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Afrox - Restatement of comparative figures as a result of the first-time
adoption of International Financial Reporting Standards
African Oxygen Limited
(Incorporated in the Republic of South Africa)
(Registration number 1927/000089/06)
JSE code: AFX
NSX code: AOX
ISIN: ZAE000067120
("Afrox" or "the company" or "the Group")
RESTATEMENT OF COMPARATIVE FIGURES AS A RESULT OF THE FIRST-TIME ADOPTION OF
INTERNATIONAL FINANCIAL REPORTING STANDARDS ("IFRS")
Afrox has reported results to 30 September 2005 according to SA Generally
Accepted Accounting Practice (SA GAAP). For the financial year ending 30
September 2006, the Group is required, in terms of the Listings Requirements of
the JSE Limited, to report its results in accordance with IFRS.
The Group"s opening balance sheets on 1 October 2004 and 1 October 2005 and the
comparative information for the year ended 30 September 2005 have accordingly
been restated to comply with IFRS.
The following significant changes in terms of IFRS have been made:
1. Share based payments
The group has applied IFRS 2 from 1 October 2004 to those Share
Appreciation Rights, which had been issued but not vested by 1 October
2004. The full liability for these amounts has been raised in the opening
balance sheet and in the 2005 comparative income statement.
2. Leases
Certain long term operating leases of buildings have been reclassified as
finance leases. This reclassification relates to Afrox Healthcare. The
fixed assets and the loan finance has been recognised on the balance sheet.
As a result of this the profit on sale of investment has been restated.
3. Taxation
Taxation has been provided on the restatement of reserves resulting from
restatement of income statement amounts.
Deferred taxation has been provided against revaluation reserves arising on the
revaluation of fixed assets.
SUMMARISED BALANCE SHEET As at 1 October 2004
30 Sept 2004 Total 1 October
2004
Audited
Restated*
R"000 SA GAAP IFRS effects IFRS
ASSETS
Non-current assets 3,530,712 263,916 3,794,628
Property, plant and equipment 3,048,255 263,916 3,312,171
Intangibles 4,149 - 4,149
Goodwill 170,685 - 170,685
Associate investment 120,925 - 120,925
Other Investments 22,239 - 22,239
Non-current Receivables 55,212 - 55,212
Retirement Benefit Asset 32,198 - 32,198
Deferred Tax 77,049 - 77,049
Current assets 2,100,642 - 2,100,642
Inventories 406,544 - 406,544
Trade and Other Receivables 1,198,927 - 1,198,927
Group Companies 14,222 - 14,222
Cash and cash equivalents 480,949 - 480,949
Total assets 5,631,354 263,916 5,895,270
EQUITY AND LIABILITIES
Capital and reserves 2,663,079 (84,666) 2,578,413
Share Capital 17,143 - 17,143
Share premium 537,314 - 537,314
Accumulated profits and 2,108,622 (84,666) 2,023,956
reserves
Minority interest 752,594 (17,802) 734,792
Non-current liabilities 538,910 377,756 916,666
Interest Bearing Borrowings 370,533 - 370,533
Property finance leases 44,570 380,614 425,184
Deferred Tax 123,807 (2,858) 120,949
Current liabilities 1,676,771 (11,372) 1,665,399
Trade and other payables 1,078,408 - 1,078,408
Provisions 220,912 (11,372) 209,540
Current portion of borrowings 237,056 - 237,056
Group Companies 6,777 - 6,777
Taxation 130,554 - 130,554
Bank overdraft 3,064 - 3,064
Total equity and liabilities 5,631,354 263,916 5,895,270
Net Asset Value per Share 777 (25) 752
(cents)
*These figures were adjusted / extended to
take account of the revised or new
accounting standards implemented by the
Group in 2005 relating to AC128 (impairment
of assets), AC129 (intangible assets) as
well as the adoption of straight line rental
expenses of leases.
