Wrap Text
Unaudited group interim results
SANTOVA
INNOVATIVE SOLUTIONS. ENDLESS POSSIBILITIES
UNAUDITED GROUP INTERIM RESULTS
FOR THE SIX MONTHS ENDED 31 AUGUST 2016
HIGHLIGHTS
August August Movement
2016 2015 %
Gross billings (R'000) 2,000,612 1,686,696 18.6
Revenue (R'000) 159,772 120,910 32.1
Profit before tax (R'000) 40,489 30,448 33.0
Revenue/billings margin (%) 8.0 7.2 0.8
Operating margin (%) 28.4 26.0 2.4
Basic earnings per share (cents) 18.43 16.46 12.0
Normalised headline
earnings per share (cents) 18.4 15.63 17.7
Total assets (R'000) 930,287 728,787 27.6
Capital and reserves (R'000) 367,726 265,134 38.7
Cash generated from
operations (R'000) 36,255 31,367 15.6
Cash and cash
equivalents (R'000) 100,664 61,699 63.2
Debt to equity ratio (%) 49.0 74.0 (25.0)
Net asset value per
share (cents) 233.24 194.74 19.8
Tangible net asset
value per share (cents) 105.85 95.79 10.5
Restated in terms of a voluntary change in presentation and
classification applied during the 2016 financial year - refer to
note 2.
COMMENTARY
OVERVIEW
The Board is pleased to announce that in the six months to 31
August 2016, the Santova Group has achieved a 33.0% increase in
profit before tax to R40.5 million (2015: R30.4 million). This, in
turn, has translated into a 17.7% increase in normalised headline
earnings per share for the period to 18.40 cents (2015: 15.63
cents).
This strong performance over the period should be considered in
the context of the international logistics market, which
experienced weaker trade volumes due to falling consumer demand
and slowing GDP growth in certain major economies, in particular
China. When combined with the excess capacity of the shipping
lines, the result has been depressed freight rates and pressure on
margins internationally. In South Africa, the state of the economy
continues to have a significant impact on the logistics sector,
where subdued growth, market and political uncertainty and higher
unemployment rates have had an adverse effect on consumer
confidence, negatively impacting demand for products and trade
across most industries.
The resilience and continued growth during the period has been
achieved through a number of key factors:
- The inclusion of a full 6 months’ trading results in the
current period from Tradeway, the Group’s most recent
acquisition in the United Kingdom, which was concluded on
1 December 2015;
- The continued benefits of the Group’s strategic offshore
diversification, which was characterised by strong performances
from certain key offshore subsidiaries - principally the
Netherlands, Australia and Hong Kong;
- An increase in billings and the revenue margin in the South
African logistics operation, which resulted in encouraging
growth in profit for the year, despite the difficult local
economic conditions; and
- Strong foreign currency gains achieved through the internal
hedging of foreign exchange exposures, as the Group sought to
benefit from the significant strengthening in the South African
Rand, following ‘Brexit’ in the United Kingdom.
OPERATIONAL PERFORMANCE
South African Logistics Operations
The South African logistics operation remains the largest
contributor to Group profits, contributing 33.5% or R9.9 million
of Group profit for the period. The operation benefited during the
period from the weakening of the average South African Rand to US
Dollar exchange rate compared to the previous reporting period,
offset by the reduction in trade volumes. After ‘‘setoff’’, the
net result was a positive 4.7% increase in billings, which
translated into a 7.0% growth in revenue as a result of slightly
improved margins during the period, to 5.0% (2015: 4.9%).
Foreign Logistics Operations
The Group continues to benefit significantly from the contribution
of key offshore operations, as they deliver both organic growth in
their regions and currency gains upon translation into the Group’s
results. In particular, the Netherlands increased profits for the
period by 31%, Australia by 23% and Hong Kong by 625%, the latter
making a significant recovery from the loss of a major client in
the prior period.
Following its acquisition in December 2015, Tradeway has been
included for a full 6 months in the current period, which saw it
performing to expectations and contributing R6.7 million to Group
profit. Management is in the final stages of fully integrating the
operation into the Group and it is expected to continue to have a
meaningful contribution to the Group going forward.
