Condensed Consolidated Reviewed FinancialStatement
March 02 2009 - 2:00AM
UK Regulatory
TIDMPTMN
RNS Number : 0827O
Petmin Limited
02 March 2009
Petmin Limited
(Incorporated in the Republic of South Africa)
(Registration number 1972/001062/06)
JSE code: PET AIM code: PTMN
ISIN: ZAE000076014
("Petmin" or "the Company" or "the Group")
Condensed Consolidated Reviewed Financial Statements for the
six months ended 31 December 2008 and resignation of director
"Developing projects into high-yielding, cash generative assets"
JSE- and AIM-listed mining and processing company Petmin Limited today (2 March
2009) announced that its operations generated R165 million in cash for the six
months ended 31 December 2008, an increase of 195% compared with R56 million
during the corresponding period in 2007.
Highlights
* Revenue increased 54% to R490 million (6 months to 31 December 2007 R319
million) reflecting a strong operating performance for the period
* Cash from operating activities increased 195% to R165 million (6 months to 31
December 2007: R56 million)
* Headline earnings per share ("HEPS") increased 81% to 11.82 cents from 6.52
cents
* SAMREC compliant report for SamQuarz indicates a life-of-mine in excess of 40
years
* SAMREC compliant report on additional resources at Somkhele expected shortly
* Disposal of Springlake for approximately R150 million on track
Commenting on the results, Bradley Doig, Chief Operating Officer, said:
"With low gearing, profitable and cash generative assets, the proceeds to be
received on the disposal of Springlake and undrawn banking facilities of R160
million, Petmin is in a strong position both to review undercapitalised assets
or opportunistic value enhancing propositions to increase shareholder wealth and
to weather the current financial crisis facing the world."
Commentary
(i) Operations
Revenue for the six months ended 31 December 2008 increased by R171 million or
54% to R490 million compared to the R319 million for the six months ended 31
December 2007. Gross profit was R115 million, an increase of R47 million or 69%
compared to the R68 million in 2007. The increased revenue and profitability was
as a result of strong performances from all the operations in the six months to
31 December 2008.
The anthracite division's profit before tax for the year ended 30 June 2008 was
reduced by impairment charges of R14.7 million. This includes R13.3 million
which was provided on the classification of the Springlake Group as an asset
held for sale, as the proceeds on the sale of Springlake are not adjusted for
profits generated by Springlake after 30 June 2008.
In accordance with accounting rules, the fair value of the investment in Veremo
Holdings Limited was reviewed and, after capitalisation of expenses of R15
million, R32 million was recognised as a share of profits of equity accounted
investee.
Cash of R165 million (2007: R56 million) was generated by the operations.
Capital expenditure of R170 million was incurred in the six months to 31
December 2008 (2007: R55 million: R106 million was spent on exploration drilling
and mine development programmes to expand operations (R79 million related to
"pre-stripping" the open pits at Somkhele; R18 million on the construction of
the de-stoning plant and workshops at Somkhele Colliery; R4 million was spent on
installation of power generators at SamQuarz and; R42 million on plant and
mining equipment and capital projects that are work-in-progress.
In the six months ended 31 December 2008, Petmin acquired 4 869 390 of its own
shares at an average price of 200 cents per share. Of these shares, 2 000 000
were transferred to the Springlake vendors to settle the contingent
consideration payable in terms of the warranty clauses in the Springlake
acquisition agreement.
The ratio of interest bearing debt to equity at 31 December 2008 was 7.13%
compared to 7.01% at 30 June 2008. An amount of R19 million was drawn on the
de-stoning plant finance facility at Somkhele. The Group has debt facilities of
approximately R160 million with its bankers that are currently not utilised.
Anthracite division
Somkhele anthracite mine, Springlake Colliery and Petmin Logistics
In the six months to 31 December 2008, the anthracite division increased sales
by 85 795 tonnes or 14% compared to the six months ended 31 December 2007 and
increased production by 4%.
Profits from the anthracite division increased by 70% compared to the six months
ended 31 December 2007, despite the inclusion of impairment charges of R14.7
million mentioned above. The increased profits emanated from improved export
sales at Springlake and the ramp up of sales to the inland metallurgical market
at Somkhele in the six months to December 2008.
Mining at Somkhele is progressing well and the accelerated exploration programme
has outlined additional resources in close proximity to the current plant site.
Indications are that the drilling programme will yield additional resources in
this new area. A SAMREC compliant report to announce the additional mineral
resource has been commissioned and is expected shortly.
The Group acquired the remaining 30% interest in Petmin Logistics from the
minority shareholders. The Group now holds 100% of Petmin Logistics. Petmin
Logistics has contracted with the South African Port Authorities to provide a
dedicated export facility at Richards Bay for a minimum of 600 000 tonnes per
year for four years. Negotiations to renew the contract for an additional three
years are underway and various opportunities to increase the Group's export
capability in Richards Bay are being investigated.
The planned sale of Springlake Colliery is progressing well, and the Competition
Commission has approved the transaction. The final remaining condition precedent
is the Section 11 approval required in terms of the Mineral and Petroleum
Resources Development Act. In terms of the sale agreement, the consideration due
for Springlake was amended by the change in the net asset value of Springlake up
to 30 June 2008. Any profits or losses generated by the colliery subsequent to
30 June 2008 do not alter the consideration payable by the purchaser. Springlake
generated profits in excess of R20 million in the six months to 31 December 2008
and consequently the sale proceeds are now R13 million less than the carrying
value of Springlake in the Group accounts. Management has therefore accounted
for an impairment charge of R13 million on those assets. The Springlake assets
have been disclosed as an "asset held for sale" as at 31 December 2008.
At 31 December 2008, assets held for sale included trade and other receivables
of R40 million, inventory of R39 million, property plant and equipment of R102
million, and restricted investments of R12 million. At 31 December 2008
liabilities held for sale included trade payables of R33 million, taxation
payable of R5 million, deferred tax of R22 million, interest bearing loans of R6
million and environmental rehabilitation provisions of R17 million.
Silica division
SamQuarz silica mine
SamQuarz produced 815 235 (2007: 615 887) and sold 902 513 (2007: 630 089)
tonnes of silica and chert in the six months ended 31 December 2008.
Revenue increased by 47% to R101 million (2007: R69 million) due to improved
prices negotiated on key sales contracts and due to improved sales volumes of
chert in the construction sector.
Capital expenditure has been focused on increasing production capacity both in
the open-pit and the plant to ensure that customers' increased demand levels can
be reliably attained. The installation of an emergency generator was completed
in the six months to 31 December 2008.
The exploration programme culminated in the production of a SAMREC compliant
reserve and resource statement that confirmed proven and probable reserves of
60.64 million tonnes of quartzite and 11.48 million tonnes of chert, resulting
in a life-of-mine in excess of 40 years, as detailed in the company's Annual
Report for the year ended 30 June 2008 and distributed to shareholders on 22
December 2008.
(ii) Investment in the Veremo pig-iron project
As reported in the 30 June 2008 Annual Report, in terms of IFRS, the
valuation of a business combination may be reviewed within 12 months of the
acquisition date. In the six months ended 31 December 2008, management reviewed
the valuation of the project as more certainty has been provided by an
independent review of the resource statements and by a better understanding of
the metallurgical processes required to treat the ore. The result of the review
is that the fair value of the Group's investment in the project was increased by
R32 million after expenses of R14 million were capitalised to the cost of the
investment.
