To view the PDF file, sign up for a MySharenet subscription.

CKS - Crookes Brothers Limited - Abridged audited group results for the year

Release Date: 29/05/2012 15:00
Code(s): CKS
Wrap Text

CKS - Crookes Brothers Limited - Abridged audited group results for the year ended 31 March 2012 and final dividend declaration CROOKES BROTHERS LIMITED Registration No. 1913/000290/06 Share code : CKS ISIN: ZAE000001434 ("Crookes" or "the Company" or "the Group") ABRIDGED AUDITED GROUP RESULTS FOR THE YEAR ENDED 31 MARCH 2012 AND FINAL DIVIDEND DECLARATION The audited results of the group for the year ended 31 March 2012 together with those of the previous year are set out below: ABRIDGED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 31 March 31 March (R000`s) Note 2012 2011 Revenue 361 964 298 303 Operating profit 98 345 25 794 Share of profit of associate companies 120 51 Investment income 1 9 722 5 412 Finance costs (3 467) (4 353) Capital items 4 627 93 741 Profit before taxation 109 347 120 645 Taxation expense (27 163) (7 439) Profit for the year 82 184 113 206 Other comprehensive loss Investment revaluation 1 (1 516) 1 542 Exchange differences on translating foreign operations (160) (2 646) Other comprehensive loss for the year, net of tax (1 676) (1 104) Total comprehensive income for the year 80 508 112 102 Profit attributable to: Owners of the company 78 261 112 828 Non-controlling interests 3 923 378 82 184 113 206 Total comprehensive income attributable to: Owners of the company 76 585 111 724 Non-controlling interests 3 923 378 80 508 112 102 Note: 1. includes dividend in specie of Pioneer shares from Overberg Agri Limited of R3.661 million, in turn reducing the revaluation reserve. These shares were held for sale at year-end. Earnings per share Earnings per share (basic) (cents) 631.9 911.0 Earnings per share (diluted) (cents) 627.1 905.5 Dividends per share Ordinary dividends declared per share (cents) - interim 65.0 45.0 Ordinary dividends declared per share (cents) - final 135.0 65.0 Special dividends declared per share (cents) 0.0 50.0 200.0 160.0
RECONCILIATION OF HEADLINE EARNINGS 31 March 31 March (R000`s) 2012 2011 Profit for the year 78 261 112 828 Capital profit on disposal of land, buildings and biological assets (4 627) (93 741) Profit on disposal of plant and equipment (436) (499) Tax effect of the adjustments (343) 6 662 Headline earnings 72 855 25 250 Headline earnings per share Headline earnings per share (cents) 588.3 203.9 Headline earnings per share (diluted) (cents) 583.8 202.6 ABRIDGED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 31 March 31 March (R000`s) 2012 2011 Shareholders` equity at beginning of year 439 056 341 705 Movements in: Share-based payment reserve 131 112 Other comprehensive loss for the year (1 676) (1 104) Changes in retained earnings 66 084 98 343 Net profit attributable to shareholders 82 184 113 206 Dividends paid (16 100) (14 863) Shareholders` equity at end of year 503 595 439 056 ABRIDGED CONSOLIDATED STATEMENT OF FINANCIAL POSITION 31 March 31 March (R000`s) 2012 2011 ASSETS Non-current assets 370 916 295 621 Property, plant and equipment 236 952 177 847 Bearer biological assets 116 000 101 730 Unlisted investments 3 769 5 576 Investment in associate companies 13 257 9 818 Unsecured loan - long term 938 650 Current assets 359 940 303 664 Inventories 25 467 19 348 Biological assets - crops and livestock 164 380 123 677 Trade and other receivables 43 818 18 358 Taxation 1 572 5 466 Cash and cash equivalents 19 383 7 811 Other financial assets 101 756 129 004 Assets classified as held for sale 3 564 - Total assets 730 856 599 285 EQUITY AND LIABILITIES Capital and reserves 503 595 439 056 Share capital and premium 3 208 3 208 Retained earnings 496 039 433 878 Investment revaluation reserve 3 615 5 131 Foreign currency translation reserve (3 673) (3 513) Share-based payment reserve 551 420 Shareholders` interest 499 740 439 124 Non-controlling interests 3 855 (68) Non-current liabilities 147 473 116 928 Deferred taxation 71 456 53 103 Long-term borrowings - interest-bearing 16 373 6 559 Long-term liability - interest-free 45 174 41 076 Post-employment obligations 14 470 16 190 Current liabilities 79 788 43 301 Trade and other payables and provisions 38 642 20 755 Short term borrowings - interest-bearing 41 146 22 546 Total equity and liabilities 730 856 599 285 Net asset value per share (cents) 4 066 3 545 ABRIDGED CONSOLIDATED STATEMENT OF CASH FLOWS 31 March 31 March (R000`s) 2012 2011 Operating profit 98 345 25 794 Adjustment for non-cash items (31 149) 16 991 67 196 42 785 Net working capital changes (4 986) (1 224) Cash generated from operations 62 210 41 561 Cash flows from operating activities 53 274 16 738 Cash generated from operations 62 210 41 561 Finance costs (3 467) (4 353) Taxation paid (5 469) (20 470) Cash flows from investing activities (58 114) 55936 Proceeds