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CVI - Capevin Investments Limited - Unaudited interim results for the six months
ended 31 December 2011
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")
Unaudited interim results for the six months ended 31 December 2011
Headline earnings per share up 23,2% to R5,35
Intrinsic value per share up 4,9% to R104,78
Dividend per share up 15% to 198,4 cents
Group income statement
Unaudited Audited
six months ended year ended
31 December 30 June
2011 2010 2011
R`000 R`000 R`000
Share in profits of associate 225 462 183 347 279 168
Gain on dilution of interest in 951 896 1 726
associate
Interest income 96 98 192
Administrative expenses (727) (808) (1 568)
Profit before taxation 225 782 183 533 279 518
Taxation (26) (27) (54)
Profit for the period attributable to 225 756 183 506 279 464
equity holders of the company
Profit for the period attributable to 225 756 183 506 279 464
equity holders of the company
Non-headline items
Interest in adjustments of
associate, net of taxation 72 (31) 367
Gain on dilution of interest in
associate (951) (896) (1 726)
Headline earnings 224 877 182 579 278 105
Earnings per share (cents)
- Attributable (basic and diluted) 537,5 436,9 665,4
- Headline (basic and diluted) 535,4 434,7 662,2
Number of shares in issue and 42 000 42 000 42 000
weighted average (thousands)
Group statement of comprehensive income
Unaudited Audited
six months ended year ended
31 December 30 June
2011 2010 2011
R`000 R`000 R`000
Profit for the period attributable to 225 756 183 506 279 464
equity holders of the company
Share of other comprehensive 17 591 (9 633) (8 537)
income/(loss) of associate
Other equity movements of associate 2 089 2 265 4 411
Total comprehensive income 245 436 176 138 275 338
attributable to equity holders of the
company
Group statement of financial position
Unaudited Audited
31 December 30 June
2011 2010 2011
R`000 R`000 R`000
Assets
Non-current assets
Investment in associate 1 820 421 1 624 640 1 651 777
Current assets 1 323 982 289
Income tax receivable 4 4
Cash and cash equivalents 1 319 982 285
Total assets 1 821 744 1 625 622 1 652 066
Equity and liabilities
Equity attributable to owners of the
parent
Share capital 42 000 42 000 42 000
Reserves 1 778 669 1 582 579 1 609 396
Total equity 1 820 669 1 624 579 1 651 396
Current liabilities 1 075 1 043 670
Trade payables 472 458 90
Unclaimed dividends 603 558 580
Income tax payable 27
Total equity and liabilities 1 821 744 1 625 622 1 652 066
Net asset value per share (cents) 4 335 3 868 3 932
Group statement of changes in owners` equity
Unaudited Audited
six months ended year ended
31 December 30 June
2011 2010 2011
R`000 R`000 R`000
Ordinary shareholders` equity at 1 651 396 1 524 254 1 524 254
beginning of period
Total comprehensive income 245 436 176 138 275 338
Unclaimed dividends written back 67 627 694
Dividends paid (76 230) (76 440) (148 890)
Ordinary shareholders` equity at end 1 820 669 1 624 579 1 651 396
of period
Dividend per share (cents)
- Interim 198,4 172,5 172,5
- Final 181,5
Group statement of cash flows
Unaudited Audited
six months ended year ended
31 December 30 June
2011 2010 2011
R`000 R`000 R`000
Cash flows from operating activities
Administrative expenses (727) (808) (1 568)
Increase in payables and unclaimed 471 424 146
dividends
Cash utilised in operations (256) (384) (1 422)
Dividends received 77 450 77 450 150 205
Dividends paid (76 230) (76 440) (148 890)
Interest received 96 98 192
Taxation (paid)/received (26) 4 (54)
Net increase in cash and cash 1 034 728 31
equivalents
Cash and cash equivalents at 285 254 254
beginning of period
Cash and cash equivalents at end of 1 319 982 285
period
Notes to the interim financial statements
1. Basis of presentation and accounting policies
The interim 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 71
of 2008, as amended; and the Listings Requirements of the JSE Ltd. The
accounting policies applied in the preparation of these interim financial
statements are consistent with those used in the previous financial year,
and no new accounting standards, interpretations or amendments to IFRS were
relevant to the group`s operations.
Capevin Investments prepares "economic interest" financial statements in
which its interest in associate is equity accounted. These "economic
interest" financial statements are referred to as "group" financial
statements.
These unaudited interim financial statements have been compiled by Andro
Rossouw, CA (SA), an employee of the company`s appointed manager, PSG
Corporate Services (Pty) Ltd.
2. Group structure
The sole investment of Capevin Investments is an effective
interest of 29,02% (31 December 2010: 29,07% and 30 June 2011:
29,04%), held via Remgro-Capevin Investments Ltd, in the issued
share capital of Distell Group Ltd ("Distell").
3. Commitments and contingencies
The Distell group has received an assessment from the South African Revenue
Service for additional employees tax relating to the Distell Group`s share
incentive scheme. Distell obtained legal and tax specialist opinions on
this matter, which indicated that no provision is necessary and they have
consequently submitted an objection to this assessment. Capevin
Investments` interest in the amount that is at risk is R15,2 million
(excluding penalties and interest).
4. 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 six months under review, Distell`s revenue increased by 15,9%
to R8 billion, despite a challenging trading environment and the ongoing
consumer pursuit of lower-priced options. Distell`s cider and RTD
(ready-to-drink) brands continued their strong performance locally and
the company`s wine portfolio showed a marginal increase in sales volumes.
Both domestic and international sales volumes increased by approximately
10%. Results for the period under review were favourably impacted by a
weaker rand, which largely contributed to the net operating margin
improving to 14,6% (2010: 13,8%).
Capevin Investments` results reflect the increase in Distell`s
profitability during the period under review. The company`s intrinsic value
is calculated based on Distell`s last traded share price of R75 at 31
December 2011 (excluding capital gains tax).
PROSPECTS
The board of Distell believes challenging trading conditions, both
domestically and internationally, to continue in the short term, with
unemployment and limited disposable income to have an adverse impact on
household consumption expenditure. Foreign currency volatility could also
impact profitability. However, Distell is well positioned to take advantage
of any improvement in economic conditions.
Refer to www.distell.co.za for Distell`s comprehensive interim results.
DIVIDEND
In terms of the dividend policy of Capevin Investments, dividends received
from its indirect interest in Distell, after providing for administrative
expenses, will be distributed to shareholders. The directors have
consequently resolved to declare an ordinary dividend (dividend number 6)
of 198,4 cents (2010: 172,5 cents) per share for the six months ended 31
December 2011.
The salient dates of this dividend distribution are:
Last day to trade cum dividend Friday, 9 March 2012
Trading ex dividend commences Monday, 12 March 2012
Record date Friday, 16 March 2012
Date of payment Monday, 19 March 2012
Share certificates may not be dematerialised or rematerialised between Monday,
12 March 2012 and Friday, 16 March 2012, both days inclusive.
Signed on behalf of the board of directors
Chris Otto Adri Wessels
Chairman Financial director
Stellenbosch
17 February 2012
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: 17/02/2012 15:00:02 Supplied by www.sharenet.co.za
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