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CVI - Capevin Investments Limited - Audited abridged results for the year ended
30 June 2011 and notice of annual general meeting
Capevin Investments Limited
Incorporated in the Republic of South Africa
Registration number: 1979/007263/06
JSE share code: CVI
ISIN number: ZAE000136446
("Capevin Investments" or "the company" or "the group")
Audited abridged results for the year ended 30 June 2011 and notice of annual
general meeting
Intrinsic value per share up 9,2% to R99,88
Headline earnings per share up 1,8% to R6,62
Final dividend per share of 181,5 cents
Abridged group income statement 2011 2010
R`000 R`000
Share of profit of associate 279 168 274 493
Gain on dilution of interest in associate 1 726 1 413
Investment income 192 270
Administrative expenses (1 568) (2 051)
Profit before taxation 279 518 274 125
Taxation (54)
Profit for the year attributable to equity holders of 279 464 274 125
the company
Profit for the year attributable to equity holders of 279 464 274 125
the company
Non-headline items
Interest in adjustments of associate, net of taxation 367 592
Gain on dilution of interest in associate (1 726) (1 413)
Headline earnings 278 105 273 304
Earnings per share (cents)
- Attributable (basic and diluted) 665,4 652,7
- Headline (basic and diluted) 662,2 650,7
Number of shares in issue and weighted average 42 000 42 000
(thousands)
Abridged group statement of comprehensive income 2011 2010
R`000 R`000
Profit for the year attributable to equity holders of 279 464 274 125
the company
Share of other comprehensive loss of associate (8 537) (9 842)
Other equity movements of associate 4 411 4 417
Total comprehensive income for the year attributable 275 338 268 700
to equity holders of the company
Abridged group statement of financial position 2011 2010
R`000 R`000
Assets
Non-current assets
Investment in associate 1 651 777 1 525 214
Current assets 289 258
Income tax receivable 4 4
Cash and cash equivalents 285 254
Total assets 1 652 066 1 525 472
Equity and liabilities
Equity attributable to owners of the parent
Share capital 42 000 42 000
Reserves 1 609 396 1 482 254
Total equity 1 651 396 1 524 254
Current liabilities 670 1 218
Trade payables 90 90
Unclaimed dividends 580 1 128
Total equity and liabilities 1 652 066 1 525 472
Net asset value per share (cents) 3 932 3 629
Abridged group statement of changes in owners` equity 2011 2010
R`000 R`000
Ordinary shareholders` equity at beginning of year 1 524 254 1 404 635
Total comprehensive income for the year 275 338 268 700
Unclaimed dividends written back 694 19
Dividends paid (148 890) (149 100)
Ordinary shareholders` equity at end of year 1 651 396 1 524 254
Dividend per share
Interim: 172,5 cents (2010: 173 cents) - declared 23 February 2011 and paid
22 March 2011
Final: 181,5 cents (2010: 182 cents) - declared 2 September 2011 and payable
26 September 2011
Abridged group statement of cash flows 2011 2010
R`000 R`000
Cash flows from operating activities
Cash utilised in operations (1 422) (1 748)
Dividends received 150 205 150 205
Dividends paid (148 890) (149 100)
Interest received 192 270
Taxation (paid)/received (54) 15
Net increase/(decrease) in cash and cash equivalents 31 (358)
Cash and cash equivalents at beginning of year 254 612
Cash and cash equivalents at end of year 285 254
Notes to the abridged financial statements
1. Basis of presentation and accounting policies
The abridged 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, as well as
AC 500 standards; the requirements of the South African Companies Act of 2008,
as amended, and the Listings Requirements of the JSE Limited. The accounting
policies applied in the preparation of these abridged financial statements are
consistent with those used in the previous financial year. No new standards,
interpretations or amendments, which are relevant to the group`s operations,
became effective during the year.
2. Group structure
The sole investment of Capevin Investments is an effective interest of 29,04%
(2010: 29,12%), held via Remgro-Capevin Investments Ltd, in the issued share
capital of Distell Group Ltd ("Distell"). Each of Capevin Investments` shares
effectively represents 1,397 shares (2010: 1,397 shares) in Distell.
