Wrap Text
Reviewed Final Results for the year ended 30 June 2013
Super Group Limited
(Incorporated in the Republic of South Africa)
Registration number 1943/016107/06
ISIN: ZAE000161832 Share code: SPG
("Super Group" or "the Group" or "the company")
Reviewed Final Results
for the year ended 30 June 2013
FINANCIAL PERFORMANCE AND
Highlights for the year ended 30 June 2013
- REVENUE +15% - OPERATING PROFIT +22%
R11,7 billion R1 134 million
- PROFIT BEFORE TAXATION +26% - OPERATING PROFIT MARGIN +0,6
R1 067 million 9,7%
- HEPS +19% - ADJUSTED HEPS +22%
213 cents 221 cents
- OPERATING CASH FLOW R1 442 million - NAV PER SHARE +17%
1 221 cents
Introduction
Super Group's Board of directors is pleased to report an excellent set of results for the year ended 30 June 2013. The Group
has achieved a significant increase in earnings notwithstanding the difficult economic and trading environment. The results
were positively impacted by the acquisitions made during the financial year as well as organic growth in all three divisions.
The South African Supply Chain business experienced intensified competition, especially in the Fast Moving Consumer Goods
(FMCG) market where indicators confirmed that the South African consumer remained under pressure. The transport and
logistics industry was also adversely impacted by protracted strike action and labour unrest during the first half of the year and
above inflationary labour cost increases.
There was a marked slowdown in Australian commodity exports and the retail consumer market remained subdued as a
result of the strong Australian Dollar. However, SG Fleet secured some landmark contracts. FleetAfrica performed ahead
of expectations, testament to the resilience and sustainability of the South African operation in a highly competitive trading
environment.
NAAMSA new car sales reported for the year to 30 June 2013 grew by 8,8% compared to 20,0% for the comparable year to
30 June 2012.
The Group successfully implemented a Broad-Based Black Economic Empowerment (B-BBEE) Staff Scheme for the South
African Operations, retaining its Level 3 B-BBEE rating.
Financial performance
Group revenue increased by 14,8% to R11 718 million (2012: R10 205 million). A significant portion of the growth in
revenue (11,5%) was a result of new business generation within the Group's existing businesses and, with the exception of
FleetAfrica, all businesses reported real growth in sales for the year. During the year, the Group acquired a controlling interest
in Digistics, a procurement and food distribution business in the Quick Service Restaurant industry, and a 75% interest in
Safika Oosthuizens, a logistics services company that provides hauling of dry bulk goods such as coal, chrome and "run of
mine minerals" in tipper trucks. Digistics' and Safika Oosthuizens' financial results were incorporated into the Group's results
with effect from 1 October 2012 and 1 March 2013, respectively.
Operating profit increased by 22,0% to R1 134 million (2012: R930 million). The Group improved its operating margin to
9,7% (2012: 9,1%). All divisions increased their margins as a result of the continued stringent focus on operational efficiencies
and cost controls.
A reduction of 18,0% to R67 million (2012: R82 million) in net finance costs reflects the reduced average Full Maintenance
Lease borrowings and lower interest rates compared to the previous year.
Profit before taxation increased by 25,9% to R1 067 million (2012: R847 million), reflecting the benefits of improved operational
profitability and lower finance costs.
Earnings per share (EPS) and headline earnings per share (HEPS) for the year under review increased by 27,6% to
220,0 cents (2012: 172,4 cents) and 18,6% to 212,7 cents (2012: 179,4 cents), respectively. The Group has added one
extra peer performance measure, Adjusted HEPS. Adjusted HEPS increased by 22,0% to 220,6 cents (2012: 180,9 cents)
on the basis that the amortisation of intangible assets arising on business combinations, B-BBEE and acquisition costs
amounting to 7,9 cents per share are excluded from HEPS.
Total assets increased by 32,1% to R10 557 million (2012: R7 993 million) mainly as a result of acquisitions, the warehouse
expansions at Super Park and an increase in working capital. The Group's Return on Net Operating Assets (RNOA), after tax,
was 20,8% for the year under review compared to the RNOA of 18,9% for the year ended 30 June 2012.
Super Group's net debt position at 30 June 2013 was R159 million from a net cash position of R429 million at 30 June 2012
mainly as a result of the acquisitions made and the developments at Super Park. Total gearing as at 30 June 2013 was 3,7%.
