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Provisional summary audited group results
CROOKES BROTHERS LIMITED
(Incorporated in the Republic of South Africa)
Registration No. 1913/000290/06
Share code : CKS ISIN No: ZAE000001434
("Crookes Brothers" or "the company" or "the group")
PROVISIONAL SUMMARY AUDITED GROUP RESULTS
FOR THE YEAR ENDED 31 MARCH 2016 AND FINAL DIVIDEND DECLARATION
The audited results of the group for the year ended 31 March 2016 together with those of the previous year are
set out below:
Year ended Year ended
SUMMARY CONSOLIDATED
STATEMENT OF COMPREHENSIVE INCOME 31 March 31 March
(R000's) 2016 2015
audited audited
Revenue 542 712 526 087
Operating profit 87 538 61 109
Share of profit of associate companies 3 549 655
Investment income 3 956 3 211
Finance costs (8 026) (7 316)
Capital items - 251
Profit before taxation 87 017 57 910
Taxation (25 254) (14 774)
Profit for the year 61 763 43 136
Other comprehensive (loss)/income net of income tax
Items that will not be reclassified subsequently to profit or loss:
Remeasurement of defined benefit surplus (115) 1 962
Remeasurement of post-employment medical aid obligation 1 773 (876)
Items that may be reclassified subsequently to profit or loss:
Reclassification adjustments relating to available-for-sale financial assets disposed of in the year - (204)
Net fair value gain on available-for-sale financial assets during the year 128 15
Exchange differences on translating foreign operations (28 040) (2 121)
Other comprehensive loss for the year, net of income tax (26 254) (1 224)
Total comprehensive income for the year 35 509 41 912
Profit for the year attributable to:
Owners of the company 60 465 40 697
Non-controlling interests 1 298 2 439
61 763 43 136
Total comprehensive income attributable to:
Owners of the company 34 211 39 473
Non-controlling interests 1 298 2 439
35 509 41 912
Earnings per share (cents)
Basic 453.7 323.9
Diluted 452.0 317.9
Year ended Year ended
RECONCILIATION OF HEADLINE EARNINGS 31 March 31 March
(R000's) 2016 2015
audited audited
Profit for the year attributable to owners of the company 60 465 40 697
Adjusted for:
Capital (profit)/loss on disposal of land, buildings, plant and equipment (399) 1 165
Profit on disposal of shares - (251)
Tax effect of the adjustments 280 (80)
Headline earnings 60 346 41 531
Headline earnings per share (cents)
Headline earnings per share 452.9 330.6
Headline earnings per share (diluted) 451.1 324.5
Year ended Year ended
DIVIDEND DECLARATION 31 March 31 March
2016 2015
audited audited
Dividends per share (cents)
Ordinary dividends declared per share - interim 35.0 65.0
Ordinary dividends declared per share - final 115.0 85.0
150.0 150.0
Year ended Year ended
SUMMARY CONSOLIDATED
STATEMENT OF CHANGES IN EQUITY 31 March 31 March
2016 2015
(R000's) audited audited
Shareholders' equity at beginning of year 783 603 763 778
Movements in:
Share capital and premium - share issue and exercise of share options 215 000 900
Share issue costs written off against share premium (1 738) -
Share-based payment reserve 398 244
Other comprehensive loss for the year (28 027) (348)
Changes in retained earnings 46 591 19 029
Net profit attributable to owners of the company 60 465 40 697
Remeasurement of post-employment obligations 1 773 (876)
Net profit attributable to non-controlling interests 1 298 2 439
Dividends paid (16 945) (23 231)
