Sharenet Sites 
Sharenet Sites
SNV - Santova - Interim results for the twelve months ended 31 December 2006 Santova Logistics Ltd (formerly Spectrum Shipping Ltd) (Registration number: 1998/018118/06) (Share code: SNV & ISIN number: ZAE000090650) INTERIM RESULTS FOT THE TWELVE MONTHS ENDED 31 DECEMBER 2006 INCOME STATEMENT REVIEWED AUDITED
Twelve months Twelve months ended ended 31 Dec 2006 31 Dec 2005 Group Group
R`000 R`000 Turnover 86 420 31 009 Gross billings 1 113 484 552 436 Cost of billings (1 027 064) (521 427) Operating income 14 341 6 629 Depreciation (1 376) (927) Net finance costs (7 221) (3 532) Profit before taxation 5 744 2 170 Income tax expense (1 977) (787) Profit for the period 3 767 1 383 Attributable to: Equity holders of the parent 3 761 1 383 Minority interest 6 - Shares in issue (000`s) 1 057 000 849 000 Earnings per share (cents) 0,42 0,16 Headline earnings per share (cents) 0,41 0,16 Diluted earnings per share (cents) 0,39 0,15 Reconciliation between earnings and headline earnings Profit attributable to ordinary shareholders 3 761 1 383 Profit on sale of fixed assets (25) (54) Taxation effects 7 16 Headline earnings 3 743 1 345 BALANCE SHEET REVIEWED AUDITED Twelve months Twelve months ended ended
31 Dec 2006 31 Dec 2005 Group Group R`000 R`000 ASSETS Non-current assets 54 752 5 724 Plant and equipment 9 120 1 759 Goodwill 38 605 265 Loans receivable 4 549 1 022 Deferred taxation 2 478 2 678 Current assets 340 194 145 369 Trade and other receivables 325 819 125 219 Other current assets 29 - Financial assets 170 - Cash and cash equivalents 14 176 20 150 Total assets 394 946 151 093 EQUITY AND LIABILITIES Total equity 62 540 31 039 Share capital and premium 135 415 107 691 Accumulated loss (72 891) (76 652) Attributable to equity holders of the company 62 524 31 039 Minority interest 16 - Non-current liabilities 2 139 - Long-term borrowings 1 886 - Deferred taxation 253 - Current liabilities 330 267 120 054 Trade and other payables 138 653 36 468 Short-term borrowings and overdraft 181 589 80 916 Current tax payable 1 810 - Provisions 8 215 2 670 Total equity and liabilities 394 946 151 093 CASH FLOW STATEMENT REVIEWED AUDITED Twelve months Twelve months ended ended 31 Dec 2006 31 Dec 2005
Group Group R`000 R`000 Cash generated by operations before working capital changes 13 700 6 387 Changes in working capital (13 717) (23 100) Cash utilised in operating activities (17) (16 713) Net finance costs (7 221) (3 532) Net cash flows from operating activities (7 238) (20 245) Cash outflows on investing activities (3 585) (598) Cash outflows on acquisition of subsidiaries (65 098) - Cash flows from financing activities (30 726) (1 151) Net decrease in cash and cash equivalents (106 647) (21 994) Cash and cash equivalents at the beginning of the period (60 766) (38 772) Cash and cash equivalents at the end of the period (167 413) (60 766) STATEMENT OF CHANGES IN EQUITY Attributable to equity holders of the parent Share Share Accumulated capital premium loss Total R`000 R`000 R`000 R`000
Balance at 01 January 2006 brought forward 849 106 842 (76 652) 31 039 Issue of shares 223 28 445 - 28 668 Minority interest acquired - - - - Profit for the period - - 3 761 3 761 Treasury shares (15) (929) - (944) Balance at 31 December 2006 1 057 134 358 (72 891) 62 524 Minority Total
Interest equity R`000 R`000 Balance at 01 January 2006 brought forward - 31 039 Issue of shares - 28 668 Minority interest acquired 10 10 Profit for the period 6 3 767 Treasury shares - (944) Balance at 31 December 2006 16 62 540 COMMENTARY OPERATIONAL REVIEW The performance of the Group over the twelve month period ending 31 December 2006 has been encouraging, particularly that of the last quarter which incorporated the newly acquired business of Impson Logistics (Pty) Limited (formerly Impson Freight (Pty) Limited). Whilst this performance was largely driven by organic growth and acquisition, the integration of the capabilities, skills and experience of Impson has, as anticipated, resulted in improved stability and profitability. With the combined `bulked` volume of goods now managed in terms of supply chain logistics, improved economies of scale, together with innovative e- systems and procedures, have enhanced earnings and this trend is expected to continue. Whilst re-engineered organisational structures capitalising on the core competencies and synergies of both companies is not yet complete, the Group has already benefited from these initiatives to a limited extent and, once fully operational, they will enhance the quality of earnings even further. As mentioned in the commentary for the period ending 30 June 2006, the integration of the businesses of Spectrum and Impson has been the focus of the Group for the last quarter. Whilst all regions, with the exception of KwaZulu- Natal, have been successfully merged, the two Durban based businesses will only be integrated once the move to the new premises takes effect on 26 March 2007. FINANCIAL REVIEW The results for the 12 months ended 31 December 2006 are decidedly stronger than those for the same period last year as a result of strong trade throughout the Group. In terms of IFRS 3, the results of the two newly acquired subsidiaries have been consolidated only from the date that all the suspensive conditions contained in the sale agreements were met. This represents four and three months` trade respectively from Impson Logistics (Pty) Limited and Leading Edge Insurance Brokers (Pty) Limited. The Group EPS has improved from 0,16 cents to 0,42 cents, an increase of 163% using a weighted average number of shares in issue of 907 513 667. This is supported by a sizable increase in turnover of 179%. Cashflow has been kept well under control, with improved credit vetting and collections throughout the Group. The cash and cash equivalents increase in borrowings of the Group have improved in relation to the increase in gross billings. The Group`s borrowing facilities are well within their limits. The net effect on the Group balance sheet has been an increase of total equity by 101%. Shareholders are reminded that the financial year-end of the Group has been changed from December to February and that the February 2007 financial results will reflect 14 months` trade. Shareholders are also reminded that January and February are seasonally low months for the retail logistics industry. ACCOUNTING POLICIES The condensed interim financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS). CHANGE OF NAME At the general meeting held on 26 January 2007 shareholders approved the change of name of the company from Spectrum Shipping Limited to Santova Logistics Limited. The special resolution was registered by Cipro on 31 January 2007. DIVIDENDS In line with the company`s policy, no interim dividend has been declared. For and on behalf of the board S Zulu G H Gerber Chairman Chief Executive Officer 23 February 2007 REGISTERED OFFICE AND POSTAL ADDRESS 88 Point Road, Durban. PO Box 6148, Durban, 4000 TRANSFER SECRETARIES Computershare Investor Services 2004 (Pty) Limited, 70 Marshall Street, Marshalltown, 2107 AUDITORS Marwick & Company Inc. DESIGNATED ADVISOR River Group EXECUTIVE DIRECTORS S J Chisholm (FD), S Donner, G H Gerber (CEO), M F Impson, TR Mezher, R Singh NON-EXECUTIVE DIRECTORS S Zulu (Chairman), M Tembe COMPANY SECRETARY J A Lupton, ACIS A review report is available for inspection at the company`s registered office. www.santova.com Date: 23/02/2007 08:10:01 Supplied by www.sharenet.co.za Produced by the JSE SENS Department.
