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SEA HARVEST GROUP LIMITED - Audited Summarised Consolidated Annual Financial Results For The Year Ended 31 December 2017

Release Date: 06/03/2018 08:00
Code(s): SHG     PDF:  
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Audited Summarised Consolidated Annual Financial Results For The Year Ended 31 December 2017

Sea Harvest Group Limited  
(Formerly Sea Harvest Holdings Proprietary Limited)
(Incorporated in the Republic of South Africa)
Registration number: 2008/001066/06
JSE Code: SHG 
ISIN: ZAE000240198
"Sea Harvest" or "the Company" or "the Group"

AUDITED SUMMARISED CONSOLIDATED ANNUAL FINANCIAL RESULTS
FOR THE YEAR ENDED 31 DECEMBER 2017

HIGHLIGHTS

REVENUE                         EBIT
UP 10%                          UP 53%
to R2.13bn                      to R383m 
2016: R1.93bn                   2016: R250m

PROFIT AFTER TAX                HEPS
UP 103%                         UP 91%
to R267m                        to 108c per share
2016: R132m                     2016: 56.4c per share

COMMENTARY

Overview

Key performance indicators
                                                                        Year ended           Year ended
                                                                  31 December 2017  31 December 2016(3)
Revenue (R'000)                                                           2 131 054            1 931 979
International revenue mix                                                      61%                   59%
Gross profit (R'000)                                                       716 790               605 458
Gross profit margin                                                            34%                   31%
Earnings before net finance costs and taxation (EBIT) (R'000)              382 793               250 188
EBIT margin                                                                    18%                   13%
Profit for the year (R'000)                                                266 945               131 514
Earnings per share (cents)(1)                                                119.0                  86.4
Headline earnings (R'000)                                                  235 317                80 142
Headline earnings per share (cents)(1)                                       108.0                  56.4
Net asset value per share (cents)(1)                                         582.4                 365.6
ZAR: Euro average exchange rate(2)                                           14.95                 16.19
ZAR: AUD average exchange rate(2)                                            10.27                 10.98
Closing share price (cents)                                                  1 250                     -

(1) Prior year shares in issue adjusted for 1:6 share consolidation.
(2) Average spot exchange rate at which sales were recorded.
(3) Mareterram Limited consolidated from 1 July 2016.

Trading and Financial performance

Following the listing on 23 March 2017 Sea Harvest successfully placed 106 333 334 ordinary shares at a
price of R12.50 per share, raising R1.2 billion of capital.

Sea Harvest Group delivered earnings before interest and tax of R383 million and profit after tax of
R267 million for the year ended 31 December 2017, an increase of 53% and 103% respectively on the same
period last year, benefiting from the improved performance of its South African operations as a result of
strong market demand and exceptional performance of the Saldanha Bay factories.

Group revenue for the year increased by 10% to R2.1 billion (2016: R1.9 billion). Continued strong global
demand for high value, sustainably certified, wild caught seafood with limited supply is driving strong
pricing across all channels and markets, partially offsetting the impact of the stronger Rand.

The Group delivered gross profit for the year of R717 million (2016: R605 million) and the gross profit margin
improved to 34% (2016: 31%). The expansion in the gross profit margin was driven by efficiency gains as a
result of investments in factory freezer vessel capacity and land-based efficiency improvements, increased
export volumes mix and price increases which partially offset the impact of the stronger Rand.

Other operating income increased to R75 million (2016: R32 million) mainly due to foreign exchange gains.

Operating expenses for the year increased by 4% to R458 million (2016: R440 million). Included in
2017 operating expenses were R21 million of costs relating to the restructure of the Group and listing
on the JSE. The 2016 operating expenses included foreign exchange losses and only six months
of Mareterram Limited's expenses. Adjusting for these, on a like-for-like basis, there were no
significant increases in operating expenses due to a continued focus on cost containment.

Earnings per share ("EPS") increased by 38% to 119 cents per ordinary share (2016: 86 cents) and
headline earnings per share ("HEPS") increased by 91% to 108 cents per ordinary share (2016:
56 cents). The improvements in both EPS and HEPS were driven by the improved performance
of the South African operations. The increase in earnings more than offset the dilutive impact of
the 54% increase in the weighted average number of shares.

South African Operations: South African operations include fishing of deep-sea Cape
Hake and related by-catch, the processing of the catch into fresh and frozen products and
sales into various channels both locally and internationally. South African sales volumes for
the year were 1% lower than 2016. The Total Allowed Catch reduced by 5% which directly
affected catch volumes. This reduction was largely offset by the Company's global sourcing
strategy. Export volumes increased by 4% resulting in exports accounting for 53% of sales
in value terms. The Rand strengthened by 8% across the currencies in which Sea Harvest trades
and export prices increased by 6% in real terms, largely offsetting the impact of the stronger Rand.
Revenue from the local South African market, which includes retail and foodservice, was 5%
higher than the prior year, driven by price inflation on fish of 9%. The continued challenging local 
retail environment impacted local volumes which were 4% lower compared to last year.

South African operations have benefited from the significant capital investments in the fleet and
factories over the past few years which has driven considerable growth in the higher margin export
business. Demand for Cape Hake remains firm, particularly in the EU and Australia.

Australian Operations: Mareterram Limited operations include fishing in the Shark Bay Prawn
Managed Fishery (SBPMF) for prawns, scallops, crabs and by-catch and the distribution of its own
product and other food products from domestic and international suppliers (including Sea Harvest) 
to customers in Australia and abroad.

