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CUL - Cullinan Holdings Ltd - Audited condensed consolidated results for the

Release Date: 29/12/2011 16:37
Code(s): CUL CULP
Wrap Text

CUL - Cullinan Holdings Ltd - Audited condensed consolidated results for the year ended 30 September 2011 CULLINAN HOLDINGS LTD TOURISM AND LEISURE (Incorporated in the Republic of South Africa) Registration number: 1902/001808/06 (Share code: CUL ISIN: ZAE000013710) (Preference Share code: CULP ISIN: ZAE000001947) ("Cullinan" or "the company" or "the group") AUDITED CONDENSED CONSOLIDATED RESULTS FOR THE YEAR ENDED 30 SEPTEMBER 2011 GROUP FINANCIAL HIGHLIGHTS Headline earnings - down 18% Attributable earnings - down 21% Cash generated in the year - R81m Group condensed statement of financial position As at As at
30 September 30 September 2011 2010 R`000 R`000 ASSETS Non-current assets 123 258 132 359 Property, plant and equipment 58 702 65 710 Goodwill 33 786 33 601 Intangible assets 18 043 22 720 Investment properties 5 700 3 900 Investment in associate companies 2 952 3 166 Investment in joint venture 2 764 1 983 Deferred tax asset 1 311 1 279 Current assets 314 963 253 602 Inventories 18 165 17 033 Accounts receivable 110 575 136 144 Other financial asset 4 395 - Taxation 1 999 2 156 Cash and cash equivalents 179 829 98 269 Non-current assets held for sale 2 200 4 000 Total assets 440 421 389 961 EQUITY AND LIABILITIES Ordinary shareholders` equity 161 139 138 704 Preference shareholders` equity 546 546 Non-controlling interest 19 1 Total shareholders` equity 161 704 139 251 Non-current liabilities 17 373 15 538 Deferred tax liability 5 200 3 603 Operating lease accrual 11 673 11 435 Preference shares 500 500 Current liabilities 261 344 235 172 Bank overdrafts 243 - Operating lease accrual 31 23 Accounts payable 259 572 225 817 Other financial liabilities - 1 801 Taxation 67 1 055 Preference dividends 15 14 Provisions 1 416 6 462 Total equity and liabilities 440 421 389 961 Group condensed statement of comprehensive income Year ended Year ended
30 September 30 September 2011 2010 R`000 R`000 Revenue 393 747 405 069 Turnover 390 783 401 069 Net operating expenses (363 531) (367 729) Operating profit 27 252 33 340 Finance income 2 964 4 000 Finance expenses (151) (56) Preference dividends paid (55) (55) Share of (loss) / profit of associates (214) 330 Share of profit of joint venture 781 742 Profit before taxation 30 577 38 301 Tax expense (8 502) (10 445) Profit for the year 22 075 27 856 Other comprehensive income: Exchange differences on translating foreign operations (228) (10) Revaluation of land and buildings 606 (600) Total comprehensive income for the year 22 453 27 246 Profit attributable to: equity holders 22 057 27 794 non-controlling interest 18 62 Total comprehensive income attributable to: equity holders 22 435 27 184 non-controlling interest 18 62 Earnings per share (cents) 3.07 3.87 Diluted earnings per share (cents) 3.07 3.87 Group condensed statements of changes in equity Year ended Year ended 30 September 30 September 2011 2010
R`000 R`000 Ordinary share capital Balance at beginning of year 7 184 7 184 Balance at end of year 7 184 7 184 Share premium Balance at beginning of year 59 905 59 905 Balance at end of year 59 905 59 905 Share capital reduction reserve fund Balance at beginning of year 20 876 20 876 Balance at end of year 20 876 20 876 Capital redemption reserve fund Balance at beginning of year 4 4 Balance at end of year 4 4 Foreign currency translation reserve Balance at beginning of year (1 583) (1 573) Reserve on translation of foreign subsidiary (228) (10) Balance at end of year (1 811) (1 583) Revaluation reserve Balance at beginning of year 264 864 Revaluation of land and buildings 606 (600) Balance at end of year 870 264 Accumulated profit / (loss) Balance at beginning of year 52 054 24 260 Attributable income for year 22 057 27 794 Balance at end of year 74 111 52 054 Ordinary shareholders` equity 161 139 138 704 Non-controlling interest Balance at beginning of year 1 5 Profit attributable to non-controlling interest for year 18 62 Dividend paid to non-controlling interest - (66) Balance at end of year 19 1 Preference shareholders` equity Balance at beginning of year 500 500 Balance at end of year 500 500 Total comprehensive income Profit for year 22 075 27 856 - Attributable to equity shareholders 22 057 27 794 - Attributable to non-controlling interest 18 62 Translation of foreign subsidiary (228) (10) Revaluation of land and buildings 606 (600) 22 453 27 246 Group condensed statement of cash flows Year ended Year ended 30 September 30 September
2011 2010 R`000 R`000 Net cash inflow / (outflow) from operating activities 85 490 62 529 Net cash outflow from investing activities (4 173) (23 618) Net cash outflow from financing activities - (37 172) Net (decrease) / increase in cash and cash equivalents 81 317 1 739 Cash and cash equivalents at beginning of the year 98 269 96 530 Cash and cash equivalents at end of the year 179 586 98 269 Notes 1 Basis of preparation This abridged report is prepared in accordance with the Framework concepts and the measurement and recognition requirements of IFRS and the AC 500 standards issued by the Accounting Practices Board and contains the information required by IAS 34 Interim Financial Reporting. The condensed consolidated results for the year are prepared on the historical cost basis, with the exception of certain financial instruments and properties which are measured at fair value. The policies and methods of calculation are consistent with those of the most recently issued annual financial statements and should be read in conjunction with these Financial Statements which have been prepared in compliance with the Companies Act, 2008. 2 Property, plant and equipment During the year the group purchased property, plant and equipment of R12.235 million (2010: R27.068 million) and disposed of property, plant and equipment with a book value of R8.702 million (2010: R0.623 million). 3 Notes to the statement of comprehensive income Year ended Year ended 30 September 30 September 2011 2010
