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Unaudited interim results and cash dividend declaration
CROOKES BROTHERS LIMITED
Registration number: 1913/000290/06
Share code: CKS
ISIN: ZAE000001434
("Crookes" or "the company" or "the group")
UNAUDITED INTERIM RESULTS
AND CASH DIVIDEND DECLARATION
for the six months ended
30 September 2013
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Audited
Unaudited Year
Six months ended ended
30 Sept 30 Sept 31 March
(R'000) 2013 2012* 2013
Continuing operations
Revenue 287 033 239 172 387 526
Operating profit 57 975 42 459 83 792
Share of profit of associate companies – – 158
Interest/dividend income 1 736 32 587 35 299
Finance costs (1 739) (1 810) (2 196)
Profit before tax 57 972 73 236 117 053
Income tax expense (12 563) (18 750) (30 159)
Profit for the period from continuing operations 45 409 54 486 86 894
Discontinued operations
Profit for the period from discontinued operations 3 661 2 346 6 571
Profit for the period 49 070 56 832 93 465
Other comprehensive income
Investment revaluation 1 338 1 724 2 821
Exchange differences on translating foreign operations 7 331 4 878 8 776
Other comprehensive income for the period, net of tax 8 669 6 602 11 597
Total comprehensive income for the period 57 739 63 434 105 062
Profit from continuing and
discontinued operations attributable to:
Owners of the company 47 076 53 687 93 772
Non-controlling interests 1 994 3 145 (307)
49 070 56 832 93 465
Total comprehensive income from continuing
and discontinued operations attributable to:
Owners of the company 55 745 60 289 105 369
Non-controlling interests 1 994 3 145 (307)
57 739 63 434 105 062
Earnings per share from continuing
and discontinued operations:
Basic (cents) 375,2 433,5 757,1
Diluted (cents) 372,4 430,2 745,8
Earnings per share from continuing operations:
Basic (cents) 346,0 414,5 704,1
Diluted (cents) 343,4 411,4 693,5
Dividends/cash distributions per share:
Interim (cents) 80 80 80
Final (cents) – – 160
HEADLINE EARNINGS RECONCILIATION
Profit for the period attributable to owners of the company 47 076 53 687 93 772
Adjusted for:
Profit on disposal of property, plant and equipment (435) (681) (1 178)
Tax effect of the adjustments 99 139 285
Headline earnings 46 740 53 145 92 879
Headline earnings per share (cents) 372,5 429,1 749,9
Headline earnings per share (diluted) (cents) 369,7 425,8 738,7
* Re-presented to account for discontinued operations
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Unaudited Audited
30 Sept 30 Sept 31 March
(R'000) 2013 2012 2013
ASSETS
Non-current assets 515 933 420 593 453 162
Property, plant and equipment 327 781 263 353 285 614
Bearer biological assets 171 004 137 767 145 518
Unlisted investments 613 5 256 5 517
Investment in associate companies 15 310 13 257 15 310
Unsecured loan: long term 1 225 960 1 203
Current assets 361 658 348 665 350 281
Inventories 19 140 16 563 29 444
Biological assets: crops and livestock 140 598 136 955 180 476
Trade and other receivables 81 134 100 118 29 159
Taxation – – 491
Other financial assets 55 025 81 415 52 926
Cash and cash equivalents 27 719 13 264 36 620
Unsecured loan: short term 253 350 328
323 869 348 665 329 444
Assets classified as held for sale 37 789 – 20 837
Total assets 877 591 769 258 803 443
EQUITY AND LIABILITIES
Capital and reserves 629 021 550 309 582 198
Share capital and premium 12 109 3 208 3 208
Retained earnings 590 442 533 005 563 183
Investment revaluation reserve 7 774 5 339 6 436
Foreign currency translation reserve 12 435 1 205 5 103
Share-based payment reserve 720 552 720
Shareholders' interest 623 480 543 309 578 650
Outside shareholders in subsidiaries 5 541 7 000 3 548
Non-current liabilities 175 582 160 533 166 440
Deferred taxation 90 827 79 156 87 514
Long-term borrowings: interest-bearing 11 518 15 889 13 513
Long-term liability: interest-free 59 052 51 765 51 635
Post-employment obligations 14 185 13 723 13 778
Current liabilities 72 988 58 416 54 805
Trade, other payables and provisions 35 303 32 656 38 497
Short-term borrowings 30 625 15 923 15 911
Outside shareholders' loans 441 – 397
Taxation 6 619 9 837 –
Total equity and liabilities 877 591 769 258 803 443
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
Audited
Unaudited Year
Six months ended ended
30 Sept 30 Sept 31 March
(R'000) 2013 2012* 2013
Operating profit for the period from continuing operations 57 975 42 459 83 792
