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

Release Date: 27/10/2011 07:15:02      Code(s): SPA
SPA - Spanjaard Limited - Unaudited interim group results for the six           
months ended 31 August 2011 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 2011         
AND DECLARATION OF DIVIDEND                                                     
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME                                  
                                 Six months   Six months   Twelve months        
to           to           to                   
                                 31 August    31 August    28 February          
                                 2011         2010         2011                 
                                 R`000        R`000        R`000                
Revenue                           50 507       48 478       102 421             
Turnover                          49 992       47 179       102 068             
Cost of sales                     (30 492)     (29 278)     (61 585)            
Gross profit                      19 500       17 901       40 483              
Operating expenses                (15 386)     (13 373)     (29 528)            
Depreciation and amortisation     (984)        (795)        (1 859)             
Profit from operations            3 130        3 733        9 096               
Finance (cost)/income - net       (697)        (442)        (1 483)             
Profit before tax                 2 433        3 291        7 613               
Income tax expense                (855)        (1 053)      (2 785)             
Profit                            1 578        2 238        4 828               
Other comprehensive income                                                      
Movement in foreign currency      2            1            (305)               
translation reserve                                                             
Gain on revaluation on freehold   -            -            2 851               
land and buildings                                                              
Tax effect                        -            -            (399)               
Total comprehensive income for    1 580        2 239        6 975               
the year                                                                        
Earnings per ordinary share                                                     
- basic and diluted (cents)       19,4         27,5         59,3                
CONSOLIDATED STATEMENT OF FINANCIAL POSITION                                    
                                 Six months   Six months   Twelve months        
                                 to           to           to                   
31 August    31 August    28 February          
                                 2011         2010         2011                 
                                 R`000        R`000        R`000                
Assets                                                                          
Non-current assets                37 293       34 204       37 317              
Property, plant and equipment     36 848       33 762       36 872              
Goodwill                          437          437          437                 
Intangibles                       8            5            8                   
Current assets                    38 671       38 257       34 638              
Total assets                      75 964       72 461       71 955              
Equity and liabilities                                                          
Total shareholders` equity        40 213       36 007       38 633              
Ordinary shares and premium       6 871        6 871        6 871               
Reserves                          33 342       29 136       31 762              
Non-current liabilities           11 636       13 808       12 304              
Borrowings                        8 210        10 362       8 792               
Deferred tax liabilities          3 426        3 446        3 512               
Current liabilities               24 115       22 646       21 018              
Interest bearing                  3 537        4 728        3 925               
Non-interest bearing              20 578       17 918       17 093              
Total equity and liabilities      75 964       72 461       71 955              
CONSOLIDATED STATEMENT OF CASH FLOWS                                            
                                 Six months   Six months   Twelve months        
                                 to           to           to                   
31 August    31 August    28 February          
                                 2011         2010         2011                 
                                 R`000        R`000        R`000                
Cash flows from operating         (581)        (3 871)      3 748               
activities                                                                      
Cash flows from investing         (930)        (11 781)     (16 462)            
activities                                                                      
Cash flows from financing         (2 264)      10 431       9 226               
activities                                                                      
Net (decrease)/increase in cash   (3 775)      (5 221)      (3 488)             
and cash equivalents                                                            
Cash and cash equivalents at      2 373        5 861        5 861               
beginning of year                                                               
Cash and cash equivalents at end  (1 402)      640          2 373               
of year                                                                         
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY                                     
Six months   Six months   Twelve months        
                                 to           to           to                   
                                 31 August    31 August    28 February          
                                 2011         2010         2011                 
R`000        R`000        R`000                
Ordinary shares                   407          407          407                 
Share premium                     6 464        6 464        6 464               
Foreign currency translation      (214)        100          (207)               
reserve                                                                         
Revaluation reserve               10 001       8 953        10 350              
Retained earnings                 23 555       20 083       21 619              
Total shareholders` equity        40 213       36 007       38 633              
Dividend declared per ordinary                                                  
share (cents)                                                                   
- interim                         10,0         15,0         15,0                
- final                           -            -            16,0                
SUPPLEMENTARY INFORMATION                                                       
                                 Six months   Six months   Twelve months        
                                 to           to           to                   
                                 31 August    31 August    28 February          
2011         2010         2011                 
                                 R`000        R`000        R`000                
Capital expenditure               960          11 873       13 525              
OPERATING SEGMENTS                                                              
Six months   Six months   Twelve months        
                                 to           to           to                   
                                 31 August    31 August    28 February          
                                 2011         2010         2011                 
R`000        R`000        R`000                
Segment revenue                                                                 
Special lubricants and allied     42 987       41 693       91 217              
chemicals                                                                       
External customers                5 091        3 961        8 394               
Local customers                   37 896       37 732       82 823              
Metal powders                     6 826        6 225        14 034              
External customers                3 249        2 961        6 824               
Local customers                   3 577        3 264        7 210               
Other                             2 465        2 345        7 320               
