Super Group Ltd HY 2014 results

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Super Group Ltd HY 2014 results

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Super Group Ltd HY 2014 results

  1. 1. Unaudited interim results for the six months ended 31 December 2013
  2. 2. CONTENTS Financial performance and highlights 1 Introduction 2 Financial performance 2 Divisional review 3 • Supply Chain 3 • Fleet Solutions 3 • Dealerships 4 • Services 4 Prospects 4 Basis of preparation and accounting policies 5 Condensed Consolidated Statement of Comprehensive Income 6 Condensed Consolidated Statement of Financial Position 7 Condensed Consolidated Statement of Cash Flow 8 Condensed Consolidated Statement of Changes in Equity 9 Operating segments 10 Salient features 12 Company information 13
  3. 3. FINANCIAL PERFORMANCE AND HIGHLIGHTS For the six months ended 31 December 2013 REVENUE OPERATING PROFIT +31% +26% R7,1 billion PROFIT BEFORE TAXATION R651 million OPERATING PROFIT MARGIN +21% –0,4 R592 million HEPS 9,1% +27% ADJUSTED HEPS +30% 121 cents OPERATING CASH FLOW 126 cents NAV PER SHARE +44% (SINCE 30 JUNE 2013) +11% R935 million 1 352 cents FINANCIAL RESULTS Revenue 51% 37% R’million Dec 2011 4 668 5 429 Dec 2012 7 136 Dec 2013 12% Operating profit 11% 43% R’million Dec 2011 Dec 2012 405 517 Dec 2013 651 46% Profit before taxation 10% 41% R’million Dec 2011 Dec 2012 353 490 Dec 2013 592 49% Supply Chain Fleet Solutions Dealerships Super Group Unaudited interim results for the six months ended 31 December 2013 1
  4. 4. Introduction Super Group’s Board of directors is pleased to report an excellent set of results for the six months ended 31 December 2013. The Group’s earnings growth is commendable given the highly competitive trading environment and strenuous economic conditions experienced by all industries in both South Africa and Australia. The transport and logistics industry in South Africa was impacted by underlying factors such as weak consumer spend, challenges faced by the mining sector as well as the above inflation cost increases being experienced by the local industrial sectors. Logistics into Africa were more robust and an increase in North and South–bound activity was seen. The slowdown in the Australian commodity business, subdued retail consumer market and uncertainty around the Fringe Benefit Tax treatment of novated leases announced by the previous Government in July 2013, negatively influenced the Australian fleet management market until November 2013. For the six months ended 31 December 2013, NAAMSA reported flat growth in the new car dealer market compared to 8,3% for the comparable period to 31 December 2012. On 31 October 2013 Super Group listed Domestic Medium Term Notes on the JSE Limited (JSE) to the value of R471 million with the coupon rate being 3-Month JIBAR plus 180 bps per annum for three years, maturing on 31 October 2016. The approved Domestic Medium Term Programme totals R2 billion. Financial performance Super Group reported an impressive increase in revenue of 31,5% to R7 136 million (December 2012: R5 429 million). The  growth in revenue was mainly due to the excellent performances by the majority of the Supply Chain South Africa businesses, the African Logistics and Dealerships operations, together with the impact of Safika Oosthuizens. The growth in operating profit was driven by operational efficiencies generated by and the stringent focus on cost controls within the operations. As a result, operating profit increased by 25,7% to R651 million (December 2012: R517 million). As a result of the competitive landscape and resultant margin pressure experienced by Supply Chain South Africa’s SG Consumer business and the retracted novated lease market in Australia, the overall operating profit margin declined marginally to 9,1% (December 2012: 9,5%). The increase in net finance costs by 116,7% to R59 million (December 2012: R27 million) relates to the annualisation of the acquisitions, the increase in asset-based finance loans and the interest impact from paying for the acquisitions made. Profit before taxation increased by 20,7% to R592 million (December 2012: R490 million), directly as a result of the improved operational profitability of the Group. Earnings per share (EPS) and headline earnings per share (HEPS) for the period