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CUL - Cullinan Holdings - Reviewed Results For The Year Ended 30 September 2007
CULLINAN HOLDINGS LIMITED
(Registration number 1902/001808/06)
(Share code: CUL & ISIN: ZAE000013710)
("the company" or "the group")
REVIEWED RESULTS FOR THE YEAR ENDED 30 SEPTEMBER 2007
Results
- Attributable earnings per share up 15%
- Headline earnings per share up 21%
Cullinan is a holding company that invests in travel and travel related
businesses. Most of its current investments are in Southern Africa where it has
interests in inbound and outbound tour operating, destination management
activities, retail travel agencies, coach charter, escorted tours, open vehicle
game drives and sightseeing.
Consolidated balance sheet
Reviewed Audited
as at as at
30 September 30 September
2007 2006
R`000 R`000
Assets
Non-current assets 117 363 102 914
Property, plant and equipment 63 876 50 721
Investment properties 331 331
Goodwill 23 721 23 802
Intangible assets 25 529 24 287
Investment in associate companies 876 200
Deferred taxation 3 030 3 573
Current assets 255 759 211 100
- Inventories 10 008 11 042
- Accounts receivable 123 052 75 232
- Taxation 531 -
- Cash resources 122 168 124 826
Total assets 373 122 314 014
Equity and liabilities
Ordinary shareholders` equity 86 180 71 188
Preference shareholders` equity 1 046 1 046
Outside shareholders` interest 5 3
Total shareholders` equity 87 231 72 237
Non-current liability 50 385 37 071
- Deferred tax liability 1 729 1 241
- Long-term loans 43 061 33 116
- Operating lease provision 5 595 2 714
Current liabilities 235 506 204 706
- Short-term loans 1 954 3 198
- Operating lease provision 204 20
- Accounts payable 225 067 193 853
- Taxation 8 267 7 621
- Preference dividends 14 14
Total equity and liabilities 373 122 314 014
Consolidated income statement
Reviewed Audited
year ended year ended
30 September 30 September
2007 2006
R`000 R`000
Revenue 353 710 269 076
Net operating expenses 325 651 (243 872)
Operating income before exceptional 28 059 25 204
items
Exceptional items - (1 629)
Operating income 28 059 23 575
Finance income 4 349 4 725
Finance expenses (408) (71)
Preference dividends paid (55) (54)
Profit before taxation 31 945 28 169
Tax expense (10 026) (9 191)
Profit for year 21 919 18 978
Profit attributable to equity holders of 21 917 18 975
the company
Profit attributable to outside 2 3
shareholders` interest
Attributable earnings per share (cents) 3,05 2,64
Diluted earnings per share (cents) 3,05 2,64
Headline earnings per share (cents) 3,19 2,64
Diluted headline earnings per share 3,19 2,64
(cents)
Ordinary shares (`000)
- In issue 718 355 718 272
- Weighted average 718 355 718 272
Determination of headline earnings
Reconciliation between attributable
earnings and headline earnings
Earnings attributable to ordinary 21 917 18 975
shareholders
(Profits)/losses on disposal of 1 406 (93)
property, plant and equipment
Total tax effect of the adjustment (408) 27
Total minority interest of the - -
adjustment
Headline earnings 22 915 18 909
Consolidated statement of changes in equity
Reviewed Audited
year ended year ended
30 September 30 September
2007 2006
R`000 R`000
Ordinary share capital
Balance at beginning of year 7 183 7 182
Issued during year 1 1
Balance at end of year 7 184 7 183
Share premium
Balance at beginning of year 59 902 59 900
Premium on issue of shares 3 2
Balance at end of year 59 905 59 902
Share capital reduction reserve fund
Balance at beginning of year 20 876 20 876
Balance at end of year 20 876 20 876
Capital redemption reserve fund
Balance at beginning of year 4 4
Balance at end of year 4 4
Foreign currency translation reserve
Balance at beginning of year (1 318) 55
Reserve on translation of foreign 255 (1 373)
subsidiary
Balance at end of year (1 063) (1 318)
Accumulated loss
Balance at beginning of year (15 459) (27 251)
Attributable income for year 21 917 18 975
Ordinary dividend paid (7 184) (7 183)
Balance at end of year (726) (15 459)
Ordinary shareholders` equity 86 180 71 188
Summarised consolidated cash flow statement
