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Restatement of previously reported financial results
LABAT AFRICA LIMITED
(Incorporated in the Republic of South Africa)
Registration number 1986/001616/06
(“Labat “the Company” or “the Group”)
RESTATEMENT OF PREVIOUSLY REPORTED FINANCIAL RESULTS (“RESTATEMENT”)
INTRODUCTION
Shareholders are advised that the Company’s annual financial statements for the
year ended 28 February 2014 together with the comparative figures (collectively,
“2014 AFS”) as published, 6 June 2014 on SENS were misstated.
The misstatement of the 2014 AFS was identified following the JSE Limited’s (“JSE”)
pro-active monitoring process (“Pro-active Monitoring”) whereby the 2014 AFS were
selected for review by the JSE.
RESTATEMENT
1. Background
During the financial period ended 28 February 2014, Labat entered into an
agreement to dispose of its land and buildings. The land and buildings were
therefore accounted for as a disposal group in accordance with IFRS 5: Non-current
Assets Held for Sale (IFRS 5).
The misstatement occurred as a result of incorrectly applying the requirements of
IFRS 5 in accounting for the movement of the revaluation reserve in the statement of
other comprehensive income as part of the profit from discontinued operations, as
well as errors made in the calculation of the deferred tax implications on the fair
value adjustment.
Furthermore, it was identified that the deferred tax on the revaluation of the land
portion, was not accounted for at a capital gains tax rate as required by IAS 12:
Income Taxes which resulted in the comparative figures being misstated.
2. Basis of preparation of the Restatement
The restated financial information regarding the 2014 AFS has been prepared by
David O’Neill in his capacity as Financial Director, in accordance with IFRS and the
SAICA Financial Reporting Guides as issued by the Accounting Practices Committee.
The accounting policies applied in arriving at the restated financial results are
consistent, in all material respects, with those applied in the 2014 AFS.
3. Restated 2014 AFS
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
29 February 2012
Adjustment
As on use of
previously CGT rate on Restated
reported land portion balance
Statement of Financial Position R’000 R’000 R’000
Non-distributable reserve (15 267) (1 129) (16 396)
Deferred tax (5 408) 1 273 (4 135)
Retained loss 63 545 (144) 63 401
28 February 2013
Adjustment
As on use of
previously CGT rate on Restated
reported land portion balance
Statement of Financial Position R’000 R’000 R’000
Non-distributable reserve (12 927) (1 128) (14 055)
Deferred tax (4 554) 1 273 (3 281)
Retained loss 62 103 (144) 61 959
28 February 2014
Adjustment
on Adjustment
revaluation on use of
reserve and CGT rate
As effect on on
previously change of land Restated
Statement of Financial reported rate portion) balance
Position R’000 R’000 R’000 R’000
Non-distributable reserve (5 656) (1 988) (1 129) (8 773)
Liabilities of disposal groups (2 213) (1 268) 1 273 (2 208)
Retained loss 65 542 3 256 (144) 68 654
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
28 February 2014 28 February
2013
As
previously Restated
reported Restatement balance
R’000 R’000 R’000
(Loss) / profit from (6 022) - (6 022) 326
continuing operations
Discontinued operations
Profit / (loss) from 2 414 (3 256) (842) (1 225)
discontinued operations
(Loss) / profit for the year (3 607) (3 256) (6 864) (899)
Other comprehensive
income
Loss on revaluation reserve (9 862) 2 761 (7 101) -
Taxation related to 2 761 (773) 1 988 -
revaluation of property
Other comprehensive loss (7 101) 1 988 (5 112) -
Total Comprehensive (loss) (10 709) (1 268) (11 977) (899)
/ income for the year
EARNINGS AND HEADLINE EARNINGS PER SHARE
28 February
28 February 2014 2013
As
previously Restated
reported Restatement balance
R’000 R’000 R’000
Total basic (loss)/earnings per share (cents)
-Continuing operations (3.02) - (3.02) 0.17
-Discontinued operations 1.21 (1.63) (0.42) (0.62)
Total loss per share (1.81) (1.63) (3.44) (0.45)
Total headline (loss)/earnings per share (cents)
-Continuing operations (3.01) - (3.01) (0.08)
-Discontinued operations 1.31 (1.63) (0.32) (0.40)
Total headline loss per
share (1.70) (1.63) (3.33) (0.48)
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Non-
Total share distributable Retained
capital reserves losses Total
Balance at 1 March 2012 as
previously reported 50 555 15 267 (63 545) 2 277
Restatement - 1 129 144 1 273
Balance at 1 March 2012 50 555 16 396 (63 401) 3 550
Total comprehensive income - - (899) (899)
Transfer of revaluation reserve - (253) 253 -
Transfer of revaluation reserve
on disposal - (2 088) 2 088 -
Balance at 01 March 2013 as
restated 50 555 14 055 (61 959) 2 651
Total comprehensive income
as restated - (5 113) (6 864) (11 977)
Transfer of revaluation reserve - (169) 169 -
Issue of shares 750 - - 750
Balance at 28 February 2014 as
restated 51 305 8 773 (68 654) (8 577)
Johannesburg
19 February 2015
Sponsor
Arbor Capital Sponsors Proprietary Limited
Date: 19/02/2015 11:10:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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