Super Group Ltd FY 2013 results

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Super Group Ltd FY 2013 results

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Super Group Ltd FY 2013 results

  1. 1. Reviewed Final Results for the year ended 30 June 2013
  2. 2. Contents SUPER GROUP LIMITED (Incorporated in the Republic of South Africa) Registration number 1943/016107/06 ISIN ZAE000161832 Share code SPG Financial performance and highlights Introduction Financial performance Divisional review Supply Chain Fleet Solutions Dealerships Services Prospects Condensed Consolidated Statement of Comprehensive Income Condensed Consolidated Statement of Financial Position Condensed Consolidated Statement of Cash Flow Condensed Consolidated Statement of Changes in Equity Operating segments Basis of preparation and accounting policies Salient features Company information 1 2 2 3 3 3 4 4 4 6 7 8 9 10 12 12 IBC
  3. 3. FINANCIAL PERFORMANCE AND Highlights for the year ended 30 June 2013 +15% REVENUE +22% OPERATING PROFIT R11,7 billion PROFIT BEFORE TAXATION +26% R1 134 million +0,6 OPERATING PROFIT MARGIN R1 067 million +19% HEPS 9,7% +22% ADJUSTED HEPS 213 cents +17% NAV PER SHARE R1 442 million 1 221 cents Revenue 45% 40% 7 835 R’million Jun 2011 10 205 Jun 2012 11 718 Jun 2013 15% Operating profit 11% 35% R’million Jun 2011 612 Jun 2012 930 Jun 2013 1 134 54% Profit before taxation 9% 34% R’million Jun 2011 Jun 2012 Jun 2013 57% Supply Chain Fleet Solutions Dealerships 470 847 1 067 FINANCIAL RESULTS OPERATING CASH FLOW 221 cents
  4. 4. Introduction Super Group’s Board of directors is pleased to report an excellent set of results for the year ended 30 June 2013. The Group has achieved a significant increase in earnings notwithstanding the difficult economic and trading environment. The results were positively impacted by the acquisitions made during the financial year as well as organic growth in all three divisions. The South African Supply Chain business experienced intensified competition, especially in the Fast Moving Consumer Goods (FMCG) market where indicators confirmed that the South African consumer remained under pressure. The transport and logistics industry was also adversely impacted by protracted strike action and labour unrest during the first half of the year and above inflationary labour cost increases. There was a marked slowdown in Australian commodity exports and the retail consumer market remained subdued as a result of the strong Australian Dollar. However, SG Fleet secured some landmark contracts. FleetAfrica performed ahead of expectations, testament to the resilience and sustainability of the South African operation in a highly competitive trading environment. NAAMSA new car sales reported for the year to 30 June 2013 grew by 8,8% compared to 20,0% for the comparable year to 30 June 2012. The Group successfully implemented a Broad-Based Black Economic Empowerment (B-BBEE) Staff Scheme for the South African Operations, retaining its Level 3 B-BBEE rating. Financial performance Group revenue increased by 14,8% to R11 718 million (2012: R10 205 million). A significant portion of the growth in revenue (11,5%) was a result of new business generation within the Group’s existing businesses and, with the exception of FleetAfrica, all businesses reported real growth in sales for the year. During the year, the Group acquired a controlling interest in Digistics, a procurement and food distribution business in the Quick Service Restaurant industry, and a 75% interest in Safika Oosthuizens, a logistics services company that provides hauling of dry bulk goods such as coal, chrome and “run of mine minerals” in tipper trucks. Digistics’ and Safika Oosthuizens’ financial results were incorporated into the Group’s results with effect from 1 October 2012 and 1 March 2013, respectively. Operating profit increased by 22,0% to R1 134 million (2012: R930 million). The Group improved its operating margin to 9,7% (2012: 9,1%). All divisions increased their margins as a result of the continued stringent focus on operational efficiencies and cost controls. A reduction of 18,0% to R67 million (2012: R82 million) in net finance costs reflects the reduced average Full Maintenance Lease borrowings and lower interest rates compared to the previous year. Profit before taxation increased by 25,9% to R1 067 million (2012: R847 million), reflecting the benefits of improved operational profitability and lower finance costs. Earnings per share (EPS) and headline earnings per share (HEPS) for the year under review increased by 27,6% to 220,0 cents (2012: 172,4 cents) and 18,6% to 212,7 cents (2012: 179,4 cents), respectively. The Group has added one extra peer performance measure, Adjusted HEPS. Adjusted HEPS increased by 22,0% to 220,6 cents (2012: 180,9 cents) on the basis that the amortisation of intangible assets arising