Wrap Text
Unaudited Group Interim Results
SANTOVA LIMITED
("Santova" or "the Company")
(Registration Number 1998/018118/06)
Share Code: SNV
ISIN: ZAE000159711
SANTOVA LIMITED
UNAUDITED GROUP INTERIM RESULTS
for the six months ended 31 August 2017
HIGHLIGHTS
2017 2016 %
August August Movement
Gross billings (R'000) 1 972 887 2 000 612 (1,4)
Revenue (R'000) 158 178 159 772 (1,0)
Profit before tax (R'000) 43 287 40 489 6,9
Billings margin (%) 8,0 8,0 0,0
Headline earnings (R’000) 32 739 28 942 13,1
Operating margin (%) 27,4 25,3 2.1
Percentage offshore
earnings (%) 66,5 58,0 8,5
Basic earnings per
share (cents) 20,71 18,43 12,4
Headline earnings
per share cents) 20,69 18,40 12,4
Total assets (R'000) 951 630 930 287 2,3
Capital and reserves (R'000) 392 447 367 726 6,7
Cash generated from
operations (R'000) 31 343 36 255 (13,5)
Cash and cash
equivalents (R'000) 97 788 100 664 (2,9)
Debt to equity ratio (%) 45,7 49,0 (3,3)
Net asset value
per share (cents) 245,63 233,24 5,3
Tangible net asset
value per share (cents) 129,29 105,85 22,1
2017 SANTOVA INTERIM RESULTS COMMENTARY
for the six months ended 31 August 2017
OVERVIEW
The Group’s core strategy of diversification through the expansion of
its international footprint has enabled it to deliver meaningful organic
growth in this period, whilst reducing its reliance on the South African
operations and its exposure to the volatile socio-political and economic
state of the region. This is highlighted by the fact that the Group’s
international operations now contribute 66,5% (2016: 58,0%) of overall
Group profit. The overall growth (all organic) in profit of 27,6%,
achieved during the period from the logistics operations, was generated
across all the regions within which the Group operates, including:
the Asia-Pacific region which contributed a 32,8% growth in
profit;
the Europe/United Kingdom region which contributed 20,0% and
the South African region which contributed 29,2% growth in
profit.
The effect of this strong underlying organic growth has enabled the Group
to achieve an overall 13,1% increase in headline earnings to R32,7 million
(2016: R28,9 million) which translated into a 12,4% increase in headline
earnings per share to 20,69 cents, from 18,40 cents in the prior period.
Had it not been for the strengthening of the South African Rand across
most currencies in the second half of the 2017 financial year, the
Group’s overall results would have benefitted much more favourably from
the translation of its foreign earnings. This is evident in the 22,5%
strengthening of the average South African Rand to the British Pound
exchange rate and 12,7% to the Euro over the comparative prior year
period. These are the two primary currencies in which the majority of
the Group’s offshore investments are held and the overall impact of this
strengthening of the South African Rand was a reduction of 11,3% in the
actual growth achieved for the period under review.
Key highlights during the period under review include:
The acquisition of the remaining 25% minority interest in Santova
Australia, which facilitates the further expansion and
development of the Group’s presence in the region;
The investment in upgrading infrastructure and operational
capacity to facilitate further growth in a number of regions
including Australia, Germany, and the United Kingdom;
The first phase of deployment of the Group’s next generation
logistics software (TradeNav®) into the European and United
Kingdom regions; and
The continued investment in the Santova Express (Courier
services) and the Client Sourcing and Procurement Management
divisions which complement the Group’s core logistics products
and offer long-term revenue enhancing opportunities. Revenue from
Client Sourcing and Procurement Management services grew 32,0% in
the period and revenue from Santova Express (Courier services)
grew by 16,9%.
OPERATIONAL PERFORMANCE
South African Logistics Operations
The South African logistics operation achieved a credible and pleasing
29,2% increase in profit for the period, which is counterintuitive
to the current economic climate and sentiment within the region. This
was driven by greater operational volumes, much improved margins and
sound operational cost control, offset by the 12,3% strengthening in
the South African Rand to US Dollar exchange rate, which has a direct
underlying adverse impact on revenue.
