Wrap Text
Annual Financial Results and Dividend
PHUMELELA GAMING AND LEISURE LIMITED
(Registration number 1997/016610/06)
Share code: PHM ISIN: ZAE000039269
The Groups audited summarised consolidated financial
statements for the year ended 31 July 2012
PBT FROM INTERNATIONAL OPERATIONS UP 63%
PBT FROM LOCAL OPERATIONS DOWN 43%
PAT UP 3%
HEPS UP 9%
DIVIDENDS FOR THE YEAR UP 12%
ENHANCED EMPOWERMENT SCORECARD
SUMMARISED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Audited Audited
31-Jul 31-Jul
% 2012 2011
change R000 R000
Income
Local operations 8 848 020 787 886
International operations (7) 88 514 95 287
6 936 534 883 173
Gross betting income
Local operations 8 823 717 765 243
International operations 45 872
2 823 717 811 115
Net betting income
Local operations 8 668 362 620 727
International operations 45 595
Net betting income 668 362 666 322
Other operating income
Local operations 7 163 400 152 248
International operations 71 89 044 52 140
Investment income
Local operations (3) 2 527 2 615
International operations 70 390
Net income 923 403 873 715
Operating expenses and overheads
Stakes 7 (165 149) (153 863)
Local operations 13 (595 548) (527 756)
International operations (31) (42 144) (60 667)
Profit before finance costs,
income tax depreciation and
amortisation (8) 120 562 131 429
Depreciation and amortisation 15 (38 016) (33 062)
Profit from operations (16) 82 546 98 367
Finance costs
Local operations (1 409) (452)
International operations (61)
Profit before share of profit
of equity accounted investees (17) 81 137 97 854
Share of profit of equity
accounted investees
Premier Gateway International 14 981
Automatic Systems Limited 563 336
Profit before income tax expense 96 681 98 190
Income tax expense (27 801) (31 429)
Profit for the year 3 68 880 66 761
Other comprehensive income net
of taxation
Exchange differences on
translating foreign operations 749 747
Total comprehensive income
for the year 3 69 629 67 508
Profit attributable to:
Equity holders of the parent 10 68 674 62 359
Non-controlling interest 206 4 402
Profit for the year 3 68 880 66 761
Total comprehensive income
attributable to:
Equity holders of the parent 10 69 423 63 106
Non-controlling interest 206 4 402
Total comprehensive income
for the year 3 69 629 67 508
Earnings per share (cents)
Basic 10 90.85 82.50
Diluted basic 9 89.09 82.08
SUPPLEMENTARY STATEMENT OF COMPREHENSIVE INCOME INFORMATION
Audited Audited
31-Jul 31-Jul
% 2012 2011
change R000 R000
Reconciliation of headline earnings
Earnings attributable to equity holders of parent 10 68 674 62 359
Adjusted for:
Net loss on disposal of property, plant and equipment 146 719
Tax effect (41) (201)
Headline earnings 9 68 779 62 877
Headline earnings per share (cents) 9 90.99 83.19
Diluted headline earnings per share (cents) 8 89.23 82.76
Net asset value per share (cents) 4 534.05 513.01
Dividend to shareholders
Interim dividend
Dividend per ordinary share (cents) 25.00 25.00
Final dividend
Dividend per ordinary share (cents) 51.00 43.00
Number of shares in issue 75 586 838 75 586 838
Weighted average number of shares in issue for basic and
headline earnings per share calculation 75 586 838 75 586 838
Weighted average number of shares in issue for diluted
earnings per share calculation 77 083 215 75 974 871
SUMMARISED CONSOLIDATED STATEMENTS OF CASH FLOW
Audited Audited
31-Jul 31-Jul
2012 2011
R000 R000
Net cash inflow from operating activities 53 883 67 243
Cash generated from operations 125 600 129 799
Movements in working capital 14 161 10 007
Cash generated from operating activities 139 761 139 806
Taxation paid (35 667) (23 656)
Investment income 2 597 3 005
Finance costs (1 409) (513)
Distributions to shareholders (51 399) (51 399)
Net cash outflow from investing activities (85 250) (48 181)
