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Unaudited Interim Group Results for the Six Months Ended 31 August 2013 and Declaration of Dividend
Spanjaard Limited
(Incorporated in the Republic of South Africa)
Registration number 1960/004393/06
Share code: SPA ISIN: ZAE000006938
("Company" or "Group")
UNAUDITED INTERIM GROUP RESULTS
FOR THE SIX MONTHS ENDED
31 AUGUST 2013 AND
DECLARATION OF DIVIDEND
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Six months to Six months to
31 August 2013 31 August 2012
R'000 R'000
Revenue 58 310 55 067
Turnover 56 890 54 072
Cost of sales (37 165) (33 096)
Gross profit 19 725 20 976
Operating expenses (15 503) (16 455)
Depreciation and amortisation (1 255) (1 303)
Profit from operations 2 967 3 218
Finance (cost)/income net (519) (591)
Profit before tax 2 448 2 627
Income tax expense (788) (745)
Profit 1 660 1 882
Other comprehensive income
Movement in foreign currency translation reserve 30 51
Total comprehensive income for the year 1 690 1 933
Earnings per ordinary share
basic and diluted (cents) 20,4 23,1
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Six months to Twelve months to
31 August 2013 28 February 2013
R'000 R'000
Assets
Non-current assets 34 834 34 680
Property, plant and equipment 34 391 34 237
Goodwill 437 437
Intangibles 6 6
Current assets 40 248 37 295
Total assets 75 082 71 975
Equity and liabilities
Total shareholders' equity 42 330 41 860
Ordinary shares and premium 6 871 6 871
Reserves 35 459 34 989
Non-current liabilities 12 199 10 897
Borrowings 7 269 5 873
Deferred tax liabilities 4 930 5 024
Current liabilities 20 553 19 218
Total equity and liabilities 75 082 71 975
CONSOLIDATED STATEMENT OF CASH FLOWS
Six months to Six months to
31 August 2013 31 August 2012
R'000 R'000
Cash flows from operating activities 1 394 (4 874)
Cash flows from investing activities (1 776) 797
Cash flows from financing activities (50) (2 209)
Net decrease in cash and cash equivalents (432) (6 286)
Cash and cash equivalents at beginning of year 3 318 1 478
Cash and cash equivalents at end of year 2 886 (4 808)
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Six months to Six months to
31 August 2013 31 August 2012
R'000 R'000
Ordinary shares 407 407
Share premium 6 464 6 464
Foreign currency translation reserve (571) (144)
Revaluation reserve 7 872 9 514
Retained earnings 28 158 26 397
Total shareholders' equity 42 330 42 638
DIVIDENDS
Dividend declared per ordinary share (cents)
interim 15,0 15,0
SUPPLEMENTARY INFORMATION
Six months to Six months to
31 August 2013 31 August 2012
R'000 R'000
Capital expenditure 1 780 1 121
OPERATING SEGMENTS
Six months to Six months to
31 August 2013 31 August 2012
R'000 R'000
Segment revenue
Special lubricants and allied chemicals 52 412 50 265
External customers 6 334 9 242
Local customers 46 078 41 023
Metal powders 7 000 6 140
External customers 3 067 2 721
Local customers 3 933 3 419
Other 1 203 638
External customers 1 203 638
Reconciling items (3 725) (2 971)
External customers (1 453) (1 013)
Local customers (2 272) (1 958)
56 890 54 072
Segment result
Special lubricants and allied chemicals 1 708 2 687
Metal powders 1 294 325
Other 366 398
Reconciling items (401) (192)
2 967 3 218
Segment assets
Special lubricants and allied chemicals 55 340 50 312
Metal powders 10 655 9 951
Other 22 516 24 790
Reconciling items (13 429) (13 078)
75 082 71 975
Segment liabilities
Special lubricants and allied chemicals 26 714 21 602
Metal powders 1 512 1 702
Other 16 329 18 329
Reconciling items (11 803) (11 518)
32 752 30 115
RECONCILIATION OF HEADLINE EARNINGS
Six months to Six months to
31 August 2013 31 August 2012
R'000 R'000
Profit attributable to shareholders 1 660 1 882
Headline earnings 1 660 1 882
Weighted average number of ordinary shares
in issue ('000) 8 143 8 143
Headline earnings per ordinary share
basic and diluted (cents) 20,4 23,1
BASIS OF PREPARATION
The condensed consolidated interim results have been prepared using the measurement and
recognition requirements of International Financial Reporting Standards (IFRS) and the South African
Institute of Chartered Accountants (SAICA) Financial Reporting Guides in accordance with IAS 34
Interim Financial Reporting, AC 500 standards as issued by the Accounting Practises Committee
and in the manner required by the South African Companies Act, 71 of 2008. The condensed
consolidated interim financial statements are prepared on the historical cost basis, with the exception
of certain financial instruments which are measured at fair value.
