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GRAND PARADE INVESTMENTS LIMITED - Reviewed results for the year ended 30 June 2013

Release Date: 02/09/2013 12:30
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Reviewed results for the year ended 30 June 2013

Grand Parade Investments Limited
(Incorporated in the Republic of South Africa)
Registration number 1997/003548/06
Share code: GPL
ISIN: ZAE00119814
("GPI" or "the company" or "the Group")

Reviewed results for the year ended 30 June 2013

Highlights

14%
Increase
in Group revenue

17%
Increase
in Slots Group GGR

6%
Increase
in adjusted
headline earnings
per share

Increase
of 20%
on ordinary
dividend to
15 cents
per share

Acquired and
completed
redevelopment
of head office
building

1st
BURGER KING(R)
store generated
R5 million
revenue in
7 weeks

Condensed Group Statement of Comprehensive Income
for the year ended 30 June 2013

                                                             Reviewed      Restated
                                                              30 June       30 June
                                                                 2013          2012          %
                                                   Notes       R'000s        R'000s     change
Revenue                                                1      489 353       430 651         14
Cost of sales                                          2    (276 622)     (231 248)         20
Gross profit                                                  212 731       199 403          7
Operating costs                                             (142 039)     (107 599)         32
Operating profit                                               70 692        91 804       (23)
Profit from equity-accounted investments               3      114 672       131 072       (13)
Profit on disposal of investments                      4            -        60 248      (100)
Realisation of fair value reserve                      5            -        35 588      (100)
Reversal of impairment of investment                   6            -           336      (100)
Impairment of plant and equipment                      6        (316)             -        100
Depreciation and amortisation                                (36 130)      (38 610)        (6)
Profit before finance costs and taxation                      148 918       280 438       (47)
Finance income                                       1;7        6 216         6 797        (9)                                       
Finance costs                                          8     (14 603)      (24 225)       (40)
Profit before taxation                                        140 531       263 010       (47)
Taxation                                               9     (10 955)      (11 598)        (6)
Profit for the year                                           129 576       251 412       (48)
Other comprehensive income
Realisation of fair value reserve                                   -      (35 588)
Unrealised fair value losses on available-for-sale
investments, net of tax                                       (1 887)       (5 676)
Total comprehensive income for the year                       127 689       210 148

Profit for the year attributable to:
- Ordinary shareholders                                       131 533       251 412
- Non-controlling interest                                    (1 957)             -
                                                              129 576       251 412
Total comprehensive income attributable to:
- Ordinary shareholders                                       129 646       210 148
- Non-controlling interest                                    (1 957)             -
                                                              127 689       210 148
                                                                                            %
                                                                cents         cents    change
Basic and diluted earnings per share                  10        28.55         53.58      (47)
Headline and diluted headline earnings per share      10        28.76         34.88      (18)
Adjusted headline and diluted adjusted headline
earnings per share                                    10        30.97         29.23         6
Ordinary dividend per share*                                    12.50         10.00        25
Special dividend per share*                                       7.50         60.00	 (88)

* Final ordinary and special dividend declared in respect of the previous financial year.

Condensed Group Statement of Financial Position
as at 30 June 2013

                                                             Reviewed       Audited
                                                              30 June       30 June
                                                                 2013          2012
                                                   Notes       R'000s        R'000s
ASSETS
Non-current assets                                    11    1 529 715     1 406 521
Current assets                                        12      466 909       461 805
Total Assets                                                1 996 624     1 868 326

EQUITY AND LIABILITIES
Total equity                                                1 655 497     1 617 477
Non-controlling interest                                      (1 957)             -
                                                            1 653 540     1 617 477
Non-current liabilities
- Deferred tax liabilities                                     12 107        11 525
- Cumulative redeemable preference shares             13      132 423       101 670
- Interest-bearing borrowings                         13       83 436        36 000
- Provisions                                                      768           173
- Finance lease liabilities                                       244         1 134
Current liabilities                                   14      114 106       100 347
Total Equity and liabilities                                1 996 624     1 868 326

                                                                                            %
                                                                Cents         Cents    change
Net asset value per share (before deducting
treasury shares)                                                  359           351         2
Adjusted net asset value per share (after deducting
treasury shares)                                                  360           352         2
Tangible net asset value per share (before deducting
treasury shares)                                                  320           312         3
Adjusted tangible net asset value per share 
(after deducting treasury shares)                                 321           314         2