Revenue for the year increased by 5% to R487 million (2016: R463 million). This growth was
driven by higher landings of prawns (up 11%) and scallops (up 51%). Prices on prawns, scallops and
crabs were well up on prior year and demand remained strong although the smaller size mix
negatively impacted average realisations.

Earnings before interest, tax, depreciation and amortisation ("EBITDA") was R30.9 million for the
year ended 31 December 2017, with profit after tax ("PAT") from operations of R15.3 million. This
compares to an EBITDA of R21 million and PAT of R3.2 million in the prior year.

Cash flow and Financial Position

The Group generated R430 million cash from its operations and invested R89 million in working
capital during the year, impacted by increased sales levels and VAT receivables.

During the year, the Group generated R345 million from financing activities. A portion of the capital
raised at listing of R1.2 billion was utilised to repay preference share capital and accrued
dividends, third party debt and shareholder loans. A R550 million revolving credit facility was
put in place post-listing, of which R180 million was drawn down to fund the acquisition of an
additional factory freezer vessel.

The Group utilised R369 million in investing activities during the year, most notably the strategic
investments in an additional factory freezer vessel and the fish processing factory in Saldanha Bay.

The Group ended the year with R383 million of cash on hand.

Driving transformation

As a c.80% black-owned business, driving transformation within the fishing industry and
uplifting the communities in which the Company operates is a non-negotiable for the Group.
The Group devotes considerable resources to employee skills development and employment
equity, as well as projects that drive supplier and enterprise development, youth empowerment,
job creation and rural development. Sea Harvest is a level 2 BBBEE contributor with a score of 98.9
making it one of the most transformed businesses in the fishing sector.

Outlook

In South Africa, the Group expects to see a continued increase in the global demand for high
value, wild caught, MSC certified species such as Cape Hake, which will drive continued export
growth and price inflation, which, together with a consistent hedging policy, will seek to partially
limit the impact of continued Rand strength. Local volumes will continue to be under pressure as a
result of the challenging economic environment, but the impact of this on revenue is expected to
be partially offset by continued price inflation in the category.

On the supply side, export growth will be supported by the introduction of an additional
factory freezer vessel into the fleet, whose frozen-at-sea products are targeted towards
export markets. Strategic investments within the fish processing factory in Saldanha Bay during the
third quarter of 2018 will drive further production efficiencies.

In Australia, the Fishing Division continues to make significant headway in its vessel improvement
programme, designed to continually increase vessel reliability and efficiency. On 3 November
2017, Mareterram announced that it had acquired two mackerel packages, with fishing licences and
vessels successfully transferred in early 2018. The diversification into mackerel
fishing provides scale and a complementary revenue stream to the existing prawn, scallop and
crab fishing business and a further extension of the basket of high-value offerings from Mareterram's
Food Services Division.

The Group has a clear strategy and is focused on driving earnings growth through investments
within its existing operations, as well as through strategic acquisitions in both South Africa and
Australia. Good progress has been made on both fronts. The Group has announced it is in advanced
negotiations to acquire 51% of the shares of Viking Aquaculture and, as part of a BBBEE Consortium,
acquire 100% of the assets of Viking Fishing which would be transformational for the Group.

On behalf of the board

F Robertson                F Ratheb
Chairman                   Chief Executive Officer

6 March 2018

Cash dividend declaration

Notice is hereby given of dividend number 1. A gross full and final cash dividend amounting to 31 cents per
share, in respect of the year ended 31 December 2017, was declared on Tuesday, 6 March 2018, out of
current earnings. Where applicable, the deduction of dividends withholding tax at a rate of 20% will result
in a net dividend amounting to 24.8 cents per share.

The number of ordinary shares in issue at the date of this declaration is 251 362 907.

The Company's tax reference number is 9223/794/16/6.

Relevant dates are as follows:
Last day to trade cum dividend                       Tuesday, 10 April 2018
Commence trading ex dividend                         Wednesday, 11 April 2018
Record date                                          Friday, 13 April 2018
Dividend payable                                     Monday, 16 April 2018

Share certificates may not be dematerialised or re-materialised between Wednesday, 11 April 2018 and
Friday, 13 April 2018, both dates inclusive.

By order of the board

N Aston
Company secretary

6 March 2018

AUDITED CONSOLIDATED SUMMARISED STATEMENT OF COMPREHENSIVE INCOME
for the year ended 31 December 2017

