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Unaudited interim results for the six months ended 31 December 2012
Capevin Holdings Limited
Incorporated in the Republic of South Africa
Registration number: 1997/020857/06
JSE share code: CVH
ISIN number: ZAE000167714
(Capevin Holdings or the company or the group)
Unaudited interim results for the six months ended 31 December 2012
Headline earnings per share up 16,1% to 29,6 cents
Intrinsic value per share up 17,6% to R7,06
Interim dividend per share up 6,4% to 10,0 cents
GROUP INCOME STATEMENT
Unaudited Audited
six months ended year ended
31 December 30 June
2012 2011 2012
R'000 R'000 R'000
Share in profits of associate 253 949 225 462 281 167
Gain on dilution of interest in associate 1 459 951 1 496
Investment income 262 205 413
Administrative expenses (1 112) (1 257) (6 583)
Profit before taxation 254 558 225 361 276 493
Taxation 127 (54) (122)
Profit for the period 254 685 225 307 276 371
Attributable to:
Owners of the parent 232 284 114 687 138 582
Non-controlling interests 22 401 110 620 137 789
254 685 225 307 276 371
Profit for the period attributable to equity holders of the company 232 284 114 687 138 582
Non-headline items
Interest in adjustments of associate, net of taxation (37) 37 130
Gain on dilution of interest in associate (1 459) (485) (763)
Headline earnings 230 788 114 239 137 949
Abnormal excise provision, net of taxation 31 686
Normalised headline earnings 230 788 114 239 169 635
Earnings per share (cents)
- Attributable (basic and diluted) 29,8 25,6 30,9
- Headline (basic and diluted) 29,6 25,5 30,8
- Normalised headline (basic and diluted) * 29,6 25,5 37,9
Number of shares (thousands)
- In issue 880 103 447 923 447 923
- Weighted average 779 105 447 923 447 923
* Normalised headline earnings excludes the impact of an additional excise duty provision by Distell provided
for in the June 2012 year-end reporting period. Distell made adequate provision for additional excise duty on
wine aperitifs and no further provisions are needed.
GROUP STATEMENT OF COMPREHENSIVE INCOME
Unaudited Audited
six months ended year ended
31 December 30 June
2012 2011 2012
R'000 R'000 R'000
Profit for the period 254 685 225 307 276 371
Items that may be reclassified subsequently to profit or loss:
Share of other comprehensive income of associate
Fair value adjustments - available-for-sale financial assets 1 262 476 1 487
Currency translation differences 6 841 9 498 7 964
Tax charge relating to available-for-sale financial asset (12)
Items that will not be reclassified to profit or loss:
Share of other comprehensive income of associate
Actuarial gains and losses 9 330 7 617 6 573
Other equity movements of associate 2 287 2 089 5 337
Total comprehensive income for the period 274 405 244 987 297 720
Attributable to:
Owners of the parent 253,660 124,724 149,464
Non-controlling interests 20,745 120,263 148,256
274,405 244,987 297,720
GROUP STATEMENT OF FINANCIAL POSITION Unaudited Audited
31 December 30 June
2012 2011 2012
R'000 R'000 R'000
ASSETS
Non-current assets 1 980 641 1 820 671 1 794 697
Investment in associate 1 980 391 1 820 421 1 794 447
Available-for-sale financial asset 250 250 250
Current assets 4 950 4 926 3 445
Income tax receivable 4
Cash and cash equivalents 4 950 4 922 3 445
Total assets 1 985 591 1 825 597 1 798 142
EQUITY AND LIABILITIES
Equity
Ordinary shareholders' interest 1 980 877 929 025 911 698
Non-controlling interests 892 127 879 328
Total equity 1 980 877 1 821 152 1 791 026
Non-current liabilities
Deferred taxation 47 35 47
Current liabilities 4 667 4 410 7 069
Trade payables 511 716 2 769
Unclaimed dividends 4 156 3 693 4 245
Income tax payable 1 55
Total equity and liabilities 1 985 591 1 825 597 1 798 142
Net asset value per share (cents) 225,1 207,4 203,5
