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Oceana Group Limited
Incorporated in the Republic of South Africa
(Registration Number 1939/001730/06)
JSE Code: OCE
ISIN Code: ZAE000025284
INTERIM REPORT AND
DIVIDEND DECLARATION
FOR THE SIX MONTHS ENDED
31 MARCH 2002
The audited results for the six months ended 31 March 2002 are set out
herein.
This report has been prepared in compliance with South African Statements of
Generally Accepted Accounting Practice and, except as disclosed in note 2,
in accordance with the principles applied in the most recently published
annual financial statements.
GROUP INCOME STATEMENT Unaudited Audited
Six months ended Year ended
31 March 30 Sept
Notes 2002 2001 Change 2001
R'000 R'000 % R'000
Revenue 1,450,724 1,005,467 44 2,084,523
Operating profit 118,359 95,004 25 205,429
Dividends received 48 6 206
Net interest received 11,432 3,465 10,036
Profit before taxation
and abnormal items 129,839 98,475 32 215,671
Abnormal items 1 1,252 2,067 2,054
Profit before taxation 131,091 100,542 217,725
Taxation 44,611 35,027 27 76,008
Profit after taxation 86,480 65,515 141,717
Attributable to outside
shareholders in subsidiaries 5,329 1,208 3,365
Attributable to own
shareholders 81,151 64,307 26 138,352
Number of shares in
issue (000's) 106,635 104,677 106,055
Weighted average no of shares
on which headline earnings and
net profit per share are
based (000's) 106,434 104,638 105,137
Headline earnings per
share (cents) 75.1 59.1 27 127.2
Diluted headline earnings per
Share (cents) 72.3 57.2 26 123.5
Net profit per share (cents) 76.2 61.5 24 131.6
Dividends per share (cents) 16.5 13.0 27 53.4
DETERMINATION OF HEADLINE EARNINGS
Attributable to own shareholders 81,151 64,307 138,352
Adjusted for:
- Amortisation of goodwill 232 77 310
- Profit on change of interest
in investment (838) (416) (416)
- Profit on disposal of fixed
assets (613) (2,159) (4,518)
Headline earnings for
the period 79,932 61,809 29 133,728
DIVIDEND DECLARATION
Notice is hereby given that an interim dividend No. 117 of 16.5 cents per
share, in respect of the year ending 30 September 2002 was declared on 09
May 2002, payable on Monday 08 July 2002. The last day to trade cum divided
will be Friday 28 June 2002. The shares will commence trading ex dividend
from Monday 01 July 2002 and the record date is Friday 05 July 2002.
Share certificates may not be dematerialised or rematerialised between
Monday 24 June 2002 and Friday 5 July 2002, both dates inclusive.
By order of the board
J D Cole Secretary
9 May 2002
Registered Office: 16th Floor, Metlife Centre, 7 Coen Steytler Avenue, Cape
Town 8001
Transfer Secretaries :
Computershare Services Limited
11 Diagonal Street, Johannesburg 2001
(PO Box 1053, Johannesburg 2000)
STATEMENT OF CHANGES IN EQUITY
Notes Share Non TOTAL
Capital Distribut- Distribut- R'000
& able able
Premium Reserves Reserves
R'000 R'000 R'000
Period 1 October
2001 to 31 March
2002
Balance at the 2 23,712 21,041 474,506 519,259
beginning of the
period as restated
Shares issued 2,302 0 0 2,302
Movement on foreign 0 25,448 0 25,448
currency translation
reserve
Net profit for the 0 0 81,151 81,151
period
Dividends 0 0 (42,882) (42,882)
Balance at the end 26,014 46,489 512,775 585,278
of the period
Period 1 October
2000 to 31 March
2001
Balance at the
beginning of the 16,795 13,929 349,989 380,713
period
Reversal of dividend
provision 2 0 0 35,501 35,501
Restated balance at
the beginning of the 16,795 13,929 385,490 416,214
period
Shares issued 1,042 0 0 1,042
Movement on foreign 0 796 0 796
currency translation
reserve
Net profit for the 0 0 64,307 64,307
period
Dividends 0 0 (35,573) (35,573)
Balance at the end 17,837 14,725 414,224 446,786
of the period
Period 1 October
2000 to 30 September
2001
Balance at the 16,795 13,929 349,989 380,713
beginning of the
year
Reversal of dividend 2 0 0 35,501 35,501
provision
Restated balance at 16,795 13,929 385,490 416,214
the beginning of the
year
Shares issued 6,917 0 0 6,917
Movement on foreign 0 7,112 0 7,112
currency translation
reserve
Net profit for the 0 0 138,352 138,352
year
Dividends 0 0 (49,336) (49,336)