on business combinations, B-BBEE and acquisition costs amounting to 7,9 cents per share are excluded from HEPS. Total assets increased by 32,1% to R10 557 million (2012: R7 993 million) mainly as a result of acquisitions, the warehouse expansions at Super Park and an increase in working capital. The Group’s Return on Net Operating Assets (RNOA), after tax, was 20,8% for the year under review compared to the RNOA of 18,9% for the year ended 30 June 2012. Super Group’s net debt position at 30 June 2013 was R159 million from a net cash position of R429 million at 30 June 2012 mainly as a result of the acquisitions made and the developments at Super Park. Total gearing as at 30 June 2013 was 3,7%. Net working capital increased as a result of higher inventories and trade receivables, driven by higher revenue and additional working capital from the acquisitions. The focus on management of working capital continued to be a priority and, as a result cash generated from operations, after a working capital outflow of R286 million, was R1 155 million for the year ended 30 June 2013. Net capital expenditure amounted to R580 million during the year with the main expenditure related to the scheduled replacement of vehicles in Supply Chain and African Logistics, combined with new Dealerships developments and expansions at Super Park. During the year under review, the company repurchased 3,57 million shares, totalling 1,13% of the issued share capital. The total consideration relating to these repurchases approximated R59 million. The Group’s Statement of Financial Position remains robust, reflecting a net asset value per share of 1 221 cents at 30 June 2013 (2012: 1 044 cents), up 16,9%. The condensed consolidated financial statements of Super Group for the year ended 30 June 2013 have been reviewed by the company’s auditor, KPMG Inc. In its review report dated 20 August 2013, which is available for inspection at the company’s registered office, KPMG Inc states that its review was concluded in accordance with the International Standard on Review Engagements 2410, Review of Interim Information Performed by the Independent Auditor of the company, which applies to the review of the consolidated financial information and has expressed an unmodified conclusion on the condensed consolidated financial statements. 2 Super Group Reviewed Final Results for the year ended 30 June 2013
  5. 5. Divisional review Supply Chain R’000 Revenue South Africa African Logistics Operating profit South Africa African Logistics Operating margin (%) South Africa African Logistics Profit before taxation South Africa African Logistics Net operating assets South Africa African Logistics Change % 37,8 39,8 22,0 76,7 80,3 60,7 87,0 86,6 89,0 80,9 100,9 19,3 Year ended 30 June 2013 5 236 529 4 723 142 513 387 395 504 328 164 67 340 7,6 6,9 13,1 353 150 300 412 52 738 2 772 984 2 323 375 449 609 Year ended 30 June 2012 3 800 056 3 379 285 420 771 223 874 181 961 41 913 5,9 5,4 10,0 188 888 160 980 27 908 1 533 142 1 156 360 376 782 Year ended 30 June 2011 2 789 469 2 429 246 360 223 181 497 164 801 16 696 6,5 6,8 4,6 155 323 148 250 7 073 1 187 121 891 000 296 121 Supply Chain South Africa delivered a commendable set of results in an environment that continues to be highly competitive and challenging. The increase in revenue, operating profit and profit before taxation for the year ended 30 June 2013 was mainly driven by good sales volume growth across most of the operations within Supply Chain South Africa. The SG Consumer (FMCG and Staple Foods) business secured five meaningful contracts to replace a large FMCG contract that expired in the second half of the financial year. The Freight and Super Rent businesses performed in line with expectations. Sherwood International returned to profitability with the commencement of a number of new business initiatives in Ghana and Zimbabwe. The Micor business reported improved results and margins on the back of new contracts. SG Convenience continued to grow by expanding its national customer base and a number of new product ranges through SG Gateway and the Super Group Brands Division. SG Bulk performed in line with expectations although its business was affected by disruptions at one of its mining customers. Digistics and Safika Oosthuizens both met expectations and their results were included for nine months from 1 October 2012 and four months from 1 March 2013, respectively. Trans Africa Logistics (TAL) was closed effective 1 November 2012 as a direct result of the Zimbabwe freeze on chrome and nickel exports. The closure costs of TAL have been included in the Services segment. African Logistics reported a strong set of results for the 2013 financial year. These results were achieved on the back of improved north-bound activity as well as additional activity on the Beira-Harare route. As a result, the African Logistics’ fleet is running at between 80% and 90% of its capacity. The Rand weakness towards the latter part of the financial year also positively contributed to the results, reporting a foreign exchange gain of R20,3 million. The vehicle renewal programme was completed in the last quarter of the 2013 financial year and contributed significantly to the improved operational efficiencies and results of the African Logistics’ business. Fleet Solutions R’000 Revenue FleetAfrica SG Fleet Operating profit FleetAfrica SG Fleet Operating margin (%) FleetAfrica SG Fleet Profit before taxation FleetAfrica SG Fleet Net operating assets FleetAfrica SG Fleet Change % (17,4) (60,1) 23,8 7,5 (48,6) 48,8 11,4 (46,2) 52,1 31,2 47,0 25,2 Year ended 30 June 2013 1 817 448 431 648 1 385 800 618 833 125 496 493 337 34,0 29,1 35,6 592 925 118 528 474 397 1 114 304 345 240 769 064 Year ended 30 June 2012 2 201 380 1 081 671 1 119 709 575 810 244 213 331 597 26,2 22,6 29,6 532 347 220 450 311 897 849 056 234 888 614 168 Year ended 30 June 2011 1 880 896 1 051 717 829 179 358 222 149 528 208 694 19,0 14,2 25,2 288 375 108 548 179 827 1 602 518 953 038 649 480 Super Group Reviewed Final Results for the year ended 30 June 2013 3
  6. 6. FleetAfrica performed above expectations by securing new contracts, the most notable being the fleet outsource contract for the City of Polokwane and the redeployment of former City of Johannesburg assets into other authorities. In addition, a number of key corporate and public sector contracts were secured which will provide a solid foundation in the forthcoming financial year. SG Fleet again delivered an excellent performance in the face of increasing competition and the economic slowdown experienced across most of Australia’s industries. The results were mainly attributable to SG Fleet securing major contracts across all sectors, including the large long-term fleet maintenance lease contract for the Australian Federal Government. The second-hand car market softened at the beginning of 2013 as a result of record new vehicle sales towards the end of 2012. The residual values have stabilised and are expected to remain at current levels in the next year. The strength of the Australian Dollar against the Rand impacted on the consolidated results of Super Group to an amount of R52,6 million. Dealerships R’000 Revenue Operating profit Operating margin (%) Profit before taxation Net operating assets Change % 22,3 39,8 51,5 30,4 Year ended 30 June 2013 4 637 791 120 610 2,6 95 652 480 230 Year ended 30 June 2012 3 790 640 86 288 2,3 63 133 368 383 Year ended 30 June 2011 3 161 333 63 710 2,0 40 879 317 854 Dealerships reported good results, reflecting the inclusion of three new dealerships, two agencies added to existing sites and a solid performance by the Finance and Insurance operations. New vehicle sales increased by 22,4% (16,0% from existing dealerships) over the year, which was well ahead of market growth. Total NAAMSA new vehicle sales for the year to 30 June 2013 were up 8,8%. New vehicle sales growth is slowing from its higher base compared to the comparative year and is beginning to reflect lower consumer spending. Dealerships also reported a 26,6% increase in total used vehicle unit sales, with 17,3% of the increase coming from the existing operations. Dealerships continued to improve its operating margin, with a satisfying overall operating margin of 2,6% (June 2012: 2,3%) for the year under review. Services The Services segment includes the corporate functions, Emerald Insurance, the Mauritius operations and the closure costs and operating losses of TAL. The comparative results for the year ended 30 June 2012 include the once-off close-out profits on the expiration of the Eastern Cape Provincial Government and City of Johannesburg contracts. The Mauritius operations and Emerald Insurance performed in line with expectations during the current financial year. Prospects Recent economic data releases indicate that South Africa might experience slower economic growth for the remainder of 2013, than initially anticipated. Despite an improvement in exports, inflationary pressures and high unemployment rates will continue to hamper growth. The outlook for the Australian economy for the same period is also less buoyant than 2012. The highly competitive trading environment continues to place pressure on the Group in terms of consumer sales volumes and securing new contracts. Super Group is embarking on a Domestic Medium Term Note Programme to diversify its sources of funding, optimise its borrowing costs and to facilitate the Group’s growth strategy both organically and via acquisitions in its core divisions. Supply Chain South Africa continues to focus on niche opportunities within the food service, retail and pharmaceutical sectors. An automotive customer of Super Group took occupation of the purpose-built warehouse