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Spa - Spanjaard - Abridged Unaudited Group Results For The Period Ended 31

Release Date: 29/09/2008 17:40:55      Code(s): SPA
SPA - Spanjaard - Abridged Unaudited Group Results For The Period Ended 31      
                   August 2008 and dividend declaration                         
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 PERIOD ENDED 31 AUGUST 2008            
CONSOLIDATED INCOME STATEMENT                                                   
                                              Six months to  Twelve months to   
                                                   31 August      29 February   
2008       2007          2008   
                                               R`000      R`000         R`000   
Revenue                                        46 782     41 089        84 457  
Cost of sales                                  31 027     28 453        56 419  
Gross profit                                   15 755     12 636        28 038  
Operating expenses                             11 565     10 689        21 373  
Depreciation and amortisation                     836        567         1 536  
Profit from operations                          3 354      1 380         5 129  
Finance (cost)/income - net                       227        483         (125)  
Profit before tax                               3 581      1 863         5 004  
Income tax expense                              1 230        538         1 656  
Net profit                                      2 351      1 325         3 348  
Number of ordinary shares in issue (`000)       8 143      6 514         8 143  
Earnings per ordinary share                                                     
- basic and diluted (cents)                      28,9       20,3          45,2  
Dividend declared per ordinary                                                  
share (cents)                                                                   
- interim                                        15,0          -             -  
- final                                             -          -         15,0*  
* 5,0 cents of this 15,0 cents relates to the                                   
final dividend declaration of the 2007                                          
financial year but was paid during the                                          
2008 financial year                                                             
Net asset value per share (cents)               421,6      498,9        408,9   
CONSOLIDATED BALANCE SHEET                                                      
                                              Six months to   Twelve months to  
                                                  31 August       29 February   
                                               2008         2007          2008  
R`000        R`000         R`000  
Assets                                                                          
Non-current assets                             20 227      20 524        18 052 
Property, plant and equipment                  19 279      19 913        18 052 
Goodwill                                          437           -             - 
Deferred tax assets                               511         611             - 
Current assets                                 43 013      32 040        34 614 
Total assets                                   63 240      52 564        52 666 
Equity and liabilities                                                          
Shareholders` equity                           34 328      32 495        33 293 
Ordinary shares and premium                     6 871       6 679         6 871 
Reserves                                       27 457      25 816        26 422 
Retained earnings                              17 431      15 092        16 300 
Foreign currency translation reserve                4         202           100 
Revaluation reserve                            10 022      10 522        10 022 
Non-current liabilities                         5 019       5 762         4 649 
Borrowings                                        788         977         1 026 
Deferred tax liabilities                        4 231       4 785         3 623 
Current liabilities                            23 893      14 307        14 724 
Interest bearing                                1 688         457           202 
Non-interest bearing                           22 205      13 850        14 522 
Total equity and liabilities                   63 240      52 564        52 666 
CONSOLIDATED CASH FLOW STATEMENT                                                
                                              Six months to  Twelve months to   
31 August       29 February   
                                              2008        2007           2008   
                                             R`000       R`000          R`000   
Cash flows from operating activities          (160)      (3 446)          7 037 
Cash flows from investing activities        (2 021)        (914)        (1 289) 
Cash flows from financing activities          1 095       5 186          4 963  
Net increase/(decrease) in cash                                                 
and cash equivalents                        (1 086)         826         10 711  
Cash and cash equivalents at                                                    
beginning of year                            12 411       1 700          1 700  
Cash and cash equivalents at end of period   11 325       2 526         12 411  
SEGMENTAL INFORMATION                                                           
Six months to  Twelve months to  
                                                   31 August       29 February  
                                                2008       2007           2008  
                                               R`000      R`000          R`000  
Segment sales                                                                   
Lubricants                                     33 227     28 809         60 009 
Metal powders                                  12 309     10 476         22 640 
Other                                           1 246      1 804          1 808 
46 782     41 089         84 457  
Segment result                                                                  
Lubricants                                        671        826          2 442 
Metal powders                                   1 457         45          2 636 
Other                                           1 226        509             51 
                                               3 354      1 380         51 291  
SUPPLEMENTARY INFORMATION                                                       
                                              Six months to   Twelve months to  
31 August        29 February  
                                                2008      2007            2008  
                                               R`000     R`000           R`000  
Capital expenditure                             2 065         -           1 396 
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY                                     
                                               Six months to  Twelve months to  
                                                   31 August       29 February  
                                               2008       2007            2008  
R`000      R`000           R`000  
Ordinary shares                                  407        407             407 
Share premium                                  6 464     6 2 72           6 464 
Reserves                                      27 457     25 816          26 423 
Retained earnings at the beginning of year    16 301     14 052          14 052 
Foreign currency translation reserve               4        202             100 
Net profit for the year                        2 351      1 325           3 348 
Revaluation reserve                           10 022     10 522          10 022 
Ordinary dividend                            (1 221)      (285)         (1 099) 
Total shareholders` equity                    34 328     32 495          33 294 
RECONCILIATION OF HEADLINE EARNINGS                                             
                                               Six months to  Twelve months to  
31 August       29 February  
                                                 2008      2007           2008  
                                                R`000     R`000          R`000  
Net profit attributable to shareholders          2 351     1 325          3 348 
Profit/(loss) on disposal of property,                                          
plant and equipment                                  -         -           (50) 
Headline earnings                                2 351     1 325          3 298 
Weighted average number of                                                      
ordinary shares in issue (`000)                  8 143     6 514          7 410 
Headline earnings per ordinary share                                            
- basic and diluted (cents)                       28,9      20,3           44,5 
COMMENTARY                                                                      
Highlights                                                                      
-    Group revenue up by 14% from R41,1 million to R46,8 million for the six    
month period.                                                                   
-    Gross profit margins up from 31% to 34% of turnover.                       