Balance at the end 23,712 21,041 474,506 519,259
of the year
GROUP BALANCE SHEET
Unaudited Audited
31 March 30 Sept
Notes 2002 2001 2001
R'000 R'000 R'000
Assets
Non current assets 255,757 256,538 246,040
Property, plant and equipment 195,448 206,652 194,758
Goodwill 2,565 3,030 2,797
Fishing Rights 31,951 23,820 24,653
Deferred taxation 19,326 16,004 16,254
Investments and loans 3 6,467 7,032 7,578
Current assets 763,448 581,314 711,210
Inventories 134,985 129,551 130,179
Accounts receivable 490,820 403,801 438,264
Cash and cash equivalents 137,643 47,962 142,767
Total assets 1,019,205 837,852 957,250
Equity and liabilities
Capital and reserves 597,473 454,580 527,093
Share capital and premium 26,014 17,837 23,712
Non-distributable reserves 46,489 14,725 21,041
Retained income 2 512,775 414,224 474,506
Interest of outside
shareholders 12,195 7,794 7,834
Non-current liabilities 8,134 10,889 10,447
Long-term borrowings 0 6,988 0
Deferred taxation 8,134 3,901 10,447
Current liabilities 413,598 372,383 419,710
Bank overdraft 11,339 16,919 52,218
Accounts payable, provisions 2 402,259 355,464 367,492
Total equity and liabilities 1,019,205 837,852 957,250
Net asset value per ordinary
share (cents) 549 427 490
Total liabilities: Total
Shareholders'funds (%) 69 83 80
GROUP CASH FLOW STATEMENT
Unaudited Audited
Six months ended Year ended
31 March 30 Sept
2002 2001 2001
R'000 R'000 R'000
Cash flows from operating activities
Operating profit 118,359 95,004 205,429
Adjustment for non cash items 19,089 14,682 33,107
Operating profit before working
capital changes 137,448 109,686 238,536
Working capital changes (12,690) (30,231) (63,069)
Cash generated from operations 124,758 79,455 175,467
Interest and dividends received 14,193 7,709 20,465
Interest paid (2,713) (4,238) (10,223)
Taxation paid (41,845) (26,429) (52,033)
Dividends paid (45,870) (35,573) (49,881)
Net cash inflow from
operating activities 48,523 20,924 83,795
Cash outflow from investing
activities (18,165) (72,401) (79,366)
Net cash inflow/(outflow)
before financing activities 30,358 (51,477) 4,429
Net cash flows from financing
activities 2,303 733 6,917
Net increase/(decrease)in
cash and cash equivalents 32,661 (50,744) 11,346
Borrowings resulting from
acquisition of business (6) (1,647) (8,945)
Cash and cash equivalents at the
beginning of the period 90,549 85,350 85,350
Effect of exchange rate changes 3,100 (1,916) 2,798
Cash and cash equivalents at the
end of the period 126,304 31,043 90,549
SEGMENT REPORT
Unaudited Audited
31 March 30 Sept
2002 2001 2001
R'000 R'000 R'000
Revenue
Oceana Brands 392,372 422,442 801,677
Erongo Group 538,846 195,454 436,739
Blue Continent Group 466,647 337,198 737,769
Commercial Cold Storage & Logistics 52,859 50,373 108,338
Total 1,450,724 1,005,467 2,084,523
Operating Profit
Oceana Brands 28,016 37,315 75,814
Erongo Group 23,245 12,739 25,494
Blue Continent Group 53,342 31,314 72,935
Commercial Cold Storage & Logistics 13,756 13,636 31,186
Total 118,359 95,004 205,429
Total assets (excluding deferred tax)
Oceana Brands 237,885 273,047 244,849
Erongo Group 209,081 144,971 175,877
Blue Continent Group 269,509 221,055 241,282
Commercial Cold Storage & Logistics 139,294 127,781 128,643
Financing 144,110 54,994 150,345
Total 999,879 821,848 940,996
Total current liabilities
Oceana Brands 157,469 152,868 158,421
Erongo Group 72,029 47,749 37,187
Blue Continent Group 70,030 68,934 78,811
Commercial Cold Storage & Logistics 95,677 79,326 83,350
Financing 18,393 23,506 61,941
Total 413,598 372,383 419,710
NOTES
Unaudited Audited
31 March 20 Sept
2002 2001 2001
R'000 R'000 R,000
1. Abnormal items
Profit on change of interest 838 416 416
in investment
Net profit on disposal of land 414 1,651 1,638
and buildings
Abnormal profit before taxation 1,252 2,067 2,054
Taxation 0 0 28
Abnormal profit attributable to
own shareholders 1,252 2,067 2,026
2. Change in accounting policies
The company has changed its
accounting policy for providing
for dividends. Dividends are now
recognised only when they have
been declared. Prior period
financial statements have been
restated accordingly.
