Wrap Text
Unaudited interim results and cash dividend declaration
CROOKES BROTHERS LIMITED
Registration number: 1913/000290/06
Share code: CKS ISIN: ZAE000001434
("Crookes" or "the company" or "the group")
UNAUDITED INTERIM RESULTS and CASH DIVIDEND DECLARATION
for the six months ended 30 September 2012
CONDENSED CONSOLIDATED
STATEMENT OF COMPREHENSIVE INCOME
Audited
Unaudited Year
Six months ended ended
30 Sept 30 Sept 31 March
(R'000) 2012 2011 2012
Revenue 241 543 206 796 361 964
Operating profit 45 717 52 297 98 345
Share of profit of associate companies 120
Interest/dividend income 32 587 3 030 9 722
Finance costs (1 810) (2 503) (3 467)
Capital items 4 627
Profit before tax 76 494 52 824 109 347
Income tax expense (19 662) (14 917) (27 163)
Profit for the period 56 832 37 907 82 184
Other comprehensive income/(loss)
Investment revaluation 1 724 262 (1 516)
Exchange differences on translating
foreign operations 4 878 5 127 (160)
Other comprehensive income/(loss)
for the period, net of tax 6 602 5 389 (1 676)
Total comprehensive income
for the period 63 434 43 296 80 508
Profit attributable to:
Owners of the company 53 687 34 413 78 261
Non-controlling interests 3 145 3 494 3 923
56 832 37 907 82 184
Total comprehensive income
attributable to:
Owners of the company 60 289 39 802 76 585
Non-controlling interests 3 145 3 494 3 923
63 434 43 296 80 508
Earnings per share
Basic (cents) 433,5 277,9 631,9
Diluted (cents) 430,2 276,2 627,1
Dividends/cash distributions per share
Interim (cents) 80 65 65
Final (cents) - - 135
HEADLINE EARNINGS RECONCILIATION
Profit for the period attributable
to owners of the company 53 687 34 413 78 261
Adjusted for:
Capital profit on disposal of land,
buildings and bearer biological assets (4 627)
Profit on disposal of property,
plant and equipment (681) (397) (436)
Tax effect of the adjustments 139 111 (343)
Headline earnings 53 145 34 127 72 855
Headline earnings per share (cents) 429,1 275,6 588,3
Headline earnings per share
(diluted) (cents) 425,8 273,9 583,8
CONDENSED CONSOLIDATED
STATEMENT OF CHANGES IN EQUITY
Audited
Unaudited Year
Six months ended ended
30 Sept 30 Sept 31 March
(R'000) 2012 2011 2012
Balance at beginning of period 503 595 439 056 439 056
Share-based payment reserve
movement 131
Total comprehensive income
for the period 63 434 43 296 80 508
Ordinary dividends paid (16 720) (8 052) (16 100)
Total equity 550 309 474 300 503 595
CONDENSED CONSOLIDATED
SUPPLEMENTARY INFORMATION
Audited
Unaudited Year
Six months ended ended
30 Sept 30 Sept 31 March
(R'000) 2012 2011 2012
Depreciation 8 870 6 699 13 975
Capital expenditure
Incurred 25 628 17 177 76 149
Capital commitments
Contracted 5 138 12 177 9 347
Authorised but not contracted 53 629 7 910 53 018
58 767 20 087 62 365
Guarantees 56 56 56
Contingent liabilities 715 702 715
Contingent assets * 25 300 28 900
Net asset value per share 4 443 3 830 4 066
Ordinary number of
shares in issue 12 385 000 12 385 000 12 385 000
Weighted average number
of ordinary shares in issue 12 385 000 12 385 000 12 385 000
Weighted average number
of diluted shares in issues 12 479 917 12 460 360 12 479 917
-The company's claim against the National Department of Land
Affairs in respect of interest payable on the proceeds of the sale of its
Komatipoort estate has been finalised.
