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Further Cautionary Cullinan Holdings Limited (Registration number 1902/001808/06) Shade: CUL ISIN number: ZAE000013710 Group income statement
Audited Audited
Year ended year ended
30 September 30 September
2001 2000
R'000 R'000
Turnover 428 321 517 181 Operating income/(loss)
- Continuing operations 14 928 9 825
- Discontinued operations (10 583) (18 253)
Exceptional items (2 932) 5 583
Net operating income/(loss) 1 413 (2 845)
Net financing charges (7 657) (7 015)
Income/(Loss) before taxation (6 244) (9 860)
Taxation (431) 1 042
Net income/(loss) after taxation (6 675) (8 818)
Outside shareholders' interest (427) 2 025
Net attributable income/(loss) (7 102) (6 793)
Ordinary shares in issue (000's) 684 638 734 638
Income per ordinary share (cents) (1,0) (0,9) Headline income
per ordinary share (cents) (1,5) (1,7) Determination of headline earnings
Net attributable income (7 102) (6 793) Profit on sale of
subsidiaries, plant and equipment 1 548 6 813 Reconstruction, reorganisation
and other expenses (4 480) (12 396)
Headline income/(loss) (10 034) (12 376)
Note: The comparative figures have been changed to accommodate the current classification of continuing operations. Group statement of changes in equity
Audited Audited
year ended year ended
30 September 30 September
2001 2000
R'000 R'000 Ordinary share capital
Balance at beginning of year 7 346 7 346
Less: Specific repurchase of shares 500 -
Balance at end of year 6 846 7 346 Share premium
Balance at beginning of year 60 865 60 865
Less: Specific repurchase of shares 2 000 -
Balance at end of year 58 865 60 865 Revaluation reserve
Balance at beginning and end of year 232 232 Share capital reduction reserve fund
Balance at beginning and end of year 20 876 20 876 Capital redemption reserve fund
Balance at beginning and end of year 4 4 Accumulated loss
Balance at beginning of year (49 434) (42 641) Attributable income/(loss)
for the year (7 102) (6 793)
Balance at end of year (56 536) (49 434)
Ordinary shareholders' equity 30 287 39 889 Group balance sheet
Audited Audited
year ended year ended
30 September 30 September
2001 2000
R'000 R'000 Assets
Fixed assets 53 808 56 998
Goodwill 11 219 10 400
Deferred taxation 3 000 3 000
Current assets 256 499 341 755
- Inventories 68 412 99 961
- Accounts receivable 117 898 128 953
- Cash resources 70 189 112 841
Total assets 324 526 412 153 Equity and liabilities
Ordinary shareholders' equity 30 287 39 889
Outside shareholders' interest 11 720 7 386
Interest bearing term loans 39 814 60 581
- Preference share capital 26 046 46 046
- Long-term loans 8 393 11 805
- Short-term loans 5 375 2 730
Current liabilities 242 705 304 297
- Accounts payable 147 331 188 161
- Bank overdrafts 95 374 116 136
Total equity and liabilities 324 526 412 153 Financial statistics
Gearing 1,54:1 1,35:1
Current ratio 1:1 1,1:1
Net asset value per share (cents) 4,4 5,4 Group consolidated cash flow statement
Audited Audited
year ended year ended
30 September 30 September
2001 2000
R'000 R'000 Cash flow from operating activities
Cash received from customers 439 376 354 188
Cash paid to suppliers and employees (428 549) (337 747)
Cash generated by operations 10 827 16 441
Net interest (paid)/received (4 523) (2 282)
Taxation (paid)/received (431) 76
Dividends paid (3 134) (3 462)
Cash generated from operations 2 739 10 773 Cash flow from investing Activities Additions to property, plant
and equipment (14 425) (20 224)
Subsidiaries disposed of 3 739 (665)
Businesses acquired - (5 367) Proceeds on disposal of
property, plant and equipment 6 115 7 945 Proceeds on reduction of investment
in subsidiary 3 907 6 045
Cash utilised in operations (664) (12 266) Cash flow from financing activities
Ordinary share capital repurchased (2 500) -
Preference share capital redeemed (20 000) -
Changes in long-term loans (4 110) 3 393
Changes in short-term loans 2 645 -
Outside shareholders' funding - 7 091 Cash (utilised in)/generated
from operations (23 965) 10 484 Net movement in cash and
cash equivalents (21 890) 8 991 Cash and cash equivalents
at beginning of year (3 295) (12 286) Cash and cash equivalents
at end of year (25 185) (3 295) ACCOUNTING POLICIES
The accounting policies used in the preparation of these financial
statements financial statements are consistent with those applied in previous years. Comments
The results for the year continue to reflect a combination of an expanding and profitable Tourism and Travel group with negative results from the Outdoor Lifestyle division.