The required prospecting permit renewals were submitted in the period under
review and progress was made on the validation of all historical geological and
metallurgical data.
(iii) Prospects
The results of the Group to 31 December 2008 do not reflect the impact of the
current economic crisis and worldwide recession as the reduction in off-takes to
the metallurgical sector only commenced towards the end of the period under
review. The economic downturn has had a severe impact on the metallurgical
sector and we forecast that our sales to this sector will be affected at both
the Silica and Anthracite divisions.
Silica division
Management expects SamQuarz to maintain current production and slightly lower
sales volumes in the six months to 30 June 2009 as the demand for the crusher
run material (as a product that is being used in the building and maintenance of
roads) remains robust and the glass sector continues to produce at similar
levels. Sales to the metallurgical markets are not expected to recover until the
latter half of calendar 2009. The metallurgical sector is the least profitable
market that SamQuarz sells to, and as a result, the impact of reduced sales to
this sector on SamQuarz's profit is not expected to be material.
Capital expenditure is forecast to reduce in the six months to 30 June 2009 as
the work on the exploration programme has been completed and the bulk of the
expansion of the plant has been completed.
Anthracite division
Subsequent to the reporting date of 31 December 2008, the anthracite division
has experienced a reduction in demand for its products in the inland
metallurgical markets as the local ferrochrome industry has reduced its
production by approximately 90%. At the time of writing this report, the Company
has seen some demand return, albeit slowly.
This reduction in revenues from the inland market will be offset by the
increased revenues emanating from the commencement of sales with an average
selling price well in excess of the $62.50 per tonne received in the six months
to 31 December 2008. These expected sales are in terms of the three year export
contract for 1.05 million tonnes concluded in the period under review. In terms
of this contract, we expect to sell 145 000 tonnes at $118 per tonne in the six
months to 30 June 2009 and approximately 325 000 tonnes and 375 000 tonnes in
the years ending 30 June 2010 and 2011 respectively at similar prices. We have
hedged our sales in the six months to 30 June 2009 at an average Rand/Dollar
exchange rate of R9.55/$1.00.
The construction of the de-stoning plant at Somkhele is progressing well and it
is expected to be commissioned and fully operational in the six months ending 30
June 2009. Management plans to maintain the current production levels at
Somkhele, but will reduce the rate of development expenditure as the investment
in the past eighteen months has ensured that there is a sufficient pit-room to
support the current production profile for at least 12 months ahead. The current
exploration drilling programme has been completed and a SAMREC compliant reserve
and resource statement is being compiled. Planned capital expenditure to 30 June
2009 will be approximately R30 million and Somkhele expects to have a tax shield
from unredeemed capital allowances of approximately R240 million at 30 June
2009.
The Springlake Colliery disposal awaits ministerial approval and the sale
proceeds of approximately R150 million will boost the group's cash resources. We
expect the transaction to be concluded by 30 June 2009.
Veremo
In the ensuing period, management will focus on ensuring that:
- the renewal of the prospecting permits are secured;
- the geological validation programme is completed and;
- the magnetic separation flow sheet required for the production of pig iron is
finalised.
Management is in negotiations regarding the conversion of the loan of R21.5
million made to Veremo Holdings Limited into an increased equity stake in
Veremo.
By order of the Board
P J Nel J C du Preez
Chairman Chief Executive Officer
Johannesburg
26 February 2009
Reviewed Condensed Consolidated Income Statement
for the six months ended 31 December 2008
+--------------------------------------+-------+------------+------------+-----------+
| GROUP | | Reviewed | Reviewed | Audited |
+--------------------------------------+-------+------------+------------+-----------+
| | | Six months | Six months | Year |
+--------------------------------------+-------+------------+------------+-----------+
| | | ended | ended | ended |
+--------------------------------------+-------+------------+------------+-----------+
| | | 31 | 31 | 30 June |
| | | December | December | |
+--------------------------------------+-------+------------+------------+-----------+
| | | 2008 | 2007 | 2008 |
+--------------------------------------+-------+------------+------------+-----------+
| | Note | R'000 | R'000 | R'000 |
+--------------------------------------+-------+------------+------------+-----------+
| | | | | |
+--------------------------------------+-------+------------+------------+-----------+
| Revenue | | 490 359 | 318 637 | 672 997 |
+--------------------------------------+-------+------------+------------+-----------+
| Cost of sales | | (375 569) | (250 654) | (502 753) |
+--------------------------------------+-------+------------+------------+-----------+
| Gross Profit | | 114 790 | 67 983 | 170 244 |
+--------------------------------------+-------+------------+------------+-----------+
| Administration expenses | | (21 440) | (18 597) | (52 453) |
+--------------------------------------+-------+------------+------------+-----------+
| Impairment loss on assets classified | | | | |
+--------------------------------------+-------+------------+------------+-----------+
| as held for sale | | (13 392) | - | - |
+--------------------------------------+-------+------------+------------+-----------+
| Impairment loss on goodwill acquired | | (1 327) | - | - |
+--------------------------------------+-------+------------+------------+-----------+
| Results from operating activities | | 78 631 | 49 386 | 117 791 |
+--------------------------------------+-------+------------+------------+-----------+
| | | | | |
+--------------------------------------+-------+------------+------------+-----------+
| Net finance expense | | (3 773) | (1 573) | (3 773) |
+--------------------------------------+-------+------------+------------+-----------+
| - Finance income | | 5 460 | 1 560 | 7 676 |
+--------------------------------------+-------+------------+------------+-----------+
| - Finance expenses | | (9 233) | (3 133) | (11 449) |
+--------------------------------------+-------+------------+------------+-----------+
| Share of profit of equity accounted | | | | |
+--------------------------------------+-------+------------+------------+-----------+
| investee | (ii) | 32 635 | 61 706 | 303 133 |
+--------------------------------------+-------+------------+------------+-----------+
| | | | | |
+--------------------------------------+-------+------------+------------+-----------+
| Profit before income tax | | 107 493 | 109 519 | 417 150 |
+--------------------------------------+-------+------------+------------+-----------+
| Income tax expense | | (26 346) | (16 358) | (36 736) |
+--------------------------------------+-------+------------+------------+-----------+
| | | | | |
+--------------------------------------+-------+------------+------------+-----------+
| Profit for the period | | 81 147 | 93 161 | 380 414 |
+--------------------------------------+-------+------------+------------+-----------+
| | | | | |
+--------------------------------------+-------+------------+------------+-----------+
| Attributable to: | | | | |
+--------------------------------------+-------+------------+------------+-----------+
| - Equity holders of Petmin Limited | | 81 525 | 93 100 | 380 353 |
+--------------------------------------+-------+------------+------------+-----------+
| - Minority interest | | (378) | 61 | 61 |
+--------------------------------------+-------+------------+------------+-----------+
| Profit for the period | | 81 147 | 93 161 | 380 414 |
+--------------------------------------+-------+------------+------------+-----------+
| | | | | |
+--------------------------------------+-------+------------+------------+-----------+
| Basic earnings per ordinary share | | | | |
+--------------------------------------+-------+------------+------------+-----------+
| (cents) | 6 | 15.15 | 19.30 | 75.43 |
+--------------------------------------+-------+------------+------------+-----------+