Net working capital increased as a result of higher inventories and trade receivables, driven by higher revenue and additional
working capital from the acquisitions. The focus on management of working capital continued to be a priority and, as a result
cash generated from operations, after a working capital outflow of R286 million, was R1 155 million for the year ended
30 June 2013.
Net capital expenditure amounted to R580 million during the year with the main expenditure related to the scheduled
replacement of vehicles in Supply Chain and African Logistics, combined with new Dealerships developments and expansions
at Super Park.
During the year under review, the company repurchased 3,57 million shares, totalling 1,13% of the issued share capital.
The total consideration relating to these repurchases approximated R59 million.
The Group's Statement of Financial Position remains robust, reflecting a net asset value per share of 1 221 cents at
30 June 2013 (2012: 1 044 cents), up 16,9%.
The condensed consolidated financial statements of Super Group for the year ended 30 June 2013 have been reviewed by the
company's auditor, KPMG Inc. In its review report dated 20 August 2013, which is available for inspection at the company's
registered office, KPMG Inc states that its review was concluded in accordance with the International Standard on Review
Engagements 2410, Review of Interim Information Performed by the Independent Auditor of the company, which applies to the
review of the consolidated financial information and has expressed an unmodified conclusion on the condensed consolidated
financial statements.
Divisional review
Supply Chain
Year ended Year ended Year ended
R'000 Change % 30 June 2013 30 June 2012 30 June 2011
Revenue 37,8 5 236 529 3 800 056 2 789 469
South Africa 39,8 4 723 142 3 379 285 2 429 246
African Logistics 22,0 513 387 420 771 360 223
Operating profit 76,7 395 504 223 874 181 497
South Africa 80,3 328 164 181 961 164 801
African Logistics 60,7 67 340 41 913 16 696
Operating margin (%) 7,6 5,9 6,5
South Africa 6,9 5,4 6,8
African Logistics 13,1 10,0 4,6
Profit before taxation 87,0 353 150 188 888 155 323
South Africa 86,6 300 412 160 980 148 250
African Logistics 89,0 52 738 27 908 7 073
Net operating assets 80,9 2 772 984 1 533 142 1 187 121
South Africa 100,9 2 323 375 1 156 360 891 000
African Logistics 19,3 449 609 376 782 296 121
Supply Chain South Africa delivered a commendable set of results in an environment that continues to be highly competitive
and challenging. The increase in revenue, operating profit and profit before taxation for the year ended 30 June 2013 was
mainly driven by good sales volume growth across most of the operations within Supply Chain South Africa. The SG Consumer
(FMCG and Staple Foods) business secured five meaningful contracts to replace a large FMCG contract that expired in the
second half of the financial year. The Freight and Super Rent businesses performed in line with expectations. Sherwood
International returned to profitability with the commencement of a number of new business initiatives in Ghana and Zimbabwe.
The Micor business reported improved results and margins on the back of new contracts. SG Convenience continued to grow
by expanding its national customer base and a number of new product ranges through SG Gateway and the Super Group
Brands Division. SG Bulk performed in line with expectations although its business was affected by disruptions at one of its
mining customers. Digistics and Safika Oosthuizens both met expectations and their results were included for nine months from
1 October 2012 and four months from 1 March 2013, respectively. Trans Africa Logistics (TAL) was closed effective 1 November
2012 as a direct result of the Zimbabwe freeze on chrome and nickel exports. The closure costs of TAL have been included
in the Services segment.
African Logistics reported a strong set of results for the 2013 financial year. These results were achieved on the back
of improved north-bound activity as well as additional activity on the Beira-Harare route. As a result, the African Logistics'
fleet is running at between 80% and 90% of its capacity. The Rand weakness towards the latter part of the financial year also
positively contributed to the results, reporting a foreign exchange gain of R20,3 million. The vehicle renewal programme was
completed in the last quarter of the 2013 financial year and contributed significantly to the improved operational efficiencies
and results of the African Logistics' business.
Fleet Solutions
Year ended Year ended Year ended
R'000 Change % 30 June 2013 30 June 2012 30 June 2011
Revenue (17,4) 1 817 448 2 201 380 1 880 896
FleetAfrica (60,1) 431 648 1 081 671 1 051 717
SG Fleet 23,8 1 385 800 1 119 709 829 179
Operating profit 7,5 618 833 575 810 358 222
FleetAfrica (48,6) 125 496 244 213 149 528
SG Fleet 48,8 493 337 331 597 208 694
Operating margin (%) 34,0 26,2 19,0
FleetAfrica 29,1 22,6 14,2
SG Fleet 35,6 29,6 25,2
Profit before taxation 11,4 592 925 532 347 288 375
FleetAfrica (46,2) 118 528 220 450 108 548
SG Fleet 52,1 474 397 311 897 179 827
Net operating assets 31,2 1 114 304 849 056 1 602 518
FleetAfrica 47,0 345 240 234 888 953 038
SG Fleet 25,2 769 064 614 168 649 480
FleetAfrica performed above expectations by securing new contracts, the most notable being the fleet outsource contract
for the City of Polokwane and the redeployment of former City of Johannesburg assets into other authorities. In addition, a
number of key corporate and public sector contracts were secured which will provide a solid foundation in the forthcoming
financial year.