on disposal of property, plant, equipment and biological assets 1 035 20 1568 Net proceeds of other financial assets 24 730 (128 915) Acquisition of property, plant, equipment and biological assets (78 903) (20539) Expansion of area under crop (10 623) - Other investing activities 5 647 3 822 Cash flows from financing activities 16 412 (68 201) Dividends paid (16 100) (14 862) Net increase/(decrease) in borrowings 32 512 (53 339) Net increase in cash and cash equivalents 11 572 4 473 Cash and cash equivalents at beginning of year 7 811 3 338 Cash and cash equivalents at end of year 19 383 7 811 Cash flow from operating activities - per share (cents) 430.1 135.1 OTHER GROUP SALIENT FEATURES 31 March 31 March (R000`s) 2012 2011 Depreciation 13 974 13 742 Capital expenditure 76 149 20 441 Capital commitments - Contracted 9 347 4 699 - Authorised but not contracted 53 018 12 700 62 365 17 399
Guarantees 771 700 Contingent assets - disputed interest on capital sale 28 900 25 300 Number of shares in issue 12 385 000 12 385 000 Weighted average number of shares on which earnings per share (and headline earnings per share) are based 12 385 000 12 385 000 ABRIDGED CONSOLIDATED SEGMENTAL ANALYSIS 31 March 31 March (R000`s) 2012 2011 Revenue Sugar cane 225 808 171 858 Bananas 51 700 50 359 Deciduous fruit 52 468 45 937 Grain and sheep 19 450 13 710 Other operations 12 538 16 439 361 964 298 303 Operating profit/loss) Sugar cane 98 700 46 344 Bananas 7 463 2 630 Deciduous fruit 10 452 (586) Grain and sheep 8 059 4 572 Other operations/sundry income 4 305 1 657 Profit on disposal of plant and equipment 436 499 Group administration (31 070) (29 322) 98 345 25 794
Preparer of annual financial statements for the year ended 31 March 2012: These abridged annual financial statements have been prepared by Phillip Barker (BA, ACMA) Group Financial Director ACCOUNTING POLICIES The abridged financial information has been prepared in accordance with the framework concepts and the measurement and recognition requirements of International Financial Reporting Standards (IFRS), the AC 500 standards as issued by the Accounting Practices Board, the information as required by the International Accounting Standards Board`s IAS 34: Interim Financial Reporting and the JSE Limited`s Listing Requirements. The report has been prepared using accounting policies that comply with IFRS which are consistent with those applied in the financial statements for the year ended 31 March 2011. For a better understanding of the Group`s financial position and the results of its operations for the period and of the scope of the audit, the abridged financial statements should be read in conjunction with the financial statements from which the abridged financial statements were derived and the audit report thereon. AUDITED RESULTS The auditors, Deloitte & Touche, have issued their opinion on the group`s financial statements for the year ended 31 March 2012. The audit was conducted in accordance with International Standards on Auditing and in compliance with all requirements of the Companies Act, No 71 of 2008. They have issued an unmodified audit opinion. A copy of their report is available for inspection at the company`s registered office. These abridged financial statements have been derived from the group financial statements and are consistent in all material respects with the group financial statements. Any reference to future financial performance included in this announcement has not been reviewed or reported on by the auditors. POST BALANCE SHEET EVENTS There have been no material events between the balance sheet date and the date of this report. COMMENTS ON THE RESULTS The group achieved record headline earnings in the past financial year, mainly due to increased sugar cane production, significantly higher prices for major products and successful resolution of underperforming operations. Group revenue increased from R298 million in 2011 to R362 million, operating profit from R25.8 million to R98.3 million and headline earnings from R25.3 million to R72.9 million. Earnings decreased from R113.2 million to R82.2 million largely due to the recognition in the prior reporting period of capital profits realised on the sale of the Komati Estate to the National Department of Land Affairs. Operating cash flow improved from R16.7 million in 2011 to R53.3 million and, at the end of the financial year, the group`s aggregate of cash holdings and redeemable investments was R121 million. Sugar cane - Favourable climatic conditions in most areas assisted the recovery of sugar cane production to previous highs despite the continuing effect of the drought on the group`s KZN coastal estates. Substantial increases in yields were recorded on our larger estates in Mpumalanga and Swaziland. Prices in all the markets in which we operate showed significant improvement over those received in the previous