Wrap Text
Un-audited results for the six months ended 31 August 2012 and Dividend Announcement
Cargo Carriers Limited
(Registration number 1959/003254/06)
Un-audited results for the six months ended 31 August 2012 and Dividend
Announcement
Half-year Half-year Audited
ended ended year ended
CONSOLIDATED STATEMENT OF 31/08/2012 31/08/2011 29/02/2012
COMPREHENSIVE INCOME R'000 R'000 R'000
Revenue 326 507 291 062 593 895
Other income 3 452 3 348 5 469
Operating and administration costs (199 593) (173 460) (360 707)
Employment costs (90 890) (84 374) (165 203)
Depreciation (17 866) (16 817) (34 235)
Profit from operating
activities 21 610 19 759 39 219
Profit on disposal of tangible
assets 218 422 1 240
Fair value adjustment to
investment properties - - 4 060
Impairment of assets - - (3 373)
Share of profits from
associates and joint venture 2 021 1 806 4 758
Profit before finance income
and finance cost 23 849 21 987 45 904
Finance income 2 762 2 406 4 224
Finance costs (9 575) (9 604) (17 336)
Profit before taxation 17 036 14 789 32 792
Taxation (4 726) (4 213) (19 870)
Profit for the period from
continuing operations 12 310 10 576 12 922
Profit for the half year
attributable to:
Equity holders of the company 12 164 10 464 12 600
Non-controlling interest 146 112 322
12 310 10 576 12 922
Other comprehensive income:
Fair value adjustment to owner
occupied properties - - 2 975
Income tax effect of fair value
adjustment - - (833)
Exchange differences on
translation of foreign operations 1 606 (130) 637
Other comprehensive loss for the
half year 1 606 (130) 2 779
Total comprehensive income for
the half year 13 916 10 446 15 701
Total comprehensive income for
the half year attributable to:
Equity holders of the parent 13 770 10 334 15 379
Non-controlling interest 146 112 322
Total comprehensive income for the
half year 13 916 10 446 15 701
FINANCIAL INFORMATION
Dividend per share (cents)
- paid during the period 8.0 5.0 9.0
- declared after the period end 10.0 9.0 8.0
Total dividends 18.0 14.0 17.0
Basic/diluted earnings per share
(cents) 62.7 53.9 64.9
Adjustments to earnings per share:
Profit on sale of tangible assets (0.8) (1.6) (4.6)
Impairment of assets held for sale - - 17.4
Revaluation of investment property
to fair value - - (17.0)
Basic/diluted headline earnings per
share (cents) 61.9 52.3 60.7
Borrowings
Net borrowing capacity (R'000) 186 465 170 898 172 651
Net borrowing capacity
utilized (R'000) 177 968 129 046 145 254
Net borrowing capacity
utilized (%) 95.4% 75.5% 84.1%
Capital commitments (R'000) 42 379 14 201 4 065
Net asset value per share (cents) 1833 1753 1771
Ordinary shares in issue (closing
and weighted average) ('000) 19 406 19 406 19 406
Half-year Half-year Audited
ended ended year ended
CONSOLIDATED STATEMENT OF FINANCIAL 31/08/2012 31/08/2011 29/02/2012
POSITION R'000 R'000 R'000
Assets
Non-current assets
Tangible assets 541 851 442 315 471 192
Deferred taxation 26 131 11 335 25 150
Investments in associates 20 617 16 434 18 704
Investment in joint venture 4 502 2 025 2 394
Goodwill 2 685 2 685 2 685
595 786 474 794 520 125
Current assets
Trade and other receivables 145 392 127 249 106 523
Inventories 12 242 8 183 7 240
Taxation 783 - 2 675
Cash and cash equivalents 32 527 54 528 58 152
190 944 189 960 174 590
Assets held for sale 2 156 1 417 4 385
Total Assets 788 886 666 171 699 100
Equity and Liabilities
Equity attributable to owners of
the parent
Share capital 194 194 194
Distributable reserves 301 773 294 008 290 780
Non-distributable reserves 53 804 46 054 52 580
355 771 340 256 343 554
Non-controlling interest 17 159 1 539 1 749
Total Equity 372 930 341 795 345 303
Non-current liabilities
Deferred taxation 100 950 53 351 84 702
Contingent consideration 5 969 - -
Secured loans 136 594 125 950 139 963
243 513 179 301 224 665
Current liabilities
Trade and other payables 98 542 86 759 65 689
Short term portion of secured loans 73 901 57 624 63 443
Taxation - 692 -
172 443 145 075 129 132
Total Equity and Liabilities 788 886 666 171 699 100
CONSOLIDATED STATEMENT OF CASH
FLOWS
