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Summarised Consolidated Financial Statements For The Year Ended 30 September 2017 And Dividend Declaration
Kaap Agri Limited
Incorporated in the Republic of South Africa
Registration number: 2011/113185/06
Income tax number: 9312717177
Share code: KAL
ISIN code: ZAE000244711
Summarised consolidated financial statements for the year ended 30 September 2017
Salient features
- Value of transactions up 12,3% to R8,6 billion
- Final dividend per share up 21,5% by 82,6 cents
- Recurring headline earnings per share up 17,9% by 351,9 cents
- Total dividend per share up 18,5% by 112,0 cents
Commentary
Financial review
The Kaap Agri Group summary report provides an overview of the activities, results and financial position of the Group for
the year ended 30 September 2017.
The Group specialises in trading in agricultural, fuel and related retail markets in Southern Africa. With its strategic
footprint, infrastructure, facilities and client network, it follows a differentiated market approach. In support of the
core retail business, the Group also offers financial, grain handling and agency services. Kaap Agri has over 190 operating
points located in seven of the nine South African provinces as well as in Namibia.
Operating environment
The agricultural environment remains heavily impacted by climatic conditions in the various areas in which we operate as
well as foreign exchange volatility. Whilst the general retail sector in South Africa has struggled with subdued consumer
spending, Kaap Agri's ongoing diversification strategy has resulted in strong retail and fuel growth across a number of
categories and has contributed substantially to the overall strong trading results.
Financial results
Kaap Agri increased the value of business transacted by 12,3% to approximately R8,6 billion, up from R7,6 billion in the
previous financial year, with comparable stores growing turnover by 9,4%. The growth in the value of business transacted
was driven mainly by a 15,9% increase in the number of transactions. Product inflation is estimated at 3,9%. The strong
revenue growth is testament to Kaap Agri's ongoing diversification and resilience. Retail sales growth continues to
outperform agricultural sales growth, albeit off a far lower base, and the retail income channel now accounts for similar
trading profits as the agriculture income channel. During the period, nine new fuel sites were opened, with total fuel volumes
increasing by 10,9% in the year. The Paarl Agrimark was successfully extended and upgraded to reflect our new urban-format
retail offering. A number of other Agrimark and Pakmark offerings were upgraded or expanded. This continuing investment
into the business bodes well for sustained revenue growth going forward.
Gross profit has increased by 18,5%, ahead of revenue growth and a firm indicator of the change in sales mix. Improved
retail margins are expected to be partially offset by the higher growth in lower-margin fuel sales going forward.
Expenditure increased by 17,7%, below gross profit growth, with significant investment into improving the human capital
pillar and the supply chain capabilities of our business. Although the increase in operating expenses was higher than in
past years, costs were well controlled and certain costs have been invested ahead of the curve to support the growth
initiatives underpinning our strategic medium-term plan.
Effective 1 August 2017, 50% of the shareholding in Kaap Agri (Namibia) was sold to a Namibian retail group with its head
office in Windhoek. The combined strength and offering of these two businesses is expected to deliver an improved
performance from the Namibian operation, which until now has struggled due to economic and operational challenges.
Interest received grew by 16,4%, as a result of increased credit sales and a higher average debtors book. Interest paid
increased by 41,6% due to higher average borrowings during the year in support of growth.
The Group's effective tax rate of 27,5% is in line with expectation (2016: 27,6%).
Recurring headline earnings per share of 351,91 cents have grown by 17,9% on last year, resulting in a compound annual
growth rate of 18,9% over the five years ended 30 September 2017. Once-off items, predominantly costs associated with the
JSE listing, are excluded from headline earnings to calculate recurring headline earnings. Return on revenue has grown to
3,9% from 3,7% last year.
Operating results
Income from the Trading division, which includes the Agrimark retail branches, Pakmark packaging material distribution
centres, mechanisation services, spare parts and irrigation operations, increased by 6,3%, with operating profit before tax
increasing by 14,1%. The impact of equity accounting Kaap Agri (Namibia) negatively impacted income growth by 2,4%. The
impact of the increased higher-margin retail contribution is evident.