Condensed Group Statement of Cash Flows
for the year ended 30 June 2013

                                                             Reviewed      Restated
                                                              30 June       30 June
                                                                 2013          2012
                                                    Notes      R'000s        R'000s
Cash flows from operating activities
Net cash generated from operations                     15      84 572        48 344
Income tax paid                                              (15 048)      (25 704)
Finance income                                                  6 216         6 797
Net cash inflow from operating activities                      75 740        29 437

Cash flows from investing activities
Acquisition of plant and equipment                           (78 229)      (35 647)
Acquisition of land and buildings                            (78 554)      (25 002)
Acquisition of intangibles                                    (4 586)       (3 672)
Proceeds from disposal of property, plant and equipment             9           117
Proceeds from the sale of investments                               -       733 935
Dividends received                                            131 495       182 686
Net cash (outflow)/inflow from investing activities          (29 865)       852 417

Cash flows from financing activities
Dividends paid                                               (90 873)     (322 405)
Shares bought back                                                  -      (24 321)
Increase/(decrease) in loans                           16      57 672     (178 494)
Finance costs                                                (14 603)      (20 735)
Net cash outflow from financing activities                   (47 804)     (545 955)

Net (decrease)/increase in cash and cash equivalents          (1 929)       335 899
Cash and cash equivalents at the beginning of the year        405 147        69 248
Cash and cash equivalents at the end of the year              403 218       405 147

Group Statement of Changes in Equity
for the year ended 30 June 2013

                             Capital
                             Redemp-                                     Available-
                                tion   Ordinary                            for-sale      Accumu-         Non-
                             Reserve      Share       Share   Treasury   Fair Value        lated  controlling
                                Fund    Capital     Premium     Shares      Reserve      Profits     interest         Total
                              R'000s     R'000s      R'000s     R'000s       R'000s       R'000s       R'000s        R'000s
Balance at 30 June 2011          301        117     754 047    (4 451)       49 396      957 382            -     1 756 792
Total comprehensive
income for the year                -          -           -          -     (41 264)      251 412            -       210 148
  - Profit for the year            -          -           -          -            -      251 412            -       251 412
  - Other comprehensive  
    income                         -          -           -          -     (41 264)            -            -      (41 264)
Dividends declared                 -          -           -          -            -    (327 768)            -     (327 768)
Shares bought back                 -        (2)    (24 319)          -            -            -            -      (24 321)
Treasury shares issued
to employees                       -          -         521       2 105           -            -            -         2 626
Balance at 30 June 2012          301        115     730 249     (2 346)       8 132      881 026            -     1 617 477
Total comprehensive 
income for the year                -          -           -           -     (1 887)      131 533      (1 957)       127 689
  - Profit for the year            -          -           -           -           -      131 533      (1 957)       129 576
  - Other comprehensive
    income                         -          -           -           -     (1 887)            -            -       (1 887)
Dividends declared                 -          -           -           -           -     (91 902)            -      (91 902)
Conversion of par value
shares to non-par value
shares                             -    730 249   (730 249)           -           -            -            -            -
Treasury shares issued
to employees                       -          -           -         276           -            -            -          276
Balance at 30 June 2013          301    730 364           -     (2 070)       6 245      920 657      (1 957)    1 653 540

Segmental Analysis

IFRS 8: Operating Segments requires a "management approach" whereby segmental information is
presented on the same basis as that used for internal reporting purposes to the chief operating decision-
maker/s who have been identified as the board of directors. During the current year, the Group, acquired
the Master Franchise for BURGER KING® for Southern Africa. The view of management is that this
business will operate independently from the other businesses in the Group and have therefore created
a new food segment under which this business will be monitored. Property is now effectively a service
centre to other Group companies at this time. Listed below is a detailed analysis:

              Reviewed        Audited       Reviewed        Audited 
           30 June 2013  30 June 2012   30 June 2013   30 June 2012 
                 R'000s        R'000s         R'000s         R'000s      

                      Revenue               Inter-Segment Revenue        

Casinos          1 953         18 821              -              -  
Slots          470 760        403 583              -              - 
Services         1 047             96         69 574         63 095     
Property           366              -          2 987              -       
Food             4 965              -              -              -     
Other           10 262          8 151              -              -  
               489 353        430 651         72 561         63 095 

                   Finance Income              Finance Expense                       

Casinos              -              -              -              -
Slots            1 623          1 500           (119)         (195)                                      
Services           165            281          (3 755)      (5 429)                                           
Property            85              -            (687)            -                                            
Food                91              -            (159)            -                                             
Other            4 252          5 016          (9 883)     (18 601)                                              
                 6 216          6 797         (14 603)     (24 225)                                          
  
                                               Profit from Equity-
             Depreciation & Amortisation       Accounted Earnings                