Operating profit for the period from discontinued operations 5 281 3 258 9 126
Non-cash items 22 836 23 379 (27 585)
Operating cash flows before movements in working capital 86 092 69 096 65 333
Net (outflow)/inflow from changes in working capital (44 865) (23 223) 11 840
Finance costs (1 739) (1 810) (2 196)
Taxation paid (3 968) (2 239) (17 431)
Net cash flows from operating activities 35 520 41 824 57 546
Net investing activities
Net proceeds on redemption/(purchase) of investments – 21 002 62 204
Consideration on disposal of property, plant and equipment 530 1 139 1 968
Other net investment activities (46 798) (27 657) (56 616)
Net cash flows before dividends and financing activities (10 748) 36 308 65 102
Dividends paid (10 916) (16 720) (26 231)
Net increase/(decrease) in borrowings 12 763 (25 707) (21 634)
Net (decrease)/increase in cash and cash equivalents (8 901) (6 119) 17 237
Cash and cash equivalents at beginning of period 36 620 19 383 19 383
Cash and cash equivalents at end of period 27 719 13 264 36 620
* Re-presented to account for discontinued operations
CONDENSED CONSOLIDATED GROUP SEGMENTAL ANALYSIS
Audited
Unaudited Year
Six months ended ended
30 Sept 30 Sept 31 March
(R'000) 2013 2012* 2013
Revenue
Sugar cane 211 801 181 473 247 532
Bananas 21 385 16 204 53 406
Deciduous fruit 47 790 35 482 76 046
Other operations 6 057 6 013 10 542
Total revenue from continuing operations 287 033 239 172 387 526
Discontinued operations 2 386 2 371 23 179
289 419 241 543 410 705
Operating profit
Sugar cane 67 689 58 822 85 172
Bananas (409) (3 161) 6 312
Deciduous fruit 5 807 725 24 727
Other operations/sundry income 2 048 3 669 3 518
Group administration (17 160) (17 596) (35 937)
Total operating profit from continuing operations 57 975 42 459 83 792
Discontinued operations 5 141 3 258 9 126
63 116 45 717 92 918
* Re-presented to account for discontinued operations
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Audited
Unaudited Year
Six months ended ended
30 Sept 30 Sept 31 March
(R'000) 2013 2012 2013
Balance at beginning of period 582 198 503 595 503 595
Share-based payment reserve movement – – 169
Total comprehensive income for the period 57 739 63 434 105 062
Ordinary dividends declared (19 816) (16 720) (26 628)
Share issue/scrip dividend 8 900 – –
Total equity 629 021 550 309 582 198
CONDENSED CONSOLIDATED SUPPLEMENTARY INFORMATION
Audited
Unaudited Year
Six months ended ended
30 Sept 30 Sept 31 March
(R'000) 2013 2012 2013
Depreciation 10 032 8 870 18 656
Capital expenditure
Incurred 45 701 25 628 78 484
Capital commitments
– Contracted 21 529 5 138 15 182
– Authorised but not contracted 39 126 53 629 47 993
60 655 58 767 63 175
Guarantees 56 56 56
Contingent liabilities 931 715 691
Net asset value per share 5 013 4 443 4 701
Ordinary number of shares in issue 12 546 817 12 385 000 12 385 000
Weighted average number of ordinary shares in issue 12 452 424 12 385 000 12 385 000
Weighted average number of diluted shares in issue 12 641 424 12 479 917 12 574 000
COMMENTS ON THE RESULTS
Revenue from continuing operations of R287,0 million and operating profit from continuing operations of
R58,0 million are 20% and 37% higher respectively than the corresponding figures in the previous year.
The profit for the period of R49,1 million and headline earnings of R46,7 million are lower than those of the
previous year due to the comparative 2012 figures including a non-recurring accrual for interest receivable of
R20,3 million after tax. Adjusting for this interest accrual, recurring headline earnings are higher than those
of the previous period.
Sugar cane: Although production from South African cane operations is similar to the previous year, the decline
of the RV price and significant increases in the costs of labour, fertiliser and fuel put profitability under pressure.
The Swaziland cane operation benefited from the recently completed expansion with a 43% increase in
production, which combined with an 18% increase in the sucrose price, resulted in a doubling of operating
profit on that estate.
Bananas: The recent large scale replant of bananas had a positive impact on both production volumes and
quality, despite the adverse effects of damage from a severe storm which occurred in November 2012.
Deciduous: Profit from the deciduous fruit operation was boosted by the excellent 2013 growing season and
firm prices due to both the weakening of the Rand and strong export markets.
