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Spa - Spanjaard Limited - Condensed Group Audited Results For The Year Ended

Release Date: 09/05/2011 07:15:01      Code(s): SPA
SPA - Spanjaard Limited - Condensed group audited results for the year ended    
28 February 2011 and declaration of dividends                                   
Spanjaard Limited                                                               
(Incorporated in the Republic of South Africa)                                  
Registration number 1960/004393/06                                              
Share code: SPA                                                                 
ISIN: ZAE000006938                                                              
CONDENSED GROUP AUDITED RESULTS FOR THE YEAR ENDED 28 FEBRUARY 2011 AND         
DECLARATION OF DIVIDENDS                                                        
Revenue exceeds R100 million - a new milestone                                  
Headline earnings up 109% on 12% increase in turnover                           
NAV increased to 474 cents per share                                            
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME                                  
                                             Audited       Audited              
                                             Year ended    Year ended           
28 February   28 February          
                                             2011          2010                 
                                             R`000         R`000                
Revenue                                       102 421       92 106              
Turnover                                      102 068       90 922              
Cost of sales                                 (61 585)      (59 080)            
Gross profit                                  40 483        31 842              
Operating expenses                            (29 528)      (26 677)            
Depreciation and amortisation                 (1 859)       (1 730)             
Profit from operations                        9 096         3 435               
Finance (cost)/income - net                   (1 483)       (91)                
Profit before tax                             7 613         3 344               
Income tax expense                            (2 785)       (1 001)             
Profit                                        4 828         2 343               
Other comprehensive income                                                      
Movement in foreign currency translation      (348)         (4)                 
reserve                                                                         
Gain on revaluation on freehold land and      2 851         -                   
buildings                                                                       
Tax effect                                    (356)         1                   
Total comprehensive income for the year       6 975         2 340               
Earnings per ordinary share                                                     
- basic and diluted (cents)                   59,3          28,8                
Dividend declared per ordinary share (cents)                                    
- interim                                     15,0          -                   
- final                                       16,0          -                   
CONSOLIDATED STATEMENT OF FINANCIAL POSITION                                    
                                             Audited       Audited              
Year ended    Year ended           
                                             28 February   28 February          
                                             2011          2010                 
                                             R`000         R`000                
Assets                                                                          
Non-current assets                            37 317        22 848              
Property, plant and equipment                 36 872        22 406              
Goodwill                                      437           437                 
Intangibles                                   8             5                   
Current assets                                34 638        38 764              
Total assets                                  71 955        61 612              
Equity and liabilities                                                          
Equity attributable to the owners of the      38 633        34 182              
company                                                                         
Ordinary shares and premium                   6 871         6 871               
Foreign currency translation reserve          (207)         98                  
Retained earnings                             21 619        18 617              
Revaluation reserve                           10 350        8 596               
Non-current liabilities                       12 304        6 236               
Borrowings                                    8 792         2 865               
Deferred tax liabilities                      3 512         3 371               
Current liabilities                           21 018        21 194              
Interest bearing                              3 925         867                 
Non-interest bearing                          17 093        20 327              
Total equity and liabilities                  71 955        61 612              
Number of ordinary shares in issue (`000)     8 143         8 143               
Net asset value per share (cents)             474,4         419,8               
CONSOLIDATED STATEMENT OF CASH FLOW                                             
Audited       Audited              
                                             Year ended    Year ended           
                                             28 February   28 February          
                                             2011          2010                 
R`000         R`000                
Cash flows from operating activities          3 748         1 459               
Cash flows from investing activities          (16 462)      (8 428)             
Cash flows from financing activities          9 226         1 260               
Net (decrease)/increase in cash and cash      (3 488)       (5 709)             
equivalents                                                                     
Cash and cash equivalents at beginning of     5 861         11 570              
year                                                                            
Cash and cash equivalents at end of year      2 373         5 861               
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY                                     
                                             Audited       Audited              
                                             Year ended    Year ended           
28 February   28 February          
                                             2011          2010                 
                                             R`000         R`000                
Ordinary shares                               407           407                 
Share premium                                 6 464         6 464               
Foreign currency translation reserve          (207)         98                  
Total comprehensive income                    6 975         2 340               
Movement in reserves                          (2 147)       3                   
Revaluation reserve                           10 350        8 596               
Realisation of revaluation reserve            698           713                 
Ordinary dividend                             (2 524)       -                   
Retained earnings at the beginning of the     18 617        15 561              
year                                                                            
Total shareholders` equity                    38 633        34 182              
SUPPLEMENTARY INFORMATION                                                       
                                             Audited       Audited              
Year ended    Year ended           
                                             28 February   28 February          
                                             2011          2010                 
                                             R`000         R`000                
Capital expenditure                           13 525        5 634               
OPERATING SEGMENTS                                                              
                                             Audited       Audited              
                                             Year ended    Year ended           