Significant growth was realised in the Fuel and convenience division with income growing 34,2% and operating profit before
tax increasing by 37,4%. Continued strong growth in this division is expected.
Wesgraan, which includes grain handling and storage of grain and related products, seed processing and potato seed
marketing, grew income by 27,1% and increased operating profit before tax by 68,7%, as a result of increased wheat volumes.
The Corporate division includes the cost of support services as well as other costs not allocated to specific segments and
represents 1,7% of turnover, slightly up on the previous year.
Treasury income, which represents the net internal interest received less interest paid, decreased by 1,7%.
Financial position
Capital expenditure of R201,6 million was incurred during the year. Of this, R158,6 million was directed to capacity
expansion while a further R43,0 million was spent on replacement assets. An additional R90,7 million was spent on the
acquisition of business operations.
Working capital has been well controlled. Debtors have grown in relation to the increase in credit sales and stock levels
have been more effectively, managed, assisted by a higher retail sales contribution and the increased participation of our
centralised distribution centre. Creditors payment terms have remained relatively constant during the year. Return on net
assets has increased to 10,4% from 9,8% last year.
Net interest-bearing borrowings reduced by 14,5% to R730,7 million, largely due to the impact of timing of cash flows at
year-end. Average borrowings increased by R41,7 million year on year off the back of investments into expansions, upgrades
and acquisitions as well as working capital. The Group's debt to equity ratio decreased to 46,1% (2016: 60,8%), with net
debt to EBITDA of 1,7 times (2016: 2,3 times) and interest cover of 7,1 times (2016: 8,1 times). Gearing is within
appropriate levels, with sufficient facilities available to enable medium-term growth as well as access to adequate
additional financing facilities if required. Return on equity improved to 16,6% (2016: 15,8%).
The Group continues to generate strong cash flows from operations (R482,8 million) and significant investment has been
made back into the business to support growth, in terms of increased capital expenditure and acquisitions.
Dividend
A gross final dividend of 82,60 cents per share (2016: 68,00 cents) has been approved and declared by the Board from
income reserves, which represents a 21,5% increase on the previous year. The final dividend amount, net of South African
dividends tax of 20%, is 66,08 cents for those shareholders who are not exempt from dividends tax. The total dividend for
the year of 112,00 cents per share (2016: 94,50 cents) increased by 18,5% over the prior year and has grown at a compound
annual growth rate of 26,2% over five years. The total dividend per share represents a dividend cover of 3,0 times
(2016:3,0 times).
The salient dates for this distribution are:
Declaration date Wednesday, 29 November 2017
Last day to trade cum dividend Tuesday, 13 February 2018
Trading ex dividend commences Wednesday, 14 February 2018
Record date to qualify for dividend Friday, 16 February 2018
Payment date Monday, 19 February 2018
Share certificates may not be dematerialised or rematerialised between Wednesday, 14 February 2018 and
Friday, 16 February 2018, both days inclusive.
Outlook
Economic conditions in South Africa have been difficult over the past year and general retail performance in the country
has been constrained. Agricultural conditions have shown improvement in specifically the northern areas of the country, but
remain under pressure in the Western Cape with the Swartland grain producers expecting a decreased yield on last year.
Dam levels in certain areas are at below-average levels, which may impact fruit producers negatively. Retail fuel growth
remains an aggressive part of the expansion strategy.
Although the year ahead will be a challenging one, we believe our growth strategies are firmly on track to deliver
superior returns in line with our strategic medium-term plans. We will continue to invest into our people and to engage
proactively with customers. We will maintain and, in certain circumstances, accelerate investment into revenue-generating
capital expenditure, and the focus on improved retail and fuel offerings will positively impact results.
Kaap Agri is well positioned to take advantage of its extensive footprint and diverse service offerings to maintain its
strong organic growth and to focus on new business opportunities.
Events after the reporting date
As announced on SENS on 10 November 2017, subsidiaries of Kaap Agri acquired certain retail fuel operations and accompanying
retail fuel-related properties in Gauteng and Limpopo in line with the Group's growth strategy for its TFC brand. Subject to
the fulfilment of the conditions precedent as detailed in the announcement, it is anticipated that the acquisition will be
implemented on or before 28 February 2018.