| Diluted earnings per ordinary share | | | | |
+--------------------------------------+-------+------------+------------+-----------+
| (cents) | 6 | 14.72 | 18.89 | 74.15 |
+--------------------------------------+-------+------------+------------+-----------+
Reviewed Condensed Consolidated Cash Flow Statement
for the six months ended 31 December 2008
+------------------------------------+--------------+-------------+-----------+
| GROUP | Reviewed | Reviewed | Audited |
+------------------------------------+--------------+-------------+-----------+
| | Six months | Six months | Year |
+------------------------------------+--------------+-------------+-----------+
| | ended | ended | ended |
+------------------------------------+--------------+-------------+-----------+
| | 31 December | 31 December | 30 June |
+------------------------------------+--------------+-------------+-----------+
| | 2008 | 2007 | 2008 |
+------------------------------------+--------------+-------------+-----------+
| | R'000 | R'000 | R'000 |
+------------------------------------+--------------+-------------+-----------+
| | | | |
+------------------------------------+--------------+-------------+-----------+
| Net cash flow from operating | 165 059 | 56 316 | 157 153 |
| activities | | | |
+------------------------------------+--------------+-------------+-----------+
| | | | |
+------------------------------------+--------------+-------------+-----------+
| Cash flows from investing | | | |
| activities | | | |
+------------------------------------+--------------+-------------+-----------+
| Acquisition of subsidiary net of | | | |
| cash | | | |
+------------------------------------+--------------+-------------+-----------+
| acquired | - | - | 502 |
+------------------------------------+--------------+-------------+-----------+
| Increase in investment in | | | |
| rehabilitation | | | |
+------------------------------------+--------------+-------------+-----------+
| funds | (622) | (188) | (1 064) |
+------------------------------------+--------------+-------------+-----------+
| Investment in equity accounted | (15 352) | (20 346) | (11 064) |
| investee | | | |
+------------------------------------+--------------+-------------+-----------+
| Acquisition of property, plant | | | |
+------------------------------------+--------------+-------------+-----------+
| and equipment | (170 113) | (55 138) | (228 767) |
+------------------------------------+--------------+-------------+-----------+
| - to expand operations | (160 273) | (55 138) | (216 155) |
+------------------------------------+--------------+-------------+-----------+
| - to maintain operations | (9 840) | - | (12 612) |
+------------------------------------+--------------+-------------+-----------+
| Net cash flow from investing | (186 087) | (75 672) | (240 393) |
| activities | | | |
+------------------------------------+--------------+-------------+-----------+
| | | | |
+------------------------------------+--------------+-------------+-----------+
| Cash flows from financing | | | |
| activities | | | |
+------------------------------------+--------------+-------------+-----------+
| Proceeds from specific and general | | | |
| share | | | |
+------------------------------------+--------------+-------------+-----------+
| issues for cash during the period | 4 907 | 32 578 | 91 896 |
+------------------------------------+--------------+-------------+-----------+
| Treasury shares acquired | (5 748) | - | - |
+------------------------------------+--------------+-------------+-----------+
| Repayment of contingent | (3 991) | - | (132) |
| consideration | | | |
+------------------------------------+--------------+-------------+-----------+
| Repayment of borrowings | (6 342) | (6 259) | (11 509) |
+------------------------------------+--------------+-------------+-----------+
| Increase in borrowings | 18 781 | - | 31 345 |
+------------------------------------+--------------+-------------+-----------+
| Net cash flows from financing | 7 607 | 26 319 | 111 600 |
| activities | | | |
+------------------------------------+--------------+-------------+-----------+
| | | | |
+------------------------------------+--------------+-------------+-----------+
| Net (decrease)/increase in cash | | | |
+------------------------------------+--------------+-------------+-----------+
| and cash equivalents | (13 421) | 6 963 | 28 361 |
+------------------------------------+--------------+-------------+-----------+
| Cash and cash equivalents at | | | |
| beginning | | | |
+------------------------------------+--------------+-------------+-----------+
| of period | 88 711 | 60 350 | 60 350 |
+------------------------------------+--------------+-------------+-----------+
| Cash and cash equivalents at end | 75 290 | 67 313 | 88 711 |
| of period | | | |
+------------------------------------+--------------+-------------+-----------+
Reviewed Condensed Consolidated Balance Sheet
as at 31 December 2008
+------------------------------------+--------+--------------+------------+-----------+
| GROUP | | Reviewed | Reviewed | Audited |
+------------------------------------+--------+--------------+------------+-----------+
| | | Six months | Six months | Year |
+------------------------------------+--------+--------------+------------+-----------+
| | | ended | ended | ended |
+------------------------------------+--------+--------------+------------+-----------+
| | | 31 December | 31 | 30 June |
| | | | December | |
+------------------------------------+--------+--------------+------------+-----------+
| | | 2008 | 2007 | 2008 |
+------------------------------------+--------+--------------+------------+-----------+
| | Note | R'000 | R'000 | R'000 |
+------------------------------------+--------+--------------+------------+-----------+
| | | | | |
+------------------------------------+--------+--------------+------------+-----------+
| ASSETS | | | | |
+------------------------------------+--------+--------------+------------+-----------+
| Non-current assets | | 1 038 661 | 639 741 | 1 003 860 |
+------------------------------------+--------+--------------+------------+-----------+
| Property, plant and equipment | | 585 102 | 491 620 | 580 200 |
+------------------------------------+--------+--------------+------------+-----------+
| Intangible assets | | 8 184 | 5 963 | 15 034 |
+------------------------------------+--------+--------------+------------+-----------+
| Investment in equity accounted | | 423 875 | 131 796 | 375 888 |
| investee | | | | |
+------------------------------------+--------+--------------+------------+-----------+
| Investments | | - | 2 | 2 |
+------------------------------------+--------+--------------+------------+-----------+
| Restricted investments | | - | 10 360 | 11 236 |
+------------------------------------+--------+--------------+------------+-----------+
| Long term receivables | | 21 500 | - | 21 500 |
+------------------------------------+--------+--------------+------------+-----------+
| | | | | |
+------------------------------------+--------+--------------+------------+-----------+
| Current assets | | 409 774 | 227 981 | 338 175 |
+------------------------------------+--------+--------------+------------+-----------+
| Inventories | | 32 829 | 65 584 | 69 261 |
+------------------------------------+--------+--------------+------------+-----------+
| Trade and other receivables | | 105 831 | 95 084 | 179 410 |
+------------------------------------+--------+--------------+------------+-----------+
| Current tax assets | | 3 128 | - | 793 |
+------------------------------------+--------+--------------+------------+-----------+
| Cash and cash equivalents | | 75 290 | 67 313 | 88 711 |
+------------------------------------+--------+--------------+------------+-----------+
| Assets classified as held for sale | (i) | 192 696 | - | - |
+------------------------------------+--------+--------------+------------+-----------+
| Total assets | | 1 448 435 | 867 722 | 1 342 035 |
+------------------------------------+--------+--------------+------------+-----------+
| | | | | |
+------------------------------------+--------+--------------+------------+-----------+
| EQUITY AND LIABILITIES | | | | |
+------------------------------------+--------+--------------+------------+-----------+
| Ordinary share capital and | | 1 085 049 | 632 795 | 1 005 424 |
| reserves | | | | |
+------------------------------------+--------+--------------+------------+-----------+
