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Spanjaard Limited - Reviewed Provisional Group Results For The Year Ended 28 February 2015

Release Date: 05/06/2015 17:15:00      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")

REVIEWED PROVISIONAL GROUP
RESULTS FOR THE YEAR ENDED
28 FEBRUARY 2015

CONSOLIDATED STATEMENT OF PROFIT AND LOSS AND
OTHER COMPREHENSIVE INCOME
                                                          Year ended     Year ended
                                                         28 February    28 February
                                                                2015           2014
                                                            Reviewed        Audited
                                                               R'000          R'000

Revenue                                                      121 427        113 766
Turnover                                                     119 832        111 861
Cost of sales                                               (83 750)       (72 109)
Gross profit                                                  36 082         39 752
Operating expenses                                          (36 016)       (32 171)
Depreciation and amortisation                                (1 468)        (2 569)
Finance (cost)/income ? net                                  (1 231)        (1 235)
Profit/(Loss) before tax                                     (2 633)          3 777
Income tax expense                                             1 140        (1 416)
Profit/(Loss) from continuing operations                     (1 493)          2 361
Discontinued operations
Profit from discontinued operations                                ?             97
Profit/(Loss) for the year                                   (1 493)          2 458
Other comprehensive income
Items that will be reclassified
  Movement in foreign currency translation reserve             (189)             60
Items that will not be reclassified
  Net profit on revaluation on property, plant and
  equipment                                                    5 801            374
Total comprehensive income/(loss) for the year
attributable to ordinary shareholders                          4 119          2 892
Earnings and diluted earnings per ordinary share              (18,3)           30,2
? Continuing operations                                       (18,3)             29
? Discontinued operations                                          ?            1,2

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
                                                               As at          As at
                                                         28 February    28 February
                                                                2015           2014
                                                            Reviewed        Audited
                                                               R'000          R'000
Assets
Non-current assets                                            38 087         30 160
 Property, plant and equipment                                36 638         28 800
 Goodwill                                                        437            437
 Intangibles                                                   1 012            923
Current assets                                                41 102         39 022
Non-current assets held for sale                                   ?          3 759
Total assets                                                  79 189         72 941
Equity and liabilities
Capital and reserves attributable to the
company's equity holders                                      44 392         42 553
 Ordinary shares and premium                                   6 871          6 871
 Reserves                                                     37 521         35 682

Non-current liabilities                                        7 517          9 377
Borrowings                                                     3 088          4 253
Deferred tax liabilities                                       4 429          5 124
Current liabilities                                           27 280         21 011
Total equity and liabilities                                  79 189         72 941

CONSOLIDATED STATEMENT OF CASH FLOW
                                                          Year ended     Year ended
                                                         28 February    28 February
                                                                2015           2014
                                                            Reviewed        Audited
                                                               R'000          R'000

Cash flows from operating activities                         (3 763)        (3 018)
Cash flows from investing activities                           (304)          1 093
Cash flows from financing activities                         (1 291)        (1 616)
Net (decrease)/increase in cash and cash equivalents         (5 358)        (3 541)
Cash and cash equivalents at beginning of year                 (223)          3 318
Cash and cash equivalents at end of year                     (5 581)          (223)

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
                                                               As at          As at
                                                         28 February    28 February
                                                                2015           2014
                                                            Reviewed        Audited
                                                               R'000          R'000

Ordinary shares                                                  407            407
Share premium                                                  6 464          6 464
Foreign currency translation reserve                           (730)          (541)
 Opening balance                                               (541)          (601)
 Movement for the year                                         (189)             60
Revaluation reserve                                            9 266          8 082
 Opening balance                                               8 082          8 296
 Net movement for the year                                     1 184          (214)
Retained earnings                                             28 985         28 141
 Opening balance                                              28 141         27 294
 Net movement for the year                                       844            847

Total shareholders' equity                                    44 392         42 553

DIVIDENDS
Dividend declared per ordinary
share (cents)
? interim                                                       10,0           15,0
? final                                                         18,0           12,0

SUPPLEMENTARY INFORMATION
                                                          Year ended     Year ended
                                                         28 February    28 February
                                                                2015           2014
                                                            Reviewed        Audited
                                                               R'000          R'000

Capital expenditure                                            3 736          2 210

OPERATING SEGMENTS
                                                          Year ended     Year ended
                                                         28 February    28 February
                                                                2015           2014
                                                            Reviewed        Audited
                                                               R'000          R'000
Segment turnover
Special lubricants and allied chemicals                      111 900        106 864
 External foreign customers                                   26 373         18 076
 External local customers                                     85 527         88 788
Metal powders                                                  7 987          6 675
 External foreign customers                                    5 502          3 572
 External local customers                                      2 485          3 103
Other                                                          5 678          3 750
 External foreign customers                                    5 678          3 750
Reconciling items                                            (5 733)        (5 428)
 Inter-segment sales                                         (5 733)        (5 428)

