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SPA - Spanjaard Limited - Unaudited interim group results for the six

Release Date: 27/10/2011 07:15
Code(s): SPA
Wrap Text

SPA - Spanjaard Limited - Unaudited interim group results for the six months ended 31 August 2011 and declaration of dividend Spanjaard Limited (Incorporated in the Republic of South Africa) Registration number 1960/004393/06 Share code: SPA ISIN: ZAE000006938 UNAUDITED INTERIM GROUP RESULTS FOR THE SIX MONTHS ENDED 31 AUGUST 2011 AND DECLARATION OF DIVIDEND CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME Six months Six months Twelve months to to to
31 August 31 August 28 February 2011 2010 2011 R`000 R`000 R`000 Revenue 50 507 48 478 102 421 Turnover 49 992 47 179 102 068 Cost of sales (30 492) (29 278) (61 585) Gross profit 19 500 17 901 40 483 Operating expenses (15 386) (13 373) (29 528) Depreciation and amortisation (984) (795) (1 859) Profit from operations 3 130 3 733 9 096 Finance (cost)/income - net (697) (442) (1 483) Profit before tax 2 433 3 291 7 613 Income tax expense (855) (1 053) (2 785) Profit 1 578 2 238 4 828 Other comprehensive income Movement in foreign currency 2 1 (305) translation reserve Gain on revaluation on freehold - - 2 851 land and buildings Tax effect - - (399) Total comprehensive income for 1 580 2 239 6 975 the year Earnings per ordinary share - basic and diluted (cents) 19,4 27,5 59,3 CONSOLIDATED STATEMENT OF FINANCIAL POSITION Six months Six months Twelve months to to to 31 August 31 August 28 February
2011 2010 2011 R`000 R`000 R`000 Assets Non-current assets 37 293 34 204 37 317 Property, plant and equipment 36 848 33 762 36 872 Goodwill 437 437 437 Intangibles 8 5 8 Current assets 38 671 38 257 34 638 Total assets 75 964 72 461 71 955 Equity and liabilities Total shareholders` equity 40 213 36 007 38 633 Ordinary shares and premium 6 871 6 871 6 871 Reserves 33 342 29 136 31 762 Non-current liabilities 11 636 13 808 12 304 Borrowings 8 210 10 362 8 792 Deferred tax liabilities 3 426 3 446 3 512 Current liabilities 24 115 22 646 21 018 Interest bearing 3 537 4 728 3 925 Non-interest bearing 20 578 17 918 17 093 Total equity and liabilities 75 964 72 461 71 955 CONSOLIDATED STATEMENT OF CASH FLOWS Six months Six months Twelve months to to to 31 August 31 August 28 February
2011 2010 2011 R`000 R`000 R`000 Cash flows from operating (581) (3 871) 3 748 activities Cash flows from investing (930) (11 781) (16 462) activities Cash flows from financing (2 264) 10 431 9 226 activities Net (decrease)/increase in cash (3 775) (5 221) (3 488) and cash equivalents Cash and cash equivalents at 2 373 5 861 5 861 beginning of year Cash and cash equivalents at end (1 402) 640 2 373 of year CONSOLIDATED STATEMENT OF CHANGES IN EQUITY Six months Six months Twelve months
to to to 31 August 31 August 28 February 2011 2010 2011 R`000 R`000 R`000
Ordinary shares 407 407 407 Share premium 6 464 6 464 6 464 Foreign currency translation (214) 100 (207) reserve Revaluation reserve 10 001 8 953 10 350 Retained earnings 23 555 20 083 21 619 Total shareholders` equity 40 213 36 007 38 633 Dividend declared per ordinary share (cents) - interim 10,0 15,0 15,0 - final - - 16,0 SUPPLEMENTARY INFORMATION Six months Six months Twelve months to to to 31 August 31 August 28 February 2011 2010 2011
R`000 R`000 R`000 Capital expenditure 960 11 873 13 525 OPERATING SEGMENTS Six months Six months Twelve months
to to to 31 August 31 August 28 February 2011 2010 2011 R`000 R`000 R`000
Segment revenue Special lubricants and allied 42 987 41 693 91 217 chemicals External customers 5 091 3 961 8 394 Local customers 37 896 37 732 82 823 Metal powders 6 826 6 225 14 034 External customers 3 249 2 961 6 824 Local customers 3 577 3 264 7 210 Other 2 465 2 345 7 320 External customers 2 465 2 345 7 320 Reconciling items (2 286) (3 084) (10 503) External customers (476) (1 189) (2 450) Local customers (1 810) (1 895) (8 053) 49 992 47 179 102 068 Segment result Special lubricants and allied 2 327 3 955 5 650 chemicals Metal powders 523 25 436 Other 280 (248) (914) Reconciling items - 1 3 924 3 130 3 733 9 096 Segment assets Special lubricants and allied 52 353 52 787 47 624 chemicals Metal powders 8 696 16 361 9 106 Other 27 613 25 268 21 195 Reconciling items (12 698) (21 955) (5 970) 75 964 72 461 71 955