Shareholders' equity at end of year 1 015 827 783 603
Year ended Year ended
SUMMARY CONSOLIDATED
STATEMENT OF FINANCIAL POSITION 31 March 31 March
2016 2015
(R000's) audited audited
ASSETS
Non-current assets 835 625 798 048
Property, plant and equipment 494 705 514 116
Bearer biological assets 309 652 254 234
Unlisted investments 710 727
Investment in associates 23 612 19 336
Retirement benefit surplus - 9 095
Unsecured loans: long-term - 540
Deferred taxation asset 6 946 -
Current assets 495 433 313 937
Inventories 105 058 60 655
Biological assets - crops and livestock 196 065 184 864
Trade and other receivables 53 963 45 659
Taxation 4 356 9 686
Retirement benefit surplus 9 708 -
Unsecured loans: short-term 540 -
Cash and cash equivalents 125 743 13 073
Total assets 1 331 058 1 111 985
EQUITY AND LIABILITIES
Capital and reserves 1 015 827 783 603
Share capital and premium 226 271 13 009
Retained earnings 808 387 761 356
Investment revaluation reserve 997 869
Foreign currency translation reserve (25 315) 2 725
Share-based payment reserve 1 434 1 036
Equity attributable to owners of the company 1 011 774 778 995
Non-controlling interests 4 053 4 608
Non-current liabilities 232 191 213 500
Deferred taxation 136 175 118 320
Long term borrowings - interest bearing 42 967 39 162
Long term liability - interest free 53 049 45 082
Post-employment medical aid obligation - 10 936
Current liabilities 83 040 114 882
Trade and other payables and provisions 49 471 23 229
Short term borrowings - interest bearing 24 629 91 653
Post-employment medical aid obligation 8 940 -
Total equity and liabilities 1 331 058 1 111 985
Year ended Year ended
SUMMARY CONSOLIDATED
STATEMENT OF CASH FLOWS 31 March 31 March
2016 2015
(R000's) audited audited
Operating profit for the year 87 538 61 109
Adjustment for non-cash items 24 891 13 204
112 429 74 313
Net working capital changes (30 778) (12 205)
Cash generated from operations 81 651 62 108
Cash flows from operating activities 68 748 36 703
Cash generated from operations 81 651 62 108
Interest received 3 847 3 045
Interest paid (8 026) (7 316)
Income taxes paid (8 358) (21 134)
Purchase of annuities for post-employment medical aid benefits (366) -
Cash flows from investing activities (89 298) (106 896)
Proceeds on disposal of property, plant, equipment 665 1 178
Proceeds on disposal and redemption of investments 100 15 038
Investment in property, plant and equipment - expansion* (26 557) (50 206)
Investment in property, plant and equipment - improvement* (7 220) (14 093)
Investment in property, plant and equipment - replacement* (12 528) (23 782)
Expansion of area under crop (43 058) (38 569)
Investment in associate companies (727) -
Other investing activities 27 3 538
Cash flows from financing activities 133 220 54 419
Dividends paid (16 945) (23 231)
Proceeds from issue of equity instruments of the company 215 000 -
Payment for share issue costs (1 738) -
Net (decrease)/increase in borrowings (63 097) 77 650
Net increase/(decrease) in cash and cash equivalents 112 670 (15 774)
Cash and cash equivalents at beginning of year 13 073 28 847
Cash and cash equivalents at end of year 125 743 13 073
Cash flow from operating activities - per share (cents) 515.9 292.1
* Prior year expanded to split investment in property, plant and equipment into categories of expansion, improvement and replacement.
