Financial Results Announcement
September 08 2009 - 8:35AM
UK Regulatory
TIDMPTMN
RNS Number : 7035Y
Petmin Limited
08 September 2009
Petmin Limited
(Incorporated in the Republic of South Africa)
(Registration number 1972/001062/06)
JSE code : PET AIM code: PTMN
ISIN: ZAE000076014
("Petmin" of "the Company" or "the Group")
Condensed Preliminary Consolidated Financial Statements
for the year ended 30 June 2009 and withdrawal of cautionary announcement
Headline earning per share increase by 46% to 22.29 cents despite difficult
trading conditions
Achievements:
- Profit before tax and seperately disclosed items increased by 52% to R173
million.
- Revenue increased by 18% from R667 million to R789 million.
- Petmin has cash resources of R176 million and undrawn bank facilities of R150
million.
- Net cash flow from operating activities increased by 43% to R225 million
+----------------------------------------------------+------+------------------+------------+
| Condensed Preliminary Consolidated Income | | | |
| Statement | | | |
+----------------------------------------------------+------+------------------+------------+
| for the year ended 30 June 2009 | | | |
+----------------------------------------------------+------+------------------+------------+
| GROUP | | Reviewed | Audited |
+----------------------------------------------------+------+------------------+------------+
| | | Year ended | Year ended |
+----------------------------------------------------+------+------------------+------------+
| | | 30 June 2009 | 30 June |
| | | | 2008 |
+----------------------------------------------------+------+------------------+------------+
| | Note | R' 000 | R' 000 |
+----------------------------------------------------+------+------------------+------------+
| Revenue | | 788 624 | 666 879 |
+----------------------------------------------------+------+------------------+------------+
| Cost of sales | | (578 419) | (502 753) |
+----------------------------------------------------+------+------------------+------------+
| Gross profit | | 210 205 | 164 126 |
+----------------------------------------------------+------+------------------+------------+
| Administration expenses | | (36 311) | (46 335) |
+----------------------------------------------------+------+------------------+------------+
| Results from operating activities | | 173 894 | 117 791 |
+----------------------------------------------------+------+------------------+------------+
| Net finance expense | | (969) | (3 773) |
+----------------------------------------------------+------+------------------+------------+
| - Finance income | | 11 270 | 7 676 |
+----------------------------------------------------+------+------------------+------------+
| - Finance expenses | | (12 239) | (11 449) |
+----------------------------------------------------+------+------------------+------------+
| Profit before tax and separately disclosed items | | 172 925 | 114 017 |
+----------------------------------------------------+------+------------------+------------+
| Separately disclosed items: | | | |
+----------------------------------------------------+------+------------------+------------+
| Loss on sale of subsidiary | | (79 170) | - |
+----------------------------------------------------+------+------------------+------------+
| Impairment loss on goodwill acquired | | (1 327) | - |
+----------------------------------------------------+------+------------------+------------+
| Share of profit of equity accounted investee | | 78 185 | 303 133 |
+----------------------------------------------------+------+------------------+------------+
| Profit before income tax | | 170 613 | 417 150 |
+----------------------------------------------------+------+------------------+------------+
| Income tax expense | | (52 627) | (36 736) |
+----------------------------------------------------+------+------------------+------------+
| Profit for the year | | 117 986 | 380 414 |
+----------------------------------------------------+------+------------------+------------+
| Attributable to: | | | |
+----------------------------------------------------+------+------------------+------------+
| - Equity holders of Petmin | | 118 364 | 380 353 |
+----------------------------------------------------+------+------------------+------------+
| - Minority interest | | (378) | 61 |
+----------------------------------------------------+------+------------------+------------+
| Profit for the year | | 117 986 | 380 414 |
+----------------------------------------------------+------+------------------+------------+
| Basic earnings per ordinary share (cents) | 6 | 21.86 | 75.43 |
+----------------------------------------------------+------+------------------+------------+
| Diluted earnings per ordinary share (cents) | 6 | 20.68 | 74.15 |
+----------------------------------------------------+------+------------------+------------+
+-------------------------------------------------------------+------+----------------+------------+
| Condensed Preliminary Consolidated Balance Sheet | | | |
+-------------------------------------------------------------+------+----------------+------------+
| at 30 June 2009 | | | |
+-------------------------------------------------------------+------+----------------+------------+
| GROUP | | Reviewed | Audited |
+-------------------------------------------------------------+------+----------------+------------+
| | | 30 June 2009 | 30 June |
| | | | 2008 |
+-------------------------------------------------------------+------+----------------+------------+
| | Note | R' 000 | R' 000 |
+-------------------------------------------------------------+------+----------------+------------+
| ASSETS | | | |
+-------------------------------------------------------------+------+----------------+------------+
| Non-current assets | | 1 131 688 | 1 003 860 |
+-------------------------------------------------------------+------+----------------+------------+
| Property, plant and equipment | | 629 102 | 580 200 |
+-------------------------------------------------------------+------+----------------+------------+
| Intangible assets | | 6 925 | 15 034 |
+-------------------------------------------------------------+------+----------------+------------+
| Investment in equity accounted investee | | 470 661 | 375 888 |
