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SPA - Spanjaard Limited - Condensed Group Audited results for the year ended 29
February 2012
Spanjaard Limited
(Incorporated in the Republic of South Africa)
Registration number 1960/004393/06
Share code: SPA ISIN: ZAE000006938
("Company" or "Group")
CONDENSED GROUP AUDITED RESULTS FOR THE YEAR ENDED 29 FEBRUARY 2012
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Year ended Year ended
29 February 28 February
2012 2011
R`000 R`000
Revenue 112 953 102 421
Turnover 112 637 102 068
Cost of sales (69 620) (61 585)
Gross profit 43 017 40 483
Operating expenses (31 790) (29 528)
Depreciation and amortisation (2 427) (1 859)
Profit from operations 8 800 9 096
Finance cost - net (1 415) (1 483)
Profit before tax 7 385 7 613
Income tax expense (3 047) (2 785)
Profit 4 338 4 828
Other comprehensive income
Movement in foreign currency translation 114 (305)
reserve
Gain on revaluation on freehold land and - 2 851
buildings
Tax effect - (399)
Total comprehensive income for the year 4 452 6 975
Earnings per ordinary share
- basic and diluted (cents) 53,3 59,3
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at As at
29 February 28 February
2012 2011
R`000 R`000
Assets
Non-current assets 36 422 37 317
Property, plant and equipment 35 978 36 872
Goodwill 437 437
Intangibles 7 8
Current assets 39 872 34 638
Total assets 76 294 71 955
Equity and liabilities
Equity attributable to the owners of the 40 805 38 633
Company
Ordinary shares and premium 6 871 6 871
Reserves 33 934 31 762
Non-current liabilities 11 517 12 304
Borrowings 7 603 8 792
Deferred tax liabilities 3 914 3 512
Current liabilities 23 972 21 018
Interest-bearing 3 355 3 925
Non-interest-bearing 20 617 17 093
Total equity and liabilities 76 294 71 955
Number of ordinary shares in issue (`000) 8 143 8 143
Net asset value per share (cents) 501,1 474,4
CONSOLIDATED STATEMENT OF CASH FLOW
Year ended Year ended
29 February 28 February
2012 2011
R`000 R`000
Cash flows from operating activities 547 3 748
Cash flows from investing activities 310 (16 462)
Cash flows from financing activities (1 752) 9 226
Net decrease in cash and cash equivalents (895) (3 488)
Cash and cash equivalents at beginning of 2 373 5 861
year
Cash and cash equivalents at end of year 1 478 2 373
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
As at As at
29 February 28 February
2012 2011
R`000 R`000
Ordinary shares 407 407
Share premium 6 464 6 464
Reserves 33 934 31 762
Foreign currency translation reserve (93) (207)
Revaluation reserve 9 630 10 350
Retained earnings 24 397 21 619
Total shareholders` equity 40 805 38 633
DIVIDENDS
Dividend declared per ordinary share (cents)
- interim 10,0 15,0
- final 18,0 16,0
SUPPLEMENTARY INFORMATION
Year ended Year ended
29 February 28 February
2012 2011
R`000 R`000
Capital expenditure 1 533 13 525
OPERATING SEGMENTS
Year ended Year ended
29 February 28 February
2012 2011
R`000 R`000
Segment revenue
Special Lubricants and Allied Chemicals 102 912 91 217
External foreign customers 6 844 8 394
External local customers 96 068 82 823
Metal Powders 14 346 14 034
External foreign customers 6 603 6 824
External local customers 7 743 7 210
Other 4 620 7 320
External foreign customers 4 620 7 320
Reconciling items (9 241) (10 503)
External foreign customers (1 848) (2 450)
External local customers (7 393) (8 053)
112 637 102 068
Segment result
Special Lubricants and Allied Chemicals 4 253 5 650
Metal Powders 1 097 436
Other (524) (914)
Reconciling items 3 974 3 924
8 800 9 096
Segment assets
Special Lubricants and Allied Chemicals 52 004 47 624
Metal Powders 9 641 9 106
Other 26 619 21 195
Reconciling items (11 970) (5 970)
76 294 71 955
Segment liabilities
Special Lubricants and Allied Chemicals 25 437 21 456
Metal Powders 2 347 2 967
Other 18 856 15 832
Reconciling items (11 151) (6 933)
35 489 33 322
RECONCILIATION OF HEADLINE EARNINGS
Year ended Year ended
29 February 28 February
2012 2011
R`000 R`000
Profit attributable to shareholders 4 338 4 828
Profit on disposal of property, plant and - (54)
equipment
Income tax effect on disposal - 15
Headline earnings 4 338 4 789
Weighted average number of ordinary shares in 8 143 8 143
issue (`000)
Headline earnings per ordinary share
- basic and diluted (cents) 53,3 58,8
BASIS OF PREPARATION
The audited condensed consolidated results have been prepared in accordance with
the Framework concepts and the measurement and recognition requirements of the
International Financial Reporting Standards and containing information required
by IAS 34 - Interim Financial Reporting, and in the manner required by the South
African Companies Act.