28 February   28 February          
                                             2011          2010                 
                                             R`000         R`000                
Segment revenue                                                                 
Special lubricants and allied chemicals       91 217        72 138              
External customers                            8 394         10 548              
Local customers                               82 823        61 590              
Metal powders                                 14 034        19 604              
External customers                            6 824         8 703               
Local customers                               7 210         10 901              
Other                                         7 320         7 409               
External customers                            7 320         7 409               
Reconciling items                             (10 503)      (8 229)             
External customers                            (2 450)       (2 315)             
Local customers                               (8 053)       (5 914)             
                                             102 068       90 922               
Segment result                                                                  
Special lubricants and allied chemicals       5 650         2 708               
Metal powders                                 436           749                 
Other                                         (914)         20                  
Reconciling items                             3 924         (42)                
                                             9 096         3 435                
Segment assets                                                                  
Special lubricants and allied chemicals       47 624        41 635              
Metal powders                                 9 106         15 378              
Other                                         21 195        11 315              
Reconciling items                             (5 970)       (6 496)             
                                             71 955        61 832               
Segment liabilities                                                             
Special lubricants and allied chemicals       21 456        19 858              
Metal powders                                 2 967         9 565               
Other                                         15 832        4 629               
Reconciling items                             (6 933)       (6 402)             
                                             33 322        27 650               
RECONCILIATION OF HEADLINE EARNINGS                                             
                                             Audited       Audited              
Year ended    Year ended           
                                             28 February   28 February          
                                             2011          2010                 
                                             R`000         R`000                
Profit attributable to shareholders           4 828         2 343               
(Profit) on disposal of property, plant and   (54)          (74)                
equipment                                                                       
Income tax effect on disposal                 15            21                  
Headline earnings                             4 789         2 290               
Weighted average number of ordinary shares    8 143         8 143               
in issue (`000)                                                                 
Headline earnings per ordinary share                                            
- basic and diluted (cents)                   58,8          28,1                
BASIS OF PREPARATION                                                            
The audited condensed consolidated results have been prepared in accordance     
with the Framework concepts and the measurement and recognition requirements    
of the International Financial Reporting Standards and containing information   
required by IAS 34 Interim Financial Reporting and in the manner required by    
the Companies Act.                                                              
The condensed financial statements should be read in conjunction with the       
2011 financial statements.                                                      
COMMENTARY                                                                      
POINTS OF INTEREST                                                              
- Group turnover R102 million - up by 12%                                       
- Net profit more than doubled to R4,8 million                                  
- NAV increased to 474 cents per share                                          
GENERAL REVIEW                                                                  
Tight control of cost of sales on an increase in turnover of R12 million has    
led to these outstanding results. Investment in property, plant and equipment   
for the year was R13,5 million. There was an increase of 140% in capital        
expenditure. This was necessary to commission the new production and            
warehousing facilities as well as upgrading our current manufacturing plant     
to increase normal capacity. Production capacity has been increased             
exponentially, the fruits of which will become evident during the current       
financial year.                                                                 
SEGMENTAL ANALYSIS                                                              
The Special Lubricants and Allied Chemicals segment showed strong performance   
increasing turnover by 26% and profit by 109%. Increased sales into Africa -    
a new breakthrough.                                                             
The metal powder segment had a difficult year. Turnover decreased by 28%.       
Profit is down 42% due to on-going legal proceedings. The Court has ruled in    
our favour in respect of the civil proceedings. Criminal action is being        
pursued by the authorities.                                                     
The other segments remained consistent to the corresponding period last year.   
The properties in Wynberg and Alrode were valued at R15,3 million and R4,1      
million respectively, an increase of R2,9 million.                              
DIVIDENDS                                                                       
Interim dividend (No. 18) of 15 cents per ordinary share was declared on 28     
October 2010. The total actual dividends paid during the financial year         
amounted to R1 221 428. Dividend tax resulting from the interim declaration     
amounted to R122 143.                                                           
Final dividend (No. 19) of 16 cents per ordinary share was declared on 25       
February 2011, payable to all shareholders of Spanjaard Limited recorded in     
the books of the company at the close of business on Friday, 27 May 2011. The   
last day to trade cum dividend is Friday, 20 May 2011. Shares will commence     
trading ex dividend on Monday, 23 May 2011. The dividend is payable on          
Monday, 30 May 2011. Share certificates may not be dematerialised or            
rematerialised between Monday, 23 May 2011 and Friday, 27 May 2011, both days   
inclusive. This dividend amounts to R1 302 856 and the dividend tax resulting   
from the final declaration amounts to R130 286.                                 
AUDIT OPINION                                                                   
Mazars have audited the annual financial statements (and Group financial        
statements) for the year ended 28 February 2011 and their unqualified audit     
report, together with their audit report on these financial statements, is      
available for inspection at the Company`s registered office.                    
ML Bond                                                                         
Company Secretary                                                               
9 May 2011                                                                      
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)                                             
SA Pretorius                                                                    
*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 5 Anerley Road, Parktown, 2193                              
E-mail: info@spanjaard.biz                                                      
Website: www.spanjaard.biz                                                      
Date: 09/05/2011 07:15:01 Supplied by www.sharenet.co.za                     
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