Foreign Logistics Operations
The current period was characterised by significant organic growth
in profit from the Group’s offshore logistics operations, which was
primarily driven by positive growth in billings in local currency
across all regions. The underlying result being that the majority
of the Group’s international operations have shown robust growth
in local currency profits for the period, in particular:
Santova Hong Kong, where the strong performance in the previous
financial year continued to generate a 47,4% increase in revenue
and a 190,1% increase in profit for the period;
Tradeway Shipping, where there had been no impact of Brexit on
trade volumes and the weak Pound has stimulated exports resulting
in a 23,7% increase in revenue and a 57,6% increase in profit;
and
Santova Germany, where revenue grew 58,1% and profit 334,0% as
the Group continued to invest and grow in this region - a trend
that is expected to result in this region becoming a long term
meaningful contributor to the Group’s earnings.
Group Operations
At a Group reporting level, the growth in profitability achieved in
this period was enhanced by:
A decline of 32,4% in Group finance costs as the Group continue
the ongoing repayment of its amortising long-term loans;
A 2,5% decrease in the effective tax rate from 26,7% in 2016 to
24,2% in 2017. This is due to the greater contribution towards
profit from certain key offshore subsidiaries that operate in
lower corporate tax rate jurisdictions and also the benefit of an
official 1% decrease in the United Kingdom corporate tax rate;
and
Following the acquisition at the beginning of the current period
of the remaining 25% minority interest in Santova Australia, the
Group profit attributable to minority shareholders has reduced
96,8%, which has helped to leverage upwards the basic and
headline earnings per share achieved during the period.
FINANCIAL POSITION
The Group’s financial position has strengthened in the 6 months to
31 August 2017 compared to 28 February 2017 with total assets having
grown by 6,2%, total capital and reserves by 7,4% whilst total
interest-bearing debt reduced by 10,7% through ongoing repayments.
The net result being that the debt to equity ratio has fallen from
53,0% as at 28 February 2017 to 45,7% as at 31 August 2017. This has
been driven by the strong underlying organic growth and the resultant
profitability, plus a slight improvement in the closing South African
Rand exchange rate to most major currencies since 28 February 2017 -
which had a positive impact on the translation of the Group’s foreign
investments.
One key fundamental structural change to highlight in the statement
of financial position is the almost virtual elimination of minority
interests which have decreased R7,1 million to R0,07 million following
the purchase of the remaining 25% minority interest in Santova Australia.
CASH FLOW AND FUNDING
The Group continues to generate positive cashflows through improved
profitability and from the financial year ended 28 February 2017,
cash on hand has increased 6,5% to R97,8 million. This improved
cash position is despite a significant investment into working
capital to fund increased trade receivables as operational volumes
improved in the second half of this interim period. This increased
investment into trade receivables had the effect of reducing cash
generated from operations by 13,5% to R31,3 million compared to
the corresponding prior reporting period.
The positive cash generated from operations has, over and above
the payment of the final 2017 dividend, been applied during the
period to R4,1 million in capital expenditure on the refurbishment
and upgrading of infrastructure internationally, R2,0 million in
continued investment into the development of TradeNav® and a
further R6,1 million in repayment of long term debt.
OUTLOOK
The Group will continue to build on the platform set by the strong
organic growth achieved in the first half of the financial year
whilst also continuing to seek new investment opportunities in key
regions internationally. The diversification across geographies,
currencies and business activities are conducive to sustainable
quality earnings going forward. Whilst difficult to forecast in
this complex economic climate, the Board is optimistic that the
Group can continue to achieve meaningful growth in profits in
the second half of the 2018 financial year.