Presentation of dividends per
share is not affected by this
change in policy
Investment and loans
Directors' valuation of
investments and loans
Unlisted shares 801 801 801
Loans 5,666 6,231 6,777
6,467 7,032 7,578
4. Dividends
Dividend declared after reporting
Date 17,745 13,608 35,501
5. Supplementary Information
Cost of inventories utilised 1,092,146 707,393 1,515,531
Depreciation 17,637 15,071 33,641
Amortisation of goodwill and other
intangibles 1,425 245 1,842
Operating lease charges 3,925 3,645 7,031
Capital expenditure 19,474 60,679 69,065
Expansion 3,690 48,140 45,158
replacement 15,784 12,539 23,907
Capital commitments 51,445 49,312 70,251
contracted 13,678 16,869 8,283
approved 37,767 32,443 61,968
Contingent liabilities 3,533 4,744 2,800
COMMENTS
Financial Results
Headline earnings for the six months ended 31 March 2002 increased by 29%
over those of the first half of the previous year and by 27% on a per share
basis. Group operating profit improved by 25% on a turnover increase of
44%. Net cash balances improved to R126 million.
An interim dividend of 16.5 cents per share has been declared which
represents an increase of 27% over the previous year.
Review of operations
During the period under review medium term rights were announced for all
sectors in the South African fishing industry. The rights are for a period
of four years except in the case of abalone which is a two year right.
The West Coast lobster resource appears to be healthy and catches have been
good. An increased proportion of the catch has been exported in live form
at good realisations.
Midwater pelagic volumes traded out of Mauritania increased turnover
significantly but at lower margins. Namibian and South African horse
mackerel catches were good and markets were stable resulting in a meaningful
contribution by this division.
Hake operations in South Africa performed very well whilst the loss making
Namibian operation was turned around. Hake prices in US dollar terms
remained firm during the period.
Volumes and profitability were lower in abalone due to the lower TAC and
quota.
Blue Continent Products' operations in squid and tuna increased turnover and
profitability.
Canned fish turnover decreased due to low stock levels and poor pilchard
landings at the beginning of the fishing season. The catch rate improved
from March and the company is expecting to land a higher volume to its
cannery than in the previous season.
Fish meal sales volumes were in line with the previous year to date although
at higher prices due to strong demand as a result of the world shortage of
fish meal.
Turnover and market share of the french fries business improved.
Profitability was affected negatively by the shortage and poor quality of
potatoes available during most of the reporting period.
Average occupancy levels at Commercial Cold Storage were at similar levels
to the previous year.
Profitability at TRT Shipping Services improved due to increased bunker
trading and ships agency activity.
Prospects
A recovery in canned fish sales is forecast for the remainder of the year,
based on the continuation of recent good pilchard landings. Fish meal
prices are forecast to remain high and the Group expects to land increased
anchovy volumes this season.
Lobster earnings should remain strong due to firm demand.
Hake prices are expected to remain firm and increased profitability is
forecast in respect of the South African and Namibian operations. A good
contribution is expected from horse mackerel.
Overall the Group expects to achieve a good increase in operating profit and
headline earnings for the full year.
On behalf of the board.
DMJ Ncube AB Marshall
Chairman Managing Director
Directors:
D M J Ncube* (Chairman), R A Williams* (Vice Chairman), A B Marshall
(Managing Director), D F Behrens*, M A Brey*, B P Connellan*, N Dennis*, R M
Kramer, R G Nicol, S Pather*, R V Smither*, R de H Steenkamp, A W S Visagie.
Alts: A L Hobbs, L T Langeni, R A Oktober, G A Rhodes-Harrison
*Non-executive
Company Secretary: J D Cole
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