Wrap Text
Unaudited interim group results for the six months ended 31 August 2014 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 2014 AND
DECLARATION OF DIVIDEND
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Six months to Six months to
31 August 31 August
2014 2013
R'000 R'000
Revenue 58 982 58 310
Turnover 57 993 56 890
Cost of sales (37 501) (37 165)
Gross profit 20 492 19 725
Operating expenses (17 996) (15 503)
Depreciation and amortisation (1 026) (1 255)
Profit from operations 1 470 2 967
Finance (cost)/income – net (558) (519)
Profit before tax 912 2 448
Income tax expense 313 (788)
Profit 1 225 1 660
Other comprehensive income
Movement in foreign currency translation reserve (57) 30
Total comprehensive income for the six months 1 168 1 690
Earnings per ordinary share
– basic and diluted (cents) 15,0 20,4
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Six months to Twelve months to
31 August 28 February
2014 2014
R'000 R'000
Assets
Non-current assets 30 429 30 160
Property, plant and equipment 28 998 28 800
Goodwill 437 437
Intangibles 994 923
Current assets 51 157 39 022
Non-current assets held for sale – 3 759
Total assets 81 586 72 941
Equity and liabilities
Total shareholders' equity 45 626 42 553
Ordinary shares and premium 6 871 6 871
Reserves 38 755 35 682
Non-current liabilities 8 656 9 377
Borrowings 4 627 4 253
Deferred tax liabilities 4 029 5 124
Current liabilities 27 304 21 011
Total equity and liabilities 81 586 72 941
Net asset value per share 560,3 522,6
CONSOLIDATED STATEMENT OF CASH FLOWS
Six months to Six months to
31 August 31 August
2014 2013
R'000 R'000
Cash flows from operating activities 2 325 1 394
Cash flows from investing activities (2 262) (1 776)
Cash flows from financing activities (2 281) (50)
Net decrease in cash and cash equivalents (2 218) (432)
Cash and cash equivalents at beginning of year (223) 3 318
Cash and cash equivalents at end of year (2 441) 2 886
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Six months to Six months to
31 August 31 August
2014 2013
R'000 R'000
Ordinary shares 407 407
Share premium 6 464 6 464
Foreign currency translation reserve (184) (571)
Opening balance (541) (93)
Movement for the year 357 (478)
Revaluation reserve 7 769 7 872
Opening balance 8 082 9 630
Movement for the year (313) (1 758)
Retained earnings 30 366 28 158
Opening balance 28 141 24 397
Total comprehensive income for the year 2 225 3 761
Total shareholders' equity 44 822 42 330
DIVIDENDS
Dividend declared per ordinary share (cents)
– interim 10,0 15,0
SUPPLEMENTARY INFORMATION
Six months to Six months to
31 August 31 August
2014 2013
R'000 R'000
Capital expenditure 1 225 1 780
OPERATING SEGMENTS
Six months to Six months to
31 August 31 August
2014 2013
R'000 R'000
Segment revenue
Special lubricants and allied chemicals 57 556 52 412
External customers 11 299 6 334
Local customers 46 257 46 078
Lubricant powders/Metal powders 3 962 7 000
External customers 2 572 3 067
Local customers 1 390 3 933
Other 2 543 1 203
External customers 2 543 1 203
Reconciling items (6 068) (3 725)
External customers (3 566) (1 453)
Local customers (2 502) (2 272)
57 993 56 890
Segment result
Special lubricants and allied chemicals 348 1 708
Lubricant powders/Metal powders 1 051 1 294
Other 257 366
Reconciling items (186) (401)
1 470 2 967
Segment assets
Special lubricants and allied chemicals 66 375 57 762
Lubricant powders/Metal powders 13 388 11 558
Other 26 571 25 193
Reconciling items (24 748) (21 572)
81 586 72 941
Segment liabilities
Special lubricants and allied chemicals 37 712 29 395
Lubricant powders/Metal powders 3 370 1 896
Other 19 623 20 720
Reconciling items (24 745) (21 623)
35 960 30 388
RECONCILIATION OF HEADLINE EARNINGS
Six months to Six months to
31 August 31 August
2014 2013
R'000 R'000
Profit attributable to shareholders 1 225 1 660
Loss on disposal of property, plant and equipment 303 –
Income tax effect on disposal (85) –
Headline earnings 1 443 1 660
Weighted average number of ordinary shares
in issue ('000) 8 143 8 143
Headline earnings per ordinary share
– basic and diluted (cents) 17,7 20,4
BASIS OF PREPARATION
The condensed consolidated interim results have been prepared using the measurement and
recognition requirements of the International Financial Reporting Standards (IFRS) and the South
African Institute of Chartered Accountants (SAICA) Financial Reporting Guides as issued by the
Accounting Practices Committee, in accordance with IAS 34: Interim Financial Reporting and in
the manner required by the JSE Listings Requirements and the South African Companies Act,
No. 71 of 2008.