| Share capital | | 135 236 | 126 991 | 133 704 |
+------------------------------------+--------+--------------+------------+-----------+
| Share premium | | 307 223 | 231 297 | 304 545 |
+------------------------------------+--------+--------------+------------+-----------+
| Share option reserve | | 23 741 | 21 998 | 27 494 |
+------------------------------------+--------+--------------+------------+-----------+
| Contingent consideration reserve | | - | 1 500 | 1 480 |
+------------------------------------+--------+--------------+------------+-----------+
| Hedging reserve | | (877) | - | - |
+------------------------------------+--------+--------------+------------+-----------+
| Retained earnings | | 619 726 | 251 009 | 538 201 |
+------------------------------------+--------+--------------+------------+-----------+
| Minority interest | | - | - | 2 434 |
+------------------------------------+--------+--------------+------------+-----------+
| Total equity | | 1 085 049 | 632 795 | 1 007 858 |
+------------------------------------+--------+--------------+------------+-----------+
| | | | | |
+------------------------------------+--------+--------------+------------+-----------+
| Non-current liabilities | | 164 336 | 131 557 | 178 021 |
+------------------------------------+--------+--------------+------------+-----------+
| Interest bearing loans and | | 66 394 | 31 566 | 55 067 |
| borrowings | | | | |
+------------------------------------+--------+--------------+------------+-----------+
| Deferred taxation | | 78 999 | 76 661 | 89 146 |
+------------------------------------+--------+--------------+------------+-----------+
| Environmental rehabilitation | | 18 943 | 23 330 | 33 808 |
| provision | | | | |
+------------------------------------+--------+--------------+------------+-----------+
| | | | | |
+------------------------------------+--------+--------------+------------+-----------+
| Current liabilities | | 199 050 | 103 370 | 156 156 |
+------------------------------------+--------+--------------+------------+-----------+
| Trade and other payables | | 104 375 | 90 517 | 132 292 |
+------------------------------------+--------+--------------+------------+-----------+
| Current portion of non-current | | 10 942 | 12 792 | 15 386 |
| liabilities | | | | |
+------------------------------------+--------+--------------+------------+-----------+
| Current tax liabilities | | 474 | 61 | 8 478 |
+------------------------------------+--------+--------------+------------+-----------+
| Liabilities classified as held for | (i) | 83 259 | - | - |
| sale | | | | |
+------------------------------------+--------+--------------+------------+-----------+
| Total equity and liabilities | | 1 448 435 | 867 722 | 1 342 035 |
+------------------------------------+--------+--------------+------------+-----------+
| | | | | |
+------------------------------------+--------+--------------+------------+-----------+
| Net asset value ("NAV") per share | | | | |
+------------------------------------+--------+--------------+------------+-----------+
| (cents) | 7 | 199.26 | 124.57 | 187.74 |
+------------------------------------+--------+--------------+------------+-----------+
| Fully diluted NAV per share | 7 | 184.36 | 113.63 | 170.46 |
| (cents) | | | | |
+------------------------------------+--------+--------------+------------+-----------+
Reviewed Condensed Consolidated Statement of Changes in Equity
for the six months ended 31 December 2008
+------------------------------+-----------+------------+-----------+---------------+----------+-----------+-------------+----------+------------+
| GROUP | Attributable to equity holders of the Company |
+------------------------------+-----------------------------------------------------------------------------------------------------------------+
| | | | | | | | | | |
| | | | | Contingent | | | | | |
+------------------------------+-----------+------------+-----------+---------------+----------+-----------+-------------+----------+------------+
| | Share | Share | Share | consideration | Hedging | Retained | | Minority | Total |
+------------------------------+-----------+------------+-----------+---------------+----------+-----------+-------------+----------+------------+
| | capital | premium | reserve | reserve | reserve | earnings | Total | interest | equity |
+------------------------------+-----------+------------+-----------+---------------+----------+-----------+-------------+----------+------------+
| | R'000 | R'000 | R'000 | R'000 | R'000 | R'000 | R'000 | R'000 | R'000 |
+------------------------------+-----------+------------+-----------+---------------+----------+-----------+-------------+----------+------------+
| Balance at 1 July 2007 | 119 972 | 155 995 | 15 736 | 1 500 | - | 157 848 | 451 051 | - | 451 051 |
+------------------------------+-----------+------------+-----------+---------------+----------+-----------+-------------+----------+------------+
| Shares issued during the | | | | | | | | | |
| year | | | | | | | | | |
+------------------------------+-----------+------------+-----------+---------------+----------+-----------+-------------+----------+------------+
| - To acquire Petmin | 438 | 7 437 | - | - | - | - | 7 875 | - | 7 875 |
| Logistics (Pty) Ltd | | | | | | | | | |
+------------------------------+-----------+------------+-----------+---------------+----------+-----------+-------------+----------+------------+
| - To acquire 25% of Veremo | 5 538 | 68 978 | - | - | - | - | 74 516 | - | 74 516 |
| Holdings (Pty) Ltd | | | | | | | | | |
+------------------------------+-----------+------------+-----------+---------------+----------+-----------+-------------+----------+------------+
| - General issue for cash | 7 000 | 72 968 | - | - | - | - | 79 968 | - | 79 968 |
+------------------------------+-----------+------------+-----------+---------------+----------+-----------+-------------+----------+------------+
| - Share options exercised | 938 | 1 566 | (820) | - | - | - | 1 684 | - | 1 684 |
+------------------------------+-----------+------------+-----------+---------------+----------+-----------+-------------+----------+------------+
| - Share options forfeited | - | - | (55) | - | - | - | (55) | - | (55) |
+------------------------------+-----------+------------+-----------+---------------+----------+-----------+-------------+----------+------------+
| Costs capitalised to share | - | (982) | - | - | - | - | (982) | - | (982) |
| premium | | | | | | | | | |
+------------------------------+-----------+------------+-----------+---------------+----------+-----------+-------------+----------+------------+
| Treasury shares acquired | (182) | (1 418) | - | - | - | - | (1 600) | - | (1 600) |
| during the year | | | | | | | | | |
+------------------------------+-----------+------------+-----------+---------------+----------+-----------+-------------+----------+------------+
| Contingent consideration | - | - | - | (20) | - | - | (20) | - | (20) |
| settled in cash in the year | | | | | | | | | |
+------------------------------+-----------+------------+-----------+---------------+----------+-----------+-------------+----------+------------+
| Share options granted | - | - | 12 633 | - | - | - | 12 633 | - | 12 633 |
+------------------------------+-----------+------------+-----------+---------------+----------+-----------+-------------+----------+------------+
| Minority interest recognised | | | | | | | | | |
| on acquisition | | | | | | | | | |
+------------------------------+-----------+------------+-----------+---------------+----------+-----------+-------------+----------+------------+
| of Petmin Logistics (Pty) | - | - | - | - | - | - | - | 2 373 | 2 373 |
| Ltd | | | | | | | | | |
+------------------------------+-----------+------------+-----------+---------------+----------+-----------+-------------+----------+------------+
| Profit for the year | - | - | - | - | - | 380 353 | 380 353 | 61 | 380 414 |
+------------------------------+-----------+------------+-----------+---------------+----------+-----------+-------------+----------+------------+
| Balance at 30 June 2008 | 133 704 | 304 545 | 27 494 | 1 480 | - | 538 201 | 1 005 424 | 2 434 | 1 007 858 |
+------------------------------+-----------+------------+-----------+---------------+----------+-----------+-------------+----------+------------+
| Shares issued during the | | | | | | | | | |
| period | | | | | | | | | |
+------------------------------+-----------+------------+-----------+---------------+----------+-----------+-------------+----------+------------+