                                                                                            Restated*
                                                                            Year ended      Year ended
                                                                           31 December     31 December
                                                                                  2017            2016
                                                                                 R'000           R'000
Revenue                                                                       2 131 054       1 931 979
Cost of sales                                                               (1 414 264)     (1 326 521)
Gross profit                                                                    716 790         605 458
Other operating income                                                           74 707          31 607
Selling and distribution expenses                                             (114 771)       (111 704)
Marketing expenses                                                             (15 166)        (13 372)
Other operating expenses                                                      (327 747)       (314 810)
Operating profit before associate and joint venture income                       333 813         197 179
Share of profit of joint venture and associate                                    1 000          13 369
Fair value gains                                                                 24 825               -
Gain on disposal of interest in joint venture                                    23 155               -
Gain on remeasurement of previously held interest
in associate                                                                          -          39 640
Operating profit before finance costs and taxation                               382 793         250 188
Investment income                                                                17 206           2 075
Interest expense                                                               (38 848)        (77 892)
Profit before taxation                                                          361 151         174 371
Taxation                                                                       (94 206)        (42 857)
Profit after taxation                                                           266 945         131 514
Profit after taxation attributable to:                                                                 
Shareholders of Sea Harvest Group Limited                                       259 344         121 876
Non-controlling interests                                                         7 601           9 638
                                                                                 266 945         131 514
Other comprehensive income                                                                             
Items that may be reclassified subsequently to profit
or loss:                                                                                               
Movement on cash flow hedging reserve                                           (20 224)          94 728
Exchange differences on translation of
foreign operations                                                              (11 576)        (45 945)
Items that may not be reclassified subsequently to profit
or loss:                                                                                               
Net measurement gain on defined benefit plan                                       1 625               -
Other comprehensive (loss)/income, net of tax                                   (30 175)          48 783
Total comprehensive income for the year                                          236 770         180 297
Total comprehensive income attributable to:                                                            
Shareholders of Sea Harvest Group Limited                                        233 403         186 670
Non-controlling interests                                                          3 367         (6 373)
                                                                                236 770         180 297
Earnings per share (cents)                                                                             
- Basic(1)                                                                        119.0            86.4
- Diluted(1)                                                                      114.7            75.0

*Please refer to note 3.
(1) Prior year shares in issue adjusted for 1:6 consolidation.

AUDITED CONSOLIDATED SUMMARISED STATEMENT OF FINANCIAL POSITION
at 31 December 2017

                                                                                             Restated*
                                                                            31 December     31 December
                                                                                   2017            2016
                                                                Notes             R'000           R'000
ASSETS                                                                                                
Non-current assets                                                                                    
Property, plant and equipment(1)                                                 808 192         541 513
Intangible assets                                                               489 805         501 334
Goodwill                                                                         84 220          86 033
Investment in joint venture                                                           -          21 845
Available-for-sale investment                                        6            25 264          25 264
Other financial assets                                               6            24 825           1 233
Loans to related parties                                             7            72 489           4 389
Loans to supplier partners                                                        1 959               -
Deferred tax assets                                                                 243          33 545
                                                                             1 506 997       1 215 156
Current assets                                                                                        
Inventories                                                                     304 001         291 758
Trade and other receivables                                                     332 578         282 750
Other financial assets                                               6            41 896          46 629
Tax assets                                                                            -           6 370
Cash and bank balances                                                          383 047         154 404
                                                                             1 061 522         781 911
Total assets                                                                  2 568 519       1 997 067

(1) Additions to property, plant and equipment include the acquisition of a new freezer vessel which amounted 
    to R214.4 million at the end of the year.

*Please refer to note 3.
                                                                                             Restated*
                                                                            31 December     31 December
                                                                                   2017            2016
                                                                Notes             R'000           R'000
EQUITY AND LIABILITIES                                                                                
Capital and reserves                                                                                  
Stated capital                                                       8         1 294 875             849
Preference share capital and premium                                                  -         368 409
Other reserves                                                                 (71 476)          16 030
Retained earnings                                                               174 267         132 116
Attributable to shareholders of the Parent                                    1 397 666         517 404
Non-controlling interests                                                       168 313         152 043
                                                                             1 565 979         669 447
Non-current liabilities                                                                               
Long-term interest-bearing borrowings                                           315 825         371 917
Loans from related parties                                                            -          54 664
Employee related liabilities                                                     26 342          31 209
Deferred grant income                                                            12 110          13 733
Share-based payment liabilities                                                  18 789               -
Long-term other financial liabilities                                6            59 348          82 450
Deferred taxation                                                               205 277         242 851
Shareholders for dividends                                                            -         135 404
                                                                               637 691         932 228
Current liabilities                                                                                   
Short-term interest-bearing borrowings                                           31 298          52 536
Trade and other payables                                                        269 356         291 568
Deferred grant income                                                              1 505           1 551
Short-term other financial liabilities                               6            20 848          21 121
Provisions                                                                       30 980          17 843
Shareholders for dividends                                                            -           2 431
Tax liabilities                                                                  10 862           8 342
                                                                               364 849         395 392
Total equity and liabilities                                                  2 568 519       1 997 067

*Please refer to note 3.

AUDITED CONSOLIDATED SUMMARISED STATEMENT OF CHANGES IN EQUITY
for the year ended 31 December 2017
                                                                                             Restated*
                                                                              Year ended     Year ended
                                                                             31 December    31 December
                                                                                    2017           2016
                                                                                   R'000          R'000
Balance at the beginning of the year                                              669 447        130 092
Attributable to:                                                                                         
Shareholders of Sea Harvest Group Limited                                         517 404        130 092
Non-controlling interests                                                         152 043              -
Total comprehensive income for the year attributable to
shareholders of Sea Harvest Group Limited                                         233 405        186 670
Profit after taxation                                                             259 344        121 876
Movements in other items of comprehensive (loss)/income, net
of tax                                                                           (25 939)         64 794
Movements attributable to shareholders of Sea Harvest
Group Limited                                                                                            
Shares issued(1)                                                                1 294 047              -
Recognition of forfeitable share plan reserve(2)                                 (55 000)              -
Preference shares issued                                                                -        200 000
Redemption of preference shares                                                 (368 409)              -
Distributions to participants of share trusts and repurchase
of shares                                                                       (218 771)              -
Recognition of treasury shares                                                          -        (4 308)
Share-based payments                                                               15 178          4 950
Transfer to share-based payment liabilities (modification)(3)                    (19 789)              -
Further acquisition of investment in subsidiary                                     (399)              -
Movement attributable to non-controlling interests                                 16 270        152 043
Balance at the end of year                                                      1 565 979        669 447

*Please refer to note 3.

