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CKS - Crookes Brothers Limited - Abridged audited group results for the year
ended 31 March 2011 and final dividend declaration
CROOKES BROTHERS LIMITED
Registration No. 1913/000290/06
Share code: CKS ISIN: ZAE000001434
ABRIDGED AUDITED GROUP RESULTS FOR THE YEAR ENDED 31 MARCH 2011
AND FINAL DIVIDEND DECLARATION
The audited results of the group for the year ended 31 March 2011 together with
those of the previous year are set out below:
ABRIDGED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
(R000`s) 31 March 31 March
2011 2010
Revenue 298 303 305 883
Operating profit 25 794 36 402
Share of profit of associate companies 51 7
Investment income 5 412 502
Finance costs (4 353) (5 828)
Capital items 93 741 13 188
Profit before taxation 120 645 44 271
Income tax expense (7 439) (7 214)
Profit for the year from continuing operations 113 206 37 057
Discontinued operations:
Loss for the year from discontinued operations - (16 797)
Profit for the year 113 206 20 260
Other comprehensive loss
Investment revaluation 1 542 305
Exchange differences on translating foreign operations (2 646) (867)
Other comprehensive loss for the year, net of tax (1 104) (562)
Total comprehensive income for the year 112 102 19 698
Profit attributable to:
Owners of the company 112 828 20 650
Non-controlling interests 378 (390)
113 206 20 260
Total comprehensive income attributable to
Owners of the company 111 724 20 088
Non-controlling interests 378 (390)
112 102 19 698
Earnings per share
Earnings per share (basic) (cents) 911.0 166.7
Earnings per share (diluted) (cents) 905.5 166.6
Dividends per share
Ordinary dividends declared per share (cents) - interim 45.0 45.0
Ordinary dividends declared per share (cents) - final 65.0 25.0
Special dividends declared per share (cents) 50.0 0.0
160.0 70.0
RECONCILIATION OF HEADLINE EARNINGS
(R000`s) 31 March 31 March
2011 2010
Profit for the year 112 828 20 650
Capital profit on disposal of land, buildings and
biological assets (93 741) (13 188)
Profit on disposal of plant and equipment (499) (2 150)
Tax effect on the above 6 662 (2 301)
Profit on disposal of shares - (117)
Tax effect on disposal of shares - 13
Discontinued operations write-off of assets - 10 693
Tax effect on discontinued operations write-off of assets - (2 467)
Headline earnings 25 250 11 133
Headline earnings per share
Headline earnings per share (cents) 203.9 89.9
Headline earnings per share (diluted) (cents) 202.6 89.8
ABRIDGED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
(R000`s) 31 March 31 March
2011 2010
Shareholders` equity at beginning of year 341 705 342 095
Changes in share capital and premium
Cash distribution from share premium - (6 193)
Movements in:
Share-based payment reserve 112 100
Other comprehensive loss for the year (1 104) (562)
Changes in retained earnings 98 343 6 265
Net profit attributable to shareholders 113 206 20 260
Dividends paid (14 863) (13 995)
Shareholders` equity at end of year 439 056 341 705
ABRIDGED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
(R000`s) 31 March 31 March
2011 2010
ASSETS
Non-current assets 295 621 250 879
Property, plant and equipment 177 847 159 790
Bearer biological assets 101 730 79 153
Unlisted investments 5 576 3 873
Investment in associate companies 9 818 8 063
Unsecured loan - long term 650 -
Current assets 303 664 279 890
Inventories 19 348 21 105
Biological assets - crops and livestock 123 677 120 345
Trade and other receivables 18 358 17 529
Taxation 5 466 1 495
Cash and cash equivalents 7 811 3 338
Other financial assets - preference shares 129 004 -
Assets classified as held for sale - 116 078
Total assets 599 285 530 769
EQUITY AND LIABILITIES
Capital and reserves 439 056 341 705
Share capital and premium 3 208 3 208
Retained earnings 433 878 335 913
Investment revaluation reserve 5 131 3 589
Foreign currency translation reserve (3 513) (867)
Share-based payment reserve 420 308
Shareholders` interest 439 124 342 151
Outside interests in subsidiary (68) (446)
Non-current liabilities 116 928 98 806
Deferred taxation 53 103 57 547
Long-term borrowings - interest-bearing 6 559 10 332
Long-term liability - interest-free 41 076 16 550
Post-employment obligations 16 190 14 377
Current liabilities 43 301 90 258
Trade and other payables 20 755 18 146
Short-term borrowings - interest-bearing 22 546 62 112
Liabilities associated with assets classified as held
for sale - 10 000
Total equity and liabilities 599 285 530 769
