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SPA - Spanjaard Limited - Condensed group audited results for the year ended
28 February 2011 and declaration of dividends
Spanjaard Limited
(Incorporated in the Republic of South Africa)
Registration number 1960/004393/06
Share code: SPA
ISIN: ZAE000006938
CONDENSED GROUP AUDITED RESULTS FOR THE YEAR ENDED 28 FEBRUARY 2011 AND
DECLARATION OF DIVIDENDS
Revenue exceeds R100 million - a new milestone
Headline earnings up 109% on 12% increase in turnover
NAV increased to 474 cents per share
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Audited Audited
Year ended Year ended
28 February 28 February
2011 2010
R`000 R`000
Revenue 102 421 92 106
Turnover 102 068 90 922
Cost of sales (61 585) (59 080)
Gross profit 40 483 31 842
Operating expenses (29 528) (26 677)
Depreciation and amortisation (1 859) (1 730)
Profit from operations 9 096 3 435
Finance (cost)/income - net (1 483) (91)
Profit before tax 7 613 3 344
Income tax expense (2 785) (1 001)
Profit 4 828 2 343
Other comprehensive income
Movement in foreign currency translation (348) (4)
reserve
Gain on revaluation on freehold land and 2 851 -
buildings
Tax effect (356) 1
Total comprehensive income for the year 6 975 2 340
Earnings per ordinary share
- basic and diluted (cents) 59,3 28,8
Dividend declared per ordinary share (cents)
- interim 15,0 -
- final 16,0 -
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Audited Audited
Year ended Year ended
28 February 28 February
2011 2010
R`000 R`000
Assets
Non-current assets 37 317 22 848
Property, plant and equipment 36 872 22 406
Goodwill 437 437
Intangibles 8 5
Current assets 34 638 38 764
Total assets 71 955 61 612
Equity and liabilities
Equity attributable to the owners of the 38 633 34 182
company
Ordinary shares and premium 6 871 6 871
Foreign currency translation reserve (207) 98
Retained earnings 21 619 18 617
Revaluation reserve 10 350 8 596
Non-current liabilities 12 304 6 236
Borrowings 8 792 2 865
Deferred tax liabilities 3 512 3 371
Current liabilities 21 018 21 194
Interest bearing 3 925 867
Non-interest bearing 17 093 20 327
Total equity and liabilities 71 955 61 612
Number of ordinary shares in issue (`000) 8 143 8 143
Net asset value per share (cents) 474,4 419,8
CONSOLIDATED STATEMENT OF CASH FLOW
Audited Audited
Year ended Year ended
28 February 28 February
2011 2010
R`000 R`000
Cash flows from operating activities 3 748 1 459
Cash flows from investing activities (16 462) (8 428)
Cash flows from financing activities 9 226 1 260
Net (decrease)/increase in cash and cash (3 488) (5 709)
equivalents
Cash and cash equivalents at beginning of 5 861 11 570
year
Cash and cash equivalents at end of year 2 373 5 861
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Audited Audited
Year ended Year ended
28 February 28 February
2011 2010
R`000 R`000
Ordinary shares 407 407
Share premium 6 464 6 464
Foreign currency translation reserve (207) 98
Total comprehensive income 6 975 2 340
Movement in reserves (2 147) 3
Revaluation reserve 10 350 8 596
Realisation of revaluation reserve 698 713
Ordinary dividend (2 524) -
Retained earnings at the beginning of the 18 617 15 561
year
Total shareholders` equity 38 633 34 182
SUPPLEMENTARY INFORMATION
Audited Audited
Year ended Year ended
28 February 28 February
2011 2010
R`000 R`000
Capital expenditure 13 525 5 634
OPERATING SEGMENTS
Audited Audited
Year ended Year ended
28 February 28 February
2011 2010
R`000 R`000
Segment revenue
Special lubricants and allied chemicals 91 217 72 138
External customers 8 394 10 548
Local customers 82 823 61 590
Metal powders 14 034 19 604
External customers 6 824 8 703
Local customers 7 210 10 901
Other 7 320 7 409
External customers 7 320 7 409
Reconciling items (10 503) (8 229)
External customers (2 450) (2 315)
Local customers (8 053) (5 914)
102 068 90 922
Segment result
Special lubricants and allied chemicals 5 650 2 708
Metal powders 436 749
Other (914) 20
Reconciling items 3 924 (42)
9 096 3 435
Segment assets
Special lubricants and allied chemicals 47 624 41 635
Metal powders 9 106 15 378
Other 21 195 11 315
Reconciling items (5 970) (6 496)
71 955 61 832
Segment liabilities
Special lubricants and allied chemicals 21 456 19 858
Metal powders 2 967 9 565
Other 15 832 4 629
Reconciling items (6 933) (6 402)
33 322 27 650
RECONCILIATION OF HEADLINE EARNINGS
Audited Audited
Year ended Year ended
28 February 28 February
2011 2010
R`000 R`000
Profit attributable to shareholders 4 828 2 343
(Profit) on disposal of property, plant and (54) (74)
equipment
Income tax effect on disposal 15 21
Headline earnings 4 789 2 290
Weighted average number of ordinary shares 8 143 8 143
in issue (`000)
Headline earnings per ordinary share
- basic and diluted (cents) 58,8 28,1
BASIS OF PREPARATION
The audited condensed consolidated results have been prepared in accordance
with the Framework concepts and the measurement and recognition requirements
of the International Financial Reporting Standards and containing information
required by IAS 34 Interim Financial Reporting and in the manner required by
the Companies Act.