at Super Park on 1 August 2013. The bespoke warehouse at Super Park for SG Convenience is progressing well and operations will transfer to this facility towards the end of September 2013. The imminent implementation of SANRAL’s e-Toll system will negatively impact on all areas of the Group’s business and continues to be of concern in relation to distribution costs. African Logistics is strategically positioned to benefit from any increased activity in sub-Saharan Africa. The lower overheads resulting from the renewed fleet and streamlined operations will continue to positively contribute to results. FleetAfrica has invested in new product innovations, with the view of penetrating niche market segments. The few major opportunities available to the business generally tend to have long sales cycles and extremely long decision-making processes. FleetAfrica has the capacity and scale to implement and execute on contracts awarded from its pipeline. SG Fleet is expecting moderately lower revenue growth into the next financial year with the slowdown in the Australian economy. Novated lease volumes are expected to reduce due to tax uncertainties within the existing Labour Government pronouncements. SG Fleet is more optimistic about the prospects for both the United Kingdom and New Zealand operations as they gain traction in their respective markets. The Labour Government, in anticipation of the Federal election on 7 September 2013, announced that it is considering an amendment to the Fringe Benefit Tax (FBT) on novated leases. The industry is objecting to the proposed change of excluding the Statutory Cost Method from novated lease contracts as it will increase the administrative burden for companies and 4 Super Group Reviewed Final Results for the year ended 30 June 2013
  7. 7. employees on these schemes. The uncertainty created will also negatively impact new vehicle sales particularly in the lower cost vehicle categories. Dealerships are expecting growth in new vehicle sales to reflect NAAMSA growth projections of approximately 5%. New vehicle sales are set to be constrained by consumer spending. The culture of service excellence in all areas of Super Group’s business and the continued pursuit of new business opportunities remains the Group’s key strategic focus. In line with Super Group’s stated strategy to utilise cash generated in order to invest in acquisitions or repurchase shares, a decision was taken not to declare a dividend for the year ended 30 June 2013. The Board reassesses this strategy on a regular basis. The reviewed condensed consolidated results for the year ended 30 June 2013 will be available on the Group’s website after 08:00 on Tuesday, 20 August 2013 and the presentation to the investor community can be viewed on the Group’s website from Wednesday, 21 August 2013 after 08:00. Copies of the full announcement are available on request from Nigel Redford, Company Secretary, nigel.redford@supergrp.com. The Group’s website is www.supergroup.co.za. On behalf of the Board P Vallet Chairman of the company P Mountford Chief Executive Officer 19 August 2013 Sandton Super Group Reviewed Final Results for the year ended 30 June 2013 5
  8. 8. Condensed Consolidated Statement of Comprehensive Income Revenue Trading profit before depreciation and amortisation Depreciation and amortisation Trading profit Capital items Operating profit Net finance charges Profit before taxation Income tax expense Profit for the year Profit for the year attributable to: Non-controlling interests Equity holders of Super Group Other comprehensive income Effect of foreign exchange Hedge accounting Revaluation of land and buildings Other comprehensive income taxation effect Other comprehensive income for the year Total comprehensive income for the year Total comprehensive income for the year attributable to: Non-controlling interests Equity holders of Super Group RECONCILIATION OF HEADLINE EARNINGS Profit attributable to equity holders of Super Group Capital items after tax Impairment of intangible assets Impairment of property, plant and equipment and full maintenance lease vehicles Impairment of goodwill Impairment of investments (Profit)/loss on sale of property, plant and equipment Negative goodwill on business combination Revaluation of investment property Taxation effect of capital items Non-controlling interest effect of capital items Headline profit for the year Earnings per share (cents) Basic Diluted Headline earnings per share (cents) Basic Diluted RECONCILIATION OF ADJUSTED EARNINGS Headline profit for the year Acquisition costs after tax B-BBEE costs after tax Amortisation of intangible arising on business combinations after tax Adjusted headline profit for the year Adjusted headline earnings per share (cents) Basic Diluted 6 Super Group Reviewed Final Results for the year ended 30 June 2013 Year ended 30 June 2013 Reviewed R’000 11 717 972 1 476 123 (359 254) 1 116 869 17 147 1 134 016 (67 329) 1 066 687 (250 570) 816 117 Year ended 30 June 2012 Audited R’000 10 204 811 1 419 267 (459 381) 959 886 (30 293) 929 593 (82 118) 847 475 (252 548) 594 927 179 433 636 684 816 117 79 314 515 613 594 927 143 164 1 989 14 445 (3 780) 155 818 971 935 158 851 332 42 410 (6 282) 195 311 790 238 212 718 759 217 971 935 123 723 666 515 790 238 636 684 (21 145) 2 892 34 462 3 948 – (20 072) (38 377) – (4 861) 863 515 613 20 744 15 014 32 751 3 243 187 4 123 – (25 025) (9 549) – 615 539 536 357 220,0 211,7 172,4 167,4 212,7 204,7 179,4 174,1 615 539 5 989 6 787 10 198 638 513 536 357 4 582 46 – 540 985 220,6 212,3 180,9 175,6
