Wrap Text
Reviewed condensed consolidated annual results for the year ended 31 August 2013
AUSTRO GROUP LIMITED
(Incorporated in the Republic of South Africa) (Registration number
2001/029771/06)
JSE share code: ASO ISIN: ZAE000090882
(“Austro” or “the company” or “the group”)
Reviewed Condensed Consolidated Annual Results for the year ended
31 August 2013
Revenue up 20% to R502,7 million
Adjusted EBITDA up 25% to R29,6 million
Adjusted headline earnings of 5,0 cents per share
Improving working capital position
Strong cash position and improved group liquidity
Turnaround in Wood segment
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Reviewed Restated Restated
for the for the for the
twelve twelve twelve
months months months
ended ended ended
31 August 31 August 31 August
% 2013 2012 2011
change R’000 R’000 R’000
Revenue 20% 502 709 417 531 384 967
Cost of sales (348 401) (290 911) (256 856)
Gross profit 22% 154 308 126 620 128 111
Other operating income 1 759 4 525 1 877
Net operating expenses 1% (151 486) (153 592) (133 479)
Onerous lease effect 2 457 (8 647) -
Inventory write-off (13 231) - -
Obsolete inventory
provision (5 421) (22 949) (6 477)
Operating expenses
excluding onerous lease
effect and inventory
write-offs (11%) (135 291) (121 996) (127 002)
Profit/(loss) from
operations before
impairment of goodwill 4 581 (22 447) (3 491)
Impairment of goodwill - (134 197) -
Profit/(loss) from
operations before
interest and taxation 4 581 (156 644) (3 491)
Net interest received 142 1 950 2 862
Interest received 1 865 6 015 6 804
Interest paid (1 723) (4 065) (3 942)
Profit/(loss) before
taxation 4 723 (154 694) (629)
Taxation
income/(expense) 2 972 (4 702) 6 550
Total comprehensive
income/(loss) for the year 7 695 (159 396) 5 921
Attributable to:
Owners of Austro 7 904 (159 395) 5 921
Non-controlling
interest (209) (1) -
Total comprehensive
income/(loss) for the year 7 695 (159 396) 5 921
Numbers of shares in issue 395 292 923 395 292 923 395 693 678
Weighted average number
of shares 395 292 923 395 294 018 419 758 013
Earnings/(loss) per share and
diluted earnings/(loss) per
share (cents) 2,0 (40,3) 1,4
Headline earnings/(loss)
per share and diluted
headline earnings/(loss) per
share (cents)1 1,8 (6,5) 1,6
Adjusted headline earnings
per share (cents)1 5,0 1,5 3,2
EBITDA (R’000)2 13 389 (7 942) 5 650
Adjusted EBITDA (R’000)2 29 584 23 654 12 127
Dividend per share
(cents) - - 2,0
Capital distribution declared
out of share premium (cents) - - 2,0
Reviewed Restated Restated
for the for the for the
twelve twelve twelve
months months months
ended ended ended
31 August 31 August 31 August
% 2013 2012 2011
change R’000 R’000 R’000
1. Headline earnings
reconciliation
Attributable income/
(loss) for the year 7 904 (159 395) 5 921
Net (profit)/loss on
disposal of plant and
equipment (952) (693) 239
Impairment of goodwill - 134 197 -
Tax effect of
adjustments 267 97 (33)
Headline earnings/(loss) 7 219 (25 794) 6 127
Onerous lease effect (2 457) 8 647 -
Inventory write-off 13 231 - -
Obsolete inventory
provision 5 421 22 949 6 477
Tax effect of adjustments (3 705) - -
Adjusted headline earnings 19 709 5 802 12 604
2. EBITDA reconciliation
Profit/(loss) from
operations before
impairment of goodwill 4 581 (22 447) (3 491)
Depreciation 8 808 14 505 9 141
EBITDA 13 389 (7 942) 5 650
Onerous lease effect (2 457) 8 647 -
Inventory write-off 13 231 - -
Obsolete inventory
provision 5 421 22 949 6 477
Adjusted EBITDA 25% 29 584 23 654 12 127
Adjusted EBITDA % 5.9% 5.7% 3.2%
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
Reviewed Restated Restated
as at as at as at
31 August 31 August 31 August
2013 2012 2011
R’000 R’000 R’000
ASSETS
Non-current assets 158 173 149 404 277 161
Plant and equipment 40 987 39 165 38 018
Goodwill 95 544 95 544 229 742
Loans receivable - - 482
Deferred taxation 21 642 14 695 8 919
Current assets 304 489 339 195 303 626
Inventories 170 298 196 995 179 284
Trade and other receivables 88 662 103 249 73 890
Taxation receivable 5 191 4 536 1 464
Cash and cash equivalents 40 338 34 415 48 988
