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CUL/CULP - Cullinan - Abridged audited consolidated results for the year ended
30 September 2010
CULLINAN HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1902/001808/06)
Share Code: CUL ISIN: ZAE000013710
Share Code: CULP ISIN: ZAE000001947
("Cullinan" or "the company")
TOURISM AND LEISURE
ABRIDGED AUDITED CONSOLIDATED RESULTS FOR THE YEAR ENDED 30 SEPTEMBER 2010
GROUP FINANCIAL HIGHLIGHTS
* Headline earnings - up 84%
* Attributable earnings - up 55%
* Cash generated by operations - R68 million
Group condensed statement of financial position
As at As at
30 September 30 September
2010 2009
R`000 R`000
ASSETS
Non-current assets 132,359 122,864
Property, plant and equipment 65,710 52,695
Goodwill 33,601 33,593
Intangible assets 22,720 26,055
Investment properties 3,900 5,000
Investment in associate companies 3,166 3,053
Investment in joint venture 1,983 1,241
Deferred tax asset 1,279 1,227
Current assets 253,602 248,121
Inventories 17,033 16,737
Accounts receivable 136,144 131,392
Other financial asset - 754
Taxation 2,156 2,708
Cash resources 98,269 96,530
Non-current assets held for sale 4,000 6,551
Total assets 389,961 377,536
EQUITY AND LIABILITIES
Ordinary shareholders` equity 138,704 111,520
Preference shareholders` equity 546 546
Non-controlling interest 1 5
Total shareholders` equity 139,251 112,071
Non-current liabilities 15,538 46,967
Deferred tax liability 3,603 3,067
Long term loans - 33,132
Operating lease accrual 11,435 10,268
Preference shares 500 500
Current liabilities 235,172 218,498
Short-term portion of long term loans - 4,040
Operating lease accrual 23 215
Accounts payable 225,817 206,435
Other financial liabilities 1,801 -
Taxation 1,055 1,121
Preference dividends 14 41
Provisions 6,462 6,646
Total equity and liabilities 389,961 377,536
Group condensed statement of comprehensive income
Year ended Year ended
30 September 30 September
2010 2009
R`000 R`000
Revenue 405,069 406,509
Turnover 401,069 403,949
Net operating expenses (367,729) (381,383)
Operating profit 33,340 22,566
Finance income 4,000 2,560
Finance expenses (56) (417)
Preference dividends paid (55) (55)
Share of (loss) / profit of associates 330 (771)
Share of profit of joint venture 742 183
Profit before taxation 38,301 24,066
Tax expense (10,445) (6,115)
Profit for the year 27,856 17,951
Other comprehensive income:
Exchange differences on translating
foreign operations (10) (150)
Revaluation of land and buildings (600) 864
Total comprehensive income for the year 27,846 17,801
Profit attributable to:
equity holders 27,794 17,951
non-controlling interest 62 -
Total comprehensive income attributable to:
equity holders 27,184 18,665
non-controlling interest 62 -
Earnings per share (cents) 3.87 2.50
Diluted earnings per share (cents) 3.87 2.50
Group condensed statements of changes in equity
Year ended Year ended
30 September 30 September
2010 2009
R`000 R`000
Ordinary share capital
Balance at beginning of year 7,184 7,184
Issued during year - -
Balance at end of year 7,184 7,184
Share premium
Balance at beginning of year 59,905 59,905
Premium on issue of shares - -
Balance at end of year 59,905 59,905
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 (1,573) (1,423)
Reserve on translation of foreign subsidiary (10) (150)
Balance at end of year (1,583) (1,573)
Revaluation reserve
Balance at beginning of year 864 -
Revaluation of land and buildings (600) 864
Balance at end of year 264 864
Accumulated profit / (loss)
Balance at beginning of year 24,260 6,309
Attributable income for year 27,794 17,951
Balance at end of year 52,054 24,260
Ordinary shareholders` equity 138,704 111,520
Non-controlling interest
Balance at beginning of year 5 5
Profit attributable to non-controlling
interest for year 62 -
Dividend paid to non-controlling interest (66) -
Balance at end of year 1 5
Preference shareholders` equity
Balance at beginning of year 500 500
Balance at end of year 500 500
Total comprehensive income
Profit for year 27,856 17,951
- Attributable to equity shareholders 27,794 17,951
- Attributable to non-controlling interest 62 -
Translation of foreign subsidiary (10) (150)
Revaluation of land and buildings (600) 864
27,246 18,665
Group condensed statement of cash flows
Year ended Year ended
30 September 30 September
2010 2009
R`000 R`000
Net cash inflow / (outflow) from
operating activities 62,529 (4,088)
Net cash outflow from
investing activities (23,618) (27,667)
Net cash outflow from
financing activities (37,172) (1,884)
Net (decrease) / increase in cash
and cash equivalents 1,739 (33,639)
Cash and cash equivalents
at beginning of the year 96,530 130,169
Cash and cash equivalents
at end of the year 98,269 96,530
Notes
1. Basis of preparation
The abridged audited consolidated results for the year ended 30 September 2010
have been prepared in accordance with IAS 34 Interim Financial Reporting and in
compliance with the South African Companies Act, No 61 of 1973, as amended. The
condensed consolidated results for the year are prepared on the historical cost
basis, with the exception of certain financial instruments and properties which
are measured at fair value. The policies are consistent with those of the
previous annual financial statements with the following exceptions:
IFRS 3: Business combinations
IFRS 7: Financial instruments: Disclosures
IFRS 8: Operating segments
IAS 23: Borrowing costs
IAS 27: Consolidated and separate financial statements
2. Property, plant and equipment
During the year the group purchased property, plant and equipment of R27.068
million (2009: R5.481 million) and disposed of property, plant and equipment
with a book value of R0.623 million (2009: R0.963 million).