Acquisition of property, plant and equipment
and intangible assets (58 348) (53 822)
Proceeds on disposal of property, plant and equipment and
intangibles 6 500 4 667
Acquisition of non-controlling interest in Betting World
(Pty) Limited (16 978)
Disposal of controlling interest in Phumelela Gold
International Limited (25 478)
Increase in short-term loans to equity accounted investee (608)
Increase in investments (270)
Dividend received from equity accounted investee 9 932 974
Net cash outflow from financing activities
Decrease in short-term loans (5 362) (3 606)
Net (decrease)/increase in cash and cash equivalents (36 729) 15 456
Effect of conversion of foreign operations on cash and cash
equivalents 749
Cash and cash equivalents at beginning of year 133 001 117 545
Cash and cash equivalents at end of year 97 021 133 001
SUMMARISED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Audited Audited
31 July 31 July
2012 2011
R000 R000
ASSETS
Non-current assets 415 390 393 941
Property, plant and equipment 348 935 338 999
Intangible assets 37 863 34 113
Goodwill 12 227 12 227
Interest in equity accounted investees 10 032 3 811
Investments 1 161 891
Deferred taxation asset 5 172 3 900
Current assets 176 567 210 548
Inventories 5 707 5 799
Trade and other receivables 68 739 70 334
Income tax receivable 5 100 1 414
Cash and cash equivalents 97 021 133 001
Total assets 591 957 604 489
EQUITY AND LIABILITIES
Total equity 403 881 410 791
Share capital and premium 1 890 1 890
Retained earnings 401 319 386 159
Non-distributable reserves 466 (283)
Equity attributable to ordinary shareholders 403 675 387 766
Non-controlling interest 206 23 025
Non-current liabilities 5 809 7 165
Deferred taxation liability 4 160 5 346
Retirement benefit obligations 1 649 1 819
Current liabilities 182 267 186 533
Trade and other payables 179 267 176 711
Short-term loans from non-controlling interest 5 362
Contingent consideration liability 3 000 3 000
Income tax payable 1 460
Total equity and liabilities 591 957 604 489
SUMMARISED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Equity
Non- attributable Non-
Share distributable Retained to ordinary controlling Total
capital reserves earnings shareholders interest equity
R000 R000 R000 R000 R000 R000
Balance at 31 July 2010 1 890 (1 030) 375 199 376 059 18 623 394 682
Total comprehensive income for the year 747 62 359 63 106 4 402 67 508
Profit for the year 62 359 62 359 4 402 66 761
Foreign currency translation reserve 747 747 747
Dividends paid to equity holders of parent (51 399) (51 399) (51 399)
Balance at 31 July 2011 1 890 (283) 386 159 387 766 23 025 410 791
Acquisition of non-controlling
interest in Betting World (Pty) Limited (9 775) (9 775) (23 025) (32 800)
Total comprehensive income for the year 749 68 674 69 423 206 69 629
Profit for the year 68 674 68 674 206 68 880
Foreign currency translation reserve 749 749 749
Share based payment 7 660 7 660 7 660
Dividends paid to equity holders of parent (51 399) (51 399) (51 399)
Balance at 31 July 2012 1 890 466 401 319 403 675 206 403 881
REVIEW OF RESULTS
GROUP RESULTS
Profit before income tax (PBT) from international operations
surged by 63% underpinned by strong revenue growth from the
export of South African thoroughbred horseracing media
rights and concomitant betting thereon, further assisted by
the Rand weakening by approximately 10% against the Groups
major trading currencies. Conversely and despite a pleasing
45% increase in PBT from fixed odds operations, PBT from
local operations declined by 43%. Excluding the contribution
from fixed odds betting, totalisator (tote) betting on
soccer and rugby, limited payout machines (LPMs) and bingo
revenues the Groups traditional business of horseracing and
tote betting thereon is loss making.
