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Reviewed Provisional Group Results for the year ended 28 February 2015
Spanjaard Limited
(Incorporated in the Republic of South Africa)
Registration number 1960/004393/06
Share code: SPA ISIN: ZAE000006938
("Company" or "Group")
REVIEWED PROVISIONAL GROUP
RESULTS FOR THE YEAR ENDED
28 FEBRUARY 2015
CONSOLIDATED STATEMENT OF PROFIT AND LOSS AND
OTHER COMPREHENSIVE INCOME
Year ended Year ended
28 February 28 February
2015 2014
Reviewed Audited
R'000 R'000
Revenue 121 427 113 766
Turnover 119 832 111 861
Cost of sales (83 750) (72 109)
Gross profit 36 082 39 752
Operating expenses (36 016) (32 171)
Depreciation and amortisation (1 468) (2 569)
Finance (cost)/income – net (1 231) (1 235)
Profit/(Loss) before tax (2 633) 3 777
Income tax expense 1 140 (1 416)
Profit/(Loss) from continuing operations (1 493) 2 361
Discontinued operations
Profit from discontinued operations – 97
Profit/(Loss) for the year (1 493) 2 458
Other comprehensive income
Items that will be reclassified
Movement in foreign currency translation reserve (189) 60
Items that will not be reclassified
Net profit on revaluation on property, plant and
equipment 5 801 374
Total comprehensive income/(loss) for the year
attributable to ordinary shareholders 4 119 2 892
Earnings and diluted earnings per ordinary share (18,3) 30,2
– Continuing operations (18,3) 29
– Discontinued operations – 1,2
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at As at
28 February 28 February
2015 2014
Reviewed Audited
R'000 R'000
Assets
Non-current assets 38 087 30 160
Property, plant and equipment 36 638 28 800
Goodwill 437 437
Intangibles 1 012 923
Current assets 41 102 39 022
Non-current assets held for sale – 3 759
Total assets 79 189 72 941
Equity and liabilities
Capital and reserves attributable to the
company's equity holders 44 392 42 553
Ordinary shares and premium 6 871 6 871
Reserves 37 521 35 682
Non-current liabilities 7 517 9 377
Borrowings 3 088 4 253
Deferred tax liabilities 4 429 5 124
Current liabilities 27 280 21 011
Total equity and liabilities 79 189 72 941
CONSOLIDATED STATEMENT OF CASH FLOW
Year ended Year ended
28 February 28 February
2015 2014
Reviewed Audited
R'000 R'000
Cash flows from operating activities (3 763) (3 018)
Cash flows from investing activities (304) 1 093
Cash flows from financing activities (1 291) (1 616)
Net (decrease)/increase in cash and cash equivalents (5 358) (3 541)
Cash and cash equivalents at beginning of year (223) 3 318
Cash and cash equivalents at end of year (5 581) (223)
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
As at As at
28 February 28 February
2015 2014
Reviewed Audited
R'000 R'000
Ordinary shares 407 407
Share premium 6 464 6 464
Foreign currency translation reserve (730) (541)
Opening balance (541) (601)
Movement for the year (189) 60
Revaluation reserve 9 266 8 082
Opening balance 8 082 8 296
Net movement for the year 1 184 (214)
Retained earnings 28 985 28 141
Opening balance 28 141 27 294
Net movement for the year 844 847
Total shareholders' equity 44 392 42 553
DIVIDENDS
Dividend declared per ordinary
share (cents)
– interim 10,0 15,0
– final 18,0 12,0
SUPPLEMENTARY INFORMATION
Year ended Year ended
28 February 28 February
2015 2014
Reviewed Audited
R'000 R'000
Capital expenditure 3 736 2 210
OPERATING SEGMENTS
Year ended Year ended
28 February 28 February
2015 2014
Reviewed Audited
R'000 R'000
Segment turnover
Special lubricants and allied chemicals 111 900 106 864
External foreign customers 26 373 18 076
External local customers 85 527 88 788
Metal powders 7 987 6 675
External foreign customers 5 502 3 572
External local customers 2 485 3 103
Other 5 678 3 750
External foreign customers 5 678 3 750
Reconciling items (5 733) (5 428)
Inter-segment sales (5 733) (5 428)
119 832 111 861
Year ended Year ended
28 February 28 February
2015 2014
Reviewed Audited
R'000 R'000
Segment result
Special lubricants and allied chemicals (2 689) 2 862
Metal powders 420 1 249
Other 1 848 12
Reconciling items (981) 889
Earnings before interest and tax (1 402) 5 012
Segment assets
Special lubricants and allied chemicals 65 388 57 762
Metal powders 12 288 11 558
Other 28 612 25 193
Reconciling items (27 099) (21 572)
79 189 72 941
Segment liabilities
Special lubricants and allied chemicals 38 181 29 395
Metal powders 3 259 1 896
Other 19 843 20 720
Reconciling items (26 486) (21 623)
34 797 30 388
RECONCILIATION OF HEADLINE EARNINGS
Year ended Year ended
28 February 28 February
2015 2014
Reviewed Audited
Continuing operations R'000 R'000
Profit/(Loss) attributable to shareholders (1 493) 2 361
(Profit)/Loss on disposal of property,
plant and equipment 302 (1 258)
Income tax effect on disposal (85) 352
Headline earnings (1 276) 1 455