under review increased by 24,9% to 121,9 cents (December 2012: 97,6 cents) and 26,7% to 120,7 cents (December 2012: 95,3 cents), respectively. Adjusted HEPS increased by 29,5% to 125,9 cents (December 2012: 97,2 cents) on the basis that the B–BBEE scheme, amortisation of intangibles and acquisition costs amounting to 5,2 cents per share are excluded from HEPS. The increase in total assets of 12,9% to R11,915 million (June 2013: R10,557 million) was mainly as a result of capital expenditure totalling R461 million due to vehicle purchases in SG Freight, Super Rent and the African Logistics operations, together with the completion of the new warehouses at Super Park. The Group’s Return on Net Operating Assets (RNOA), after tax, was 18,8% for the period under review. Super Group’s net debt position at 31 December 2013 increased to R241 million as a result of the capital expenditure highlighted in the previous paragraph. The Group’s total gearing as at 31 December 2013 was a conservative 5,0% (30 June 2013: 3,7%). The net asset value per share increased by 10,7% for the period to 1 352 cents at 31 December 2013 (30 June 2013: 1 221 cents). The Group’s Statement of Financial Position remains healthy. The working capital outflow of R175 million was mainly due to inventory increasing on the back of seasonable buying ahead of January price increases in Supply Chain South Africa and Dealerships. Cash generated from operations, after working capital, increased by 25,5% to R760 million compared to the previous period’s amount of R606 million. The focus on managing working capital remains a priority. During the period under review, the company repurchased 2 175 791 shares, totalling 0,7% of the issued share capital, at an average share price of R24,38. The total consideration relating to these repurchases approximated R53 million. 2 Super Group Unaudited interim results for the six months ended 31 December 2013
  5. 5. Divisional review Supply Chain R’000 Revenue South Africa African Logistics Change % Six months ended 31 December 2013 Six months ended 31 December 2012 Year ended 30 June 2013 57,4 3 622 921 2 301 716 5 236 529 57,2 3 274 632 2 083 567 4 723 142 59,7 348 289 218 149 513 387 Operating profit 62,6 279 679 171 998 395 504 South Africa 52,4 235 373 154 468 328 164 152,7 44 306 17 530 67 340 7,7 7,5 7,6 African Logistics Operating margin (%) South Africa 7,2 7,4 6,9 12,7 8,0 13,1 61,0 247 030 153 400 353 150 300 412 African Logistics Profit before taxation South Africa 42,7 205 116 143 734 333,6 41 914 9 666 52 738 61,9 2 956 852 1 826 579 2 772 984 South Africa 75,0 2 488 039 1 421 447 2 323 375 African Logistics 15,7 468 813 405 132 449 609 African Logistics Net operating assets The majority of Supply Chain South Africa’s business delivered a commendable performance, specifically Super Rent, VsC and SG Bulk. SG Consumer’s results were impacted by the woes experienced by the Fast Moving Consumer Goods (FMCG) market and volumes were affected as a result. Freight, SG Mobility, Digistics and Safika Oosthuizens performed in line with expectations. Sherwood International and Micor continued to report improved results. SG Convenience reported good sales growth with the assistance of SG Gateway and the Super Group Brands Division. Revenue, operating profit and profit before taxation for the six months ended 31 December 2013 were further impacted by the inclusion of Digistics and Safika Oosthuizens for the full period. African Logistics benefitted from improved efficiencies reaped from the renewal of the fleet and increased cross-border activity. Improved North and South-bound activities, as well as additional activity on the Beira-Harare route were experienced. The renewed African Logistics’ fleet is running at an average capacity of 94%. All of these factors contributed to a sterling set of results reported by this business for the period ended December 2013. The Rand weakness over the period also positively contributed to the results with a foreign exchange gain of R10,6 million. Fleet Solutions R’000 Revenue FleetAfrica SG Fleet Operating profit FleetAfrica SG Fleet Change % Six months ended 31 December 2013 Six months ended 31 December 2012 Year ended 30 June 2013 (2,3) 885 524 906 043 1 817 448 (19,0) 194 930 240 604 431 648 3,8 690 594 665 439 1 385 800 (3,1) 297 108 