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CVI - Capevin Investments Limited - Unaudited interim results for the six months
ended 31 December 2010
Capevin Investments Limited
Registration number: 1979/007263/06
JSE share code: CVI
ISIN number: ZAE000136446
("Capevin Investments" or "the company" or "the group")
Unaudited interim results for the six months ended 31 December 2010
Intrinsic value per share of R106,10
Increase in headline earnings per share of 0,8% to 434,7 cents
Dividend per share of 172,5 cents
Group income statement
Unaudited Audited
six months ended year ended
31 December 30 June
2010 2009 2010
R`000 R`000 R`000
Share of profit of associate 183 347 181 599 274 493
Gain on dilution of interest in 896 767 1 413
associate
Interest income 98 126 270
Administrative expenses (808) (744) (2 051)
Profit before taxation 183 533 181 748 274 125
Taxation (27)
Profit for the period attributable to 183 506 181 748 274 125
equity holders of the company
Profit for the period attributable to 183 506 181 748 274 125
equity holders of the company
Non-headline items
Interest in adjustments of
associate, net of taxation (31) 140 592
Gain on dilution of interest in
associate (896) (767) (1 413)
Headline earnings 182 579 181 121 273 304
Earnings per share (cents)
- Attributable (basic and diluted) 436,9 432,7 652,7
- Headline (basic and diluted) 434,7 431,2 650,7
Number of shares in issue and 42 000 42 000 42 000
weighted average (thousands)
Group statement of comprehensive income
Unaudited Audited
six months ended year ended
31 December 30 June
2010 2009 2010
R`000 R`000 R`000
Profit for the period attributable to 183 506 181 748 274 125
equity holders of the company
Share of other comprehensive (9 633) 873 (9 842)
(loss)/income of associate
Other equity movements of associate 2 265 1 953 4 417
Total comprehensive income 176 138 184 574 268 700
attributable to equity holders of the
company
Group statement of financial position
Unaudited Audited
31 December 30 June
2010 2009 2010
R`000 R`000 R`000
Assets
Non-current assets
Investment in associate 1 624 640 1 512 680 1 525 214
Current assets 982 1 281 258
Cash and cash equivalents 982 1 262 254
Income tax receivable 19 4
Total assets 1 625 622 1 513 961 1 525 472
Equity and liabilities
Equity attributable to owners of the
parent
Share capital 42 000 42 000 42 000
Reserves 1 582 579 1 470 769 1 482 254
Total equity 1 624 579 1 512 769 1 524 254
Current liabilities 1 043 1 192 1 218
Trade payables 458 391 90
Unclaimed dividends 558 801 1 128
Income tax payable 27
Total equity and liabilities 1 625 622 1 513 961 1 525 472
Net asset value per share (cents) 3 868 3 602 3 629
Group statement of changes in owners` equity
Unaudited Audited
six months ended year ended
31 December 30 June
2010 2009 2010
R`000 R`000 R`000
Ordinary shareholders` equity at 1 524 254 1 404 635 1 404 635
beginning of period
Total comprehensive income 176 138 184 574 268 700
Unclaimed dividends written back 627 19
Dividends paid (76 440) (76 440) (149 100)
Ordinary shareholders` equity at end 1 624 579 1 512 769 1 524 254
of period
Dividend per share (cents)
- Interim 172,5 173,0 173,0
- Final 182,0
Group statement of cash flows
Unaudited Audited
six months ended year ended
31 December 30 June
2010 2009 2010
R`000 R`000 R`000
Cash flows from operating activities
Administrative expenses (808) (744) (2 051)
Increase in trade payables and 424 258 303
unclaimed dividends
Cash utilised in operations (384) (486) (1 748)
Dividends received 77 450 77 450 150 205
Dividends paid (76 440) (76 440) (149 100)
Interest received 98 126 270
Taxation received 4 15
Net increase/(decrease) in cash and 728 650 (358)
cash equivalents
Cash and cash equivalents at 254 612 612
beginning of period
Cash and cash equivalents at end of 982 1 262 254
period
Notes to the interim financial statements
1. Basis of presentation and accounting policies
The interim financial statements have been prepared in accordance with the
recognition and measurement principles of International Financial Reporting
Standards (IFRS), including IAS 34 - Interim Financial Reporting; the
requirements of the South African Companies Act of 1973, as amended; and the
Listings Requirements of the JSE Limited. The accounting policies applied in the
preparation of these interim financial statements are consistent with those used
in the previous financial period, and no new accounting standards,
interpretations or amendments to IFRS were relevant. Capevin Investments
prepares "economic interest" financial statements in which its interest in
associate is equity accounted. These "economic interest" financial statements
are referred to as "group" financial statements.