  9. 9. Condensed Consolidated Statement of Financial Position 30 June 2013 Reviewed R’000 30 June 2012 Audited R’000 2 515 103 64 716 545 247 241 831 1 738 323 3 839 314 469 5 133 374 1 634 269 70 816 491 069 27 077 1 575 837 5 534 311 060 3 877 730 6 100 840 112 1 696 839 695 388 22 390 1 872 545 – 650 312 1 192 893 184 684 73 411 1 776 430 10 556 902 7 993 392 EQUITY AND LIABILITIES Capital and reserves Capital and reserves attributable to equity holders of Super Group Non-controlling interests 3 532 396 751 917 3 020 123 380 522 Total equity 4 284 313 3 400 645 346 740 254 289 146 687 341 681 145 982 164 183 41 515 105 172 61 514 102 669 ASSETS Non-current assets Property, plant and equipment Investment property Full maintenance lease assets Intangible assets Goodwill Investments and other non-current assets Deferred tax assets Current assets Asset held-for-sale Inventories Trade receivables Sundry receivables Insurance-related assets Cash and cash equivalents Total assets Liabilities Fund reserves Deferred tax liabilities Full maintenance lease liabilities Non-current Current Interest-bearing borrowings Non-current Current Non-controlling interest put options and other financial liability Insurance-related liabilities Trade and other payables Income tax payable Provisions Total equity and liabilities 1 884 619 1 183 630 1 550 438 334 181 1 027 956 155 674 209 339 45 511 2 852 456 119 452 413 496 – 139 559 1 978 758 209 800 429 154 10 556 902 7 993 392 Super Group Reviewed Final Results for the year ended 30 June 2013 7
  10. 10. Condensed Consolidated Statement of Cash Flow Year ended 30 June 2013 Reviewed R’000 Year ended 30 June 2012 Audited R’000 Cash flows from operating activities Operating cash flow Working capital (outflow)/inflow 1 441 778 (286 412) 1 573 024 271 318 Cash generated from operations Finance costs paid Investment income and interest received Income tax paid Dividend paid to non-controlling interest 1 155 366 (154 143) 81 501 (349 011) – 1 844 342 (189 397) 107 184 (232 496) (399) Net cash generated from operating activities 733 713 1 529 234 Cash flows from investing activities Net additions to plant and equipment Net additions to land and buildings Net (additions)/disposals to full maintenance lease assets Net additions to intangible assets Acquisition of business Other investing activities (239 948) (177 924) (141 747) (19 896) (217 619) (31 178) (281 482) (32 652) 140 175 (16 414) (82 464) (49) Net cash flow from investing activities (828 312) (272 886) Cash flows from financing activities Share repurchases Net interest-bearing borrowings raised Net full maintenance lease borrowings repaid (59 127) 183 958 (25 264) (227 962) 71 990 (625 694) 99 567 (781 666) Net increase in cash and cash equivalents Net cash and cash equivalents at beginning of the year Effect of foreign exchange on cash and cash equivalents 4 968 1 776 430 91 147 474 682 1 210 456 91 292 Cash and cash equivalents at end of the year 1 872 545 1 776 430 Net cash flow from financing activities 8 Super Group Reviewed Final Results for the year ended 30 June 2013
  11. 11. Condensed Consolidated Statement of Changes in Equity Share capital R’000 Audited balance at 30 June 2011 Changes in equity for 2012 year Other comprehensive income Translation adjustment Hedging reserve Revaluation of land and buildings Taxation effect of revaluation of land and buildings Profit for the year Total comprehensive income for the year Land and buildings depreciation Effect of tax rate change on the revaluation reserve Share-based payment reserve movement Dividends paid Share cancelled Expenses relating to share repurchases Share buybacks Movement in reserves Changes in equity as a result of acquisitions, disposals and transactions with equity partners Audited balance at 30 June 2012 Changes in equity for 2013 year Other comprehensive income Translation adjustment Hedging reserve Revaluation of land and buildings Taxation effect of revaluation of land and buildings Profit for the year Total comprehensive income for the year Transfer from contingency reserve Land and buildings depreciation Realisation of revaluation reserve through sale of revalued