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ERRATA: Annual finantial statements for the 12 months ended 30 JUNE 2011 and the 6 months ended 31 DECEMBER 2011
RARE Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration Number: 2002/025247/06)
Share Code: RAR ISIN: ZAE000092714
(“RARE” or “the Company” or “the Group”)
ERRATA: ANNUAL FINANCIAL STATEMENTS FOR THE 12 MONTHS ENDED 30 JUNE
2011 AND THE 6 MONTHS ENDED 31 DECEMBER 2011
The financial results contains the following modifications to the
audited results for the 12 months ended 30 June 2011 and the
unaudited results for the 6 months ended 31 December 2011 published
on SENS on 14 November 2011 and 14 March 2012, respectively.
FOR THE 12 MONTHS ENDED 30 JUNE 2011
Consolidated statement of comprehensive income
Audited Adjusted
12 months 12 months
June June
2011 2011 R change
R’000 R’000 R’000
Revenue 315 165 315 165 -
Cost of Sales (261 951) (275 970) (14 019)
Gross Profit 53 214 39 195 (14 019)
Other Income 51 970 51 970 -
Operating Expenses (152 956) (152 956) -
EBITDA (52 079) (66 098) (14 019)
Depreciation and amortisation (5 897) (5 897) -
Investment Income 2 261 2 261 -
Finance Costs (17 571) (17 571) -
Loss before taxation (68 981) (83 000) (14 019)
Income tax 2 038 2 038 -
Loss for the period from continuing
operations (66 943) (80 962) (14 019)
Loss for the period from
discontinuing operations (58 464) (58 464) -
Attributable to:
Equity holders of the parent (91 430) (105 449) (14 019)
Non-controlling interest (33 977) (33 977) -
Weighted average number of ordinary
shares in issue 104 091 104 091 -
Loss per ordinary share
(cents)(basic and diluted) (87.94) (101.30) (13.47)
Reconciliation of headline earnings
Loss attributable to equity holders
of the parent (91 430) (105 449) (14 019)
Impairment of goodwill 5 284 5 284 -
Impairment of loans receivable 59 724 59 724 -
Impairment of investment 64 64 -
Profit on disposal of Angolan
entities (35 867) (35 867) -
Loss on disposal of property, plant
and equipment 72 72 -
Headline loss attributable to
ordinary shareholders from
continuing and discontinuing
operations (basic and diluted) (62 153) (76 172) (14 019)
Headline loss attributable to
ordinary shareholders from
discontinuing operations (24 487) (24 487) -
Headline loss per share from
continuing operations (36.19) (49.65) (5.61)
Headline loss from discontinued
operations (basic and diluted) (23.52) (23.53) (7.86)
Headline loss from continuing and
discontinued operations (basic and
diluted)From discontinued
operations (59.71) (73.18) (13.47)
Condensed consolidated statement of other comprehensive income
Audited Adjusted
12 months 12 months
June June
2011 2011 R Change
R’000 R’000 R’000
Loss for the period (125 407) (139 426) (14 019)
Exchange difference on translating
foreign operations 1 523 1 523 -
Gains/(losses) on property
revaluation (2 177) (2 177) -
Realisation of revaluation reserve
on disposal (13 350) (13 350) -
Taxation related to components of 625 625 -
other comprehensive income
Total comprehensive loss for the
year net of taxation (138 956) (152 975) (14 019)
Consolidated statement of financial position
Audited Adjusted
12 months 12 months
June June
2011 2011 R Change
R’000 R’000 R’000
Assets
Non-current assets
Property, plant and equipment 60 444 60 444 -
Goodwill 457 457 -
Intangible assets 6 093 6 093 -
Investment in associates 900 900 -
Other financial assets 285 285 -
Deferred taxation 5 671 5 671 -
73 850 73 850 -
Current Assets
Inventories 115 321 115 321 (9 023)
Loan to associates 3 189 3 189 -
Trade and other receivables 106 051 106 051 (4 996)
Other financial assets 10 041 10 041 -
Construction contracts and
receivables 7 745 7 745 -
Current taxation receivable 2 452 2 452 -
Prepayments 243 243 -
Cash and equivalents 10 504 10 504 -
255 546 241 527 (14 019)
Total Assets 329 396 315 377 (14 019)
Equity and liabilities
Equity
Share capital 112 876 112 876 -
Reserves 5 856 5 856 -
(Accumulated loss)/Retained income (53 181) (67 200) (14 019)
Equity attributable to equity
holders of parent 65 551 51 532 (14 019)
Non-controlling interest - - -
65 551 51 532 (14 019)
Liabilities
Non-current liabilities
Other financial liabilities 8 132 8 132 -
Operating lease liability 116 116 -
Deferred taxation 757 757 -
9 005 9 005 -
Current liabilities
Trade and other payables 138 214 138 214 -
Other financial liabilities 113 247 113 247 -
Current tax payable 439 439 -
Loans from minority shareholders 2 940 2 940 -
254 840 254 840 -