+-------------------------------------------------------------+------+----------------+------------+
| Investments | | 25 000 | 2 |
+-------------------------------------------------------------+------+----------------+------------+
| Restricted investments | | - | 11 236 |
+-------------------------------------------------------------+------+----------------+------------+
| Long term receivables | | - | 21 500 |
+-------------------------------------------------------------+------+----------------+------------+
| Current assets | | 341 642 | 338 175 |
+-------------------------------------------------------------+------+----------------+------------+
| Inventories | | 30 373 | 69 261 |
+-------------------------------------------------------------+------+----------------+------------+
| Trade and other receivables | | 214 239 | 179 410 |
+-------------------------------------------------------------+------+----------------+------------+
| Current tax assets | | 5 934 | 793 |
+-------------------------------------------------------------+------+----------------+------------+
| Cash and cash equivalents | | 91 096 | 88 711 |
+-------------------------------------------------------------+------+----------------+------------+
| Total assets | | 1 473 330 | 1 342 035 |
+-------------------------------------------------------------+------+----------------+------------+
| EQUITY AND LIABILITIES | | | |
+-------------------------------------------------------------+------+----------------+------------+
| Ordinary share capital and reserves | | 1 119 101 | 1 005 424 |
+-------------------------------------------------------------+------+----------------+------------+
| Share capital | | 134 686 | 133 704 |
+-------------------------------------------------------------+------+----------------+------------+
| Share premium | | 304 745 | 304 545 |
+-------------------------------------------------------------+------+----------------+------------+
| Share option reserve | | 23 741 | 27 494 |
+-------------------------------------------------------------+------+----------------+------------+
| Contingent consideration reserve | | - | 1 480 |
+-------------------------------------------------------------+------+----------------+------------+
| Hedging reserve | | (636) | - |
+-------------------------------------------------------------+------+----------------+------------+
| Retained earnings | | 656 565 | 538 201 |
+-------------------------------------------------------------+------+----------------+------------+
| Minority interest | | - | 2 434 |
+-------------------------------------------------------------+------+----------------+------------+
| Total equity | | 1 119 101 | 1 007 858 |
+-------------------------------------------------------------+------+----------------+------------+
| Non-current liabilities | | 188 828 | 178 021 |
+-------------------------------------------------------------+------+----------------+------------+
| Interest bearing loans and borrowings | | 65 300 | 55 067 |
+-------------------------------------------------------------+------+----------------+------------+
| Deferred taxation liabilities | | 100 901 | 89 146 |
+-------------------------------------------------------------+------+----------------+------------+
| Environmental rehabilitation provision | | 22 627 | 33 808 |
+-------------------------------------------------------------+------+----------------+------------+
| Current liabilities | | 165 401 | 156 156 |
+-------------------------------------------------------------+------+----------------+------------+
| Trade and other payables | | 119 101 | 132 292 |
+-------------------------------------------------------------+------+----------------+------------+
| Current portion of non-current liabilities | | 46 300 | 15 386 |
+-------------------------------------------------------------+------+----------------+------------+
| Current tax liabilities | | - | 8 478 |
+-------------------------------------------------------------+------+----------------+------------+
| Total equity and liabilities | | 1 473 330 | 1 342 035 |
+-------------------------------------------------------------+------+----------------+------------+
| Net asset value ("NAV") per share (cents) | 7 | 205.51 | 187.74 |
+-------------------------------------------------------------+------+----------------+------------+
| Fully diluted NAV per share (cents) | 7 | 190.14 | 170.46 |
+-------------------------------------------------------------+------+----------------+------------+
+-------------------------------------------------------+-------------+-------------+
| Condensed Preliminary Consolidated Cash Flow | | |
| Statement | | |
+-------------------------------------------------------+-------------+-------------+
| for the year ended 30 June 2009 | | |
+-------------------------------------------------------+-------------+-------------+
| GROUP | Reviewed | Audited |
+-------------------------------------------------------+-------------+-------------+
| | Year ended | Year ended |
+-------------------------------------------------------+-------------+-------------+
| | 30 June | 30 June |
| | 2009 | 2008 |
+-------------------------------------------------------+-------------+-------------+
| | R' 000 | R' 000 |
+-------------------------------------------------------+-------------+-------------+
| Net cash flow from operating activities | 225 364 | 157 154 |
+-------------------------------------------------------+-------------+-------------+
| Cash flows from investing activities | | |
+-------------------------------------------------------+-------------+-------------+
| Acquisition of subsidiary net of cash acquired | - | 502 |
+-------------------------------------------------------+-------------+-------------+
| Increase in investment in rehabilitation funds | (5 115) | (1 064) |
+-------------------------------------------------------+-------------+-------------+
| Increase in equity accounted investee | (41 589) | (11 064) |
+-------------------------------------------------------+-------------+-------------+
| Acquisition of property, plant and equipment | (290 991) | (228 767) |
+-------------------------------------------------------+-------------+-------------+
| - to expand operations | (274 500) | (216 155) |