Accounting policies and methods of computation are consistently applied as in the 2014 audited
annual financial statements.
Condensed consolidated interim financial statements are prepared by: Financial Director
HJ van Heerden – BCom (Acc).
Condensed consolidated interim financial statements date of publication – 31 October 2014.
COMMENTARY
POINTS OF INTEREST
- Group turnover is up by nearly 2%.
- Interim gross cash dividend declared of 10 cents per share.
- Net asset value increased from 522,6 cents to 560,3 cents per share.
EXECUTIVE CHAIRMAN'S STATEMENT
We have exhibited at the Automechanika exhibition in Frankfurt since 1985. This biennial
event was very successful from a general point of view and as well as for Spanjaard, this year's
show boasted 4 631 exhibitors from 71 countries with more than 140 000 trade visitors from
173 countries. We believe the investment will provide us with a good return.
The turmoil in the mining industry has put our Industrial division's performance under pressure,
as we are an important supplier to several of the large platinum mining operations. On the other
hand, we have seen satisfactory growth in our South African Consumer/Automotive division.
The implementation of the new ERP system was completed during the first half of the year.
Though the implementation posed a challenge, we are confident that the new system will
improve the support of the operations.
The following items contributed to the increase in our operating expenses: effect of the weak
Rand on the cost of export freight which is quoted in US$; the imposition of the e-toll has
impacted our costs from our suppliers due to transport costs and the increase in our labour
costs as previously reported.
The sale of the Alrode property was completed during the first six months of this financial year
realising a loss of R303 000, on the revalued book value as at 28 February 2014.
The net decrease in cash and cash equivalents were due to the following:
- Increase in working capital;
- Increase in deposits also reflected in current assets.
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 increases in some of the manufacturing expenses. The
Industrial division expects to recoup some of the losses suffered during the mining strikes.
The international sales team is working extremely hard to make up for the growth that we did not
achieve during the first half of the year. We are optimistic that we will achieve a reasonably good
set of results for the second half of the year.
The decision during the 2014 financial year to dispose of part of the Lubricant Powders division
led to a 43% decrease in turnover. Through effective cost management, the division showed a
very satisfactory profit of R1,05 million.
INTERIM DIVIDEND
Notice is hereby given that Dividend No. 26 of 10 (ten) cents per ordinary share has been
declared for the six months ended 31 August 2014.
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 10 cents per share for shareholders exempt from Dividends
Tax;
- no Secondary Tax on Companies' credits have been utilised;
- the net local dividend amount is 8,5 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, 14 November 2014.
Shares will trade ex-dividend from Monday, 17 November 2014.
The record date will be Friday, 21 November 2014 and payment will be made on Monday,
24 November 2014.
Share certificates may not be dematerialised/rematerialised between Monday, 17 November 2014
and Friday, 21 November 2014, both days inclusive.
By order of the Board
Mrs SF Pitchford
Company Secretary
31 October 2014
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)
* Independent Non-executive
Registered office
748 – 750 Fifth Street, Wynberg, Sandton, 2090
Transfer Secretaries
Computershare Investor Services Proprietary Limited, 70 Marshall Street, Johannesburg, 2001
Sponsors
Arbor Capital Sponsors Proprietary Limited, 54 Maxwell Drive, Woodmead, 2191
Email: info@spanjaard.biz
Website: www.spanjaard.biz
Available in Afrikaans at the registered offices of Spanjaard Limited.
Date: 31/10/2014 07:05:00 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.
Sharenet Sites 