(1)  Following the listing on 23 March 2017, Sea Harvest successfully placed 101 933 269 ordinary shares (excluding shares 
     referred to in footnote 3) at a price of R12.50 per share. Listing costs of R35.1 million were charged against equity.
(2)  4 400 065 shares were awarded to key Sea Harvest employees in terms of a long-term Forfeitable Share Plan ("FSP") incentive scheme and
     R55 million representing the market value of the shares was debited to a reserve and credited to stated capital.
(3)  During the year, The Sea Harvest Management Investment Trust No.2 and the Sea Harvest Employee Share Trust were reclassified from
     equity-settled share-based payment schemes to cash-settled share-based payment schemes. The IFRS 2 calculated liability was raised and debited
     to the equity-settled share-based payment reserve at the reclassification date.

AUDITED CONSOLIDATED SUMMARISED STATEMENT OF CASH FLOWS
for the year ended 31 December 2017
                                                                             Year ended      Year ended
                                                                            31 December     31 December
                                                                                   2017            2016
                                                                                  R'000           R'000
Operating activities                                                                                  
Profit after taxation                                                            266 945         131 514
Adjustments for non-cash and other items                                         163 296         185 901
Operating cash flows before changes in working capital                           430 241         317 415
Increase in inventories                                                         (14 255)        (20 577)
(Increase)/decrease in trade and other receivables                              (53 547)          32 252
Decrease in trade and other payables                                            (21 448)           (672)
Cash generated from operations                                                   340 991         328 418
Investment income received                                                        17 206           2 075
Interest paid                                                                   (25 544)        (50 943)
Income tax paid                                                                 (80 011)        (30 310)
Net cash generated from operating activities                                     252 642         249 240
Investing activities                                                                                  
Acquisition of investment in subsidiary                                                -       (195 990)
Proceeds from disposal of property, plant and equipment                            2 855           3 830
Acquisition of property, plant and equipment                                   (369 876)       (107 449)
Acquisition of intangible assets                                                 (1 526)         (3 164)
Net cash utilised in investing activities                                      (368 547)       (302 773)
Financing activities                                                                                  
Shares issued, net of listing costs                                            1 239 025               -
Proceeds on the issue of C class preference shares                                     -         200 000
Redemption of B and C preference share capital                                 (368 409)               -
Settlement of B and C preference dividends                                     (144 269)               -
Repayment of borrowings                                                        (332 024)        (55 806)
Proceeds from borrowings                                                         257 968               -
Amounts advanced to related parties                                             (80 194)           (103)
Repayments of financial liabilities                                             (22 256)        (12 519)
Repurchase of shares and distributions to participants of
share trusts                                                                   (218 771)               -
Rights issue in subsidiary                                                        14 971               -
Further investment in subsidiary                                                 (1 479)               -
Net cash generated from financing activities                                     344 562         131 572
Net increase in cash and cash equivalents                                        228 657          78 039
Cash and cash equivalents at the beginning of the year                           154 404          76 418
Effects of exchange rates on the balance of cash held in
foreign operation                                                                   (14)            (53)
Cash and cash equivalents at the end of the year                                 383 047         154 404

FURTHER INFORMATION

1.  BASIS OF PREPARATION

    The summarised consolidated financial statements are derived from the consolidated financial
    statements, approved by the directors on 6 March 2018. They are prepared in accordance with the
    requirements of the JSE Limited Listings Requirements for preliminary reports, and the requirements
    of the Companies Act of South Africa applicable to summarised consolidated financial statements.
    The Listings Requirements require preliminary reports to be prepared 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 the Financial Pronouncements as issued by the Financial Reporting
    Standards Council, and to also, as a minimum, contain the information required by IAS 34: Interim
    Financial Reporting. The accounting policies applied in the preparation of the consolidated financial
    statements, from which the summarised consolidated financial statements were derived, are in terms
    of IFRS and are consistent with those accounting policies applied in the preparation of the previous
    consolidated annual financial statements.

    The directors take full responsibility for the preparation of this report and that the financial 
    information has been correctly extracted from the underlying annual financial statements.

    The consolidated annual financial statements and the summarised consolidated financial statements
    have been prepared under the supervision of the Chief Financial Officer, JP de Freitas CA(SA).

2.  INDEPENDENT AUDITOR'S OPINION

    The auditors, Deloitte & Touche, have issued their opinion on the consolidated financial
    statements for the year ended 31 December 2017, as well as these summarised consolidated financial
    statements. The audit was conducted in accordance with International Standards on Auditing. They
    have issued an unmodified audit opinion. These summarised consolidated financial statements have
    been derived from the consolidated financial statements and are consistent in all material respects
    with those consolidated financial statements. Copies of their audit report on the consolidated financial
    statements and on these summarised consolidated statements, together with the consolidated
    financial statements are available for inspection at the company's registered office.