For and on behalf of the Board
WA Lombard GH Gerber
Chairman Chief Executive Officer
30 October 2017
CONDENSED STATEMENT OF PROFIT AND
LOSS AND OTHER COMPREHENSIVE INCOME
Unaudited Audited
6 months to 6 months to 12 months to
31 August 31 August 28 February
2017 2016* 2017
Notes R’000 R’000 R’000
Gross billings 1 972 887 2 000 612 4 073 868
Revenue 150 062 152 274 299 034
Net interest income 8 116 7 498 16 381
Interest and
financing fee
income recovered
from clients 18 184 19 252 38 923
Interest and
financing fee
expenses incurred (10 068) (11 754) (22 542)
Revenue after net
interest income 2 158 178 159 772 315 415
Other income 5 794 10 755 22 765
Depreciation and
amortisation (1 494) (2 129) (5 921)
Administrative
expenses (115 971) (123 056) (235 476)
Operating profit 46 507 45 342 96 783
Interest received 145 124 427
Finance costs (3 365) (4 977) (9 187)
Profit before taxation 43 287 40 489 88 023
Income tax expense (10 494) (10 826) (23 403)
Profit for the period/
year 32 793 29 663 64 620
Attributable to:
Equity holders of
the parent 32 771 28 988 62 791
Non-controlling
interest in
subsidiaries 22 675 1 829
Other comprehensive income
Exchange differences
arising from translation
of foreign operations 10 229 (40 898) (78 840)
Net actuarial loss on
remeasurement of post-
retirement medical aid
benefit liability - - (62)
Total comprehensive
income/(loss) 43 022 (11 235) (14 282)
Attributable to:
Equity holders of
the parent 43 001 (11 629) (15 216)
Non-controlling
interests in
subsidiaries 21 394 934
Basic earnings
per share (cents) 20,71 18,43 39,87
Diluted basic
earnings per share 3 (cents) 20,11 17,96 38,53
Dividends per share (cents) N/A N/A 6,25
* Restated due to material prior period error (refer to note 2)
CONDENSED STATEMENT OF FINANCIAL POSITION
Unaudited Audited
31 August 31 August 28 February
2017 2016 2017
Notes R’000 R’000 R’000
ASSETS
Non-current assets 219 981 236 767 213 265
Property, plant
and equipment 21 426 21 748 18 540
Intangible assets 4 185 887 200 850 178 494
Financial assets 6 3 545 4 903 6 332
Deferred taxation 9 123 9 266 9 899
Current assets 731 649 693 520 682 807
Trade receivables 578 165 535 783 539 111
Other receivables 55 211 55 454 51 463
Current tax receivable 485 1 317 453
Financial assets 6 - 302 -
Cash and cash
equivalents 97 788 100 664 91 780
Total assets 951 630 930 287 896 072
EQUITY AND LIABILITIES
Capital and reserves 5 392 447 367 726 365 567
Non-current liabilities 32 065 65 759 38 930
Interest-bearing
borrowings 7 30 640 47 130 36 552
Long-term provision 1 425 1 500 1 425
Financial liabilities 6 - 15 832 -
Deferred taxation - 1 297 953
Current liabilities 527 118 496 802 491 575
Trade and other
payables 232 675 224 123 205 464
Current tax payable 5 318 8 659 4 001
Current portion of
interest-bearing
borrowings 7 20 361 19 513 20 541
Amounts owing to
related parties 244 275 246
Financial liabilities 6 27 883 16 452 15 135
Short-term borrowings
and overdraft 226 058 213 166 228 380
Short-term provisions 14 579 14 614 17 808
Total equity and
liabilities 951 630 930 287 896 072
CONDENSED STATEMENT OF CHANGES IN EQUITY
Unaudited Audited
31 August 31 August 28 February
2017 2016 2017
R’000 R’000 R’000
CAPITAL AND RESERVES
Balance at beginning
of period/year 365 567 386 415 386 415
Total comprehensive
income/(loss) 43 022 (11 235) (14 282)
Treasury shares acquired (49) - (633)
Share-based equity reserve 1 012 1 175 2 448
Shares issued in terms of
exercise of share options 232 26 273
Costs to issue securities - (1) -
Dividends paid (6 066) (8 654) (8 654)
Acquisition of minority
Interest (11 271) - -
Balance at end of
period/year 392 447 367 726 365 567
Comprising:
Stated capital 218 931 214 126 214 625
Equity compensation reserve 5 966 4 176 5 185
Treasury Shares (1 679) (998) (1 631)
Foreign currency
translation reserve (5 672) 21 428 (15 901)
Accumulated profit 174 832 122 362 156 117
Attributable to equity
holders of the parent 392 378 361 094 358 395
Non-controlling interests 69 6 632 7 172