Year ended Year ended
OTHER GROUP SALIENT FEATURES 31 March 31 March
(R000's) 2016 2015
audited audited
Depreciation 32 870 30 502
Capital expenditure and expansion of area under crop 89 363 126 650
Capital commitments
- Contracted and anticipated 9 880 15 623
- Authorised but not contracted 221 351 26 457
231 231 42 080
Guarantees 86 86
Net asset value per share (cents) 6 655 6 231
Number of shares in issue 15 264 317 12 576 817
Weighted average number of shares on which earnings per share (and headline
earnings per share) are based 13 325 792 12 563 913
Year ended Year ended
SUMMARY CONSOLIDATED
SEGMENTAL ANALYSIS 31 March 31 March
2016 2015
(R000's) audited audited
Revenue
Sugar cane 283 321 281 281
Deciduous fruit 134 012 141 851
Bananas 104 962 84 930
Other operations 20 417 18 025
542 712 526 087
Operating profit
Sugar cane 61 434 73 366
Deciduous fruit 57 788 16 183
Bananas 26 797 15 949
Macadamias (3 191) (5 183)
Other operations/sundry income 6 291 7 630
Unallocated profit/(loss) on disposal of plant and equipment 399 (1 165)
Unallocated operating lease rental - Komatipoort* (9 893) (2 300)
Unallocated Unrealised foreign exchange loss* (9 939) (3 772)
Unallocated corporate expenses* (42 148) (39 599)
87 538 61 109
Assets
Sugar cane 412 293 442 927
Deciduous fruit 401 168 337 075
Bananas 44 909 37 969
Macadamias 174 545 147 468
Other operations 39 332 10 197
Investments and loans 24 862 20 603
Unallocated corporate current assets 233 949 115 746
1 331 058 1 111 985
Liabilities
Sugar cane** 54 866 45 317
Deciduous fruit** 1 598 -
Bananas** 24 539 20 783
Macadamias** 30 301 24 704
Other operations** 10 000 10 000
Unallocated corporate liabilities** 193 927 227 578
315 231 328 382
* Prior year expanded to separately disclose operating lease rental paid for the Komatipoort estate and unrealised foreign
exchanges losses incurred.
** Prior year reclassified to disaggregate inventory and segmental liabilities from unallocated corporate assets and liabilities,
so as to reallocate to the relevant crop segment.
Year ended Year ended
NOTES TO THE SUMMARY FINANCIAL STATEMENTS 31 March 31 March
2016 2015*
(R000's) audited audited
1. Biological assets
1.1 Growing crops and orchards
At fair value
Sugar cane 229 333 232 574
Deciduous fruit 154 135 124 019
Bananas 36 261 29 128
Macadamias 78 518 48 208
Grain and vegetables 6 543 4 224
Carrying amount at end of year 504 790 438 153
Included in the consolidated statement of financial position as:
Non-current assets - bearer biological assets 309 652 254 234
Current assets - crops 195 138 183 919
504 790 438 153
Included in the consolidated statement of financial position as:
Biological assets - owned 451 741 393 071
Biological assets - leased 53 049 45 082
504 790 438 153
Reconciliation of carrying amounts of bearer, growing crops and orchards:
Carrying value at beginning of year 438 153 382 691
Gains arising from changes attributable to physical and price changes 267 096 247 958
Decreases due to harvest and sales (186 767) (190 372)
Exchange rate translation (13 692) (2 124)
Carrying value at end of year 504 790 438 153
In terms of IAS 41 Agriculture, sugar cane (roots and standing cane), trees (banana, deciduous and macadamia),
and growing crops (bananas, deciduous fruit, grain, vegetables and macadamia nuts) are accounted for as
biological assets and are measured and recognised at fair value. Changes in fair value, replanting and agricultural
operating costs incurred are included in profit or loss.
Non-financial measurements that affect the group's biological asset valuation include weather and climate, in the form of
rainfall, heat and evaporation. Stability of electricity supply, water rights and water restrictions impact on the group's ability
to irrigate its bearer assets and standing crops. In South Africa, the use of farmland for commercial farming purposes is
regulated by the Department of Agriculture.
The determination of the fair value of the roots and trees and valuation inputs is more comprehensively described in
note 1.2 of the notes to the summary financial statements below.
The fair value of crops and agricultural produce is determined based on current market prices less estimated
selling costs.
* Prior year expanded to split biological assets by owned and leased.