The trading conditions in the United Kingdom proved challenging
for W.M Shipping, which recorded a decline in revenue and profit
for the period under review. This was primarily as a result of
economic factors within the territories to which the entity
exports and the depressed international freight rates, which
impacted on margins.
Other than general market uncertainty within the UK region and the
significant weakening of the Pound, the Group has not seen any
material direct financial impact from ‘Brexit’ on these
operations. Santova’s operations in the UK act principally as
facilitators of exports out of the UK and thus the weaker Pound
could possibly have the benefit of stimulating volumes in the
medium to long term.
Germany, Ghana and Mauritius remain regions into which the Group
is investing and developing for the future, with total costs of
R1.3 million (2015: R0.3 million) having been invested in the
current period. Germany, in particular, is a region that the Group
expects to be a meaningful contributor in the future and a
significant amount of time and resources have been dedicated to
this region during the current period, with the expectation that
the region will contribute positively to Group profits in the
coming financial year.
Financial Services
The Group’s short-term insurance business, based in South Africa,
continues to play a strong supportive role in contributing to
Group profitability and cash flow generation, showing a 16%
increase in profit for the period to R2.0 million (2015: R1.8
million).
Group/Head Office
At a Group reporting level, a number of major variances in the
Statement of Profit or Loss and Other Comprehensive Income need to
be highlighted:
- As expected, overall finance costs increased significantly to
R5.0 million (2015: 1.1 million), following the take on of a
R60 million medium-term amortising loan (in the prior financial
year) to fund the acquisition of Tradeway;
- Other income increased 131.7% to R10.8 million (2015: R4.7
million), due to significant foreign currency gains achieved as
a result of management’s decision to limit risk and to hedge
certain British Pound denominated foreign currency exposures,
following the significant strengthening of the South African
Rand; and
- In other comprehensive income, exchange differences arising on
translation of the foreign operations showed a loss of R40.9
million (2015: a profit of R18.0 million) following the
significant strengthening in the closing South African Rand to
British Pound exchange rate, which saw it reducing by R3.18 from
the rate as at 29 February 2016.
FINANCIAL POSITION
The overall financial position and structure of the Group balance
sheet remains sound and consistent with the current period
results, and with those of the prior periods:
- The Group’s core asset, being its trade receivables, increased
15.0% versus the closing balance for the prior comparative
period. This is consistent with the 18.6% increase in billings,
offset by a pleasing reduction in debtors’ days from 50.8 days
as at 31 August 2015 to 49.3 days, which is a key indicator of
the credit strength of the book;
- The Group’s second largest asset, being the goodwill related to
the acquisition of its subsidiaries, has increased 49.5% since
the prior period, as a result of the acquisition of Tradeway in
December 2015. However, since 29 February 2016, there has been a
10.3% reduction due to the translation of principally the
British Pound denominated goodwill attributable to W.M. Shipping
and Tradeway, which has been impacted by the R3.18 strengthening
in the South African Rand to British Pound closing exchange
rate;
- Likewise, total capital and reserves are 38.7% up on the prior
period due to the capital raising undertaken in the prior
financial year to fund the acquisition of Tradeway. However, the
current period has seen a reduction of 4.8% in capital and
reserves since February 2016, due to the currency translation
losses detailed above; and
- Despite the slight reduction in capital and reserves, the
Group’s debt to equity ratio has strengthened further since its
historic low of 55.6% as at 29 February 2016, to 48.7% as at
31 August 2016. This is due to further repayments of the Group’s
two medium-term amortising loans, together with the ongoing
generation of profitability requiring lower utilisation of the
Group’s invoice discounting facility to fund its trade
receivables within the South African region.
CASH FLOW AND FUNDING
The current reporting period saw a continuing trend of positive
cash generation from operations, with cash generated from
operating activities increasing 15.6% to R36.3 million (2015:
R31.4 million).
Cash on hand decreased from R123.7 million as at February 2016 to
R100.7 million as at the end of the current reporting period.