properties Share-based payment reserve movement Options exercised Non-controlling interest put options Share buybacks Changes in equity as a result of acquisitions, disposals and transactions with equity partners Reviewed balance at 30 June 2013 Share premium R’000 Other reserves R’000 Retained earnings R’000 Share buyback reserve R’000 Total R’000 Noncontrolling interest R’000 Total equity R’000 327 310 1 893 091 450 406 524 176 (622 206) 2 572 777 258 508 2 831 285 – – – – – – 150 902 114 442 332 – – – – – – 150 902 114 442 332 44 409 44 409 – 195 311 158 851 332 – – 42 410 – – 42 410 – 42 410 – – – – (6 282) – – 515 613 – – (6 282) 515 613 – 79 314 (6 282) 594 927 – – 150 902 515 613 – 666 515 123 723 790 238 – – (911) 911 – – – – – – (7 537) – – (7 537) – (7 537) – – (11 976) – – (145 859) – – – 16 330 – – – – – 16 330 – (157 835) – (399) – 16 330 (399) (157 835) – – – (434) – – – – – – – – – (69 693) – (434) (69 693) – – – 713 (434) (69 693) 713 – – – – – – (2 023) (2 023) 315 334 1 746 798 592 860 1 057 030 (691 899) 3 020 123 380 522 3 400 645 – – – – – – 122 533 110 541 1 327 – – – – – – 122 533 110 541 1 327 33 285 32 623 662 155 818 143 164 1 989 – – 14 445 – – 14 445 – 14 445 – – – – (3 780) – – 636 684 – – (3 780) 636 684 – 179 433 (3 780) 816 117 – – 122 533 636 684 – 759 217 212 718 971 935 – – (1 064) 1 064 – – – – – – (99) 99 – – – – – – (996) 996 – – – – – – – – – – 19 310 (60 601) – – 19 310 (60 601) 551 (230) 19 861 (60 831) – – – – – – (207 356) – – 1 703 (207 356) 1 703 – – (207 356) 1 703 – – – – – – 158 356 158 356 315 334 1 746 798 713 234 1 447 226 (690 196) 3 532 396 751 917 4 284 313 Super Group Reviewed Final Results for the year ended 30 June 2013 9
  12. 12. Operating segments Super Group Supply Chain South Africa Supply Chain African Logistics Year ended 30 June 2013 Reviewed R’000 Revenue South Africa Australia Africa and other Depreciation and amortisation Net operating expenditure – excluding capital items Year ended 30 June 2012 Audited R’000 Year ended 30 June 2013 Reviewed R’000 Year ended 30 June 2012 Audited R’000 Year ended 30 June 2013 Reviewed R’000 Year ended 30 June 2012 Audited R’000 Year ended 30 June 2013 Reviewed R’000 Year ended 30 June 2012 Audited R’000 11 717 972 10 204 811 5 236 529 3 800 056 4 723 142 3 379 285 513 387 420 771 9 813 987 1 327 726 576 259 8 804 579 1 076 329 323 903 (359 254) (459 381) (199 495) (126 425) (179 281) (115 092) (20 214) (11 333) (10 241 849) (8 785 544) (4 653 166) (3 400 449) (4 224 063) (3 044 895) (429 103) (355 554) Trading profit Capital items 1 116 869 17 147 959 886 (30 293) 383 868 11 636 273 182 (49 308) 319 798 8 366 219 298 (37 337) 64 070 3 270 53 884 (11 971) Operating profit Share of profit of equity-accounted investee Net finance costs 1 134 016 929 593 395 504 223 874 328 164 181 961 67 340 41 913 1 143 (68 472) 107 (82 225) – (42 354) – (34 986) – (27 752) – (20 981) – (14 602) – (14 005) Profit before tax 1 066 687 847 475 353 150 188 888 300 412 160 980 52 738 27 908 2 515 103 64 716 545 247 241 831 1 738 323 1 634 269 70 816 491 069 27 077 1 575 837 1 622 639 – – 204 825 419 989 941 779 – – 4 305 350 080 1 311 729 – – 204 825 375 098 674 185 – – 4 305 312 994 310 910 – – – 44 891 267 594 – – – 37 086 3 839 5 534 – 2 838 – 2 838 – – 6 100 840 112 22 390 1 696 839 695 388 – – 650 312 73 411 1 192 893 184 684 – – 181 207 – 1 121 252 537 234 11 223 – 145 004 – 711 789 62 174 11 375 – 156 985 – 1 021 570 510 660 10 522 – 117 529 – 630 423 37 520 5 725 – 24 222 – 99 682 26 574 701 – 27 475 – 81 366 24 654 5 650 4 098 369 2 229 344 3 591 389 1 785 519 506 980 443 825 ASSETS Non-current assets Property, plant and equipment Investment property Full maintenance lease assets Intangible assets Goodwill Investments and other non-current assets Current assets Assets held-for-sale Inventories Insurance-related assets Trade receivables Sundry receivables Intercompany trade receivables SEGMENT ASSETS 8 369 888 5 905 902 South Africa Australia Africa and other 5 901 870 1 607 754 860 264 3 812 401 1 439 008 654 493 1 591 953 1 089 470 403 869 271 841 403 869 271 841 – – 209 339 346 740 – 341 681 209 339 – – – 209 339 – – – – – – – 439 353 45 511 258 343 139 559 285 614 – 77 739 – 285 614 – 77 739 – – – – – 3 265 952 – 2 407 912 – 1 302 196 23 189 680 191 41 869 1 250 077 17 937 618 184 36 831 52 119 5 252 62 007 5 038 2 224 207 1 071 640 2 166 836 1 004 595 57 371 67 045 212 717 275 930 212 937 203 849 (220) 72 081 2 772 984 1 533 142 2 323 375 1 156 360 449 609 376 782 LIABILITIES Non-current liabilities Long-term borrowings Non-controlling interest put options and other financial liability Fund reserves Current liabilities Short-term borrowings Insurance-related liabilities Trade and other payables and provisions Intercompany trade payables SEGMENT LIABILITIES 5 898 848 4 236 965 South Africa Australia Africa and other 4 160 435 1 493 630 244 783 2 620 235 1 500 353 116 377 Net capex 579 514 190 999 South Africa Australia Africa and other 514 546 65 188 (220) 59 726 59 192 72 081 5 072 222 3 259 858 Net operating assets 10 Super Group Reviewed Final Results for the year ended 30 June 2013