3. Commitments and contingencies
During the reporting period, the Distell group received an assessment from the
South African Revenue Service for additional employees tax relating to Distell
group`s share incentive scheme. The Distell group obtained legal and tax
specialist opinions on this matter, which indicated that no provision is
necessary and are in the process of formalising an objection to this assessment.
Capevin Investments` interest in the amount that is at risk is R15,2 million
(excluding penalties and interest).
4. Related party transactions and balances
During the year, the group received dividends amounting to R150 205 000 (2010:
R150 205 000) from Distell (an associate), and paid an administrative fee of
R637 000 (excl VAT) (2010: R637 000) and a sponsor fee of R25 000 (excl VAT)
(2010: R25 000) to PSG Corporate Services (Pty) Ltd (a fellow subsidiary of an
investor exercising significant influence over Capevin Investments` holding
company).
5. 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 year under review Distell`s revenue grew by 4,4% to R12,3 billion on
a sales volume increase of 2,4%. The trading environment remained extremely
challenging, characterised by heightened competitor activity, particularly from
the beer segment, increased competitor market investment and the ongoing
consumer pursuit of lower-priced options.
Although reasonable sales volume growth was achieved, the results for the year
under review were significantly affected by adverse exchange rates and, to a
lesser extent, a less favourable sales mix. Operating expenses increased by 4,6%
compared to revenue growth of 4,4%. Consequently, the net operating margin
deteriorated to 11,7% (2010: 11,8%). Distell`s headline earnings per share
increased by 1,6%.
Capevin Investments` results reflect the marginal increase in Distell`s profit
for the year under review. The company`s intrinsic value is calculated based on
Distell`s share price at 30 June 2011 (excluding capital gains tax).
PROSPECTS
The board of Distell said that fragile economic conditions persist. They believe
challenging trading conditions, especially in developed countries, will continue
in the year ahead, with unemployment and limited disposable income still
adversely impacting consumer spending. It is anticipated that future growth will
continue to be led by emerging markets.
Distell remains confident in its diverse and well-balanced brand portfolio. Its
brands are well accepted and are perceived as offering good value. In addition,
the portfolio is backed by excellent quality credentials, strong service levels
and well-established routes to market, enabling Distell to compete effectively
while maximising trading opportunities and profitability.
Refer to www.distell.co.za for Distell`s comprehensive annual results.
AUDITED FINANCIAL STATEMENTS
PricewaterhouseCoopers Inc. has audited the results for the year ended 30 June
2011 and their unqualified audit opinion on the annual financial statements and
the summarised financial statements contained herein, are available for
inspection at the company`s registered office.
These summarised financial statements, together with the annual financial
statements from which they have been derived, were compiled by Mr A Rossouw, a
Chartered Accountant (SA) and an employee of the company`s appointed manager,
PSG Corporate Services (Pty) Ltd.
DIVIDEND
In terms of the dividend policy of Capevin Investments, dividends received from
its indirect interest in Distell, after providing for administration costs, are
distributed to shareholders. The directors have consequently resolved to declare
a final ordinary dividend (dividend number 5) of 181,5 cents (2010: 182 cents)
per share for the year ended 30 June 2011.
The salient dates of this dividend distribution are:
Last day to trade cum dividend Friday, 16 September 2011
Trading ex dividend commences Monday, 19 September 2011
Record date Friday, 23 September 2011
Date of payment Monday, 26 September 2011
Share certificates may not be dematerialised or rematerialised between Monday,
19 September 2011 and Friday, 23 September 2011, both days inclusive.
ANNUAL GENERAL MEETING
The company`s annual general meeting will be held at PSG Group`s office situated
at 1st Floor, Ou Kollege, 35 Kerk Street, Stellenbosch on Thursday, 20 October
2011 at 09h00.
Signed on behalf of the board of directors
CA Otto A Wessels
Chairman Financial director
Stellenbosch
2 September 2011
Directors:
CA Otto (Chairman), A Wessels* (Financial director), AEvZ Botha, JJ Durand, JJ
Mouton, MH Visser
(* executive)
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: 02/09/2011 15:51:02 Supplied by www.sharenet.co.za
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