GROUP STATEMENT OF CHANGES IN EQUITY
Unaudited Audited
six months ended year ended
31 December 30 June
2012 2011 2012
R'000 R'000 R'000
Ordinary shareholders' equity at beginning of period 911 698 842 531 842 531
Total comprehensive income 253 660 124 724 149 464
Unclaimed dividends written back 816 739 777
Shares issued 2 485 035
Dividends paid (85 370) (38 969) (81 074)
Transactions with non-controlling interest (1 584 962)
Ordinary shareholders' equity at end of period 1 980 877 929 025 911 698
Non-controlling interests' equity at end of period - 892 127 879 328
Beginning of period 879 328 809 184 809 184
Total comprehensive income 20 745 120 263 148 256
Unclaimed dividends written back 33 71
Dividends paid (37 353) (78 183)
Transactions with non-controlling interest (900 073)
Total equity at end of period 1 980 877 1 821 152 1 791 026
Dividend per share (cents)
- Interim 10,0 9,4 9,4
- Final 9,7
GROUP STATEMENT OF CASH FLOWS
Unaudited Audited
six months ended year ended
31 December 30 June
2012 2011 2012
R'000 R'000 R'000
Cash flows from operating activities
Administrative expenses (1 112) (1 257) (6 583)
Decrease in trade and other receivables 5
(Decrease)/increase in payables and unclaimed dividends (1 531) 1 297 3 979
Cash (utilised in)/generated by operations (2 643) 40 (2 599)
Interest received 254 198 406
Taxation refunded/(paid) 72 (132) (142)
Dividends received 89 192 77 462 161 361
Dividends paid (85 370) (76 322) (159 257)
Net increase/(decrease) in cash and cash equivalents 1 505 1 246 (231)
Cash and cash equivalents at beginning of period 3 445 3 676 3 676
Cash and cash equivalents at end of period 4 950 4 922 3 445
NOTES TO THE INTERIM FINANCIAL STATEMENTS
1. BASIS OF PRESENTATION AND ACCOUNTING POLICIES
The interim financial statements of Capevin Holdings Ltd ("the company" or "the group" or "Capevin
Holdings") have been prepared in accordance with the recognition and measurement principles of
International Financial Reporting Standards (IFRS), including IAS 34 Interim Financial Reporting, as well as
AC 500 standards; the requirements of the South African Companies Act of 2008, as amended; and the
Listings Requirements of the JSE Ltd. The accounting policies applied in the preparation of these interim financial
statements are consistent with those used in the previous financial year. The only amendment that is effective for
the first time in the current financial year is the following:
- Amendments to IAS 1 Presentation of Financial Statements (effective 1 July 2012)
The adoption of these amendments has had no material impact on the consolidated results of either the
current or prior periods.
These unaudited interim financial statements were compiled under the supervision of Mr A Mellet, a
Chartered Accountant (SA) and an employee of the company's appointed manager, PSG Corporate Services.
2. GROUP STRUCTURE
The sole investment of Capevin Holdings is an effective interest of 28,93% (31 December 2011: 14,80% and
30 June 2012: 14,78%) in the issued share capital of Distell Group Ltd ("Distell"), held via its 50% interest in
Remgro-Capevin Investments Ltd.
3. COMMITMENTS AND CONTINGENCIES
Distell received an assessment from the South African Revenue Service for additional employees tax relating to
Distell's share incentive scheme. Distell obtained legal and tax specialist opinions on this matter, which
indicated that no provision is necessary and they submitted an objection to this assessment. Capevin Holdings'
interest in the amount that is at risk is R15,2 million (excluding penalties and interest).
4. SEGMENT REPORT
Capevin Holdings is an investment holding company with its sole investment being an effective interest in
Distell. The directors have not identified any other segment to report on.