Year ended Year ended
31 March 31 March
2016 2015
(R000's) audited audited
1.2 Biological asset valuations
The following key assumptions have been used in determining the fair value of biological assets:
Sugar cane
(i) Standing sugar cane
Expected area to harvest - after 31 March
- South Africa (ha) 4 008 3 672
- Swaziland (ha) 2 288 2 360
- Zambia (ha) 415 397
Estimated yields
- South Africa (tons/ha) 77.2 101.5
- Swaziland (tons/ha) 86.2 104.9
- Zambia (tons/ha) 111.0 126.7
Average maturity of cane at 31 March
- South Africa (%) 64 63
- Swaziland (%) 64 64
- Zambia (%) 64 64
Estimated RV price - South Africa (Rands) 4 446 3 842
Estimated sucrose price - Swaziland (Rands) 3 416 2 773
Estimated ERC price - Zambia (Rands) 3 808 3 876
(ii) Cane root
Estimated productive ratoons (years) 6 to 8 6 to 8
Average indexed current replacement cost of
establishment - reduced according to age (R/ha) 10 387 9 912
Inflation escalation (%) 5.2 5.6
Deciduous fruit
(i) Crop
Expected area to harvest - after 31 March (ha) 183 131
Estimated yields (tons/ha) 54.4 64.1
Average maturity of crop at 31 March (%) 84.2 88
Estimated net price per kg - apples and pears (Rands) 3.85 2.73
Estimated packout
Class 1 (%) 40.8 40.5
Class 2 (%) 16.6 14.7
Class 3 (%) 10.7 10.0
Juice (%) 31.9 34.8
(ii) Deciduous trees
Estimated productive life (years) 30 30
Average indexed current replacement cost of
establishment - reduced according to age (R/ha) 208 777 188 047
Inflation escalation (%) 5.2 5.6
Bananas
(i) Crop
Expected area to harvest - after 31 March (ha) 354 319
Estimated yields (tons/ha) 55.2 53.6
Average maturity of crop at 31 March (%) 50.0 50.0
Estimated net price per carton (Rands) 103.73 89.10
(ii) Banana plants
Estimated productive life (years) 9 9
Average indexed current replacement cost of
establishment - reduced according to age (R/ha) 55 922 52 283
Inflation escalation (%) 5.2 5.6
Macadamias(1)
(i) Crop
Expected area to harvest - after 31 March (ha) - -
(ii) Macadamia trees
Estimated productive life (years) 30 30
Average indexed current replacement cost of
establishment - reduced according to age (R/ha) 290 199 199 472
Inflation escalation (%) 6.5 2.7
Vegetables(2)
(i) Crop
Expected area to harvest - after 31 March (ha) - 1.5
Estimated yields (tons/ha) - 40
Average maturity of crop at 31 March (%) - 33
Estimated net price per pocket (Rands) - 54.52
Grain
(i) Crop
Expected area to harvest - after 31 March (ha) 453 294
Estimated yields (tons/ha) 7.5 9.2
Average maturity of crop at 31 March (%) 61 78
Estimated net price per ton (Rands) 3 846 3 402
(1) A macadamia tree is expected to reach full production at an age of 7 years.
Trees under crop are presently 3 to 4 years old.
(2) The production of vegetables in Mozambique ceased during the financial year, due to extra focus on the group's
macadamia development.
Year ended Year ended
31 March 31 March
2016 2015
(R000's) audited audited
2. Fair value measurement
The directors are of the opinion that the book value of financial assets and liabilities does not exceed their approximate fair value.
The following table provides an analysis of financial instruments that are measured subsequent to initial recognition at fair value,
grouped into levels 1 to 3 based on the degree to which the fair value is observable.
- Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities.
- Level 2 fair value measurements are those derived from inputs other than quoted prices included within level 1 that are observable for
the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived prices).
- Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not
based on observable market data (i.e. unobservable inputs).
2016 Level 1 Level 2 Level 3 Total
Unlisted investments - 710 - 710
Biological assets - - 504 790 504 790
Inventories - agricultural produce - - 66 565 66 565
Cash and bank balances 125 743 - - 125 743
125 743 710 571 355 697 808
2015
Unlisted investments - 727 - 727
Biological assets - - 438 153 438 153
Inventories - agricultural produce - - 39 388 39 388
Cash and bank balances 13 073 - - 13 073
13 073 727 477 541 491 341
The group's financial assets and financial liabilities are measured at fair value on a recurring basis.
There have been no transfers between level 1 and 2 of any financial assets in the current financial reporting period.
The following table gives information about how the fair values of these financial assets and financial liabilities are determined (in particular,
the valuation technique(s) and inputs used).