CONDENSED CONSOLIDATED
STATEMENT OF FINANCIAL POSITION
Unaudited Audited
30 Sept 30 Sept 31 March
(R'000) 2012 2011 2012
ASSETS
Non-current assets 420 593 328 657 370 916
Property, plant and equipment 263 353 198 027 236 952
Bearer biological assets 137 767 113 258 116 000
Unlisted investments 5 256 6 881 3 769
Investment in associate companies 13 257 9 818 13 257
Unsecured loan: long term 960 673 938
Current assets 348 665 346 961 359 940
Inventories 16 563 12 853 25 467
Biological assets: crops and livestock 136 955 114 859 164 380
Trade and other receivables 100 118 59 969 43 318
Taxation 1 572
Other financial assets 81 415 128 671 101 756
Cash and cash equivalents 13 264 30 309 19 383
Unsecured loan: short term 350 300 500
Assets classified as held for sale 3 564
Total assets 769 258 675 618 730 856
EQUITY AND LIABILITIES
Capital and reserves 550 309 474 300 503 595
Share capital and premium 3 208 3 208 3 208
Retained earnings 533 005 460 239 496 039
Investment revaluation reserve 5 339 5 393 3 615
Foreign currency translation reserve 1 205 1 614 (3 673)
Share-based payment reserve 552 421 551
Shareholders' interest 543 309 470 875 499 740
Outside shareholders in subsidiary 7 000 3 425 3 855
Non-current liabilities 160 533 133 530 147 473
Deferred taxation 79 156 56 809 71 456
Long-term borrowings: interest-bearing 15 889 18 260 16 373
Long-term liability: interest free 51 765 43 925 45 174
Post-employment obligations 13 723 14 536 14 470
Current liabilities 58 416 67 788 79 788
Trade, other payables and provisions 32 656 43 164 38 642
Short-term borrowings 15 923 19 074 41 146
Taxation 9 837 5 550
Total equity and liabilities 769 258 675 618 730 856
CONDENSED CONSOLIDATED
STATEMENT OF CASH FLOWS
Audited
Unaudited Year
Six months ended ended
30 Sept 30 Sept 31 March
(R'000) 2012 2011 2012
Operating profit for the period 45 717 52 297 98 345
Non-cash items 23 379 13 344 (31 149)
Operating cash flows before
movements in working capital 69 096 65 641 67 196
Net outflow from changes in
working capital (23 223) (12 739) (4 986)
Finance costs (1 810) (2 503) (3 467)
Taxation paid (2 239) (1 003) (5 469)
Net cash flows from operating activities 41 824 49 396 53 274
Net investing activities
Net proceeds on redemption/
(purchase) of investments 21 002 (1 333) 24 730
Consideration on disposal of property,
plant and equipment 1 139 774 1 035
Other net investment activities (27 657) (26 516) (83 879)
Net cash flows before dividends
and financing activities 36 308 22 321 (4 840)
Dividends paid (16 720) (8 052) (16 100)
Net (decrease)/increase in borrowings (25 707) 8 229 32 512
Net (decrease)/increase in cash
and cash equivalents (6 119) 22 498 11 572
Cash and cash equivalents at
beginning of period 19 383 7 811 7 811
Cash and cash equivalents at
end of period 13 264 30 309 19 383
CONDENSED CONSOLIDATED
GROUP SEGMENTAL ANALYSIS
Audited
Unaudited Year
Six months ended ended
30 Sept 30 Sept 31 March
(R'000) 2012 2011 2012
Revenue
Sugar cane 181 473 154 782 225 808
Bananas 16 204 23 284 51 700
Deciduous fruit 35 482 19 635 52 468
Grain and sheep 2 371 1 887 19 450
Other operations 6 013 7 208 12 538
241 543 206 796 361 964
Operating profit
Sugar cane 58 822 63 589 98 700
Bananas (3 161) 3 926 7 463
Deciduous fruit 725 (5 279) 10 452
Grain and sheep 3 258 3 415 8 059
Other operations/sundry income 3 669 2 845 4 305
Group administration (17 596) (16 199) (30 634)
45 717 52 297 98 345
COMMENTS ON THE RESULTS
Headline earnings of R53,1 million for the six months ended 30 September
2012 are 56% higher than those for the same period in the previous year.
The increase is due to accounting for the settlement of the claim in
respect of interest payable on the proceeds of the sale of the group's
Komatipoort estate which amounts to R30,7 million before tax and
R22,1 million after tax. Without the additional interest income, headline
earnings would have been 8,2% lower for the period.
Operating profits are 13% lower than the corresponding period in the
previous year with each of the major segments performing as follows:
Sugar cane
Both cane and sucrose yields on our cane estates have not achieved
expectations this season, mainly due to less than optimal climatic
conditions, but the effect has been offset to some extent by better than
anticipated prices.
Bananas
After a slow start to the season, and some significant winter cold
damage, yields and quality are rapidly improving as the harvesting of
new plantations commences.