306 629 618 833 15,3 82 304 71 353 125 496 (8,7) 214 804 235 276 493 337 33,6 33,8 34,0 FleetAfrica 42,2 29,7 29,1 SG Fleet 31,1 35,4 35,6 Operating margin (%) (1,2) 289 929 293 517 592 925 FleetAfrica 27,3 87 950 69 075 118 528 SG Fleet (10,0) 201 979 224 442 474 397 Profit before taxation 45,9 1 206 913 827 336 1 114 304 FleetAfrica 44,8 350 802 242 212 345 240 SG Fleet 46,3 856 111 585 124 769 064 Net operating assets FleetAfrica exceeded expectations mainly as a result of the redeployment of former City of Johannesburg assets into other authorities. In addition, a number of key corporate and public sector contracts, secured during the previous financial year, have provided a solid foundation for this financial year. Revenue declined mainly as a result of the inclusion of R66 million proceeds on disposal of assets in the prior comparable period. The operating profit margin was 42,2% compared to 29,7% for the six months ended 31 December 2012. Super Group Unaudited interim results for the six months ended 31 December 2013 3
  6. 6. SG Fleet delivered a disappointing set of results attributable to the decrease in novated lease contract origination as a result of the uncertainty created by the previous Government of Australia from July 2013, pertaining to potential Fringe Benefit Tax amendments. This market showed significant recovery in December 2013. The second–hand car market weakened during the period under review, but residual values are now stabilising. The Australian Dollar against the Rand positively impacted the consolidated results of Super Group to an amount of R10,5 million. Dealerships Change % Six months ended 31 December 2013 Six months ended 31 December 2012 Year ended 30 June 2013 Revenue 18,4 2 618 378 2 211 420 4 637 791 Operating profit 28,0 70 718 55 258 120 610 2,7 2,5 2,6 Profit before taxation 33,3 58 058 43 565 95 652 Net operating assets 2,7 509 037 495 638 480 230 R’000 Operating margin (%) Dealerships reported very good results, reflecting the inclusion of two GWM dealerships acquired during the period and a solid performance by the Finance and Insurance operations. New vehicle sales increased by 8,2% (7,8% from existing dealerships) over the period, which was again well ahead of market growth. Total NAAMSA new vehicle sales for the period to 31 December 2013 were only up 0,7%. New vehicle sales growth is continuing to slow down and reflects declining consumer spending and the impact of the weak Rand which is also contributing to rising vehicle prices. Dealerships reported a 13,8% increase in total used vehicle unit sales. Dealerships’ operating margin improved to a satisfying 2,7% (December 2012: 2,5%). Services The Services segment includes the corporate functions, Emerald Insurance and the Mauritius operations. The Mauritius operations and Emerald Insurance performed in line with expectations. The substantial increase in net finance costs for this division mainly relates to the increased borrowings to fund the new warehouses at Super Park and the acquisition of Digistics and Safika Oosthuizens. Prospects The outlook for the South African economy is subdued given the low GDP growth reported over the last 12 months and uncertain trading and operating prospects with manufacturing and production contraction in both the industrial and mining industries. The weak Rand, interest rate hikes, higher fuel prices, inflationary pressures and high unemployment rates will continue to hamper growth. The Australian economy, for the same period, is expected to grow at a slower rate than previously experienced. Super Group believes that there are opportunities to expand its core businesses. The Domestic Medium Term Note Programme will allow the Group to diversify its sources of funding, optimise its borrowing costs and to facilitate its growth strategy, both organically and through acquisitions in its core divisions. Supply Chain South Africa continues to focus on niche opportunities within the food services, retail and pharmaceutical sectors. The bespoke warehouses at Super Park have been completed and are fully functional. The implementation of SANRAL’s e-Toll system on 3 December 2013 will negatively impact on all areas of the Group’s business and continues to be of concern in relation to distribution costs and the knock-on effect on GDP. African Logistics