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Interim Condensed Consolidated Financial Statements for the Period Ended 31 August 2013 and Dividend Announcement
Cargo Carriers Limited
(Registration number 1959/003254/06)
Interim condensed consolidated financial statements for the period ended 31 August 2013 and dividend
announcement
CONDENSED CONSOLIDATED STATEMENTS OF Un-audited Un-audited Audited
COMPREHENSIVE INCOME 31/08/2013 31/08/2012 28/02/2013
R'000 R'000 R'000
Turnover 477,479 326,507 721,321
Other income 2,668 3,452 5,384
Revenue 480,147 329,959 726,705
Operating and administration costs (281,046) (199,593) (441,456)
Employment costs (115,001) (90,890) (194,943)
Depreciation of property, plant and equipment (36,827) (17,866) (47,768)
Profit from operating activities 47,273 21,610 42,538
Profit on disposal of property, plant and equipment 8,567 218 1,261
Impairment of assets (3,180) - (3,078)
Revaluation of investment properties - - 9,234
Dividend income 1,137 915 915
Share of profits from associates and joint ventures 1,681 2,021 2,491
Profit before finance income and finance cost 55,478 24,764 53,361
Finance income 2,903 1,847 4,547
Finance costs (11,529) (9,575) (18,139)
Profit before tax 46,852 17,036 39,769
Income tax expense (11,196) (4,726) (13,666)
Profit for the period 35,656 12,310 26,103
Other comprehensive income:
Items not to be reclassified to profit or loss in subsequent periods:
Revaluation of owner occupied properties - - 7,415
Income tax effect - - (2,076)
Other comprehensive income to be reclassified to profit or loss in
subsequent periods:
Exchange differences on translation of foreign operations 4,510 1,606 1,244
Other comprehensive income, net of tax 4,510 1,606 6,583
Total comprehensive income, net of tax 40,166 13,916 32,686
Profit for the period attributable to:
Equity holders of the parent 32,049 12,164 26,438
Non-controlling interest 3,607 146 (335)
35,656 12,310 26,103
Total comprehensive income, net of tax attributable to:
Equity holders of the parent 36,559 13,770 33,021
Non-controlling interest 3,607 146 (335)
40,166 13,916 32,686
FINANCIAL INFORMATION
Dividend per share (cents)
- paid during the period 20.0 8.0 10.0
- declared after the period end 15.0 10.0 20.0
Total dividends 35.0 18.0 30.0
Un-audited Un-audited Audited
31/08/2013 31/08/2012 28/02/2013
R'000 R'000 R'000
Basic and diluted earnings per share (cents) 165.1 62.7 136.3
Adjustments (cents):
Profit on disposal of property, plant and equipment (31.8) (0.8) (4.7)
Impairment of assets 16.4 - 15.9
Revaluation of investment properties - - (38.7)
Basic and diluted headline earnings per share (cents) 149.7 61.9 108.8
Group borrowings
Borrowing capacity of the Group (R'000) 213,022 186,465 194,880
Borrowing capacity utilized (R'000) 145,305 177,968 181,417
Borrowing capacity utilized (%) 68.2% 95.4% 93.1%
Capital commitments (R'000) - 42,379 4,065
Net asset value per share (cents) 2092 1833 1924
Ordinary shares in issue (closing and weighted average) ('000) 19,406 19,406 19,406
SEGMENTAL ANALYSIS
Revenue
Industrial 390,999 246,878 587,563
Agriculture 70,426 58,945 94,480
Aviation 1,867 5,747 9,428
Supply chain services 14,281 15,104 30,192
Property 2,574 3,285 5,042
Total revenue 480,147 329,959 726,705
Profit before finance income and finance cost
Industrial 45,044 30,523 61,478
Agriculture (76) (3,465) (16,574)
Aviation 3,620 1,420 4,775
Supply chain services (275) (6,087) (10,658)
Property 7,165 2,373 14,340
Total profit before finance income and finance cost 55,478 24,764 53,361
CONDENSED CONSOLIDATED STATEMENTS Un-audited Un-audited Audited
FINANCIAL POSITION 31/08/2013 31/08/2012 28/02/2013
R'000 R'000 R'000
Assets
Non-current assets
Property, plant and equipment 541,936 493,424 505,718
Investment properties 25,161 48,427 25,161
Deferred taxation 20,922 26,131 22,529
Investment in associates 21,104 20,617 19,869
Investment in joint ventures 5,912 4,502 4,726
Goodwill - 2,685 -
615,035 595,786 578,003
Current assets
Inventories 19,201 12,242 12,547
Trade and other receivables 169,408 145,392 133,951
Cash and short-term deposits 126,060 32,527 84,780