Casinos              -              -        114 672        131 072  
Slots         (15 888)       (15 661)              -              -       
Services      (19 269)       (22 785)              -              -         
Property         (672)              -              -              -      
Food             (287)              -              -              -        
Other             (14)          (164)              -              -      
              (36 130)       (38 610)        114 672        131 072 

                      Taxation                  Profit After Tax 

Casinos              -              -        114 672        231 639 
Slots         (13 970)        (9 826)         33 479         24 026
Services         (835)        (3 015)          3 376          7 741   
Property           (9)             55             23          (141)
Food             5 074              -       (17 193)              - 
Other          (1 215)          1 188        (4 781)       (11 853)   
              (10 955)       (11 598)        129 576        251 412

                     Total Assets              Total Liabilities

Casinos      1 092 469      1 109 667              -        (1 769)
Slots          283 240        273 278       (41 590)       (38 982)
Services        94 407         72 270       (73 035)       (70 570)
Property       133 164         28 574       (75 727)          (216)
Food            83 512              -       (20 883)              -
Other          309 832        384 537      (131 849)      (139 312)
             1 996 624      1 868 326      (343 084)      (250 849)

Notes to the Financial Statements
for the year ended 30 June 2013

ACCOUNTING POLICIES AND BASIS OF PREPARATION

The condensed consolidated Annual Financial Statements (AFS) have been prepared on the historical
cost basis, except where stated otherwise, in accordance with International Financial Reporting
Standards (IFRS) and the Listing Requirements of the JSE Limited (JSE) and are presented in terms
of disclosure requirements set out in IAS 34: Interim Financial Reporting, the SAICA Financial Reporting
Guides as issued by the Accounting Practices Committee and Financial Reporting Announcements as issued    
by the Financial Reporting Standards Council and the Companies Act of South Africa, No. 71 of 2008, as amended.
The accounting policies applied are consistent with those applied in the financial results for 
the year ended 30 June 2012, with the exception of the following new and amended standards
which are effective for the financial year.

- IAS 1:  Presentation of Financial Statements (effective 1 July 2012): and
- IAS 12: Income Taxes: Amendment: Deferred Tax: Recovery of Underlying Assets
          (effective 1 January 2012).

AUDIT OPINION
Our auditors, EY (previously known as Ernst & Young), have reviewed the condensed consolidated
AFS contained herein. Their reviewed report in which they express their unqualified opinion is
available for inspection at the Company's registered office.

COMPARATIVE RECLASSIFICATION OF FINANCE INCOME
Finance income of R5.0 million in respect of the prior year has been reallocated from revenue to finance income during the year.
As a result of this reallocation, the comparative figures have been restated. Management believes as finance income is
not one of its main sources of revenue, that it should not form part of revenue and has therefore disclosed it
as finance income. This reclassification has no effect on net earnings.

NOTES TO THE FINANCIAL STATEMENTS

1.  Revenue
    Revenue comprises Gross Gaming Revenue (GGR) from GPI's Slots Group Limited Payout
    Machines (LPM), food sales from our Food Division, dividends received from National Casino Resort Manco
    (Pty) Ltd (National Manco), Winelands Manco (Pty) Ltd (Winelands Manco), Grindrod Bank Limited (Grindrod) and
    rental income.

    GGR is the term used for the net revenue generated by a LPM from the amount of cash played
    through the LPM less payouts to players. GGR increased by 17.1% compared to the prior year.

    Food sales from BURGER KING(R) amounted to R4.9 million for the seven weeks of trading during
    the year.

                             Reviewed   Audited
                              30 June   30 June
                                 2013      2012
                               R'000s    R'000s
    Gaming revenue            471 807   403 680
    - Grandslots              281 107   249 634
    - Kingdomslots            142 817   119 259
    - Grand Gaming: Slots       39 425    26 713
    - Gross Gaming Revenue    463 349   395 606
    - Other Gaming Revenue      8 458     8 074
    Food sales                  4 965         -
    Dividends received         12 215    26 971
    Rental income                 366         -
    Revenue                   489 353   430 651
    Finance income              6 216     6 797
    Total revenue             495 569   437 448

    The dividend income of R12.2 million for the current year consists of R10.2 million from the
    Grindrod preference share investment, R1.1 million from National Manco and R0.9 million from
    Winelands Manco. The prior year dividend income of R26.9 million included a R13.3 million
    dividend from Real Africa Holdings Limited (RAH), which was disposed of on 2 December 2011
    as part of the restructuring deal with Sun International Limited (SUI).

