Wrap Text
CUL/CULP - Cullinan Holdings Limited - Unreviewed condensed consolidated
results for the six months ended 31 March 2011
CULLINAN HOLDINGS LIMITED
TOURISM AND LEISURE
(Registration number 1902/001808/06)
(CUL ISIN: ZAE000013710)
(CULP ISIN: ZAE000001947)
("the company" or "the group")
UNREVIEWED CONDENSED CONSOLIDATED RESULTS FOR THE SIX MONTHS ENDED 31 MARCH
2011
GROUP FINANCIAL HIGHLIGHTS
Operating profit - up 13,8%
Attributable earnings - up 8,1%
Headline earnings - up 8,1%
Cash generated by operating activities - R20,5 million
GROUP CONDENSED STATEMENT OF FINANCIAL POSITION
Unreviewed Unreviewed Audited
six months six months year ended
31 March 31 March 30 September
2011 2010 2010
R`000 R`000 R`000
ASSETS
Non-current assets 124 694 126 583 132 359
Property, plant and equipment 61 163 57 846 65 710
Goodwill 33 618 33 581 33 601
Intangible assets 19 615 24 973 22 720
Investment properties 3 900 5 000 3 900
Investment in associate 3 023 2 827 3 166
companies
Investment in joint venture 2 096 1 171 1 983
Deferred tax asset 1 279 1 185 1 279
Current assets 212 190 172 628 253 602
Inventories 16 197 16 210 17 033
Accounts receivable 76 720 77 246 136 144
Other financial asset - - -
Taxation 1 216 1 212 2 156
Cash resources 118 057 77 960 98 269
Non-current assets held for sale 4 000 4 193 4 000
Total assets 340 884 303 404 389 961
EQUITY AND LIABILITIES
Ordinary shareholders` equity 151 154 123 012 138 704
Preference shareholders` equity 546 546 546
Non-controlling interest 1 5 1
Total shareholders` equity 151 701 123 563 139 251
Non-current liabilities 16 105 14 695 15 538
Deferred tax liability 3 969 3 341 3 603
Operating lease accrual 11 636 10 854 11 435
Preference shares 500 500 500
Current liabilities 173 078 165 146 235 172
Operating lease accrual 50 78 23
Accounts payable 162 205 153 327 225 817
Other financial liabilities - - 1 801
Taxation 2 705 2 433 1 055
Preference dividends 15 42 14
Provisions 8 103 9 266 6 462
Total equity and liabilities 340 884 303 404 389 961
GROUP CONDENSED STATEMENT OF COMPREHENSIVE INCOME
Unreviewed Unreviewed Audited
six months six months year ended
31 March 31 March 30 September
2011 2010 2010
R`000 R`000 R`000
Revenue 197 961 200 351 405 069
Turnover 196 439 198 185 401 069
Net operating expenses (180 252) (183 956) (367 729)
Operating profit 16 187 14 229 33 340
Finance income 1 522 2 166 4 000
Finance expenses (136) - (56)
Preference dividends paid (24) (24) (55)
Share of (loss)/profit of (197) (226) 330
associates
Share of profit of joint venture 167 (71) 742
Profit before taxation 17 519 16 074 38 301
Tax expense (5 072) (4 595) (10 445)
Profit for the period 12 447 11 479 27 856
Other comprehensive income:
Exchange differences on 3 13 (10)
translating foreign operations
Revaluation of land and - - (600)
buildings
Total comprehensive income for 12 450 11 492 27 246
the period
Profit attributable to:
equity holders 12 447 11 479 27 794
non-controlling interest - - 62
Total comprehensive income
attributable to:
equity holders 12 450 11 492 27 184
non-controlling interest - - 62
Basic earnings per share (cents) 1,73 1,60 3,87
Diluted earnings per share 1,73 1,60 3,87
(cents)
GROUP CONDENSED STATEMENTS OF CHANGES IN EQUITY
Unreviewed Unreviewed Audited
six months six months year ended
31 March 31 March 30 September
2011 2010 2010
R`000 R`000 R`000
Ordinary share capital
Balance at beginning of period 7 184 7 184 7 184
Issued during period - - -
Balance at end of period 7 184 7 184 7 184
Share premium
Balance at beginning of period 59 905 59 905 59 905
Premium on issue of shares - - -
Balance at end of period 59 905 59 905 59 905
Share capital reduction reserve
fund
Balance at beginning of period 20 876 20 876 20 876
Balance at end of period 20 876 20 876 20 876
Capital redemption reserve fund
Balance at beginning of period 4 4 4
Balance at end of period 4 4 4
Foreign currency translation
reserve
Balance at beginning of period (1 583) (1 573) (1 573)
Reserve on translation of 3 13 (10)
foreign subsidiary
Balance at end of period (1 580) (1 560) (1 583)
