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OCEANA GROUP LIMITED
INCORPORATED IN THE REPUBLIC OF SOUTH AFRICA
(REGISTRATION NUMBER 1939/001730/06)
GROUP RESULTS AND DIVIDEND DECLARATION FOR THE YEAR ENDED 30 SEPTEMBER 2000
THE AUDITED RESULTS FOR THE YEAR ENDED 30 SEPTEMBER 2000 ARE SET OUT HEREIN.
THIS REPORT HAS BEEN PREPARED IN COMPLIANCE WITH SOUTH AFRICAN STATEMENTS OF
GENERALLY ACCEPTED ACCOUNTING PRACTICE AND IN ACCORDANCE WITH THE PRINCIPLES
APPLIED IN THE MOST RECENTLY PUBLISHED ANNUAL FINANCIAL STATEMENTS.
PRIOR YEAR FIGURES FOR THE YEAR ENDED 30 SEPTEMBER 1999 HAVE BEEN RESTATED IN
LINE WITH THE CHANGE IN ACCOUNTING POLICY FOR DEFERRED TAX WHICH WAS
IMPLEMENTED WITH EFFECT FROM 01 OCTOBER 1999. FIGURES FOR YEARS PRIOR TO 1999
HAVE NOT BEEN RESTATED.
DIRECTORS :
D M J NCUBE (CHAIRMAN), R A WILLIAMS (VICE CHAIRMAN), A B MARSHALL (MANAGING
DIRECTOR), D F BEHRENS, M A BREY, T N CHAPMAN, B P CONNELLAN, N DENNIS, R M
KRAMER, R G NICOL, S PATHER, R V SMITHER, R DE H STEENKAMP, A W S VISAGIE, T W
VUNDLA.
GROUP INCOME STATEMENT
NOTES 2000 1999 CHANGE
R'000 R'000 %
REVENUE 1,747,281 1,478,193 18
OPERATING PROFIT 165,865 128,646 29
DIVIDENDS RECEIVED 0 288
NET INTEREST RECEIVED 2 8,967 10,861
PROFIT BEFORE TAXATION
AND ABNORMAL ITEMS 174,832 139,795 25
ABNORMAL ITEMS 3 383 3,477
PROFIT BEFORE TAXATION 175,215 143,272
TAXATION 1 62,038 52,398 18
PROFIT AFTER TAXATION 113,177 90,874
SHARE OF PROFITS / (LOSSES)
OF ASSOCIATE COMPANY 61 (266)
PROFIT AFTER TAXATION
INCLUDING ASSOCIATE COMPANY 113,238 90,608
ATTRIBUTABLE TO OUTSIDE
SHAREHOLDERS IN SUBSIDIARIES 592 1,528
ATTRIBUTABLE TO OWN
SHAREHOLDERS 112,646 89,080 27
NUMBER OF SHARES IN
ISSUE (000'S) 104,414 103,159
WEIGHTED AVERAGE NO OF SHARES
ON WHICH HEADLINE EARNINGS AND
NET PROFIT PER SHARE IS
BASED (000'S) 103,694 102,849
HEADLINE EARNINGS PER
SHARE (CENTS) 107.3 82.9 29
NET PROFIT PER SHARE (CENTS) 108.6 86.6 25
DIVIDENDS PER SHARE (CENTS) 45.0 34.6 30
DETERMINATION OF HEADLINE EARNINGS
ATTRIBUTABLE TO OWN SHAREHOLDERS 112,646 89,080
ADJUSTED FOR:
- PROFIT ON CHANGE OF INTEREST
IN INVESTMENT (262) 0
- PROFIT ON DISPOSAL OF FIXED
ASSETS (1,164) (3,815)
