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Restatement of Results for the years ending 30 June 2014 and 30 June 2013
Orion Real Estate Limited
(Incorporated in the Republic of South Africa)
(Registration number 1997/021085/06)
Share code: ORE ISIN: ZAE000075651
("Orion Real Estate" or "the company" or "the Group")
RESTATEMENT OF RESULTS FOR THE YEARS ENDING 30 JUNE 2014 AND 30 JUNE 2013
Shareholders are advised that the audited financial statements for the year ended
30 June 2013 were selected for review as part of the JSE’s pro-active monitoring
process. After a series of questions and responses through the pro-active monitoring
process, the JSE has requested a restatement of the results for the year ended 30 June
2013, which in turn has impacted on the results for the year ended 30 June 2014,
requiring a restatement of the annual financial statements for 30 June 2014.
Consolidated Statement of Financial Position
Year ended 30 June 2013
Previously Restated
stated
Figures in Rand
Non-current assets 748 712 118 745 310 508
Trade and other receivables 14 323 895 10 922 285
Current assets 31 332 290 29 631 485
Trade and other receivables 21 404 542 19 703 737
Total assets 804 694 408 799 591 993
Retained earnings 334 192 893 329 090 478
Total equity attributable to
Owners of the parent 419 104 305 414 001 890
Total equity 418 833 093 413 730 678
Total equity and liabilities 804 694 408 799 591 993
Net asset value per linked unit
at year-end (cents) 75.52 74.71
Items Restated in Consolidated Statements of Comprehensive Income
Previously Restated
Stated Year ended Year ended
Figures in Rand 30 June 2013 30 June 2013
Fair value adjustment to debtors - (5 102 415)
Operating profit before interest 57 275 585 52 173 170
Profit before taxation 37 044 144 31 941 729
Profit for the year 30 464 049 25 361 634
Total comprehensive income
for the year 30 464 049 25 361 634
Attributable to:
Owners of the parent 30 467 835 25 365 420
Non-controlling interest (3 786) (3 786)
30 464 049 25 361 634
Basic earnings per linked unit
(cents) 4,86 4,05
Diluted earnings per linked unit
(cents) 4,86 4,05
Headline earnings per linked unit
(cents) 0,30 (0,51)
Diluted headline earnings per
linked unit (cents) 0,30 (0,51)
Previously Stated Restated
Year ended Year ended
Figures in Rand 30 June 2014 30 June 2014
Fair value adjustment to debtors (446 238) 4 656 177
Operating profit before interest 61 800 241 66 902 656
Profit before taxation 44 900 745 50 003 160
Profit for the year 34 820 256 39 922 671
Total comprehensive income
for the year 34 820 256 39 922 671
Attributable to:
Owners of the parent 34 819 171 39 921 586
Non-controlling interest 1 085 1 085
34 820 256 39 922 671
Basic earnings per linked unit
(cents) 5,55 6,37
Diluted earnings per linked unit
(cents) 5,55 6,37
Headline earnings per linked unit
(cents) 0,62 1,44
Diluted headline earnings per
linked unit (cents) 0,62 1,44
Consolidated Statements of Changes in Equity
for the year ended 30 June 2014
Share Share Total share capital Debenture
Figures in Rand capital premium and premium Reserve
Balance at 30 June 2012 6 270 098 67 965 428 74 235 526 10 675 886
Total comprehensive income
for the year – profit/(loss) – – – –
Balance at 30 June 2013 6 270 098 67 965 428 74 235 526 10 675 886
Total comprehensive income
for the year – profit – – – –
Balance at 30 June 2014 6 270 098 67 965 428 74 235 526 10 675 886
Retained Non-controlling Total
Earnings Total interest equity
Balance at 30 June 2012 303 725 058 388 636 470 (267 426) 388 369 044
Total comprehensive
income for the year –
profit/(loss)as
previously stated 30 467 835 30 467 835 (3 786) 30 464 049
Restatement for
discounting of
debtors (5 102 415) (5 102 415) - (5 102 415)
Balance at 30 June 2013 329 090 478 414 001 890 (271 212) 413 730 678
Total comprehensive
Income for the year –
Profit as previously
Stated 34 819 171 34 819 171 1 085 34 820 256
Restatement for
discounting of
debtors 5 102 415 5 102 415 - 5 102 415
Balance at 30 June 2014 369 012 064 453 923 476 (270 127) 453 653 349
The nature of the restatement relates to the discounting of related party debtors. No
discount rate was being applied for the year ended 30 June 2013, based on the
directors judgement at the time of finalisation of the audited financial statements.
Utilising a discount rate of 9% (calculated at prime plus 0.5%) the fair value for the
related party debtors was calculated to be R 17 836 073 as opposed to the carrying
amount as per the annual financial statements for the year ended 30 June 2013 of R22
938 488.
The overstatement is considered material both in the context of the debtors balance
(which was overstated by 22.2%) and on the profit for the year (which was overstated
by 16.7%).
The following IFRS 7 disclosures will require adjustment in the notes to the Annual
Report for the year ended 30 June 2013:
- The value of trade receivables exposed to interest rate & cash flow interest
rate risk will be R19 703 737 for a period of less than 1 year and R10 922 285
for a period of between 1 and 5 years.
- Trade receivables disclosed in the note of financial instruments by category
will be R27 022 841(previously R32 125 256).
- Credit exposure due to trade receivables will be:
Trade receivable 28 842 570
Less: Provision for impairment of trade receivables (1 865 594)
Less: Deposits held (6 371 863)
20 605 113
It is advised that the Company has applied a market related discount rate in its
annual financial statements for the year ended 30 June 2014.
By order of the board
Johannesburg
12 December 2014
Sponsor
Arbor Capital Sponsors Proprietary Limited
Date: 12/12/2014 04:58:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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