Clover Industries Limited Integrated Report 2018

SIX-YEAR FINANCIAL REVIEW

Summarised results for the year	Increase/ (decrease) 2018 vs 2017	2018 R’000	2017 R’000	2016 R’000	2015 R’000	*2014 R’000	*2013 R’000
Revenue	(17.4%)	8 312 477	10 058 599	9 818 717	9 266 251	8 530 237	7 832 911
Operating profit	94.3%	611 049	314 479	564 450	509 072	282 276	371 624
Impairment of RCF to DFSA		(439 042)	–	–	–	–	–
Net financing cost
Current and long-term liabilities	(29.2%)	(94 262)	(133 118)	(112 825)	(74 064)	(57 809)	(46 717)
Profit before tax from continuing operations	(57.1%)	77 745	181 361	451 625	435 008	224 467	324 907
Taxes	239.4%	(139 509)	(41 105)	(113 992)	(100 286)	(49 791)	(99 022)
Share of profit of joint ventures	14.2%	21 104	18 486	14 268	10 939	14 306	13 974
Non-controlling interest	(645.2%)	2 639	(484)	(995)	4 684	(2 316)	(1 233)
(Loss)/profit attributable to equity holders of the parent	(124.0%)	(38 021)	158 258	350 906	350 345	186 666	238 626
Headline (loss)/earnings attributable to equity holders of the parent	(136.3%)	(44 188)	121 617	356 594	319 343	187 464	214 894

Normalised earnings	2018 R’000	2017 R’000	2016 R’000	2015 R’000	*2014 R’000	*2013 R’000
Operating profit	611 049	314 479	564 450	509 072	282 276	371 624
Adjusted for exceptional items:
(Profit)/loss on sale and scrapping of property, plant and equipment and other assets	(1 273)	(33 404)	(20 869)	(38 950)	5 102	(11 680)
Gain on fair valuing of existing investment in joint venture due to acquiring control	–	–	–	–	–	(16 747)
Discount on acquisition of PPE by Clover Waters through issue of shares	–	–	–	–	(20 716)	–
Bargain purchase at acquisition of stake in Clover Good Hope	–	–	(1 721)	–	–	–
Profit on sale of Lactolab	(200)	(9 270)	–	–	–	–
Retrenchment costs	2 007	46 779	8 493	8 156	7 174	17 184
Legal and professional services costs associated with the listing	–	–	–	75	141	49
Release of foreign currency translation reserve in abandonment of foreign operations	–	–	28 366	–	–	–
Profit on unbundling of DFSA	–	(4 483)	–	–	–	–
Other restructuring cost	2 116	1 319	–	241	8 721	18 517
Normalised operating profit	609 216	319 903	578 719	478 594	282 698	378 947
Normalised operating profit (from previous page)	609 216	319 903	578 719	478 594	282 698	378 947
Impairment of RCF to DFSA	(439 042)	–	–	–	–	–
Net financing cost	(94 262)	(133 118)	(112 825)	(74 064)	(57 809)	(46 716)
Tax expense
Total tax expense	(139 509)	(41 105)	(113 992)	(100 286)	(49 791)	(99 022)
Other non-recurring tax adjustments	–	–	–	–	–	–
Taxation adjustment on exceptional items	(612)	(7 434)	(2 466)	5 576	(4 286)	(8 453)
Share of profit of joint ventures after tax	21 104	18 486	14 268	10 939	14 306	13 974
Non-controlling interest	2 639	(484)	(995)	4 684	(2 316)	(1 233)
Non-controlling interest’s portion in discount on acquisition of PPE by Clover Waters through issue of shares	–	–	–	–	6 215	–
Non-controlling interest’s portion on profit on sale of assets	–	(753)	–	–	–	–
Non-controlling interest’s portion of restructuring cost of subsidiary	–	–	–	–	(741)	–
Reversal of impairment of RCF to DFSA	–	439 042	–	–	–	–
Normalised profit attributable to equity holders of the parent	397 823	156 248	362 709	325 443	188 276	237 497

*	From 2014 all joint ventures were equity accounted. The figures for 2013 were restated to show this effect.

	2018 R’000	2017 R’000	2016 R’000	2015 R’000	**2014 R’000	**2013 R’000
Dividends
Equity dividends – ordinary shares	50 686	114 802	108 755	71 624	69 342	41 912
Preference dividends recognised as interest	–	–	–	–	–	20 346
Earnings and dividends per share	Cents	Cents	Cents	Cents	Cents	Cents
Equity dividends per ordinary share – Interim	26.56	24.21	24.21	22.6	16.0	10.0
Equity dividends per ordinary share – Final	48.68	–	40.94	33.4	16.0	22.0
Preference dividend recognised as interest per preference share	–	–	–	–	–	22.7
(Loss)/earnings per ordinary share	(19.9)	83.1	185.9	190.4	102.3	133.1
Diluted (loss)/earnings per ordinary share	(19.7)	82.3	181.8	182.0	97.3	123.8
Headline (loss)/earnings per ordinary share	(23.1)	63.9	188.9	173.6	102.7	119.9
Diluted headline (loss)/earnings per ordinary share	(22.9)	63.2	184.7	165.9	97.8	111.5
Normalised earnings per share, calculated by dividing the normalised profit by the weighted average number of ordinary shares	208.5	82.0	192.2	176.9	103.2	132.5

