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Audited Group Results for the year ended 29 February 2016
Spanjaard Limited
(Incorporated in the Republic of South Africa)
Registration number 1960/004393/06
Share code: SPA ISIN: ZAE000006938
("Company" or "Group")
CONSOLIDATED STATEMENT OF PROFIT AND LOSS AND OTHER COMPREHENSIVE INCOME
Year ended Year ended
29 February 28 February
2016 2015
Restated
Audited Audited
R'000 R'000
Revenue 125 825 119 097
Cost of sales (83 509) (81 456)
Gross profit 42 316 37 641
Other income 776 294
Distribution costs (3 916) (5 525)
Administrative expenses (31 639) (35 419)
Finance costs (1 287) (1 231)
Profit / (Loss) before tax 6 250 (4 240)
Taxation (1 244) 2 083
Profit / (Loss) from continuing operations 5 006 (2 157)
Other comprehensive income
Items that may be subsequently reclassified
Movement in foreign currency translation reserve (284) 258
Items that will not be be reclassified
Revaluation on property, plant and equipment – 3 275
Tax on revaluation on property, plant and equipment – (917)
Total comprehensive income for the year attributable to ordinary
shareholders 4 722 459
Earnings and diluted earnings per ordinary share 61.5 (26.5)
- Continuing operations 61.5 (26.5)
- Discontinued operations 0 0
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at As at As at
29 February 28 February 1 March
2016 2015 2014
Restated Restated
Audited Audited Audited
R'000 R'000 R'000
Assets
Non-current assets 32 051 34 597 30 160
Property, plant and equipment 29 412 31 256 27 717
Goodwill 437 437 437
Intangibles 2 202 2 904 2 006
Current assets 40 286 40 399 39 022
Inventories 17 433 19 202 17 230
Trade receivables and prepayments 20 911 15 865 17 811
Amount due by subsidiaries and related companies 0 0 73
Amount due by ultimate holding company 0 2 932 3 657
Current income tax receivable 346 1 774 248
Cash and cash equivalents 1 596 626 3
Total assets 72 337 74 996 69 182
Non-current assets held for sale 0 0 3 759
Total Assets 72 337 74 996 72 941
Equity and liabilities
Capital and reserves attributable to the
company's equity holders
Ordinary shares 407 407 407
Share premium 6 464 6 464 6 464
Reserves 35 995 32 576 35 235
Foreign currency translation reserve 131 415 157
Revaluation reserve 6 457 7 517 8 082
Share based payment compensation reserve 1 906 1 906 1 906
Retained earnings 27 501 22 738 25 090
Total Shareholders' Equity 42 866 39 447 42 106
Non-Current Liabilities 5 599 7 343 9 377
Borrowings 1 143 3 088 4 253
Deferred tax liabilities 4 456 4 255 5 124
Current Liabilities 23 872 28 206 21 458
Trade and other payables 13 335 17 393 16 998
Borrowings 2 717 3 087 3 214
Loans from ultimate holding company 1 953 0 0
Shareholders for dividends 1 362 1 518 1 020
Bank overdraft 4 505 6 208 226
Total Liabilities 29 471 35 549 30 835
Total Equity and Liabilities 72 337 74 996 72 941
CONSOLIDATED STATEMENT OF CASH FLOW
Year ended Year ended
29 February 28 February
2016 2015
Restated
Audited Audited
R'000 R'000
Cash flows from operating activities
Cash receipts from customers 120 352 119 749
Cash paid to suppliers and employees (116 559) (119 820)
Cash generated from operations 3 793 (71)
Interest paid (1 287) (1 231)
Tax received / (paid) 385 (2 067)
Net cash generated from / (used in) operating activities 2 891 (3 369)
Cash flows from investing activities
Purchases of property, plant and equipment (709) (2 139)
Proceeds on sale of property, plant and equipment 52 –
Purchases of intangible assets (388) (1 592)
Amounts due by subsidiaries and related companies
Receipts from – 73
Amount due by holding company - Receipts from 2 932 725
Proceeds on sale of Non-current assets held for sale – 3 759
Net cash generated from / (used in) investing activities 1 887 826
Cash flows from financing activities
Borrowings paid (2 852) (2 246)
Proceeds from borrowings 537 954
Loans from holding company - Loans received 2 001 –
Loans from holding company - Repayments made (48) –
Dividends paid to company's shareholders* (1 459) (1 782)
Net cash (used in) / generated from financing activities (1 821) (3 074)
Net increase in cash and cash equivalents 2 957 (5 617)
Cash and cash equivalents at beginning of year (5 582) (223)
Effects of exchange rate changes on cash and cash