Capital and reserves 392 447 367 726 365 567
CONDENSED STATEMENT OF CASH FLOWS
Unaudited Audited
6 months to 6 months to 12 months to
31 August 31 August 28 February
2017 2016* 2017
R’000 R’000 R’000
Cash generated from
operations 31 343 36 255 90 080
Interest received 145 124 427
Finance costs (2 910) (3 913) (7 337)
Taxation paid (9 386) (9 349) (26 696)
Net cash flows from
operating activities 19 192 23 117 56 474
Cash outflows from the
acquisition of subsidiaries - (12 410) (24 077)
Plant, equipment and
intangible assets acquired (6 072) (1 874) (4 876)
Proceeds on disposals of
plant, equipment and
intangible assets 386 86 877
Net cash flows from
investing activities (5 686) (14 198) (28 076)
Borrowings repaid (6 092) (9 785) (18 829)
Issue of shares for cash 233 24 273
Dividends paid (6 066) (8 654) (8 654)
Cash utilised in other
financing activities (19) (27) (689)
Net cash flows from
financing activities (11 944) (18 442) (27 899)
Net increase/(decrease) in
cash and cash equivalents 1 562 (9 523) 499
Difference arising on
translation 4 375 (15 509) (31 619)
Cash and cash equivalents at
beginning of period/year 91 780 123 657 122 892
Cash and cash equivalents
at end of period/year 97 717 98 625 91 772
Cash and cash equivalents is made up as follows:
Cash and cash equivalents
on hand 97 788 100 664 91 780
Less: Bank overdrafts (71) (2 039) (8)
Cash and cash equivalents
at end of period/year 97 717 98 625 91 772
* Restated due to material prior period error (refer to note 2)
CONSOLIDATED SEGMENTAL ANALYSIS
Logistics Financial Head Consoli-
Services Services Office dated
R’000 R’000 R’000 R’000
BUSINESS SEGMENTS
31 August 2017
Revenue after net
interest income 153 783 4 767 (372) 158 178
Operating profit 45 760 1 808 (1 061) 46 507
Profit/(loss) for the
period 34 660 1 876 (3 743) 32 793
Total assets 847 849 14 119 89 662 951 630
Total liabilities 537 710 936 20 537 559 183
Depreciation and
Amortisation 1 262 38 194 1 494
Capital expenditure 6 014 - 58 6 072
31 August 2016 *
Revenue after net
interest income 154 608 5 651 (487) 159 772
Operating profit 37 585 2 207 5 550 45 342
Profit for the period 27 154 2 024 485 29 663
Total assets 787 504 12 318 130 465 930 287
Total liabilities 522 586 1 399 38 576 562 561
Depreciation and
amortisation 1 390 37 702 2 129
Capital expenditure 638 32 1 205 1 875
* Restated due to material prior period error (refer to note 2)
LOGISTICS SERVICES
Europe and
Asia United
Africa Pacific Kingdom TOTAL
R’000 R’000 R’000 R’000
GEOGRAPHICAL SEGMENTS
31 August 2017
Revenue after net
interest income 66 288 15 855 71 640 153 783
Operating profit 17 754 6 219 21 787 45 760
Profit for the period 12 501 5 073 17 086 34 660
Total assets 520 458 62 177 265 214 847 849
Total liabilities 375 201 32 624 129 885 537 710
Depreciation and
amortisation 837 108 317 1 262
Capital expenditure 425 1 045 4 544 6 014
31 August 2016*
Revenue after net
interest income 65 242 15 581 73 785 154 608
Operating profit 13 989 5 067 18 529 37 585
Profit for the period 9 097 3 819 14 238 27 154
Total assets 489 390 58 252 239 862 787 504
Total liabilities 371 448 18 062 133 076 522 586
Depreciation and
amortisation 919 96 375 1 390
Capital expenditure 429 51 158 638
* Restated due to material prior period error (refer to note 2)
SUPPLEMENTARY INFORMATION
1. BASIS OF PREPARATION
The unaudited condensed consolidated interim financial
statements for the six months ended 31 August 2017 have been
prepared and presented in accordance with the framework
concepts and the measurement and recognition requirements of
International Financial Reporting Standards (“IFRS”), the SAICA
Financial Reporting Guides as issued by the Accounting
Practices Committee, and Financial Reporting Pronouncements as
issued by the Financial Reporting Standards Council, the
listings requirements of the JSE Limited, the information as
required by IAS 34: Interim Financial Reporting, and the
requirements of the South African Companies Act 71 of 2008.
