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Spanjaard Limited - Unaudited Interim Group Results For The Six Months Ended 31 August 2013 And Declaration Of Dividend

Release Date: 31/10/2013 07:05:00      Code(s): SPA     
Spanjaard Limited
(Incorporated in the Republic of South Africa)
Registration number 1960/004393/06
Share code: SPA ISIN: ZAE000006938
("Company" or "Group")

UNAUDITED INTERIM GROUP RESULTS
FOR THE SIX MONTHS ENDED
31 AUGUST 2013 AND
DECLARATION OF DIVIDEND

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
                                                    Six months to      Six months to   
                                                   31 August 2013     31 August 2012   
                                                            R'000              R'000
   
Revenue                                                    58 310             55 067   
Turnover                                                   56 890             54 072   
Cost of sales                                            (37 165)           (33 096)   
Gross profit                                               19 725             20 976   
Operating expenses                                       (15 503)           (16 455)   
Depreciation and amortisation                             (1 255)            (1 303)   
Profit from operations                                      2 967              3 218   
Finance (cost)/income  net                                 (519)              (591)   
Profit before tax                                           2 448              2 627   
Income tax expense                                          (788)              (745)   
Profit                                                      1 660              1 882   
Other comprehensive income                                                           
Movement in foreign currency translation reserve               30                 51   
Total comprehensive income for the year                     1 690              1 933   
Earnings per ordinary share                                                          
 basic and diluted (cents)                                  20,4               23,1   

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
                                                    Six months to   Twelve months to   
                                                   31 August 2013   28 February 2013   
                                                            R'000              R'000   
Assets                                                              
Non-current assets                                         34 834             34 680   
Property, plant and equipment                              34 391             34 237   
Goodwill                                                      437                437   
Intangibles                                                     6                  6   
Current assets                                             40 248             37 295   
Total assets                                               75 082             71 975   
Equity and liabilities                                              
Total shareholders' equity                                 42 330             41 860   
Ordinary shares and premium                                 6 871              6 871   
Reserves                                                   35 459             34 989   
Non-current liabilities                                    12 199             10 897   
Borrowings                                                  7 269              5 873   
Deferred tax liabilities                                    4 930              5 024   
Current liabilities                                        20 553             19 218   
Total equity and liabilities                               75 082             71 975   

CONSOLIDATED STATEMENT OF CASH FLOWS
                                                    Six months to      Six months to   
                                                   31 August 2013     31 August 2012   
                                                            R'000              R'000 
  
Cash flows from operating activities                        1 394            (4 874)   
Cash flows from investing activities                      (1 776)                797   
Cash flows from financing activities                         (50)            (2 209)   
Net decrease in cash and cash equivalents                   (432)            (6 286)   
Cash and cash equivalents at beginning of year              3 318              1 478   
Cash and cash equivalents at end of year                    2 886            (4 808)   

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
                                                    Six months to      Six months to   
                                                   31 August 2013     31 August 2012   
                                                            R'000              R'000
   
Ordinary shares                                               407                407   
Share premium                                               6 464              6 464   
Foreign currency translation reserve                        (571)              (144)   
Revaluation reserve                                         7 872              9 514   
Retained earnings                                          28 158             26 397   
Total shareholders' equity                                 42 330             42 638   

DIVIDENDS                                                    
Dividend declared per ordinary share (cents)                 
 interim                                                    15,0               15,0   

SUPPLEMENTARY INFORMATION                                                   
                                                    Six months to      Six months to   
                                                   31 August 2013     31 August 2012   
                                                            R'000              R'000
   
Capital expenditure                                         1 780             1 121   
OPERATING SEGMENTS                                                          
                                                    Six months to      Six months to   
                                                   31 August 2013     31 August 2012   
                                                            R'000              R'000   
Segment revenue                                                             
Special lubricants and allied chemicals                    52 412             50 265   
External customers                                          6 334              9 242   
Local customers                                            46 078             41 023   
Metal powders                                               7 000              6 140   
External customers                                          3 067              2 721   
Local customers                                             3 933              3 419   
Other                                                       1 203                638   
External customers                                          1 203                638   
Reconciling items                                         (3 725)            (2 971)   
External customers                                        (1 453)            (1 013)   
Local customers                                           (2 272)            (1 958)   
                                                           56 890             54 072   
Segment result                                                              
Special lubricants and allied chemicals                     1 708              2 687   
Metal powders                                               1 294                325   
Other                                                         366                398   
Reconciling items                                           (401)              (192)   
                                                            2 967              3 218
Segment assets                                                                
Special lubricants and allied chemicals                    55 340             50 312   
Metal powders                                              10 655              9 951   
Other                                                      22 516             24 790   
Reconciling items                                        (13 429)           (13 078)   
                                                           75 082             71 975   
Segment liabilities                                                           
Special lubricants and allied chemicals                    26 714             21 602   
Metal powders                                               1 512              1 702   
Other                                                      16 329             18 329   
Reconciling items                                        (11 803)           (11 518)   
                                                           32 752             30 115   
RECONCILIATION OF HEADLINE EARNINGS
                                                    Six months to      Six months to   
                                                   31 August 2013     31 August 2012   
                                                            R'000              R'000
   
