     33 816    43 445                 
ABRIDGED CONSOLIDATED CASH FLOW STATEMENT                                       
                                  Six months          Twelve                    
                                  to                  months to                 
                                  31 August           28 February               
2007      2006      2007                      
                                  R`000     R`000     R`000                     
Cash flows from operating          (3 446)   (815)     1 050                    
activities                                                                      
Cash flows from investing          (914)     (427)     (773)                    
activities                                                                      
Cash flows from financing          5 186     351       2 103                    
activities                                                                      
Net increase/(decrease) in cash    826       (891)     2 380                    
and cash equivalents                                                            
Cash and cash equivalents at       1 700     (680)     (680)                    
beginning of six months/year                                                    
Cash and cash equivalents at end   2 526     (1 571)   1 700                    
of six months/year                                                              
SEGMENTAL INFORMATION                                                           
                                  Six months          Twelve                    
to                  months to                 
                                  31 August           28 February               
                                  2007      2006      2007                      
                                  R`000     R`000     R`000                     
Segment revenue                                                                 
 Lubricants                       28 809    27 333    55 979                    
 Metal powders                    10 476    14 171    21 696                    
 Other                            1 804     554       1 199                     
41 089    42 058    78 874                    
EBIT                                                                            
 Lubricants                       826       353       1 698                     
 Metal powders                    45        682       (225)                     
Other                            509       187       368                       
                                  1 380     1 222     1 841                     
ABRIDGED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY                            
                                  Six months ended    Year ended                
31 August           28 February               
                                  2007      2006      2007                      
                                  R`000     R`000     R`000                     
Ordinary shares                    407       285       285                      
Share premium                      6 272     235       235                      
Reserves                           25 816    13 658    24 764                   
 Retained earnings at the                                                       
 beginning                                                                      
of year                          14 052    13 158    13 158                    
 Foreign currency translation     202       -         190                       
 reserve                                                                        
 Net profit for the six           1 325     614       1 008                     
months/year                                                                    
 Revaluation reserve              10 522    -         10 522                    
 Ordinary dividend                (285)     (114)     (114)                     
Total shareholders` equity         32 495    14 178    25 284                   
RECONCILIATION OF HEADLINE EARNINGS                                             
                                  Six months ended    Year ended                
                                  31 August           28 February               
                                  2007      2006      2007                      
R`000     R`000     R`000                     
Net profit attributable to         1 325     614       1 008                    
shareholders                                                                    
Profit on disposal of property,    -         (38)      (38)                     
plant and equipment                                                             
Impairment loss                    -         -         72                       
Headline earnings                  1 325     576       1 042                    
Weighted average number of         6 514     5 700     5 700                    
ordinary shares (`000)                                                          
Headline earnings per ordinary     20,3      10,1      18,3                     
share - basic and diluted (cents)                                               
COMMENTARY                                                                      
1.1 Statement of compliance                                                     
The abridged consolidated unaudited group results have been prepared in         
accordance with the recognition and measurement requirements of International   
Financial Reporting Standards (IFRS) and presentation and disclosure            
requirements of IAS 34 - Interim Financial Reporting and the South African      
Companies Act.                                                                  
1.2 Basis of preparation                                                        
The abridged consolidated unaudited group results have been prepared under the  
historical cost convention as modified by the revaluation of buildings, plant   
and machinery. The group adopted the revaluation model in terms of IAS 16 -     
Property, Plant and Equipment, during the financial year ended 28 February 2007.
Plant and machinery are disclosed at fair value, based on periodic valuations by
external independent valuers, less subsequent depreciation. Effective date of   
the valuations was 28 February 2007.                                            
1.3 Dividend                                                                    
The five cent dividend is based on the earnings achieved for the financial year 
ended 28 February 2007. This dividend was declared and paid in June 2007.       
The two cent dividend is based on the earnings achieved for the financial year  
ended 28 February 2006, which dividend was declared and paid in July 2006.      
1.4 Overview                                                                    
These satisfying results bear testimony to the new focus with which Spanjaard   
Limited is operating their business. On 1 May Purple Capital Limited acquired a 
strategic stake of approximately 30% in Spanjaard Limited. Purple Capital       
Limited has brought further impetus to our growth strategy and a number of      
exciting acquisition opportunities which are being considered for the future.   
The management has renewed focus on cost efficiency, product profitability and  
managing of working capital.                                                    
Our Research and Development work has enabled the launching of several          
innovative aerosol products aimed at new market segments. A number of these     
products will be available to the general consumer market within the next six   
months.                                                                         
1.5 Segmental analysis                                                          
Although revenue of R41,089 million is at a comparable level for the six months 
ended 31 August 2007, the group has traded more efficiently and has more than   
doubled its net profit as a result.                                             
The largest contribution came from the lubricants division, achieved by strong  
performance from the local sales division, greater productivity from daily      
operations and improved management of financial instruments.                    
The metal powder division results were disappointing and management is          
considering the future role of this division.                                   
Results of the division "other" were mainly attributable to international       
commodities trading.                                                            
1.6 Cash flows                                                                  
There was a significant increase in cash utilised which relates directly to     
timing issues concerning export debtors with a large contract being the main    
reason for the increase in working capital. This should unwind within the next  
four months. Despite this situation the group has moved from an overdraft to a  
cash position of R2,5 million.                                                  
By order of the Board                                                           
RJW Spanjaard - Executive Chairman                                              
GS le Roux - Chief Operating Officer                                            
16 October 2007                                                                 
Directors:                                                                      
RJW Spanjaard (Executive Chairman), GS le Roux (Chief Operating Officer), MA    
Barnes*, GF Cort, CA Gordon-Bennett, BL Montgomery*, ARJ Spanjaard, Dr DP van   
der Nest*                                                                       
*Non-executive                                                                  
Registered Office:                                                              
748 - 750 Fifth Street, Wynberg, Sandton, 2090                                  
Transfer Secretaries:                                                           
Computershare Investor Services 2004 (Pty) Limited,                             
70 Marshall Street, Johannesburg, 2001                                          
E-mail: info@spanjaardltd.com                                                   
Website: www.spanjaardltd.com                                                   
Date: 16/10/2007 17:00:01 Supplied by www.sharenet.co.za                     
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