The condensed financial statements should be read in conjunction with the 2012
financial statements.
The annual financial statements were audited in terms of the Companies Act.
Condensed group audited results prepared by: HJ van Heerden - B. Com (Acc).
Condensed group audited results date of publication - 10 May 2012.
COMMENTARY
POINTS OF INTEREST
- Net profit after tax is down by 10%
- Net asset value has increased from 474,2 cents to 501,1 cents per share
- Group turnover is up by 10%
- Gross profit is up by 6%
GENERAL REVIEW
We are pleased to announce an acceptable performance in a year that has
presented more challenges than normal.
In respect of the South African market, our main operating segments showed
improvement. The Industrial Special Lubricants division performed exceptionally
well with 22% growth in revenue. Our local Automotive division continues to show
growth of 14% for the year.
The increase in depreciation and amortisation was as a result of the new
production facilities being in operation for a full year. Cash flows from
operating activities decreased due to the additional investment in working
capital while the repayment of the loan to the holding company led to a drop in
cash flows from investing activities.
In our international markets, competition is fierce and this coupled with the
strength of the Rand exchange rate against major foreign currencies, the Rand
value of our export sales was affected negatively.
To complete the picture, a 9% increase in operating expenses was also a
contributor to the 10% reduction in net profit after tax.
Under the circumstances we believe that this has been a good year for the
Company.
We are excited to announce that we are on the brink of introducing new products
to the South African market which should have a positive effect on revenue in
the future.
There have been no material related party transactions during the year under
review.
There have been no unusual subsequent events between the date of the annual
financial statements and the date of publication.
SEGMENTAL ANALYSIS
The Special Lubricants and Allied Chemicals division has shown a 13% increase in
turnover which is satisfactory, although the decrease in net profit after tax is
disappointing.
Metal Powder segment - by paying special attention to containing costs, the
metal powder segment was able to report a 152% increase in their net profit
after tax on a turnover improvement of only 2%.
DIVIDENDS
Interim dividend (No. 20) of 10 cents per ordinary share was declared on 21
October 2011. The total actual dividends paid on the interim dividend
declaration amounted to R814 285. Secondary Tax on Companies resulting from the
interim declaration amounted to R81 429.
Final dividend (No. 21) of 18 cents per ordinary share was declared on 29
February 2012. The last day to trade cum dividend is Friday, 18 May 2012,
payable to all shareholders of Spanjaard Limited recorded in the books of the
Company at the close of business on Friday, 25 May 2012. Shares will commence
trading ex dividend from Monday, 21 May 2012. The dividend is payable on Monday,
28 May 2012. Share certificates may not be dematerialised or rematerialised
between Monday, 21 May 2012 and Friday, 25 May 2012, both days inclusive. This
dividend amounts to R1 465 713 and the Secondary Tax on Companies resulting from
the final declaration amounts to R146 571.
AUDIT OPINION
Mazars have audited the annual financial statements for the year ended 29
February 2012 and their unqualified audit report is available for inspection at
the Company`s registered office.
By order of the Board
Ms Sonia F Venter
Company Secretary
10 May 2012
Directors:
RJW Spanjaard (Executive Chairman)
Ms E Nepgen (Managing Director)
GF Cort
Mrs S Hari*
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
Email: info@spanjaard.biz
Website: www.spanjaard.biz
Date: 10/05/2012 07:05:01 Supplied by www.sharenet.co.za
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