Taxation 1,794 783 2,751
316,463 190,944 234,029
Non- current assets held for sale 2,344 2,156 50,938
Total Assets 933,842 788,886 862,970
Equity and Liabilities
Equity attributable to owners of the parent
Share capital 194 194 194
Non-distributable reserves 68,164 53,804 66,295
Distributable reserves 337,586 301,773 306,777
Equity attributable to equity holders of the parent 405,944 355,771 373,266
Non-controlling interest 20,100 17,159 16,493
Total Equity 426,044 372,930 389,759
Non-current liabilities
Deferred taxation 116,049 100,950 109,607
Contingent consideration 5,359 5,969 5,359
Interest bearing loans and borrowings 157,231 136,594 171,837
278,639 243,513 286,803
Current liabilities
Trade and other payables 101,528 87,707 81,969
Provisions 13,497 10,835 10,079
Interest bearing loans and borrowings 114,134 73,901 94,360
229,159 172,443 186,408
Total Equity and Liabilities 933,842 788,886 862,970
CONDENSED CONSOLIDATED STATEMENTS Un-audited Un-audited Audited
OF CASH FLOWS 31/08/2013 31/08/2012 28/02/2013
R'000 R'000 R'000
Cash receipts from customers 436,771 308,394 702,993
Cash paid to suppliers and employees (366,074) (283,283) (653,330)
Cash generated by operations 70,697 25,111 49,663
Finance income 2,903 1,847 4,547
Finance costs (11,529) (9,575) (18,139)
Dividends paid (3,881) (1,553) (3,494)
Dividend income 1,137 915 915
Income tax (paid)/received (3,008) 568 (882)
Cash inflow from operating activities 56,319 17,313 32,610
Cash (outflow)/inflow from financing activities (11,698) (25,429) 62,791
Cash outflow from investing activities (3,605) (18,557) (68,713)
Increase in loans to associates and joint ventures (741) (2,000) (1,400)
Acquisition of a subsidiary, net of cash acquired - (10,172) (10,172)
Purchase of property, plant and equipment (55,426) (11,484) (80,618)
Proceeds from sale of property, plant and equipment 52,562 5,099 23,477
Increase/(decrease) in cash and cash equivalents 41,016 (26,673) 26,688
Cash at the beginning of the period 84,780 58,152 58,152
Foreign exchange movement during the period 264 1,048 (60)
Cash and cash equivalents at the end of the period 126,060 32,527 84,780
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
Foreign
Asset Currency
Share revaluation Distributable Translation Share reserve* reserves
Capital reserve* reserves Reserve*
Balance at 31 August 2012 194 47,196 301,773 6,558
Total comprehensive income - 5,721 15,445 (362)
- Profit for the period - - 15,445 -
- Other comprehensive income - 5,721 - (362)
Transfer between reserves on disposal of assets - (380) 565 -
Transfer of gains on revaluation of investment properties,
net of tax - 7,512 (7,512) -
Dividends paid - - (3,494) -
Balance at 28 February 2013 194 60,049 306,777 6,196
Total comprehensive income - - 32,049 4,510
- Profit for the period - - 32,049 -
- Other comprehensive income - - - 4,510
Dissolution of foreign subsidiary - - 2,641 (2,641)
Dividends paid - - (3,881) -
Balance at 31 August 2013 194 60,049 337,586 8,065
Non-
Controlling Other
interest reserves* Total
Balance at 31 August 2012 17,159 50 372,930
Total comprehensive income (481) - 20,323
- Profit for the period (481) - 14,964
- Other comprehensive income - - 5,359
Transfer between reserves on disposal of assets (185) - -
Transfer of gains on revaluation of investment properties,
net of tax - - -
Dividends paid - - (3,494)
Balance at 28 February 2013 16,493 50 389,759
Total comprehensive income 3,607 - 40,166
- Profit for the period 3,607 - 35,656
- Other comprehensive income - - 4,510
Dissolution of foreign subsidiary - - -
Dividends paid - - (3,881)
Balance at 31 August 2013 20,100 50 426,044
* represents non-distributable reserves
Review
The Group's performance is pleasing in light of a challenging local and global economy. The business has managed to
increase its profitability in difficult trading times and its long term strategy for growth is materialising. The
acquisition of 55% of Buks Haulage Limited (BHL) in Zambia, combined with new business and a dedicated focus on
certain loss making contracts have gained significant momentum and contributed positively to the overall results.