However, this was entirely expected, as the Group made a ‘top-up’
purchase price payment in March 2016 of R12.4 million to the
sellers of Tradeway and commenced repayment of the new R60 million
medium-term loan facility.
OUTLOOK
The World Trade Organization, in its most recent September 2016
market update, states that “certain trade-related indicators have
improved, including export orders and container port throughput,
but overall momentum in trade remains weak” and concludes that the
expected rate of growth in world merchandise trade volumes and
real GDP for 2016 would result in “the slowest pace of trade and
output growth since the financial crisis”.
Within the context of this environment internationally, more
importantly the socio-eco-political uncertainties facing South
Africa, it is difficult to anticipate or predict what the
remaining six-month period will deliver. However, the Board is
confident that the Group’s international diversification and its
differentiated logistics strategy, underpinned by the use of its
technology, will hold it in good stead going forward.
For and on behalf of the Board,
ESC Garner GH Gerber
Chairman Chief Executive Officer
1 November 2016
CONDENSED STATEMENT OF FINANCIAL POSITION
Unaudited Unaudited Audited
31 August 31 August 29 February
Notes 2016 2015 2016
R’000 R’000 R’000
ASSETS
Non-current assets 236,767 153,675 262,221
Plant and equipment 21,748 8,424 25,086
Intangible assets 5 200,850 134,715 222,881
Financial assets 6 4,903 3,742 4,536
Deferred taxation 9,266 6,794 9,718
Current assets 693,520 575,112 760,944
Trade receivables 535,783 465,721 590,133
Other receivables 55,454 46,313 46,743
Current tax receivable 1,317 907 385
Amounts owing from related
parties - 472 -
Financial assets 6 302 - 26
Cash and cash equivalents 100,664 61,699 123,657
Total assets 930,287 728,787 1,023,165
EQUITY AND LIABILITIES
Capital and reserves 7 367,726 265,134 386,415
Non-current liabilities 65,759 16,074 76,329
Interest-bearing borrowings 8 47,130 14,374 57,043
Long-term provision 1,500 1,700 1,500
Financial liabilities 6 15,832 - 17,786
Deferred taxation 1,297 - -
Current liabilities 496,802 447,579 560,421
Trade and other payables 224,123 184,853 216,154
Current tax payable 8,659 4,847 8,000
Current portion of interest-
bearing borrowings 8 19,513 8,475 18,620
Amounts owing to related
parties 275 251 302
Financial liabilities 6 16,452 709 31,348
Short-term borrowings and
overdraft 213,166 234,809 262,918
Short-term provisions 14,614 13,635 23,079
Total equity and liabilities 930,287 728,787 1,023,165
CONDENSED STATEMENT OF PROFIT AND LOSS AND OTHER COMPREHENSIVE
INCOME
Unaudited Unaudited Audited
31 August 31 August 29 February
Notes 2016 2015* 2016
R’000 R’000 R’000
Gross billings 2,000,612 1,686,696 3,797,890
Revenue 3 159,772 120,910 278,655
Other income 10,755 4,658 11,196
Depreciation and
amortisation (2,129) (1,931) (4,043)
Administrative expenses (123,056) (92,182) (215,022)
Operating profit 45,342 31,455 70,786
Interest received 124 89 205
Finance costs (4,977) (1,096) (4,255)
Profit before taxation 40,489 30,448 66,736
Income tax expense (10,826) (7,452) (16,841)
Profit for the period
/ year 29,663 22,996 49,895
Attributable to:
Equity holders of
the parent 28,988 22,451 48,713
Non-controlling interests
in subsidiaries 675 545 1,182
Other comprehensive income
Exchange differences arising
from translation of foreign
operations (40,898) 17,951 42,796
Net actuarial gain on
remeasurement of post-
retirement medical aid
benefit liability - - 18
Total comprehensive
(loss)/income (11,235) 40,947 92,709
Attributable to:
Equity holders of the
parent (11,629) 40,168 90,330
Non-controlling interests
in subsidiaries 394 779 2,379
Basic earnings per
share 4 (cents) 18.43 16.46 34.5
Diluted basic
earnings per share 4 (cents) 17.96 16.05 33.68
Dividends per share (cents) N/A N/A 5.5
*Restated in terms of a voluntary change in presentation and
classification applied during the 2016 financial year - refer to
note 2.