Weighted average number of ordinary
shares in issue ('000) 8 143 8 143
Headline earnings per ordinary share
– basic and diluted (cents) (15,7) 17,9
Year ended Year ended
28 February 28 February
2015 2014
Reviewed Audited
Discontinued operations R'000 R'000
Profit attributable to shareholders – 97
Headline earnings – 97
Weighted average number of ordinary
shares in issue ('000) – 8 143
Headline earnings per ordinary share
– basic and diluted (cents) – 1,2
BASIS OF PREPARATION
The reviewed condensed consolidated provisional results have been prepared in accordance
with the framework concepts using the measurement and recognition requirements of the
International Financial Reporting Standards (IFRS), the South African Institute of Chartered
Accountants (SAICA) Financial Reporting Guides as issued by the Accounting Practices
Committee, containing the information required by IAS 34: Interim Financial Reporting and
in the manner required by the JSE Listings Requirements and the South African Companies
Act, 71 of 2008.
Accounting policies and methods of computation are consistently applied as in the 2014 audited
annual financial statements except for the change in the tax rates used for calculating the
applicable tax on the revaluation of the property, plant and equipment.
Condensed group reviewed results prepared by: Financial Director HJ van Heerden –
B.Com (Acc).
Condensed group reviewed results date of publication: 5 June 2015.
COMMENTARY
During the period under review, the group experienced extremely harsh trading conditions,
mainly due to the upheavals in the mining industry and at Eskom, as well as exceptionally high
wage increases negotiated by the unions. These negative effects were exacerbated by the
installation of a new Enterprise Resource Planning (ERP) system, which required the services of
three separate contractors to finally achieve some measure of success. This resulted, inter alia,
in severe disruption to management information systems and ultimately on the results achieved
during the 2015 financial year.
The current year loss compared to the prior year profit and various deferred tax movements
resulted in the income tax variance, while the movement in the Foreign Currency Translation
Reserve was due to the effect of the weakening of the Rand on the translation of the foreign
subsidiary.
As per group policy, investment property as well as plant and equipment were revalued during
the year, causing an increase in fixed assets together with the ERP system as explained above.
The repayment of the mortgage bond was responsible for the decrease in borrowings and the
increase of the bank overdraft at year-end caused current liabilities to increase.
DIVIDENDS
Dividend No. 27 of 18 (eighteen) cents per ordinary share was declared on 26 February 2015 for
the year ended 28 February 2015.
The dividend was 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 was disclosed:
– the dividend was declared out of profits available for distribution;
– the local Dividends Tax rate was 15%;
– the gross local dividend amount was 18 cents per share for shareholders exempt from
Dividends Tax;
– no Secondary Tax on Companies' credits was utilised;
– the net local dividend amount was 15,3 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 were applicable to the dividend:
The last date to trade in order to be eligible for the dividend was Friday, 15 May 2015.
Shares traded ex-dividend from Monday, 18 May 2015.
The record date was Friday, 22 May 2015 and payment was made on Monday, 25 May 2015.
Share certificates were not able to be dematerialised/rematerialised between Monday, 18 May
2015 and Friday, 22 May 2015, both days inclusive.
AUDIT REVIEW
The results have been reviewed by the Group's auditors, Mazars. Their unqualified review opinion
is available for inspection at the Company's registered office. Their review was conducted
in accordance with ISRE 2410 "Review of interim financial information performed by the
independent auditor of the entity."
Mrs SF Pitchford
Company Secretary
5 June 2015
Directors
RJW Spanjaard (Executive Chairman), GF Cort, Mrs S Hari*, BL Montgomery*, CKT Palmer,
Prof DP van der Nest*, HJ van Heerden (Financial Director)
*Independent Non-executive
Ms E Nepgen resigned as Director on 26 May 2015.
Registered office
748 – 750 Fifth Street, Wynberg, Sandton, 2090
Transfer Secretaries
Computershare Investor Services Proprietary Limited, 70 Marshall Street, Johannesburg, 2001
Sponsor
Arbor Capital Sponsors Proprietary Limited, Ground Floor, ONE Health Building,
Woodmead North Office Park, 54 Maxwell Drive, Woodmead
Email: info@spanjaard.biz
Website: www.spanjaard.biz
Date: 05/06/2015 05:15:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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