| - To acquire 30% of Petmin | 187 | 3 189 | - | - | - | - | 3 376 | (2 056) | 1 320 |
| Logistics (Pty) Ltd | | | | | | | | | |
+------------------------------+-----------+------------+-----------+---------------+----------+-----------+-------------+----------+------------+
| - Share options exercised | 1 945 | 7 161 | (4 199) | - | - | - | 4 907 | - | 4 907 |
+------------------------------+-----------+------------+-----------+---------------+----------+-----------+-------------+----------+------------+
| - Issued to Springlake | 117 | 163 | - | (280) | - | - | - | - | - |
| vendors | | | | | | | | | |
+------------------------------+-----------+------------+-----------+---------------+----------+-----------+-------------+----------+------------+
| Treasury shares acquired | (1 217) | (8 535) | - | - | - | - | (9 752) | - | (9 752) |
| during the period | | | | | | | | | |
+------------------------------+-----------+------------+-----------+---------------+----------+-----------+-------------+----------+------------+
| Treasury shares transferred | 500 | 700 | - | (1 200) | - | - | - | - | - |
| to Springlake vendors | | | | | | | | | |
+------------------------------+-----------+------------+-----------+---------------+----------+-----------+-------------+----------+------------+
| Share options granted | - | - | 446 | - | - | - | 446 | - | 446 |
+------------------------------+-----------+------------+-----------+---------------+----------+-----------+-------------+----------+------------+
| Effective portion of changes | - | - | - | - | (877) | - | (877) | - | (877) |
| in fair value of cash flow | | | | | | | | | |
| hedges | | | | | | | | | |
+------------------------------+-----------+------------+-----------+---------------+----------+-----------+-------------+----------+------------+
| Profit for the period | - | - | - | - | | 81 525 | 81 525 | (378) | 81 147 |
+------------------------------+-----------+------------+-----------+---------------+----------+-----------+-------------+----------+------------+
| Balance at 31 December 2008 | 135 236 | 307 223 | 23 741 | - | (877) | 619 726 | 1 085 049 | - | 1 085 049 |
+------------------------------+-----------+------------+-----------+---------------+----------+-----------+-------------+----------+------------+
Segment reporting
Segment information is presented in the reviewed condensed consolidated
financial statements in respect of the Group's business segments, which are the
primary basis of segment reporting. The business segment reporting format
reflects the Group's management and internal reporting structures.
Inter-segment pricing is determined on an arm's length basis.
Segment results include items directly attributable to a segment as well as
those that can be allocated on a reasonable basis.
Business segments
The Group comprises the following main business segments:
- Silica mining and marketing ("Silica")
- Iron ore mining and beneficiation ("Iron Ore")
- Anthracite mining and marketing ("Anthracite")
Reviewed Condensed Consolidated Financial Statements
for the six months ended 31 December 2008
+---------------+-----------+-----------+------------+-----------+-----------+------------+-----------+-----------+-----------+-----------+-----------+-----------+------------+------------+------------+-------------+------------+------------+
| | Silica | | | Anthracite | | Iron Ore | | Other (corporate office) | Eliminations | | Consolidated | |
+---------------+-----------+-----------+------------+-----------------------+------------+-----------------------+-----------+-----------------------------------+-------------------------+------------+--------------------------+------------+
| | Reviewed | Reviewed | Audited | Reviewed | Reviewed | Audited | Reviewed | Reviewed | Audited | Reviewed | Reviewed | Audited | Reviewed | Reviewed | Audited | Reviewed | Reviewed | Audited |
| | | | | | | | | | | | | | | | | | | |
+---------------+-----------+-----------+------------+-----------+-----------+------------+-----------+-----------+-----------+-----------+-----------+-----------+------------+------------+------------+-------------+------------+------------+
| | six | six | year | six | six | year | six | six | year | six | six | year | six | six | year | six | six | year |
| | months | months | | months | months | | months | months | | months | months | | months | months | | months | months | |
+---------------+-----------+-----------+------------+-----------+-----------+------------+-----------+-----------+-----------+-----------+-----------+-----------+------------+------------+------------+-------------+------------+------------+
| | ended | ended | ended | ended | ended | ended | ended | ended | ended | ended | ended | ended | ended | ended | ended | ended | ended | ended |
+---------------+-----------+-----------+------------+-----------+-----------+------------+-----------+-----------+-----------+-----------+-----------+-----------+------------+------------+------------+-------------+------------+------------+
| | 31 | 31 | 30 June | 31 | 31 | 30 June | 31 | 31 | 30 June | 31 | 31 | 30 June | 31 | 31 | 30 June | 31 | 31 | 30 June |
| | December | December | | December | December | | December | December | | December | December | | December | December | | December | December | |
+---------------+-----------+-----------+------------+-----------+-----------+------------+-----------+-----------+-----------+-----------+-----------+-----------+------------+------------+------------+-------------+------------+------------+
| | 2008 | 2007 | 2008 | 2008 | 2007 | 2008 | 2008 | 2007 | 2008 | 2008 | 2007 | 2008 | 2008 | 2007 | 2008 | 2008 | 2007 | 2008 |
+---------------+-----------+-----------+------------+-----------+-----------+------------+-----------+-----------+-----------+-----------+-----------+-----------+------------+------------+------------+-------------+------------+------------+
| | R'000 | R'000 | R'000 | R'000 | R'000 | R'000 | R'000 | R'000 | R'000 | R'000 | R'000 | R'000 | R'000 | R'000 | R'000 | R'000 | R'000 | R'000 |
+---------------+-----------+-----------+------------+-----------+-----------+------------+-----------+-----------+-----------+-----------+-----------+-----------+------------+------------+------------+-------------+------------+------------+
| Saleable | | | | | | | | | | | | | | | | | | |
| tonnes | | | | | | | | | | | | | | | | | | |
+---------------+-----------+-----------+------------+-----------+-----------+------------+-----------+-----------+-----------+-----------+-----------+-----------+------------+------------+------------+-------------+------------+------------+
| produced | 815 235 | 615 887 | 1 385 906 | 637 325 | 615 360 | 1 219 601 | - | - | - | - | - | - | - | - | - | 1 452 560 | 1 231 247 | 2 605 507 |
+---------------+-----------+-----------+------------+-----------+-----------+------------+-----------+-----------+-----------+-----------+-----------+-----------+------------+------------+------------+-------------+------------+------------+
| Tonnes | 902 513 | 630 089 | 1 434 853 | 682 879 | 597 084 | 1 188 519 | - | - | | - | | | | | | 1 585 392 | 1 227 173 | 2 623 372 |
| sold | | | | | | | | | | | | | | | | | | |
+---------------+-----------+-----------+------------+-----------+-----------+------------+-----------+-----------+-----------+-----------+-----------+-----------+------------+------------+------------+-------------+------------+------------+
| Segment | 101 139 | 68 653 | 153 034 | 389 220 | 249 984 | 519 963 | - | - | - | - | - | - | - | - | - | 490 359 | 318 637 | 672 997 |
| revenue | | | | | | | | | | | | | | | | | | |
+---------------+-----------+-----------+------------+-----------+-----------+------------+-----------+-----------+-----------+-----------+-----------+-----------+------------+------------+------------+-------------+------------+------------+
| Segment | | | | | | | | | | | | | | | | | | |
| profit/(loss) | | | | | | | | | | | | | | | | | | |
+---------------+-----------+-----------+------------+-----------+-----------+------------+-----------+-----------+-----------+-----------+-----------+-----------+------------+------------+------------+-------------+------------+------------+
| before | | | | | | | | | | | | | | | | | | |
| tax | | | | | | | | | | | | | | | | | | |
+---------------+-----------+-----------+------------+-----------+-----------+------------+-----------+-----------+-----------+-----------+-----------+-----------+------------+------------+------------+-------------+------------+------------+