SG Fleet again delivered an excellent performance in the face of increasing competition and the economic slowdown
experienced across most of Australia's industries. The results were mainly attributable to SG Fleet securing major contracts
across all sectors, including the large long-term fleet maintenance lease contract for the Australian Federal Government.
The second-hand car market softened at the beginning of 2013 as a result of record new vehicle sales towards the end of
2012. The residual values have stabilised and are expected to remain at current levels in the next year. The strength of the
Australian Dollar against the Rand impacted on the consolidated results of Super Group to an amount of R52,6 million.
Dealerships
Year ended Year ended Year ended
R'000 Change % 30 June 2013 30 June 2012 30 June 2011
Revenue 22,3 4 637 791 3 790 640 3 161 333
Operating profit 39,8 120 610 86 288 63 710
Operating margin (%) 2,6 2,3 2,0
Profit before taxation 51,5 95 652 63 133 40 879
Net operating assets 30,4 480 230 368 383 317 854
Dealerships reported good results, reflecting the inclusion of three new dealerships, two agencies added to existing sites
and a solid performance by the Finance and Insurance operations. New vehicle sales increased by 22,4% (16,0% from
existing dealerships) over the year, which was well ahead of market growth. Total NAAMSA new vehicle sales for the year to
30 June 2013 were up 8,8%. New vehicle sales growth is slowing from its higher base compared to the comparative year
and is beginning to reflect lower consumer spending. Dealerships also reported a 26,6% increase in total used vehicle unit
sales, with 17,3% of the increase coming from the existing operations. Dealerships continued to improve its operating margin,
with a satisfying overall operating margin of 2,6% (June 2012: 2,3%) for the year under review.
Services
The Services segment includes the corporate functions, Emerald Insurance, the Mauritius operations and the closure costs
and operating losses of TAL. The comparative results for the year ended 30 June 2012 include the once-off close-out profits
on the expiration of the Eastern Cape Provincial Government and City of Johannesburg contracts. The Mauritius operations
and Emerald Insurance performed in line with expectations during the current financial year.
Prospects
Recent economic data releases indicate that South Africa might experience slower economic growth for the remainder of
2013, than initially anticipated. Despite an improvement in exports, inflationary pressures and high unemployment rates will
continue to hamper growth. The outlook for the Australian economy for the same period is also less buoyant than 2012.
The highly competitive trading environment continues to place pressure on the Group in terms of consumer sales volumes and
securing new contracts. Super Group is embarking on a Domestic Medium Term Note Programme to diversify its sources of
funding, optimise its borrowing costs and to facilitate the Group's growth strategy both organically and via acquisitions in its
core divisions.
Supply Chain South Africa continues to focus on niche opportunities within the food service, retail and pharmaceutical sectors.
An automotive customer of Super Group took occupation of the purpose-built warehouse at Super Park on 1 August 2013.
The bespoke warehouse at Super Park for SG Convenience is progressing well and operations will transfer to this facility towards
the end of September 2013.
The imminent implementation of SANRAL's e-Toll system will negatively impact on all areas of the Group's business and
continues to be of concern in relation to distribution costs.
African Logistics is strategically positioned to benefit from any increased activity in sub-Saharan Africa. The lower overheads
resulting from the renewed fleet and streamlined operations will continue to positively contribute to results.
FleetAfrica has invested in new product innovations, with the view of penetrating niche market segments. The few major
opportunities available to the business generally tend to have long sales cycles and extremely long decision-making processes.
FleetAfrica has the capacity and scale to implement and execute on contracts awarded from its pipeline.
SG Fleet is expecting moderately lower revenue growth into the next financial year with the slowdown in the Australian
economy. Novated lease volumes are expected to reduce due to tax uncertainties within the existing Labour Government
pronouncements. SG Fleet is more optimistic about the prospects for both the United Kingdom and New Zealand operations
as they gain traction in their respective markets.