remains strategically positioned to profit from any increased activity in sub-Saharan Africa. The business will continue to investigate new opportunities within the region. FleetAfrica’s new product innovations have started to slowly penetrate 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. On 27 January 2014, Super Group announced that SG Fleet is proposing to list on the Australian Securities Exchange following a decision by CHAMP Ventures, a 41,4% shareholder in SG Fleet, to disinvest its interest in accordance with its practice and policies. The Initial Public Offering (IPO) will include an institutional offering with Super Group marginally increasing its controlling shareholding to approximately 50,7%. The details of the proposed IPO are set out in the SENS announcement dated 27 January 2014. The prospects and outlook for SG Fleet will be set out in its prospectus. The Dealerships Division is positive about opportunities in the dealer market. NAAMSA, in the face of the weak Rand and interest rate hikes, is expecting flat dealer market growth in new vehicle sales for the remainder of the financial year. Super Group’s business strategy remains unchanged. The Group prides itself on a culture of service excellence in all areas of its business. New business opportunities continue to be a key strategic focus area for management. 4 Super Group Unaudited interim results for the six months ended 31 December 2013
  7. 7. Super Group’s stated strategy remains to utilise cash generated in order to invest in acquisitions or repurchase shares, accordingly a decision was taken not to declare a dividend for the period ended 31 December 2013. The Board continues to assess this strategy on a regular basis. The unaudited condensed consolidated results for the six months ended 31 December 2013 will be available on the Group’s website after 17:00 on Monday, 10 February 2014 and the presentation to the investor community can be viewed on the Group’s website from Tuesday, 11 February 2014 after 14:00. 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 10 February 2014 Sandton Basis of preparation and accounting policies The Condensed Consolidated Interim Financial Statements for the six month period ended 31 December 2013 are prepared in accordance with International Financial Reporting Standard, (IAS) 34 Interim Financial Reporting, the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee and Financial Pronouncements as issued by Financial Reporting Standards Council and the requirements of the Companies Act of South Africa. These Condensed Consolidated Interim Financial Statements have not been reviewed or audited by the Group's auditors. The accounting policies applied in the preparation of these Condensed Consolidated Interim Financial Statements for the six month period ended 31 December 2013, are in terms of International Financial Reporting Standards and are consistent with those applied in the previous Annual Financial Statements, except for the standards and amendments to standards that became effective for the first time in Super Group’s financial year commencing 1 July 2013, but there was no material effect on the prior period results and consequently no restatements have been made; IFRS 10 – Consolidated Financial Statements; IFRS 11 – Joint Arrangements; IFRS 13 – Fair Value Measurement; IAS 19 (2011) – Employee Benefits; IAS 28 (2011) – Investments in Associates and Joint Ventures; Amendments to IFRS 7 – Financial Instruments: Disclosures: Offsetting Financial Assets and Financial Liabilities; Amendments to IAS 16 – Property, Plant and Equipment: Classification of servicing equipment; Amendment to IAS 32 – Financial Instruments Presentation: Tax effect of distribution to holders of equity instruments; IAS 34 – Interim Financial Reporting: Segment information for segment assets. The adoption of these accounting standards had no significant impact on the Group’s results. The remaining standards, amendments and interpretations, which became effective in the interim period ended 31 December 2013, were assessed for the Group and management concluded that they did not result in material changes to the accounting policies. The Condensed Consolidated Financial Statements are presented in Rand, which is the company’s functional currency and the Group’s presentation currency. These results have been compiled under the supervision of the Chief Financial Officer, Colin Brown, CA(SA), BCompt (Hons), MBL. Super Group Unaudited interim results for the six months ended 31 December 2013 5