CONDENSED STATEMENT OF CHANGES IN EQUITY
Unaudited Unaudited Audited
31 August 31 August 29 February
Notes 2016 2015 2016
R’000 R’000 R’000
Capital and reserves
Balance at beginning of
period/year 386,415 230,289 230,289
Total comprehensive
(loss)/income (11,235) 40,947 92,709
Treasury shares acquired - (998) (998)
Share-based equity reserve 1,175 696 1,325
General issue of shares - - 51,282
Vendor issue of shares to
sellers of Tradeway
(Shipping) Ltd - - 17,714
Shares issued in terms of
exercise of share options 26 - -
Costs to issue securities (1) - (112)
Dividends paid (8,654) (5,800) (5,794)
Balance at end of
period/year 367,726 265,134 386,415
Comprising:
Stated capital 7 214,126 145,192 214,076
Equity compensation
reserve 4,176 2,399 3,028
Treasury shares (998) ( 998) (998)
Foreign currency
translation reserve 21,428 38,163 62,044
Accumulated profit 122,362 75,741 102,027
Attributable to equity
holders of the parent 361,094 260,497 380,177
Non-controlling interests 6,632 4,637 6,238
Capital and reserves 367,726 265,134 386,415
*Restated in terms of a voluntary change in presentation and
classification applied during the 2016 financial year - refer to
note 2.
CONDENSED STATEMENT OF CASH FLOWS
Unaudited Unaudited Audited
31 August 31 August 29 February
2016 2015* 2016
R’000 R’000 R’000
Cash generated from operations 36,255 31,367 48,226
Interest received 124 88 205
Finance costs (3,913) (1,084) (3,628)
Taxation paid (9,349) (5,750) (14,389)
Net cash flows from operating
activities 23,117 24,621 30,414
Cash outflows from the
acquisition of subsidiaries (12,410) (1,100) (59,275)
Cash utilised in other
investing activities (1,788) (3,593) ( 5,951)
Net cash flows from investing
activities (14,198) (4,693) (65,226)
Borrowings (repaid) / raised (9,785) (4,039) 48,775
Issue of shares for cash 24 - 51,170
Dividends paid (8,654) (5,800) (5,794)
Cash utilised in other
financing activities (27) (963) (912)
Net cash flows from financing
activities (18,442) (10,802) 93,239
Net increase/(decrease) in
cash and cash equivalents (9,523) 9,126 58,427
Difference arising on
translation (15,509) 7,684 19,576
Cash and cash equivalents at
beginning of period/year 123,657 44,889 44,889
Cash and cash equivalents at
end of period/year 98,625 61,699 122,892
Cash and cash equivalents
is made up as follows:
Cash and cash equivalents
on hand 100,664 62,239 123,657
Less: Bank overdrafts (2,039) (540) (765)
Cash and cash equivalents at
end of period/year 98,625 61,699 122,892
*Restated in terms of a voluntary change in presentation and
classification applied during the 2016 financial year - refer to
note 2.