3. Notes to the statement of comprehensive income
Year ended Year ended
30 September 30 September
2010 2009
Ordinary shares (`000)
- In issue 718,355 718,355
- Weighted average 718,355 718,355
R`000 R`000
Determination of headline earnings:
Earnings attributable to ordinary shareholders 27,794 17,951
Share of (profit) / loss of associates and
joint venture - 588
Adjustment to fair value on
investment properties (560) (4,411)
Tax effect 78 618
(Profits) / Losses on disposal
of property, plant and equipment (535) (99)
Tax effect 131 (11)
Headline earnings 26,908 14,636
Headline earnings per share (cents) 3.75 2.04
Diluted headline earnings per share (cents) 3.75 2.04
Dividends per share (cents) - -
Net asset value per share (cents) 19.38 15.60
4. Related parties
The Group`s head offices and the Thompsons Johannesburg operation in Rosebank
are leased from Motolla Property Investments (Pty) Limited, an entity to which
one of the group`s shareholders, Travcorp Investments Limited, is a related
party. The registered office and Central Boating premises are also leased from
Motolla Property Investments (Pty) Limited. Rentals paid to Motolla for the year
were market related and amounted to R7.288 million (2009: R6.652 million).
5. Audit
The results have been audited by the Group`s auditors, Mazars. Their unqualified
audit report is available for inspection at the company`s registered office.
6. Johannesburg Stock Exchange ("JSE")
The directors of the company ensured compliance with the JSE Listings
Requirements during the year under review.
7. Segmental reporting
Tour Coaching Retail
Operators and Touring Travel
R`000 R`000 R`000
30 September 2010
Revenue 143,759 125,121 88,875
Operating profit 20,982 20,820 4,289
30 September 2009
Revenue 137,557 114,536 79,594
Operating profit 15,605 12,472 (3,362)
Marine and Head
Boating Office
R`000 R`000
30 September 2010
Revenue 49,837 (2,523)
Operating profit 2,298 (15,049)
30 September 2009
Revenue 70,727 4,095
Operating profit 3,603 (5,752)
8. Contingent liabilities
On 2 December 2009, the company received a summons from the Powerpack Pension
Fund (in liquidation) claiming payment of approximately R45 million plus
interest relating to pension fund transactions during 1999. The company disputes
liability and will be defending the claim. Details regarding this matter have
been disclosed in the notes of the company`s 2010 annual financial statements.
Overview
In the year under review, all divisions and subsidiaries have improved
efficiencies and service levels. Market share has been retained throughout the
group, and financial results across the divisions have generally improved. All
operating divisions were profitable for the year. This is despite the effect of
challenging economic conditions and a number of events which affected the travel
industry during the year. These events included volcanic ash clouds, BA strikes,
political problems in Bangkok and significant fluctuations in exchange rates.
It was also pleasing to note that during the year the group became BEE compliant
and certified accordingly. The Cullinan Group Business Development Division also
increased efforts to assist local communities and travel related emerging
businesses during the year.
In keeping with the company`s commitment to conservation and its various
conservation projects in Africa, the group also joined the Travel Corporation
Conservation Fund during the year. To date this fund has donated over R14
million to various conservation projects world-wide since 2008.
Performance overview
The year under review saw a slight upturn in the local economy, while
international tourism also saw a recovery. The year saw growth in the travel,
coaching and touring businesses within the group.
The World Cup had a positive impact on the Coaching and Touring inbound
businesses, whilst the impact on the rest of the business was limited.
The Marine and Boating businesses felt the effect of the global recession in
2010, having been protected in the prior year by the lengthy lead times in boat
building. Whilst turnover deteriorated during the year, steps have been taken to
improve the business in 2011.
Group cash flow improved significantly with R68 million generated by operations
as compared to a decrease in cash from operations of R2 million in the prior
year.
Prospects
While the 2010 results reflect a significant improvement on prior years, there
remains room to increase profitability within the Group.
Growth in sales in 2011 is expected to remain challenging due to current
economic conditions. Despite these challenges, improved efficiencies should
create opportunities to increase market share in various sectors in the
business.
The group`s balance sheet is supportive of further acquisitions. With
significant improvements implemented throughout the operations of the group over
the past 18 months, the Board will actively pursue acquisition opportunities in
2011.
On Behalf of the Board
M Tollman D Standage
Executive Chairman Financial Director
30 December 2010
Auditors
Mazars were re-elected as auditors in 2010.
Sponsor
Arcay Moela Sponsors (Pty) Limited
(Registration number 2006/033725/07)
Directors
M Tollman, MA Ness *, VET O`Hana, DD Hosking **, LA Pampallis, G Tollman***,
DK Standage, DT Madlala, R Arendse
* British, ** New Zealand, *** USA, Non-Executive
Company secretary
DK Standage
Registered office
6 Hood Avenue, Rosebank, 2196
Transfer secretaries
Computershare Investor Services (Pty) Limited,
Ground Floor, 70 Marshall Street, Johannesburg, 2001
(PO Box 61051, Marshalltown, 2107)
For further information on group activities, please write to:
The Company Secretary, Cullinan Holdings Limited,
PO Box 41032, Craighall, 2024
Date: 30/12/2010 13:00:01 Supplied by www.sharenet.co.za
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