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Abridged Audited Annual Financial Statements for the Year Ended 28 February 2013
Cargo Carriers Limited
(Registration number 1959/003254/06)
Summarised audited annual financial statements for the year ended 28 February 2013 and Dividend announcement
2013 2012
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME R’000 R'000
Revenue 721 321 593 895
Other income 5 384 5 469
Operating and administration costs (441 456) (360 707)
Employment costs (194 943) (165 203)
Depreciation of property, plant and equipment (47 768) (34 235)
Profit from operating activities 42 538 39 219
Profit on disposal of property, plant and equipment 1 261 1 240
Impairment of assets (3 078) (3 373)
Revaluation of investment properties 9 234 4 060
Dividend income 915 -
Profits from associates and joint ventures 2 491 4 758
Profit before finance income and finance cost 53 361 45 904
Finance income 4 547 4 224
Finance cost (18 139) (17 336)
Profit before taxation 39 769 32 792
Taxation (13 666) (19 870)
Profit for the year 26 103 12 922
Profit for the year attributable to:
Equity holders of the company 26 438 12 600
Non-controlling interest (335) 322
26 103 12 922
Other comprehensive income:
Revaluation of owner occupied properties 7 415 2 975
Income tax effect (2 076) (833)
Exchange differences on translation of foreign operations 1 244 637
Other comprehensive income for the year, net of tax 6 583 2 779
Total comprehensive income for the year, net of tax 32 686 15 701
Total comprehensive income attributable to:
Equity holders of the company 33 021 15 379
Non-controlling interest (335) 322
Total comprehensive income for the year, net of tax 32 686 15 701
FINANCIAL INFORMATION
Dividend per share (cents)
- interim declared during the year 10.0 9.0
- final declared after year end 20.0 8.0
Total dividends 30.0 17.0
Earnings per share (cents) 136.3 64.9
Adjustments:
Profit on disposal of property, plant and equipment (4.7) (4.6)
Impairment of assets 15.9 17.4
Revaluation of investment properties (38.7) (17.0)
Headline earnings per share (cents) 108.8 60.7
Group borrowings
Borrowing capacity utilized (%) 93.1% 84.1%
Total borrowing capacity (R'000) 194 880 172 651
Capital commitments (R'000) 21 096 4 065
Net asset value per share (cents) 1 924 1 771
Ordinary shares in issue (closing and weighted average) (‘000) 19 406 19 406
SEGMENTAL ANALYSIS
Revenue and other income
Industrial 587 563 448 121
Agricultural 94 480 103 168
Consumer - 1 628
Aviation 9 428 10 227
Supply chain services 30 192 31 626
Property 5 042 4 594
726 705 599 364
Profit before finance income and finance cost
Industrial 61 478 51 395
Agricultural (16 574) (10 558)
Consumer - (1 129)
Aviation 4 775 2 970
Supply chain services (10 658) (5 368)
Property 14 340 8 594
53 361 45 904
2013 2012
CONSOLIDATED STATEMENT OF FINANCIAL POSITION R’000 R'000
Assets
Non-current assets
Property, plant and equipment 505 718 422 765
Investment properties 25 161 48 427
Deferred taxation 22 529 25 150
Investment in associates 19 869 18 704
Investment in joint ventures 4 726 2 394
Goodwill - 2 685
578 003 520 125
Current assets
Trade and other receivables 133 951 106 523
Inventories 12 547 7 240
Taxation 2 751 2 675
Cash and short-term deposits 84 780 58 152
234 029 174 590
Non- current assets held for sale 50 938 4 385
Total Assets 862 970 699 100
Equity and Liabilities
Equity
Attributable to equity holders of the parent 373 266 343 554
Non- controlling interest 16 493 1 749
Total Equity 389 759 345 303
Non-current liabilities
Deferred taxation 109 607 84 702
Contingent consideration 5 359 -
Interest bearing loans and borrowings 171 837 139 963
286 803 224 665
Current liabilities
Trade and other payables 92 048 65 689
Interest bearing loans and borrowings 94 360 63 443
186 408 129 132
Total Equity and Liabilities 862 970 699 100
CONSOLIDATED STATEMENT OF CASH FLOWS
Cash receipts from customers 702 993 578 066
Cash paid to suppliers and employees (653 330) (522 330)
Cash generated from operations 49 663 55 736
Finance income 4 547 4 224
Finance cost (18 139) (17 336)
Dividends paid (3 494) (2 717)
Dividend income 915 -
Tax paid (882) (920)
Cash inflow from operating activities 32 610 38 987
Cash inflow from financing activities 62 791 23 706
Cash outflow from investing activities (68 713) (70 272)
(Increase)/decrease in loan to associates and joint ventures (1 400) 270
Purchase of subsidiary net of cash acquired (10 172) -
Purchase of property, plant and equipment (80 618) (77 853)
Proceeds from sale of property, plant and equipment 23 477 7 311
Increase/(decrease) in cash and cash equivalents 26 688 (7 579)
Cash and cash equivalents at the beginning of the year 58 152 65 870
Net foreign exchange differences (60) (139)
Cash and cash equivalents at the end of the year 84 780 58 152
CONSOLIDATED STATEMENT
OF CHANGES IN EQUITY
Foreign
Asset Distribut currency Non-
Share revaluation able translation Controlling Other
Capital reserve reserves reserve interests reserves Total
Balance at 1 March
2011 194 48 187 284 514 (2 053) 1 427 50 332 319
Total comprehensive
income - 2 142 12 600 637 322 - 15 701
- Profit for the year - - 12 600 - 322 - 12 922
- Other comprehensive
income - 2 142 - 637 - - 2 779
Reclassification
between reserves - (6 053) (315) 6 368 - - -
Post tax transfer of
revaluation of
investment properties - 3 302 (3 302) - - - -
Dividends paid - - (2 717) - - - (2 717)
Balance at 29
February 2012 194 47 578 290 780 4 952 1 749 50 345 303
Total comprehensive
income - 5 339 26 438 1 244 (335) - 32 686
- Profit for the year - - 26 438 - (335) - 26 103
- Other comprehensive
income - 5 339 - 1 244 - - 6 583
Transfer between
reserves on disposal of
assets - (380) 565 - (185) - -
Non-controlling interest
arising on a business
combination - - - - 15 264 - 15 264
