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

CARGO CARRIERS LIMITED - Un-audited results for the six months ended 31 August 2012 and Dividend Announcement

Release Date: 30/10/2012 17:24
Code(s): CRG     PDF:  
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.

Share This Story