                                                             119 832        111 861

                                                          Year ended     Year ended
                                                         28 February    28 February
                                                                2015           2014
                                                            Reviewed        Audited
                                                               R'000          R'000
Segment result
 Special lubricants and allied chemicals                     (2 689)          2 862
 Metal powders                                                   420          1 249
 Other                                                         1 848             12
 Reconciling items                                             (981)            889
Earnings before interest and tax                             (1 402)          5 012
Segment assets
 Special lubricants and allied chemicals                      65 388         57 762
 Metal powders                                                12 288         11 558
 Other                                                        28 612         25 193
 Reconciling items                                          (27 099)       (21 572)
                                                              79 189         72 941
Segment liabilities
 Special lubricants and allied chemicals                      38 181         29 395
 Metal powders                                                 3 259          1 896
 Other                                                        19 843         20 720
 Reconciling items                                          (26 486)       (21 623)
                                                              34 797         30 388
RECONCILIATION OF HEADLINE EARNINGS
                                                          Year ended     Year ended
                                                         28 February    28 February
                                                                2015           2014
                                                            Reviewed        Audited
Continuing operations                                          R'000          R'000

Profit/(Loss) attributable to shareholders                   (1 493)          2 361
(Profit)/Loss on disposal of property,
plant and equipment                                              302        (1 258)
Income tax effect on disposal                                   (85)            352
Headline earnings                                            (1 276)          1 455
Weighted average number of ordinary
shares in issue ('000)                                         8 143          8 143
Headline earnings per ordinary share
? basic and diluted (cents)                                   (15,7)           17,9

                                                          Year ended     Year ended
                                                         28 February    28 February
                                                                2015           2014
                                                            Reviewed        Audited
Discontinued operations                                        R'000          R'000

Profit attributable to shareholders                                ?             97
Headline earnings                                                  ?             97
Weighted average number of ordinary
shares in issue ('000)                                             ?          8 143
Headline earnings per ordinary share
? basic and diluted (cents)                                        ?            1,2

BASIS OF PREPARATION
The reviewed condensed consolidated provisional results have been prepared in accordance
with the framework concepts using the measurement and recognition requirements of the
International Financial Reporting Standards (IFRS), the South African Institute of Chartered
Accountants (SAICA) Financial Reporting Guides as issued by the Accounting Practices
Committee, containing the information required by IAS 34: Interim Financial Reporting and
in the manner required by the JSE Listings Requirements and the South African Companies
Act, 71 of 2008.

Accounting policies and methods of computation are consistently applied as in the 2014 audited
annual financial statements except for the change in the tax rates used for calculating the
applicable tax on the revaluation of the property, plant and equipment.

Condensed group reviewed results prepared by: Financial Director HJ van Heerden ?
B.Com (Acc).

Condensed group reviewed results date of publication: 5 June 2015.

COMMENTARY
During the period under review, the group experienced extremely harsh trading conditions,
mainly due to the upheavals in the mining industry and at Eskom, as well as exceptionally high
wage increases negotiated by the unions. These negative effects were exacerbated by the
installation of a new Enterprise Resource Planning (ERP) system, which required the services of
three separate contractors to finally achieve some measure of success. This resulted, inter alia,
in severe disruption to management information systems and ultimately on the results achieved
during the 2015 financial year.

The current year loss compared to the prior year profit and various deferred tax movements
resulted in the income tax variance, while the movement in the Foreign Currency Translation
Reserve was due to the effect of the weakening of the Rand on the translation of the foreign
subsidiary.

As per group policy, investment property as well as plant and equipment were revalued during
the year, causing an increase in fixed assets together with the ERP system as explained above.

The repayment of the mortgage bond was responsible for the decrease in borrowings and the
increase of the bank overdraft at year-end caused current liabilities to increase.

DIVIDENDS
Dividend No. 27 of 18 (eighteen) cents per ordinary share was declared on 26 February 2015 for
the year ended 28 February 2015.

The dividend was 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 was disclosed:

? the dividend was declared out of profits available for distribution;
? the local Dividends Tax rate was 15%;
? the gross local dividend amount was 18 cents per share for shareholders exempt from
  Dividends Tax;
? no Secondary Tax on Companies' credits was utilised;
? the net local dividend amount was 15,3 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 were applicable to the dividend:

The last date to trade in order to be eligible for the dividend was Friday, 15 May 2015.

Shares traded ex-dividend from Monday, 18 May 2015.

The record date was Friday, 22 May 2015 and payment was made on Monday, 25 May 2015.

Share certificates were not able to be dematerialised/rematerialised between Monday, 18 May
2015 and Friday, 22 May 2015, both days inclusive.

AUDIT REVIEW
The results have been reviewed by the Group's auditors, Mazars. Their unqualified review opinion
is available for inspection at the Company's registered office. Their review was conducted
in accordance with ISRE 2410 "Review of interim financial information performed by the
independent auditor of the entity."

Mrs SF Pitchford
Company Secretary

5 June 2015

Directors
RJW Spanjaard (Executive Chairman), GF Cort, Mrs S Hari*, BL Montgomery*, CKT Palmer,
Prof DP van der Nest*, HJ van Heerden (Financial Director)
*Independent Non-executive
Ms E Nepgen resigned as Director on 26 May 2015.

Registered office
748 ? 750 Fifth Street, Wynberg, Sandton, 2090

Transfer Secretaries
Computershare Investor Services Proprietary Limited, 70 Marshall Street, Johannesburg, 2001

Sponsor
Arbor Capital Sponsors Proprietary Limited, Ground Floor, ONE Health Building,
Woodmead North Office Park, 54 Maxwell Drive, Woodmead

Email: info@spanjaard.biz

Website: www.spanjaard.biz

Date: 05/06/2015 05:15:00 Supplied by www.sharenet.co.za                     
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