Net asset value per share (cents) 3 545 2 759
ABRIDGED CONSOLIDATED STATEMENT OF CASH FLOWS
(R000`s) 31 March 31 March
2011 2010
Operating profit 25 794 36 402
Adjustment for non-cash items 16 991 (14 333)
42 785 22 069
Net working capital changes (1 224) 18 231
Cash generated from operations 41 561 40 300
Cash flows from operating activities 16 738 21 921
Cash generated from operations 41 561 40 300
Finance costs (4 353) (5 828)
Taxation paid (20 470) (12 551)
Cash flows from investing activities 55 936 (16 462)
Proceeds on disposal of property, plant, equipment
and biological assets 201 568 38 695
Acquisition of investments - preference shares (129 004) -
Acquisition of property, plant, equipment and
biological assets (20 539) (77 968)
Other investing activities 3 911 22 811
Cash flows from financing activities (68 201) (2 276)
Net (decrease)/increase in borrowings (53 339) 17 912
Dividends paid (14 862) (20 188)
Net increase in cash and cash equivalents 4 473 3 183
Cash and cash equivalents at beginning of year 3 338 155
Cash and cash equivalents at end of year 7 811 3 338
Cash flow from operating activities - per share (cents) 135.1 177.0
OTHER GROUP SALIENT FEATURES
(R000`s) 31 March 31 March
2011 2010
Depreciation 13 742 12 541
Capital expenditure incurred 20 441 55 521
Capital commitments
- Contracted 4 699 6 839
- Authorised but not contracted 12 700 10 975
17 399 17 814
Guarantees 700 661
Contingent assets - disputed interest on capital sale 25 300 16 100
Number of shares in issue 12 385 000 12 385 000
Weighted average number of shares on which earnings
per share (and headline earnings per share) are
based 12 385 000 12 385 000
ABRIDGED CONSOLIDATED SEGMENTAL ANALYSIS Continuing operations
(R000`s) 31 March 31 March
2011 2010
Revenue
Sugar cane 171 858 179 094
Bananas 50 359 54 430
Deciduous fruit 45 937 50 209
Grain and sheep 13 710 14 290
Other operations 16 439 7 860
298 303 305 883
Operating profit/(loss)
Sugar cane 46 344 54 435
Bananas 2 630 9 522
Deciduous fruit (586) (10 154)
Grain and sheep 4 572 4 358
Other operations/sundry income 1 657 1 223
Profit on disposal of plant and equipment 499 2 343
Unallocated corporate expenses (29 322) (25 325)
25 794 36 402
DISCONTINUED OPERATIONS - Citrus
(R000`s) 31 March 31 March
2011 2010
Revenue - 5 719
Operating loss before taxation - (12 298)
Income tax expense - 3 727
Loss for the year - (8 571)
Loss on impairment and sale of assets (net of tax) - (8 226)
Loss for the year from discontinued operations - (16 797)
ACCOUNTING POLICIES
The abridged financial information has been prepared in accordance with the
framework concepts and the measurement and recognition requirements of
International Financial Reporting Standards (IFRS), the AC 500 standards as
issued by the Accounting Practices Board and the information as required by IAS
34: Interim Financial Reporting. The report has been prepared using accounting
policies that comply with IFRS which are consistent with those applied in the
financial statements for the year ended 31 March 2010.
For a better understanding of the Group`s financial position and the results of
its operations for the period and of the scope of the audit, the abridged
financial statements should be read in conjunction with the financial statements
from which the abridged financial statements were derived and our audit report
thereon.
AUDITED RESULTS
The auditors, Deloitte & Touche, have issued their opinion on the group`s
financial statements for the year ended 31 March 2011. The audit was conducted
in accordance with International Standards on Auditing. They have issued an
unmodified audit opinion. A copy of their report is available for inspection at
the company`s registered office. These abridged financial statements have been
derived from the group financial statements and are consistent in all material
respects with the group financial statements. Any reference to future financial
performance included in this announcement has not been reviewed or reported on
by the auditors.
POST BALANCE SHEET EVENTS
There have been no material events between the balance sheet date and the date
of this report.
COMMENTS ON THE RESULTS
A significant increase in headline earnings was achieved in the past financial
year; however this came off a low base following the weak fruit prices of the
previous year. Operating profit remained significantly below the board`s
expectations due to the continued impact of adverse climatic conditions and the
stronger rand.