season. Deciduous - Financial results continue to be adversely affected by the high level of replanting and development currently being undertaken in this division. Firmer prices have resulted in an improved performance. As previously indicated, long term prospects remain positive. Bananas - The improvement in product quality and higher prices offset lower production from reduced area under crop as a result of the current replant programme, the benefits of which will be realised in the next financial year. Grain and Sheep - Substantially higher grain yields, due to excellent growing conditions, more than offset the negative effect of lower prices. The sheep operation experienced another good year with mutton and wool prices continuing to climb. Renishaw - The evaluation of the 1 800 hectare Renishaw cane farms for property development potential is progressing with the recent submission by Renishaw Property Developments (Pty) Limited to the Department of Agriculture, Environmental Affairs and Rural Development of the Environmental Impact Assessment for mixed use development. The land claim over a portion of this property is subject to continuing negotiation. Investment activities The following activities have been concluded in the year under review: - Expansion of the area under sugar cane on the existing Swaziland estate by 493 hectares; - Purchase of 2 farms, totalling 253 hectares under sugar cane, in Mpumalanga; - Lease of a farm in the Malelane area of Mpumalanga, with 85 hectares under sugar cane; - Addition of 190 hectares of sugar cane area on leased land at the KwaCele Farming joint venture in KwaZulu-Natal, funded by grants to the community property trust; - Expansion of the deciduous fruit orchards in the Western Cape by a further 40 hectares - Disposal of the deciduous fruit farm Belleview, 43 hectares in extent, to the Department of Rural Development and Land Reform; and - Approval of an agreement for a 50-year lease of 3 000 hectares of irrigable land in Mozambique for macadamia nut and grain production. Prospects Projects now being implemented or under consideration should provide a platform for strong growth in the medium term. With the substantial cash resources available for investment, the group is well positioned to undertake an expansion into Southern Africa in line with its strategic objectives. DECLARATION OF FINAL CASH DIVIDEND The board has declared a final gross cash dividend of 135.0 cents per share in respect of the year ended 31 March 2012. In respect of the normal final gross cash dividend, the following further information is provided to shareholders in respect of the new dividends tax: - The dividend has been declared from income reserves - Secondary tax on companies (STC) credits available amount to 4.1 cents per share - The dividend withholding tax rate is 15% resulting in a net dividend of 115.365 cents per share to those shareholders who are not exempt from the dividend withholding tax - The Crookes Brothers Limited tax reference number is 9696/001/71/9 - The issued number of shares as at declaration date is 12 385 000. The final dividend will be paid on Monday, 16 July 2012 to shareholders recorded in the books of the company at the close of business on the record date, Friday, 13 July 2012. The salient dates relating to the ordinary dividend are as follows: Last day to trade cum the dividend Friday, 6 July 2012 Shares commence trading ex the dividend Monday, 9 July 2012 Record date Friday, 13 July 2012 Payment date of the dividend Monday, 16 July 2012 Share certificates may not be dematerialised or rematerialised between Monday, 9 July 2012 and Friday, 13 July 2012, both days inclusive. The above dividend is in addition to the interim dividend of 65.0 cents per share which was declared on 29 November 2011 and brings the aggregate dividend in respect of the year ended 31 March 2012 to 200.0 cents (2010: 160.0 cents) per share. NOTICE OF THE ANNUAL GENERAL MEETING AND POSTING OF ANNUAL REPORT The annual report will be posted to shareholders on or about 30 June 2012. Notice is hereby given that the annual general meeting of the company will be held at 12:00 on 27 July 2012, at the Durban Country Club, to transact the business as stated in the annual general meeting notice forming part of the annual financial statements. For and on behalf of the Board G P Wayne (Chairman) G S Clarke (Managing Director) Renishaw 29 May 2012 Registered office and postal address Renishaw, KwaZulu-Natal PO Renishaw, 4181 Sponsor Sasfin Capital A division of Sasfin Bank Limited Directors G P Wayne * (Chairman), G S Clarke (Managing), P J Barker (Financial), P Bhengu *, C J H Chance *, J A F Hewat *, P G Joubert *, P Mnanga *, M T Rutherford *, R E Stewart * * Non-executive director Secretary Highway Corporate Services (Pty) Limited Date: 29/05/2012 15:00:04 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.

Share This Story