A summary of the results is as follows (note that the Outdoor Lifestyle businesses are disclosed as discontinued operations following the decision to sell off these businesses at an opportune time): OPERATING Income/Loss Divisional results
R'000 Continuing Discontinued
operations operations Tourism & Travel 15 100 -
Outdoor Lifestyle - (10 425)
Corporate/Other (172) (158)
Total 14 928 (10 583) DIVISIONAL COMMENTARY Tourism & Travel Wholesale Inbound
Thompsons Inbound produced another set of excellent results this year with turnover and profits improving from all of our markets. The weak currency and our consistent product quality continues to create a strong interest among our growing worldwide customer base. Since year-end, traffic from Japan and to a lesser extent the USA has been negatively affected by the tragic events in the USA in September. All other markets, led by Europe and the UK, have grown significantly, which more than compensates for this downturn. Wholesale Outbound
Outbound has had another good year. The weak currency continues to change our product mix, with holidays in domestic and regional destinations being substituted for the now substantially more expensive trips to the northern hemisphere. Our product range continues to reflect these changes with sales and profits remaining good.
Retail - Pentravel, Thompsons Travel and Richard Bailey
An excellent performance by Richard Bailey helped the Retail group to improve results on the previous year. Cullinan Business Systems
The substantial ongoing investment in ITsystems and our website is starting to pay dividends. Our internal operating systems are currently being
overhauled which will improve productivity. The new software being installed will enable us to grow turnover in both the wholesale and retail divisions on a cost-effective basis. DISCONTINUED OPERATIONS Cadac
The operating and exceptional losses incurred in this division have
continued as a result of operational issues and the high costs of
rationalising the business. Significant progress has, however, been made on these issues. Karrimor International Limited (KIL)
KIL traded at a small profit after interest for the year.
In June 2001 an agreement was reached between the shareholders of KIL and a new investor, Garmont, in terms of which 4 208 754 new shares in KIL were issued and 1 352 375 Cullinan UKshares were sold. The result of this
agreement is to leave Cullinan UKas a 53% shareholder in KIL and Cullinan with an effective 44% holding in KIL. Other
The sale and closure of the Afmit and Midmacor businesses has virtually been completed. These businesses will not impact materially on the Group's performance in the future.
The two industrial properties owned by the Group in Vereeniging were sold for R2,3 million during the year. FURTHER CAUTIONARY/GROUP RESTRUCTURE
We refer to our previous cautionary announcement dated 21 November 2001, and advise that the strategy to focus the business of Cullinan on Tourism and Travel remains unchanged. Negotiations to sell off the Outdoor Lifestyle interests continue although these negotiations have been more protracted than anticipated. Attempts to achieve this objective have been complicated by the September 11 events in the USA.
These negotiations, if successfully concluded, may have an effect on the price of Cullinan shares. Shareholders are accordingly advised to continue exercising caution when dealing with their shares until a further announcement is made EXCEPTIONAL ITEMS The major items are made up of:
Continuing Discontinued
R'000 operations operations Total Profit on disposal of
portion of investment - 2 568 2 568
Restructuring costs (305) (5 338) (5 643)
Amortisation of goodwill (657) - (657) Foreign exchange
translation profits - 778 778 Loss on sale
of properties - (1 498) (1 498) Exceptional IT
development costs (2 788) - (2 788) Recoupment of VAT
overpaid 6 553 - 6 553
Other (2 066) (179) (2 245)
737 (3 669) (2 932) BALANCE SHEET
The Group gearing has deteriorated because of an increase in borrowings at KIL. Local borrowing levels remained unchanged. The positive cash flows from the disposal of businesses was absorbed by the repayment of preference shares and the final payments to the Thompsons vendors. On behalf of the board SJ Nash QA Southey Executive Chairman Financial Director 14 December 2001
Directors: SJ Nash (Executive Chairman), QA Southey (Financial Director), AA Thompson, AP van der Merwe
Registered office Transfer secretaries
1st Floor, Sable Place Mercantile Registrars Limited
Fairway Office Park 8th Floor, 11 Diagonal Street
52 Grosvenor Road Johannesburg, 2001
Bryanston, 2021 (PO Box 1053, Johannesburg, 2000)
For further information on group activities, please write to: The Group Secretary, Cullinan Holdings Limited PO Box 2412, Cramerview, 2060 Broker