2.  Cost of sales
    Overall cost of sales increased by 19.6%. Cost of sales mainly consists of cost of sales in respect
    of LPMs, which includes direct costs such as commissions to site owners, gambling levies and
    monitoring fees. Cost of sales in respect of LPMs has increased by 18.0%, which is slightly higher
    when compared to the increase in GGR, as a result of the payment of additional taxes due to the
    increased GGR and the increased contribution in respect of corporate social investments by our Slots
    Group. Other amounts included in cost of sales for the current year are the cost of sales in respect
    of food sales from our Food Division, which was not part of the Group figures in the prior year.

3.  Profit from equity-accounted investments
    Profit from equity-accounted investments is made up of profits from jointly-controlled entities
    and profits from associate.

    The 12.5% decrease in the equity-accounted earnings from the prior year is as a result of the
    cancellation fees paid by SunWest International (Pty) Ltd (SunWest) and received by Western
    Cape Casino Resort Manco (Pty) Ltd (Western Cape Manco) as part of the restructuring with SUI
    being included in the prior year earnings.

4.  Profit on disposal of investments
    There was no disposal of investments in the year under review. In the prior year a profit of
    R60.2 million was recognised on the sale of a 4.9% interest in SunWest, a 21.2% interest in
    Worcester Casino (Pty) Ltd (Golden Valley) and the entire investment of 30.6% in RAH, which
    were sold as part of the deal with SUI and disclosed in the 2012 AFS.

5.  Realisation of fair value reserve
    There was no realisation of fair value reserve in the current year. In the prior year the Group
    released, in terms of IAS 39: Financial Instruments Recognition and Measurement, R35.6 million
    of fair value adjustments previously recognised as a result of disposing its interest in RAH in the
    Statement of Comprehensive Income.

6.  Impairment and reversal of impairment
    In terms of IAS 36: Impairment of Assets, an entity must determine whether there is any
    indication of impairment at each reporting date. IAS 36 requires assets to be impaired to the
    higher of fair value less cost to sell or value-in-use, based on discounted cash flow valuations.
    The impairment in the current year relates to certain LPMs that are no longer being used and
    have become obsolete.

    In the prior year, in terms of IAS 36: Impairment of assets, the Group reversed R0.3 million of
    previously recognised impairments of the investment in Golden Valley Casino.

7.  Finance income
    Finance income of R5.0 million in respect of the prior year has been reallocated from revenue to finance income 
    during the year. As a result of this reallocation, the comparative figures have been restated. 
    Management believes as finance income is not one of its main sources of revenue, that it should not 
    form part of revenue and has therefore disclosed it as finance income. This reclassification has 
    no effect on net earnings.

8.  Finance costs
    Finance costs decreased by 39.7% from R24.2 million to R14.6 million due to lower average
    debt levels. During the prior year the Group repaid its R40.0 million term loan with Grindrod and
    redeemed R125.7 million preference shares with Sanlam Capital Markets (SCM). The Group also
    repaid R20.0 million of its term loan originally raised at the time of acquiring the Slots Group 
    with SCM during the current year. An additional term loan of R75 million from SCM was secured during 
    May 2013 in respect of the head office building purchased and redeveloped by the Group.

9.  Taxation
    The tax charge in the Statement of Comprehensive Income is relatively low compared to the profit
    before tax due to exempt income earned, permanent differences and assessed losses raised.

10. Headline earnings, HEPS and adjusted HEPS
    Headline earnings per share (HEPS) decreased by 17.5%, while adjusted HEPS increased by
    5.9%. HEPS decreased mainly as a result of the prior year non-recurring income and adjustments
    arising from the SUI deal and the R9.9 million transaction costs incurred relating to the investment
    in BURGER KING(R) South Africa.

                                                                                                   Reviewed      Audited
                                                                                                    30 June      30 June
                                                                                                       2013         2012
                                                                                                     R'000s       R'000s
    Headline earnings reconciliation
    Earnings attributable to ordinary shareholders                                                  129 576      251 412
    Add back: non-controlling interest                                                                1 957            -
    Basic earnings attributable to ordinary shareholders                                            131 533      251 412
    Reversal of impairment of investment                                                                  -        (336)
    Impairment of plant and equipment                                                                   316            -
    Profit on disposal of investments                                                                     -     (60 248)
    Realisation of fair value reserve                                                                     -     (35 588)
    Loss on sale of property, plant and equipment                                                       733          447
    Adjustments by jointly-controlled entities                                                          167            -
    - Loss on disposal of plant and equipment                                                           167            -
    Tax effect on above                                                                               (252)        7 950
    Headline earnings                                                                               132 497      163 637
    Reversal of employee share trust                                                                      8         (95)
    Preference share early redemption fee                                                                 -        2 100
    Change in intended recovery of jointly-controlled entity                                              -     (10 918)
    Reversal of cancellation fee                                                                          -     (32 271)
    Reversal of transaction costs                                                                     9 904       13 907
    Tax effect on above                                                                                (81)          170
    Adjusted headline earnings                                                                      142 328      136 530