The Labour Government, in anticipation of the Federal election on 7 September 2013, announced that it is considering an
amendment to the Fringe Benefit Tax (FBT) on novated leases. The industry is objecting to the proposed change of excluding
the Statutory Cost Method from novated lease contracts as it will increase the administrative burden for companies and
employees on these schemes. The uncertainty created will also negatively impact new vehicle sales particularly in the lower
cost vehicle categories.
Dealerships are expecting growth in new vehicle sales to reflect NAAMSA growth projections of approximately 5%. New
vehicle sales are set to be constrained by consumer spending.
The culture of service excellence in all areas of Super Group's business and the continued pursuit of new business opportunities
remains the Group's key strategic focus.
In line with Super Group's stated strategy to utilise cash generated in order to invest in acquisitions or repurchase shares,
a decision was taken not to declare a dividend for the year ended 30 June 2013. The Board reassesses this strategy on a
regular basis.
The reviewed condensed consolidated results for the year ended 30 June 2013 will be available on the Group's website after
08:00 on Tuesday, 20 August 2013 and the presentation to the investor community can be viewed on the Group's website
from Wednesday, 21 August 2013 after 08:00. Copies of the full announcement are available on request from Nigel Redford,
Company Secretary, nigel.redford@supergrp.com. The Group's website is www.supergroup.co.za.
On behalf of the Board
P Vallet P Mountford
Chairman of the company Chief Executive Officer
19 August 2013
Sandton
Condensed Consolidated Statement of Comprehensive Income
Year ended Year ended
30 June 30 June
2013 2012
Reviewed Audited
R'000 R'000
Revenue 11 717 972 10 204 811
Trading profit before depreciation and amortisation 1 476 123 1 419 267
Depreciation and amortisation (359 254) (459 381)
Trading profit 1 116 869 959 886
Capital items 17 147 (30 293)
Operating profit 1 134 016 929 593
Net finance charges (67 329) (82 118)
Profit before taxation 1 066 687 847 475
Income tax expense (250 570) (252 548)
Profit for the year 816 117 594 927
Profit for the year attributable to:
Non-controlling interests 179 433 79 314
Equity holders of Super Group 636 684 515 613
816 117 594 927
Other comprehensive income
Effect of foreign exchange 143 164 158 851
Hedge accounting 1 989 332
Revaluation of land and buildings 14 445 42 410
Other comprehensive income taxation effect (3 780) (6 282)
Other comprehensive income for the year 155 818 195 311
Total comprehensive income for the year 971 935 790 238
Total comprehensive income for the year attributable to:
Non-controlling interests 212 718 123 723
Equity holders of Super Group 759 217 666 515
971 935 790 238
RECONCILIATION OF HEADLINE EARNINGS
Profit attributable to equity holders of Super Group 636 684 515 613
Capital items after tax (21 145) 20 744
Impairment of intangible assets 2 892 15 014
Impairment of property, plant and equipment and full maintenance lease vehicles 34 462 32 751
Impairment of goodwill 3 948 3 243
Impairment of investments 187
(Profit)/loss on sale of property, plant and equipment (20 072) 4 123
Negative goodwill on business combination (38 377)
Revaluation of investment property (25 025)
Taxation effect of capital items (4 861) (9 549)
Non-controlling interest effect of capital items 863
Headline profit for the year 615 539 536 357
Earnings per share (cents)
Basic 220,0 172,4
Diluted 211,7 167,4
Headline earnings per share (cents)
Basic 212,7 179,4
Diluted 204,7 174,1
RECONCILIATION OF ADJUSTED EARNINGS
Headline profit for the year 615 539 536 357
Acquisition costs after tax 5 989 4 582
B-BBEE costs after tax 6 787 46
Amortisation of intangible arising on business combinations after tax 10 198
Adjusted headline profit for the year 638 513 540 985
Adjusted headline earnings per share (cents)
Basic 220,6 180,9
Diluted 212,3 175,6
Condensed Consolidated Statement of Financial Position
30 June 30 June
2013 2012
Reviewed Audited
R'000 R'000
ASSETS
Non-current assets
Property, plant and equipment 2 515 103 1 634 269
