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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
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