|Kaap Agri published their maiden interim results. Revenue for the period came in at R3.411 billion, gross profit was R589.9 million, operating profit was recorded at R260.9 million, profit for the period attributable to equity holders of the holding company was R156.2 million, while headline earnings per share came to 220.97 cents per share. |
A gross interim dividend of 32 cents per share has been approved and declared by the board from income reserves, which represents an 8.8% increase on the previous interim dividend. The interim dividend amount, net of South African dividends tax of 20%, is 25.60 cents per share for those shareholders that are not exempt from dividends tax.
Although the current year remains challenging, our growth strategies are firmly on track to deliver superior returns in line with our strategic medium-term plans and we remain optimistic that the coming agricultural season should improve. Improving our customers' engagement experience is paramount and we will continue to invest in our people and into revenue and cash generating capital expenditure. Improved revenue growth is anticipated for the next six months as consumer confidence shows signs of recovery, store upgrades and expansions contribute more significantly and the revenue from new TFC sites is recognised.
Kaap Agri remains well positioned to take advantage of its extensive footprint and diverse service offerings to maintain its strong organic growth and to focus on new business opportunities.
|Shareholders are advised that Kaap Agri intends to release its interim financial results for the six months ended 31 March 2018 on Monday, 7 May 2018.|
The Company will be hosting a webcast at 10:00 am on Tuesday, 8 May 2018 to present the results to shareholders. The webcast will be available for viewing to all shareholders at the following link: http://www.corpcam.com/KaapAgri08052018
|Although the drought has impacted Agri-retail sales, Kaap Agri increased revenue for the six-month period ended 31 March 2018, by 5.1% to approximately R3.421 billion, up from R3.256 billion in the previous comparable financial period*, with like-for-like comparable sales growth of 2.9%. The growth in the value of business transacted was driven mainly by a 17.1% increase in the number of transactions. Product inflation is estimated at 3.7%.|
The drought conditions being experienced specifically in the Western Cape have affected the trading results significantly with the negative effect on Wesgraan being heavily weighted to the first six months of the year. Non-Agri retail sales continue to show strong growth despite subdued consumer spending and low economic growth. Fuel retail expansion continues, taking into account timing in respect of regulatory processes with the outlook in this space being positive and existing and acquired sites performing well.
As part of the retail fuel expansion, The Fuel Company (?TFC?) owned and managed sites have grown fuel volumes by 40.5% and additional TFC site acquisitions are at various stages of conclusion. The business continues to explore Agri and Retail expansion opportunities.
Improved revenue growth is anticipated for the next six months as consumer confidence shows signs of recovery, store upgrades and expansions contribute more significantly and the revenue from new TFC sites is recognised.
|In its SENS announcement dated 10 November 2017, Kaap Agri advised that certain of its subsidiaries had entered into a transaction to acquire three retail fuel operations, situated in Gauteng and in Limpopo, and two accompanying retail fuel related properties (?Acquisition?).|
In the Company?s SENS announcement dated 1 March 2018, shareholders were advised that certain of the conditions precedent to the Acquisition were yet to be fulfilled and that the parties had agreed to extend the date by which the final conditions precedent were to be completed, to 30 March 2018.
Shareholders are advised that the remaining conditions precedent were not fulfilled by 30 March 2018 and have, accordingly, lapsed. In the circumstances, Kaap Agri was not amenable to negotiating a further extension of the deadline for these conditions precedent and the Acquisition will therefore not be proceeding.
|Shareholders are referred to the Company?s SENS announcement dated 10 November 2017, advising that subsidiaries of the Company had entered into a transaction to acquire three retail fuel operations, situated in Gauteng and in Limpopo, and two accompanying retail fuel related properties (?Acquisition?).|
The Company indicated in the abovementioned announcement that it was anticipated that the acquisition would, subject to the fulfilment of the conditions precedent detailed in that announcement, be implemented on or before 28 February 2018.
Shareholders are advised that certain of the conditions precedent to the acquisition are still in the process of being finalised and that the acquisition has accordingly not yet been implemented. The parties have, accordingly, agreed to extend the date by which the final conditions precedent are to be fulfilled, to 30 March 2018.
Shareholders will be advised once these final conditions precedent have been fulfilled and the acquisition implemented.
|Shareholders are hereby advised that at the annual general meeting of the Company held on Thursday, 15 February 2018, at the Kaap Agri Member Hall, 65 Voortrekker Road, Malmesbury, (?AGM?), all of the resolutions proposed were passed by the requisite majorities of Kaap Agri shareholders. |
|Shareholders are advised that Kaap Agri?s corporate office has been relocated to the following new address: |
Physical address: 1 Westhoven Street, Paarl, Western Cape, 7620
Other contact details have also changed as follows:
Postal address: Suite 110, Private Bag X3041, Paarl, Western Cape, 7620
Telephone: 021 860 3750
Telefax: 021 860 1134
A change in the registered address of the company to the above physical address has been registered with the Companies and Intellectual Property Commission.
|Shareholders are referred to the company?s SENS announcement on 21 December 2017 notifying shareholders of the annual general meeting of the company to be held at 12:30 on Thursday, 15 February 2018 and advising that the full annual financial statements for the company?s financial year ended 30 September 2017 will be available on Kaap Agri?s website on or before 24 January 2018.|
Notice is hereby given that the integrated annual report and full annual financial statements for the company?s financial year ended 30 September 2017 have been published and are available on Kaap Agri?s website, www.kaapagri.co.za, as of today, 24 January 2018.
|Notice is hereby given that the annual general meeting of Kaap Agri will be held at 12:30 on Thursday, 15 February 2018 at the Kaap Agri Member Hall, 65 Voortrekker Road, Malmesbury to transact the business as set out in the notice of annual general meeting (?Notice of AGM?) that was distributed to shareholders today, 21 December 2017.|
The summarised consolidated results for the financial year ended 30 September 2017 are annexed to the Notice of AGM and contain no changes to the summarised consolidated results for the year ended 30 September 2017 published by the Company on SENS on 29 November 2017.