+-------------------------------------------------------+-------------+-------------+
| - to maintain operations | (16 491) | (12 612) |
+-------------------------------------------------------+-------------+-------------+
| Proceeds from sale of subsidiary net of cash disposed | 77 723 | - |
+-------------------------------------------------------+-------------+-------------+
| Net cash flow from investing activities | (259 972) | (240 393) |
+-------------------------------------------------------+-------------+-------------+
| Cash flows from financing activities | | |
+-------------------------------------------------------+-------------+-------------+
| Proceeds from specific and general share issues for | 4 907 | 91 896 |
| cash during the period | | |
+-------------------------------------------------------+-------------+-------------+
| Treasury shares acquired | (8 775) | - |
+-------------------------------------------------------+-------------+-------------+
| Payment of contingent consideration | (3 990) | (132) |
+-------------------------------------------------------+-------------+-------------+
| Repayment of borrowings | (16 776) | (11 509) |
+-------------------------------------------------------+-------------+-------------+
| Increase in borrowings | 61 627 | 31 345 |
+-------------------------------------------------------+-------------+-------------+
| Net cash flows from financing activities | 36 993 | 111 600 |
+-------------------------------------------------------+-------------+-------------+
| Net increase in cash and cash equivalents | 2 385 | 28 361 |
+-------------------------------------------------------+-------------+-------------+
| Cash and cash equivalents at beginning of year | 88 711 | 60 350 |
+-------------------------------------------------------+-------------+-------------+
| Cash and cash equivalents at end of year | 91 096 | 88 711 |
+-------------------------------------------------------+-------------+-------------+
+------------------------------+---------+----------+---------+---------------+---------+----------+-----------+----------+-----------+
| Condensed Preliminary Consolidated Statement of Changes in Equity |
+-------------------------------------------------------------------------------------------------------------------------------------+
| for the year ended 30 June 2009 |
+-------------------------------------------------------------------------------------------------------------------------------------+
| GROUP | | | Share | Contingent | | | | | |
+------------------------------+---------+----------+---------+---------------+---------+----------+-----------+----------+-----------+
| | Share | Share | option | consideration | Hedging | Retained | | Minority | |
+------------------------------+---------+----------+---------+---------------+---------+----------+-----------+----------+-----------+
| | capital | premium | reserve | reserve | reserve | earnings | Total | interest | Total |
| | | | | | | | | | equity |
+------------------------------+---------+----------+---------+---------------+---------+----------+-----------+----------+-----------+
| | R' | R' | R' | R' 000 | R' | R' | R' | R' | R' 000 |
| | 000 | 000 | 000 | | 000 | 000 | 000 | 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) Ltd | - | - | - | - | - | - | - | 2 373 | 2 373 |
+------------------------------+---------+----------+---------+---------------+---------+----------+-----------+----------+-----------+
| 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 | | | | | | | | | |
| year | | | | | | | | | |
+------------------------------+---------+----------+---------+---------------+---------+----------+-----------+----------+-----------+
| - To acquire 30% of Petmin | 188 | 3 188 | - | - | - | - | 3 375 | (2 056) | 1 319 |
| Logistics (Pty) Ltd | | | | | | | | | |
+------------------------------+---------+----------+---------+---------------+---------+----------+-----------+----------+-----------+
| - Share options exercised | 1 945 | 7 161 | (4 199) | - | - | - | 4 907 | - | 4 907 |
+------------------------------+---------+----------+---------+---------------+---------+----------+-----------+----------+-----------+
| - Issued to Springlake | 117 | 163 | - | (280) | - | - | 0 | - | 0 |
| Vendors | | | | | | | | | |
+------------------------------+---------+----------+---------+---------------+---------+----------+-----------+----------+-----------+
| Treasury shares acquired | (1 768) | (11 012) | - | - | - | - | (12 780) | - | (12 780) |
| during the year | | | | | | | | | |
+------------------------------+---------+----------+---------+---------------+---------+----------+-----------+----------+-----------+
| Treasury shares transferred | 500 | 700 | - | (1 200) | - | - | - | - | - |
| to Springlake Vendors | | | | | | | | | |
+------------------------------+---------+----------+---------+---------------+---------+----------+-----------+----------+-----------+
| Share options granted | - | - | 446 | - | - | - | 446 | - | 446 |
+------------------------------+---------+----------+---------+---------------+---------+----------+-----------+----------+-----------+
| Effective portion of changes | - | - | - | - | (636) | - | (636) | - | (636) |
| in fair value of cash flow | | | | | | | | | |
| hedges | | | | | | | | | |
+------------------------------+---------+----------+---------+---------------+---------+----------+-----------+----------+-----------+
| Profit for the year | - | - | - | - | - | 118 364 | 118 364 | (378) | 117 986 |
+------------------------------+---------+----------+---------+---------------+---------+----------+-----------+----------+-----------+
| Balance at 30 June 2009 | 134 686 | 304 745 | 23 741 | - | (636) | 656 565 | 1 119 101 | - | 1 119 101 |
+------------------------------+---------+----------+---------+---------------+---------+----------+-----------+----------+-----------+
Condensed Preliminary Consolidated Financial Statements
For the year ended 30 June 2009
Segment reporting
Segment information is presented in the condensed preliminary consolidated
financial statements in respect of the Group's business segments, which are
primary basis of segment reporting. The Business segment reporting format
reflects the Group's management and internal reporting structure.
Inter-segment pricing is determined on arm's length basis.