CONDENSED SEGMENTAL ANALYSIS
Logistics Financial Head Consoli-
Services Services Office dated
BUSINESS SEGMENTS R’000 R’000 R’000 R’000
31 August 2016
Revenue 154,608 5,651 (487) 159,772
Operating profit 37,585 2,207 5,550 45,342
Profit for the period 27,154 2,024 485 29,663
Total assets 787,504 12,318 130,465 930,287
Total liabilities 522,586 1,399 38,576 562,561
Depreciation and
amortisation 1,390 37 702 2,129
Capital expenditure 638 32 1,205 1,875
31 August 2015 *
Revenue 116,080 4,941 (111) 120,910
Operating profit 28,456 1,979 1,020 31,455
Profit for the period 20,859 1,756 381 22,996
Total assets 648,429 8,951 71,407 728,787
Total liabilities 473,283 1,211 (10,841) 463,653
Depreciation and
amortisation 1,204 21 706 1,931
Capital expenditure 3,212 - 1,600 4,812
LOGISTICS SERVICES
Europe
and
Asia United
Africa Pacific Kingdom Total
GEOGRAPHICAL SEGMENT R’000 R’000 R’000 R’000
31 August 2016
Revenue 65,242 15,581 73,785 154,608
Operating profit 13,989 5,067 18,529 37,585
Profit for the period 9,097 3,819 14,238 27,154
Total assets 4 89,390 58,252 239,862 787,504
Total liabilities 371,448 18,062 133,076 522,586
Depreciation and
amortisation 919 96 375 1,390
Capital expenditure 429 51 158 638
31 August 2015*
Revenue 60,633 11,408 44,039 116,080
Operating profit 14,237 3,358 10,861 28,456
Profit for the period 9,866 2,329 8,664 20,859
Total assets 481,028 44,209 123,192 648,429
Total liabilities 379,987 14,479 78,817 473,283
Depreciation and
amortisation 729 148 327 1,204
Capital expenditure 2,933 61 218 3,212
*Restated in terms of a voluntary change in presentation and
classification applied during the 2016 financial year - refer to
note 2.
SUPPLEMENTARY INFORMATION
1. BASIS OF PREPARATION
The unaudited condensed consolidated interim financial statements
for the six months ended 31 August 2016 have been prepared and
presented 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 Reporting Pronouncements as issued by the Financial
Reporting Standards Council, the listings requirements of the JSE
Limited, the information as required by IAS 34: Interim Financial
Reporting, and the requirements of the South African Companies Act
71 of 2008.
The accounting policies applied in preparation of these interim
financial statements are consistent with those applied in the
annual financial statements for the year ended 29 February 2016.
This report was prepared under the supervision of the Group
Financial Director, DC Edley, CA(SA) and has not been reviewed or
audited by the Group’s external auditors.
2. VOLUNTARY CHANGE IN PRESENTATION AND CLASSIFICATION
A voluntary change in accounting presentation and classification,
in terms of IAS 1 Presentation of Financial Statements, had been
applied during the most recent financial year, resulting in the
restatement and reclassification of certain comparatives for the
year ended 29 February 2016. As the change had been applied in the
latter half of the year, the comparatives for this interim period,
notably the previous interim period ended 31 August 2015, are
required to be restated.
Full details of the nature and basis for the restatement, which
dealt with the reclassification of the net interest and fee income
from client financing activities to revenue, can be found in Note
15, Revenue, to the Annual Financial Statements for the year ended
29 February 2016 and in Note 3 of the Supplementary Information
section in the 2016 Annual Integrated Report.
The impact of this change in presentation and classification on
the previous interim financial period is as follows:
31 August 2015
R’000
Impact of the change on:
Statement of Profit or Loss and other Comprehensive Income
Revenue (4,890)
Other income (707)
Administrative expenses 3,265
Operating profit (2,332)
Interest received (4,998)
Finance costs 7,330
Profit before taxation -
Statement of Cash Flows
Cash generated from operations (2,332)
Interest received (4,998)
Finance costs 7,330
Net cash flows from operating activities -
3. REVENUE
Unaudited Unaudited Audited
31 August 31 August 29 February
2016 2015 2016
R’000 R’000 R’000
Gross Billings 2,000,612 1,686,696 3,797,890
Less: Recoverable
disbursements (1,840,840) (1,565,786) (3,519,235)
Revenue 159,772 120,910 278,655
Comprising revenue from:
Logistic services 148,110 110,498 256,690
Net interest and fee
income from client
financing activities 7,528 5,582 12,488
Insurance commission and
management fees 4,126 4,533 8,973
Other revenue 8 297 504
4. EARNINGS PER SHARE
Unaudited Unaudited Audited
31 August 31 August 29 February
2016 2015* 2016
R’000 R’000 R’000
Reconciliation between basic,
headline and normalised
headline earnings
Profit attributable to equity
holders of the parent 28,988 22,451 48,713
Adjusted for:
Net (profit)/loss on disposals
of plant and equipment (56) 15 255
Taxation effects 10 (8) (84)
Minority Interest - - (51)
Headline earnings 28,942 22,458 48,833
Adjusted for:
Effect of Fair Value Gain on
Remeasurement of Financial
Liability - (810) (1,024)
Effect of Lease Termination
Agreement - (467) (467)
Non-recurring Transaction Costs - - 929
Taxation effects - 131 131
Normalised headline earnings 28,942 21,312 48,402
Basic earnings per share (cents) 18.43 16.46 34.5
Headline earnings per share
(cents) 18.4 16.47 34.58
Normalised headline earnings
per share 18.4 15.63 34.29
Weighted average number of
shares (000s) 157,317 136,383 141,211
Diluted weighted average
number of shares (000s) 161,390 139,864 144,648
The difference between earnings per share and diluted earnings per
share is due to the impact of share options that are yet to vest
under the Group’s share option scheme.