Profit attributable to shareholders                         1 660              1 882   
Headline earnings                                           1 660              1 882   
Weighted average number of ordinary shares                                     
in issue ('000)                                             8 143              8 143   
Headline earnings per ordinary share                                           
 basic and diluted (cents)                                  20,4               23,1   

BASIS OF PREPARATION

The condensed consolidated interim results have been prepared using the measurement and
recognition requirements of International Financial Reporting Standards (IFRS) and the South African
Institute of Chartered Accountants (SAICA) Financial Reporting Guides in accordance with IAS 34
Interim Financial Reporting, AC 500 standards as issued by the Accounting Practises Committee
and in the manner required by the South African Companies Act, 71 of 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 2013 audited
annual financial statements.

Condensed consolidated interim financial statements are prepared by: HJ van Heerden  BCom (Acc).

Condensed consolidated interim financial statements date of publication  31 October 2013.

COMMENTARY

POINTS OF INTEREST

- Group turnover is up 5% compared to the same period last year
- Interim gross cash dividend declared of 15 cents per share
- Net asset value increased from 514 cents to 519,8 cents per share for
  the six months ended 31 August 2013

EXECUTIVE CHAIRMAN'S STATEMENT

We believe our overall results for the first half of the year are consistent with current market conditions.

We have seen a satisfactory increase in turnover for the period. Sharp increases in manufacturing
overheads led to a decline in both Gross Profit margins, as well as Net Profit after Tax.

The local Consumer/Automotive and Industrial divisions exceeded expectations and grew by 12%
compared to the previous period. Tough international market conditions had a negative impact on
our international division.

The acquisition of new Enterprise Resource Planning (ERP) software during the period under review has 
brought about the increase in non-current assets and borrowings, as well as having an effect on the 
movements in the investing and financing activities in the statement of cash flows. We believe the 
benefits will more than justify this investment.

There have been no material related party transactions during the period under review.

SEGMENTAL ANALYSIS

The special lubricants and allied chemicals division showed a slight increase in turnover. The
segment's profit is down due to unexpected increases in some of our manufacturing expenses.

The metal powders segment showed an increase of 14% in turnover. Special projects and a new
direction in terms of sales led to a 298% increase in profit from operations when compared to the
corresponding period last year.

INTERIM DIVIDEND

Notice is hereby given that Dividend No. 24 of 15 (fifteen) cents per ordinary share has been declared
for the six months ended 31 August 2013.

The dividend will be subject to the Dividends Tax that was introduced with effect from 1 April 2012.

In accordance with the provisions of the Listings Requirements of the Johannesburg Stock Exchange,
the following additional information is disclosed:

- the dividend has been declared out of profits available for distribution;
- the local Dividends Tax rate is 15%;
- the gross local dividend amount is 15 cents per share for shareholders exempt from Dividends Tax;
- no Secondary Tax on Companies' credits have been utilised;
- the net local dividend amount is 12,75 cents per share for shareholders liable for Dividends Tax;
- Spanjaard has 8 142 850 ordinary shares in issue; and
- Spanjaard's income tax reference number is 9543 676 84 6.

The following dates are applicable to the dividend:

The last date to trade in order to be eligible for the dividend will be Friday, 15 November 2013.

Shares will trade ex-dividend from Monday, 18 November 2013.

The record date will be Friday, 22 November 2013 and payment will be made on Monday,
25 November 2013.

Share certificates may not be dematerialised/rematerialised between Monday, 18 November 2013
and Friday, 22 November 2013, both days inclusive.

By order of the Board

Ms SF Venter
Company Secretary

31 October 2013

Directors:
RJW Spanjaard (Executive Chairman), Ms E Nepgen (Managing Director), GF Cort
Mrs S Hari*, BL Montgomery*, CKT Palmer, Prof 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 Proprietary Limited
70 Marshall Street, Johannesburg, 2001

Sponsor:
Arcay Moela Sponsors Proprietary Limited
54 Maxwell Drive, Woodmead, 2054

Email: info@spanjaard.biz

Website: www.spanjaard.biz
Date: 31/10/2013 07:05:00 Supplied by www.sharenet.co.za                     
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