Total liabilities 263 845 263 845 -
Total equity and liabilities 329 396 329 396 -
Net asset value per share (cents) 22.70 17.85 (4.85)
Net tangible asset value per share
(cents) 20.43 15.58 (4.85)
Consolidated statement of changes in equity
Audited Adjusted
12 months 12 months
June June
2011 2011 R Change
R’000 R’000 R’000
Opening balance 116 581 116 581 -
Changes in equity -
Loss for the year (91 430) (105 449) (14 019)
Foreign currency revaluation
reserve (341) (341) -
Revaluation reserve (8 849) (8 849) -
Sale of treasury shares 278 278 -
Non-controlling interest 9 312 9 312 -
Issue of shares 40 000 40 000 -
Total changes (51 030) (65 049) (14 019)
Closing balance 65 551 51 532 (14 019)
Comprising of:
Share capital 2 886 2 886 -
Share premium 109 990 109 990 -
Foreign currency revaluation
reserve - - -
Revaluation reserve 5 856 5 856 -
Retained income (53 181) (67 200) (14 019)
Total equity 65 551 51 532 (14 019)
Consolidated cash flow statement
Audited Adjusted
12 months 12 months
June June
2011 2011 R Change
R’000 R’000 R’000
Cash flows from operating
activities
Cash generated from/(used
in)operations (14 432) (14 432) -
Interest income 300 300 -
Finance costs (15 797) (15 797) -
Tax received/(paid) 1 749 1 749 -
Net cash from operating activities (28 180) (28 180) -
Cash flow from investing activities
Purchase of property, plant and
equipment (3 641) (3 641) -
Sale of property, plant and
equipment 295 295 -
Purchase of other intangible assets (4 547) (4 547) -
Loans advanced to group companies
repaid (20 148) (20 148) -
Loans to group companies repaid 906 906 -
Sale of other financial assets 8 385 8 385 -
Purchase of other financial assets (12 985) (12 985) -
Net cash from investing activities (31 737) (31 737) -
Cash flows from financing
activities
Proceeds from share issue 40 000 40 000 -
Proceeds from other financial
liabilities 3 495 3 495 -
Repayment from other financial
liabilities (4 408) (4 408) -
Net cash from financing activities 39 087 39 087 -
Total cash movement for the period (20 830) (20 830) -
Cash at the beginning of the period 28 393 28 393 -
Total cash at end of the period 7 563 7 563 -
FOR THE 6 MONTHS ENDED 31 DECEMBER 2011
Consolidated statement of comprehensive income
Adjusted
6 months 6 months
December December
2011 2011 R change
R’000 R’000 R’000
Revenue 174 238 174 238 -
Cost of Sales (174 662) (165 639) 9 023
Gross Profit (424) 8 599 9 023
Other Income 577 577 -
Operating Expenses (53 194) (48 198) 4 996
EBITDA (53 041) (39 022) 14 019
Depreciation and amortisation (3 552) (3 552) -
Investment Income 35 35 -
Finance Costs (11 450) (11 450) -
Loss before taxation (68 008) (53 989) 14 019
Income tax (2 162) (2 162) -
Loss for the period from continuing
operations (70 170) (56 151) 14 019
Loss for the period from
discontinuing operations (13 374) (13 374) -
Attributable to:
Equity holders of the parent (85 297) (71 278) 14 019
Non-controlling interest 1 753 1 753 -
Weighted average number of ordinary
shares in issue 292 449 292 449 -
Loss per ordinary share (cents)
From continuing and discontinued
operations (basic and diluted) (29.17) (24.37) 4.80
From discontinued operations (4.57) (4.57) -
Headline earnings per share
Loss attributable to equity holders
of the parent (85 297) (71 278) 14 019
Impairment of goodwill 457 457 -
Impairment of loans receivable 1 393 1 393 -
Loss on disposal of property, plant
and equipment 571 571 -
Headline loss attributable to
ordinary shareholders from
continuing and discontinuing
operations (82 876) (68 857) 14 019
Discontinuing operations (13 374) (13 374) -
Weighted average number of ordinary
shares in issue 292 449 292 449 -
Headline loss per ordinary share
(cents)
From continuing and discontinued
operations (basic and diluted) (28.34) (23.54) 4.80
From continuing operations (23.77) (18.97) 4.80
From discontinued operations (4.57) (4.57) -
Condensed consolidated statement of other comprehensive income
Adjusted
6 months 6 months
December December
2011 2011 R Change
R’000 R’000 R’000
Loss for the period (83 544) (69 525) 14 019
Total comprehensive loss for the
year net of taxation (83 544) (69 525) 14 019
Consolidated statement of financial position
Adjusted
6 months 6 months
December December
2011 2011 R Change
R’000 R’000 R’000
Assets
Non-current assets
Property, plant and equipment 68 013 68 013 -
Intangible assets 2 897 2 897 -
Investment in associates 900 900 -
Deferred taxation 5 671 5 671 -
Current Assets
Inventories 50 262 50 262 -
Loan to associates 2 574 2 574 -