Ordinary shares (`000) - In issue 718 355 718 355 - Weighted average 718 355 718 355 R`000 R`000
Determination of headline earnings: Earnings attributable to ordinary shareholders 22 057 27 794 Adjustment to fair value on investment properties - (560) Tax effect - 78 Profit / (Losses) on disposal of property, plant and equipment 105 (535) Tax effect (29) 131 Headline Earnings 22 133 26 908 Headline earnings per share (cents) 3.08 3.75 Diluted headline earnings per share (cents) 3.08 3.75 Dividends per share (cents) - - 4 Related parties The group`s head offices and the Thompsons Johannesburg operation in Rosebank are leased from Motolla Property Investments (Pty) Limited, an entity to which one of the group`s shareholders, Travcorp Investments Limited, is a related party. The registered office and Central Boating premises are also leased from Motolla Property Investments (Pty) Limited. Rentals paid to Motolla for the year were market related and amounted to R8.653 million (2010: R7.288 million). 5 Audit The results have been audited by the Group`s auditors, Mazars. Their unqualified audit report is available for inspection at the company`s registered office. 6 Segmental reporting Tour Coaching Retail Marine and Head Operators and Touring Travel Boating Office
R`000 R`000 R`000 R`000 R`000 30 September 2011 Revenue 147 274 97 842 101 589 46 831 211 Operating profit 21 340 9 977 13 380 (408) (17 037) 30 September 2010 Revenue 143 759 125 121 88 875 49 837 (2 523) Operating profit 20 982 20 820 4 289 2 298 (15 049) 7 Contingent liabilities In the preceding year, the company received a summons from the Powerpack Pension Fund (in liquidation) claiming payment of approximately R45 million plus interest relating to pension fund transactions during 1999. Cullinan disputes liability and will be defending the claim. Details regarding this matter have been disclosed in the notes of the company`s 2011 annual financial statements. Annual Financial Statements These group condensed financial statement extracts should be read in conjunction with the audited Annual Financial Statements issued on the 28th December 2011. The Group Financial statements were prepared by D Standage, the Financial Director of the Group. Annual General Meeting The annual general meeting of Shareholders will be held in the boardroom, 2nd floor, Travel House, 6 Hood Avenue, Rosebank at 10-00 on the 23rd February 2012 to transact the business as stated in the annual general meeting notice forming part of the Integrated Annual Report. Overview It gives me great pleasure to report on the results for the Cullinan Group of Companies for the year ended 30 September 2011. The results reflect the tough economic conditions being experienced worldwide, but it is pleasing to note that despite this, most operating divisions improved their performance. The business also generated significant cash flows with cash on hand at year end increasing by 183% to R179m, boosted by good cash management and strong inflows from the COP17 accommodation contract awarded to Thompsons Africa. The Group also continued to search for opportunities to expand and entered into a number of new ventures during the year, which are expected to come on stream and contribute in 2012. These include the appointment of Thompsons Africa as the approved Accommodation provider for COP17, acquisition of Ikapa Tours and Travel and the appointment of Cullinan to run Naiade Holidays. Performance Overview The group saw a 18% decline in headline earnings per share, primarily due to the decrease in revenue in the Inbound and Coaching divisions. These divisions felt the effects of tough economic conditions worldwide and the impact of the strong Rand on Inbound Tourism. In addition, the prior year comparatives were boosted by the World Cup which contributed strongly to both the Inbound and Coaching divisions revenue in 2010. Conversely, the continuing improvement in product, efficiency and management of the Outbound and Retail Travel businesses, assisted by the resilient local economy and strength of the Rand, resulted in a very good performance from these divisions. The Marine businesses continue to struggle in the depressed boating market which has resulted in decreased revenue and pressure on margins. Prospects The prospects for the Cullinan Group in 2012 are positive. While external challenges exist due to factors such as the weak global economy, we are satisfied that our business units are well managed and prepared for the year ahead. Our well balanced portfolio of inbound and outbound businesses provides diversfication of risk against external factor such as the movement in the Rand. The group will also start to see the benefits of the various acquisitions and business opportunities entered into in the latter part of the 2011 Financial year. Lastly, based upon the improvements in the business and the improved financial position of the group and together with our positive view of the year ahead, the Group will continue to actively look for acquisitions. The Group also intends to resume its dividend policy which was suspended in 2008 with the intention to resume payments of dividends in 2012. On Behalf of the Board M Tollman D Standage Executive Chairman Financial Director Auditors Mazars were re-elected as auditors in 2011 Sponsor ArcayMoela Sponsors (Pty) Limited (Registration number 2006/033725/07) Directors M Tollman, MA Ness *$, DD Hosking **, LA Pampallis, G Tollman***, DK Standage, DT Madlala $, R Arendse $, S Nhumayo $, A Azoulay $ * British, ** New Zealand, *** USA, Non-Executive, $ Independent Non- Executive. Company secretary B Allison Registered office 6 Hood Avenue, Rosebank, 2196 Transfer secretaries Computershare Investor Services (Pty) Limited, Ground Floor, 70 Marshall Street, Johannesburg, 2001 (PO Box 61051, Marshalltown, 2107) For further information on group activities, please write to: The Company Secretary, Cullinan Holdings Limited, PO Box 41032, Craighall, 2024 Date: 29/12/2011 16:37:01 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. 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