Revaluation reserve
Balance at beginning of period 264 864 864
Reserve on translation of - - (600)
foreign subsidiary
Balance at end of period 264 864 264
Accumulated profit/(loss)
Balance at beginning of period 52 054 24 260 24 260
Attributable income for period 12 447 11 479 27 794
Balance at end of period 64 501 35 739 52 054
Ordinary shareholders` equity 151 154 123 012 138 704
Equity portion of preference
share capital
Balance at beginning of period 546 546 546
Balance at end of period 546 546 546
Non-controlling interest
Balance at beginning of period 1 5 5
Profit attributable to non- - - 62
controlling interest
Dividend paid to non-controlling - - (66)
interest
Balance at end of period 1 5 1
Total comprehensive income
Profit for period 12 447 11 479 27 856
- Attributable to equity 12 447 11 479 27 794
shareholders
- Attributable to non- - - 62
controlling interest
Translation of foreign 3 13 (10)
subsidiary
Revaluation of land and - - (600)
buildings
12 450 11 492 27 246
GROUP CONDENSED STATEMENT OF CASH FLOWS
Unreviewed Unreviewed Audited
six months six months year ended
31 March 31 March 30 September
2011 2010 2010
R`000 R`000 R`000
Net cash inflow/(outflow) from 20 529 29 134 62 529
operating activities
Net cash outflow from investing (741) (10 554) (23 618)
activities
Net cash outflow from financing - (37 150) (37 172)
activities
Net (decrease)/increase in cash 19 788 (18 570) 1 739
and cash equivalents
Cash and cash equivalents at 98 269 96 530 96 530
beginning of the period
Cash and cash equivalents at end 118 057 77 960 98 269
of the period
NOTES
1. Basis of preparation
The unreviewed condensed consolidated interim results for the six months ended
31 March 2011 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 interim results for the six
months 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.
2. Notes to the income statement
Unreviewed Unreviewed Audited
six months six months year ended
31 March 31 March 30 September
2011 2010 2010
Ordinary shares (`000)
- In issue 718 355 718 355 718 355
- Weighted average 718 355 718 355 718 355
R`000 R`000 R`000
Determination of headline
earnings
Earnings attributable to ordinary 12 447 11 479 27 794
shareholders
Adjustment to fair value on - - (560)
investment properties
(Profits)/losses on disposal of - - (535)
property, plant and equipment
Total tax effect of the - - 209
adjustments
Headline earnings 12 447 11 479 26 908
Headline earnings per share 1,73 1,60 3,75
(cents)
Diluted headline earnings per 1,73 1,60 3,75
share (cents)
Net asset value per share (cents) 21,12 17,20 19,38
3. JSE Limited ("JSE")
The directors of the company ensured compliance with the JSE Listings
Requirements during the period under review.
4. Segmental reporting
Tour Coaching & Retail
Operators Touring Travel
R`000 R`000 R`000
31 March 2011
Revenue 71 883 52 018 48 910
Operating profit 13 688 7 316 7 821
31 March 2010
Revenue 71 015 58 179 43 641
Operating profit 9 582 10 616 2 375
30 September 2010
Revenue 143 759 125 121 88 875
Operating profit 20 982 20 820 4 289
4. Segmental reporting
Marine & Head
Boating Office Total
R`000 R`000 R`000
31 March 2011
Revenue 25 040 110 197 961
Operating profit 920 (13 558) 16 187
31 March 2010
Revenue 27 725 (209) 200 351
Operating profit 2 282 (10 626) 14 229
30 September 2010
Revenue 49 837 (2 523) 405 069
Operating profit 2 298 (15 049) 33 340
OVERVIEW
The group presents positive results for the six month period ended 31 March
2011 with operating profit increasing by 14% and earnings increasing by 8%
over the same period last year. This was achieved despite tough trading
conditions.
The general worldwide economic malaise, strength of the Rand and the aftermath
of the 2010 World Cup impacted detrimentally on sales in the export dependent
businesses such as inbound tourism, coaching and boat building. The outbound
travel & tourism divisions benefited from steps taken over the past 24 months
to improve product and efficiency resulting in increased sales in these retail
and wholesale businesses.