  13. 13. Fleet Solutions FleetAfrica SG Fleet Services and inter-company eliminations Dealerships Year ended 30 June 2013 Reviewed R’000 Year ended 30 June 2012 Audited R’000 Year ended 30 June 2013 Reviewed R’000 Year ended 30 June 2012 Audited R’000 Year ended 30 June 2013 Reviewed R’000 Year ended 30 June 2012 Audited R’000 Year ended 30 June 2013 Reviewed R’000 Year ended 30 June 2012 Audited R’000 Year ended 30 June 2013 Reviewed R’000 Year ended 30 June 2012 Audited R’000 1 817 448 2 201 380 431 648 1 081 671 1 385 800 1 119 709 4 637 791 3 790 640 26 204 412 735 (138 836) (286 362) (68 851) (190 860) (69 985) (95 502) (9 801) (7 108) (11 122) (39 486) (1 059 528) (1 334 753) (237 301) (646 598) (822 227) (688 155) (4 507 380) (3 696 874) (21 775) (353 468) 619 084 (251) 580 265 (4 455) 125 496 – 244 213 – 493 588 (251) 336 052 (4 455) 120 610 – 86 658 (370) (6 693) 5 762 19 781 23 840 618 833 575 810 125 496 244 213 493 337 331 597 120 610 86 288 (931) 43 621 – (25 908) – (43 463) – (6 968) – (23 763) – (18 940) – (19 700) – (24 958) – (23 155) 1 143 24 748 107 19 379 592 925 532 347 118 528 220 450 474 397 311 897 95 652 63 133 24 960 63 107 8 747 – 545 247 28 727 1 215 684 8 700 – 491 069 18 798 1 132 107 276 – 380 383 – 87 822 21 – 333 065 – 87 822 8 471 – 164 864 28 727 1 127 862 8 679 – 158 004 18 798 1 044 285 208 832 – – 1 118 102 650 145 454 – – – 93 650 674 885 64 716 – 7 161 – 538 336 70 816 – 3 974 – – – – – – – – – 3 839 2 696 – 83 707 – 357 284 94 038 867 – 46 564 – 267 814 70 333 4 242 – 28 617 – 103 356 28 538 867 – 9 182 – 68 480 8 116 519 – 55 090 – 253 928 65 500 – – 37 382 – 199 334 62 217 3 723 – 570 398 – 134 636 5 834 747 – 458 744 – 110 703 6 511 1 188 6 100 4 800 22 390 83 667 58 282 (12 837) – – 73 411 102 587 45 666 (16 805) 2 334 301 2 039 627 629 859 507 205 1 704 442 1 532 422 1 024 215 816 250 913 003 820 681 500 339 498 276 19 666 52 921 480 673 445 355 – – 687 745 319 353 – 346 740 – 341 681 – 76 826 – 79 681 – 269 914 – 262 000 – – – – – – – – 132 952 – 160 813 – 58 191 – 39 458 – 74 761 – 121 355 – – – – – 20 787 45 511 19 791 139 559 868 108 5 149 843 027 3 695 202 644 5 149 188 941 3 695 665 464 – 654 086 – 903 671 851 690 421 555 191 977 (29 189) 194 273 (46 119) 1 853 288 1 847 492 362 476 364 696 1 490 812 1 482 796 904 522 690 976 916 831 626 857 158 193 (141 824) 93 005 (201 016) 65 188 59 192 76 888 53 475 131 716 3 418 1 114 304 849 056 345 240 234 888 769 064 614 168 480 230 368 383 704 704 509 277 Super Group Reviewed Final Results for the year ended 30 June 2013 11
  14. 14. Basis of preparation and accounting policies The Condensed Consolidated Financial Statements for the year ended 30 June 2013 have been prepared in accordance with the framework concepts and measurement and recognition requirements of International Financial Reporting Standards (“IFRS”), in particular the presentation and disclosure requirements of International Accounting Standard (“IAS”) 34 Interim Financial Reporting, the South African Institute of Chartered Accountants’ Financial Reporting Guides as issued by the Accounting Practices Committee and Financial Pronouncements as issued by the Financial Reporting Standards Council, the Listings Requirements of the JSE Limited and the Companies Act of South Africa. The accounting policies used in the preparation of the reviewed final results for the year ended 30 June 2013, are in terms of IFRS and are consistent with those applied in the Audited Financial Statements for the year ended 30 June 2012, except for the accounting policy adopted in respect of non-controlling interest put option liability for the year ended 30 June 2013 and except for the standards and amendments to standards that became effective on 1 January 2012: Amendment to IAS 12 – Deferred Tax: Recovery of Underlying Assets; and those effective on 1 July 2012: Amendment to IAS 1 – Presentation of Financial Statements: Presentation of Items of Other Comprehensive Income. These amendments have been applied for the first time in Super Group’s financial year commencing 1 July 2012. The amendments did not result in any material changes to the accounting policies. The Condensed Consolidated Financial Statements are presented in Rand, which is Super Group’s presentation currency. These results have been compiled under the supervision of the Chief Financial Officer, C Brown CA(SA), BCompt (Hons), MBL. Salient Features Year ended 30 June 2013 Reviewed R’000 1. Interest-bearing borrowings Australian interest-bearing borrowings Asset-based finance Property and other borrowings Interest-bearing borrowings 2. Share statistics