Group revenue declined from R306 million in 2010 to R298 million and operating
profit from R36.4 million to R25.8 million. Earnings increased from R20.3
million to R113.2 million and headline earnings from R11.1 million to R25.3
million, the large movement in earnings mainly attributable to the capital
profits realised on the sale of the Komati Estate to the government as part of
the land restitution program.
Sugar cane - Total production was below expectations on the group`s sugar cane
estates, mainly due to the effect of the prolonged drought on the group`s KZN
coastal estates. Prices in Swaziland and Zambia were disappointing when measured
in rand terms.
Deciduous - Financial results were adversely affected by the high level of
replanting and development currently being undertaken in this division.
Nonetheless, firmer prices especially in the local market resulted in a reduced
loss, although production was below that of the previous year in line with the
rest of the Elgin-Grabouw-Villiersdorp region. Long term prospects and growth
plans remain positive although cash flow is affected by a 4-6 year lag before
newly established orchards come into production.
Bananas - The profitability of this operation declined substantially due to the
effect of cold and wind damage on yields and quality, as well as weaker prices.
The benefits of the current replant programme will be realised within the next 2
years.
Grain and Sheep - Grain profits were negatively affected by low prices and an
exceptionally dry growing season in the Southern Cape, but the sheep operation
experienced an excellent year with good production and high prices.
Other operations - The crocodile farming operation was closed during the year
following the global collapse of the market, with no expectation of a recovery
in the medium term. The small cattle operation was sold and the ranch land
leased to a third party.
The sale of the Komati estate to the National Department of Land Affairs was
concluded during the year although court action is ongoing to recover the
material amount of interest owed.
The evaluation of the 1 800 hectare Renishaw cane farms for property development
potential is progressing to plan, but implementation plans could be delayed by a
land claim over part of the property. This too is subject to continuing legal
action.
Prospects
With a general firming of global food prices and better early season weather
conditions, expectations are positive for the year ahead. Projects now being
implemented or under consideration should provide a platform for strong growth
in the medium term.
With substantial cash resources available, the group is well positioned to
undertake an expansion into Southern Africa in line with its strategic mandate,
which will take the scope of its operations to a new level.
DECLARATION OF FINAL CASH DIVIDEND
The board has declared a final cash dividend of 65,0 cents per share in respect
of the year ended 31 March 2011.
The final dividend will be paid on Monday, 11 July 2011 to shareholders recorded
in the books of the company at the close of business on the record date, Friday,
8 July 2011.
The salient dates relating to the ordinary dividend are as follows:
Last day to trade cum the dividend Friday, 1 July 2011
Shares commence trading ex the dividend Monday, 4 July 2011
Record date Friday, 8 July 2011
Payment date of the dividend Monday, 11 July 2011
Share certificates may not be dematerialised or rematerialised between Monday 4
July 2011 and Friday, 8 July 2011, both days inclusive.
The above dividend is in addition to the interim dividend of 45,0 cents per
share and the special dividend of 50,0 cents per share which were declared on 30
November 2010 and brings the aggregate dividend in respect of the year ended 31
March 2011 to 160,0 cents (2010: 70,0 cents) per share.
DIRECTORATE
Ms Phumla Mnganga and Mr Rodger Stewart were appointed as independent non-
executive directors with effect from 1 May 2011. In terms of the company`s
memorandum of incorporation they will retire at the forthcoming annual general
meeting and, being eligible, offer themselves for election.
NOTICE OF THE ANNUAL GENERAL MEETING AND POSTING OF ANNUAL REPORT
The annual report will be posted to shareholders on or about 27 June 2011.
Notice is hereby given that the annual general meeting of the company will be
held at 12:00 on 22 July 2011 to transact the business as stated in the annual
general meeting notice forming part of the annual financial statements.
For and on behalf of the Board
G P Wayne (Chairman)
G S Clarke (Managing Director)
Renishaw
Registered office and postal address
Renishaw, KwaZulu-Natal
PO Renishaw, 4181
31 May 2011
Sponsor
Sasfin Capital
A division of Sasfin Bank Limited
Directors
G P Wayne * (Chairman), G S Clarke (Managing), P J Barker (Financial),
P Bhengu *, C J H Chance *, D J Crookes *, J A F Hewat *, P G Joubert *,
P Mnanga *, M T Rutherford *, R E Stewart *. * Non-executive director
Secretary
Highway Corporate Services (Pty) Limited
Date: 31/05/2011 11:37:01 Supplied by www.sharenet.co.za
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