Segment results included 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 segment:
-Silica mining and marketing ("Silica");
-Iron ore mining and beneficiation ("Piglron"); and
-Anthracite mining and marketing ("Anthracite")
+---------------+-----------+-----------+-----------+-----------+----------+---------+----------+----------+-----------+-----------+-----------+-----------+
| | Silica | Anthracite | PigIron | Other | Eliminations | Consolidated |
| | | | | (corporate | | |
| | | | | office) | | |
+---------------+-----------------------+-----------------------+--------------------+---------------------+-----------------------+-----------------------+
| | Reviewed | Audited | Reviewed | Audited | Reviewed | Audited | Reviewed | Audited | Reviewed | Audited | Reviewed | Audited |
+---------------+-----------+-----------+-----------+-----------+----------+---------+----------+----------+-----------+-----------+-----------+-----------+
| | Year | Year | Year | Year | Year | Year | Year | Year | Year | Year | Year | Year |
+---------------+-----------+-----------+-----------+-----------+----------+---------+----------+----------+-----------+-----------+-----------+-----------+
| | ended | ended | ended | ended | ended | ended | ended | ended | ended | ended | ended | ended |
+---------------+-----------+-----------+-----------+-----------+----------+---------+----------+----------+-----------+-----------+-----------+-----------+
| | 30 | 30 | 30 | 30 | 30 | 30 | 30 | 30 | 30 | 30 | 30 | 30 |
| | June | June | June | June | June | June | June | June | June | June | June | June |
+---------------+-----------+-----------+-----------+-----------+----------+---------+----------+----------+-----------+-----------+-----------+-----------+
| | 2009 | 2008 | 2009 | 2008 | 2009 | 2008 | 2009 | 2008 | 2009 | 2008 | 2009 | 2008 |
+---------------+-----------+-----------+-----------+-----------+----------+---------+----------+----------+-----------+-----------+-----------+-----------+
| | R' | R' | R' | R' | R' | R' | R' | R' | R' | R' | R' | R' |
| | 000 | 000 | 000 | 000 | 000 | 000 | 000 | 000 | 000 | 000 | 000 | 000 |
+---------------+-----------+-----------+-----------+-----------+----------+---------+----------+----------+-----------+-----------+-----------+-----------+
| Saleable | 1 333 613 | 1 385 906 | 1 016 940 | 1 219 601 | - | - | - | - | - | - | 2 360 553 | 2 605 507 |
| tonnes | | | | | | | | | | | | |
| produced | | | | | | | | | | | | |
+---------------+-----------+-----------+-----------+-----------+----------+---------+----------+----------+-----------+-----------+-----------+-----------+
| Tonnes sold | 1 511 850 | 1 434 853 | 960 764 | 1 188 519 | - | - | - | - | - | - | 2 472 614 | 2 623 372 |
+---------------+-----------+-----------+-----------+-----------+----------+---------+----------+----------+-----------+-----------+-----------+-----------+
| Segment | 180 796 | 153 034 | 607 829 | 513 845 | - | - | - | - | - | - | 788 625 | 666 879 |
| revenue | | | | | | | | | | | | |
+---------------+-----------+-----------+-----------+-----------+----------+---------+----------+----------+-----------+-----------+-----------+-----------+
| Segment | | | | | | | | | | | | |
| profit/(loss) | | | | | | | | | | | | |
| before tax | | | | | | | | | | | | |
+---------------+-----------+-----------+-----------+-----------+----------+---------+----------+----------+-----------+-----------+-----------+-----------+
| - Segment | 47 524 | 46 742 | 128 840 | 90 973 | - | - | 507 | (23 698) | (3 946) | - | 172 925 | 114 017 |
| result | | | | | | | | | | | | |
+---------------+-----------+-----------+-----------+-----------+----------+---------+----------+----------+-----------+-----------+-----------+-----------+
| - Impairment | | | (1 327) | | | | | | | | (1 327) | |
| loss on | | | | | | | | | | | | |
| goodwill | | | | | | | | | | | | |
| acquired | | | | | | | | | | | | |
+---------------+-----------+-----------+-----------+-----------+----------+---------+----------+----------+-----------+-----------+-----------+-----------+
| - Loss on | - | - | - | - | - | - | (79 170) | - | - | - | (79 170) | - |
| sale of | | | | | | | | | | | | |
| subsidiary | | | | | | | | | | | | |
+---------------+-----------+-----------+-----------+-----------+----------+---------+----------+----------+-----------+-----------+-----------+-----------+
| - Share of | - | - | - | - | 78 185 | 303 133 | - | - | - | - | 78 185 | 303 133 |
| profit of | | | | | | | | | | | | |
| equity | | | | | | | | | | | | |
| accounted | | | | | | | | | | | | |
| investee | | | | | | | | | | | | |
+---------------+-----------+-----------+-----------+-----------+----------+---------+----------+----------+-----------+-----------+-----------+-----------+
| Segment | 47 524 | 46 742 | 127 513 | 90 973 | 78 185 | 303 133 | (78 663) | (23 698) | (3 946) | - | 170 613 | 417 150 |
| profit/(loss) | | | | | | | | | | | | |
| before tax | | | | | | | | | | | | |
+---------------+-----------+-----------+-----------+-----------+----------+---------+----------+----------+-----------+-----------+-----------+-----------+
| Segment | 16 327 | 27 362 | 277 327 | 198 110 | - | - | 2 598 | 3 295 | (2 289) | - | 293 964 | 228 767 |
| capital | | | | | | | | | | | | |
| expenditure | | | | | | | | | | | | |
+---------------+-----------+-----------+-----------+-----------+----------+---------+----------+----------+-----------+-----------+-----------+-----------+
| Segment | 10 335 | 7 688 | 120 702 | 93 680 | - | - | 177 | 108 | - | - | 131 214 | 101 476 |
| depreciation | | | | | | | | | | | | |
+---------------+-----------+-----------+-----------+-----------+----------+---------+----------+----------+-----------+-----------+-----------+-----------+
| Share option | | | | | | | | | | | | |
| costs | | | | | | | | | | | | |
| included in | | | | | | | | | | | | |
| segment | | | | | | | | | | | | |
| profit/(loss) | | | | | | | | | | | | |
+---------------+-----------+-----------+-----------+-----------+----------+---------+----------+----------+-----------+-----------+-----------+-----------+
| before tax | - | 190 | - | - | - | - | 446 | 12 443 | - | - | 446 | 12 633 |
+---------------+-----------+-----------+-----------+-----------+----------+---------+----------+----------+-----------+-----------+-----------+-----------+
| Segment | 228 612 | 228 076 | 653 148 | 663 356 | 495 661 | 375 888 | 355 908 | 401 566 | (259 999) | (326 851) | 1 473 330 | 1 342 035 |
| assets | | | | | | | | | | | | |
+---------------+-----------+-----------+-----------+-----------+----------+---------+----------+----------+-----------+-----------+-----------+-----------+
| Segment | 66 931 | 100 288 | 451 964 | 449 750 | - | - | 42 497 | 21 947 | (207 163) | (237 808) | 354 229 | 334 177 |
| liabilities | | | | | | | | | | | | |
+---------------+-----------+-----------+-----------+-----------+----------+---------+----------+----------+-----------+-----------+-----------+-----------+
The losses in the corporate office in 2008 included a once-off impairment charge
of R4.7 million and share option costs of R12.7 million.