Net betting income from tote betting on soccer and rugby
gained further momentum and increased by a pleasing 42%,
whilst net betting income from fixed odds operations
increased by 18% assisted by improved betting margins that
helped lift Group income by 6% to R937 million (2011: R883
million).
The Groups aggregate net betting income however increased
marginally to R668 million (2011: R666 million) mainly as a
consequence of the Isle of Man (IOM) tote operation, which
is equity accounted from 1 August 2011 through Premier
Gateway International and was consolidated in the previous
year.
Other operating income comprises, inter alia, commission
received from international totes betting on South African
racing, fees paid by offshore bookmakers for the rights to
display South African racing, local bookmakers levies,
unclaimed dividends and breakages, TellyTrack subscriptions,
share of profits from LPMs installed in retail outlets and
stable rentals. Other operating income increased by 24% to
R252 million (2011: R204 million). The increase was due
mainly to a 28% increase in commissions received from
international totes, a 74% increase in fees paid by offshore
bookmakers to display South African racing and a 31%
increase in LPM income.
Investment income decreased by 14% to R2,6 million (2011:
R3 million) primarily due to the decrease in cash and cash
equivalents.
Operating expenses and overheads increased by 8% to R803
million (2011: R742 million). Excluding stakes, which
increased by 7% to R165 million (2011: R154 million),
operating expenses and overheads increased by 8%.
Profit before finance costs, income tax, depreciation and
amortisation decreased by 8% to R121 million (2011: R131
million), primarily due to the IOM operation which is now an
equity accounted investee of the Group.
The Group invested a further R58 million in its capital
infrastructure and software development and as a consequence
the depreciation and amortisation charge increased by 15% to
R38 million (2011: R33 million).
Profit from operations decreased by 16% to R83 million
(2011: R98 million), again primarily due to the IOM
operation which is now an equity accounted investee of the
Group.
As a consequence of interest paid on the purchase of the
non-controlling interest in Betting World (Pty) Limited
(Betting World), finance costs increased to R1,4 million
(2011: R0,5 million).
Share of profit of equity accounted investees increased
sharply to R15,5 million (2011: R0,3 million) comprising R15
million from the IOM operation (previously a wholly owned
subsidiary of Phumelela Gold Enterprises and now an equity
accounted investee of the Group) and R0,5 million (2011:
R0,3 million) from Automatic Systems Limited (ASL a
company listed on the Mauritius Stock Exchange and one of
two licensed tote operators on the island).
Profit for the year increased by 3% to R68,9 million (2011:
R66,8 million). Attributable earnings benefitted from
Betting World becoming a wholly owned subsidiary of the
Group and increased by 10% to R68,7 million (2011: R62,4
million).
Earnings per share increased by 10% to 90.85 cents per share
(2011: 82.50 cents per share).
Headline earnings and headline earnings per share (HEPS)
increased by 9% to R68,8 million (2011: R62,9 million) and
90,99 cents per share (2011: 83.19 cents per share)
respectively. Diluted HEPS increased by 8% to 89,23 cents
per share (2011: 82.76 cents per share).
LOCAL OPERATIONS
Income from local operations increased by 8% to R848 million
(2011: R788 million) with income from fixed odds operations
up 22% to R107 million (2011: R87 million) and income from
totalisator, racing and other operations up 6% to R741
million (2011: R701 million).
Net betting income increased by 8% to R668 million (2011:
R621 million) comprising fixed odds operations which
increased by 18% to R93 million (2011: R79 million) and tote
operations which increased by 6% to R575 million (2011: R542
million).
Net betting income from tote operations was underpinned by a
pleasing 42% increase in other sports betting income to R89
million (2011: R63 million), driven primarily by increased
betting opportunities on soccer that include the Soccer 4,
Soccer 6, Soccer 10 and the recently launched Soccer 13 pool
which is hosted in Sweden. The Groups Rugby 5 bet launched
in September 2011 struggled to gain traction due to
inconsistent betting opportunities and contributed less than
1% to other sports betting income. Net betting income from
local and imported horseracing remained sluggish despite an
increase in the number of betting opportunities and
increased marginally to R486 million (2011: R479 million).