equivalents (284) 258
Cash and cash equivalents at end of year (2 909) (5 582)
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Year ended Year ended
29 February 28 February
2016 2015
Restated
Audited Audited
R'000 R'000
Ordinary shares 407 407
Share premium 6 464 6 464
Foreign currency translation reserve restated 131 415
Opening balance 415 157
Net movement for the year (284) 258
Revaluation reserve 6 457 7 517
Opening balance 7 517 8 082
Net movement for the year (1 060) (565)
Share based payment compensation reserve restated 1 906 1 906
Opening balance 1 906 1 906
Net movement for the year – –
Retained earnings restated 27 501 22 738
Opening balance 22 738 25 090
Total comprehensive income (loss) for the year 5 006 (2 157)
Movement in reserves 1 060 2 085
Dividend declared (1 303) (2 280)
Total shareholders' equity 42 866 39 447
DIVIDENDS
Dividend declared per ordinary
share (cents)
– interim 0.0 10.0
– final 16.0 18.0
SUPPLEMENTARY INFORMATION
Year ended Year ended
29 February 28 February
2016 2015
Restated
Audited Audited
R'000 R'000
Capital expenditure 1 097 3 731
During the 2016 financial year Motor vehicles with a cost of R141 054 and accumulated depreciation of R140 051 were sold in the normal
course of business with a view on replacing mentioned assets. Office furniture and equipment with a cost of R64,627 and accumulated
depreciation of R32,610 were disposed of in the normal course of business. There were no disposals of Property, plant and equipment during
the 2015 financial year.
RELATED PARTY TRANSACTIONS
Year ended Year ended
29 February 28 February
2016 2015
Restated
Audited Audited
R'000 R'000
Transactions with close family members of key management
personnel 214 0
Amounts due by subsidiaries and related companies -
Receipts from 0 73
Amount due by holding company - Receipts from 4 933 725
Loans from holding company - Repayments made (48) 0
OPERATING SEGMENTS
Year ended Year ended
29 February 28 February
2016 2015
Restated
Audited Audited
R'000 R'000
Segment revenue
Special lubricants and allied chemicals 118 259 110 876
External foreign customers 25 635 25 349
External local customers 92 624 85 527
Metal powders 5 473 8 276
External foreign customers 4 039 5 279
External local customers 1 434 2 997
Other 7 075 9 724
External foreign customers 5 035 7 684
External local customers 2 040 2 040
Interdivisional transactions (4 982) (9 779)
Inter segment sales (4 982) (9 779)
125 825 119 097
Segment result
Special lubricants and allied chemicals 6 474 (2 971)
Metal powders (87) 420
Other 1 508 1 848
Interdivisional transactions (358) (2 306)
Earnings before interest and tax 7 537 (3 009)
Segment assets
Special lubricants and allied chemicals 60 895 63 451
Metal powders 13 522 12 854
Other 26 595 28 612
Interdivisional transactions (28 675) (29 921)
72 337 74 996
Segment liabilities
Special lubricants and allied chemicals 32 554 38 213
Metal powders 4 077 3 165
Other 15 537 19 843
Interdivisional transactions (22 697) (25 672)
29 471 35 549
RECONCILIATION OF HEADLINE EARNINGS
Year ended Year ended
29 February 28 February
2016 2015
Audited Audited
Continuing operations R'000 R'000
Profit / (Loss) attributable to shareholders 5 006 (2 157)
Loss on disposal of property,
plant and equipment 67 –
Income tax effect on disposal (19) –
Headline earnings 5 054 (2 157)
Weighted average number of ordinary
shares in issue ('000) 8 143 8 143
Headline earnings per ordinary share
– basic and diluted (cents) 62.1 (26.5)
BASIS OF PREPARATION
The audited condensed consolidated results have been prepared using the measurement and recognition
requirements of the International Financial Reporting Standard (IFRS), the South African Institute of
Chartered Accountants (SAICA) Financial Reporting Guides as issued by the Accounting Practices
Committee and in the manner required by the South African Companies Act, 71 of 2008. The accounting
policies and methods of computation are consistent with those of the Annual Financial Statements. This
abridged report is extracted from audited financial information but is not itself audited. The directors take
full repsonsibility for the preparation of the abridged report and that the financial information has been
correctly extracted from the underlying financial statements.