  8. 8. Condensed Consolidated Statement of Comprehensive Income Six month Six month Year period ended period ended ended 31 December 31 December 30 June 2013 2012 2013 Unaudited Unaudited Audited R’000 R’000 R’000 7,136,317 5,428,616 11,717,972 1,476,123   Revenue Trading profit before depreciation and amortisation 914,899 667,285 Depreciation and amortisation (269,288) (147,906) (359,254) Trading profit 645,611 519,379 1,116,869 Capital items Operating profit 4,999 (1,962) 17,147 650,610 517,417 1,134,016 Net finance charges (58,706) (27,094) (67,329) Profit before taxation 591,904 490,323 1,066,687 Income tax expense (147,443) (127,974) (250,570) Profit for the period 444,461 362,349 816,117 Profit for the period attributable to: Non-controlling interests 89,664 79,913 179,433 354,797 282,436 636,684 444,461 Equity holders of Super Group 362,349 816,117 143,164 Other comprehensive income 84,198 67,972 Hedge accounting Effect of foreign exchange – 1,327 1,989 Revaluation of land and buildings – 2,083 14,445 Other comprehensive income taxation effect – (314) (3,780) Other comprehensive income for the period (net of taxation) 84,198 71,068 155,818 Total comprehensive income for the period (net of taxation) 528,659 433,417 971,935 Total comprehensive income for the period attributable to: Non–controlling interests 115,838 99,986 212,718 Equity holders of Super Group 412,821 333,431 759,217 528,659 433,417 971,935 354,797 282,436 636,684 (3,542) (6,653) (21,145) 351,255 275,783 615,539 Basic 121,9 97,6 220,0 Diluted 118,3 94,4 211,7 Basic 120,7 95,3 212,7 Diluted 117,1 92,2 204,7 RECONCILIATION OF HEADLINE EARNINGS Profit attributable to equity holders of Super Group Capital items after tax Headline profit for the period Earnings per share (cents) Headline earnings per share (cents) RECONCILIATION OF ADJUSTED EARNINGS Headline profit for the period 351,255 275,783 615,539 Acquisition costs after tax 1,699 2,311 5,989 B–BBEE costs after tax 1,435 2,224 6,787 Amortisation of intangible assets arising on business combination after tax 12,040 902 10,198 366,429 281,220 638,513 Basic 125,9 97,2 220,6 Diluted 122,2 94,0 212,3 Adjusted headline profit for the period Adjusted headline earnings per share (cents) 6 Super Group Unaudited interim results for the six months ended 31 December 2013
  9. 9. Condensed Consolidated Statement of Financial Position 31 December 2013 31 December 2012 30 June 2013 Unaudited Unaudited Audited R’000 R’000 R’000 2,799,076 1,755,551 2,515,103 64,716 69,816 64,716 Full maintenance lease assets 579,539 505,023 545,247 Intangible assets 230,498 101,298 241,831 1,782,507 1,719,330 1,738,323   ASSETS Non-current assets Property, plant and equipment Investment property Goodwill Investments and other non-current assets 33,320 Asset held-for-sale 3,839 313,604 314,469 6,103,273 Current assets 3,278 322,040 Deferred tax assets 4,865,761 5,133,374 – – 6,100 Inventories 1,017,647 767,233 840,112 Trade receivables 1,779,805 1,571,282 1,696,839 847,405 549,350 695,388 14,411 57,231 22,390 2,444,005 1,920,665 1,872,545 11,914,969 9,333,661 10,556,902 3,941,258 3,199,383 3,532,396 838,225 544,515 751,917 4,779,483 3,743,898 4,284,313 Fund reserves and other long-term provisions 440,578 352,193 346,740 Deferred tax liabilities 252,044 158,008 254,289 Full maintenance lease liabilities 189,500 141,965 146,687 Sundry receivables Insurance-related assets Cash and cash equivalents Total assets EQUITY AND LIABILITIES Capital and reserves Capital and reserves attributable to equity holders of Super Group Non-controlling interests Total equity Liabilities Non-current 101,923 Non-controlling interest put option and other financial liability Insurance-related liabilities Trade and other payables Income tax payable Provisions Total equity and liabilities 1,297,942 1,884,619 1,112,216 1,550,438 338,509 Current 105,172 2,157,034 Non-current 41,515 95,364 2,495,543 Interest-bearing borrowings 46,601 87,577 Current 185,726 334,181 215,531 103,908 209,339 33,811 109,739 45,511 3,188,740 2,827,017 2,852,456 68,903 171,612 119,452 250,836 427,379 413,496 11,914,969 9,333,661 10,556,902 Super Group Unaudited interim results for the six months ended 31 December 2013 7