Segment liabilities Special lubricants and allied 26 325 28 375 21 456 chemicals Metal powders 2 074 10 580 2 967 Other 19 327 18 749 15 832 Reconciling items (11 975) (21 250) (6 933) 35 751 36 454 33 322 RECONCILIATION OF HEADLINE EARNINGS Six months Six months Twelve months to to to 31 August 31 August 28 February 2011 2010 2011
R`000 R`000 R`000 Profit attributable to 1 578 2 238 4 828 shareholders (Profit) on disposal of - - (54) property, plant and equipment Income tax effect on disposal - - 15 Headline earnings 1 578 2 238 4 789 Weighted average number of 8 143 8 143 8 143 ordinary shares in issue (`000) Headline earnings per ordinary share - basic and diluted (cents) 19,4 27,5 58,8 BASIS OF PREPARATION The condensed consolidated interim results have been prepared in accordance with IAS 34 Interim Financial Reporting, AC 500 standards as issued by the Accounting Practices Board and in the manner required by the South African Companies Act, 2008. The condensed consolidated interim financial statements are prepared on the historical cost basis, with the exception of certain financial instruments which are measured at fair value. Accounting policies and methods of computation are consistently applied as in the 2011 financial statements. Condensed consolidated interim financial statements prepared by: HJ van Heerden - B. Com (Acc). Condensed consolidated interim financial statements date of publication - 27 October 2011. COMMENTARY POINTS OF INTEREST TO THE CORRESPONDING PERIOD LAST YEAR - Net asset value has increased from 442,2 cents to 493,8 cents per share - Group turnover is up by 6% - Gross profit percentage has showed a marginal improvement of 1% to 39% EXECUTIVE CHAIRMAN`S STATEMENT We are pleased to report a strong start to the 2012 financial year. We have seen growth in our local industrial market, although the recovery in the automotive industry seems slow. We expect to see both local divisions continue their strong performance in the second half of the 2012 financial period. Whilst the international division showed improved sales volumes, the strength of the Rand against major currencies continued to have a negative effect on profitability. Likewise a continuation of current exchange rate levels will have a positive effect on our results. Profit is down by 29% to the corresponding period last year largely due to the increase in administrative expenses. These expenses were necessary to streamline the day-to-day operations of the business and we expect to reap the rewards of these expenses in the near future. We are expanding our product range in the second half of the year with various projects being launched. There have been no material related party transactions during the period under review. SEGMENTAL ANALYSIS The special lubricants and allied chemicals division has performed consistently with the corresponding period last year. The metal powders segment showed an improvement of 10% to the corresponding period last year. This was mainly due to improved working capital management and the recovery seen in the worldwide friction industry. DIVIDEND Notice is hereby given that the Board of Directors has declared dividend No. 20 of 10 (ten) cents per ordinary share for the six months ended 31 August 2011. The last day to trade cum dividend is Friday, 11 November 2011, payable to all shareholders of Spanjaard Limited recorded in the books of the company at the close of business on Friday, 18 November 2011. Shares will commence trading ex dividend from Monday, 14 November 2011. The dividend is payable on Monday, 21 November 2011. Share certificates may not be dematerialised or rematerialised between Monday, 14 November 2011 and Friday, 18 November 2011, both days inclusive. By order of the Board ML Bond Company Secretary 27 October 2011 Directors: RJW Spanjaard (Executive Chairman) E Nepgen (Managing Director) GF Cort BL Montgomery* CKT Palmer SA Pretorius Dr DP van der Nest* HJ van Heerden (Financial Director) *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: sales@spanjaard.biz Website: www.spanjaard.biz Date: 27/10/2011 07:15:02 Supplied by www.sharenet.co.za Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.

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