| Notes: |
| |
| 1. |
Basis of preparation |
| |
This preliminary unaudited interim report has been prepared and presented in accordance with IAS34: Interim Financial Reporting, and Schedule 4 of the Companies Act, No. 61 of 1973 (as amended).The accounting policies used in the preparation of these results are in accordance with International Financial Reporting Standards (IFRS) and consistent in all material respects with those used in the annual financial statements for the year ended 30 June 2007. The condensed financial statements have been prepared under the historic cost convention, except for the revaluation of certain investments and investment property.
There are no standards that are currently in issue but not yet effective which would result in a change in accounting results. |
|
|
| 2. |
Earnings from discontinued operations |
| |
In the current period there were no discontinued operations. The prior year discontinued operations relate to the disposal of the Group’s Foundries business on 31 March 2007. |
|
| |
| R millions |
30.12.07 |
30.12.06 |
30.6.07 |
| Earnings from discontinued operations are analysed as follows: |
|
|
|
| Loss on disposal |
– |
– |
(61) |
| Earnings after taxation for the period |
– |
13 |
13 |
| |
– |
13 |
(48) |
| Earnings after taxation for the period is analysed as follows: |
|
|
|
| Revenue |
– |
453 |
715 |
| Earnings before interest and depreciation |
– |
52 |
68 |
| Depreciation |
– |
(24) |
(42) |
| Earnings before interest, exceptional items and taxation |
– |
28 |
26 |
| Exceptional items |
– |
– |
– |
| Earnings before interest and taxation |
– |
28 |
26 |
| Net interest expense |
– |
(7) |
(9) |
| Earnings before taxation |
– |
21 |
17 |
| Taxation |
– |
(8) |
(4) |
| Earnings after taxation for the period |
– |
13 |
13 |
|
|
|
| 3. |
Acquisition of subsidiary |
| |
Clough Limited (Clough), which was previously accounted for as an associate, is consolidated
for the first time as the Group acquired control over the company on 1 July 2007. The impact of
consolidating Clough for the first time is as follows: |
|
| |
| R millions |
30.12.07 |
30.12.06 |
30.6.07 |
| Net assets |
3 167 |
– |
– |
| Net liabilities |
(2 787) |
– |
– |
| Clough minorities |
(111) |
– |
– |
| Fair value of assets consolidated |
269 |
– |
– |
| Minority interest on consolidation |
(136) |
– |
– |
| Foreign currency translation reserves on acquisition |
54 |
– |
– |
| Decrease in investment in associates |
(623) |
– |
– |
| Exchange rate adjustments recorded in prior years |
116 |
– |
– |
| Goodwill recorded on consolidation |
(320) |
– |
– |
| During the period the Group increased its investment in Clough from 49,1% to 56,2%. The impact of shareholding increase is as follows: |
|
|
|
| Increase in goodwill |
(48) |
– |
– |
| Increase in minorities |
(140) |
– |
– |
| The goodwill is attributable to the high profitability of the acquired business. The acquisition accounting
is still on a provisional basis. |
|
|
|
| 4. |
Reclassification |
| |
During the year the Group reclassified the accounting for its property division from exceptional items
to normal trading activities as a result of settlement of the headlease structured liability that existed
over the properties. The impact of the property reclassification is as follows: |
|
| |
| R millions |
30.12.07 |
30.12.06 |
30.6.07 |
| Revenue |
59 |
86 |
164 |
| Earnings before interest, exceptional items and taxation |
25 |
31 |
53 |
| Exceptional items |
(18) |
(8) |
(14) |
| Interest expense |
(14) |
(21) |
(39) |
| Taxation |
6 |
(2) |
– |
|
|
| |
| R millions |
30.12.07 |
30.12.06 |
30.6.07 |
| Profit on disposal of subsidiary |
130 |
– |
– |
| Profit on disposal of land and buildings |
60 |
– |
– |
| Impairment of investment in associate |
(13) |
– |
(115) |
| Impairment of goodwill |
(10) |
– |
– |
| Impairment of unlisted investments |
(63) |
(48) |
(48) |
| Other |
– |
5 |
2 |
| |
104 |
(43) |
(161) |
|
|
|
| 6. |
Reconciliation of headline earnings |
|
| |
| R millions |
30.12.07 |
30.12.06 |
30.6.07 |
| Earnings attributable to shareholders of the holding company |
699 |
360 |
702 |
| Profit on disposal of subsidiary |
(130) |
– |
– |
| Profit on the disposal of land and buildings |
(60) |
– |
– |
| Loss on disposal of discontinued operation |
– |
6 |
61 |
| Impairment of investment in associate |
13 |
– |
163 |
| Reversal of impairments |
– |
(15) |
– |
| Impairment of goodwill |
10 |
– |
– |
| Impairment of unlisted investments |
63 |
48 |
– |
| Revaluation of investment properties |
– |
– |
(253) |
| Remeasurement of liability on investment properties |
– |
– |
272 |
| Other |
– |
4 |
(2) |
| Taxation effect on above adjustments |
5 |
– |
25 |
| Minority interest on above adjustments |
56 |
– |
– |
| Headline earnings |
656 |
403 |
968 |
|