There have been no other events that may have a material effect on the Group that occurred after the end of the reporting
period and up to the date of approval of the summary consolidated financial results by the Board.
Appreciation
The Board of directors records its appreciation for the continued support and loyalty of the Group's employees, shareholders,
customers and suppliers.
On behalf of the Board
GM STEYN S WALSH
Chairman Chief Executive Officer
29 November 2017
Statement of financial position
at 30 September
Notes 2017 2016
R'000 R'000
ASSETS
Non-current assets
Property, plant and equipment 5 926 998 753 593
Intangible assets 6 99 482 48 094
Investment in joint venture 8 15 357 -
Loans 13 533 -
Deferred taxation 823 6 008
1 056 193 807 695
Current assets
Inventory 774 244 829 210
Trade and other receivables 9 1 496 333 1 441 831
Derivative financial instruments 348 10 335
Short-term portion of loans 23 925 26 821
Cash and cash equivalents 35 088 16 983
2 329 938 2 325 180
Total assets 3 386 131 3 132 875
EQUITY AND LIABILITIES
Capital and reserves 1 582 634 1 405 677
Non-current liabilities
Deferred taxation 16 815 5 858
Employee benefit obligations 17 621 24 003
34 436 29 861
Current liabilities
Trade and other payables 10 987 819 805 329
Derivative financial instruments 348 10 335
Short-term portion of employee benefit obligations 13 478 7 569
Short-term borrowings 764 892 871 058
Income tax 2 524 3 046
1 769 061 1 697 337
Total liabilities 1 803 497 1 727 198
Total equity and liabilities 3 386 131 3 132 875
Total shareholders' equity to total assets employed* (%) 45,8 45,7
Net interest-bearing debt to total assets employed* (%) 24,3 25,8
Net asset value per share (rand) 22,46 19,95
Shares issued (number - '000) 70 462 70 462
Total number of ordinary shares in issue** 74 170 74 170
Treasury shares (3 708) (3 708)
* Ratios calculated on average balances.
** There was no change in the issued share capital between 30 September 2017 and the dividend declaration date, being
74 170 277 shares.
Income statement
for the year ended 30 September
2017 2016
R'000 R'000
Revenue 6 415 697 5 652 843
Cost of sales (5 323 055) (4 730 958)
Gross profit 1 092 642 921 885
Operating expenses (805 595) (680 677)
Operating profit before interest received 287 047 241 208
Interest received 112 780 96 898
Operating profit 399 827 338 106
Finance costs (67 001) (47 308)
Share in profit of joint venture 201 -
Profit before tax 333 027 290 798
Income tax (91 610) (80 376)
Profit for the period attributable to equity holders of the holding company 241 417 210 422
Earnings per share - basic (cents) 342,62 298,63
Earnings per share - diluted (cents) 339,76 298,63
Dividend per share (cents) 112,00 94,50
Headline earnings reconciliation
for the year ended 30 September
2017 2016
R'000 R'000
Profit for the period 241 417 210 422
Net profit on disposal of assets (137) (118)
Gross (190) (164)
Tax effect 53 46
Net loss on disposal of share in subsidiary and impairment of joint venture 2 211 -
Loss on disposal of share in subsidiary 1 088 -
Fair value adjustment on loss of control 1 123 -
Tax effect - -
Headline earnings attributable to equity holders of the holding company 243 491 210 304
Non-recurring expenses* 4 470 -
Recurring headline earnings attributable to equity holders of the holding company 247 961 210 304
Headline earnings per share - basic (cents) 345,56 298,46
Headline earnings per share - diluted (cents) 342,67 298,46
Recurring headline earnings per share (cents) 351,91 298,46
Weighted average number of shares (number - '000) 70 462 70 462
Weighted average number of diluted shares (number - '000) 71 056 70 462
* Non-recurring expenses consist predominantly of once-off costs associated with the JSE listing.
