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Short Form Announcement - Unaudited Consolidated Interim Results for the 6 Months Ended 29 February 2020
PREMIER FISHING AND BRANDS LIMITED
(Incorporated in the Republic of South Africa)
Registration number 1998/018598/06
Share code: PFB and ISIN: ZAE000247516
(“PFB” or “the Company” or “the Group” or "Premier”)
SHORT FORM ANNOUNCEMENT
SUMMARISED UNAUDITED CONDENSED CONSOLIDATED INTERIM RESULTS FOR THE 6 MONTHS ENDED 29 FEBRUARY 2020
Shareholders are hereby advised that Premier Fishing and Brands Limited’s (“Premier”) summarised unaudited condensed
consolidated interim results for the 6 months ended 29 February 2020 are available on Premier’s website and can be
viewed at https://senspdf.jse.co.za/documents/2020/jse/isse/pfbe/SENS LF.PDF
The salient features compared to the corresponding period in the prior year are as follows:
- Revenue decreased to R215 million from R287 million
- Gross profit decreased to R80 million from R137 million
- Profit after tax decreased to R20 million from R55 million
- Earnings before interest, taxation, depreciation and amortization (EBITDA) decreased to R28 million from R69
million.
- Abalone farm production increased from 120 tons to 190 tons
- Current asset ratio of 4:1
The Group delivered a satisfactory performance for the period, given the effects of the Corona Virus (COVID-19) have
had on the fishing industry:
- While there is still a high demand for the Groups’ products globally, the Corona Virus (COVID-19) has
had an adverse effect on its financial performance. The Group is regarded as an essential business
service and is still able to carry on operations with catching and processing most of its products.
However, the Group is unable to export freely to its global markets in the Far East, Europe and the USA
during the COVID-19 period. Global selling prices are under pressure which has caused a decline in
revenue and in turn profitability.
Furthermore, the Group experienced other exogenous factors outside its control, which included:
-The decrease of 44% in the total allowable catch “TAC” of the West Coast Rock Lobster that was experienced in
the prior year has remained constant.
-Lower industry wide catch rates in the squid division as compared to the previous fishing season; and
-The seven-month long protests and socio-political unrest in the Asian market prior to COVID-19, more
specifically in Hong Kong, putting pressure on selling prices of abalone and hence affecting operating margins.
As a result basic earnings per share (“EPS”) decreased to 5.43 cents per share for the six months ended 29 February
2020 compared to 13.44 cents for the six months ended 28 February 2019. Headline earnings per share (“HEPS”) decreased
to 4.94 cents per share for the six months ended 29 February 2020 from 13.49 cents for the six months ended 28
February 2019.
Net asset value per share (NAV) for the six months ended 29 February 2020 is 307.11 cents per share compared to
318.15 cents per share for the six months ended 28 February 2019.
DIVIDENDS
The Group’s policy is to declare 60-80% of the earnings per share as a dividend to shareholders. The impact of
Covid-19 is being felt in most of the markets that the Group operates in despite the Group being deemed an essential
business service. There is no certainty as to when the pandemic will be brought under control and how long it will
take for our markets to return to normal levels. As a consequence of this uncertainty, the Board of Directors
believes that preservation of cash is paramount to ensure the sustainability of the Group in this current environment,
and has as such, made the decision not to declare a dividend for this interim period for the 6 months ending 29
February 2020. Dividends for the six months ending 28 February 2019 amounted to R31.2 million which equated to 12
cents per share.
GOING CONCERN
Following the recent outbreak of COVID-19, certain financial pressures will be placed on certain divisions within
the Group. A number of interventions have been put in place to mitigate these financial pressures and as such, the
Board of Directors believe that the Group still has adequate financial resources to continue in operation for the
foreseeable future and accordingly these interim financial statements for the six months ended 29 February 2020 have
been prepared on a going concern basis.
The Board of Directors have satisfied themselves that the Group is in a sound financial position and that it has
access to sufficient borrowing facilities to meet its foreseeable cash requirements. The directors are not aware of
any new material changes, except for the COVID-19 pandemic that may economically impact the Group.
STATEMENT OF COMPLIANCE AND BASIS OF PREPARATION
This short-form announcement contains only a summary of the information in the full announcement and does not
contain the full and complete details and is the responsibility of the directors.
Please refer to the full announcement for additional information. The full announcement is also available for
viewing on Premier’s website at www.premierfishing.co.za. In addition, electronic copies of the full announcement
may be requested and obtained, at no charge during office hours, or from the sponsor at sponsor@vunanicapital.co.za.
Any investment decisions by investors and/or shareholders should be based on consideration of the full announcement
Made on Premier’s website.
APPRECIATION
We wish to thank our employees, Group executives, management, our Board of Directors, as well as our strategic
partners, stakeholders and business partners for their loyalty and dedication in contributing to the success of
the Group during this trying period.
DIRECTORATE AND STATUTORY INFORMATION
Directors
#*Aziza Amod (Independent non-executive chairperson; *Rushaan Isaacs (Chief executive officer); *B Robertson (Chief
financial Officer #*Rosemary Phindile Mosia; #*Clifford Leonard van der Venter; #* Salim Young; #*Advocate Ngoako
Ramatlhodi, #*Sebenzile Patrick Mngconkola; #*Ismet Amod
*Executive directors
#*Non-executive directors
12 May 2020
Company Secretary: Cornell Kannemeyer
Business address: No.3 South Arm Road, Victoria Basin, Victoria and Alfred Waterfront, Cape Town, 8001
Email: cornellk@premfish.co.za
Transfer secretaries: Link Market Services South Africa (Pty) Ltd, Rennie House, 13th Floor, 19 Ameshoff Street,
Braamfontein, 2001
Auditors: THAWT Inc and Crowe JHB (3 Sandown Valley Crescent, Sandown 3196, PO Box 652550, Benmore
2010, South Africa, Docex 12, Nelson Mandela Square)
Sponsor: Vunani Capital
Date: 12-05-2020 05:00:00
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