Valuation technique(s) Significant Relationship of
Financial assets/financial liabilities Fair value as at Fair value hierarchy and key input(s) unobservable inputs to unobservable inputs to
fair value fair value
2016 2015
Quoted bid prices in an
Unlisted investments 710 727 Level 2 active market. N/A N/A
Escalated average
current replacement
costs of planting and Fair value derived by
Biological assets - bearer 309 652 254 234 Level 3 establishment, reduced escalating planting and
in value over its Current inflation adjusted establishment costs by
productive life. replacement cost. annual inflation.
Current estimated Estimated price, yield In arriving at the fair
market prices for the and inflation is subject to value, the estimated
following season, less fluctuation and change. price is applied against
the estimated costs of Prices are not based on the expected area to
Biological assets - crops 195 138 183 919 Level 3 harvesting, transport, published or quoted harvest, together with
packing and point-of-sale market and commodity the estimated yields and
costs. listings. average maturity of the
crop.
In arriving at the fair
Current estimated Estimated price and value at the date of
market prices for the packout is subject to harvesting, the estimated
following season, less fluctuation and change. price is applied against
Inventories - agricultural produce 66 565 39 388 Level 3 estimated costs of Prices are not based on the estimated point of
harvesting, transport, published or quoted sale costs incurred, in
packing and point-of-sale market and commodity bringing the produce to
costs. listings. their present location
and condition to be sold.
The group's growing crops, banana plants, trees, sugar cane roots and agricultural produce are measured at fair value which is determined using estimated
unobservable inputs and is categorised as level 3 under the fair value hierarchy. The unobservable inputs are disclosed in the above fair value hierarchy.
The fair value of sugar cane roots is determined on a current amortised cost basis, which is adjusted for cost increases, and the amortisation takes place
over the estimated number of productive ratoons (approximately 6 to 8 years life span).
The fair value of banana plants, deciduous and macadamia trees are determined using the average current replacement costs associated with planting and
establishing them. The fair values of these plants and trees are then reduced in value, over their estimated productive lives (9 years in the case of banana
plants and 30 years in the case of the trees).
The fair value of standing crops and agricultural produce is determined by their growth factor, estimated yield, quality, age and selling prices less costs to
harvest, transport and sell.
Changes in the fair value of biological assets are included in profit or loss, with an increase of R72 million (2015: increase of R54 million) being recognised
in profit or loss in the current year. A reconciliation of the change in fair value for the year is included in note 1.1.
The directors consider the carrying amounts of financial assets and financial liabilities recognised in the consolidated financial statements to approximate
their fair values.
Sensitivity analysis 2016 2015
The impact of a 1% change in the inflation rate on bearer biological assets will have the following effect on pre-tax profit or loss:
Sugar cane roots 566 314
Deciduous fruit trees 971 806
Macadamia trees 470 110
2 007 1 230
The impact of a 1% change in the price or yield of biological assets - crops will have the following effect on pre-tax profit or loss:
Standing sugar cane 1 809 2 300
Deciduous fruit 287 155
Bananas 246 190
Vegetables - 1
Grain 78 42
2 420 2 688
The impact of a 1% change in the price of agricultural produce will have the following effect on pre-tax profit or loss:
Deciduous picked produce - stock 647 394
The impact of a 1% change in the packout of biological assets from Class 1 to juice will have the following effect
on pre-tax profit or loss:
Deciduous fruit 438 248
The impact of a 1% change in the packout of agricultural produce from Class 1 to Class 3 will have the following effect
on pre-tax profit or loss:
Deciduous fruit 590 370
COMMENTS ON RESULTS
Despite the impact of the ongoing drought affecting large parts of Southern Africa , headline earnings for the
year, at 452.9 cents per share, increased by 37% on the previous period (2015: 330.6 cents) and operating
profit of R 88 million (2015: R61 million) was 44% higher. Cash generated by operations improved significantly
to R 82 million (2015: R 62 million) driven by good profits from the deciduous and banana divisions.
Corporate activities
The share issue was concluded on 21 December 2015, raising R 215 million, improving the group's gearing
ratio to 6, 7% (2015: 16.7%).