                                                                                                  Number of    Number of
                                                                                                     shares       shares
                                                                                                       000s         000s
    Shares in issue (before deducting treasury shares)                                              460 680      460 680
    Shares in issue (net of treasury shares)                                                        459 648      459 510
    Weighted average number of shares in issue                                                      460 680      469 195
    Adjusted weighted average number of shares in issue                                             459 623      467 166

    Headline earnings calculation                                                                     Cents        Cents
    Basic and diluted earnings per share                                                              28.55        53.58
    Headline and diluted headline earnings per share                                                  28.76        34.88
    Adjusted headline and diluted adjusted headline earnings per share                                30.97        29.23
    Ordinary dividend per share#                                                                      12.50        10.00
    Special divend per share#                                                                          7.50        60.00 

    # Final ordinary and special dividend declared in respect of the previous financial year.

11. Non-current assets
    The increase in non-current assets is mainly due to the investment in land and buildings. GPI,
    through its wholly-owned subsidiary, GPI House Properties (Pty) Ltd (GPIH), acquired a landmark
    building in Heerengracht Street, Cape Town, which is being used as the Group's head office. GPIH
    also acquired a building in Gauteng which is being used as the offices and warehousing for Grand
    Gaming Gauteng (Pty) Ltd (Grand Gaming: Slots). Further increases in non-current assets are that
    GPI Management Services (Pty) Ltd (GPIMS) continued to invest in new generation LPMs which are
    leased to the Slots Group as well as assets acquired in respect of rolling-out BURGER KING(R).

12. Current assets
    Current assets mainly increased due to outstanding amounts from site owners. This is due to
    timing difference in respect of collections occurring weekly on a Thursday and the year-end
    closing off on a Sunday.

13. Non-current liabilities
    The increase in non-current liabilities is due to the Group obtaining a R75 million term loan
    from SCM in respect of the head office building. The cumulative redeemable preference shares
    outstanding relate to the facility with Standard Bank and Depfin Investments (Pty) Ltd, which 
    is currently being re-negotiated. In the prior year a portion of the cumulative redeemable 
    preference shares were classified as current liabilities. Due to the re-negotiation no portion 
    has been classified as current liabilities and has been included in non-current liabilities.
    During the year, R20 million has been repaid on the SCM term loan originally raised at the time
    of acquiring the Slots Group.

14. Current liabilities
    The increase in current liabilities is due to trade and other payables increasing from R36.5 million
    to R69.4 million, and is mainly due to the development costs in respect of the head office building
    and the procurement of the new generation LPMs.

15. Net cash generated from operations
    The reconciliation of net profit for the year to cash generated by operations is as follows:

                                                                             Reviewed       Audited
                                                                              30 June       30 June
                                                                                 2013          2012
                                                                               R'000s        R'000s
    Profit before taxation                                                    140 531       263 010
    Depreciation and amortisation                                              36 130        38 610
    Finance income                                                            (6 216)       (6 797)
    Finance costs                                                              14 603        24 225
    Loss on sale of property, plant and equipments                                733           447
    Dividends received                                                       (12 215)      (26 971)
    Profit from equity-accounted investments                                (114 672)     (131 072)
    Profit on disposal of investments                                               -      (60 248)
    Realisation of expenses previously recognised against share premium             -         1 189
    Impairment of loans                                                             -           217
    Reversal of impairment of investment                                            -         (336)
    Realisation of fair value reserve                                               -      (35 588)
    Treasury shares allocated to employees                                        276             -
    Impairment of plant and equipment                                             316             -
    Net cash generated from operations before working capital movements        59 486        66 686
    Decrease in inventories                                                       530           296
    Increase in accounts receivables                                         (12 185)      (11 843)
    Increase/(decrease) in accounts payables                                   36 741       (6 795)
    Net cash generated from operations                                         84 572        48 344

16. Increase/(decrease) in loans

                                                                             Reviewed        Audited
                                                                              30 June        30 June
                                                                                 2013           2012
                                                                               R'000s         R'000s
    Loans receivable recovered                                                  5 308              -
    Loans receivable advanced                                                 (1 450)        (1 250)
    Employee loans receivable recovered                                           120          1 110
    Employee loans receivable advanced                                              -            (7)
    Redemption of cumulative redeemable preference shares                           -      (125 726)
    Finance leases advanced                                                       178            424
    Finance leases repaid                                                     (1 116)        (1 045)
    Term loans repaid                                                        (20 368)       (52 000)
    Terms loans received                                                       75 000              -
    Net loans advanced/(repaid)                                                57 672      (178 494)