| - | 25 759 | 19 975 | 46 742 | 66 584 | 30 565 | 90 973 | - | - | - | 1 178 | (2 727) | (23 698) | (3 943) | - | - | 89 578 | 47 813 | 114 017 |
| segment | | | | | | | | | | | | | | | | | | |
| result | | | | | | | | | | | | | | | | | | |
+---------------+-----------+-----------+------------+-----------+-----------+------------+-----------+-----------+-----------+-----------+-----------+-----------+------------+------------+------------+-------------+------------+------------+
| - | | | | | | | | | | | | | | | | | | |
| Impairment | | | | | | | | | | | | | | | | | | |
| loss | | | | | | | | | | | | | | | | | | |
+---------------+-----------+-----------+------------+-----------+-----------+------------+-----------+-----------+-----------+-----------+-----------+-----------+------------+------------+------------+-------------+------------+------------+
| on | | | | | | | | | | | | | | | | | | |
| assets | | | | | | | | | | | | | | | | | | |
| classified | | | | | | | | | | | | | | | | | | |
+---------------+-----------+-----------+------------+-----------+-----------+------------+-----------+-----------+-----------+-----------+-----------+-----------+------------+------------+------------+-------------+------------+------------+
| as held | - | - | - | (13 392) | - | - | - | - | - | - | - | - | - | - | - | (13 392) | - | - |
| for sale | | | | | | | | | | | | | | | | | | |
+---------------+-----------+-----------+------------+-----------+-----------+------------+-----------+-----------+-----------+-----------+-----------+-----------+------------+------------+------------+-------------+------------+------------+
| - | | | | | | | | | | | | | | | | | | |
| Impairment | | | | | | | | | | | | | | | | | | |
| loss | | | | | | | | | | | | | | | | | | |
+---------------+-----------+-----------+------------+-----------+-----------+------------+-----------+-----------+-----------+-----------+-----------+-----------+------------+------------+------------+-------------+------------+------------+
| on | - | - | - | (1 327) | - | - | - | - | - | - | - | - | - | - | - | (1 327) | - | - |
| goodwill | | | | | | | | | | | | | | | | | | |
| acquired | | | | | | | | | | | | | | | | | | |
+---------------+-----------+-----------+------------+-----------+-----------+------------+-----------+-----------+-----------+-----------+-----------+-----------+------------+------------+------------+-------------+------------+------------+
| - share | | | | | | | | | | | | | | | | | | |
| of | | | | | | | | | | | | | | | | | | |
| profit | | | | | | | | | | | | | | | | | | |
| of | | | | | | | | | | | | | | | | | | |
+---------------+-----------+-----------+------------+-----------+-----------+------------+-----------+-----------+-----------+-----------+-----------+-----------+------------+------------+------------+-------------+------------+------------+
| equity | | | | | | | | | | | | | | | | | | |
| accounted | | | | | | | | | | | | | | | | | | |
+---------------+-----------+-----------+------------+-----------+-----------+------------+-----------+-----------+-----------+-----------+-----------+-----------+------------+------------+------------+-------------+------------+------------+
| investee | - | - | - | - | - | - | 32 635 | 61 706 | 303 133 | - | - | - | - | - | - | 32 635 | 61 706 | 303 133 |
+---------------+-----------+-----------+------------+-----------+-----------+------------+-----------+-----------+-----------+-----------+-----------+-----------+------------+------------+------------+-------------+------------+------------+
| Segment | | | | | | | | | | | | | | | | | | |
| profit/(loss) | | | | | | | | | | | | | | | | | | |
+---------------+-----------+-----------+------------+-----------+-----------+------------+-----------+-----------+-----------+-----------+-----------+-----------+------------+------------+------------+-------------+------------+------------+
| before | 25 759 | 19 975 | 46 742 | 51 865 | 30 565 | 90 973 | 32 635 | 61 706 | 303 133 | 1 178 | (2 727) | (23 698) | (3 943) | - | - | 107 494 | 109 519 | 417 150 |
| tax | | | | | | | | | | | | | | | | | | |
+---------------+-----------+-----------+------------+-----------+-----------+------------+-----------+-----------+-----------+-----------+-----------+-----------+------------+------------+------------+-------------+------------+------------+
| Segment | | | | | | | | | | | | | | | | | | |
| capital | | | | | | | | | | | | | | | | | | |
+---------------+-----------+-----------+------------+-----------+-----------+------------+-----------+-----------+-----------+-----------+-----------+-----------+------------+------------+------------+-------------+------------+------------+
| expenditure | 10 128 | 11 500 | 27 362 | 160 592 | 43 499 | 198 110 | - | - | - | 2 365 | 139 | 3 295 | (2 972) | - | - | 170 113 | 55 138 | 228 767 |
+---------------+-----------+-----------+------------+-----------+-----------+------------+-----------+-----------+-----------+-----------+-----------+-----------+------------+------------+------------+-------------+------------+------------+
| Segment | | | | | | | | | | | | | | | | | | |
| depreciation | | | | | | | | | | | | | | | | | | |
+---------------+-----------+-----------+------------+-----------+-----------+------------+-----------+-----------+-----------+-----------+-----------+-----------+------------+------------+------------+-------------+------------+------------+
| and | 4 105 | 3 715 | 7 688 | 53 212 | 12 985 | 93 680 | - | - | - | 84 | 46 | 108 | - | - | - | 57 401 | 16 746 | 101 476 |
| amortisation | | | | | | | | | | | | | | | | | | |
+---------------+-----------+-----------+------------+-----------+-----------+------------+-----------+-----------+-----------+-----------+-----------+-----------+------------+------------+------------+-------------+------------+------------+
| Share | | | | | | | | | | | | | | | | | | |
| option | | | | | | | | | | | | | | | | | | |
| costs | | | | | | | | | | | | | | | | | | |
+---------------+-----------+-----------+------------+-----------+-----------+------------+-----------+-----------+-----------+-----------+-----------+-----------+------------+------------+------------+-------------+------------+------------+
| included | | | | | | | | | | | | | | | | | | |
| in | | | | | | | | | | | | | | | | | | |
| segment | | | | | | | | | | | | | | | | | | |
+---------------+-----------+-----------+------------+-----------+-----------+------------+-----------+-----------+-----------+-----------+-----------+-----------+------------+------------+------------+-------------+------------+------------+
| profit/(loss) | - | 95 | 190 | - | - | - | - | - | - | 446 | 6 112 | 12 443 | - | - | - | 446 | 6 207 | 12 633 |
| before tax | | | | | | | | | | | | | | | | | | |
+---------------+-----------+-----------+------------+-----------+-----------+------------+-----------+-----------+-----------+-----------+-----------+-----------+------------+------------+------------+-------------+------------+------------+
| Segment | 217 368 | 194 301 | 228 076 | 805 186 | 517 394 | 663 356 | 423 875 | 131 796 | 375 888 | 394 631 | 341 978 | 401 566 | (392 625) | (317 747) | (326 851) | 1 448 435 | 867 722 | 1 342 035 |
| assets | | | | | | | | | | | | | | | | | | |
+---------------+-----------+-----------+------------+-----------+-----------+------------+-----------+-----------+-----------+-----------+-----------+-----------+------------+------------+------------+-------------+------------+------------+
| Segment | 71 529 | 78 498 | 100 288 | 556 781 | 359 611 | 449 750 | - | - | - | 29 332 | 23 479 | 21 947 | (294 256) | (226 661) | (237 808) | 363 386 | 234 927 | 334 177 |
| liabilities | | | | | | | | | | | | | | | | | | |
+---------------+-----------+-----------+------------+-----------+-----------+------------+-----------+-----------+-----------+-----------+-----------+-----------+------------+------------+------------+-------------+------------+------------+
The capital expenditure of R161 million and amortisation of R53 million in the
six months to 31 December 2008 for the anthracite division include R80 million
and R36 million for "pre-stripping" of the open pits at Somkhele respectively
(Six months ended 31 December 2007: R31 million and R27 million). The open pit
mining profile requires that waste overburden be removed from the pit before
coal may be extracted. This overburden removal is capitalised to the development
cost of the open pit (so called "pre-stripping") and is then expensed on a
units-of-production basis as the coal is extracted from the open pits.