The accounting policies applied in preparation of these
interim financial statements are consistent with those
applied in the annual financial statements for the year
ended 28 February 2017.
This report was prepared under the supervision of the Group
Financial Director, DC Edley, CA(SA) and have not been reviewed
or audited by the Group’s external auditors.
Unaudited Audited
31 August 31 August 28 February
2017 2016 2017
R’000 R’000 R’000
2. REVENUE
Gross Billings 1 972 887 2 000 612 4 073 868
Less: Recoverable
disbursements (1 814 709) (1 840 840) (3 758 453)
Revenue after net
interest income 158 178 159 772 315 415
Revenue from the
provision of
services comprises: 150 062 152 244 299 034
Logistics services 145 667 148 110 290 295
Insurance commission
and management fees 4 395 4 126 8 624
Other revenue - 8 115
Net interest income from
the provision of credit
facilities comprises: 8 116 7 528 16 381
Interest and financing
fee income recovered
from clients 18 184 19 252 38 923
Interest and financing
fee expenses incurred (10 068) (11 724) (22 542)
Revenue after net
interest income 158 178 159 772 315 415
Correction of material prior period error
As a result of an IFRS related material prior period error identified
during the course of the 2017 financial year, the comparative figures
for the six months to 31 August 2016 are required to be restated.
Full details of this correction and the reasons for the restatement
can be found in the Revenue note 16 contained in the published Annual
Financial Statements for the year ended 28 February 2017.
The effect of the restatement on the 2016 financial results can be
seen below and has no impact on basic and/or diluted earnings per share:
Restated
31 August 31 August
2016 2016*
R’000 R’000
Revenue 152 244 159 772
Net interest income 7 528 -
Interest and financing fee income
recovered from clients 19 252 -
Interest and financing fee expenses
incurred (11 724) -
Revenue after net interest income 159 772 159 772
* Restated due to material prior period error (refer to note 2)
Unaudited Audited
31 August 31 August 28 February
2017 2016 2017
R’000 R’000 R’000
3. EARNINGS PER SHARE
Reconciliation between
basic and headline
earnings per share:
Profit attributable
to equity holders of
the parent 32 771 28 988 62 791
Adjusted for:
Net (profit)/loss on
disposals of plant
and equipment (69) (56) 46
Taxation effects 37 10 (14)
Minority Interest - - (4)
Headline earnings 32 739 28 942 62 819
Basic earnings per
share (cents) 20,71 18,43 39,87
Headline earnings per
share (cents) 20,69 18,40 39,89
Weighted average number
of shares (000s) 158 265 157 317 157 495
Diluted weighted average
number of shares (000s) 162 984 161 390 162 975
The difference between earnings per share and diluted earnings
per share is due to the impact of share options that are yet to
vest under the Group’s share option schemes.
