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

Release Date: 28/10/2010 07:05:02      Code(s): SPA
SPA - Spanjaard Limited - Unaudited interim group results for the six months    
ended 31 August 2010 and declaration of dividend                                
Spanjaard Limited                                                               
(Incorporated in the Republic of South Africa)                                  
Registration number 1960/004393/06                                              
Share code: SPA   ISIN: ZAE000006938                                            
UNAUDITED INTERIM GROUP RESULTS FOR THE SIX MONTHS ENDED 31 AUGUST 2010 AND     
DECLARATION OF DIVIDEND                                                         
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME                                  
                               Six months to          Twelve months to          
                               31 August              28 February               
2010      2009         2010                      
                               R`000     R`000        R`000                     
Revenue                         48 478    40 834       92 106                   
Turnover                        47 179    40 290       90 222                   
Cost of sales                   (29 278)  (25 968)     (59 080)                 
Gross profit                    17 901    14 322       31 842                   
Operating expenses              (13 373)  (13 209)     (26 677)                 
Depreciation and amortisation   (795)     (827)        (1 730)                  
Profit from operations          3 733     286          3 435                    
Finance (cost)/income - net     (442)     (67)         (91)                     
Profit before tax               3 291     219          3 344                    
Income tax expense              (1 053)   (102)        (1 001)                  
Profit                          2 238     117          2 343                    
Other comprehensive income                                                      
Movement in foreign currency    1         (154)        (4)                      
translation reserve                                                             
Tax effect                    -         32           1                         
Total comprehensive income      2 239     (5)          2 340                    
for the year                                                                    
Earnings per ordinary share                                                     
-  basic and diluted (cents)    27,5      1,4          28,8                     
Dividend declared per                                                           
ordinary share (cents)                                                          
-  interim                      15,0      -            -                        
-  final                        -         -            -                        
CONSOLIDATED STATEMENT OF FINANCIAL POSITION                                    
                               Six months to          Twelve months to          
                               31 August              28 February               
2010      2009         2010                      
                               R`000     R`000        R`000                     
Assets                                                                          
Non-current assets              34 204    19 414       22 848                   
Property, plant and equipment   33 762    18 965       22 406                   
Goodwill                        437       437          437                      
Intangibles                     5         12           5                        
Current assets                  38 257    32 388       38 764                   
Total assets                    72 461    51 802       61 612                   
Equity and liabilities                                                          
Equity attributable to the      36 007    31 836       34 182                   
owners of the company                                                           
Ordinary shares and premium     6 871     6 871        6 871                    
Reserves                        29 136    24 965       27 311                   
Non-current liabilities         13 808    5 730        6 236                    
Borrowings                      10 362    2 464        2 865                    
Deferred tax liabilities        3 446     3 266        3 371                    
Current liabilities             22 646    14 236       21 194                   
Interest bearing                4 728     346          867                      
Non-interest bearing            17 918    13 890       20 327                   
Total equity and liabilities    72 461    51 802       61 612                   
Number of ordinary shares in    8 143     8 143        8 143                    
issue (`000)                                                                    
Net asset value per share       442,2     390,9        419,8                    
(cents)                                                                         
CONSOLIDATED STATEMENT OF CASH FLOW                                             
                               Six months to          Twelve months to          
                               31 August              28 February               
2010      2009         2010                      
                               R`000     R`000        R`000                     
Cash flows from operating       (3 871)   (3 902)      1 459                    
activities                                                                      
Cash flows from investing       (11 781)  (1 268)      (8 428)                  
activities                                                                      
Cash flows from financing       10 431    (1 002)      1 260                    
activities                                                                      
Net (decrease) in cash and      (5 221)   (6 172)      (5 709)                  
cash equivalents                                                                
Cash and cash equivalents at    5 861     11 570       11 570                   
beginning of year                                                               
Cash and cash equivalents at    640       5 398        5 861                    
end of year                                                                     
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY                                     
                               Six months to          Twelve months to          
31 August              28 February               
                               2010      2009         2010                      
                               R`000     R`000        R`000                     
Ordinary shares                 407       407          407                      
Share premium                   6 464     6 464        6 464                    
Reserves                        29 136    24 965       27 311                   
Total shareholders` equity      36 007    31 836       34 182                   
SUPPLEMENTARY INFORMATION                                                       
Six months to          Twelve months to          
                               31 August              28 February               
                               2010      2009         2010                      
                               R`000     R`000        R`000                     
Capital expenditure             11 873    1 268        5 634                    
OPERATING SEGMENTS                                                              
                               Six months to          Twelve months to          
                               31 August              28 February               
2010      2009         2010                      
                               R`000     R`000        R`000                     
Segment revenue                                                                 
Special lubricants and allied   41 693    32 234       72 138                   
chemicals                                                                       
External customers              3 961     4 817        10 548                   
Local customers                 37 732    27 417       61 590                   
Metal powders                   6 225     8 951        19 604                   
External customers              2 961     3 626        8 703                    
Local customers                 3 264     5 325        10 901                   
Other                           2 345     4 322        7 409                    
External customers              2 345     4 322        7 409                    
Reconciling items               (3 084)   (5 217)      (8 229)                  
External customers              (1 189)   (729)        (2 315)                  