Net betting income from bookmaker related totalisator
agencies (excluding Betting World) decreased by 1% primarily
due to the Open Bet.
Fixed odds betting comprising 70% (2011: 76%) on
horseracing, 24% (2011: 22%) on other sports and 6% (2011:
2%) on numbers, increased by 10%. This increase coupled with
improved betting margins help lift net betting income by 18%
with net betting income on horseracing up 13% to R64 million
(2011: R57 million), on other sports up 6% to R19 million
(2011: R18 million) and on numbers up 157% to R10 million
(2011: R4 million). Betting margins on horseracing were
positively impacted by a competitive KwaZulu-Natal racing
season. The restructuring and closure of certain loss making
retail outlets in the Western Cape helped lift profit in the
second half of the year.
Other income increased by 7% to R163 million (2011: R152
million) assisted by a 31% increase in LPM income.
Operating expenses and overheads increased by 12% to R761
million (2011: R682 million). Excluding stakes, which
increased by 7% to R165 million (2011: R154 million),
operating expenses and overheads increased by 13% to R596
million (2011: R528 million) primarily due to employee,
legal, marketing and advertising, security, electricity,
fuel, lease rentals and regulatory compliance costs.
PBT from local operations decreased by 43% to R34 million
(2011: R60 million) with PBT from fixed odds operations up
45% to R25 million (2011: R17 million) and other local
operations down 78% to R9 million (2011: R43 million). The
Groups diversification strategy into tote betting on other
sports continues to assist local profitability.
INTERNATIONAL OPERATIONS
Following on Tabcorp Holdings Limiteds (Tabcorp)
acquisition of joint ownership of the IOM tote operation,
the IOM operation is now an equity accounted investee of the
Group, previously a wholly owned subsidiary of Phumelela
Gold Enterprises.
Regulatory constraints in Australia curtailed Tabcorps
ability to commence trading with the IOM operation. Despite
this the Groups share of profits from the IOM operation
increased by a satisfactory 19% to R27 million (2011: R23
million).
Income from other international operations increased by a
pleasing 68% to R89 million (2011: R53 million) assisted by
Rand weakness and increased revenues from Australia (11%),
Italy (19%), Turkey (34%) and Zimbabwe (187%) primarily due
to increased demand for South African racing and concomitant
betting thereon, and the UK (80%) through the agreement
concluded with Satellite Information Services Limited on 1
June 2011 effectively doubling the annual consideration for
the rights to provide South African racing broadcast to UK
bookmakers.
Operating expenses and overheads were impacted by Rand
weakness and equity accounting for the IOM operation and
decreased by 31% to R42 million (2011: R61 million).
Excluding the IOM operation from the comparative period,
operating expenses increased by 24% primarily due to
increased host track fees, consultants fees, broadcast and
data communication fees and a material increase in the
provision for bad debts to mitigate risk associated with the
European debt crisis.
The Groups share of profit from its equity accounted
investee, ASL increased by 67% to R563 000 (2011: R336 000).
PBT from international operations increased by 63% to R62
million (2011: R38 million) and equates to 64% (2011: 39%)
of the Groups PBT.
FINANCIAL POSITION
The Group has total assets of R592 million (2011: R604
million) including cash resources of R97 million (2011: R133
million) and insignificant gearing. The Groups net asset
value per share increased by 4% to 534,05 cents per share.
Cash generated from operations of R126 million (2011: R130
million) was utilised to pay income tax of R36 million
(2011: R24 million) and dividends of R51 million (2011: R51
million). A further R58 million (2011: R54 million) was
utilised for capital expenditure and software development
and R22 million (including R5,4 million in short-term loans
as part of net cash outflows from financing activities) in
part payment of the purchase consideration on acquisition of
the non-controlling interest in Betting World. The Group
sold fifty percent of its interest in the Isle of Man
operation to Tabcorp resulting in a cash outflow of R25,5
million on equity accounting for the IOM operation.