Reviewed Audited
year ended year ended
30 September 30 September
2007 2006
R`000 R`000
Cash flows from operating activities
Operating income 28 059 23 575
Depreciation 15 267 7 322
Other non-cash items 4 810 (1 799)
Changes in working capital (15 572) 17 562
Cash generated from operating activities 32 564 46 660
Net finance income 3 941 4 648
Preference dividends paid (55) (55)
Ordinary dividends paid (7 184) (7 183)
Normal taxation paid (7 974) (800)
Secondary Taxation on Companies (905) (907)
Net cash inflow/(outflow) from operating 20 387 42 363
activities
Cash flow from investing activities
Additions to property, plant and (27 234) (19 221)
equipment
Additions to intangible assets (4 701) (3 712)
Acquisition of subsidiary - (30 969)
Proceeds on disposal of property, plant 861 281
and equipment
Investment in associate companies (676) 150
Net cash inflow/(outflow) from investing (31 750) (53 471)
activities
Cash flow from financing activities
Ordinary share capital issued 4 3
Long-term loans raised 9 945 32 384
Short-term loans raised/(repaid) (1 244) 1 757
Net cash inflow/(outflow) from financing 8 705 34 144
activities
Net (decrease)/increase in cash and cash (2 658) 23 036
equivalents
Cash and cash equivalents at beginning 124 826 101 790
of year
Cash and cash equivalents at end of year 122 168 124 826
Notes
1. Accounting policies
These reviewed results have been prepared in compliance with IAS 34 Interim
Financial Reporting.
The accounting policies and method of computation used in the preparation of the
annual financial statements for the year ended 30 September 2007 are the same as
those used in the audited results for the financial year ended 30 September
2006.
The annual financial statements comply with International Financial Reporting
Standards and the requirements of the Companies Act, 1973 (Act 61 of 1973), as
amended.
2. JSE Limited ("JSE")
The directors of the company ensured compliance with the JSE Listings
Requirements during the year under review.
3. Exceptional items
12 months 12 months
2007 2006
R`000 R`000
Acquisition costs - (1 629)
- (1 629)
4. Segmental reporting
30 September 2007
Travel and Yachting and
Tourism Diving Total
R`000 R`000 R`000
Revenue 325 898 27 812 353 710
Operating profit/loss
Result 27 661 398 28 059
Other information
Assets 357 358 11 858 369 216
Liabilities 280 789 5 102 285 891
Capital expenditure
- Property, plant and equipment 26 978 256 27 234
- Intangible assets 4 701 - 4 701
Depreciation 15 053 214 15 267
30 September 2006
Revenue 245 552 23 524 269 076
Operating profit/loss
Result 25 522 (318) 25 204
Other information
Assets 298 184 12 057 310 241
Liabilities 236 936 4 841 241 777
Capital expenditure
- Property, plant and equipment 19 058 163 19 221
- Intangible assets 3 706 6 3 712
Depreciation 7 103 219 7 322
CHIEF EXECUTIVE OFFICER`S REPORT
OVERVIEW
The past year has continued the historical growth trend in most of the business
operations.
The group results are summarised as follows:
- Headline earnings per share improved by 21%
- Attributable earnings per share improved by 15%
- Operating cash flows remained strong
This year was characterised by good growth in the Inbound division and the
Outbound division showing a weak first six months and then improving
satisfactorily. Hylton Ross Tours performed above expectations and Pentravel
opened several new travel outlets which reduced its current year profitability.
REVIEW OF OPERATIONS
Thompsons Tours (the Outbound division)
The Outbound division is a wholesale supplier of travel related products and
holidays to the South African market. The domestic travel market has continued
to be affected by the volatile Rand, the growth of low cost carriers, the
National Credit Act and the change in buying patterns.
We have continued to focus on improving; the buying of products, the
availability of inventory and on service. This has enabled this division to
improve in the latter part of the year. Substantial additional IT and related
costs have been necessary to align the business to the changing buying
behaviours of travellers.