HEADLINE EARNINGS FOR
THE YEAR 111,220 85,265 30
DIVIDEND DECLARATION
NOTICE IS HEREBY GIVEN THAT A FINAL DIVIDEND NO. 114 OF 34 CENTS PER SHARE, IN
RESPECT OF THE YEAR ENDING 30 SEPTEMBER 2000, HAS BEEN DECLARED, PAYABLE TO
SHAREHOLDERS REGISTERED IN THE BOOKS OF THE COMPANY AT THE CLOSE OF BUSINESS ON
08 DECEMBER 2000, PAYMENT TO BE MADE ON OR ABOUT 05 JANUARY 2001.
BY ORDER OF THE BOARD
J D COLE SECRETARY
02 NOVEMBER 2000
REGISTERED OFFICE: 20 LOWER BURG STREET , CAPE TOWN 8001
TRANSFER SECRETARIES : MERCANTILE REGISTRARS LIMITED
11 DIAGONAL STREET, JOHANNESBURG, 2001
(PO BOX 1053, JOHANNESBURG 2000)
GROUP BALANCE SHEET
NOTES 2000 1999
R'000 R'000
ASSETS
NON CURRENT ASSETS 190,995 139,459
FIXED ASSETS 158,142 101,610
DEFERRED TAXATION 1 22,331 30,724
INVESTMENTS AND LOANS 5 10,522 7,125
CURRENT ASSETS 595,032 507,524
INVENTORIES 169,987 161,800
DEBTORS 339,695 266,667
CASH AND CASH EQUIVALENTS 85,350 79,057
TOTAL ASSETS 786,027 646,983
EQUITY AND LIABILITIES
CAPITAL AND RESERVES 384,531 311,636
SHARE CAPITAL AND PREMIUM 16,795 11,857
NON-DISTRIBUTABLE RESERVES
AND RETAINED INCOME 1&4 362,452 294,630
INTEREST OF OUTSIDE
SHAREHOLDERS 5,284 5,149
NON-CURRENT LIABILITIES 960 90
LONG-TERM BORROWINGS 0 50
DEFERRED TAXATION 960 40
CURRENT LIABILITIES
CREDITORS, PROVISIONS AND
SHAREHOLDERS FOR DIVIDENDS 400,536 335,257
TOTAL EQUITY AND LIABILITIES 786,027 646,983
NET ASSET VALUE PER ORDINARY
SHARE (CENTS) 363 297
TOTAL LIABILITIES: TOTAL
SHAREHOLDERS'FUNDS (%) 104 108
GROUP CASH FLOW STATEMENT
2000 1999
R'000 R'000
CASH FLOWS FROM OPERATING ACTIVITIES
OPERATING PROFIT 165,865 128,646
ADJUSTMENT FOR NON CASH ITEMS 31,364 21,386
OPERATING PROFIT BEFORE WORKING
CAPITAL CHANGES 197,229 150,032
WORKING CAPITAL CHANGES 5,529 4,215
CASH GENERATED FROM OPERATIONS 202,758 154,247
INTEREST AND DIVIDENDS RECEIVED 15,127 14,534
INTEREST PAID (6,160) (3,385)
TAXATION PAID (54,393) (52,613)
DIVIDENDS PAID (38,226) (32,054)
NET CASH INFLOW FROM
OPERATING ACTIVITIES 119,106 80,729
CASH OUTFLOW FROM INVESTING
ACTIVITIES (106,711) (18,896)
NET CASH INFLOW BEFORE FINANCING
ACTIVITIES 12,395 61,833
NET CASH FLOWS FROM FINANCING
ACTIVITIES 4,888 1,052
NET INCREASE IN CASH AND CASH
EQUIVALENTS 17,283 62,885
BORROWINGS RESULTING FROM
ACQUISITION OF BUSINESS (10,990) 0
CASH AND CASH EQUIVALENTS AT THE
BEGINNING OF THE YEAR 79,057 16,172
CASH AND CASH EQUIVALENTS AT THE
END OF THE YEAR 85,350 79,057
GROUP STATEMENT OF CHANGES IN
ORDINARY SHAREHOLDERS INTEREST
SHARE NO
CAPITAL DISTRI- DISTRI-
AND BUTABLE BUTABLE
PREMIUM RESERVES RESERVES TOTAL
R'000 R'000 R'000 R'000
BALANCE AT THE BEGINNING OF THE
PRIOR YEAR AS PREVIOUSLY REPORTED 10,055 7,919 188,985 206,959
CHANGE IN ACCOUNTING POLICY(NOTE 1) 0 0 40,429 40,429
RESTATED BALANCE 10,055 7,919 229,414 247,388
TRANSFER FROM NON-DISTRIBUTABLE
RESERVES 0 (266) 266 0
SHARES ISSUED 1,802 0 0 1,802
TRANSFER OF FOREIGN CURRENCY
TRANSLATION RESERVE 0 3,979 0 3,979
GOODWILL WRITTEN OFF 0 0 (74) (74)
NET PROFIT FOR THE PERIOD AS
RESTATED 0 0 89,080 89,080
DIVIDENDS 0 0 (35,688) (35,688)
RESTATED BALANCE AT THE BEGINNING
OF THE YEAR 11,857 11,632 282,998 306,487
TRANSFER FROM NON-DISTRIBUTABLE
RESERVES 0 (94) 94 0
SHARES ISSUED 4,938 0 0 4,938
DISCOUNT ON ACQUISITION OF
BUSINESS 0 558 0 558