SHARE CAPITAL
There was no movement in share capital during the year under
review.
EMPOWERMENT CREDENTIALS
The Group remains committed to achieving AAA (Level 2
contributor) status as required by the various provincial
gambling regulators ahead of time. The Groups overall
scorecard improved by a further 5 points in the current
period to a total of 81.5 points, a mere 3.5 points short of
achieving the required status by 2015.
CORPORATE ACTIVITY
With effect from 1 August 2011:
? the Company acquired a further 41% shareholding in
Betting World (a fixed odds bookmaking concern) for R38
million inclusive of shareholder loans. Betting World
is now a wholly owned subsidiary of the Group; and
? Tabcorp Holdings Limited (Australia) acquired joint
ownership of the Groups IOM tote operation
establishing a strategic partnership with Phumelela
Gold Enterprises. The IOM tote operation is now an
equity accounted investee of the Group.
CAPITAL COMMITMENTS
Commitments in respect of capital expenditure approved by
directors.
2012 2011
R000 R000
Contracted for 4 178 4 221
Not contracted for 121 476 55 400
Capital commitments include R40 million for the installation
of a Polytrack and a general upgrade of facilities at
Fairview in the Eastern Cape contracted for after 31 July
2012 and R31 million for Betting World organic growth.
Capital commitments will be financed out of cash and cash
equivalents on hand or borrowing facilities as and when
required.
REPORTING ENTITY
Phumelela Gaming and Leisure Limited is a company domiciled
in South Africa. The summarised consolidated financial
statements as at and for the year ended 31 July 2012
comprises of the company and its subsidiaries and the
Groups interests in equity accounted investees.
SOCIAL RESPONSIBILITY
The Group recognises that it has a responsibility to the
broader community to act in a socially responsible manner,
for the benefit of all South Africans. Contributions to
selected training, sports and community service related
projects continue. The Group has adopted appropriate BEE and
employment equity, training and procurement policies.
SEGMENTAL ANALYSIS
The Group stages and broadcasts horseracing events and
offers betting opportunities on both South African and
international product in two geographic segments, namely
South Africa and the rest of the world. The reporting
segments are set out as local and international operations
with local further segmented into fixed odds and tote and
other operations.
Audited Audited
31-Jul 31-Jul
% 2012 2011
change R000 R000
LOCAL
Excluding fixed odds
Income 6 741 114 700 500
Net betting income
Horseracing 1 486 159 479 155
Other sports 42 88 822 62 601
Net betting income 6 574 981 541 756
Other income 8 157 250 144 956
Investment income 7 2 131 2 000
Net income 7 734 362 688 712
Stakes 7 (165 149) (153 863)
Operating expenses 13 (525 771) (463 358)
Profit before depreciation
and amortisation (39) 43 442 71 491
Depreciation and amortisation 13 (32 739) (28 876)
Profit before finance costs
and taxation (75) 10 703 42 615
Finance costs 3 783 (1 398) (36)
Profit before income tax
expense (78) 9 305 42 579
Fixed odds
Income 22 106 906 87 386
Net betting income
Horseracing 13 64 189 57 018
Other sports 6 19 029 17 992
Other 157 10 163 3 961
Net betting income 18 93 381 78 971
Other income (2) 6 150 6 297
Investment income 396 615
Net income 16 99 927 85 883
Operating expenses 8 (69 777) (64 398)
Profit before depreciation
and amortisation 40 30 150 21 485
Depreciation and amortisation 36 (5 103) (3 750)
Profit before finance costs
and taxation 41 25 047 17 735
Finance costs (97) (11) (416)
Profit before income
tax expense 45 25 036 17 319
INTERNATIONAL
Income (7) 88 514 95 287
Net betting income
Horseracing 45 595
Other income 68 89 044 53 135
Investment income (82) 70 390
Net income (10) 89 114 99 120
Operating expenses (31) (42 144) (60 667)
Profit before depreciation
and amortisation 22 46 970 38 453
Depreciation and amortisation (174) (436)
Profit before finance
costs and taxation 23 46 796 38 017
Finance costs (61)