5. INTANGIBLE ASSETS
Unaudited Unaudited Audited
31 August 31 August 29 February
2016 2015* 2016
R’000 R’000 R’000
Goodwill Movement:
Carrying value at beginning
of year 217,472 118,944 118,944
Acquisition of Tradeway
(Shipping) Limited - - 75,854
Acquisition of AEMC Trading
Agency - 1,498 1,498
Foreign exchange (loss)/gain
on translation (22,401) 10,032 21,176
Carrying value at end of year 195,071 130,474 217,472
Carrying value of computer
software and indefinite
useful life intangible assets
Total intangible assets 200,850 134,715 222,881
6. FAIR VALUE DISCLOSURE FOR FINANCIAL INSTRUMENTS
Unaudited Unaudited Audited
31 August 31 August 29 February
Notes 2016 2015 2016
R’000 R’000 R’000
Financial assets in the
statement of financial
position measured at
fair value:
Future profit share on
rental agreement 1 1,228 1,228 1,228
Guardrisk cell captive 2 3,675 2,441 3,308
Forward Exchange Contracts 302 73 26
5,205 3,742 4,562
Financial liabilities
in the statement of
financial position
measured at fair value:
Finance lease - 69 -
Contingent purchase
consideration on
acquisitions 3 32,284 640 49,134
32,284 709 49,134
1. This amount represents the fair value of the profit share
accruing to Santova Logistics (SA) in in terms of a profit
sharing agreement with the landlord of the Durban premises. The
agreement gives Santova Logistics (SA) a specified portion of
the actual or deemed profit made should the building be sold
or vacated. The primary inputs used to determine the fair value
of the profit share are a current market related rental of
R93 per m2 for an equivalent such property applied to a market
related capitalisation rate of 12%.
2. This amount represents the fair value of the investment by
Santova Logistics (SA) in the Guardrisk cell captive,
recognised as a financial asset, with changes in fair value
being recognised in profit or loss for the year. The fair value
of the cell captive is determined by the net asset value of the
cell as at the reporting date.
3. This represents the present value of the remaining contingent
purchase obligations arising from acquisitions during the
previous financial period. The fair value of the liabilities
has been calculated as the net present value of the warranty
payments, which management reasonably expects to be achieved,
as set out in the agreements of sale, discounted at the
weighted average cost of capital for the acquired entities.
The financial liability can be reconciled as follows:
Unaudited Unaudited Audited
31 August 31 August 29 February
2016 2015 2016
R’000 R’000 R’000
Financial liability at
beginning of year 49,134 990 990
Financial liabilities
raised during the year - 432 47,752
Payments made during the year (12,410) - -
Interest on present value
calculation 1,105 1 627
Foreign exchange (gain)/loss
on translation (5,545) 27 789
Fair value gain on
remeasurement - (810) (1,024)
Financial liability at end
of year 32,284 640 49,134
The contingent purchase obligations relate to the following
acquisitions that were completed during the previous financial
year:
Acquiring company Target company Discount rate used
Santova Administration Tradeway (Shipping) 6.6%
Services (Pty) Ltd Limited
Santova Logistics AEMC Trading Agency 8.75%
(Pty) Ltd (SA)
Management has assessed the sensitivity of the level 3 fair value
measurement to changes in unobservable inputs and does not believe
that such reasonably expected changes would materially affect the
fair value.