Summarised statement of financial positionSummarised statement of financial position	2018 R’000	2017 R’000	2016 R’000	2015 R’000	2014 R’000	2013 R’000
Non-current assets	3 096 287	3 120 227	2 972 730	2 752 656	2 302 052	1 997 482
Deferred taxation asset	30 203	45 496	37 019	32 696	8 919	6 722
Current assets	3 132 124	2 882 420	2 856 294	2 689 485	2 298 621	2 413 733
Total assets	6 258 614	6 048 143	5 866 043	5 474 837	4 609 592	4 417 937
Shareholders’ funds	2 842 405	2 894 862	2 865 412	2 571 338	2 252 270	2 113 116
Non-controlling interest	(17 818)	(15 179)	23 305	13 510	20 471	2 309
Non-current portion of interest-bearing borrowings	665 059	767 621	931 455	681 601	662 357	666 640
Non-current portion of provisions	75 424	82 595	73 474	74 901	67 615	60 814
Non-current portion of trade and other payables	11 448	25 492	19 311	21 459	4 351	9 267
Other non-current financial liabilities	26 002	66 771	2 199	2 716	–	–
Deferred taxation liability	260 309	221 065	192 358	188 253	179 023	137 313
Current portion of interest-bearing borrowings	685 691	714 304	343 015	573 576	214 495	172 646
Current liabilities excluding interest-bearing borrowings	1 710 094	1 290 612	1 415 514	1 350 199	1 209 010	1 255 832
Total equity and liabilities	6 258 614	6 048 143	5 866 043	5 474 837	4 609 592	4 417 937
Net assets	2 824 587	2 879 682	2 888 717	2 584 848	2 272 741	2 115 425
Replacement value of property, plant and machinery*	10 469 703	9 771 296	9 116 408	7 577 153	7 577 153	6 106 300

*	Replacement value of property, plant and machinery is determined by an external valuator.
**	From 2014 all joint ventures were equity accounted. The figures for 2013 were restated to show this effect.
	A list of all definitions used in the above calculation is set out here.

Number of shares in issue	2018	2017	2016	2015	*2014	*2013
Number of ordinary shares in issue at year-end	190 835 364	190 835 364	190 314 350	187 731 138	182 478 589	181 218 149
Weighted average number of ordinary shares	190 835 364	190 433 237	188 733 409	183 989 596	182 478 589	179 267 674
Weighted average number of ordinary shares for calculation of diluted earnings	192 680 105	192 358 073	193 021 978	192 466 775	191 767 408	192 750 186

Cash flow	2018 R’000	2017 R’000	2016 R’000	2015 R’000	2014 R’000	2013 R’000
Cash flow from operating activities	1 117 732	276 956	673 448	160 185	403 067	219 198
Cash used in investment activities	(578 647)	(277 708)	(332 629)	(556 822)	(351 734)	(515 811)
Cash (outflow)/inflow from financing activities	(326 288)	(57 982)	(212 426)	218 097	(97 780)	297 159
Cash flow from operating activities per share (cents)	585,7	145,4	356,8	87,1	220,9	122,3

Ratios and returns	%	%	%	%	%	%
Operating profit to revenue	7.4	3.1	5.7	5.5	3.3	4.7
Normalised operating profit	7.3	3.2	5.9	5.2	3.3	4.8
Return on net assets	13.1	6.8	13.2	13.5	8.6	13.1
Return on net assets excluding exceptional items	13.1	6.9	13.5	12.7	8.6	13.4
Return on equity holders’ funds	(1.3)	5.5	12.9	14.5	8.6	11.9
Return on equity holders’ funds excluding exceptional items	13.9	5.4	13.3	13.5	8.6	11.9
Gearing percentage (net of cash)	20.9	32.5	23.2	30.2	9.8	6.4
Effective tax rate	141.1	20.6	24.5	22.5	20.9	29.3

	Times	Times	Times	Times	Times	Times
Net asset turn	3.8	4.4	4.5	5	5.6	6.2
Current ratio	1.3	1.4	1.6	1.4	1.6	1.7

Employees’ statistics	Number	Number	Number	Number	Number	Number
Average number of employees	8 044	8 796	8 456	7 177	6 393	6 519

	R’000	R’000	R’000	R’000	R’000	R’000
Revenue per employee	1 033.4	1 143.5	1 161.2	1 291.1	1 334.3	1 201.6
Operating profit per employee	76.0	35.8	66.8	70.9	44.2	57
Normalised operating profit	75.7	36.4	68.4	66.7	44.2	58
Average net assets per employee	354.6	327.9	323.6	338.4	343.2	307.7

*	From 2014 all joint ventures were equity accounted. The figures for 2013 were restated to show this effect.
	A list of all definitions used in the above calculation is set out here.

Scroll

Financial capital

Combined assurance on the six capitals

Integrated Report

Annual Financial Statements

AGM

Date: Monday, 26 November 2018
at 10am

Venue: Clover Headquarters

Notice to AGM
Proxy

SHAREHOLDER INFORMATION

Head Office

200 Constantia Drive,
Constantia Kloof, 1709

Tel: +27 (0)11 471 1400

FEEDBACK