  10. 10. Condensed Consolidated Statement of Cash Flow Six month Six month Year period ended period ended ended 31 December 31 December 30 June 2013 2012 2013 Unaudited Unaudited Audited R’000 R’000 R’000 Operating cash flow 934,976 647,999 1,441,778 Working capital outflow (174,762) (42,457) (286,412) Cash generated from operations 760,214 605,542 1,155,366 Finance costs paid (103,168) (67,852) (154,143) 47,682 44,689 81,501   Cash flows from operating activities Investment income and interest received (157,611) (176,845) (349,011) Dividend paid to non-controlling interest Income tax paid (30,808) – – Net cash generated from operating activities 516,309 405,534 733,713 Cash flows from investing activities (339,834) (71,616) (239,948) Net additions to property Net additions to plant and equipment (88,872) (29,700) (177,924) Net additions to full maintenance lease assets (16,920) (71,905) (141,747) Net additions to intangible assets (15,639) (6,346) (19,896) 6,100 – – Acquisition of business (3,545) (46,298) (217,619) Other investing activities (98,253) 4,015 (31,178) (556,963) (221,850) (828,312) Share repurchases (53,273) (59,127) (59,127) Net interest-bearing borrowings raised/(repaid) 585,534 (5,865) 183,958 Net full maintenance lease borrowings raised/(repaid) 37,490 (26,352) (25,264) Net cash inflow/(outflow) from financing activities 569,751 (91,344) 99,567 Net increase in cash and cash equivalents 529,097 92,340 4,968 Net cash and cash equivalents at beginning of the period 1,872,545 1,776,430 1,776,430 Effect of foreign exchange on cash and cash equivalents 42,363 51,895 91,147 2,444,005 1,920,665 1,872,545 Net disposals on assets held-for-sale Net cash outflow from investing activities Cash flows from financing activities Cash and cash equivalents at end of the period 8 Super Group Unaudited interim results for the six months ended 31 December 2013
  11. 11. Condensed Consolidated Statement of Changes in Equity Share capital R’000 Share premium R’000 Other reserves R’000 Retained earnings R’000 Share buyback reserve R’000 315,334 1,746,798 592,860 1,057,030 Other comprehensive income – – 50,995 Translation adjustment – – 47,899 Hedging reserve – – Revaluation of land and buildings –   Balance at 30 June 2012 – Audited Total R’000 Noncontrolling Interest R’000 Total equity R’000 (691,899) 3,020,123 380,522 3,400,645 – – 50,995 20,073 71,068 – – 47,899 20,073 67,972 1,327 – – 1,327 – 1,327 – 2,083 – – 2,083 – 2,083 Taxation effect of revaluation of land and buildings – – (314) – – (314) – (314) Profit for the period – – – 282,436 – 282,436 79,913 362,349 Total comprehensive income for the period – – 50,995 282,436 – 333,431 99,986 433,417 Transfer from contingency reserve – – (1,064) 1,064 – – – – Buildings depreciation – – (70) 70 – – – – Share-based payment reserve movement – – – 8,862 – 8,862 – 8,862 Options exercised – – – (58,247) – (58,247) – (58,247) Non-controlling interest put options – – – (103,908) – (103,908) – (103,908) Share buyback reserve movement – – – – (878) (878) – (878) Changes in equity as a result of acquisitions, disposals and transactions with equity partners – – – – – – 64,007 64,007 3,743,898 Balance at 31 December 2012 – Unaudited 315,334 1,746,798 642,721 1,187,307 (692,777) 3,199,383 544,515 Other comprehensive income – – 71,538 – – 71,538 13,212 84,750 Translation adjustment – – 62,642 – – 62,642 12,550 75,192 Hedging reserve – – – – – – 662 662 Revaluation of land and buildings – – 12,362 – – 12,362 – 12,362 Taxation effect of revaluation of land and buildings – – (3,466) – – (3,466) – (3,466) Profit for the period – – – 354,248 – 354,248 99,520 453,768 Total comprehensive income for the period – – 71,538 354,248 – 425,786 112,732 538,518 Buildings depreciation – – (29) 29 – – – – Realisation of revaluation reserve through sale of revalued properties – – (996) 996 – – – – 10,999 Share-based payment reserve movement – – – 10,448 – 10,448 551 Options exercised – – – (2,354) – (2,354) (230) (2,584) Non-controlling interest put options – – – (103,448) – (103,448) – (103,448) Share buyback reserve movement – – – – 2,581 2,581 – 2,581 Changes in equity as a result of acquisitions, disposals and transactions with equity partners