REVIEW OF OPERATIONS

2013 was a year in which the company entered into a growth phase. Typical of such a phase, many overheads, 
specifically employee costs, increase at rates above the norm. As alluded to in prior years, the group 
needs to employ talent that can manage this growth and the acquisition of BURGER KING(R) has seen us employ a 
further 142 new employees. This is the primary reason for the increase by 64% in employee costs. We still 
regard these costs, at 15% of revenue, to be contained and appropriate. 

Other operating expenses, including marketing and communications costs, increased significantly, almost 
exclusively due to BURGER KING(R). Occupancy costs are up 12%, but this must be seen in the context of how much more space we occupy and validates 
our decision to acquire our own building. These are the chief contributors to the 46% increase in the operating costs, 
but we still consider that management have done a great job in containing these costs and that the resultant revenues will flow in the next financial year.

Casino Group
The Casino Group consists of the Group's equity investments in SunWest, 
Golden Valley Casino and Akhona Gaming Portolia Investment (Pty) Ltd (Akhona GPI).
Whilst the South African economy takes time to emerge from the tough trading environment of
the last few years, our casino investments continue to perform well, showing growth in revenues,
EBITDA and net profit after tax.

SunWest
SunWest consists of GrandWest Casino and Entertainment World (GrandWest Casino) and the
Table Bay Hotel.

GrandWest's revenue increased by 4.9% year-on-year and its EBITDA increased by 6.0%
to R789.1 million (2012: R746.0 million). The increase translated into a 51.6% increase in profit
after tax to R486.6 million (2012: R320.9 million). As our major investment we are very pleased
with the results for the year and acknowledge the effort that GrandWest's management team
have put in to achieve these results.

The Table Bay Hotel continued to reflect a loss after tax for the year of R46.5 million (2012:
R61.8 million) despite showing a R2.2 million operating profit (2012: R13.8 million operating loss).
Pleasingly, the loss for the year is 24.7% lower than the prior year. The current year EBITDA of
R21.8 million (2012: R7.0 million) is 210% higher than that of the prior year and most encouragingly
the revenue of R181.2 million (2012: R153.2 million) has increased by 18.3% compared to the prior
year. The board of SunWest continues to investigate several measures to significantly influence
this performance.

The dividend declared by SunWest of R475 million has increased 46.2% when compared
to the prior year dividend of R325 million.

Golden Valley Casino
Golden Valley Casino's revenue remained flat at R128 million compared to the prior year.
EBTIDA decreased by 14.2% to R28.5 million compared to the prior year and its EBTIDA
percentage decreased by 3.8% to 21.4%, as a result of being negatively affected by the farm
workers strikes in its region. This did however not negatively affect attributable earnings as this increased by 255.9%
from R0.9 million loss to R1.4 million profit.

Akhona GPI
Through our investment in Akhona GPI, GPI holds an indirect stake of 3.3% in Sibaya Casino.

We concluded a deal with our partners in Akhona GPI during the year, through which we acquired the
remaining stake in the company and in so doing, gained full control of this investment. The deal will
increase our exposure to the best-performing casino in KwaZulu-Natal, to 5.6%. The KwaZulu-Natal
Gambling Board has yet to give their final approval of this acquisition, but we expect it imminently.

At the time of writing these results, we have not received any Group consolidated accounts from
Akhona GPI. Akhona GPI did not equity account its investment in Dolcoast due to the information not
being available at this time. Akhona GPI recognised R4.2 million as its share of equity accounted profit
from Dolcoast during the prior year, which is the same amount we included in the current year.

Slots Group
During the year GPI owned and operated three LPM route licences - Grandslots in the Western
Cape, Kingdomslots in KwaZulu-Natal and Grand Gaming: Slots in Gauteng.

The Group's LPM GGR increased by 17.1% from R395.6 million to R463.3 million for the year,
whilst the number of active LPMs in South Africa increased by only 7.8% from 7 439 to 8 021.

Grandslots (Western Cape)
The Western Cape remains the best-performing province in the country in terms of LPM GGR,
similarly Grandslots remains our best-performing LPM operation, generating GGR of R281.1
million, 12.6% up on the prior year. With only one competitor, Grandslots enjoyed a 56.1% annual
GGR market share and a 52.8% (854 LPMs) LPM market share in June 2013 compared to
56.8% and 54.2% (873 LPMs) respectively, for the prior year. Our average GGR per machine per
day increased from R767.68 to R889.08 over the same period.