Investment property 64 716 70 816
Full maintenance lease assets 545 247 491 069
Intangible assets 241 831 27 077
Goodwill 1 738 323 1 575 837
Investments and other non-current assets 3 839 5 534
Deferred tax assets 314 469 311 060
Current assets 5 133 374 3 877 730
Asset held-for-sale 6 100
Inventories 840 112 650 312
Trade receivables 1 696 839 1 192 893
Sundry receivables 695 388 184 684
Insurance-related assets 22 390 73 411
Cash and cash equivalents 1 872 545 1 776 430
Total assets 10 556 902 7 993 392
EQUITY AND LIABILITIES
Capital and reserves
Capital and reserves attributable to equity holders of Super Group 3 532 396 3 020 123
Non-controlling interests 751 917 380 522
Total equity 4 284 313 3 400 645
Liabilities
Fund reserves 346 740 341 681
Deferred tax liabilities 254 289 145 982
Full maintenance lease liabilities 146 687 164 183
Non-current 41 515 61 514
Current 105 172 102 669
Interest-bearing borrowings 1 884 619 1 183 630
Non-current 1 550 438 1 027 956
Current 334 181 155 674
Non-controlling interest put options and other financial liability 209 339
Insurance-related liabilities 45 511 139 559
Trade and other payables 2 852 456 1 978 758
Income tax payable 119 452 209 800
Provisions 413 496 429 154
Total equity and liabilities 10 556 902 7 993 392
Condensed Consolidated Statement of Cash Flow
Year ended Year ended
30 June 30 June
2013 2012
Reviewed Audited
R'000 R'000
Cash flows from operating activities
Operating cash flow 1 441 778 1 573 024
Working capital (outflow)/inflow (286 412) 271 318
Cash generated from operations 1 155 366 1 844 342
Finance costs paid (154 143) (189 397)
Investment income and interest received 81 501 107 184
Income tax paid (349 011) (232 496)
Dividend paid to non-controlling interest (399)
Net cash generated from operating activities 733 713 1 529 234
Cash flows from investing activities
Net additions to plant and equipment (239 948) (281 482)
Net additions to land and buildings (177 924) (32 652)
Net (additions)/disposals to full maintenance lease assets (141 747) 140 175
Net additions to intangible assets (19 896) (16 414)
Acquisition of business (217 619) (82 464)
Other investing activities (31 178) (49)
Net cash flow from investing activities (828 312) (272 886)
Cash flows from financing activities
Share repurchases (59 127) (227 962)
Net interest-bearing borrowings raised 183 958 71 990
Net full maintenance lease borrowings repaid (25 264) (625 694)
Net cash flow from financing activities 99 567 (781 666)
Net increase in cash and cash equivalents 4 968 474 682
Net cash and cash equivalents at beginning of the year 1 776 430 1 210 456
Effect of foreign exchange on cash and cash equivalents 91 147 91 292
Cash and cash equivalents at end of the year 1 872 545 1 776 430
Condensed Consolidated Statement of Changes in Equity
Share Non-
Share Share Other Retained buyback controlling Total
capital premium reserves earnings reserve Total interest equity
R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000
Audited balance
at 30 June 2011 327 310 1 893 091 450 406 524 176 (622 206) 2 572 777 258 508 2 831 285
Changes in equity
for 2012 year
Other comprehensive
income 150 902 150 902 44 409 195 311
Translation adjustment 114 442 114 442 44 409 158 851
Hedging reserve 332 332 332
Revaluation of land and
buildings 42 410 42 410 42 410
Taxation effect of revaluation
of land and buildings (6 282) (6 282) (6 282)
Profit for the year 515 613 515 613 79 314 594 927
Total comprehensive
income for the year 150 902 515 613 666 515 123 723 790 238
Land and buildings
depreciation (911) 911
Effect of tax rate change
on the revaluation reserve (7 537) (7 537) (7 537)
Share-based payment
reserve movement 16 330 16 330 16 330
Dividends paid (399) (399)
Share cancelled (11 976) (145 859) (157 835) (157 835)
Expenses relating to
share repurchases (434) (434) (434)
Share buybacks (69 693) (69 693) (69 693)
Movement in reserves 713 713
Changes in equity as a result
of acquisitions, disposals
and transactions with
equity partners (2 023) (2 023)
Audited balance
at 30 June 2012 315 334 1 746 798 592 860 1 057 030 (691 899) 3 020 123 380 522 3 400 645
Changes in equity