Trade and other receivables 57 092 57 092 -
Other financial assets 245 245 -
Current taxation receivable 1 088 1 088 -
Prepayments 816 816 -
Cash and equivalents 14 626 14 626 -
Total Assets 204 184 204 184 -
Equity and liabilities
Equity
Share capital 142 525 142 525 -
Reserves 5 856 5 856 -
(Accumulated loss)/Retained income (138 478) (138 478) -
Equity attributable to equity
holders of parent 9 903 9 903 -
Non-controlling interest 2 281 2 281 -
12 184 12 184 -
Liabilities
Non-current liabilities
Other financial liabilities 6 548 6 548 -
Operating lease liability 115 115 -
Deferred taxation 1 537 1 537 -
8 200 8 200 -
Current liabilities
Trade and other payables 67 899 67 899 -
Other financial liabilities 115 271 115 271 -
Current tax payable 391 391 -
Loans from minority shareholders 239 239 -
Total liabilities 192 000 192 000 -
Total equity and liabilities 204 184 204 184 -
Consolidated statement of changes in equity
Adjusted
6 months 6 months
December December
2011 2011 R Change
R’000 R’000 R’000
Opening balance 65 551 51 532 (14 019)
Changes in equity
Loss for the year (85 297) (71 278) 14 019
Non-controlling interest 1 752 1 752 -
Issue of shares 29 700 29 700 -
Investment in subsidiary 529 529 -
Purchase of treasury shares (51) (51) -
Total changes (53 367) (39 348) 14 019
Closing balance 12 184 12 184 -
Comprising of:
Share capital 5 385 5 385 -
Share premium 137 140 137 140 -
Revaluation reserve 5 856 5 856 -
Retained income (138 478) (138 478) -
Non-controlling interest 2 281 2 281 -
Total equity 12 184 12 184 -
Consolidated cash flow statement
Adjusted
6 months 6 months
December December
2011 2011 R Change
R’000 R’000 R’000
Cash flows from operating
activities
Cash generated from/(used
in)operations (16 060) (16 060) -
Interest income 35 35 -
Dividends received - - -
Finance costs (11 450) (11 450) -
Tax received/(paid) (2 162) (2 162) -
Net cash from operating activities (29 637) (29 637) -
Cash flow from investing activities
Purchase of property, plant and
equipment (7 570) (7 570) -
Purchase of other intangible assets 3 196 3 196 -
Loans to group companies repaid 612 612 -
Sale of other financial assets 10 081 10 081 -
Net cash from investing activities 6 319 6 319 -
Cash flows from financing
activities
Proceeds from share issue 29 700 29 700 -
Proceeds from other financial
liabilities 680 680 -
Net cash from financing activities 30 380 30 380 -
Total cash movement for the period 7 062 7 062 -
Cash at the beginning of the period 7 564 7 564 -
Total cash at end of the period 14 626 14 626 -
The reason for the restated results contained in this announcement
arose from prior period adjustments, incorrectly accounted for in the
6 month period ended 31 December 2011, that should have been
recognised at the end of the 12 month period, ended 30 June 2011, due
to the following factors detailed below:
The prior period adjustments have been adjusted, and will be
disclosed accordingly in the comparative results, relating to the 30
June 2012 results, to be released on SENS on Friday 28 September and
to be posted to shareholders on or about 22 October 2012.
Inventory - R9m
The Company implemented a new information and accounting system ('the
2011 system') during the 2011 financial year. Notwithstanding
concerted efforts by previous management to integrate and effectively
implement the inventory module of the 2011 system, certain system and
human errors occurred during the implementation leading to inaccurate
and overstated inventory. Previous management resigned when the
differences and problems became evident.
An investigation concluded that inventory was overstated and some
amounts pertained to the inventory figure at 30 June 2011. The
differences include double counting, input, production and
reconciliation errors amounting to R6.2m. Previous management
capitalised a portion of the overheads to inventory based on their
assumptions and allocations. New management differed in the
assumptions and allocations which resulted in a prior year adjustment
amounting to R2.7m.
The Company replaced the 2011 system with a new uncomplicated and
well supported system on 1 July 2012 (‘the ERP system’).
Unrecorded liability - R5m
Expenses relating to a contract in Ghana were not provided for in the
prior year.
Johannesburg
27 September 2012
Designated Adviser: PSG Capital (Pty) Limited
Date: 27/09/2012 05:16:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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