TRANSFER OF FOREIGN CURRENCY
TRANSLATION RESERVE 0 1,833 0 1,833
GOODWILL WRITTEN OFF 0 0 (219) (219)
NET PROFIT FOR THE PERIOD 0 0 112,646 112,646
DIVIDENDS 0 0 (46,996) (46,996)
BALANCE AT THE END OF THE YEAR 16,795 13,929 348,523 379,247
SEGMENT REPORT
2000 1999
R'000 R'000
REVENUE
OCEANA FISHING DIVISION 240,797 163,249
COMMERCIAL COLD STORAGE DIVISION 80,489 76,202
BLUE CONTINENT GROUP AND FEDERAL MARINE 1,425,995 1,238,742
TOTAL 1,747,281 1,478,193
OPERATING PROFIT
OCEANA FISHING DIVISION 59,200 42,895
COMMERCIAL COLD STORAGE DIVISION 17,989 16,569
BLUE CONTINENT GROUP AND FEDERAL MARINE 88,676 69,182
TOTAL 165,865 128,646
TOTAL ASSETS (EXCLUDING DEFERRED TAX)
OCEANA FISHING DIVISION 173,958 133,578
COMMERCIAL COLD STORAGE DIVISION 64,443 68,129
BLUE CONTINENT GROUP AND FEDERAL MARINE 429,422 328,370
FINANCING 95,873 86,182
TOTAL 763,696 616,259
TOTAL LIABILITIES (EXCLUDING
DEFERRED TAX)
OCEANA FISHING DIVISION 109,710 90,094
COMMERCIAL COLD STORAGE DIVISION 17,572 20,056
BLUE CONTINENT GROUP AND FEDERAL MARINE 229,566 188,076
FINANCING 43,688 37,081
TOTAL 400,536 335,307
NOTES
2000 1999
R'000 R'000
1. CHANGE IN ACCOUNTING POLICY
THE COMPANY HAS CHANGED ITS
ACCOUNTING POLICY FOR DEFERRED
TAXATION FROM THE PARTIAL TO THE
COMPREHENSIVE BASIS. WHERE
APPLICABLE, PRIOR YEAR FIGURES
HAVE BEEN RESTATED ON THE NEW
BASIS AND THE EFFECT OF THE CHANGE
IS SET OUT BELOW:-
TAXATION CHARGE
- AMOUNT AS PREVIOUSLY REPORTED 42,693
- DEFERRED TAX ADJUSTMENT 9,705
- AS RESTATED 52,398
NON-DISTRIBUTABLE RESERVES AND RETAINED INCOME
- AMOUNT AS PREVIOUSLY REPORTED 263,906
- DEFERRED TAX ADJUSTMENT PRIOR
AND PRECEDING YEARS 40,429
- DEFERRED TAX ADJUSTMENT CURRENT YEAR (9,705)
- AS RESTATED 294,630
DEFERRED TAX ASSET
- AS PREVIOUSLY STATED 0
- DEFERRED TAX ADJUSTMENT 30,724
- AS RESTATED 30,724
THE CHANGE IN COMPANY TAX RATE
FROM 35% TO 30% IN THE PRIOR
YEAR RESULTED IN AN ADDITIONAL TAX
CHARGE OF R5.7M WHICH HAS BEEN
INCLUDED IN THE DEFERRED TAX
ADJUSTMENT TO THE PRIOR YEAR
TAX CHARGE.
2. NET INTEREST RECEIVED
INTEREST RECEIVED 15,127 14,246
INTEREST PAID (6,160) (3,385)
8,967 10,861
3. ABNORMAL ITEMS
PROFIT ON CHANGE OF INTEREST IN
INVESTMENT 262 0
PROFIT ON DISPOSAL OF LAND
AND BUILDINGS 121 3,491
PRIVATE SECTOR INITIATIVE DONATION 0 (14)
ABNORMAL PROFIT BEFORE TAXATION 383 3,477
TAXATION 0 21
ABNORMAL PROFIT ATTRIBUTABLE TO
OWN SHAREHOLDERS 383 3,498
4. GOODWILL
RETAINED INCOME IS STATED AFTER
THE FOLLOWING DIRECT CHARGE
- GOODWILL ARISING ON ACQUISITION 219 74
5. INVESTMENTS AND LOANS
DIRECTORS' VALUATION OF
INVESTMENTS AND LOANS
UNLISTED SHARES 279 348
LOANS 10,243 6,777
10,522 7,125
6. SUPPLEMENTARY INFORMATION
COST OF INVENTORIES UTILISED 1,268,453 1,065,807
DEPRECIATION 31,960 23,516
OPERATING LEASE CHARGES 6,129 5,659
CAPITAL EXPENDITURE 76,519 24,467
- EXPANSION 48,754 11,265
- REPLACEMENT 27,765 13,202
CAPITAL COMMITMENTS 91,021 52,546
- CONTRACTED 23,049 7,851
- APPROVED 67,972 44,695
OPERATING LEASE COMMITMENTS 197,187 196,582
- LAND AND BUILDINGS 195,216 195,415
- OTHER 1,971 1,167
CONTINGENT LIABILITIES 4,744 6,000
COMMENTS
FINANCIAL RESULTS
HEADLINE EARNINGS INCREASED BY 30% OVER THOSE OF THE PREVIOUS YEAR AND BY 29%
ON A PER SHARE BASIS. GROUP OPERATING PROFIT IMPROVED BY 29% ON A TURNOVER
INCREASE OF 18%.