Thompsons Africa (the Inbound division)
The Inbound division is a tour wholesaler and destination marketing organisation
that sells Africa to the rest of the world. Turnover is influenced by the
relative strength of the South African Rand, the available air lift into South
Africa, the extensive relationships with the international tour operators and
service excellence. The Rand has been weaker for most of the year and has helped
improve turnover and margins. Despite this the division has continued to focus
on improving service and had a good year showing substantial growth out of both
the Far East and the USA which has resulted in record turnover and profits.
Thompsons Africa Touring and Safaris
The touring division provides tourism products for the Incoming division. These
include escorted tours, general sightseeing and open vehicle game drives in the
National Parks which are offered throughout Southern Africa. Turnover and
profits have improved significantly with the introduction of new touring
products this year.
Thompsons Travel
Thompsons Travel is a retail travel agency with offices in Johannesburg, Cape
Town and Durban. Both the Corporate and Leisure divisions showed a satisfactory
improvement in profitability this year.
Pentravel
Pentravel is a chain of 23 retail travel outlets located in the major shopping
malls throughout South Africa. During the year it opened several new outlets
which require a ramp-up period to attain full performance and profitability. In
addition, Pentravel invested substantially during the year in overall staff
development and training. This will ensure Pentravel is well placed for
continued growth and profitability in the future.
Hylton Ross Tours
Hylton Ross Tours operates coaches and vehicles for hire and charter in the
domestic travel market and also provides day tours in and around the Western
Cape and the Garden Route. It is a well known brand in the travel market and
enjoys a substantial market share in the Western Cape. The coach charter market
remained firm throughout the year and the company continued to grow turnover and
profitability. The group`s current year results include Hylton Ross Tours
profits for a full year for the first time.
The company embarked on a major vehicle replacement and expansion programme
during the year. This investment will ensure that it is well placed to continue
its growth and profitability in the future.
Thompsons Gateway
Gateway, a sales office in Singapore, had a good year showing improved turnover
and profits. Profits were also positively influenced by the weaker South African
Rand.
Planet Africa
Planet Africa is a joint venture operation formed to sell and market Southern
Africa to Far East tourists. It has had a record year in turnover and profits.
Manex
Manex is a supplier to the yacht building industry. As a result of the general
global yachting market improvement experienced by the Cape Town based yacht
builders, Manex had a better year in turnover and profitability.
Prospects
The advent of 2010 has had a positive effect on Inbound tourist traffic. It is
envisaged that this should continue in the coming year and should have a
positive effect on the Inbound division, its Touring and Safari operations and
Hylton Ross Tours.
The continued focus to improve the IT platforms and service in the Outbound
division should continue to improve its growth and profitability. However, the
South African leisure travel market may be further impacted by the recent
introduction of the National Credit Act and increasing interest rates.
All the businesses are impacted by the volatility of the Rand and it remains an
ongoing difficult challenge for management.
AN Viljoen M Ness
Chief Executive Officer Chairman 10 December 2007
Directors
MA Ness (Chairman)*#, VET O`Hana #, DD Hosking **#, M Tollman ***#,
AN Viljoen, LA Pampallis Company Secretary: QA Southey
* British ** New Zealand *** USA # Non-Executive
Registered office
6 Hood Avenue, Rosebank, 2196
Transfer secretaries
Computershare Investor Services 2004 (Pty) Limited, Ground Floor,
70 Marshall Street, Johannesburg, 2001 (PO Box 61051, Marshalltown, 2107)
For further information on group activities, please write to:
The Group Secretary, Cullinan Holdings Limited, PO Box 41032, Craighall, 2024
Auditors
BDO Spencer Steward (Jhb) Inc. will continue to act as auditors to the company.
An unqualified audit review report is available for inspection. The audited
annual financial statements will be mailed to shareholders in January 2007.
Sponsor
Arcay Moela Sponsors (Proprietary) Limited
(Registration number 2006/033725/07)
Date: 10/12/2007 13:20:01 Supplied by www.sharenet.co.za
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