Notes to the Reviewed Condensed Consolidated Financial Statements
for the six months ended 31 December 2008
1. Reporting entity
Petmin is a company domiciled in South Africa. The reviewed condensed
consolidated financial statements of the Company for the six months ended 31
December 2008 comprise the Company and its subsidiaries (together referred to as
the "Group") and the Group's interest in associates.
The reviewed condensed consolidated financial statements were authorised for
issue by the directors on 26 February 2009.
2. Statement of compliance
The reviewed condensed consolidated financial statements have been prepared in
accordance with the recognition and measurement requirements of International
Financial Reporting Standards (IFRSs) and the presentation and disclosure
requirements of IAS 34 - Interim Financial Reporting and the South African
Companies Act. The condensed consolidated financial statements do not include
all of the information required for full annual financial statements and should
be read in conjunction with the consolidated annual financial statements for the
year ended 30 June 2008.
3. Significant accounting policies
The reviewed condensed consolidated financial statements are prepared on the
historical cost basis, except for financial instruments which are stated at fair
value, where applicable, in terms of IAS 32 - Financial Instruments: Disclosure
and Presentation and IAS 39 - Financial instruments: Recognition and
Measurement.
The accounting policies have been applied consistently by Group entities and
have been applied consistently to all periods presented in these reviewed
condensed consolidated financial statements.
Functional and presentation currency:
The consolidated financial statements are presented in Rands, which is the
Company's functional currency. All financial information presented in Rands has
been rounded to the nearest thousand.
4. Estimates and judgements
The preparation of interim financial statements in conformity with IAS 34 -
Interim Financial Reporting requires management to make judgements, estimates
and assumptions that affect the application of policies and reported amounts of
assets and liabilities, income and expenses. The estimates and associated
assumptions are based on historical experience and various other factors that
are believed to be reasonable under the circumstances, the results of which form
the basis for making the judgements about carrying values of assets and
liabilities that are not readily apparent from other sources. Actual results may
differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis.
Revisions to accounting estimates are recognised in the period in which the
estimate is revised if the revision affects only that period or in the period of
the revision and future periods if the revision affects both current and future
periods.
The significant judgements made by management in applying the Group's accounting
policies and the key sources of estimation uncertainty were the same as those
applied to the consolidated financial statements as at and for the year ended 30
June 2008, with the exception of the re-estimation of the fair value of the
acquisition of the 25% investment in Veremo Holdings Limited (See management
commentary).
5. Review of results
The results of the Group as set out above have been reviewed by the Group's
auditors, KPMG Inc. The unqualified review report is available for inspection at
the Group's registered offices.
6. Earnings per ordinary share
Earnings per ordinary share ("EPS") are based on the Group's profit for the
period, divided by the weighted average number of shares in issue during the
year.
+----------------------+----------+-----------+--------+-----------+-----------+---------+
| | Reviewed | Reviewed |
| | six months ended | six months ended |
| | 31 December 2008 | 31 December 2007 |
+----------------------+-------------------------------+---------------------------------+
| | Profit | Number | Per | Profit | Number | Per |
| | for | of | | for | of | |
+----------------------+----------+-----------+--------+-----------+-----------+---------+
| | the | shares | share | the | shares | share |
| | period | in | | period | in | |
+----------------------+----------+-----------+--------+-----------+-----------+---------+
| | R'000 | thousands | in | R'000 | thousands | in |
| | | | cents | | | cents |
+----------------------+----------+-----------+--------+-----------+-----------+---------+
| Basic earnings | | | | | | |
+----------------------+----------+-----------+--------+-----------+-----------+---------+
| per share | 81 525 | 538 244 | 15.15 | 93 161 | 482 659 | 19.30 |
+----------------------+----------+-----------+--------+-----------+-----------+---------+
| Share options | | | | | | |
+----------------------+----------+-----------+--------+-----------+-----------+---------+
| and contingent | | | | | | |
+----------------------+----------+-----------+--------+-----------+-----------+---------+
| consideration | - | 15 629 | (0.43) | - | 10 484 | (0.41) |
+----------------------+----------+-----------+--------+-----------+-----------+---------+
| Diluted EPS | 81 525 | 553 873 | 14.72 | 93 161 | 493 143 | 18.89 |
+----------------------+----------+-----------+--------+-----------+-----------+---------+
| Headline earnings | | | | | | |
| per share | | | | | | |
+----------------------+----------+-----------+--------+-----------+-----------+---------+
| Headline earnings | | | | | | |
| per share is based | | | | | | |
| on the Group's | | | | | | |
| headline earnings | | | | | | |
| divided by the | | | | | | |
| weighted average | | | | | | |
| number of shares in | | | | | | |
| issue during the | | | | | | |
| period. | | | | | | |
+----------------------+----------+-----------+--------+-----------+-----------+---------+
| Reconciliation | | | | | | |
| between earnings and | | | | | | |
| headline earnings | | | | | | |
| per share: | | | | | | |
+----------------------+----------+-----------+--------+-----------+-----------+---------+
| Basic EPS | 81 525 | 538 244 | 15.15 | 93 161 | 482 659 | 19.30 |
+----------------------+----------+-----------+--------+-----------+-----------+---------+
| Adjustments: | | | | | | |
+----------------------+----------+-----------+--------+-----------+-----------+---------+
| - Impairment of | | | | | | |
+----------------------+----------+-----------+--------+-----------+-----------+---------+
| goodwill | 1 327 | - | 0.25 | - | - | - |
+----------------------+----------+-----------+--------+-----------+-----------+---------+
| - Fair value | | | | | | |
+----------------------+----------+-----------+--------+-----------+-----------+---------+
| impairment | | | | | | |
+----------------------+----------+-----------+--------+-----------+-----------+---------+
| on assets held | | | | | | |
+----------------------+----------+-----------+--------+-----------+-----------+---------+
| for sale | 13 392 | - | 2.49 | - | - | - |
+----------------------+----------+-----------+--------+-----------+-----------+---------+
| - Share of profit | | | | | | |
+----------------------+----------+-----------+--------+-----------+-----------+---------+
| of equity | | | | | | |
+----------------------+----------+-----------+--------+-----------+-----------+---------+