Balance at 30 June 2013 – Audited – – – – – – 94,349 94,349 315,334 1,746,798 713,234 1,447,226 (690,196) 3,532,396 751,917 4,284,313 Other comprehensive income – – 58,024 – – 58,024 26,174 84,198 Translation adjustment – – 58,024 – – 58,024 26,174 84,198 Profit for the period – – – 354,797 – 354,797 89,664 444,461 Total comprehensive income for the period – – 58,024 354,797 – 412,821 115,838 528,659 Buildings depreciation – – (50) 50 – – – – Share-based payment reserve movement – – – 8,727 – 8,727 426 9,153 Dividends paid – – – – – – (30,808) (30,808) Options exercised – – – (102,520) – (102,520) (180) (102,700) Deferred tax on unexercised options – – – 46,599 – 46,599 1,032 47,631 Non-controlling interest put options – – – (6,192) – (6,192) – (6,192) Share buyback reserve movement – – – – 49,427 49,427 – 49,427 Balance at 31 December 2013 – Unaudited 315,334 1,746,798 771,208 1,748,687 (640,769) 3,941,258 838,225 4,779,483 Super Group Unaudited interim results for the six months ended 31 December 2013 9
  12. 12. Operating segments     Super Group Supply Chain Supply Chain South Africa African Logistics Six month Six month Six month Six month Six month Six month Six month Six month period ended period ended period ended period ended period ended period ended period ended period ended 31 December 31 December 31 December 31 December 31 December 31 December 31 December 31 December 2013 2012 2013 2012 2013 2012 2013 2012 Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited R’000 Depreciation and amortisation Net operating expenditure – excluding capital items R’000 R’000 R’000 R’000 R’000 R’000 R’000 7,136,317 Revenue 5,428,616 3,622,921 2,301,716 3,274,632 2,083,567 348,289 218,149 (269,288) (147,906) (186,045) (64,396) (167,579) (56,103) (18,466) (8,293) (6,221,418) (4,761,331) (3,160,822) (2,067,850) (2,874,013) (1,876,792) (286,809) (191,058) Trading profit 645,611 519,379 276,054 169,470 233,040 150,672 43,014 18,798 Capital items 4,999 (1,962) 3,625 2,528 2,333 3,796 1,292 (1,268) 650,610 517,417 279,679 171,998 235,373 154,468 44,306 17,530 Operating profit Net finance costs and share of profit in associate (58,706) (27,094) (32,649) (18,598) (30,257) (10,734) (2,392) (7,864) Profit before tax 591,904 490,323 247,030 153,400 205,116 143,734 41,914 9,666 As at As at As at As at As at As at As at As at 31 December 30 June 31 December 30 June 31 December 30 June 31 December 30 June     Super Group Supply Chain Supply Chain South Africa African Logistics 2013 2013 2013 2013 2013 2013 2013 2013 Unaudited Audited Unaudited Audited Unaudited Audited Unaudited Audited R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000 2,799,076 2,515,103 1,823,842 1,622,639 1,469,486 1,311,729 354,356 310,910 64,716 64,716 – – – – – – Full maintenance lease assets 579,539 545,247 – – – – – – Intangible assets 230,498 241,831 179,870 204,825 179,870 204,825 – – 1,782,507 1,738,323 422,769 419,989 375,098 375,098 47,671 44,891 33,320 3,839 – – – – – – ASSETS Non-current assets Property, plant and equipment Investment property Goodwill Investments and other non-current assets Current assets Assets held-for-sale – 6,100 – – – – – – Inventories 1,017,647 840,112 319,071 181,207 290,275 156,985 28,796 24,222 Trade receivables 1,779,805 1,696,839 1,277,863 1,121,252 1,175,584 1,021,570 102,279 99,682 847,405 695,388 563,891 537,234 536,838 510,660 27,053 26,574 – – 11,573 11,223 10,847 10,522 726 701 14,411 22,390 – – – – – – 9,148,924 8,369,888 4,598,879 4,098,369 4,037,998 3,591,389 560,881 506,980 Sundry receivables Intercompany trade receivables Insurance-related assets SEGMENT ASSETS LIABILITIES Non-current liabilities Long-term borrowings 2,258,957 1,591,953 511,369 403,869 511,369 403,869 – – Non-controlling interest put options and other financial liability 215,531 209,339 215,531 209,339 215,531 209,339 – – Fund reserves and other long-term provisions 440,578 346,740 – – – – – – Current liabilities Short-term borrowings Trade and other payables and provisions Intercompany trade payables Insurance–related liabilities SEGMENT LIABILITIES Net capex Net operating assets 10 426,086 439,353 302,527 285,614 302,527 285,614 – – 3,439,576 3,265,952 1,599,638 1,302,196 1,512,648 1,250,077 86,990 52,119 5,252 – – 42,389 23,189 37,311 17,937 5,078 33,811 45,511 – – – – – – 6,814,539 5,898,848 2,671,454 2,224,207 2,579,386 2,166,836 92,068 57,371 461,265 579,515 338,918 212,717 298,047 212,937 40,871 (220) 5,308,689 5,072,222 2,956,852 2,772,984 2,488,039 2,323,375 468,813 449,609 Super Group Unaudited interim results for the six months ended 31 December 2013