    The auditor's report does not necessarily report on all of the information contained in these financial
    results. Shareholders are therefore advised that in order to obtain a full understanding of the nature
    of the auditor's engagement they should obtain a copy of the auditor's report together with the
    accompanying financial information from the company's registered office.

    Any reference to future financial performance or prospects included in this announcement has not
    been audited or reported on by the company's auditors.

3.  RESTATEMENT OF THE FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016

    In the prior year, the Group acquired a 55.89% interest in Mareterram Limited, a fishing, fish processing
    and trading business situated on the Australian West Coast and listed on the Australian Stock Exchange.

    The initial accounting for the business combination in the prior year was prepared using provisional
    values as permitted in terms of paragraph 45 of IFRS 3 Business Combinations. Subsequent to the
    end of the prior reporting period the purchase price allocation was finalised within the measurement
    period, being a period not exceeding 12 months from the acquisition date in July 2016, and the
    provisional values adjusted in terms of paragraph 45 of IFRS 3.

    The audited financial results for the year ended 31 December 2016 have been restated for the
    finalisation of the purchase price allocation of the Mareterram Limited business combination.

    The adjustments to the prior year statement of financial position are summarised as follows:
    
                                                       Estimated
                                                      fair value
                                                      at time of                                    2016
                                                     acquisition                                   R'000
                                                          and as    Measurement     Exchange    Restated
    Assets acquired and                               previously         period         rate     closing
    liabilities assumed                                 reported    adjustments  differences     balance
    Property, plant and equipment                        105 723              -            -     105 723
    Intangible assets                                    310 918        157 648     (15 660)     452 906
    Deferred tax assets                                   30 181              -            -      30 181
    Financial derivative assets                              230              -            -         230
    Goodwill                                             115 722       (20 196)        2 006      97 532 
    Inventory                                            111 854              -            -     111 854
    Trade and other receivables                           85 240              -            -      85 240
    Cash and bank balances                                   131              -            -         131
    Current portion of financial
    derivative assets                                      1 566              -            -       1 566
    Long-term interest-bearing borrowings              (131 812)              -            -   (131 812) 
    Employee related liabilities                         (3 043)              -            -     (3 043)
    Fishing licence liability                           (89 542)              -            -    (89 542)
    Deferred tax liability                                     -      (121 512)       12 071   (109 441)
    Trade and other payables                            (60 684)              -            -    (60 684)
    Short-term interest-bearing borrowings              (25 027)              -            -    (25 027)
    Short-term fishing licence liability                (23 308)              -            -    (23 308)
    Current portion of financial
    derivative liabilities                                 (602)              -            -       (602)
    Non-controlling interest                           (137 546)      (15 940)         1 583   (151 903)
    Fair value of previously held interest              (94 011)              -            -    (94 011)
    Consideration paid in cash                           195 990              -            -     195 990 
    Net cash flow on acquisition of business                                                        
    Consideration paid in cash                           195 990              -            -     195 990
    Less cash and cash equivalent
    balances acquired                                      (131)              -            -       (131)
                                                         195 859              -            -     195 859
    Goodwill on acquisition                                                                         
    Consideration                                        195 990              -            -     195 990
    Less: Fair value of identifiable assets
    acquired and liabilities assumed                   (311 825)       (36 136)        3 589   (344 372)
    Plus: Fair value of previously held interest          94 011              -            -      94 011
    Plus: Non-controlling interest                       137 546         15 940      (1 583)     151 903
                                                        115 722       (20 196)        2 006      97 532

                                                                              NUMBER OF SHARES
                                                                          Year ended        Year ended
                                                                         31 December       31 December
                                                                                  2017           2016(1)
4.  HEADLINE EARNINGS PER SHARE                                                                       
4.1 CALCULATION OF WEIGHTED AVERAGE
    NUMBER OF ORDINARY SHARES                                                                        
    Weighted average number of shares on which earnings and
    headline earnings per share is based:                                  217 859 827       141 540 333
    Weighted average number of shares on which diluted
    earnings and diluted headline earnings per share is based:             226 173 525       162 400 333
    Reconciliation of weighted average number of shares
    between basic and diluted earnings per share and headline
    earnings and diluted headline earnings per share:                                                  
    Basic                                                                  217 859 827       141 540 333
    Dilutive instruments                                                     8 313 698        20 860 000
    Diluted                                                                226 173 525       162 400 333

                                                                           Year ended        Year ended
                                                                          31 December       31 December
                                                                                 2017              2016
                                                                                R'000             R'000
4.2 DETERMINATION OF HEADLINE EARNINGS                                                                   
    Profit after taxation attributable to shareholders of Sea
   Harvest Group Limited                                                      259 344           121 876
   Profit on disposal of property, plant and equipment                        (3 876)           (2 992)
    Gain on remeasurement of previously held interest
   in subsidiary                                                                    -          (39 640)
   Gain on disposal of interest in joint venture                             (23 155)                 -
   Total tax effects of adjustments                                             3 004               898
   Headline earnings for the year                                             235 317            80 142
   Headline earnings per share (cents)                                                                 
   - Basic                                                                      108.0              56.4
   - Diluted                                                                    104.0              49.2

    (1) Prior year shares in issue adjusted for 1:6 share consolidation.