Total assets 462 662 488 599 580 787
EQUITY AND LIABILITIES
Capital and reserves 364 896 356 992 516 591
Stated capital 295 497 295 497 -
Share capital - - 4
Share premium - - 295 697
Accumulated profits 69 399 61 495 220 890
Non-controlling interest (210) (1) -
Total capital and reserves 364 686 356 991 516 591
Non-current liabilities 8 022 17 554 -
Interest-bearing liabilities 3 984 5 263 -
Deferred tax liability 4 038 - -
Provision for onerous lease - 12 291 -
Current liabilities 89 954 114 054 64 196
Trade and other payables 87 440 110 557 60 662
Current portion of
interest-bearing liabilities 2 512 2 523 -
Current portion of
interest-free liabilities - - 3 426
Current portion of provision
for onerous lease - 967 -
Taxation payable 2 7 108
Total equity and liabilities 462 662 488 599 580 787
Net asset value per
share (cents) 92,3 90,3 130,6
Net tangible asset value
per share (cents) 68,1 66,1 72,5
Average net operating
assets (R’000) 431 113 489 099 562 348
Average net tangible operating
assets (R’000) 335 569 393 555 332 606
Average net operating
asset turnover 1,2x 0,9x 0,7x
Average net tangible operating
asset turnover 1,5x 1,1x 1,2x
Adjusted operating profit margin 4,1% 2,2% 0,8%
Pre-tax return on average net
operating assets 4,8% 1,9% 1,1%
Pre-tax return on average net
tangible operating assets 6,2% 2,3% 0,9%
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
Reviewed Restated Restated
for the for the for the
twelve twelve twelve
months months months
ended ended ended
31 August 31 August 31 August
2013 2012 2011
R’000 R’000 R’000
Profit/(loss) before taxation 4 723 (154 694) (629)
Non-cash items and other
adjustments 4 456 167 313 (7 621)
9 179 12 619 (8 250)
Decrease in working capital 18 167 2 825 88 109
Cash generated by operations 27 346 15 444 79 859
Interest received 1 865 6 015 6 804
Interest paid (1 723) (4 065) (3 942)
Dividends paid - - (8 628)
Taxation paid (597) (13 651) (8 113)
Cash inflow from
operating activities 26 891 3 743 65 980
Additions to plant and equipment (10 728) (7 366) (5 140)
Proceeds on disposal of
plant and equipment 1 050 2 523 1 340
Acquisition of business combination - (10 026) -
Decrease/(increase) in
loans receivable - 482 (482)
Cash outflow from
investing activities (9 678) (14 387) (4 282)
Movement in share capital and
share premium - (204) (26 406)
Repayment of interest-
bearing liabilities (1 290) (3 725) (3 426)
Settlement of onerous lease (10 000) - -
Cash outflow from
financing activities (11 290) (3 929) (29 832)
Net increase/(decrease)
in cash and cash equivalents 5 923 (14 573) 31 866
Cash and cash equivalents at
beginning of year 34 415 48 988 17 122
Cash and cash equivalents at
end of year 40 338 34 415 48 988
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
Reviewed Restated Restated
for the for the for the
twelve twelve twelve
months months months
ended ended ended
31 August 31 August 31 August
2013 2012 2011
R’000 R’000 R’000
Stated capital 295 497 295 497 295 701
Balance at beginning of year 295 497 295 701 322 107
Share premium reduction due to
share buy back - (204) (18 492)
Share premium reduction due to
capital distribution declared
out of share premium - - (7 914)
Accumulated profits 69 399 61 495 220 890
Balance at beginning of year 61 495 220 890 223 597
Attributable income/(loss) for
the year 7 904 (159 395) 5 921
Dividends declared and paid - - (8 628)
Non-controlling interest (210) (1) -
Total capital and reserves 364 686 356 991 516 591
CONDENSED SEGMENTAL ANALYSIS
Power
Reviewed Restated Restated
31 August 31 August 31 August
2013 2012 2011
R’000 R’000 R’000
Revenue 344 263 262 817 258 566
Gross profit 98 894 86 046 86 248
Gross profit % 29% 33% 33%
Profit/(loss) from operations
before impairment of goodwill 6 228 11 722 6 695
EBITDA 3 16 554 24 509 11 498
Adjusted EBITDA 3 35 206 37 630 17 975
Capital expenditure 9 476 4 012 3 906
Depreciation 4 088 9 698 5 361
Taxation expense/(income) 2 432 4 746 856
Total assets 286 866 297 534 338 974
Intercompany (30 032) (13 487) (53 960)
256 834 284 047 285 014