The condensed financial statements should be read in conjunction with the
2011 financial statements.
COMMENTARY
POINTS OF INTEREST
- Group turnover R102 million - up by 12%
- Net profit more than doubled to R4,8 million
- NAV increased to 474 cents per share
GENERAL REVIEW
Tight control of cost of sales on an increase in turnover of R12 million has
led to these outstanding results. Investment in property, plant and equipment
for the year was R13,5 million. There was an increase of 140% in capital
expenditure. This was necessary to commission the new production and
warehousing facilities as well as upgrading our current manufacturing plant
to increase normal capacity. Production capacity has been increased
exponentially, the fruits of which will become evident during the current
financial year.
SEGMENTAL ANALYSIS
The Special Lubricants and Allied Chemicals segment showed strong performance
increasing turnover by 26% and profit by 109%. Increased sales into Africa -
a new breakthrough.
The metal powder segment had a difficult year. Turnover decreased by 28%.
Profit is down 42% due to on-going legal proceedings. The Court has ruled in
our favour in respect of the civil proceedings. Criminal action is being
pursued by the authorities.
The other segments remained consistent to the corresponding period last year.
The properties in Wynberg and Alrode were valued at R15,3 million and R4,1
million respectively, an increase of R2,9 million.
DIVIDENDS
Interim dividend (No. 18) of 15 cents per ordinary share was declared on 28
October 2010. The total actual dividends paid during the financial year
amounted to R1 221 428. Dividend tax resulting from the interim declaration
amounted to R122 143.
Final dividend (No. 19) of 16 cents per ordinary share was declared on 25
February 2011, payable to all shareholders of Spanjaard Limited recorded in
the books of the company at the close of business on Friday, 27 May 2011. The
last day to trade cum dividend is Friday, 20 May 2011. Shares will commence
trading ex dividend on Monday, 23 May 2011. The dividend is payable on
Monday, 30 May 2011. Share certificates may not be dematerialised or
rematerialised between Monday, 23 May 2011 and Friday, 27 May 2011, both days
inclusive. This dividend amounts to R1 302 856 and the dividend tax resulting
from the final declaration amounts to R130 286.
AUDIT OPINION
Mazars have audited the annual financial statements (and Group financial
statements) for the year ended 28 February 2011 and their unqualified audit
report, together with their audit report on these financial statements, is
available for inspection at the Company`s registered office.
ML Bond
Company Secretary
9 May 2011
Directors:
RJW Spanjaard (Executive Chairman)
E Nepgen (Managing Director)
GF Cort
BL Montgomery*
CKT Palmer
Dr DP van der Nest*
HJ van Heerden (Financial Director)
SA Pretorius
*Non-executive
Registered office:
748-750 Fifth Street, Wynberg, Sandton, 2090
Transfer secretaries:
Computershare Investor Services (Pty) Limited
70 Marshall Street, Johannesburg, 2001
Sponsors:
Arcay Moela Sponsors (Pty) Limited
Arcay House, Number 5 Anerley Road, Parktown, 2193
E-mail: info@spanjaard.biz
Website: www.spanjaard.biz
Date: 09/05/2011 07:15:01 Supplied by www.sharenet.co.za
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