                                                                                            Restated*
                                                                            Year ended      Year ended
                                                                           31 December     31 December
                                                                                  2017            2016
                                                                                 R'000           R'000
5.  SEGMENTAL RESULTS                                                                                   
    The Group's reportable segments under IFRS 8: Operating
    Segments, are the South African operations and the
   Australian operations.                                                                             
   Segment revenue                                                                                    
   South African Operations(1)                                                1 644 206       1 652 236
   Australian Operations                                                        486 848         279 743
   Total revenue                                                              2 131 054       1 931 979
   Segment profit from operations                                                                     
   South African Operations                                                     312 262         202 717
   Australian Operations                                                         21 551         (5 538)
    Operating profit before joint venture and
   associate profit                                                             333 813         197 179
   Fair value gains                                                              24 825               -
   Gain on disposal of interest in joint venture                                 23 155               -
    Gain on the remeasurement of previously held interest
   in subsidiary                                                                      -          39 640
   Share of profits of joint venture and associate                                1 000          13 369
   Investment income                                                             17 206           2 075
   Interest expense                                                            (38 848)        (77 892)
   Profit before taxation                                                       361 151         174 371
   Total assets                                                                                       
   South African Operations                                                   1 732 386       1 183 021
   Australian Operations                                                        836 133         814 046
                                                                             2 568 519       1 997 067
   Total liabilities                                                                                  
   South African Operations                                                     638 084         945 267
   Australian Operations                                                        364 456         382 353
                                                                             1 002 540       1 327 620

    (1) Revenue excludes the following inter-segmental revenues between South Africa and Australia which are 
        eliminated on consolidation: R100.9 million (2016:R 41.5 million)

    *Please refer to note 3.
                                                                        Year ended           Year ended
                                                                       31 December          31 December
                                                                              2017                 2016
                                                                             R'000                R'000
6.  OTHER FINANCIAL ASSETS AND LIABILITIES                                                             
   Financial derivative assets                                              66 721               47 862
   Non-current portion of financial assets                                  24 825                1 233
   Current portion of financial assets                                      41 896               46 629
   Other financial asset                                                                               
   Available-for-sale investment                                            25 264               25 264
   Financial derivative liabilities                                            130                2 698
   Liabilities held at fair value through profit or loss                         -                2 698
   Current portion of financial liabilities                                    130                    -
   Other financial liability                                                                           
   Fishing licence liability                                                80 066              100 873
   Non-current portion of financial liability                               59 348               82 450
   Current portion of financial liability                                   20 718               18 423

    FINANCIAL DERIVATIVE ASSETS AND LIABILITIES

    The current portion of financial assets and liabilities arises from hedging contracts entered into by
    the Group for the purpose of minimising the Group's exposure to foreign currency volatility. Hedging
    contracts are regarded as level 2 financial instruments for fair value measurement purposes. Level
    2 fair value measurements are those derived from inputs that are observable for the asset or liability,
    either directly (i.e. as prices) or indirectly (i.e. derived from prices).

    CALL OPTION DERIVATIVE

    The non-current portion of financial assets is a call option, entered into on 1 January 2017, to acquire
    100% of the shareholding in Vuna Fishing Company Proprietary Limited (joint venture of Brimstone
    Investment Corporation Limited) from Vuna Fishing Group Proprietary Limited (subsidiary of Brimstone
    Investment Corporation Limited). The fair value was independently determined by an expert using the
    Black-Scholes option pricing model. The 10 year call option financial asset which can be exercised
    at any time has been classified as a non-current asset at year-end due to the expected exercise date
    thereof exceeding 12 months from the reporting date. The call option is regarded as a level 3 financial
    instrument for fair value measurement purposes. Level 3 fair value measurements are those derived
    from valuation techniques that include inputs for the asset or liability that are not based on observable
    market data (unobservable inputs).

    Assumption sensitivity analysis

    The Group has performed a sensitivity analysis relating to its exposure to a change in the assumptions
    used in the valuation. The sensitivity analysis demonstrates the increase/(decrease) on the asset held
    at fair value through profit or loss which could result from a change in these assumptions.

                                                                               Year ended     Year ended
                                                                              31 December    31 December
                                                                                     2017           2016
                                                                                    R'000          R'000
    Vuna Fishing Company valuation                                                                      
    + 5%                                                                            2 061              -
    - 5%                                                                          (2 036)              -
    Yield Curve (7.910%)                                                                                
    + 5%                                                                            1 167              -
    - 5%                                                                            (975)              -
    Volatility (24.146%)                                                                                
    + 1%                                                                            1 435              -
    - 1%                                                                          (1 487)              -
    
    AVAILABLE-FOR-SALE INVESTMENT
    
    The Group holds 10% of the ordinary share capital of Desert Diamond Fishing Proprietary Limited,
    a company involved in the fishing and fishing processing industries. The directors of the Group do
    not consider that the Group is able to exercise significant influence over Desert Diamond Fishing
    Proprietary Limited.
    
    The Group reassesses the valuation of the available-for-sale investment annually, by using an asset
    valuation method performed by an independent valuator.
    
    The available-for-sale investment is regarded as a level 3 financial instrument. Level 3 fair value
    measurements are those derived from valuation techniques that include inputs for the asset or liability
    that are not based on observable market data (unobservable inputs).
    
    Assumption sensitivity analysis
    
    The Group has performed a sensitivity analysis relating to its exposure to a change in the assumptions
    used in the valuation. This sensitivity analysis demonstrates the increase/(decrease) on the available
    for sale investment which could result from a change in these assumptions.
    