During the period under review good progress was made in the development of the 3 200 hectare property
located near Gurue in northern Mozambique. Following Board approval of a R160 million project to establish
1 500 hectares to a range of crops, both irrigated and dry-land, 100 hectares of macadamia orchards
have been planted and a further 350 hectares of land cleared for the planting of maize and potatoes. The
upgrading of housing, offices and farm buildings to accommodate a farming operation of this scale is largely
complete. Early results are promising and we expect that in time the operation will become a significant
contributor to group profits.
The sale of Quarrie farm and the resulting discontinuation of the operation is not yet complete but conclusion
is expected before the end of the calendar year. In addition the Board resolved to dispose of related shares
in Overberg Agri which are also shown as held-for-sale and this disposal was completed after the reporting
period. The financial effects of the Quarrie farm's disposal, including the capital profit of R139,1 million, which
will be reflected in the full year results, were previously advised to shareholders in the press and on SENS on
1 August 2013.
PROSPECTS
The Board again cautions against using interim figures to project full year results, due to the varying seasonality
of the diverse crops in the group's portfolio.
Substantial projects currently being implemented include:
- the development of land on long-term lease near Gurue, Mozambique, as described above; and
- the progressing of the property development opportunities on the Renishaw farm, with the final
environmental impact assessment (EIA) documentation having been submitted to the authorities.
In addition, several other major projects and acquisitions are in the final phase of evaluation and the group
continues to seek expansion and acquisition opportunities in South and southern Africa in line with its long-term
strategy to enhance profitability. The strong balance sheet enables the funding of current project expenditure
largely from existing resources.
INTERIM CASH DIVIDEND DECLARATION
The board is mindful of preserving cash to fund future growth and, after taking into account the increased
capital investment requirements of the group as well as the muted prospects for the South African sugar
cane price, has decided to maintain the interim dividend at the same level as last year.
Consequently, a gross interim cash dividend of 80,0 cents (2012: 80,0 cents) per share, for the six-month period ended
30 September 2013, has been declared payable to shareholders recorded in the books of the company at the
close of business on the record date, Friday, 10 January 2014.
In respect of the gross interim cash dividend the following further information is provided:
- the dividend has been declared from income reserves;
- secondary tax on companies (STC) credits available amount to 0,57293 cents per share;
- the dividend withholding tax rate is 15% resulting in a net dividend of 68,08594 cents per share to those
shareholders who are not exempt from the dividend withholding tax;
- Crookes' tax reference number is 9696/001/71/9; and
- the issued number of shares as at declaration date is 12 546 817.
The interim dividend will be paid on Monday, 13 January 2014 to shareholders recorded in the books of the
company at close of business on the record date Friday, 10 January 2014.
The salient dates of the declaration and payment of these dividends are as follows:
Last day to trade cum-dividend Friday, 3 January 2014
Shares commence trading ex-dividend Monday, 6 January 2014
Record date Friday, 10 January 2014
Payment date Monday,13 January 2014
Share certificates may not be dematerialised or re-materialised between Monday, 6 January 2014 and Friday,
10 January 2014, both days inclusive.
For and on behalf of the Board
G P Wayne G S Clarke
Chairman Managing Director
Renishaw 3 December 2013
ACCOUNTING POLICIES
The unaudited condensed interim results for the six months ended 30 September 2013 have been prepared
in accordance with International Financial Reporting Standards, IAS 34 Interim Financial Reporting, the SAICA
Financial Reporting Guides as issued by the Accounting Practices Committee and the requirements of the
Companies Act of South Africa.
The interim results have been prepared by Mr B D Penney CA (SA) under the supervision of Mr P J Barker BA,
ACMA, CGMA, the group financial director.
The financial information has been prepared on the historical cost basis except for the revaluation of available-
for-sale financial assets and the valuation of biological assets and share-based payments at fair value. The
principal accounting policies are consistent with those of the previous year.
CROOKES BROTHERS LIMITED
Registration number: 1913/000290/06
Share code: CKS
ISIN: ZAE000001434
("Crookes" or "the company" or "the group")
REGISTERED OFFICE AND POSTAL ADDRESS
PO Renishaw, KwaZulu-Natal, 4181
TRANSFER SECRETARIES
Computershare Investor Services (Proprietary) Limited
PO Box 61051, Marshalltown, 2107
DIRECTORS
G P Wayne* (Chairman), G S Clarke (Managing), P J Barker (Financial), J R Barton*, P Bhengu*, C J H Chance*,
J A F Hewat*, P Mnganga*, M T Rutherford*, R E Stewart*, G Vaughan-Smith*#, T Denton*# (alternate)
* Non-executive director #British
COMPANY SECRETARY
Highway Corporate Services (Pty) Limited
SPONSOR
SASFIN CAPITAL
WEBSITE
www.cbl.co.za
Date: 03/12/2013 05:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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