Post tax transfer of
revaluation of
investment properties - 7 512 (7 512) - - - -
Dividends paid - - (3 494) - - - (3 494)
Balance at 28
February 2013 194 60 049 306 778 6 196 16 494 50 389 759
Review
The increase in headline earnings per share and earnings per share of 79.3% and 110.0% respectively is most pleasing and
affords the Group the ability to increase dividends paid by 76.5%. The strategic acquisition of a 55% shareholding in Buks
Haulage Limited (BHL) in Zambia has contributed largely to the 21.5% increase in revenue. Profit from operating activities
increased by 8.5% despite non-recurring debtor provisioning of R13.5 million. The increases in administration, employment,
and depreciation costs reflect the effect of the consolidation of BHL into the Group results. These positive results have been
achieved in a challenging operating environment with industrial relations interruptions and low economic growth.
The Industrial segment performed well with increases in both revenue and profits. The operations in the Agricultural segment
are under continuous scrutiny and review and although the segment loss is greater than last year, it is here that a large
amount of debtor provisioning has been effected. The Supply Chain services segment has also been negatively affected by
debtor provisions.
Dividend income was received from an associate company in which the group holds a 40% shareholding. Finance income
and finance costs have increased respectively by 7.6% and 4.6%. Finance income was positively impacted by an improved
cash position together with greater working capital management and is expected to be further enhanced due to the inflow of
funds relating to the disposal of the Alrode property to South African Breweries Proprietary Limited for R38 million after the
year end. The increased finance cost reflects the impact of capital expenditure within the business.
Earnings per share was positively impacted by the revaluation of investment properties together with a lower tax charge than
in the prior period. The prior period tax charge was negatively affected by the impairment of deferred tax assets within the
Agricultural segment. The increase in headline earnings per share reflects the improved quality of earnings within the
business coupled with growth initiatives being successfully implemented.
Prospects
The Group continues to focus on the growth and quality of earnings. Business segments and geographical areas that have
above average prospects are being targeted. The industrial segment should experience less labour turmoil in the current
year and, coupled with expected infrastructure projects, improved results are expected. The Zambian acquisition, despite
lower commodity prices, should continue to deliver positive results. The results of the Agricultural segment are expected to
improve through the implementation of plant modifications and a re-negotiation of the business methodology, barring any
further unforeseen circumstances. Management remains committed and focussed to improve the performance and
operating results of the Agricultural segment.
Basis of preparation
The consolidated financial statements for the year ended 28 February 2013 have been prepared in accordance with the
recognition and measurement criteria of International Financial Reporting Standards (“IFRS”), IAS 34: Interim Financial
Reporting, the Listings Requirements of the Johannesburg Stock Exchange and the Companies Act, 2008 (No. 71 of 2008).
The condensed consolidated financial statements do not include all the information and disclosures required in the annual
financial statements, and should be read in conjunction with the Group?s annual financial statements as at 28 February 2013.
The annual financial statements are expected to be available to shareholders towards the end of May 2013. The annual
financial statements were compiled under the supervision of Mr S Maharaj (CA)(SA)/HDiptax, the Chief Financial Officer.
The accounting policies applied in the current year are consistent with those of the previous year.
Independent Auditor's Report
These results have been audited by Ernst & Young Inc. and their unqualified audit opinion is available on request from the
company secretary or at Cargo Carriers Limited's registered office. The Group's integrated report will be available by the end
of May 2013.
Dividend Declaration
Notice is hereby given that a gross final cash dividend (Number 44) of 20.0 cents per share (2012: 8.0 cents) has been
declared for the year ended 28 February 2013. The dividend has been declared out of income reserves. The dividend will be
subject to a dividend withholding tax rate of 15% or 3.0 cents per ordinary share. As no STC credits are available for
utilisation, shareholders, unless exempt or qualifying for a reduced withholding tax rate, will receive a net dividend of 17.0
cents per share.
Cargo Carriers tax reference number is 9900156713 and the number of ordinary shares in issue at the declaration date is
20 000 000.
The salient dates for the dividend will be as follows:
Last date to trade „cum? dividend Friday, 7 June 2013
Shares commence trading „ex? the dividend Monday, 10 June 2013
Record date (date shareholders recorded in share register) Friday, 14 June 2013
Payment date Tuesday, 18 June 2013
Share certificates may not be dematerialised or rematerialised between Monday, 10 June 2013 and Friday, 14 June 2013
both dates inclusive.
Registered Office
11A Grace Road, Mountainview,
Observatory, Johannesburg 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 Proprietary Limited
Company Secretary
14 May 2013
Board of 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 Proprietary Limited
Date: 15/05/2013 07:05:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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