COMMENTARY
RESTRUCTURING
On 13 August 2012 a scheme of arrangement ("Scheme") was implemented in terms of which Capevin Holdings
acquired all the ordinary shares in Capevin Investments not already held by Capevin Holdings, being 20 580 000
shares. Following the implementation of the Scheme, Capevin Investments became a wholly-owned subsidiary
of Capevin Holdings. Capevin Investments shareholders received the Scheme consideration of 21 Capevin
Holdings shares for each Scheme share disposed of. Capevin Investments was delisted following the listing of
Capevin Holdings on the JSE on 3 August 2012. All the assets of Capevin Investments were subsequently
distributed to Capevin Holdings in terms of section 47 of the Income Tax Act.
FINANCIAL RESULTS
Distell reported a 12,9% increase in headline earnings to R877,4 million, with headline earnings per share
increasing by 12,6%. Capevin Holdings' headline earnings for the six months ended 31 December 2012
consequently increased by 16,1% to 29,6 cents per share.
The company's intrinsic value increased by 17,6% to R7,06 per share - based on Distell's last traded share price
of R105,94 at 31 December 2012 (excluding capital gains tax).
Following the restructuring detailed above, Capevin Holdings' discount to intrinsic value has narrowed from
23% at June 2012 to 10% at 31 December 2012. Administration costs for the period also decreased by 11,5%
due to simplification of the group structure.
PROSPECTS
The prevailing macro-economic volatility makes it difficult to predict consumer spending trends in the markets
where Distell trades. The board of Distell is not expecting significant changes in the current conditions, as
disposable income remains under severe pressure, both domestically and internationally.
Distell remains confident in the versatility and quality of their portfolio and the pricing of their products. Their
underlying financial position remains strong and they continue to invest in brands, plant and other infrastructure to
compete effectively and to maximise trading opportunities.
Refer to www.distell.co.za for Distell's comprehensive interim results.
DIVIDEND
In terms of the dividend policy of Capevin Holdings, dividends received from its indirect interest in Distell, after
providing for administrative expenses, will be distributed to shareholders. The directors have consequently
resolved to declare an interim gross ordinary dividend (dividend number 17) of 10,0 cents (2011: 9,4 cents) per share for
the six months ended 31 December 2012. The dividend has been declared from income reserves.
There are no STC credits available for utilisation. The dividend is subject to a local dividend tax rate of 15% or
1,5 cents per share, resulting in a net dividend of 8,5 cents per share, unless the shareholder is exempt from
paying dividend tax or is entitled to a reduced rate in terms of the applicable double-tax agreement. The number
of issued ordinary shares is 880 103 265 at the date of this declaration. The company's income tax
reference number is 9599656718.
The salient dates of this dividend distribution are:
Last day to trade cum dividend Wednesday, 27 March 2013
Trading ex dividend commences Thursday, 28 March 2013
Record date Friday, 5 April 2013
Date of payment Monday, 8 April 2013
Share certificates may not be dematerialised or rematerialised between Thursday, 28 March 2013, and Friday,
5 April 2013, both days inclusive.
Signed on behalf of the board of directors
Chris Otto Andries Mellet
Chairman Financial director
Stellenbosch
4 March 2013
Directors: CA Otto (Chairman), A Mellet* (Financial director), AEvZ Botha, JJ Durand, LC Verwey, N Celliers, RM Jansen
(* executive)
Secretary: PSG Corporate Services (Pty) Ltd
Registered office: 1st Floor, Ou Kollege, 35 Kerk Street, Stellenbosch, 7600; PO Box 7403, Stellenbosch, 7599
Transfer secretaries: Computershare Investor Services (Pty) Ltd, 70 Marshall Street, Johannesburg, 2001;
PO Box 61051, Marshalltown, 2107
Sponsor: PSG Capital
Auditor: PricewaterhouseCoopers Inc.
Date: 04/03/2013 04:30:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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