Statement of comprehensive income
for the year ended 30 September
2017 2016
R'000 R'000
Profit for the period 241 417 210 422
Other comprehensive income:
Cash flow hedges 384 (427)
Gross 533 (593)
Tax (149) 166
Total comprehensive income for the period attributable to equity holders
of the holding company 241 801 209 995
Statement of changes in equity
for the year ended 30 September
2017 2016
R'000 R'000
Share capital 456 643 456 643
Gross shares issued 480 347 480 347
Treasury shares (23 704) (23 704)
Other reserves 3 893 (277)
Opening balance (277) 150
Share-based payments 3 786 -
Other comprehensive income 384 (427)
Retained profit 1 122 098 949 311
Opening balance 949 311 798 429
Profit for the period 241 417 210 422
Dividends paid (68 630) (59 540)
Capital and reserves 1 582 634 1 405 677
Statement of cash flows
for the year ended 30 September
2017 2016
R'000 R'000
Cash flow from operating activities 482 766 100 462
Net cash profit from operating activities 473 489 384 616
Working capital changes 103 788 (204 504)
Income tax paid (94 511) (79 650)
Cash flow from investment activities (272 985) (213 746)
Purchase of property, plant and equipment (201 616) (177 260)
Proceeds on disposal of property, plant and equipment 775 1 193
Decrease in loans 18 555 -
Acquisition of operations (90 699) (37 679)
Cash flow from financing activities (191 676) 106 765
Increase/(decrease) in short-term loans (56 045) 201 078
Decrease in loans - 12 535
Interest paid (67 001) (47 308)
Dividends paid (68 630) (59 540)
Net increase/(decrease) in cash and cash equivalents 18 105 (6 519)
Cash and cash equivalents at the beginning of the year 16 983 23 502
Cash and cash equivalents at the end of the year 35 088 16 983
Notes to the summarised consolidated financial statements
for the year ended 30 September
1. Basis of presentation and accounting policies
The summarised Group financial statements for the year ended 30 September 2017 have been prepared in accordance with the
requirements of the JSE Limited Listings Requirements (JSE) for preliminary reports, and the requirements of the Companies
Act of South Africa, Act 71 of 2008, as amended, applicable to summary financial statements. The Listings Requirements of
the JSE require preliminary reports to be prepared in accordance with the framework concepts and the measurement and
recognition requirements of International Financial Reporting Standards (IFRS) and 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 also, as a minimum, to contain the information required by IAS 34 Interim Financial Reporting.
The summarised Group financial statements are an extract from the audited information, but this summary report has not been
audited. The Group annual financial statements for the year, which have been audited by PricewaterhouseCoopers Inc., and their
unmodified audit report thereon, are available for inspection at the company's registered
office. The Group's auditors have not reviewed, nor reported on any comments relating to prospects.
The directors take full responsibility for the preparation of the preliminary report and that the financial information has
been correctly extracted from the underlying financial records.
The summarised Group financial statements for the year ended 30 September 2017 were prepared by GC Victor CA(SA), the
Group's Financial Manager under supervision of GW Sim CA(SA), the Group's Financial Director.
2. Accounting policies
The accounting policies applied in the preparation of the Group financial statements, from which the summarised Group
financial statements were derived, are in terms of IFRS and are consistent with those accounting policies applied in the
preparation of the previous Group annual financial statements.
3. Critical accounting estimates and assumptions
In preparing these summarised Group financial statements, the significant judgements made by management in applying the
Group's accounting policies of estimation uncertainty were the same as those that applied to the Group annual financial
statements for the year ended 30 September 2017. The estimates and assumptions that have a significant risk of causing a
material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.
Provision for impairment of trade receivables
In estimating the provision for impairment of trade receivables, management makes certain estimates and judgements
relating to the estimated recovery rate of debtors who are deemed to be impaired. This includes an assessment of current
and expected future payment profiles and customer-specific risk factors such as economic circumstances, geographical
location and the value of security held.
4. Fair value estimation
Financial instruments measured at fair value are disclosed by level of the following fair value hierarchy:
- 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 (as prices) or indirectly (derived from prices); and
- Level 3 - Inputs for the asset or liability that are not based on observable market data (unobservable inputs).