2. Group structure
The sole investment of Capevin Investments is an effective interest of 29,07%
(31 December 2009: 29,16% and 30 June 2010: 29,12%), held via Remgro-Capevin
Investments Limited, in the issued share capital of Distell Group Limited
("Distell"). Each of the company`s shares effectively represents 1,397 shares in
Distell.
3. Commitments and contingencies
Distell has lodged an appeal against revised tax assessments issued by the South
African Revenue Service. The matter was heard in the Special Income Tax Court
during October 2010, but judgement has not yet been delivered. The group`s
interest in the amount that is at risk is R8,6 million (31 December 2009: R8,6
million and 30 June 2010: R8,6 million).
4. Segment report
Capevin Investments is an investment holding company with its sole investment
being an effective interest in Distell. The directors have not identified any
other segment to report on.
Commentary
Financial results
During the six months under review Distell`s revenue grew by 3,6% to R6,9
billion on a sales volume increase of 2,8%. Although reasonable sales volume
growth was achieved, the results for the period under review were significantly
affected by adverse exchange rates and, to a lesser extent, a less favourable
sales mix. Benefits were derived from improved throughput and better operating
efficiencies; however, these were insufficient to protect margins and
profitability. Consequently, operating profit declined marginally by 0,1%, while
the net operating margin deteriorated to 13,8% (2009: 14,3%).
Capevin Investments` results reflect the marginal increase in Distell`s profit
for the period under review.
The company`s intrinsic value is calculated based on Distell`s share price at 31
December 2010 (excluding capital gains tax).
Prospects
The board of Distell said that although there are indications of a global
economic recovery, lingering vulnerabilities persist in some quarters. Moreover,
widespread unemployment and limited disposable income are likely to continue to
impact adversely on consumer spending. However, Distell remains confident in the
inherent strength and continued relevance of its diverse and well-balanced
portfolio.
Refer to www.distell.co.za for Distell`s detailed interim results.
Dividend
In terms of the dividend policy of Capevin Investments, dividends received from
its indirect interest in Distell, after providing for administration costs, will
be distributed to shareholders. The directors have consequently resolved to
declare an ordinary dividend (dividend number 4) of 172,5 cents (2009: 173,0
cents) per share for the six months ended 31 December 2010.
The salient dates of this dividend distribution are:
Last day to trade cum dividend Friday, 11 March 2011
Trading ex dividend commences Monday, 14 March 2011
Record date Friday, 18 March 2011
Date of payment Tuesday, 22 March 2011
Share certificates may not be dematerialised or rematerialised between Monday,
14 March 2011, and Friday, 18 March 2011, both days inclusive.
Signed on behalf of the board of directors
CA Otto A Wessels
Chairman Financial director
Stellenbosch
23 February 2011
Directors: CA Otto (Chairman), AEvZ Botha, JJ Durand, JJ Mouton, MH Visser, A
Wessels
Secretary: PSG Corporate Services (Pty) Ltd
Registered office: 1st Floor, Ou Kollege, 35 Kerk Street, Stellenbosch, 7600; PO
Box 7403, Stellenbosch, 7599
Transfer secretaries: Computershare Investor Services (Pty) Ltd, 70 Marshall
Street, Johannesburg, 2001; PO Box 61051, Marshalltown, 2107
Sponsor: PSG Capital
Auditor: PricewaterhouseCoopers Inc.
Date: 24/02/2011 10:51:01 Supplied by www.sharenet.co.za
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