A FINAL DIVIDEND OF 34 CENTS PER SHARE HAS BEEN DECLARED, WHICH TOGETHER WITH
THE INTERIM DIVIDEND OF 11 CENTS BRINGS THE TOTAL DIVIDEND FOR THE YEAR TO 45
CENTS PER SHARE. THIS TOTAL DIVIDEND REPRESENTS AN INCREASE OF 30% OVER THE
PREVIOUS YEAR.
THE PRIOR YEAR RESULTS HAVE BEEN RESTATED IN TERMS OF THE CHANGE IN ACCOUNTING
POLICY FOR DEFERRED TAX, AS MORE FULLY SET OUT IN THE ACCOMPANYING NOTES.
REVIEW OF OPERATIONS
THE LUCKY STAR BRAND IMPROVED ITS LOCAL MARKET SHARE, AND INCREASED VOLUMES
WERE PROCESSED THROUGH THE GROUP'S CANNERIES. EXPORT SALES INCREASED BY OVER
90% AND OVERALL SALES OF LUCKY STAR EXCEEDED 250 MILLION CANS FOR THE YEAR.
FISH MEAL PRICES IMPROVED DURING THE SECOND HALF OF THE YEAR AND LANDINGS OF
ANCHOVY WERE ENCOURAGING.
THE GROUP'S HORSE MACKEREL BUSINESS AT ERONGO SEA PRODUCTS IN NAMIBIA BENEFITED
FROM INCREASED VOLUMES AND MARGINS AS WELL AS IMPROVED WORKING CAPITAL
MANAGEMENT.
SALES OF FRENCH FRIES IMPROVED SIGNIFICANTLY DUE TO INCREASED MARKET SHARE AND
A GROWING LOCAL MARKET. CAPACITY OF THE LAMBERTS BAY FACILITY WAS INCREASED BY
50% DURING THE YEAR TO COPE WITH ADDITIONAL DEMAND.
EXPORTS OF LOBSTER, ABALONE, SQUID, HAKE AND TUNA ALL BENEFITED FROM IMPROVED
PRICES IN INTERNATIONAL MARKETS AND A FAVOURABLE RAND/DOLLAR EXCHANGE RATE.
OCCUPANCY LEVELS AT THE COMMERCIAL COLD STORAGE FACILITIES IMPROVED IN THE
SECOND HALF AFTER A SLOW START TO THE YEAR.
BUNKER SERVICES CONTINUED TO PERFORM WELL BUT TRT SHIPPING WAS ADVERSELY
IMPACTED BY REDUCED EXPORT VOLUMES IN THE CLEARING AND FORWARDING OPERATION.
PROSPECTS
LUCKY STAR IS EXPECTED TO MAINTAIN ITS SHARE OF THE LOCAL MARKET AND FURTHER
GROWTH IN EXPORTS IS FORECAST. IN ADDITION, A NUMBER OF NEW PRODUCT LAUNCHES
UNDER THE LUCKY STAR BRAND ARE PLANNED DURING THE COMING YEAR.
ERONGO'S RECENT INVESTMENTS IN THE NAMIBIAN HORSE MACKEREL AND HAKE INDUSTRIES
ARE EXPECTED TO YIELD INCREASED PROFITS.
EXPORT MARKETS IN THE FAR EAST, WESTERN EUROPE AND THE USA ARE EXPECTED TO
REMAIN POSITIVE WHICH SHOULD CONTINUE TO BENEFIT THE ABALONE, LOBSTER, TUNA AND
SQUID OPERATIONS.
THE BLUE CONTINENT GROUP IS ALSO EXPECTED TO BENEFIT FROM ITS ENHANCED FISHING
CAPABILITIES IN THE SOUTH AFRICAN HAKE AND TUNA INDUSTRIES.
OVERALL, THE GROUP ANTICIPATES REAL GROWTH IN OPERATING PROFIT AND HEADLINE
EARNINGS IN THE YEAR AHEAD.
ON BEHALF OF THE BOARD.
DMJ NCUBE AB MARSHALL
CHAIRMAN MANAGING DIRECTOR
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