The sale of Springlake Holdings (Pty) Ltd to Shanduka Coal (Pty) Ltd was
concluded on 29 June 2009. Due to adverse international financial market
conditions, the selling price was renegotiated to R85 million, resulting in a
loss on the sale amounting to R79 million.
The R78 million (2008: R303 million) share of profit on equity accounted
investee reflects the financial impact of the capitalisation of Petmin's loan to
Veremo whereby Petmin increased its effective economic interest in the Veremo
Group, refer to item (ii) in the management commentary.
Notes to the Condensed Preliminary Consolidated Financial Statements
for the year ended 30 June 2009
1. Reporting entity
Petmin is a company domiciled in South Africa. The condensed preliminary
consolidated financial statements of the Group for the year ended 30 June 2009
comprise the Company and its subsidiaries (together referred to as the "Group")
and the Group's interests in associates.
The condensed preliminary consolidated financial statements were authorised for
issue by the directors on 7 September 2009.
2.Statement of compliance
The condensed preliminary 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, the JSE Limited
("JSE") Listings Requirements and the
South African Companies Act, 1973. The condensed preliminary 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 condensed preliminary 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:
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 condensed
preliminary consolidated financial statements.
4.Estimates and judgements
The preparation of reviewed 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.
5. Review of results
The results of the Group as set out above have been reviewed by the Group's
auditors, KPMG Inc. The review report is available for inspection at the Group's
registered office.
6. Earnings per share
Earnings per 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 | Audited |
| | Year ended | Year ended |
| | 30 June | 30 June |
| | 2009 | 2008 |
+---------------------------+--------------------------------+---------------------------------+
| | Profit | Number of | | Profit | Number of | |
| | for | | | for | | |
+---------------------------+---------+-----------+----------+----------+-----------+----------+
| | the | shares in | Per | the year | shares in | Per |
| | year | | share | | | share |
+---------------------------+---------+-----------+----------+----------+-----------+----------+
| | R' 000 | thousands | in cents | R' 000 | thousands | in cents |
+---------------------------+---------+-----------+----------+----------+-----------+----------+
| Basic earnings per share | 118 365 | 541 354 | 21.86 | 380 353 | 504 280 | 75.43 |
+---------------------------+---------+-----------+----------+----------+-----------+----------+
| Share options and | | | | | | |
| contingent | | | | | | |
+---------------------------+---------+-----------+----------+----------+-----------+----------+
| consideration | - | 31 035 | (1.18) | - | 8 701 | (1.28) |
+---------------------------+---------+-----------+----------+----------+-----------+----------+
| Diluted EPS | 118 365 | 572 389 | 20.68 | 380 353 | 512 981 | 74.15 |
+---------------------------+---------+-----------+----------+----------+-----------+----------+
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 year.
+----------------------------+------------------+-----------+---------+--------------+-----------+---------+
| | Reviewed | Audited |
| | Year ended | Year ended |
| | 30 June | 30 June |
| | 2009 | 2008 |
+----------------------------+----------------------------------------+------------------------------------+
| | Profit for | Number | | Profit for | Number | |
| | | of | | | of | |
+----------------------------+------------------+-----------+---------+--------------+-----------+---------+
| | the year | shares | Per | the year | shares | Per |
| | | in | share | | in | share |
+----------------------------+------------------+-----------+---------+--------------+-----------+---------+
| | R' 000 | thousands | in | R' 000 | thousands | in |
| | | | cents | | | cents |
+----------------------------+------------------+-----------+---------+--------------+-----------+---------+
| Reconciliation between | | | | | | |
| earnings and | | | | | | |
+----------------------------+------------------+-----------+---------+--------------+-----------+---------+
| headline earnings per | | | | | | |
| share | | | | | | |
+----------------------------+------------------+-----------+---------+--------------+-----------+---------+
| Basic EPS | 118 364 | 541 354 | 21.86 | 380 353 | 504 280 | 75.43 |
+----------------------------+------------------+-----------+---------+--------------+-----------+---------+
| Adjustments: | | | | | | |
+----------------------------+------------------+-----------+---------+--------------+-----------+---------+
| - Impairment of goodwill | 1 327 | - | 0.25 | - | - | - |
+----------------------------+------------------+-----------+---------+--------------+-----------+---------+
| - Loss on sale of | 79 170 | - | 14.62 | - | - | - |
| subsidiary | | | | | | |
+----------------------------+------------------+-----------+---------+--------------+-----------+---------+
| - Share of profit of | | | | | | |
| equity accounted | | | | | | |
+----------------------------+------------------+-----------+---------+--------------+-----------+---------+
| investee | (78 185) | - | (14.44) | (303 133) | - | (60.12) |
+----------------------------+------------------+-----------+---------+--------------+-----------+---------+
| Headline EPS | 120 676 | 541 354 | 22.29 | 77 220 | 504 280 | 15.31 |
+----------------------------+------------------+-----------+---------+--------------+-----------+---------+
| Share options and | - | 31 035 | (1.21) | - | 8 701 | (0.26) |
| contingent consideration | | | | | | |