  13. 13. Fleet Solutions FleetAfrica SG Fleet Services & inter–company eliminations Dealerships Six month Six month Six month Six month Six month Six month Six month Six month Six month Six month period ended period ended period ended period ended period ended period ended period ended period ended period ended period ended 31 December 31 December 31 December 31 December 31 December 31 December 31 December 31 December 31 December 31 December 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000 885,524 906,043 194,930 240,604 690,594 665,439 2,618,378 2,211,420 9,494 9,437 (71,161) (73,074) (35,269) (37,055) (35,892) (36,019) (6,446) (4,288) (5,636) (6,148) (517,470) (526,765) (77,357) (132,196) (440,113) (394,569) (2,541,216) (2,151,789) (1,910) (14,927) 296,893 306,204 82,304 71,353 214,589 234,851 70,716 55,343 1,948 (11,638) 215 425 – – 215 425 2 (85) 1,157 (4,830) 297,108 306,629 82,304 71,353 214,804 235,276 70,718 55,258 3,105 (16,468) (7,179) (13,112) 5,646 (2,278) (12,825) (10,834) (12,660) (11,693) (6,218) 16,309 289,929 293,517 87,950 69,075 201,979 224,442 58,058 43,565 (3,113) (159) Fleet Solutions FleetAfrica SG Fleet Services & inter–company eliminations Dealerships As at As at As at As at As at As at As at As at As at As at 31 December 30 June 31 December 30 June 31 December 30 June 31 December 30 June 31 December 30 June 2013 2013 2013 2013 2013 2013 2013 2013 2013 2013 Unaudited Audited Unaudited Audited Unaudited Audited Unaudited Audited Unaudited Audited R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000       10,846 8,747 364 276 10,482 8,471 209,304   208,832 755,084 674,885 64,716 – – – – – – – – 64,716 579,539 545,247 432,444 380,383 147,095 164,864 – – – – 43,490 28,727 – – 43,490 28,727 783 1,118 6,355 7,161 1,255,738 1,215,684 87,822 87,822 1,167,916 1,127,862 104,000 102,650 – – – – – – – – – – 33,320 3,839   – – – – – – – –   – 6,100 74,305 83,707 3,543 28,617 70,762 55,090 624,271 570,398 – 4,800 346,791 357,284 78,212 103,356 268,579 253,928 151,573 134,636 3,578 83,667 86,318 94,038 15,803 28,538 70,515 65,500 1,259 5,834 195,937 58,282 170 867 170 867 – – 431 747 (12,174) (12,837) – – – – – – – – 14,411 22,390 2,397,197 2,334,301 618,358 629,859 1,778,839 1,704,442 1,091,621 1,024,215 1,061,227 913,003         490,332 500,339 79,611 19,666 410,721 480,673 – – 1,257,256 687,745 – – – – – – – – – – 440,578 346,740 35,104 76,826 405,474 269,914 – – – –     98,430 132,952 46,029 58,191 52,401 74,761 – – 25,129 20,787 636,154 868,108 121,337 202,644 514,817 665,464 957,157 903,671 246,627 191,977 5,547 5,149 5,547 5,149 – – 789 851 (48,725) (29,189) – – – – – – – – 33,811 45,511 1,671,041 1,853,288 287,628 362,476 1,383,413 1,490,812 957,946 904,522 1,514,098 916,831 36,538 158,193 17,288 93,005 19,250 65,188 6,337 76,888 79,472 131,717 1,206,913 1,114,304 350,802 345,240 856,111 769,064 509,037 480,230 635,887 704,704 Super Group Unaudited interim results for the six months ended 31 December 2013 11
  14. 14. Salient Features Six month period ended 31 December 2013 Unaudited R’000 Year ended 30 June 2013 Audited R’000 399,262 1,027,445 476,554 592,282 496,498 441,994 – 359,450 486,604 896,840 – 501,175 2,495,543   Six month period ended 31 December 2012 Unaudited R’000 1,297,942 1,884,619 291,580 291,006 299,972 1,351.7 289,274 289,271 299,231 1,106.0 289,415 289,394 300,775 1,220.5 350,865 373,084 508,585 1. Interest-bearing borrowings Australian interest-bearing borrowings Asset-based finance Corporate bond Property and other 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) 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 borrowings 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 balance sheet date up to the date of this report, which will affect these results. 12 Super Group Unaudited interim results for the six months ended 31 December 2013
  15. 15. 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 Super Group Unaudited interim results for the six months ended 31 December 2013 13

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