The only financial instruments that are carried at fair value are derivative financial instruments held for hedging. The
fair value is based on quoted market prices at the reporting date. The quoted market price used for financial assets held
by the Group is the current bid price (Level 2).
Level 2 hedging derivatives comprise forward purchase and sale contracts and options. The effects of discounting are
generally insignificant for Level 2 derivatives.
The fair value of the following financial instruments approximates their carrying amount at the reporting date:
- Trade and other receivables
- Trade and other payables
- Short-term borrowings
- Loans
2017 2016
R'000 R'000
5. Property, plant and equipment
Reconciliation of movements in carrying value:
Carrying value beginning of period 753 593 607 756
Additions 201 616 177 260
Land and buildings 32 521 49 782
Machinery and equipment 23 015 19 573
Vehicles 3 651 914
Office furniture and equipment 13 000 15 434
Leasehold properties 816 727
Assets under construction 128 613 90 830
Additions through business combinations 43 067 138
Sale of share in subsidiary (35 393) -
Disposals (584) (1 029)
Depreciation (35 301) (30 532)
Carrying value end of period 926 998 753 593
Land and buildings 651 842 519 939
Grain silos 16 782 18 408
Machinery and equipment 90 362 74 545
Vehicles 7 308 6 257
Office furniture and equipment 54 083 52 522
Leasehold properties 14 708 18 533
Assets under construction 91 913 63 389
6. Intangible assets
Reconciliation of movements in carrying value:
Carrying value beginning of period 48 094 14 061
Additions through business combinations 53 217 35 862
Amortisation (1 829) (1 829)
Carrying value end of period 99 482 48 094
Goodwill 97 951 44 734
Customer relations 1 531 3 360
To assess for impairment of goodwill, a valuation in use calculation was done per CGU.
Income and expenses were increased at the expected inflation rate and a discount rate
of 11% to 15% was used depending on the CGU's specific risk profile. No impairment was
recognised, with no indicators that the calculation is sensitive to reasonable change
in assumptions.
2017 2016
R'000 R'000
7. Capital commitments
Contracted 74 250 117 083
Not yet contracted 64 676 43 100
138 926 160 183
These commitments have been approved by the Board of directors.
The commitments will be financed by own and borrowed funds.
8. Investment in joint venture
Kaap Agri (Namibia) (Pty) Ltd
Carrying value at date of acquisition 16 279 -
Fair value adjustment on loss of control (1 123) -
Share in total comprehensive income 201 -
15 357 -
On 1 August 2017, a 50% share in the subsidiary Kaap Agri (Namibia) (Pty) Ltd was
sold. All income and expenses are consolidated up to 31 July 2017. From 1 August 2017,
the equity method of accounting is applied.
9. Trade and other receivables
Trade debtors 1 438 292 1 402 204
Provision for impairment (45 313) (37 448)
1 392 979 1 364 756
VAT 41 755 55 475
Pupkewitz Holdings 16 550 -
Other debtors 45 049 21 600
1 496 333 1 441 831
10. Trade and other payables
Trade creditors 871 343 711 306
Employee accruals 50 179 39 227
Other creditors 66 297 54 796
987 819 805 329
11. Information about operating segments
Management has determined the operating segments based on the reports reviewed by the Executive committee that are used
to make strategic decisions. The Executive committee considers the business from a divisional perspective. The performance
of the following divisions is separately considered: Trade, Fuel and convenience (TFC), Wesgraan as well as Irrigation
manufacturing. The performance of the operating segments is assessed based on a measure of revenue and net profit before
taxation.
Trade provides a complete range of production inputs, mechanisation equipment and services, and other goods to agricultural
producers as well as the general public. Fuel and convenience (TFC) provides a full retail fuel offering to a diverse range
of customers, including convenience store and quick-service restaurant outlets. Wesgraan provides a complete range of
marketing and hedging options as well as handling grain products between producer and buyer. Irrigation manufacturing
manufactures dripper pipe and other irrigation equipment and distributes franchise and other irrigation parts.