Profit from operations 23 46 796 37 956
Share of profit of equity
accounted investees 4 526 15 544 336
Profit before income tax
expense 63 62 340 38 292
GROUP
Income 6 936 534 883 173
Net betting income
Horseracing (5) 550 348 581 768
Other sports 34 107 851 80 593
Other 157 10 163 3 961
Net betting income 668 362 666 322
Other income 24 252 444 204 388
Investment income (14) 2 597 3 005
Net income 6 923 403 873 715
Stakes 7 (165 149) (153 863)
Operating expenses 8 (637 692) (588 423)
Profit before depreciation
and amortisation (8) 120 562 131 429
Depreciation and amortisation 15 (38 016) (33 062)
Profit before finance
costs and taxation (16) 82 546 98 367
Finance costs (1 409) (513)
Profit before share of
equity accounted investees (17) 81137 97 854
Share of profit of equity
accounted investees 4 526 15 544 336
Profit before income
tax expense (2) 96 681 98 190
STATEMENT OF COMPLIANCE AND PRESENTATION
The summarised preliminary consolidated financial
information has been prepared in accordance with the
framework concepts, the recognition and measurement
requirements of IFRS, the presentation and the disclosure
requirements of IAS 34 Interim Financial Reporting, the
AC500 standards issued by the Accounting Practices Board,
the Listing Requirements of the JSE Limited and the
requirements of the South African Companies Act. The
financial information does not include all the information
required for full annual financial statements and should be
read in conjunction with the consolidated financial
statements of the Group as at and for the year ended 31 July
2011.
The summarised preliminary consolidated financial
information is presented in South African Rands rounded to
the nearest thousand, which is the Companys functional and
Groups presentation currency. They are prepared on the
historical cost basis, except for certain derivative
financial instruments that are recognised at fair value.
The accounting policies applied in the presentation of the
summarised preliminary consolidated financial information
are consistent with those applied for the year ended 31 July
2012, except for new standards and interpretations that
became effective on or after 1 August 2012 and deemed
applicable to the Group. The adoption of these standards and
interpretations had no impact on the results for the year
nor has it required the restatement of any prior year
figures.
The Board endorses the recommendations set out in King III
and supports the Code of Corporate Practices and Conduct
setout therein.
REPORT OF THE INDEPENDENT AUDITORS
The unmodified audit reports of KPMG Inc., the independent
auditors, on the annual financial statements and the
summarised financial statements contained herein for the
year ended 31 July 2012, dated 25 September 2012, are
available for inspection at the registered office of the
company.
SUBSEQUENT EVENTS
There are no subsequent events that have an impact on the
financial statements at 31 July 2012.
The Group is in the process of unbundling its indirect
investment in ASL held through Phumelela Gold Enterprises
with a view of holding the shares in ASL directly. Phumelela
and Gold Circle have agreed to distribute the shares in
equal proportion between them.
As reported in the annual financial statements for the year
ended 31 July 2011, Phumelela and Gold Circle received
notice on 1 July 2011, from the Competition Commission (the
Commission) of a complaint lodged by Africa Race Group (Pty)
Limited alleging, inter alia, price fixing and market
allocation. The Company submitted a formal response to the
allegations and awaits the Commissions findings.
In a separate matter, on 19 March 2012, the Commission
issued a ruling prohibiting the previously reported
acquisition by Kenilworth Racing (Pty) Limited (Kenilworth)
of the Western Cape business of Gold Circle and
simultaneously the Thoroughbred Horseracing Trusts
acquisition of the entire issued equity in Kenilworth. The
parties have lodged an appeal to the Commissions decision
with the Competition Tribunal. The Tribunal hearing is
scheduled for October 2012.