+----------------------------+------------------+-----------+---------+--------------+-----------+---------+
| Diluted headline EPS | 120 676 | 572 389 | 21.08 | 77 220 | 512 981 | 15.05 |
+----------------------------+------------------+-----------+---------+--------------+-----------+---------+
| EPS decreased by 53.57 cents or 71% compared with 30 June 2008. This was mainly due to the |
| inclusion of R303 million |
| recognised in income in 2008 on the initial acquisition of the investment in Veremo Holdings (Pty) |
| Ltd. |
+----------------------------+------------------+-----------+---------+--------------+-----------+---------+
+------------------------------------------------------------+--------------------+--------------+
| 7. Net asset value ("NAV") per share | | |
+------------------------------------------------------------+--------------------+--------------+
| | Reviewed | Audited |
+------------------------------------------------------------+--------------------+--------------+
| | Year ended | Year ended |
+------------------------------------------------------------+--------------------+--------------+
| | 30 June | 30 June |
+------------------------------------------------------------+--------------------+--------------+
| | 2009 | 2008 |
+------------------------------------------------------------+--------------------+--------------+
| Ordinary share capital and reserves (R'000) | 1 119 101 | 1 005 424 |
+------------------------------------------------------------+--------------------+--------------+
| Total number of shares in issue ('000) | 544 538 | 535 541 |
+------------------------------------------------------------+--------------------+--------------+
| NAV per share (cents) | 205.51 | 187.74 |
+------------------------------------------------------------+--------------------+--------------+
| Ordinary share capital and reserves (R'000) | 1 119 101 | 1 005 424 |
+------------------------------------------------------------+--------------------+--------------+
| Total number of shares in issue ('000) | 544 538 | 535 541 |
+------------------------------------------------------------+--------------------+--------------+
| Share options and contingent consideration ('000) | 44 019 | 54 299 |
+------------------------------------------------------------+--------------------+--------------+
| Fully diluted number of shares ('000) | 588 557 | 589 840 |
+------------------------------------------------------------+--------------------+--------------+
| Fully diluted NAV per share (cents) | 190.14 | 170.46 |
+------------------------------------------------------------+--------------------+--------------+
NAV per share increased by 17.77 cents to 205.51 cents or 9.5% compared with 30
June 2008.
Fully diluted NAV per share rose by 19.68 cents to 190.14 cents or 11.5%
compared with 30 June 2008.
The NAV above includes the value of assets on an historical cost and fair value
at acquisition basis. The director's valuation of the investments in the various
subsidiaries amounts to R2.2 billion or approximately 374 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 fi nancial 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.
8.2 Other transactions with related parties
Johan Strijdom, Enrico Greyling and Lebo Mogotsi, all directors of the company,
were issued 250 000 Petmin shares each upon their exercising of options, granted
in 2005, 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 fi nal settlement of the warranty shares due in terms
of the Springlake acquisition that was concluded in November 2005, resulting in
the reduction of the contingent consideration reserve to R nil (2008: R1.48
million).
9. Change in directors
On 28 February 2009, Dawie Warmenhoven announced his resignation as a director
of Petmin. He will remain a significant shareholder and continues to provide
Petmin with consulting services. The Board of Directors expresses its gratitude
to Dawie for his valuable contribution during the formative years of Petmin.
10. Subsequent events
10.1 Appointment of director
On 7 July 2009, Petmin announced the appointment of Bruce Tanner as Financial
Director of Petmin with effect from 1 July 2009. Bruce joined Petmin in 2005 as
Group Financial Manager and CFO and has served on the Executive Committee since
joining the Group.
10.2 Exercise of options
On 30 June 2009, the Company was informed that Lebo Mogotsi and Bradley Doig
(both executive directors) directly exercised
4 000 000 options each at an exercise price of 65 cents per share. Dawie
Warmenhoven, who resigned as a director of the Company on
28 February 2009, indirectly exercised 3 000 000 options at an exercise price
of 65 cents per share. Johan Gloy (a director of a subsidiary company) directly
exercised 1 000 000 options at an exercise price of 65 cents per share and 500
000 options at an exercise price of
45 cents per share. The shares were issued in July 2009.
The options were awarded in terms of a share incentive scheme approved by
shareholders on 19 July 2005.
On 30 June 2009, the Company was informed that Numis Securities Limited
exercised 4 798 900 options at an exercise price of 9 British pence per share.
These options were granted pursuant to the placement agreement on Petmin's
admission to AIM in December 2006. The shares were issued in July 2009.
(i) Operations
Revenue for the year ended 30 June 2009 increased by R122 million or 18% to R789
million compared with the R667 million in 2008. Gross profi t was R210 million,
an increase of R46 million or 28% compared with R164 million in 2008. This was
as a result of improved sales prices achieved at Somkhele for the year under
review and as a result of Springlake securing exceptional sales prices on export
vessels in the fi rst half of the year under review. There was a consistently
strong performance from the silica mine, SamQuarz (Pty) Ltd ("SamQuarz") which
generated a profi t before tax of R48 million compared with R47 million in 2008.