The full annual financial statements for the Company?s financial year ended 30 September 2017 will be available on Kaap Agri?s website www.kaapagri.co.za. on or before 24 January 2018.
The date on which shareholders must be recorded as such in the share register to be eligible to attend and vote at the annual general meeting is Friday, 9 February 2018, with the last day to trade being Tuesday, 6 February 2018.
|In accordance with paragraph 16.20 (g) and Appendix 1 to Section 11 of the JSE Listing Requirements, notice is hereby given that the Company?s annual compliance report in terms of section 13G(2) of the Act has been published and is available on the Company?s website at www.kaapagri.co.za.|
|The following results are the company's maiden final results and, therefore, are in comparable. Revenue for the year came to R6.4 billion whilst gross profit was R1.1 billion. Operating profit of R399.8 million was recorded. Profit attributable to equity holders was R241.4 million. In addition, headline earnings per share were 345.56 cents per share .|
A gross final dividend of 82.60 cents per share has been approved and declared by the board from income reserves, which represents a 21.5% increase on the previous year.
Economic conditions in South Africa have been difficult over the past year and general retail performance in the country has been constrained. Agricultural conditions have shown improvement in specifically the northern areas of the country, but remain under pressure in the Western Cape with the Swartland grain producers expecting a decreased yield on last year. Dam levels in certain areas are at below-average levels, which may impact fruit producers negatively. Retail fuel growth remains an aggressive part of the expansion strategy.
Although the year ahead will be a challenging one, we believe our growth strategies are firmly on track to deliver superior returns in line with our strategic medium-term plans. We will continue to invest into our people and to engage proactively with customers. We will maintain and, in certain circumstances, accelerate investment into revenue-generating capital expenditure, and the focus on improved retail and fuel offerings will positively impact results.
Kaap Agri is well positioned to take advantage of its extensive footprint and diverse service offerings to maintain its strong organic growth and to focus on new business opportunities.
|Shareholders are advised that Kaap Agri intends to release its results for the year ended 30 September 2017 on Wednesday, 29 November 2017. The Company will be hosting a webcast at 10:00 am on Thursday, 30 November 2017, to present the results to shareholders.|
The webcast will be available for viewing to all shareholders at the following link: www.corpcam.com/KA30112017.
|Kaap Agri increased the value of business transacted by 12.7% to approximately R8.6 billion, up from R7.6 billion in the previous financial year, with comparable growth of 9.8%. The growth in the value of business transacted was driven mainly by a 16.0% increase in the number of transactions. Product inflation is estimated at 3.9%.|
The Company?s diversification strategy and ongoing investment into improvements, upgrades and acquisitions continues to generate strong earnings and shareholder returns. At half-year, the Company indicated that it anticipated improved earnings growth in the second half of the financial year. This has materialised due to improved operational performance as well as the annualisation of certain costs. Recurring headline earnings for the full year is expected to be between R244.0m and R248.2m, representing an increase of between 16% and 18% from the previous comparable period, with strong performances from all business segments. Once off items are excluded from headline earnings to calculate recurring headline earnings.
The above financial information is the responsibility of the directors and has not been reviewed or reported on by the Company?s external auditors. The Company?s consolidated financial results for the for the year ended 30 September 2017 will be released on the Stock Exchange News Service of the JSE on or about 29 November 2017.
|Shareholders are advised that Mr JH van Niekerk will step down as member of Kaap Agri?s audit committee with effect from 21 September 2017 and will be replaced by Mrs D du Toit with effect from that date.|
Mr JH van Niekerk remains a member of the remuneration committee and the nominations committee, as well as chairman of the finance committee
|The board of directors of Kaap Agri advised shareholders that the Company, through its wholly-owned subsidiary, Kaap Agri Bedryf Ltd. (?Kaap Agri Bedryf?) has entered into a joint venture agreement (?Agreement?) with Pupkewitz Holdings (Pty) Ltd. (?Pupkewitz?) dated 1 August 2017. In terms of the Agreement, Pupkewitz will acquire 50% of the shareholding in Kaap Agri Namibia (Pty) Ltd. (?Kaap Agri Namibia?) (a wholly-owned subsidiary of Kaap Agri Bedryf) (?Joint Venture?).|
The rationale behind the Joint Venture is to provide the Company with a more comprehensive footprint. The combined, inclusive offering of Pupkewitz Megabuild and Kaap Agri Namibia will service retail, agriculture and contractor customers in Namibia by combining and enhancing the product and service offerings at competitive prices. The strategies and values of the businesses are closely aligned and the Joint Venture will further provide clear benefits to Kaap Agri shareholders in terms of synergies it will create. The combined focus on people development will greatly enhance the management and leadership potential of the people of Kaap Agri.
|Shareholders are hereby advised that Dr Wynoma Michaels has been appointed as an independent non-executive director to the board of Kaap Agri, with effect from 1 August 2017.|