The report on the review of the South African gambling
industry prepared by the Gambling Review Commission and
submitted to the Minister of Trade and Industry was
published in July 2011. The Group submitted its comments on
the Commissions recommendations on the 9th of September
2011. The final report of the Sub-committee on Gamblings
Consideration of the Gambling Review Commissions report was
released on 6 March 2012. It is pleasing to note that the
Sub-committees recommendations address some of the issues
raised in our submission. Most notably the Sub-committees
recommendations include, outlawing the open bet practiced
by bookmakers, allowing race operators to determine the
number of tracks and races, that intellectual property
should be recognised and leveraged by sporting codes and
that race tracks should be upgraded to include 40 medium
stake LPMs and other entertainment and social activities.
Disappointingly the Sub-committee did not address the R42
million annual cost of the National Horseracing Authority
(NHA) funded by Phumelela and Gold Circle. According to the
National Gambling Boards statistics for 2012, bookmakers
collectively generate more turnover on horseracing than
totalisator operators do. It stands to reason that
bookmakers benefit equally if not more than totalisator
operators from the regulatory functions performed by the NHA
and should accordingly fund a fair and equitable portion of
the annual running costs of the NHA. The Sub-committees
proposal for a Commission of Enquiry into horseracing and
betting is therefore welcomed.
RELATED PARTIES
There have been no significant changes in related party
relationships since the previous year.
Other than in the normal course of business, there have been
no significant transactions during the year with equity
accounted investees, joint operations and other related
parties.
DIRECTORS
There was no change to the composition of the Board during
the year under review.
Mr A F Wintour retired from the office of Company Secretary
on 30 June 2012. The Board extends its appreciation for his
invaluable contribution during his term of office and wishes
him well in his retirement.
Mr R Gopaul was appointed to the position of Company
Secretary effective from 1 July 2012.
PROSPECTS
The Groups tote sports pools, fixed odds betting and
international operations continue to enjoy buoyant demand.
The profitability of the Groups traditional business of
staging horseracing and offering tote betting thereon
remains of concern and continues to receive managements
full attention.
Management continues to target growth in earnings for the
2013 financial year.
Any forward looking statements of forecasts contained in
these results have not been reviewed or reported on by the
Group auditors.
CASH DIVIDEND TO SHAREHOLDERS
Notice is hereby given that the Board has declared a final
cash dividend from income reserves of 51 cents per share
(43.35 cents per share net of dividend withholding tax at a
rate of 15%) payable to shareholders recorded in the
register on Friday 26 October 2012. The Company has no
secondary tax on companies credits available. The issued
share capital at the declaration date is 77 101 885 ordinary
shares. Shareholders are advised that the last date to trade
cum distribution will be Friday 19 October 2012. As from
commencement of business on Monday 22 October 2012 all
trading in Phumelela shares will be ex distribution.
Payment will be made on Monday 29 October 2012. Share
certificates may not be dematerialised or rematerialised
between Monday 22 October 2012 and Friday 26 October 2012,
both days inclusive. The Companys tax reference number is
9171/393/84/7.
For and on behalf of the Board
M P MALUNGANI W A du PLESSIS
Chairman Group Chief Executive
Johannesburg 25 September 2012
Directors: M P Malungani (Chairman), W A du Plessis* (Group
Chief Executive), A W Heide* (Finance Director and COO),
R Cooper, M J Jooste, B Kantor, S K C Khampepe, N J Mboweni
(Mrs), V J Moodley*, Dr E Nkosi, M L Ramafalo*, J A Stuart*,
C J H van Niekerk, J B Walters
(*Executive)
Company Secretary: R Gopaul
Mr B McLoughlin C.A. (S.A.) (Chief Financial Officer) was responsible for
supervising the preparation of the annual financial statements and preparing
the summarised financial statements.
Registered Office: Turffontein Racecourse, 14 Turf Club
Street, Turffontein
Transfer Secretaries: Computershare Investor Services
(Pty) Limited
Sponsor: Investec Bank Limited
Web site: www.phumelela.com
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