Administration expenses were R36 million, down from R46 million in 2008 due to a
reduction in share option expenses to R0.4 million compared with R12.7 million
in 2008, there being no further share options issued in the year under review.
Cash of R255 million (2008: R168 million) was generated by operations after
outflows from changes in working capital of R59 million (2008: R84 million).
Capital expenditure of R291 million was incurred in the year to 30 June 2009
(2008: R229 million). R184 million (2008: R133 million) was spent on exploration
drilling and mine development programmes to expand operations and R91 million
(2008: R80 million) on plant and mining equipment. The main focus of the capital
expenditure was the delineation of additional reserves and resources at Somkhele
and SamQuarz, the construction and erection of a rotary crusher at Somkhele to
increase plant throughput, the development of pit room at Somkhele, and the
construction of workshops and terraces for product stockpiles and terraces for a
possible second wash plant at Somkhele.
The ratio of interest bearing debt to equity at 30 June 2009 was 9.97% (2008:
7.01%). An amount of R24 million (2008: R31 million) was drawn on the plant
finance facility at Somkhele in the year ended 30 June 2009 to fund the
expansion of the project and the construction of the rotary crushing plant.
The Group has negotiated additional debt facilities of approximately R150
million with its bankers which are currently not utilised. With significant cash
resources, low gearing and available debt facilities Petmin has created a
platform for growth.
Anthracite Division
Somkhele anthracite mine, Springlake Colliery (sold effective 29 June 2009) and
Petmin Logistics
Management is pleased to report that the Anthracite Division produced 1,016,940
tonnes (2008: 1,219,601 tonnes) and sold 960,764 tonnes (2008: 1,188,512 tonnes)
of anthracite in the year to 30 June 2009.
As previously reported in the Interim Results for the six months ended 31
December 2008, there was a significant decline in the international market for
metallurgical coal in the latter part of calendar 2008 and the South African
ferrochrome industry reduced production levels in the six months ended 30 June
2009. Somkhele was shielded from the reduced international demand by the sale of
coal in terms of its long-term export agreement. Subsequent to 30 June 2009,
there has been an increase in demand from the South African ferrochrome market
and other metallurgical producers as additional smelters are brought back into
production.
Mining at Somkhele is progressing well and sufficient "pre-stripping" of the
overburden in the pits has been done to ensure that reduced levels of
development expenditure can be maintained in the year ahead, without reducing
the production of Anthracite. Commencement of extraction of Anthracite from Area
1 has been delayed, pending a visible sustainable increase in market demand.
The exploration drilling programme at Somkhele has been verified by Snowden
Mining Industry Consultants in their report dated June 2009. The drilling
programme resulted in an additional 23.97 million tonnes of resources being
delineated as follows: 11.9 million tonnes measured resources, 3.37 million
tonnes indicated resources and 0.2 million tonnes inferred resources in the
Luhlanga area and an additional 8.5 million tonnes inferred resources in the
Kwaqubuka and Emalehlene areas, all of which are contiguous with current
operations.
At 30 June 2009, Somkhele had reserve of 31.61 million run of mine tonnes which,
at current production levels, provides for a life of mine in excess of 30 years.
This reserve figure excludes the additional 23.97 million tonnes of resources
declined during the year.
The long-term export contract has been renegotiated for the period after 30 June
2009 to accommodate the reduced short-term demand in the international market
for anthracite. The terms have been amended to reflect 200,000 tonnes per year
over four years from the current 350,000 tonnes in 2010 and 400,000 tonnes in
2011 at an average price of $119 per tonne.
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.
The Company has concluded the sale of Springlake Holdings (Pty) Limited
("Springlake") and all outstanding conditions precedent were met on 29 June
2009. As a result of delays in meeting all the conditions precedent, during
which period global market conditions dramatically declined, the final
sale/purchase consideration was adjusted in line therewith and as a result the
Company received proceeds of R85 million (included in current receivables at 30
June 2009), resulting in an IFRS accounting loss on sale of R79 million being
recognised at 30 June 2009.
Silica Division
SamQuarz silica mine
SamQuarz produced 1,333,613 tonnes (2008: 1,385,906 tonnes) and sold 1,511,850
tonnes (2008: 1,434,853 tonnes) of silica and chert in the year ended 30 June
2009.
The Silica Division's profit before tax was steady at R48 million (2008: R47
million).
Capital expenditure has been focused on increasing production capacity both in
the open-pit and the plant to ensure that customers' 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, an increase
of 33% from 45.75 million tonnes and 11.48 million tonnes of chert, a rise of
88% from 6.11 million tonnes, resulting in a life-of-mine in excess of 40 years.
SamQuarz was granted a new order mining right conversion for its mining license
on 30 April 2009.
(ii) Investment in the Veremo pig-iron project
During the year under review Petmin capitalised its R25 million loan to Veremo
Holdings (Pty) Limited whereby its interest in Veremo Minerals (Pty) Ltd
increased to an effective 34.9% (2008: 25%). The resultant fair value on
acquisition of the additional interest in Veremo Minerals resulted in a share of
profit of equity accounted investee of R78 million (2008: R303 million) being
recognised in income.
Renewals of new order prospecting rights for all the Veremo prospecting areas
were approved and executed on 7 May 2009.
During period under review the Veremo project feasibility study made solid
progress. In view of this the board of Veremo commissioned a further infill
drilling programme of 1 000 metres using triple-tube drilling, and appointed
industry consultants to manage the programme.