Unaudited Audited
31 August 31 August 28 February
2017 2016 2017
R’000 R’000 R’000
4. INTANGIBLE ASSETS
Goodwill Movement:
Carrying value at
beginning of period/year 173 656 217 472 217 472
Foreign exchange gain/
(loss) on translation 5 112 (22 401) (43 816)
Carrying value at end
of period/year 178 768 195 071 173 656
Carrying value of
Computer software and
indefinite useful life
intangible assets 7 119 5 779 4 838
Total intangible assets 185 887 200 850 178 494
Unaudited Audited
31 August 31 August 28 February
2017 2016 2017
R’000 R’000 R’000
5. STATED CAPITAL
Reconciliation of the
value of ordinary
shares in issue
Balance at beginning of
period/year 214 625 214 076 214 076
Shares issued under
share option scheme 465 51 553
Costs to issue securities - (1) (4)
Shares issued in terms
of scrip dividend 3 841 - -
Balance at end of
period/year 218 931 214 126 214 625
Reconciliation of the
number of ordinary
shares in issue ‘000 ‘000 ‘000
Balance at beginning of
period/year 157 760 157 287 157 287
Shares issued under
share option scheme 310 60 650
Shares issued in terms
of scrip dividend 1 212 - -
Treasury shares purchased
by subsidiaries (15) - (177)
Balance at end of
period/year 159 267 157 347 157 760
Unaudited Audited
31 August 31 August 28 February
2017 2016 2017
Level Notes R’000 R’000 R’000
6. FAIR VALUE
DISCLOSURE FOR
FINANCIAL
INSTRUMENTS
Financial
assets in the
statement
of financial
position
measured
at fair value:
Future profit
share on
rental agreement 2 1 1 992 1 228 1 991
Guardrisk cell
captive 2 2 1 553 3 675 4 341
Forward exchange
contracts 1 - 302 -
3 545 5 205 6 332
Financial
liabilities in
the statement
of financial
position measured
at fair value:
Contingent purchase
considerations
acquisitions on 3 3 16 175 32 284 15 093
Purchase
consideration
on acquisition 3 4 11 584 - -
Forward exchange
contracts 1 124 - 42
27 883 32 284 15 135
Hierarchy for fair value measurement
Fair value determination:
Level 1 - Quoted prices (unadjusted) in active markets for identical
assets or liabilities.
Level 2 - Inputs other than quoted prices included within level 1 that
are observable for the asset or liability, either directly or indirectly.
Level 3 - Inputs for the asset or liability that are not based on
observable market data.
There were no transfers between the fair value hierarchy levels during
the year.
1. Santova Logistics (South Africa) entered into a profit sharing
agreement with the landlord of their Durban premises on
inception of the lease in the 2007 financial year. This
agreement gives Santova Logistics a specified portion of the
actual or deemed profit made should the building be sold or
vacated. The inputs used to determine the fair value of the
profit share are as follows:
Current net market rental R110 per m2
Capitalisation rate 15,00 %
2. This amount represents the fair value of the investment by
Santova Logistics (South Africa) in the Guardrisk cell captive,
recognised as a financial asset with changes in fair value
being recognised in profit or loss for the year. The fair value
of the cell captive is determined by the net asset value that
represents fair value.
3. This represents the present value of the remaining contingent
purchase obligations arising from acquisitions during previous
financial periods. The fair value of the liabilities has been
calculated as the net present value of the warranty payments,
which management reasonably expect to be achieved, as set out
in the agreements of sale, discounted at the weighted average
cost of capital for the acquired entities. The financial
liability can be reconciled as follows:
Unaudited Audited
31 August 31 August 28 February
2017 2016 2017
R’000 R’000 R’000
Financial liability at
beginning of period/year 15 093 49 134 49 134
Interest on present
value calculation 496 1 105 1 849
Foreign exchange loss/(gain)
on translation 586 (5 545) (9 930)
Payments made during the
period/year - (12 410) (24 074)
Fair value gain on
remeasurement - - (1 886)
Financial liability at
end of period/year 16 175 32 284 15 093
The remaining contingent purchase obligations relate to the
following acquisitions that were completed during the 2016
financial year:
Acquiring company Target company Discount rate used
Santova International Tradeway (Shipping) 6,6%
Holdings (Pty) Ltd Limited
Prior to the acquisition of Tradeway (Shipping) Limited, the
target company acquired Tradeway North West Limited. This
acquisition gave rise to a financial liability as a result of
contingent purchase obligations. The weighted average cost of
capital used in the calculation of the fair value of this
financial liability is equal to that being used to calculate
the fair value of the financial liability to the sellers of
Tradeway (Shipping) Limited.
The final warranty payment is payable within 60 days of
30 November 2017.
4. The financial liability raised represents the amount owing
following the acquisition of the 25% minority interest in
Santova Logistics Pty Ltd (Australia) by Santova International
Holdings (Pty) Ltd. This amount is not contingent on any future
performance and the full amount will be settled from cash
reserves. The acquisition has been concluded but as at
31 August 2017 was pending final completion and the transfer of
the purchase consideration.
Management have assessed the sensitivity of the level 3 fair
value measurement to changes in unobservable inputs and do not
believe that such reasonably expected changes would materially
affect the fair value.