Management has assessed the degree of classification of the
liabilities within level 3 and is satisfied that the
classification above is appropriate, due to the fact that these
liabilities are measured using the same methods and thus do not
have varying degrees of uncertainty or subjectivity.
There were no other material adjustments to fair values of
financial instruments, nor transfers between the fair value
hierarchy levels during the year.
7. STATED CAPITAL
Unaudited Unaudited Audited
31 August 31 August 29 February
2016 2015* 2016
R’000 R’000 R’000
Reconciliation of the value
of ordinary shares in issue
Balance at beginning of year 214,076 145,192 145,192
General issue of shares for
cash - - 51,282
Vendor issue of shares to
sellers of Tradeway
(Shipping) Limited - - 17,714
Shares issued in terms of
exercise of share options 51 - -
Costs to issue securities (1) - (112)
Treasury shares purchased
by subsidiaries - - -
Balance at end of year 214,126 145,192 214,076
Reconciliation of the number
of ordinary shares in issue
Balance at beginning of year 157,287 136,459 136,459
General issue of shares
for cash - - 16,245
Vendor issue of shares to
sellers of Tradeway
(Shipping) Limited - - 4,893
Shares issued in terms of
exercise of share options 60 - -
Treasury shares purchased by
Subsidiaries - (310) (310)
Balance at end of year 157,347 136,149 157,287
8. INTEREST BEARING BORROWINGS
Unaudited Unaudited Audited
Re- Instal- 31 August 31 August 29 February
pay ment 2016 2015* 2016
able Rate R’000 R’000 R’000 R’000
Instalmen
sale and
other
agreements 795 1,107 996
Medium-term
Loan Prime
(R39 less
million) Monthly 0.5% 815 13,664 21,742 17,784
Medium-
term loan Prime
(R60 less
million) Quarterly 0.25% 3,874 52,184 - 56,883
66,643 22,849 75,663
Debt to Equity Ratio 49% 74% 56%
During the previous financial year, a R60 million medium-term loan
was taken by the holding company, Santova Limited, in order to
fund a portion of the purchase price payable for the acquisition
of Tradeway (Shipping). Both medium-term loans are repayable on an
amortising basis over five years and are secured by cross company
sureties supplied by certain subsidiaries.
As a condition of granting the medium-term loan facilities, the
Group banking facilities contain certain covenants. These
covenants are monitored on an ongoing basis by management and
reviewed and confirmed with the Group’s bankers.
The first medium-term loan (R39 million) matures on 1 February
2018 and the second (R60 million) matures on 1 December 2020.
9. EVENTS AFTER THE REPORTING PERIOD
There are no events that have taken place after the reporting
period for which non-disclosure would affect the ability of the
users to make proper evaluations and decisions.
CORPORATE INFORMATION
Registration number
1998/018118/06
Share code SNV
ISIN ZAE000159711
Independent Non-Executive Directors
ESC Garner (Chairman)
AD Dixon
WA Lombard
EM Ngubo
Executive Directors
GH Gerber (Chief Executive Officer)
DC Edley (Group Financial Director)
AL van Zyl
Company Secretary
JA Lupton, FCIS
JSE Sponsor
River Group
Auditors
Deloitte & Touche
Transfer Secretaries
Computershare Investor Services (Pty) Ltd
Investor Relations
Contact Persons:
GH Gerber (Chief Executive Officer)
DC Edley (Group Financial Director)
Email Address: investor@santova.com
Contact number: +27 31 374 7000
Physical address
Santova House,
88 Mahatma Gandhi Road,
Durban,
4001
Postal address
PO Box 6148,
Durban,
4000
Contact number
+27 31 374 7000
Date: 01/11/2016 09:04:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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