Kingdomslots (KwaZulu-Natal)
Kingdomslots remained the market leader in KwaZulu-Natal, generating GGR of R142.8 million,
19.8% up on the prior year. With three competitors, Kingdomslots enjoyed a 40.1% annual GGR
market share and a 39.4% (836 LPMs) LPM market share in June 2013 compared to 41.2%
and 35.5% (708 LPMs) respectively in June 2012. Notwithstanding the significant increase in
our number of active LPMs from 708 in June 2012 to 836 in June 2013, our average GGR per
machine per day increased from R465.67 to R496.48 compared to the prior year, further emphasising
the value in our successful application for the re-allocation of 150 LPMs to the Durban Metropole and
KwaZulu-Natal South Coast.

Grand Gaming: Slots (Gauteng)
Grand Gaming: Slots, which is still in its relative infancy, generated GGR of R39.4 million, 47.6%
up on the prior year. With four competitors in Gauteng, Grand Gaming: Slots enjoyed an annual
GGR market share of 15.8% at end June 2013 and a 16.5% (229 LPMs) LPM market share
compared to 14.5% and 14.9% (203 LPMs) for the same period last year. Our average GGR per
machine per day increased from R409.43 to R464.99 over the last 12 months.

Grand Gaming: Slots and the Gauteng province as a whole continued to have its LPM roll-out
hampered during the reporting period by the fact that, since May 2012, the Gauteng Gambling
Board has not been in a position to approve any LPM site licences. That said, we continued to
submit site licence applications and remained confident that once the Gauteng Gambling Board was
reconstituted we would benefit significantly from our increased number of active sites and LPMs.
We are pleased to report that the Gauteng Gambling Board has now been reconstituted and that
subsequent to year end a further 127 LPMs have been approved and added to the Grand Gaming:
Slots network.

Property Group
During the financial year under review, GPIH, a wholly-owned subsidiary of GPI Capital
Investment Holding (Pty) Ltd (Grand Capital), which, itself, is wholly-owned by GPI, began
investing in property, and acquired two properties, namely 33 On-Heerengracht, Foreshore,
Cape Town, and 21 Friesland Drive, Longmeadow, Johannesburg. Subsequent to year-end
GPI House also acquired a factory described as, Portion 128 of the farm 1183, City of Cape
Town, in Atlantis.

33 On-Heerengracht was purchased for R25 million and redeveloped for an approximate further
R75 million while 21 Friesland Drive was purchased for R20.6 million.

A mortgage backed business loan over 33 On-Heerengracht of R75 million has been advanced
by SCM to finance this acquisition.

Food Group
The first BURGER KING(R) store in Southern Africa opened its doors to the public on 9 May 2013
with the first 1 000 people receiving a free Whopper(R) as part of the marketing launch campaign.
This created much hype with people queuing as long as 13 hours for the chance to bite into a
Whopper(R) on South African soil. Subsequent to year end, two additional stores were opened in
the Western Cape at Tygervally Centre and Cavendish Square, respectively.

The turnover of R4.9 million in the first seven weeks was just short of double our expectations,
however the gross margin remains tight, due to the importation of the majority of product, and
will continue to do so for the medium-term, until we have successfully vetted suppliers to produce
the product locally. The margin will normalise once these local suppliers come on line during the
remainder of this calendar year. Currently the approval of local suppliers is tracking ahead of the
project plan with us having secured, ahead of schedule, our local supplier of buns in July 2013.

BURGER KING(R) International's strategy is to establish partnerships with fuel retailers. To this end
an agreement was entered into with Sasol and this partnership will yield a strong roll-out of stores
using Sasol's national footprint, from the beginning of 2014.

RELATED PARTY TRANSACTIONS
The Group, in the ordinary course of business, entered into various transactions with related
parties. Any intra-group related party transactions and outstanding balances are eliminated 
in the preparation of the consolidated AFS of the Group as presented.

DIVIDENDS
Notice is hereby given of the declaration of an ordinary cash dividend of 15 cents (gross) per
share (2012: 12.5 cents per share ordinary dividend and 7.5 cents per share special dividend)
subject to the applicable tax levied in terms of the Income Tax Act No. 58 of 1962, as amended.