| accounted | | | | | | |
+----------------------+----------+-----------+--------+-----------+-----------+---------+
| investee | (32 635) | - | (6.06) | (61 706) | - | (12.78) |
+----------------------+----------+-----------+--------+-----------+-----------+---------+
| Headline EPS | 63 609 | 538 244 | 11.82 | 31 455 | 482 659 | 6.52 |
+----------------------+----------+-----------+--------+-----------+-----------+---------+
| Share options | | | | | | |
+----------------------+----------+-----------+--------+-----------+-----------+---------+
| and contingent | | | | | | |
+----------------------+----------+-----------+--------+-----------+-----------+---------+
| consideration | - | 15 629 | (0.33) | - | 10 484 | (0.14) |
+----------------------+----------+-----------+--------+-----------+-----------+---------+
| Diluted headline | | | | | | |
+----------------------+----------+-----------+--------+-----------+-----------+---------+
| EPS | 63 609 | 553 873 | 11.48 | 31 455 | 493 143 | 6.38 |
+----------------------+----------+-----------+--------+-----------+-----------+---------+
7. Net Asset Value ("NAV") Per Share
+----------------------------------------+-------------+------------+-----------+
| | Reviewed | Reviewed | Audited |
+----------------------------------------+-------------+------------+-----------+
| | six months | six months | Year |
+----------------------------------------+-------------+------------+-----------+
| | ended | ended | ended |
+----------------------------------------+-------------+------------+-----------+
| | 31 December | 31 | 30 |
| | | December | June |
+----------------------------------------+-------------+------------+-----------+
| | 2008 | 2007 | 2008 |
+----------------------------------------+-------------+------------+-----------+
| Ordinary share capital and reserves | | | |
+----------------------------------------+-------------+------------+-----------+
| (R'000) | 1 085 049 | 632 795 | 1 005 424 |
+----------------------------------------+-------------+------------+-----------+
| Total number of shares in issue ('000) | 544 538 | 507 964 | 535 541 |
| | | | |
+----------------------------------------+-------------+------------+-----------+
| NAV per share (cents) | 199.26 | 124.57 | 187.74 |
+----------------------------------------+-------------+------------+-----------+
| Ordinary share capital and reserves | | | |
+----------------------------------------+-------------+------------+-----------+
| (R'000) | 1 085 049 | 632 795 | 1 005 424 |
+----------------------------------------+-------------+------------+-----------+
| Total number of shares in issue ('000) | 544 538 | 507 964 | 535 541 |
+----------------------------------------+-------------+------------+-----------+
| Share options and contingent | | | |
+----------------------------------------+-------------+------------+-----------+
| consideration ('000) | 44 019 | 48 923 | 54 299 |
+----------------------------------------+-------------+------------+-----------+
| Fully diluted number of shares ('000) | 588 557 | 556 887 | 589 840 |
+----------------------------------------+-------------+------------+-----------+
| Fully diluted NAV per share (cents) | 184.36 | 113.63 | 170.46 |
+----------------------------------------+-------------+------------+-----------+
| | | | |
+----------------------------------------+-------------+------------+-----------+
NAV per share increased 11.52 cents or 6% compared to 30 June 2008. Fully
diluted NAV per share increased 13.90 cents or 8% compared to 30 June 2008.
The NAV above includes the value of assets on an historical cost and fair value
at acquisition basis. The directors' valuation of the investments in the various
subsidiaries amounts to 387.90 fully diluted cents per share.
8. Related parties
Dark Capital (Pty) Limited ("Dark Capital"), Petmin's anchor Black Economic
Empowerment shareholder, increased its shareholding in Petmin by acquiring 7
million Petmin shares on exercising their share options in October 2008. Dark
Capital is a material shareholder in Petmin and is therefore a related party as
defined by Section 10 of the Listings Requirements.
8.1 Petmin executive committee remuneration scheme and share option trust
As disclosed in the annual financial statements for the year ended 30 June 2008,
the Petmin executive committee remuneration scheme and share option scheme
affects the executive directors of the Company and constitutes a related party
transaction. The Petmin executive committee remuneration scheme was a three-year
agreement that terminated on 30 June 2008. As reported in the Annual Report for
the year ended 30 June 2008, management has reached agreement with the
Remuneration Committee on a new three year scheme with similar terms and
conditions. The new scheme also includes a new option scheme for which
shareholder approval will be sought in due course.
8.2 Other transactions with related parties
Johan Strijdom, Enrico Greyling and Lebo Mogotsi, all directors of the company,
were issued with 250 000 Petmin shares each upon their exercising of options,
granted in 2004, to acquire shares at 45 cents each. At the time of the grant,
Ms. Mogotsi was a non-executive director.
The Springlake Vendors, all of whom are employed by Petmin, were issued with 2
467 000 Petmin shares in final settlement of the warranty shares due in terms of
the Springlake acquisition that was concluded in November 2005.
9. Subsequent events
Mr. DH Warmenhoven announced his resignation as a director of Petmin with effect
from 28 February 2009. Mr. Warmenhoven will remain a significant shareholder of
Petmin and will provide Petmin with consulting services to June 2009. The Board
of Directors express their gratitude to Mr. Warmenhoven for his valuable
contribution during the formative years of Petmin.
There have been no events that have occurred subsequent to the balance sheet
date which require adjustment of, or disclosure in the financial statements or
notes thereto in accordance with IAS 10 Events After the Balance Sheet Date.
Directors
P J Nel* (Chairman), L Mogotsi (Deputy Chairman), J C du Preez (Chief Executive
Officer),
B B Doig (Chief Operating Officer),
I Cockerill*#, E de V Greyling*, A Martin*, J A Strijdom*, D H Warmenhoven**, J
Taylor*
*Non-executive #British **Resignation effective from 28 February 2009
Registered Office
Parc Nouveaux, First Floor, Block C
225 Veale Street, Brooklyn, Pretoria, 0002
(PO Box 899, Groenkloof, 0027)
Corporate Office
37 Peter Place
Bryanston, 2021
Tel: (011) 706 1644 Fax: (011) 706 1594
Website: www.petmin.co.za
Secretary and Sponsor - JSE
River Group
Andrew Lianos / Estine van der Merwe
Tel: +27 12 346 8540
Nominated Adviser- AIM
Numis Securities Limited
John Harrison / Stuart Skinner
Tel: +44 (0) 207 260 1000
Transfer Secretaries
JSE: Computershare Investor Services (Proprietary) Limited
AIM: Computershare Investor Services PLC
Auditors
KPMG Inc.
Johannesburg
2 March 2009
A PDF version of these results is available on our website: www.petmin.co.za
This information is provided by RNS
The company news service from the London Stock Exchange
END
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Petmin (LSE:PTMN)
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From Jul 2023 to Jul 2024