                                                                              Year ended     Year ended
                                                                              31 December    31 December
                                                                                     2017           2016
                                                                                   R'000          R'000
    Desert Diamond vessel valuation                                                                    
    + 5%                                                                            1 263          1 263
    - 5%                                                                          (1 263)        (1 263)
    
    FISHING LICENCE LIABILITY
    
    The fishing licence liabilities relate to the Shark Bay Prawn Managed Fishery Voluntary Fisheries
    Adjustment Scheme (VFAS). The VFAS operates from 12 November 2010 until 1 July 2021. Mareterram
    Limited owns 10 fishing licences in the Shark Bay region. The liabilities shown represent present values
    discounted at the five-year Australian Corporate Bond rate. Fishing licence liabilities are carried at
    amortised cost.

                                                                         Year ended         Year ended
                                                                        31 December        31 December
                                                                               2017               2016
                                                                              R'000              R'000
7.  RELATED PARTY TRANSACTIONS                                                                         
7.1 RELATED PARTY LOANS                                                                  
    Loans to related parties                                                                              
    Vuna Fishing Company Proprietary Limited(1)                                27 420                  -
    Vuna Fishing Group Proprietary Limited(2)                                  45 069                  -
    The New Sea Harvest Management Investment Trust                                 -              4 389
    Total                                                                      72 489              4 389
    Loans from related parties                                                                            
    Brimco Proprietary Limited                                                      -             54 664
                                                                                   -             54 664
    Interest paid to related parties                                                       
    Brimco Proprietary Limited(3)                                              10 708                  -
   
    (1)  The Group extended a loan of R27 million to Vuna Fishing Company Proprietary Limited (joint
         venture of Brimstone Investment Corporation Limited) to enable the company to effect certain
         distributions to its shareholders.
    (2)  On 1 January 2017, the Group sold its 49.81% shareholding in Vuna Fishing Company Proprietary
         Limited to Vuna Fishing Group Proprietary Limited, a company in which Brimstone Investment
         Corporation Limited is the majority shareholder, for R45 million, on loan account.
    (3)  On 17 February 2017, prior to listing and as part of the Group restructure, all the issued B Redeemable
         Preference Shares and C Redeemable Preference Shares, including accrued preference share
         dividends, were redeemed and credited to a loan account which incurred interest at an after tax rate
         equal to the preference dividend rates. The loan and related interest was repaid on 24 March 2017.

                                                                          Year ended        Year ended
                                                                         31 December       31 December
                                                                                2017              2016
                                                                               R'000             R'000
7.2 RELATED PARTY TRANSACTIONS                                                            
   Sales to related parties                                                               
    SeaVuna Fishing Company Proprietary Limited
   (Joint venture of Brimstone Investment Corporation Limited)                 34 880            49 622
   Mareterram Limited (Associate until June 2016)                                   -            52 410
   Purchases from related parties                                                         
    SeaVuna Fishing Company Proprietary Limited
   (Joint venture until December 2016)                                        165 731           153 097
    
    On 1 January 2017, prior to listing and as part of the Group restructure, Sea Harvest Corporation
    Proprietary Limited entered into a supply agreement with Vuna Fishing Company Proprietary
    Limited ("Vuna") and SeaVuna Fishing Company Proprietary Limited ("SeaVuna") for a period of
    three years, which is extendable for another three years. Under the agreement fish caught by Vuna
    and SeaVuna is marketed by Sea Harvest Corporation Proprietary Limited.

                                                                         Year ended         Year ended
                                                                        31 December        31 December
                                                                               2017               2016
                                                                              R'000              R'000
7.3 REPURCHASE OF SHARES AND DISTRIBUTIONS
    TO PARTICIPANTS OF SHARE TRUSTS                                                      
    Prior to listing and as part of the Group restructure, the
   following shares were repurchased and cancelled:                                     
                                                                         Percentage             Amount
                                                                        repurchased              R'000
   Sea Harvest Management Investment Trust                                       100             54 474
   The Sea Harvest Management Investment Trust No.2                               75            128 121
   Sea Harvest Employee Share Trust                                               50             36 176
                                                                                              218 771

                                                                        Year ended          Year ended
                                                                       31 December         31 December
                                                                              2017                2016
8.  STATED CAPITAL (number)                                                                               
   In issue (number)                                                                                    
   Ordinary shares                                                      251 362 907         974 402 360
   Held as treasury shares                                             (11 389 304)       (125 160 360)
                                                                       239 973 603         849 242 000

    At 31 December 2017, the movement in stated capital is as follows:

                                                                       Total Shares     Total Net Shares
                                                                          In Issue             In Issue
    Opening balance                                                     974 402 360          849 242 000
    1:6 Share consolidation                                           (812 001 966)        (707 701 666)
    Shares repurchased and cancelled                                   (17 370 821)          (3 500 000)
    Shares issued                                                       106 333 334          101 933 269
    Closing balance                                                     251 362 907          239 973 603

9.  SHARE-BASED PAYMENTS

    The Group has two wholly-owned trusts which have been established as vehicles through which certain
    executives, senior management and employees have made an investment in or acquired an economic
    exposure to an investment in shares in the company. In March 2017 when the company listed it adopted
    a forfeitable share plan to attract, retain, incentivise and reward the right calibre of employees.