-    Net profit margins up from 3% to 5% of turnover.                           
-    Headline earnings have increased by 77% (headline earnings per share       
increased from 20,3 to 28,9 cents per share (42,4%) based on an increase in the 
weighted number of shares in issue from 6,514 million to 8,143 million shares)  
Chairman`s statement                                                            
The results how the continued efforts by the company to remain focused on       
improved operating efficiency, product profitability and improved working       
capital management, borne out by the fact that Group turnover is up 14% whilst  
headline earnings are up 77% over the same period.                              
Our management team remain positive in their outlook despite the current        
unstable economic environment.                                                  
The company is optimistic regarding organic growth from the signing of new      
contracts and the continued acquisition possibilities.                          
Basis of preparation                                                            
The condensed consolidated interim financial statements have been prepared in   
accordance with IAS 34 Interim Financial Reporting and in compliance with the   
South African Companies Act, 1973. The condensed consolidated interim financial 
statements are prepared on the historical cost basis, with the exception of     
certain financial instruments which are measured at fair value. The results of  
the interim period are not necessarily indicative of the results for the entire 
year, and these unaudited financial statements should be read in conjunction    
with the audited financial statements for the year ended 29 February 2008.      
The preparation of condensed consolidated interim financial statements requires 
the use of estimates and assumptions that affect the reported amounts of assets 
and liabilities and disclosure of contingent assets and liabilities at the date 
of the condensed consolidated interim financial statements and the reported     
amounts of revenue and expenses during the reporting periods. Although these    
estimates are based on management`s best knowledge of current events and        
actions that the Group may undertake in the future, actual results may differ   
from those estimates.                                                           
Acquisition of Spanjaard EU BV                                                  
On 1 March 2008 Spanjaard EU BV ("BV"), a company incorporated in The           
Netherlands, was acquired as a wholly owned subsidiary of Spanjaard Limited.    
The purchase price resulted in goodwill to the value of R437 000 being          
recognised.                                                                     
Management is of the opinion that the carrying amounts approximated             
the fair value of the assets and liabilities of BV purchased at acquisition.    
There were no contingent liabilities at that date.                              
The profit from operations recognised in this subsidiary during the period,     
amounting to R382 378, has been included under lubricants in the segmental      
analysis.                                                                       
Segmental analysis                                                              
Consolidated revenue is up by 14% to R46,8 million for the six month period.    
The metal powders division has performed substantially better than the          
comparable period last year. This is mainly due to an increase in profitable    
trading activities and a focus on contracts with higher gross margin value.     
Results of division "other" are attributed to performance of various other      
trading activities. The decrease in EBIT from the lubricants sector is mainly   
due to an increase in provisions.                                               
Dividend                                                                        
Notice is hereby given that the Board of Directors has declared dividend No. 16 
(first ever interim dividend) of 15 cents per ordinary share. The last day to   
trade cum dividend is Friday, 17 October 2008, payable to all shareholders of   
Spanjaard Limited recorded in the books of the company at the close of business 
on Friday, 24 October 2008. Shares will commence trading ex dividend from       
Monday, 20 October 2008. The dividend is payable on Friday, 27 October 2008.    
Share certificates may not be dematerialised or rematerialised between Monday,  
20 October 2008 and Friday, 24 October 2008, both days inclusive.               
By order of the Board                                                           
ML Bond - Company Secretary                                                     
29 September 2008                                                               
Directors: RJW Spanjaard (Executive Chairman), ARJ Spanjaard (Managing          
Director), MA Barnes*, GF Cort, CA Gordon-Bennett, BL Montgomery*,              
Dr DP van der Nest*     *Non-executive                                          
Registered Office: 748 - 750 Fifth Street, Wynberg, Sandton, 2090               
Sponsor                                                                         
Arcay Moela Sponsors (Proprietary) Limited                                      
(Registration number 2006/033725/07)                                            
Transfer Secretaries: Computershare Investor Services (Pty) Limited,            
70 Marshall Street, Johannesburg, 2001                                          
E-mail: info@spanjaardltd.com                                                   
Website: www.spanjaardltd.com                                                   
Date: 29/09/2008 17:40:54 Supplied by www.sharenet.co.za                     
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