The condensed financial statements should be read in conjunction with the 2016 annual financial
statements. The 2016 annual financial statements and the related audit report can be viewed on the
company's website at www.spanjaard.biz.
The annual financial statements, from which this report is extracted, were audited in terms of the
Companies Act, 71 of 2008.
The audited condensed consolidated results has been prepared in accordance with IAS34.
Summarised group results prepared by: Financial Director - I. Saunders CA(SA)
COMMENTARY
Salient Features
- Revenue up 6%
- GP Margin improved by 1,9%
- Operating Expenses exceptionally well controlled
- Change in senior management in the first half the year
- Large improvement in cash position
- General turnaround in the business
Dear shareholder
We have had an incredibly turbulent year with many staff changes in key areas especially in the
Finance Department as well as at Board level.
We have successfully overcome these challenges and have put together a solid team that has settled
well into their respective positions.
During the year, most of our contracts and structures were reviewed and where necessary remedial action
was implemented to contain possible negative consequences.
The positive end results did not come easily and we have an excellent second half of the financial year
to thank for our relatively good bottom line. We caught up on lagging exports, but it was growth in our
local sales that really contributed to the improved sales figures. This combined with excellent cost control
throughout the company especially in areas such as marketing, transport, and staff costs resulted in
an achievement of a NPAT of R5 million.
Our balance sheet is looking progressively stronger with a reduction in debt and far better working
capital management in all areas.
We have a few exciting opportunities developing in the contract packaging space and the outlook for
the 2017 financial year looks positive despite the obvious challenges facing the South African
economy.
RESTATEMENT OF COMPARATIVE FIGURES - YEAR ENDED 28 FEBRUARY 2015
We wish to draw your attention to the fact that the comparative figures for the year ended 28
February 2015 have been restated due to numerous errors and reclassifications details of which can
be found in note 33 in the Integrated Annual Report 2016.
AUDIT OPINION
PricewaterhouseCoopers Inc. have audited the annual financial statements for the year ended 29
February 2016 from which this report is extracted and their unqualified audit report is available for
inspection at the Company's registered office.
NOTICE OF ANNUAL GENERAL MEETING AND PUBLICATION OF ANNUAL REPORT
Shareholders are advised that:
- the Annual General Meeting of the company ("the AGM") will be held at 12:00 on Friday, 15 July
2016 at The Wanderers Club, 21 North Road, Illovo, Johannesburg;
- the annual report, incorporating a notice convening the AGM, is available on the website of the
company at www.spanjaard.biz and will be distributed to shareholders on Tuesday, 31 May 2016.
Ms L Passmore
Company Secretary
31 May 2016
Directors: RJW Spanjaard (Executive Chairman), GF Cort, Mrs S Hari*, BL Montgomery*, CKT Palmer,
Prof DP van der Nest*, HJ van Heerden (Financial Director) resigned 31 July 2015, K Welgemoed
CA(SA) appointed 11 September 2015, I Saunders CA(SA) appointed 27 May 2016 *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
Date: 31/05/2016 05:35:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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