Cash receipts from customers 308 394 255 077 578 066
Cash paid to suppliers and
employees (283 283) (237 692) (522 330)
Cash generated by operations 25 111 17 385 55 736
Finance income 2 762 2 406 4 224
Finance costs (9 575) (9 604) (17 336)
Dividends paid (1 553) (970) (2 717)
Taxation received/(paid) 568 2 021 (920)
Cash inflow from operating
activities 17 313 11 238 38 987
Cash (outflow)/inflow from
financing activities (25 429) 3 874 23 706
Cash outflow from investing
activities (18 557) (25 776) (70 272)
(Increase)/decrease in loans to
joint venture and associates (2 000) 177 270
Acquisition of subsidiary (10 172) - -
Replacement of tangible assets (11 484) (29 438) (77 853)
Proceeds on sale of tangible
assets 5 099 3 485 7 311
Decrease in cash during the period (26 673) (10 664) (7 579)
Cash at the beginning of the year 58 152 65 870 65 870
Foreign exchange movement during
the period 1 048 (678) (139)
Cash at the end of the period 32 527 54 528 58 152
Profit/(loss) before finance income
and finance cost
Industrial 29 608 22 232 51 395
Agricultural (3 465) 1 923 (10 558)
Consumer - (733) (1 129)
Aviation 1 420 1 403 2 970
Supply chain services (6 087) (4 859) (5 368)
Property 2 373 2 021 8 594
23 849 21 987 45 904
CONSOLIDATED
STATEMENT OF
CHANGES IN
EQUITY
Foreig
n
Asset Curren
reval Distr cy
uatio ibuta Transl Non-
Share n ble ation Controll Other
Capit reser reser Reserv ing reserv
al ve ves e interest es Total
Balance at 31 48 294 (2 341
August 2011 194 187 008 183) 539 50 795
Total
comprehensive
income - 2 142 3 106 767 210 - 6 225
- Profit for the
period - - 3 106 - 210 - 3 316
- Other
comprehensive
loss - 2 142 - 767 - - 2 909
Reallocation (6
between reserves - 053) (315) 6 368 - - -
Transfer of fair
value gains (3
between reserves - 3 302 302) - - - -
(2 (2
Dividends paid - - 717) - - - 717)
Balance at 29 47 290 345
February 2012 194 578 780 952 749 50 303
Total
comprehensive 12 13
income - - 164 1 606 146 - 916
- Profit for the 12 12
period - - 164 - 146 - 310
- Other
comprehensive
loss - - - 1 606 - - 1 606
Disposal of
property - (382) 382 - - - -
Acquisition of 15
subsidiary - - - - 15 264 - 264
(1 (1
Dividends paid - - 553) - - - 553)
Balance at 31 47 301 372
August 2012 194 196 773 6 558 17 159 50 930
SEGMENTAL ANALYSIS
Revenue and other income
Industrial 246 878 211 367 448 121
Agricultural 58 945 59 928 103 168
Consumer - 1 603 1 628
Aviation 5 747 4 935 10 227
Supply chain services 15 104 13 888 31 626
Property 3 285 2 689 4 594
329 959 294 410 599 364
Review
The Group purchased a majority shareholding in a Zambian company Buks
Haulage Limited (BHL) during period under review. The suspensive
conditions pertinent to the transaction were satisfied in August 2012 and
this entity has been consolidated into the interim results at 31 August
2012. The consolidation of BHL in the Groups interim results has only
affected the consolidated statement of financial position and not the
consolidated statement of comprehensive income nor the consolidated
statement of cash flows. The contingent consideration of R5.9 million
reflected in the consolidated statement of financial position represents
future payments in respect of this acquisition should warranted profits be
achieved.
Revenue has increased 12.2% within a challenging local and global economy
and reflects positively on the Groups strategy of achieving profitable
growth. The industrial segment increased revenue by 16.8% and continues to
be the biggest contributor to growth in the business. Operating and
administration costs increased by 15.1% and were negatively affected by
provisions totalling R12.4 million created for long outstanding debtors.
Employment costs increased by 7.7% and were well managed. The agriculture
segment's operating profit was severely affected by extreme weather
conditions in its operating regions. Despite this the overall increase in
profit from operating activities of 9.4% is very pleasing in light of the
debtors provisions created, and reflects the beneficial effect of non-
profitable contracts discontinued in the prior year.