for 2013 year
Other comprehensive
income 122 533 122 533 33 285 155 818
Translation adjustment 110 541 110 541 32 623 143 164
Hedging reserve 1 327 1 327 662 1 989
Revaluation of land and
buildings 14 445 14 445 14 445
Taxation effect of revaluation
of land and buildings (3 780) (3 780) (3 780)
Profit for the year 636 684 636 684 179 433 816 117
Total comprehensive
income for the year 122 533 636 684 759 217 212 718 971 935
Transfer from contingency
reserve (1 064) 1 064
Land and buildings
depreciation (99) 99
Realisation of revaluation
reserve through sale of
revalued properties (996) 996
Share-based payment
reserve movement 19 310 19 310 551 19 861
Options exercised (60 601) (60 601) (230) (60 831)
Non-controlling interest
put options (207 356) (207 356) (207 356)
Share buybacks 1 703 1 703 1 703
Changes in equity as a result
of acquisitions, disposals
and transactions with
equity partners 158 356 158 356
Reviewed balance
at 30 June 2013 315 334 1 746 798 713 234 1 447 226 (690 196) 3 532 396 751 917 4 284 313
Operating segments
Supply Chain Services and
Super Group Supply Chain South Africa African Logistics Fleet Solutions FleetAfrica SG Fleet Dealerships inter-company eliminations
Year ended Year ended Year ended Year ended Year ended Year ended Year ended Year ended Year ended Year ended Year ended Year ended Year ended Year ended Year ended Year ended Year ended Year ended
30 June 30 June 30 June 30 June 30 June 30 June 30 June 30 June 30 June 30 June 30 June 30 June 30 June 30 June 30 June 30 June 30 June 30 June
2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012
Reviewed Audited Reviewed Audited Reviewed Audited Reviewed Audited Reviewed Audited Reviewed Audited Reviewed Audited Reviewed Audited Reviewed Audited
R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000
Revenue 11 717 972 10 204 811 5 236 529 3 800 056 4 723 142 3 379 285 513 387 420 771 1 817 448 2 201 380 431 648 1 081 671 1 385 800 1 119 709 4 637 791 3 790 640 26 204 412 735
South Africa 9 813 987 8 804 579
Australia 1 327 726 1 076 329
Africa and other 576 259 323 903
Depreciation and amortisation (359 254) (459 381) (199 495) (126 425) (179 281) (115 092) (20 214) (11 333) (138 836) (286 362) (68 851) (190 860) (69 985) (95 502) (9 801) (7 108) (11 122) (39 486)
Net operating expenditure
excluding capital items (10 241 849) (8 785 544) (4 653 166) (3 400 449) (4 224 063) (3 044 895) (429 103) (355 554) (1 059 528) (1 334 753) (237 301) (646 598) (822 227) (688 155) (4 507 380) (3 696 874) (21 775) (353 468)
Trading profit 1 116 869 959 886 383 868 273 182 319 798 219 298 64 070 53 884 619 084 580 265 125 496 244 213 493 588 336 052 120 610 86 658 (6 693) 19 781
Capital items 17 147 (30 293) 11 636 (49 308) 8 366 (37 337) 3 270 (11 971) (251) (4 455) (251) (4 455) (370) 5 762 23 840
Operating profit 1 134 016 929 593 395 504 223 874 328 164 181 961 67 340 41 913 618 833 575 810 125 496 244 213 493 337 331 597 120 610 86 288 (931) 43 621
Share of profit of equity-accounted
investee 1 143 107 1 143 107
Net finance costs (68 472) (82 225) (42 354) (34 986) (27 752) (20 981) (14 602) (14 005) (25 908) (43 463) (6 968) (23 763) (18 940) (19 700) (24 958) (23 155) 24 748 19 379
Profit before tax 1 066 687 847 475 353 150 188 888 300 412 160 980 52 738 27 908 592 925 532 347 118 528 220 450 474 397 311 897 95 652 63 133 24 960 63 107
ASSETS
Non-current assets
Property, plant and equipment 2 515 103 1 634 269 1 622 639 941 779 1 311 729 674 185 310 910 267 594 8 747 8 700 276 21 8 471 8 679 208 832 145 454 674 885 538 336
Investment property 64 716 70 816 64 716 70 816
Full maintenance lease assets 545 247 491 069 545 247 491 069 380 383 333 065 164 864 158 004
Intangible assets 241 831 27 077 204 825 4 305 204 825 4 305 28 727 18 798 28 727 18 798 1 118 7 161 3 974
Goodwill 1 738 323 1 575 837 419 989 350 080 375 098 312 994 44 891 37 086 1 215 684 1 132 107 87 822 87 822 1 127 862 1 044 285 102 650 93 650
Investments and other
non-current assets 3 839 5 534 2 838 2 838 3 839 2 696
Current assets
Assets held-for-sale 6 100 6 100
Inventories 840 112 650 312 181 207 145 004 156 985 117 529 24 222 27 475 83 707 46 564 28 617 9 182 55 090 37 382 570 398 458 744 4 800