Revenue and profit from operating activities have increased by 45.5% and 118.8% respectively, which is attributable to
the contribution from BHL and the organic growth in the business. The disposal of surplus property and an aircraft
contributed significantly to the R8.6 million profit on sale. The industrial and agriculture segments were negatively
affected by R3.2 million impairment of non-operating assets which have been classified as held for sale.
The sale of a property and an aircraft generated a net increase of R47.3 million in cash and short-term deposits during the
latter part of the current period. This had a positive impact on the growth in finance income of 57.2%. The effective tax
rate of 23.9% is as a result of the release of R2.3 million deferred tax credits relating to the sale of the property.
Earnings per share and headline earnings per share have increased by 163.3% and 141.8% respectively. The increased
earnings were favourably impacted by acquisitions, new business and the disposal of surplus assets. The interim results
are very positive and encouraging, reflecting on the Group's endeavour for long term profitable growth.
Prospects
The local and global economy continues to be plagued by many uncertainties. The Group intends to focus its efforts on
profitable growth in the form of acquisitions and new business opportunities, which will allow it to gain market share and
leverage synergies within its operations. The current low gearing and strength of the balance sheet augers well for
pursuing such investment and growth opportunities. The Group is expected to continue profitably to year end, barring any
unforseen circumstances.
Accounting Policies
The interim condensed consolidated financial statements for the period ended 31 August 2013 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 condensed consolidated financial statements were
compiled under the supervision of the Chief Financial Officer, Mr S Maharaj CA(SA)/HDipTax.
Events after the reporting period
There were no significant events after the reporting period.
Dividend Declaration
The board is pleased to announce that a gross interim cash dividend (Number 45) of 15.0 cents per share (2012: 10.0
cents) has been declared for the period ended 31 August 2013. The dividend has been declared out of income reserves.
The dividend will be subject to a dividend withholding tax rate of 15% or 2.25 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 12.75 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, of which 593 710 are treasury shares.
The salient dates for the dividend will be as follows:
Last day to trade “cum” the cash dividend (“LDT”): Friday, 29 November 2013
Shares commence trading "ex" the dividend Monday, 2 December 2013
Record date (date shareholders recorded in share register) Friday, 6 December 2013
Payment date Monday, 9 December 2013
Shareholders may not dematerialise or rematerialise their share certificates between Monday, 2 December 2013 and
Friday, 6 December 2013, 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
25 October 2013
Directors
S G Chilvers# (Chairman), S P Mzimela*, A E Franklin*,
B B Fraser#, M J Vuso*, G D Bolton (Joint CEO),
M J Bolton (Joint CEO), S Maharaj (CFO)
# non-executive director
* independent non-executive director
Sponsor
Arcay Moela Sponsors (Pty) Ltd
Date: 29/10/2013 05:45:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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