The scope of the programme is to define the orebody clearly and delineate the
weathered and fresh ore zones from a quantity and quality perspective which,
once clearly understood, will determine the ultimate process to be selected. The
outcome will be an updated CPR with measured, indicated and inferred resources
which we anticipate will be released in mid-December 2009.
Petmin views legislative compliance as the basic standard and strives to ensure
it adheres, as a minimum, to all legislation and legal aspects of its EMPR's in
place or applied for and is constantly seeking sustainable solutions to ensure
harmony between the communities within which we operate, the natural environment
and our operations.
(iii) Prospects
Anthracite Division
Subsequent to the 30 June 2009 reporting period, indications are that the South
African ferrochrome and other metallurgical producers are increasing production
levels and returning mothballed smelters to production. Somkhele is well-placed
to increase production levels to meet any increased demand. The level of planned
capital expenditure at the operation has been reduced in the 2010 budget year as
sufficient pre-stripping of overburden in the open pits has been done in the
2008 and 2009 financial years to support the required coal delivery for the year
ahead.
Silica Division
We anticipate improved demand from the metallurgical sector, in particular the
ferrochrome industry, in the second half of the year and stable
off-take from our glass customers.
Pig Iron Division
Concurrently with the drill and sampling programme, extensive metallurgical
testing will commence on the representative ore samples taken from both
weathered and fresh zones. The conclusion of this test work will lead into the
pilot plant testing programme in 2010. Thereafter it is anticipated the final
flow sheets for the process will be determined.
(iv) General
Management is of the view that trading conditions will improve slowly in the
year ahead and, while operations were appropriately scaled during the reporting
period, operations are well-positioned to take advantage of any increase in
demand.
We are well-positioned for acquisitive growth with low gearing and cash
resources, as well as numerous opportunities presented by
virtue of the global financial crisis.
Our key investment criteria are:
- mining assets that are cash producing or projects that could be cash
producing within 24 months;
- key commodities include anthracite, coking coal, steam coal, industrial
minerals, iron ore, chrome, manganese and base metals;
- mining assets must have reserve and resource statements supported by
SAMREC-or JORC-compliant Competent Persons' Reports.
- minimum project Internal rate of return of 20%; and
- minimum life of mine of 10 years.
More details on Petmin can be found on our website (www.petmin.co.za). We
welcome shareholders and/or potential sellers of assets to contact us.
Withdrawal of cautionary announcement
Shareholders are advised that the negotiations referred to in the cautionary
announcement published on 19 August 2009 have been terminated as Petmin's due
diligence process indicated that the potential investment did not meet the
investment criteria listed above.
Therefore, caution is no longer required to be exercised by shareholders when
dealing in their securities.
+---------------------------------------------------------------+---------------------------------------------------------------+
| By order of the Board | |
+---------------------------------------------------------------+---------------------------------------------------------------+
| P J Nel | J C du Preez |
+---------------------------------------------------------------+---------------------------------------------------------------+
| Chairman | Chief Executive Officer |
+---------------------------------------------------------------+---------------------------------------------------------------+
| | |
+---------------------------------------------------------------+---------------------------------------------------------------+
| Pretoria | |
+---------------------------------------------------------------+---------------------------------------------------------------+
| 7 September 2009 | |
+---------------------------------------------------------------+---------------------------------------------------------------+
Directors
P J Nel* (Chairman), L Mogotsi (Deputy Chairman), J C du Preez (Chief Executive
Offi cer), B B Doig (Chief Operating Offi cer), I Cockerill*#, E de V Greyling*,
A Martin*, J A Strijdom*, J Taylor*, B P Tanner (Financial Director)
*Non-executive #British
+---------------------------------------------------------------+----------------------------------------------------------+
| Registered Office | Corporate Office |
+---------------------------------------------------------------+----------------------------------------------------------+
| Parc Nouveaux, First Floor, Block C | 37 Peter Place |
+---------------------------------------------------------------+----------------------------------------------------------+
| 225 Veale Street, Brooklyn, Pretoria, 0002 | Bryanston, 2021 |
+---------------------------------------------------------------+----------------------------------------------------------+
| (PO Box 899, Groenkloof, 0027) | Tel: (011) 706 1644 Fax: (011) 706 1594 |
+---------------------------------------------------------------+----------------------------------------------------------+
| | website: www.petmin.co.za |
+---------------------------------------------------------------+----------------------------------------------------------+
| | |
+---------------------------------------------------------------+----------------------------------------------------------+
| Secretary and Sponsor - JSE | Nominated Adviser - AIM |
+---------------------------------------------------------------+----------------------------------------------------------+
| River Group | Numis Securities Limited (John Harrison) |
+---------------------------------------------------------------+----------------------------------------------------------+
| | Tel: +44 (0) 207 260 1000 |
+---------------------------------------------------------------+----------------------------------------------------------+
| Transfer Secretaries | Auditors |
+---------------------------------------------------------------+----------------------------------------------------------+
| JSE: Computershare Investor Services (Proprietary) Limited | KPMG Inc. |
+---------------------------------------------------------------+----------------------------------------------------------+
| AIM: Computershare Investor Services PLC | |
+---------------------------------------------------------------+----------------------------------------------------------+
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
FR ILFELATITIIA
Petmin (LSE:PTMN)
Historical Stock Chart
From Jun 2024 to Jul 2024
Petmin (LSE:PTMN)
Historical Stock Chart
From Jul 2023 to Jul 2024