Local customers                 (1 895)   (4 488)      (5 914)                  
                               47 179    40 290       90 922                    
Segment result                                                                  
Special lubricants and allied   3 955     211          2 708                    
chemicals                                                                       
Metal powders                   25        25           749                      
Other                           (248)     51           20                       
Reconciling items               1         (1)          (42)                     
                               3 733     286          3 435                     
Segment assets                                                                  
Special lubricants and allied   52 787    42 289       41 635                   
chemicals                                                                       
Metal powders                   16 361    11 927       15 378                   
Other                           25 268    15 019       11 315                   
Reconciling items               (21 955)  (17 433)     (6 716)                  
                               72 461    51 802       61 612                    
Segment liabilities                                                             
Special lubricants and allied   28 375    21 292       19 858                   
chemicals                                                                       
Metal powders                   10 580    6 659        9 565                    
Other                           18 749    7 781        4 629                    
Reconciling items               (21 250)  (15 766)     (6 402)                  
36 454    19 966       27 650                    
RECONCILIATION OF HEADLINE EARNINGS                                             
                               Six months to          Twelve months to          
                               31 August              28 February               
2010      2009         2010                      
                               R`000     R`000        R`000                     
Profit attributable to          2 238     117          2 343                    
shareholders                                                                    
(Profit) on disposal of         -         -            (74)                     
property, plant and equipment                                                   
Income tax effect on disposal   -         -            21                       
Headline earnings               2 238     117          2 290                    
Weighted average number of      8 143     8 143        8 143                    
ordinary shares in issue                                                        
(`000)                                                                          
Headline earnings per                                                           
ordinary share                                                                  
-  basic and diluted (cents)     27,5     1,4          28,1                     
BASIS OF PREPARATION                                                            
The condensed consolidated interim results have been prepared in accordance with
IAS 34 Interim Financial Reporting and in the manner required by 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.                 
Accounting policies and computations are consistently applied as in the 2010    
financial statements.                                                           
COMMENTARY                                                                      
POINTS OF INTEREST TO THE CORRESPONDING PERIOD LAST YEAR                        
- Net asset value has increased from 390,9 cents to 442,2 cents per share       
- Group turnover is up by 17%                                                   
- Headline earnings is up by 1 813%                                             
EXECUTIVE CHAIRMAN`S STATEMENT                                                  
We are pleased to announce a strong performance for the six months ended 31     
August 2010.                                                                    
The recovery in both the local and international markets resulted in turnover   
increasing by almost 17% in comparison to the corresponding period last year.   
Renewed focus and structure in the industrial division is beginning to reap     
rewards. The Consumer/Automotive division continues to grow from strength-to-   
strength.                                                                       
The international division showed some improvement in Asian markets whilst the  
rest of the world`s performance was consistent with the corresponding period    
last year. The division continues to source new opportunities for expanding our 
international footprint. The current strength of the Rand poses quite a         
challenge at the moment.                                                        
We invested R9 million in the acquisition of an adjoining property at our       
Wynberg manufacturing facility and a further R2,9 million in a newly            
commissioned manufacturing facility. This together with improved production     
planning has resulted in a significant increase in our manufacturing capacity.  
We are currently working on several exciting new projects and are hopeful that  
they will have a beneficial effect on our results for the second half of the    
financial year.                                                                 
There have been no material related party transactions during the period under  
review.                                                                         
SEGMENTAL ANALYSIS                                                              
The special lubricants and allied chemicals made a good recovery. Both local and
international markets showed improvements. The continued strengthening of the   
Rand continues to have a negative effect on our international sales.            
It has been a hard first six months for the metal powder segment. We expect     
sales to increase in line with the recovery of the worldwide friction industry. 
DIVIDEND                                                                        
Notice is hereby given that the Board of Directors has declared dividend No. 18 
of 15 cents per ordinary share. The last day to trade cum dividend is Friday, 12
November 2010, payable to all shareholders of Spanjaard Limited recorded in the 
books of the company at the close of business on Friday, 19 November 2010.      
Shares will commence trading ex dividend from Monday, 15 November 2010. The     
dividend is payable on Monday, 22 November 2010. Share certificates may not be  
dematerialised or rematerialised between Monday, 15 November and Friday, 19     
November 2010, both days inclusive.                                             
By order of the Board                                                           
ML Bond                                                                         
Company Secretary                                                               
28 October 2010                                                                 
Directors:                                                                      
RJW Spanjaard (Executive Chairman),                                             
E Nepgen (Managing Director),                                                   
GF Cort,                                                                        
BL Montgomery*,                                                                 
CKT Palmer,                                                                     
Dr DP van der Nest*,                                                            
HJ van Heerden (Financial Director).                                            
*Non-executive                                                                  
Registered office:                                                              
748-750 Fifth Street, Wynberg, Sandton, 2090                                    
Transfer Secretaries:                                                           
Computershare Investor Services (Pty) Limited                                   
70 Marshall Street, Johannesburg, 2001                                          
Sponsors:                                                                       
Arcay Moela Sponsors (Pty) Limited                                              
Arcay House, Number 3 Anerley Road,                                             
Parktown, 2193                                                                  
E-mail: info@spanjaardltd.com                                                   
Website: www.spanjaardltd.com                                                   
Date: 28/10/2010 07:05:01 Supplied by www.sharenet.co.za                     
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