Management have assessed the degree of classification of the
liabilities within level 3 and are satisfied that the
classification above is appropriate due to the fact that these
liabilities are measured using the same methods and thus do not
have varying degrees of uncertainty or subjectivity.
There were no other material adjustments to fair values of
financial instruments nor transfers between the fair value
hierarchy levels during the period.
Unaudited Audited
31 31 28
Instal- August August February
Repay- ment 2017 2016 2017
able Rate R’000 R’000 R’000 R’000
7. INTEREST BEARING BORROWINGS
Medium Monthly Prime
term loan less
(R39 million)1 0,5% 813 4 864 13 664 9 324
Medium Quarterly Prime
term loan less
(R60 million)2 0,25% 3 874 45 865 52 184 47 185
Instalment
sale and
other
agreements 272 795 584
51 001 66 643 57 093
Debt to Equity Ratio 46% 49% 53%
1. The original medium term loan was taken by Santova Logistics
(South Africa) and bears interest at a variable rate of the
Nedbank prime rate less 0,5%.
2. The second medium term loan was taken by the holding company,
Santova Limited in order to fund a portion of the purchase
price payable for the acquisition of Tradeway (Shipping)
Limited and bears interest at a variable rate of the Nedbank
prime rate less 0,25%. Both medium term loans are repayable on
an amortising basis over five years and are secured by cross
company sureties supplied by subsidiary companies.
As a condition of granting the medium term loan facilities, the
Group banking facilities contain certain covenants with respect
to minimum levels of actual shareholders’ funds and to minimum
ratios of debt to EBITDA and interest cover. These covenants
are, monitored on an ongoing basis by management and reviewed
and confirmed annually with the Groups bankers. As at the end
of the period, none of the covenants have been breached.
8. EVENTS AFTER THE REPORTING PERIOD
There are no events that have taken place after the reporting
period for which non-disclosure would affect the ability of the
users to make proper evaluations and decisions.
CORPORATE INFORMATION
SANTOVA LIMITED
Country of incorporation
Republic of South Africa
Registration number
1998/018118/06
Share code
SNV
ISIN
ZAE000159711
NATURE OF BUSINESS
International logistics solutions provider
DIRECTORS
Independent Non-Executive Directors
WA Lombard (Chairman)
AD Dixon
ESC Garner
EM Ngubo
Executive Directors
GH Gerber (Chief Executive Officer)
DC Edley (Group Financial Director)
AL van Zyl
COMPANY SECRETARY
JA Lupton, FCIS
Highway Corporate Services (Pty) Ltd
PO Box 1319, Hillcrest, 3650
JSE SPONSOR
River Group
Unit 2, 211 Kloof Street, Waterkloof, Pretoria 0145
GROUP AUDITOR
Deloitte & Touche
PO Box 243, Durban, 4000
SHARE REGISTRAR
Computershare Investor Services (Pty) Ltd
PO Box 61051, Marshalltown, 2107
LEGAL ATTORNEY
Livingston Leandy Inc
PO Box 4107, Umhlanga Rocks, 4320
INVESTOR RELATIONS
Contact Persons
GH Gerber (Chief Executive Officer)
DC Edley (Group Financial Director)
Email Address investor@santova.com
Contact number
+27 31 374 7000
SANTOVA HEAD OFFICE AND REGISTERED OFFICE
Physical address
Santova House, 88 Mahatma Gandhi Road Durban, 4001
Postal address
PO Box 6148, Durban, 4000
Contact number
+27 31 374 7000
CORPORATE BANKERS
Nedbank Limited
PO Box 1144, Sandown, 2196
A Specialist Provider of Innovative Global Trade Solutions.
Santova’s diversification in terms of geographies, currencies,
industries, products and services enables it to manage a
global network of inter-connected activities for multinational
organisations from origin to point-of-consumption.
This diversification also enables it to hedge against unexpected
‘regional risks’ whilst at the same time allowing it to capitalise
on opportunities that may present themselves globally.
Santova House
88 Mahatma Gandhi Road
Durban, 4001
Tel: +27 31 374 7000
Email: enquiries@santova.com
www.santova.com
Durban
30 October 2017
Sponsor and Corporate Advisor
River Group
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