Insurance-related assets 22 390 73 411 22 390 73 411
Trade receivables 1 696 839 1 192 893 1 121 252 711 789 1 021 570 630 423 99 682 81 366 357 284 267 814 103 356 68 480 253 928 199 334 134 636 110 703 83 667 102 587
Sundry receivables 695 388 184 684 537 234 62 174 510 660 37 520 26 574 24 654 94 038 70 333 28 538 8 116 65 500 62 217 5 834 6 511 58 282 45 666
Intercompany trade receivables 11 223 11 375 10 522 5 725 701 5 650 867 4 242 867 519 3 723 747 1 188 (12 837) (16 805)
SEGMENT ASSETS 8 369 888 5 905 902 4 098 369 2 229 344 3 591 389 1 785 519 506 980 443 825 2 334 301 2 039 627 629 859 507 205 1 704 442 1 532 422 1 024 215 816 250 913 003 820 681
South Africa 5 901 870 3 812 401
Australia 1 607 754 1 439 008
Africa and other 860 264 654 493
LIABILITIES
Non-current liabilities
Long-term borrowings 1 591 953 1 089 470 403 869 271 841 403 869 271 841 500 339 498 276 19 666 52 921 480 673 445 355 687 745 319 353
Non-controlling interest put options
and other financial liability 209 339 209 339 209 339
Fund reserves 346 740 341 681 346 740 341 681 76 826 79 681 269 914 262 000
Current liabilities
Short-term borrowings 439 353 258 343 285 614 77 739 285 614 77 739 132 952 160 813 58 191 39 458 74 761 121 355 20 787 19 791
Insurance-related liabilities 45 511 139 559 45 511 139 559
Trade and other payables and
provisions 3 265 952 2 407 912 1 302 196 680 191 1 250 077 618 184 52 119 62 007 868 108 843 027 202 644 188 941 665 464 654 086 903 671 690 421 191 977 194 273
Intercompany trade payables 23 189 41 869 17 937 36 831 5 252 5 038 5 149 3 695 5 149 3 695 851 555 (29 189) (46 119)
SEGMENT LIABILITIES 5 898 848 4 236 965 2 224 207 1 071 640 2 166 836 1 004 595 57 371 67 045 1 853 288 1 847 492 362 476 364 696 1 490 812 1 482 796 904 522 690 976 916 831 626 857
South Africa 4 160 435 2 620 235
Australia 1 493 630 1 500 353
Africa and other 244 783 116 377
Net capex 579 514 190 999 212 717 275 930 212 937 203 849 (220) 72 081 158 193 (141 824) 93 005 (201 016) 65 188 59 192 76 888 53 475 131 716 3 418
South Africa 514 546 59 726
Australia 65 188 59 192
Africa and other (220) 72 081
Net operating assets 5 072 222 3 259 858 2 772 984 1 533 142 2 323 375 1 156 360 449 609 376 782 1 114 304 849 056 345 240 234 888 769 064 614 168 480 230 368 383 704 704 509 277
Basis of preparation and accounting policies
The Condensed Consolidated Financial Statements for the year ended 30 June 2013 have been prepared in accordance
with the framework concepts and measurement and recognition requirements of International Financial Reporting Standards
("IFRS"), in particular the presentation and disclosure requirements of International Accounting Standard ("IAS") 34 Interim
Financial Reporting, the South African Institute of Chartered Accountants' Financial Reporting Guides as issued by the
Accounting Practices Committee and Financial Pronouncements as issued by the Financial Reporting Standards Council, the
Listings Requirements of the JSE Limited and the Companies Act of South Africa.
The accounting policies used in the preparation of the reviewed final results for the year ended 30 June 2013, are in terms
of IFRS and are consistent with those applied in the Audited Financial Statements for the year ended 30 June 2012, except
for the accounting policy adopted in respect of non-controlling interest put option liability for the year ended 30 June 2013
and except for the standards and amendments to standards that became effective on 1 January 2012: Amendment to
IAS 12 Deferred Tax: Recovery of Underlying Assets; and those effective on 1 July 2012: Amendment to IAS 1 Presentation
of Financial Statements: Presentation of Items of Other Comprehensive Income. These amendments have been applied for the
first time in Super Group's financial year commencing 1 July 2012. The amendments did not result in any material changes to
the accounting policies.
The Condensed Consolidated Financial Statements are presented in Rand, which is Super Group's presentation currency.
These results have been compiled under the supervision of the Chief Financial Officer, C Brown CA(SA), BCompt (Hons), MBL.