Operational activities
Increased profit from deciduous fruit of R 58 million (2015: R 16 million) and bananas of R 28 million (2015: R 16
million) was offset by a 15% decline in the profit from the cane division to R 62 million (2015: 73 million) due to
depressed cane yields as a consequence of the drought.
The strong performance of both divisions resulted from improved yields and quality following the large scale
replanting and upgrading programs undertaken in recent years.
Substantial projects currently being implemented include:
- Development of the Renishaw Hills residential housing estate;
- The continuing development of the macadamia project located near Gurue in northern Mozambique;
and
- A 300 ha greenfield banana development in southern Mozambique in conjunction with Silverlands
Mozambique.
The group has traditionally been highly exposed to the sugar industry, with cane contributing the largest
portion of income. As our diversification efforts bring results, this dependence is declining. In the past year, for
the first time, income from cane constituted less than 50% of group operating income. Notwithstanding the
effect of the drought on the income from cane, we expect this trend to continue into the future.
Prospects
The 2016/17 year is likely to be tough for the group's cane operations, with little relief expected from the
difficult climatic conditions, as we go into winter with very low dam levels and restricted irrigation in
Mpumalanga and Swaziland. It is expected that the reduced production will be partially offset by excellent
sugar prices, however.
We anticipate that deciduous fruit volumes will continue to increase as new orchards come into production,
although growth might slow next year after the bumper crop of the current season. This division will become
increasingly important to the group in the future.
The effect of the drought on the banana crop tonnage and quality are unknown at this stage, but early
indications are good and we expect good yields and grades in 2017. Prices are also expected to be good in
2017 as the supply to the market is affected by the drought.
The group's prospects for the medium term are exciting, with the replanted deciduous fruit orchards
approaching maturity, the macadamia orchards coming into production in 2017 and the implementation of
the Renishaw development imminent. Following the capital raising exercise, several high return
projects/acquisitions are under evaluation to build on the group's expansion strategy.
Capital Planning
Project investment and capital expenditure of R 221 million has been authorised by the board for the 2017
financial year for new investments, ongoing continuous improvement projects and fixed asset replacement.
CASH DIVIDEND DECLARATION
The board of directors, ("the board") has resolved to declare a final gross cash dividend of 115.0 cents per
ordinary share ("the cash dividend") to ordinary shareholders recorded in the register of the company at the
close of business on Friday, 1 July 2016.
In respect of the final gross cash dividend:
- the dividend has been declared from income reserves;
- the dividend withholding tax rate is 15% resulting in a net dividend of 97.75 cents per share to those
shareholders who are not exempt from dividend withholding tax;
- Crookes Brothers Limited tax reference number is 9696/001/71/9; and
- the issued number of shares as at declaration date is 15 264 317.
The cash dividend will be paid on Monday, 4 July 2016 to shareholders recorded in the books of the company
at close of business on the record date Friday, 1July 2016.
The salient dates of the declaration and payment of these dividends are as follows:
Last day to trade cum-dividend Friday 24 June 2016
Shares commence trading ex-dividend Monday 27 June 2016
Record date Friday 1 July 2016
Payment date Monday 4 July 2016
Share certificates may not be dematerialised or re-materialised between Monday, 27 June 2016 and Friday,
1July 2016, both days inclusive.
The above dividend is in addition to the interim dividend of 35.0 cents per share, which was declared on 26
November 2015, and brings the aggregate dividend in respect of the year ended 31 March 2016 to 150.0
cents (2015: 150.0 cents) per share.
ACCOUNTING POLICIES
The provisional summary consolidated financial statements are prepared in accordance with the
requirements of the JSE Listings Requirements ("Listings Requirements") for provisional reports, and the
requirements of the Companies Act of South Africa applicable to summary financial statements. The Listings
Requirements require provisional reports to be prepared in accordance with the framework concepts and
the measurement and recognition requirements of International Financial Reporting Standards (IFRS), the
SAICA Financial Reporting Guides as issued by the Accounting Practices Committee and Financial
Pronouncements as issued by the Financial Reporting Standards Council, and to also, as a minimum, contain
the information required by IAS 34, Interim Financial Reporting. The accounting policies applied in the
preparation of the consolidated financial statements, from which the summary consolidated financial
statements were derived, are in terms of IFRS and are consistent with the accounting policies applied in
the preparation of the 31 March 2015 consolidated financial statements. The group has adopted all
revised accounting pronouncements as issued by the IASB. The adoption of these standards had no
recognition and measurement impact on the financial results.