External customers                2 465        2 345        7 320               
Reconciling items                 (2 286)      (3 084)      (10 503)            
External customers                (476)        (1 189)      (2 450)             
Local customers                   (1 810)      (1 895)      (8 053)             
                                 49 992       47 179       102 068              
Segment result                                                                  
Special lubricants and allied     2 327        3 955        5 650               
chemicals                                                                       
Metal powders                     523          25           436                 
Other                             280          (248)        (914)               
Reconciling items                 -            1            3 924               
                                 3 130        3 733        9 096                
Segment assets                                                                  
Special lubricants and allied     52 353       52 787       47 624              
chemicals                                                                       
Metal powders                     8 696        16 361       9 106               
Other                             27 613       25 268       21 195              
Reconciling items                 (12 698)     (21 955)     (5 970)             
75 964       72 461       71 955               
Segment liabilities                                                             
Special lubricants and allied     26 325       28 375       21 456              
chemicals                                                                       
Metal powders                     2 074        10 580       2 967               
Other                             19 327       18 749       15 832              
Reconciling items                 (11 975)     (21 250)     (6 933)             
                                 35 751       36 454       33 322               
RECONCILIATION OF HEADLINE EARNINGS                                             
                                 Six months   Six months   Twelve months        
                                 to           to           to                   
                                 31 August    31 August    28 February          
2011         2010         2011                 
                                 R`000        R`000        R`000                
Profit attributable to            1 578        2 238        4 828               
shareholders                                                                    
(Profit) on disposal of           -            -            (54)                
property, plant and equipment                                                   
Income tax effect on disposal     -            -            15                  
Headline earnings                 1 578        2 238        4 789               
Weighted average number of        8 143        8 143        8 143               
ordinary shares in issue (`000)                                                 
Headline earnings per ordinary                                                  
share                                                                           
- basic and diluted (cents)       19,4         27,5         58,8                
BASIS OF PREPARATION                                                            
The condensed consolidated interim results have been prepared in                
accordance with IAS 34 Interim Financial Reporting, AC 500 standards as         
issued by the Accounting Practices Board and in the manner required by          
the South African Companies Act, 2008. 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 methods of computation are consistently applied         
as in the 2011 financial statements.                                            
Condensed consolidated interim financial statements prepared by: HJ van         
Heerden - B. Com (Acc).                                                         
Condensed consolidated interim financial statements date of publication -       
27 October 2011.                                                                
COMMENTARY                                                                      
POINTS OF INTEREST TO THE CORRESPONDING PERIOD LAST YEAR                        
- Net asset value has increased from 442,2 cents to 493,8 cents per share       
- Group turnover is up by 6%                                                    
- Gross profit percentage has showed a marginal improvement of 1% to 39%        
EXECUTIVE CHAIRMAN`S STATEMENT                                                  
We are pleased to report a strong start to the 2012 financial year.             
We have seen growth in our local industrial market, although the recovery       
in the automotive industry seems slow. We expect to see both local              
divisions continue their strong performance in the second half of the           
2012 financial period.                                                          
Whilst the international division showed improved sales volumes, the            
strength of the Rand against major currencies continued to have a               
negative effect on profitability. Likewise a continuation of current            
exchange rate levels will have a positive effect on our results.                
Profit is down by 29% to the corresponding period last year largely due         
to the increase in administrative expenses. These expenses were necessary       
to streamline the day-to-day operations of the business and we expect to        
reap the rewards of these expenses in the near future.                          
We are expanding our product range in the second half of the year with          
various projects being launched.                                                
There have been no material related party transactions during the period        
under review.                                                                   
SEGMENTAL ANALYSIS                                                              
The special lubricants and allied chemicals division has performed              
consistently with the corresponding period last year.                           
The metal powders segment showed an improvement of 10% to the                   
corresponding period last year. This was mainly due to improved working         
capital management and the recovery seen in the worldwide friction              
industry.                                                                       
DIVIDEND                                                                        
Notice is hereby given that the Board of Directors has declared dividend        
No. 20 of 10 (ten) cents per ordinary share for the six months ended 31         
August 2011. The last day to trade cum dividend is Friday, 11 November          
2011, payable to all shareholders of Spanjaard Limited recorded in the          
books of the company at the close of business on Friday, 18 November            
2011. Shares will commence trading ex dividend from Monday, 14 November         
2011. The dividend is payable on Monday, 21 November 2011. Share                
certificates may not be dematerialised or rematerialised between Monday,        
14 November 2011 and Friday, 18 November 2011, both days inclusive.             
By order of the Board                                                           
ML Bond                                                                         
Company Secretary                                                               
27 October 2011                                                                 
Directors:                                                                      
RJW Spanjaard (Executive Chairman)                                              
E Nepgen (Managing Director)                                                    
GF Cort                                                                         
BL Montgomery*                                                                  
CKT Palmer                                                                      
SA Pretorius                                                                    
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 5 Anerley Road, Parktown, 2193                                           
E-mail: sales@spanjaard.biz                                                     
Website: www.spanjaard.biz                                                      
Date: 27/10/2011 07:15:02 Supplied by www.sharenet.co.za                     
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