Due to improved agricultural conditions and good prices for the group’s major crops, particularly sugar cane, headline earnings per share for the six months ended 30 September 2011 are 173% higher than for the same period in the previous year.

Basic earnings per share for the prior year were significantly inflated by the inclusion of the net capital profit of R87 million from the sale of the group’s Komati estate.

Operating profits are up 200% with each segment performing as follows:

Sugar cane: Production in Swaziland, Mpumalanga and Zambia achieved expectations while the production from the group’s KwaZulu- Natal (KZN) estates was negatively impacted by the drought of the previous year. Operating profits were boosted by the excellent South African sucrose price. The Swaziland and Zambia prices were less favourable but have potential to improve due to the strong global market and recent local currency weakness.

Bananas: The recent restructuring of this division has yielded excellent results in terms of yields and quality, but the positive impact of the replanting being undertaken will only materialise over the next two years.

Deciduous fruit: Losses are due mainly to the seasonality of the income and to the large-scale replant of old orchards currently in progress.

Grain and sheep: With harvesting largely complete, excellent yields following good winter rains and firm prices, have contributed to sound results from this division. Mutton and wool prices are also favourable at present.
Net investment activity in the period under review comprised expansion of the Swaziland sugar cane and Western Cape deciduous fruit operations as the group selectively expands around its core operating nodes and in crops in which it has expertise.

PROSPECTS
The board again cautions against using interim figures to project full year results, due to the varying seasonality of the diverse crops in the group’s portfolio.

Due to the volatility of exchange rates and prices for the group’s products it is considered inappropriate to provide a forecast of expected headline earnings for the full year at this stage.
Several significant projects are currently being implemented with the aim of enhancing future earnings:

• The area under sugar cane on the existing Swaziland Estate is being expanded by 570 hectares to 2 190 hectares, with the prospect of a further 500 hectares expansion, also on currently owned land, should water rights be secured;
• An additional area of 250 hectares under sugar cane has been purchased in Mpumalanga, subsequent to the end of the interim reporting period, and a further 85 hectares leased on favourable terms;
• Additional sugar cane area of 220 hectares has been added on leased land at the KwaCele joint venture in KZN, funded by grants to the community property trust;
• Expansion of the deciduous fruit operations by a further 100 hectares is being undertaken on currently owned land, which will increase the total area under deciduous fruit to 490 hectares; and
• The investigation of property development opportunities on the Renishaw farm is proceeding according to plan with final environmental impact assessment (EIA) documentation having been recently submitted to the authorities.

INTERIM CASH DIVIDEND DECLARATION
The board is mindful of balancing growth prospects with generating a competitive yield to shareholders, and considers its capital investment prospects together with seeking to at least match the dividend yields and payout ratios of its peer group of JSE-listed food and agricultural companies.

A dividend of 65,0 cents (2010: 45,0 cents) per share, for the six-month period ended 30 September 2011, has been declared payable to shareholders recorded in the books of the company at the close of business on the record date, Friday, 6 January 2012.
The salient dates of the declaration and payment of this dividend is as follows:

Share certificates may not be dematerialised or rematerialised between Friday, 30 December 2011 and Friday, 6 January 2012, both days inclusive.

For and on behalf of the Board:

ACCOUNTING POLICIES
The unaudited interim results of the group have been prepared in accordance with IAS 34 – Interim Financial Reporting as well as the AC 500 Standards as issued by the Accounting Practices Board, the Listings Requirements of the JSE Limited and the requirements of the South African Companies Act. The financial information has been prepared on the historical cost basis except for the revaluation of available-for-sale financial assets and the valuation of biological assets and share-based payments at fair value. The principal accounting policies are consistent with those of the previous year.

CROOKES BROTHERS LIMITED
Registration number: 1913/000290/06
Share code: CKS
ISIN: ZAE000001434 (“Crookes” or “the company” or “the group”)

REGISTERED OFFICE AND POSTAL ADDRESS
PO Renishaw, KwaZulu-Natal, 4181

TRANSFER SECRETARIES

Computershare Investor Services (Pty) Limited
PO Box 61051, Marshalltown, 2107

DIRECTORS
G P Wayne * (Chairman), G S Clarke (Managing), P J Barker (Financial), P Bhengu *, C J H Chance *, J A F Hewat *, P G Joubert *, P Mnganga*, M T Rutherford *, R E Stewart* * Non-executive director

COMPANY SECRETARY SPONSOR
Highway Corporate Services (Pty) Limited

WEBSITE
www.cbl.co.za

SPONSOR
Sasfin Capital (A division of Sasfin Bank Limited)