The results have been prepared by N Naidoo CA (SA) under the supervision of GL Veale CA (SA), the group
financial director.
The financial information has been prepared on the historical cost basis except for the valuation of biological
assets, certain financial instruments and share-based payments, which are at fair value. The principal
accounting policies are consistent with those of the previous financial year.
FAIR VALUE DISCLOSURE
The JSE requires that all the disclosure mandated by IFRS13 'Fair Value Measurement' be included in the
annual financial statements as well as in the provisional summary group results announcement.
At the specific request of the JSE, full details of the fair value disclosure around biological assets have been
included in this statement under group results.
AUDITED RESULTS
These provisional summary consolidated financial statements for the year ended 31 March 2016 have been
audited by Deloitte and Touche who expressed an unmodified opinion thereon. The auditor has expressed
an unmodified opinion on the consolidated financial statements from which these provisional
summary consolidated financial statements were derived.
A copy of the auditor's report on the provisional summary consolidated financial statements and of the
auditor's report on the consolidated annual financial statements are available for inspection at the
company's registered office, together with the financial statements identified in the respective auditor's
reports.
The auditor's report does not necessarily report on all the information contained in the financial results
including commentary on future prospects. Shareholders are therefore advised that in order to obtain a full
understanding of the nature of the auditor's engagement they should obtain a copy of the auditor's report
together with the accompanying financial information from the company's registered office.
EVENTS AFTER THE REPORTING PERIOD
During the past period the government transferred a large portion of the Komati Estate leased by the group
to the Mawewe community. Following negotiations, it was decided to give up the 4 year balance of the
lease in favour of a 20 year joint venture with the community to lease and operate the farm. The joint
venture was implemented from 1 April 2016.
CHANGES TO THE BOARD OF DIRECTORS
During the year under review and to the date of this report, the following changes to the board took place:
- CJH Chance resigned as a non-executive director on 29 May 2015;
- TJ Crookes was appointed as a non- executive director on 10 July 2015;
- RGF Chance was appointed as non-executive director on 10 July 2015;
- T K Denton was appointed as non-executive director on 10 July 2015;
- PJ Barker retired as financial director on 31 March 2016;
- GL Veale was appointed as financial director, effective 1 April 2016.
NOTICE OF THE ANNUAL GENERAL MEETING AND POSTING OF ANNUAL REPORT
Notice is hereby given that the 103rd annual general meeting of shareholders of Crookes Brothers Limited ("Crookes
Brothers" or "the company"), in respect of the financial year ended 31 March 2016 will be held at the Durban Country
Club, Isaiah Ntshangase Road, Durban, 4001 on Friday, 29 July 2016, at 11h00 ("the AGM" or "the annual general
meeting").
The annual report will be posted to shareholders on or about 30 June 2016.
For and on behalf of the Board:
John Barton Guy Clarke
(Chairman) (Managing Director)
Mt Edgecombe 31 May 2016
Registered office and postal address Transfer secretaries
Kwashukela, 170 Flanders Drive, Mt Edgecombe, 4300 Computershare Investor Services (Pty) Ltd.
PO Box 611, Mt Edgecombe, 4300 PO Box 61051, Marshalltown, 2107
Sponsor Website
Sasfin Capital www.cbl.co.za
A division of Sasfin Bank Limited
Directors:
JR Barton * (Chairman), GS Clarke (Managing), GL Veale (Financial), TJ Crookes*, RGF Chance*, TK
Denton*#, JAF Hewat*, P Mnganga*, MT Rutherford*, RE Stewart*, G Vaughan-Smith*#.
* Non-executive director #British
Secretary:
Highway Corporate Services (Pty) Limited
Date: 31/05/2016 05:13:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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