Total issued less treasury shares (’000) Weighted number of shares (’000) Diluted weighted number of shares (’000) Net asset value per share (cents) Year ended 30 June 2012 Audited R’000 486 604 896 840 501 175 494 906 349 581 339 143 1 884 619 1 183 630 289 415 289 394 300 775 1 220,5 289 195 299 013 308 009 1 044,3 508 585 174 640 3. Capital commitments Authorised but not yet contracted for capital commitments, excluding full maintenance lease assets Capital commitments will be funded from normal operating cash flows and the utilisation of existing borrowing facilities 4. Related party transactions The Group, in the ordinary course of business, entered into various sales and purchase transactions on an arm’s length basis with related parties. 5. Subsequent events Other than the matters disclosed, the directors are not aware of any matter or circumstance arising subsequent to the reporting date up to the date of this report, which will affect these results. 12 Super Group Reviewed Final Results for the year ended 30 June 2013
  15. 15. 6. Business combinations Subsidiaries and businesses acquired Nature of business Operating segment Digistics Logistics Safika Oosthuizens Logistics Supply Chain South Africa Supply Chain South Africa Other immaterial acquisitions Dealership Dealerships Date acquired 1 October 2012 1 March 2013 1 August 2012/ 1 October 2012 Purchase Interest consideration acquired transferred (%) R’000 50,1 120 400 75 262 500 100 26 384 Total purchase consideration transferred Fair value of assets acquired and liabilities assumed at date of acquisition: 409 284 Other immaterial acquisitions R’000 Liabilities Deferred tax liabilities Interest-bearing borrowings Trade and other payables Provisions Income tax payable Digistics R’000 612 613 216 432 36 675 31 108 629 878 2 371 191 655 106 989 72 200 62 104 – 433 116 – 100 486 504 737 144 232 (38 377) 17 378 196 762 2 371 91 169 887 – 12 948 13 730 – – – 1 720 732 Assets Property, plant and equipment Intangible assets Goodwill Inventories Trade and other receivables Income tax receivable Cash and cash equivalents Total R’000 Safika Oosthuizens R’000 774 895 918 272 27 565 113 905 474 270 549 677 14 953 297 18 137 89 513 480 828 7 657 297 95 768 384 757 68 849 6 115 – – – – 1 181 – 1 153 102 596 432 555 489 1 181 Acquirees’ carrying amount at acquisition Less: Non-controlling interests 567 640 (158 356) 178 463 (58 063) 362 793 (100 293) 26 384 – Net assets acquired Purchase consideration transferred – Cash 409 274 (191 655) 120 400 (100 486) 262 490 (91 169) 26 384 – Net cash ouflow 217 619 19 914 171 321 26 384 The non-controlling interests have been calculated using the present ownership instruments’ proportionate share in the recognised amounts of the acquiree’s identifiable net assets. Goodwill has been recognised on the acquisitions of the Digistics and Dealership’s businesses amounting to R62,1 million and R12,9 million, respectively. The acquisition of the Safika Oosthuizens business has resulted in negative goodwill of R38,4 million which has been recognised in profit or loss for the year. The negative goodwill has been excluded from the calculation of headline earnings. Impact of the acquisitions on the results of the Group From the dates of acquisition, the acquired businesses contributed: Revenue Attributable profit Total R’000 Digistics R’000 Safika Oosthuizens R’000 1 002 954 37 238 423 618 12 231 412 388 24 973 Other immaterial acquisitions R’000 166 948 34 Super Group Reviewed Final Results for the year ended 30 June 2013 13
  16. 16. Notes 14 Super Group Reviewed Final Results for the year ended 30 June 2013
  17. 17. Notes Super Group Reviewed Final Results for the year ended 30 June 2013 15
  18. 18. Notes 16 Super Group Reviewed Final Results for the year ended 30 June 2013
  19. 19. Company Information Super Group Limited (Incorporated in the Republic of South Africa) Registration number 1943/016107/06 ISIN: ZAE000161832 Share code: SPG (“Super Group” or “the Group” or “the company”) Directors: Executive: P Mountford (Chief Executive Officer) and C Brown (Chief Financial Officer) Non-Executive: P Vallet (Chairman of the company), N Davies*, J Newbury*, V Chitalu*#, D Rose* and Dr E Banda* *Independent #Zambian Company Secretary: N Redford Registered office: 27 Impala Road, Chislehurston, Sandton, 2196 Transfer secretaries: Computershare Investor Services Proprietary Limited (Registration number 2004/003647/07) Ground floor, 70 Marshall Street, Johannesburg, 2001 (PO Box 61051, Marshalltown, 2107) Sponsor: Deutsche Securities (SA) Proprietary Limited (Registration number 1995/011798/07) 3 Exchange Square, 87 Maude Street, Sandton, 2196 Investor Relations: Keyter Rech Investor Solutions CC (Registration number 2008/156985/23) 5 2nd Road, Hyde Park, 2196
  20. 20. www.supergroup.co.za

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