Salient Features
Year ended Year ended
30 June 30 June
2013 2012
Reviewed Audited
R'000 R'000
1. Interest-bearing borrowings
Australian interest-bearing borrowings 486 604 494 906
Asset-based finance 896 840 349 581
Property and other borrowings 501 175 339 143
Interest-bearing borrowings 1 884 619 1 183 630
2. Share statistics
Total issued less treasury shares ('000) 289 415 289 195
Weighted number of shares ('000) 289 394 299 013
Diluted weighted number of shares ('000) 300 775 308 009
Net asset value per share (cents) 1 220,5 1 044,3
3. Capital commitments
Authorised but not yet contracted for capital commitments, excluding
full maintenance lease assets 508 585 174 640
Capital commitments will be funded from normal operating cash flows
and the utilisation of existing borrowing facilities
4. Related party transactions
The Group, in the ordinary course of business, entered into various sales
and purchase transactions on an arm's length basis with related parties.
5. Subsequent events
Other than the matters disclosed, the directors are not aware of any matter or
circumstance arising subsequent to the reporting date up to the date
of this report, which will affect these results.
6. Business combinations
Purchase
Interest consideration
Subsidiaries and Nature of Operating Date acquired transferred
businesses acquired business segment acquired (%) R'000
Supply Chain 1 October
Digistics Logistics South Africa 2012 50,1 120 400
Supply Chain 1 March
Safika Oosthuizens Logistics South Africa 2013 75 262 500
1 August 2012/
Other immaterial acquisitions Dealership Dealerships 1 October 2012 100 26 384
Total purchase consideration
transferred 409 284
Other
Fair value of assets Safika immaterial
acquired and liabilities assumed Total Digistics Oosthuizens acquisitions
at date of acquisition: R'000 R'000 R'000 R'000
Assets
Property, plant and equipment 612 613 106 989 504 737 887
Intangible assets 216 432 72 200 144 232
Goodwill 36 675 62 104 (38 377) 12 948
Inventories 31 108 17 378 13 730
Trade and other receivables 629 878 433 116 196 762
Income tax receivable 2 371 2 371
Cash and cash equivalents 191 655 100 486 91 169
1 720 732 774 895 918 272 27 565
Liabilities
Deferred tax liabilities 113 905 18 137 95 768
Interest-bearing borrowings 474 270 89 513 384 757
Trade and other payables 549 677 480 828 68 849
Provisions 14 953 7 657 6 115 1 181
Income tax payable 297 297
1 153 102 596 432 555 489 1 181
Acquirees' carrying amount at acquisition 567 640 178 463 362 793 26 384
Less: Non-controlling interests (158 356) (58 063) (100 293)
Net assets acquired 409 274 120 400 262 490 26 384
Purchase consideration transferred Cash (191 655) (100 486) (91 169)
Net cash ouflow 217 619 19 914 171 321 26 384
The non-controlling interests have been calculated using the present ownership instruments' proportionate share in the
recognised amounts of the acquiree's identifiable net assets.
Goodwill has been recognised on the acquisitions of the Digistics and Dealership's businesses amounting to R62,1 million
and R12,9 million, respectively.
The acquisition of the Safika Oosthuizens business has resulted in negative goodwill of R38,4 million which has been recognised
in profit or loss for the year. The negative goodwill has been excluded from the calculation of headline earnings.
Other
Safika immaterial
Impact of the acquisitions on the Total Digistics Oosthuizens acquisitions
results of the Group R'000 R'000 R'000 R'000
From the dates of acquisition, the acquired
businesses contributed:
Revenue 1 002 954 423 618 412 388 166 948
Attributable profit 37 238 12 231 24 973 34
Company Information
Directors:
Executive: P Mountford (Chief Executive Officer) and C Brown (Chief Financial Officer)
Non-Executive: P Vallet (Chairman of the company), N Davies*, J Newbury*, V Chitalu*#, D Rose* and Dr E Banda*
*Independent #Zambian
Company Secretary:
N Redford
Registered office:
27 Impala Road, Chislehurston, Sandton, 2196
Transfer secretaries:
Computershare Investor Services Proprietary Limited
(Registration number 2004/003647/07)
Ground floor, 70 Marshall Street, Johannesburg, 2001
(PO Box 61051, Marshalltown, 2107)
Sponsor:
Deutsche Securities (SA) Proprietary Limited
(Registration number 1995/011798/07)
3 Exchange Square, 87 Maude Street, Sandton, 2196
Investor Relations:
Keyter Rech Investor Solutions CC
(Registration number 2008/156985/23)
5 2nd Road, Hyde Park, 2196
www.supergroup.co.za
Date: 20/08/2013 08:03:00 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.