Accounting policies and methods of computation are consistently applied as in the 2013 audited
annual financial statements.
Condensed consolidated interim financial statements are prepared by: HJ van Heerden BCom (Acc).
Condensed consolidated interim financial statements date of publication 31 October 2013.
COMMENTARY
POINTS OF INTEREST
- Group turnover is up 5% compared to the same period last year
- Interim gross cash dividend declared of 15 cents per share
- Net asset value increased from 514 cents to 519,8 cents per share for
the six months ended 31 August 2013
EXECUTIVE CHAIRMAN'S STATEMENT
We believe our overall results for the first half of the year are consistent with current market conditions.
We have seen a satisfactory increase in turnover for the period. Sharp increases in manufacturing
overheads led to a decline in both Gross Profit margins, as well as Net Profit after Tax.
The local Consumer/Automotive and Industrial divisions exceeded expectations and grew by 12%
compared to the previous period. Tough international market conditions had a negative impact on
our international division.
The acquisition of new Enterprise Resource Planning (ERP) software during the period under review has
brought about the increase in non-current assets and borrowings, as well as having an effect on the
movements in the investing and financing activities in the statement of cash flows. We believe the
benefits will more than justify this investment.
There have been no material related party transactions during the period under review.
SEGMENTAL ANALYSIS
The special lubricants and allied chemicals division showed a slight increase in turnover. The
segment's profit is down due to unexpected increases in some of our manufacturing expenses.
The metal powders segment showed an increase of 14% in turnover. Special projects and a new
direction in terms of sales led to a 298% increase in profit from operations when compared to the
corresponding period last year.
INTERIM DIVIDEND
Notice is hereby given that Dividend No. 24 of 15 (fifteen) cents per ordinary share has been declared
for the six months ended 31 August 2013.
The dividend will be subject to the Dividends Tax that was introduced with effect from 1 April 2012.
In accordance with the provisions of the Listings Requirements of the Johannesburg Stock Exchange,
the following additional information is disclosed:
- the dividend has been declared out of profits available for distribution;
- the local Dividends Tax rate is 15%;
- the gross local dividend amount is 15 cents per share for shareholders exempt from Dividends Tax;
- no Secondary Tax on Companies' credits have been utilised;
- the net local dividend amount is 12,75 cents per share for shareholders liable for Dividends Tax;
- Spanjaard has 8 142 850 ordinary shares in issue; and
- Spanjaard's income tax reference number is 9543 676 84 6.
The following dates are applicable to the dividend:
The last date to trade in order to be eligible for the dividend will be Friday, 15 November 2013.
Shares will trade ex-dividend from Monday, 18 November 2013.
The record date will be Friday, 22 November 2013 and payment will be made on Monday,
25 November 2013.
Share certificates may not be dematerialised/rematerialised between Monday, 18 November 2013
and Friday, 22 November 2013, both days inclusive.
By order of the Board
Ms SF Venter
Company Secretary
31 October 2013
Directors:
RJW Spanjaard (Executive Chairman), Ms E Nepgen (Managing Director), GF Cort
Mrs S Hari*, BL Montgomery*, CKT Palmer, Prof DP van der Nest*
HJ van Heerden (Financial Director)
* Non-executive
Registered office:
748 750 Fifth Street, Wynberg, Sandton, 2090
Transfer Secretaries:
Computershare Investor Services Proprietary Limited
70 Marshall Street, Johannesburg, 2001
Sponsor:
Arcay Moela Sponsors Proprietary Limited
54 Maxwell Drive, Woodmead, 2054
Email: info@spanjaard.biz
Website: www.spanjaard.biz
Date: 31/10/2013 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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