SUMMARISED BALANCE SHEET Opening Balance Sheet 1 October
2005
30 Sept Total 1 October
2005 2005
Audited
SA GAAP IFRS IFRS
effects
ASSETS
Non-current assets 2,180,244 (1,300) 2,178,944
Property, plant and 1,664,795 - 1,664,795
equipment
Intangibles 18,205 - 18,205
Goodwill 32,373 - 32,373
Associate investment 378,790 (1,300) 377,490
Other Investments 200 - 200
Non-current Receivables 19,153 - 19,153
Retirement Benefit Asset 63,552 - 63,552
Deferred Tax 3,176 - 3,176
Current assets 1,065,360 - 1,065,360
Inventories 325,706 - 325,706
Trade and Other Receivables 543,554 - 543,554
Group Companies 28,681 - 28,681
Cash and cash equivalents 167,419 - 167,419
Total assets 3,245,604 (1,300) 3,244,304
EQUITY AND LIABILITIES
Capital and reserves 1,719,622 (80,235) 1,639,387
Share Capital 15,428 - 15,428
Share premium 537,314 - 537,314
Accumulated profits 1,166,880 (80,235) 1,086,645
Minority interest 12,083 - 12,083
Non-current liabilities 612,771 (20,835) 591,936
Interest Bearing Borrowings 466,856 - 466,856
Deferred Tax 145,915 (20,835) 125,080
Current liabilities 901,128 99,770 1,000,898
Trade and other payables 506,191 - 506,191
Provisions 105,685 99,770 205,455
Current portion of 56,923 - 56,923
borrowings
Group Companies 3,486 - 3,486
Taxation 223,653 - 223,653
Bank overdraft 5,190 - 5,190
Total equity and 3,245,604 (1,300) 3,244,304
liabilities
Net Asset Value per Share 557 (26) 531
(cents)
SUMMARISED INCOME STATEMENT 12 months to 30 September 2005
30 Sept Total 30 Sept
2005 2005
Audited
R"000 SA GAAP IFRS IFRS
effects
Revenue 5,852,639 - 5,852,639
Cost of sales (3,959,861) - (3,959,861)
Gross profit 1,892,778 - 1,892,778
Other operating income 11,020 - 11,020
Administration and other (916,737) (64,245) (980,982)
expenses
Operating profit 987,061 (64,245) 922,816
Net profit on sale of 1,050,726 34,051 1,084,777
shares in Investment
Profit from operations 2,037,787 (30,194) 2,007,593
Finance costs 980 - 980
Income from associates 76,163 (1,300) 74,863
Profit before taxation 2,114,930 (31,494) 2,083,436
Income tax expense (651,155) 13,689 (637,466)
Profit For the Period 1,463,775 (17,805) 1,445,970
Attributable to :
Equity holders of the 1,365,669 (15,279) 1,350,390
company
Minority Interest 98,106 (2,526) 95,580
1,463,775 (17,805) 1,445,970
Headline Earnings per share 142.6 (14.7) 127.9
Basic Earnings per share 408.2 (4.6) 403.6
(cents)
No of shares in issue 308,567,602
No of shares used for 334,587,037
Earnings Calculation
Headline Earnings Adjustments made up
of
Share Appreciation rights (56,013)
Lease Expense (8,232)
Associates (1,300)
Taxation 13,689
Minorities 2,526
Headline Earnings (49,330)
Profit on sale of 34,051
investment
Basic Earnings (15,279)
Disclaimer:
At this stage, the information provided
above has not been reviewed or audited by
the Group"s auditors.
Although the above information is based on
management"s best knowledge of expected
standards and interpretations and current
facts and circumstances, this information
may change. Therefore, until the Group
prepares its first full IFRS financial
statements in respect of the year ending 30
September 2006, the possibility cannot be
excluded that this preliminary IFRS
information may need to be adjusted.
Johannesburg
11 January 2006
Sponsor:
Barnard Jacobs Mellet Corporate Finance
(Pty) Limited
Date: 11/01/2006 02:09:40 PM Supplied by www.sharenet.co.za
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