Segment revenue and results
Segment revenue Segment results
2017 2016 2017 2016
R'000 R'000 R'000 R'000
Trade 4 134 625 3 887 991 221 662 194 189
Fuel and convenience (TFC) 1 385 271 1 031 865 63 782 46 426
Wesgraan 710 239 558 610 51 922 30 785
Irrigation manufacturing 180 976 169 405 25 248 18 163
Total for reportable segments 6 411 111 5 647 871 362 614 289 563
Corporate 4 586 4 972 (109 851) (80 170)
Treasury - - 80 063 81 405
Share in profit of joint venture - - 201 -
Total external revenue 6 415 697 5 652 843
Profit before tax 333 027 290 798
Income tax (91 610) (80 376)
Profit after tax 241 417 210 422
Segment assets and liabilities
Segment assets Segment liabilities
2017 2016 2017 2016
R'000 R'000 R'000 R'000
Trade 1 231 029 1 180 500 816 221 675 939
Fuel and convenience (TFC) 340 921 215 713 24 420 15 969
Wesgraan 68 980 63 312 25 704 2 080
Irrigation manufacturing 64 016 71 000 29 822 27 653
Total for reportable segments 1 704 946 1 530 525 896 167 721 641
Corporate 272 026 231 586 125 623 128 641
Trade debtors 1 392 979 1 364 756 - -
Investment in joint venture 15 357 - - -
Short-term borrowings - - 764 892 871 058
Deferred taxation 823 6 008 16 815 5 858
3 386 131 3 132 875 1 803 497 1 727 198
12. Equity settled management share incentive scheme
2017 2016
Average Average
exercise price Number exercise price Number
per share option of options per share option of options
Granted during the year 23,88 1 242 605 - -
The impact in profit and loss is R3 785 734 (2016: RNil)
Share options outstanding at the end of the year have the following expiry dates and exercise prices:
Exercise Fair value Share options Share options
Grant date Vesting date price at grant date 2017 2016
1 October 2016 1 October 2018 23,88 8,66 310 651 -
1 October 2016 1 October 2019 23,88 9,53 310 651 -
1 October 2016 1 October 2020 23,88 10,21 310 651 -
1 October 2016 1 October 2021 23,88 10,75 310 651 -
Fair value of options granted
In terms of IFRS 2, the grant date for the calculation of the fair value of the new equity-settled management incentive
scheme is 30 November 2016. The date on which the above-mentioned existing options were granted during the year, as
reflected in the scheme rules, has been corrected to 1 October 2016. This did not result in any changes to the exercise
price, number of options or entitlement date.
The fair value of the grant is determined using the Black-Scholes-Merton model using six different inputs that would have
an effect on the fair value of the grant. The inputs are the exercise price of the option, the share price at grant date,
the expected life of the option, the expected volatility, the expected dividend yield and the risk-free interest rate.
Volatility is based on comparable listed entities.
2017 2016
Model inputs:
Exercise price (rand) 23,88 -
Share price at grant date (rand) 30,00 -
Expected life of option (years) 2 to 5 -
Expected volatility (%) 29,8 -
Expected dividend yield (%) 3,62 -
Risk-free interest rate (%) 7,33 to 7,58 -
The Group has implemented a new equity-settled management share incentive scheme (the scheme). The purpose of the
scheme is to provide employees with the opportunity to acquire shares in the company through the grant of rights, in order
to promote and enable the retention and attraction of exceptional talent and to align the interests of the management of
the company and Group companies more closely with the shareholders of the company. In terms of the scheme, grants are
allocated to participants taking into account each participant's annual cost to company (CTC), a factor of CTC based on
the nature and level of their position and the share price. The number of shares that a participant will become eligible
for at vesting date will be calculated at the time of vesting based on the growth in the share price between the date of
grant and the entitlement date, less employee tax. A participant's entitlement to settlement in terms of the rights
granted shall be in equal 25% annual tranches from the first day of the second financial year commencing after date of
grant onwards. The number of shares that may be utilised for the purposes of the scheme shall not exceed 3 700 000 shares,
with no single individual being entitled to more than 1 235 000 shares.