Deciduous
Good yields and prices were the feature of the 2012 season. The 2013
season offers even better prospects with excellent fruit set and good
prices on the back of the weak rand and poor harvests in Europe and
the United States of America.
Grain and sheep
Good winter rains in the Western Cape and firm prices have contributed
to good results in this division.
PROSPECTS
The Board again cautions against using interim figures to project full year
results, due to the varying seasonality of the diverse crops in the group's
portfolio.
Weaker but volatile exchange rates and generally stronger prices for the
group's products indicate sound shorter-term prospects.
Several significant projects are currently being implemented with the
aim of enhancing longer-term earnings:
- The expansion of the area under sugar cane by a further 500 hectares
on our existing operation at Big Bend in Swaziland, 260 hectares of
which is subject to the granting of additional water rights;
- The final phase of the expansion of the Western Cape deciduous
fruit operations, which will increase the size of this operation to
470 hectares;
- The establishment of 300 hectares of macadamia nut plantations on
long-term leased land in Gurue, Mozambique; and
- The progressing of the property development opportunities
on the Renishaw farm, with environmental impact assessment
documentation having been submitted to the authorities.
The strong balance sheet enables the funding of current project
expenditure from existing resources.
CHANGE IN SHAREHOLDING
On 5 November 2012 the company was advised that RMB Securities Pty Limited
had sold their 30,2% shareholding in Crookes Brothers limited to Silverlands
(SA) Plantations SARL.
INTERIM CASH DIVIDEND DECLARATION
The board is mindful of balancing growth prospects with generating
a sustainable and competitive yield to shareholders, and considers its
capital investment prospects together with seeking to at least match the
dividend yields and payout ratios of its peer group of JSE-listed food and
agricultural companies.
A gross cash dividend of 80,0 cents (2011: 65,0 cents) per share, for
the six-month period ended 30 September 2012, has been declared
payable to shareholders recorded in the books of the company at the
close of business on the record date, Friday 21 December 2012.
In respect of the interim gross cash dividend the following further
information is provided:
- The dividend has been declared from income reserves;
- Secondary tax on companies (STC) credits available amount to
8,5174 cents per share;
- The dividend withholding tax rate is 15% resulting in a net dividend of
69,27761 cents per share to those shareholders who are not exempt
from the dividend withholding tax;
- Crookes' Brothers Limited's tax reference number is 9696/001/71/9; and
- The issued number of shares as at declaration date is 12 385 000.
The interim dividend will be paid on Monday 24 December 2012 to
shareholders recorded in the books of the company at close of business
on the record date, Friday 21 December 2012.
The salient dates of the declaration and payment of these dividends
are as follows:
Last day to trade cum-dividend Thursday 13 December 2012
Shares commence trading ex-dividend Friday 14 December 2012
Record date Friday 21 December 2012
Payment date Monday 24 December 2012
Share certificates may not be dematerialised or re-materialised between
Friday 14 December 2012 and Friday 21 December 2012, both days
inclusive.
For and on behalf of the board
G P Wayne G S Clarke
Chairman Managing Director
Renishaw 23 November 2012
ACCOUNTING POLICIES
The unaudited interim results of the group have been prepared in
accordance with IAS 34 Interim Financial Reporting as well as the
AC 500 Standards as issued by the Accounting Practices Board, the
Listings Requirements of the JSE Limited and the requirements of the South
African Companies Act. The financial information has been prepared on
the historical cost basis except for the revaluation of available for sale
financial assets and the valuation of biological assets and share-based
payments at fair value. The principal accounting policies are consistent
with those of the previous year.
The interim results have been prepared under the supervision of Phillip Barker
(BA, ACMA,CGMA), the Group Financial Director of Crookes Brothers Limited.
CROOKES BROTHERS LIMITED
Registration number: 1913/000290/06 Share code: CKS
ISIN: ZAE000001434 ("Crookes" or "the company" or "the group")
REGISTERED OFFICE AND POSTAL ADDRESS
PO Renishaw, KwaZulu-Natal, 4181
TRANSFER SECRETARIES
Computershare Investor Services (Proprietary) Limited
PO Box 61051, Marshalltown, 2107
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 Mnganga*,
M T Rutherford *, R E Stewart* * Non-executive director
COMPANY SECRETARY Sponsor
Highway Corporate Services (Pty) Limited Sasfin Capital
(A division of Sasfin Bank Limited)
Date: 27/11/2012 05:05:00 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.
Sharenet Sites 