Finance costs decreased by 0.3% and reflect the impact of the reduction in
interest rates and outstanding debt (excluding BHL) during the period
coupled with lower capital expenditure. Finance income increased by 14.8%
and reflects positively on the cash management strategies employed within
the Group in addition to dividend income from an associate company.
Earnings per share and headline earnings per share have increased by 16.2%
and 18.4% respectively and reflect the fruits of industrial segment
projects begun in the prior year that are now yielding their expected
returns. This has improved the quality of earnings within the Group despite
the debtor provisions created. The increase further bears testimony to the
Group's strategy for long term profitable growth.
Prospects
The Group will continue to pursue its profitable growth strategy which is
supported by the current low gearing and strength of its balance sheet.
The strike action by unionised employees negatively impacted the whole
transport industry, and this will no doubt negatively effect the Groups
results to year end. This impact will be reported upon in the year end
results. The unusual weather patterns since the end of the current period
have also adversely affected the agricultural segment's operations and
prospects. The Group remains committed to all its stakeholders and
focussed on growing the business profitably.
Accounting Policies
The financial statements for the half-year ended 31 August 2012 have been
prepared in accordance with IAS 34, International Financial Reporting
Standards (IFRS), the requirements of the South African Companies Act, No.
71 of 2008, and the Listing Requirements of the JSE Limited. The
accounting policies are consistent with those applied in the prior year
financial statements. These results have not been audited nor have they
been reviewed by the group's auditors, Ernst & Young Inc. The interim
financial statements were compiled under the supervision of the Chief
Financial Officer, Mr S Maharaj (CA)(SA)/HDipTax.
Dividend Declaration
Shareholders are advised that the board is pleased to announce an interim
dividend (Number 43) of 10.0 cents (2011: 9.0 cents) (gross) per share has
been declared in accordance with the terms of the ordinary shares. The
ordinary share dividend will be reflected in the interim results for the
period ended 31 August 2012. The cash dividend will be payable to
shareholders recorded in the share register of the Company at the close of
business on Friday, 7 December 2012 and the directors have confirmed that
the company will satisfy the solvency and liquidity test immediately after
completing the distribution. In terms of paragraph 11.17 of the JSE
Listing Requirements, shareholders are advised of the following:
1. The gross local cash dividend of 10 cents, less the Dividend
Withholding Tax rate at 15%, being 1.5 cents, will result in a net local
dividend of 8.5 cents per share.
2. There are no Secondary Tax on Companies (STC) credits available for set
off against the Dividend Withholding Tax;
3. Shareholders exempt from paying the Dividends Withholding Tax will
receive a gross dividend of 10 cents per share.
4. The share cash dividend will be made from income reserves.
5. The issued ordinary share capital of Cargo is 20 000 000 shares on
which the dividend is declared; and
6. Cargo’s Income Tax reference number is 9900156713.
The salient dates relating to the share cash
2012
dividend are as follows:
Last day to trade “cum” the cash dividend
Friday, 30 November
(“LDT”):
Date trading commences “ex” the cash
Monday, 03 December
dividend:
Record date for payment of the cash
Friday, 7 December
dividend:
Date of payment of the cash dividend: Monday, 10 December
Share certificates may not be dematerialised or rematerialised between
Monday, 03 December 2012 and Friday, 07 December 2012 both dates
inclusive.
Registered Office
11A Grace Road
Mountainview, Observatory
2198
Transfer Secretaries
Computershare Investor Services (Proprietary) Limited
70 Marshall Street
Johannesburg, 2001
(PO Box 61051, Marshalltown, 2107)
Website
www.cargocarriers.co.za
Cargo Carriers Limited, Registration number
:1959/003254/06
Incorporated in the Republic of South Africa ("Cargo Carriers" or " the
company")
JSE Share code: CRG
ISIN Code: ZAE000001764
By order of the board
Arcay Client Support (Pty) Ltd
Company Secretary
26 October 2012
Directors
S G Chilvers# (Chairman), G D Bolton (Joint CEO),
M J Bolton (Joint CEO), A E Franklin*, B B Fraser#
S Maharaj (CFO), S P Mzimela*, M J Vuso*
# non-executive director
* independent non-executive director
Sponsor
Arcay Moela Sponsors (Pty) Ltd
Date: 30/10/2012 05:24:00 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.