The group has been active in securing new opportunities over the period.
Thompsons Africa secured a major contract to be the sole accommodation booking
provider for the COP17 World Climate Change summit to be held in Durban in
November 2011. Hylton Ross opened a branch in Johannesburg in October 2010.
During the period Hylton Ross also expanded nationally in South Africa as well
as to Chobe in Botswana.
The effect of the above improved the cash position of the business from a net
cash position of R78 million at 31 March 2010 to R118 million at 31 March
2011. In the six month period ending March 2011, cash generated from operating
activities amounted to R20,5 million.
REVIEW OF OPERATIONS
Thompsons Holidays (the Outbound division)
The Outbound division is a wholesale supplier of travel-related products and
holidays to the South African market through retail travel agents. Steps taken
over the past 12 months to improve efficiencies have resulted in a marked
improvement in the business.
Thompsons Africa (the Inbound division)
The Inbound division is a tour wholesaler and destination marketing
organisation that sells South & Southern African travel packages to
International Travel wholesalers, who in turn sell this on to international
tourists. Sales were affected by the slowdown in worldwide tourism, a strong
Rand and a hangover from the 2010 World Cup. Despite a slowdown the business
continued to deliver good results through efficient systems and good cost
management.
Thompsons Travel
Thompsons Travel is a Corporate and Retail travel agency with offices in
Johannesburg, Cape Town and Durban. The Corporate division has seen good
growth in the period in both sales and profitability. This has been achieved
through a combination of increased spend as Corporates have resumed travel and
through the business securing a number of new accounts. The performance of the
Leisure division has improved over 2010 as a result of concentration on
improved value and service and better cost management.
Pentravel
Pentravel is a chain of retail travel outlets located in the major shopping
malls throughout South Africa. The Division has delivered good sales growth as
a result of management`s continued improvement in quality and service to its
customer. Overall the business has improved performance over the same period
last year.
Hylton Ross Tours
Hylton Ross Tours operates coaches and vehicles for charter to the Inbound and
Domestic tourism market. It also provides day tours and excursions. This
respected brand has operated for 30 years in the Western Cape and on 1 October
2010, opened a branch in Johannesburg and thereafter expanded its business
nationally in South Africa and into Botswana.
Thompsons Gateway
Gateway, a sales office in Singapore, saw a decline in sales out of its
markets in South East Asia with the market being affected by the strong Rand
during the period.
Planet Africa
Planet Africa is a joint venture operation formed to sell and market Southern
Africa to Japanese and Korean tourists. The strong Rand affected levels of
business, while the slowdown has been exacerbated by recent events in Japan.
The business continues to trade profitably but well down on last year.
Manex
Manex is a supplier to the yacht building industry as well as a distributor of
a number of leading brands in the Scuba Diving and Leisure sector. The
reduction in local boat building due to a combination of the weak global
economy and exchange rate, resulted in pressure on sales. As this was
anticipated, steps were taken last year to reduce overheads and the business
continues to look for further brands by which to expand.
Central Boating
Central Boating is a market leader in the importation and distribution of
leisure marine equipment to both the yachting and power boat sectors of the
market in South Africa. Like Manex, the business has been affected by the
global economy and has seen pressure on sales.
Cullinan Business Development
This division was established in 2010 to focus on corporate social
responsibility for the group. This includes enterprise development, corporate
social investment and other aspects that allow Cullinan to contribute to
social development in South Africa. To date it has been active in a number of
areas such as development of emerging travel agencies and supporting
enterprise development.
Prospects
Whilst the general economic environment continues to be challenging, Cullinan
has performed well over the past six months and is well-placed to continue
expansion. Improvement in the group`s balance sheet and cash position allow
for further acquisitions as opportunities arise.
On behalf of the Board
M Tollman DK Standage
Executive Chairman Financial Director
5 May 2011
Auditors
Mazars were re-elected as auditors in 2011.
Sponsor
Arcay Moela Sponsors (Proprietary) Limited
(Registration number 2006/033725/07)
Directors
M Tollman
MA Ness*
DD Hosking*
LA Pampallis
G Tollman*
DK Standage
DT Madlala
R Arendse
S Nhlumayo
* Non-resident
Non-Executive
Independent 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
(Registration number 1902/001808/06)
(CUL ISIN: ZAE000013710)
(CULP ISIN: ZAE000001947)
("the company" or "the group")
Date: 05/05/2011 11:46:01 Supplied by www.sharenet.co.za
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