13. Business combinations
In line with the Group's growth strategy to acquire businesses in the fuel sector, certain retail fuel operations and
accompanying retail fuel properties were acquired. Goodwill on acquisition was paid on these businesses as the price is
competitive in the context of other retail fuel operations and the business combination presents synergies within the
Group and have further earnings potential.
A purchase price allocation, as required by IFRS 3 Business Combinations, was performed and no material intangible assets
were identified, other than fuel site operating licences. This is recognised with the property that it relates to as one
asset, as these assets have similar useful lives.
The Group does not disclose revenue and profit of the combined entities as if the acquisitions occurred at the beginning
of the reporting period, because the Group does not have access to the relevant information before the Group obtained
control over the businesses.
The Group acquired the following assets through business combinations:
Mirage Motors service station on 1 October 2016
Garden Route service station on 1 March 2017
Modderrivier OK and service station on 1 April 2017
Kempena Motors New Holland workshop and parts outlet on 1 August 2017
Sasol Motherwell service station on 1 August 2017
Sasol Stanford Road service station on 1 August 2017
Sasol Figtree service station on 1 August 2017
The assets and liabilities at the date of acquisition can be summarised as follows:
Sasol Sasol
Garden Mirage Modder- Kempena Mother- Stanford Sasol
Total Route Motors rivier Motors well Road Figtree
R R R R R R R R
Carrying value
Assets
Property, plant and equipment 53 185 10 175 2 738 6 930 100 9 410 11 117 12 715
Inventory 6 239 161 1 289 2 496 745 484 641 423
59 424 10 336 4 027 9 426 845 9 894 11 758 13 138
Fair value
Assets
Property, plant and equipment 43 067 4 529 4 841 11 975 100 8 490 8 618 4 514
Inventory 6 239 161 1 289 2 496 745 484 641 423
Deferred taxation (11 824) (1 260) (1 353) (3 179) - (2 377) (2 411) (1 244)
Goodwill 53 217 7 906 4 574 5 435 2 250 8 797 11 211 13 044
Purchase consideration paid in cash 90 699 11 336 9 351 16 727 3 095 15 394 18 059 16 737
The acquired businesses contributed as follows since acquisition to the Group's results:
Sasol Sasol
Garden Mirage Modder- Kempena Mother- Stanford Sasol
Total Route Motors rivier Motors well Road Figtree
R R R R R R R R
Revenue 91 669 1 761 35 332 31 925 1 478 7 887 7 377 5 909
Net profit/(loss) 2 361 (349) (744) 2 030 89 700 386 249
Corporate information
Directors
GM Steyn (Chairman)*#
S Walsh (Managing Director)
GW Sim (Financial Director)
BS du Toit*#
D du Toit*# (Appointed 1 March 2017)
JH le Roux*
EA Messina*# (Appointed 1 March 2017)
WC Michaels*# (Appointed 1 August 2017)
CA Otto*#
HM Smit*#
JH van Niekerk*#
S Totaram (Resigned 30 January 2017)
SJ Liebenberg (Resigned 1 March 2017)
NC Loubser (Resigned 1 March 2017)
HS Louw (Resigned 1 March 2017)
* Non-executive
# Independent
Transfer secretaries
Computershare Investor Services (Pty) Ltd
Registration number: 2004/003647/07
Rosebank Towers, 15 Biermann Avenue, Rosebank, Johannesburg, 2196
PO Box 61051, Marshalltown, 2107
Fax number: 086 636 7200
Company Secretary
RH Kostens
Registered address
65 Voortrekker Road, Malmesbury, 7300
PO Box 22, Malmesbury, 7299
Telephone number: 022 482 8000
Fax number: 022 482 8008
Web address: www.kaapagri.co.za
Auditors
PricewaterhouseCoopers Inc.
Sponsor
PSG Capital (Pty) Ltd
Registration number: 2006/015817/07
1st Floor, Ou Kollege, 35 Kerk Street, Stellenbosch, 7600
PO Box 7403, Stellenbosch, 7599
and
2nd Floor, 11 Alice Lane, Sandhurst, Sandton, 2196
PO Box 987, Parklands, 2121
www.kaapagri.co.za
Date: 29/11/2017 10:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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