    SEA HARVEST MANAGEMENT INVESTMENT TRUST NO.2
    The Sea Harvest Management Investment Trust No. 2 was established as an investment vehicle for
    senior executives of Sea Harvest Corporation Proprietary Limited (subsidiary) to acquire shares in
    the Company.

    The fair value of the shares is estimated at the grant date using a finite difference pricing model,
    taking into account the terms and conditions on which the shares were granted.

    On 17 February 2017, prior to listing and as part of the Group restructure, the scheme was modified
    and 75% of the shares vested. 15% of the remaining shares will vest in 2019 and 10% in 2020. Following
    the vesting being settled in cash, the share scheme was also reclassified from equity-settled
    to cash-settled.

    SEA HARVEST EMPLOYEE SHARE TRUST
    
    The Sea Harvest Employee Share Trust, was established as an investment vehicle for employees of
    Sea Harvest Corporation Proprietary Limited (subsidiary) to acquire an economic exposure to an
    investment in shares in the Company.
    
    The fair value of the share incentives is estimated at the grant date using a finite difference pricing
    model, taking into account the terms and conditions on which the share incentives were granted.
    
    On 23 March 2017, on listing and as part of the Group restructure the scheme was modified and 50%
    of the shares vested. The remaining 50% of the shares will vest in 2022. Following the vesting being
    settled in cash, the share scheme was also reclassified from equity-settled to cash-settled.
    
    FORFEITABLE SHARE PLAN
    
    On 23 March 2017, the Group established a forfeitable share plan. In terms of the forfeitable share plan,
    executive directors and senior managers may be awarded performance, bonus and retention shares
    in the Group. The performance shares are linked to a requirement of continued employment over the
    prescribed period, the Group's performance and strategic, individual performance conditions which
    have to be met. Shares are granted to participants for no consideration. These shares participate in
    dividends and shareholder rights from grant date. The scheme is accounted for as an equity-settled
    share based payment scheme.
    
                                                               The Sea
                                                               Harvest          The Sea
                                                            Management          Harvest
                                                            Investment         Employee      Forfeitable
                                                           Trust No.2      Share Trust       Share Plan
    Grant date                                           31 March 2014    31 March 2014    23 March 2017
    Number of shares granted                                 8 257 898        4 258 138        4 400 065
    Fair value of shares at grant date (R'000)                   8 788            5 155           46 284
    Expiry date                                          31 March 2022    31 March 2022    23 March 2020
    
                                                               The Sea
                                                               Harvest          The Sea
                                                            Management          Harvest
                                                            Investment         Employee      Forfeitable
                                                          Trust No. 2      Share Trust       Share Plan
    Number of shares held at the beginning of
    the year                                                82 578 970       42 581 380                -
    1:6 Share consolidation                               (68 815 809)     (35 484 483)                -
    Shares repurchased and cancelled                      (10 322 371)      (3 548 448)                -
    Granted                                                          -                -        4 400 065
    Number of share held at the end of the year              3 440 790        3 548 449        4 400 065

10. CONTINGENT LIABILITIES AND COMMITMENTS

    The Group has no contingent liabilities at the end of the year (2016: nil).

                                                                        Year ended           Year ended
                                                                       31 December          31 December
                                                                              2017                 2016
    Capital commitments                                                                                  
    Budgeted capital expenditure is as follows:
    - contracted                                                            155 665                7 859
    - not contracted                                                        123 230                6 142
    Lease commitments                                                                                    
    - land and buildings                                                     24 456               57 522

    The increase in capital commitments predominantly consist of the new factory freezer vessel conversion 
    and further investment in the fish processing factory in Saldanha Bay.

11. DIVIDENDS

    The board of directors have declared a full and final cash dividend of 31 cents (2016: nil) per
    share on 6 March 2018 in respect of the year ended 31 December 2017.

12. EVENTS AFTER THE REPORTING DATE

    On 3 November 2017, Mareterram Limited announced to the market that it would be acquiring two
    mackerel licence packages in the Western Australia Mackerel Managed Fishery with associated fishing
    vessels for a combined purchase consideration of R47.78 million (AUD 4.95 million). The transaction
    was completed in January 2018, per the terms of the sale and purchase agreements.

    Other than as outlined above, there has not arisen in the interval between the end of the financial year
    and the date of this report any item, transaction or event of a material and unusual nature likely, in the
    opinion of the directors of the Company to affect substantially the operations of the Group, the results
    of its operations or the state of affairs of the Group.

6 March 2018

CORPORATE INFORMATION

Registered address:      The Boulevard Office Park
                        1st Floor, Block C
                        Searle Street
                        Cape Town
                        7925
                        South Africa
                         
Directors:               F Robertson* (Chairman)
                        BM Rapiya**
                        WA Hanekom*
                        LJ Penzhorn*
                        MI Khan*
                        T Moodley***
                        F Ratheb (Chief Executive Officer)
                        JP de Freitas (Chief Financial Officer)
                        Mo Brey (Chief Investment Officer)

                        * Non-Executive
                        ** Lead Independent non-Executive
                        *** Non-executive Alternate

                        There have been no changes to the board of directors since listing.
                         
Company Secretary:       N Aston
                         
Transfer Secretary:      Computershare Investor Services Proprietary Limited
                        Rosebank Towers, 15 Biermann Avenue, Rosebank, 2196
                         
Sponsor:                 The Standard Bank of South Africa Limited
                         
Auditors:                Deloitte & Touche

Date: 06/03/2018 08:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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