In terms of Paragraph 11.17(a)(i) to (x) and 11.17(d) of the JSE's Listings Requirements the
following additional information is disclosed:

-  the dividend has been declared out of income from reserves;
-  local dividends tax rate is 15%;
-  gross local dividend amount is 15 cents per share;
-  net local dividend amount is 15 cents per share;
-  GPI has Secondary Tax on Companies (STC) credits that it will utilise. The full dividend of
   15 cents per share will be covered by the STC credits;
-  income tax reference number 9037/0380/24; and
-  ordinary shares in issue 460 679 901.

In compliance with the requirements of Strate and the JSE Limited the following salient dates will
apply to the payment of the dividend:

-  Dividend declaration date                                Friday, 30 August 2013
-  Last date to trade "cum" the dividend               Thursday, 19 September 2013
-  Trading commences "ex" the dividend                   Friday, 20 September 2013
-  Record date                                           Friday, 27 September 2013
-  Date of payment of the dividend                       Monday, 30 September 2013

Share certificates may not be dematerialised or rematerialised between Friday, 20 September
2013 and Friday, 27 September 2013, both dates included.

SUBSEQUENT EVENTS
Following our SENS announcement earlier this year regarding our intention to purchase the route
operator licence and site operator licences of Zimele Slots (Pty) Ltd (Zimele) in Mpumalanga, and
that the Mpumalanga Gambling Board approved our licence transfer application in early August
2013, we are pleased to announce that we have now taken control of Zimele. Furthermore, the
Slots Group concluded an agreement in early August 2013 to acquire the route operator licence
and operational sites of Bohwa 1 Gaming (Pty) Ltd (Hot Slots) in Gauteng. This acquisition is
still subject to Gauteng Gambling Board approval. Lastly, our application to the Western Cape
Gambling and Racing Board (WCGRB) for a sports betting licence in the name of Grand Sport
(Pty) Ltd was approved in July 2013.

BURGER KING(R) opened two additional stores subsequent to year end in the Western Cape in
Tygervalley Centre and Cavendish Square Centre on 4 July and 30 July respectively. BURGER
KING(R) has signed an exclusive deal with Sasol to roll-out BURGER KING(R) restaurants across the
national Sasol network.

Subsequent to year-end an offer was made to purchase a property in Atlantis, Western Cape for
R15.4 million. The offer has been accepted and is awaiting transfer.

PROSPECTS
The future of our Slots Group is extremely exciting and we are looking forward to an even stronger
growth trend in 2014. The increase in the number of route operator licences we own has already
been reported on and we have every intention to increase these further in the medium term. This,
accompanied by the savings and performance we expect from our machine manufacturing joint-
venture point towards an even more successful year for the Slots Group.

Whilst our casino assets forecast modest growth, an increased stake in Akhona GPI and resultant
further exposure to Sibaya Casino, will see continued good cash flows from these assets. The Table
Bay Hotel is expected to improve operationally and we continue to look at ways to enhance this
investment.

BURGER KING(R) will start to gain traction in 2014, particularly as a result of our relationship with
Sasol. Furthermore we are looking at ways to improve our supply chain and these initiatives
should be concluded in 2014.

The National Lotteries Board published a notice in June 2013 inviting interested parties to acquire
a copy of the Request for Proposal (RFP). We will be submitting our pre-qualification application
by the due date of 31 August 2013 in this regard.

There are other opportunities we continue to explore but we are currently focused on extracting
maximum value from our existing assets.

Any reference to future financial performance in these results have not been reviewed and/or
reported on by GPI's auditors.

For and on behalf of the Board

H Adams                           A Keet

Executive Chairman                Chief Executive Officer
30 August 2013                    30 August 2013

Prepared by: Financial Director, S Petersen CA (SA)

02 September 2013 

Directors
H Adams (Executive Chairman), A Abercrombie, A W Bedford #, A Keet (Chief Executive Officer),
S Petersen (Financial Director), Dr N Maharaj #*, N Mlambo #, C Priem #*, MF Samaai #
(# non-executive * independent)
Grand Parade Investments Limited ("GPI" or "the company" or "the Group")
Registered office
10th Floor, 33 On-Heerengracht
Heerengracht Street, Foreshore, Cape Town, 8001
(PO Box 6563, Roggebaai, 8012)

Transfer secretaries
Computershare Investor Services (Pty) Ltd
70 Marshall Street, Johannesburg, 2001

Attorneys
Bernadt Vukic Potash & Getz Attorneys

Corporate advisors
Leaf Capital (Pty) Ltd

Sponsor
PSG Capital (Pty) Ltd

Company secretary
Lazelle Parton

Registration number
1997/003548/06

ISIN
ZAE000119814

Share code
GPL

www.grandparade.co.za



Date: 02/09/2013 12:30:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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