Total liabilities 62 031 78 796 107 926
Intercompany (9 284) (13 317) (73 860)
52 747 65 479 34 066
Net operating assets 4 178 543 195 974 185 396
Number of employees 200 180 151
CONDENSED SEGMENTAL ANALYSIS
Wood
Reviewed Restated Restated
31 August 31 August 31 August
2013 2012 2011
R’000 R’000 R’000
Revenue 171 586 160 443 136 198
Gross profit 55 414 40 574 41 863
Gross profit % 32% 25% 31%
Profit/(loss) from operations
before impairment of goodwill 9 541 (34 888) (11 536)
EBITDA 3 15 695 (27 048) (3 192)
Adjusted EBITDA 3 3 238 (8 573) (3 192)
Capital expenditure 1 243 3 342 1 051
Depreciation 4 655 4 744 3 755
Taxation expense/(income) (2 100) (2 215) (4 049)
Total assets 138 915 140 506 115 765
Intercompany (32 154) (33 507) (33 877)
106 761 106 999 81 888
Total liabilities 169 876 181 613 110 153
Intercompany (124 448) (116 188) (85 046)
45 428 65 425 25 107
Net operating assets 4 57 098 49 879 46 719
Number of employees 150 175 124
CONDENSED SEGMENTAL ANALYSIS
Head Office
Reviewed Restated Restated
31 August 31 August 31 August
2013 2012 2011
R’000 R’000 R’000
Revenue 9 698 6 185 1 375
Gross profit 9 698 6 185 1 375
Gross profit % 100% 100% 100%
Profit/(loss) from operations
before impairment of goodwill (11 188) 719 1 350
EBITDA 3 (11 124) 780 1 375
Adjusted EBITDA 3 (1 124) 780 1 375
Capital expenditure 8 12 183
Depreciation 65 63 25
Taxation expense/(income) (3 304) 2 171 (3 357)
Total assets 365 882 351 081 383 059
Intercompany (104 105) (94 801) (116 657)
261 777 256 280 266 402
Total liabilities 36 659 13 310 50 611
Intercompany (32 549) (12 290) (45 588)
4 110 1 020 5 023
Net operating assets 4 3 698 1 255 8 690
Number of employees 5 2 3
CONDENSED SEGMENTAL ANALYSIS
Consolidation
Reviewed Restated Restated
31 August 31 August 31 August
2013 2012 2011
R’000 R’000 R’000
Revenue (22 838) (11 914) (11 172)
Gross profit (9 698) (6 185) (1 375)
Gross profit % - - -
Profit/(loss) from operations
before impairment of goodwill - - -
EBITDA 3 (7 736) (6 183) (4 031)
Adjusted EBITDA 3 (7 736) (6 183) (4 031)
Capital expenditure - - -
Depreciation - - -
Taxation expense/(income) - - -
Total assets (329 001) (300 522) (257 011)
Intercompany 166 291 141 795 204 494
Total liabilities (170 590) (142 111) (204 494)
Intercompany 166 281 141 795 204 494
CONDENSED SEGMENTAL ANALYSIS
Total
Reviewed Restated Restated
31 August 31 August 31 August
2013 2012 2011
R’000 R’000 R’000
Revenue 502 709 417 531 384 967
Gross profit 154 308 126 620 128 111
Gross profit % 31% 30% 33%
Profit/(loss) from operations
before impairment of goodwill 4 581 (22 447) (3 491)
EBITDA 3 13 389 (7 942) 5 650
Adjusted EBITDA 3 29 584 23 654 12 127
Capital expenditure 10 728 7 366 5 140
Depreciation 8 808 14 505 9 141
Taxation expense/(income) (2 972) 4 702 (6 550)
Total assets 462 662 488 599 580 787
Intercompany - - -
462 662 488 599 580 787
Total liabilities 97 976 131 608 64 196
Intercompany - - -
97 976 131 608 64 196
Net operating assets 4 239 339 247 108 240 805
Number of employees 355 357 278
3 All EBITDA figures exclude intercompany management fees
4 Excludes goodwill which is all attributable to the Power segment
COMMENTARY
Austro is an industrial supplies group that provides quality branded –
in some segments locally manufactured – industrial equipment, related
components and support services to a wide range of economic sectors in
South Africa and sub-Saharan Africa. Clients range from heavy industrial,
mining and construction groups to wholesalers, retailers, technology and
telecommunications companies, banks and manufacturers.
Austro currently comprises two key business segments:
– Power segment (“Power”) incorporates:
– Private Power Sales: The manufacture, supply, installation and
maintenance of diesel generators and related components such as industrial
engines, marine engines, alternators, switchgear and components.
– Temporary Power: Rental of temporary power in the form of diesel
generators.
– Wood segment (“Wood”) encompasses the distribution of professional
woodworking equipment, tooling and edging.
It is management’s intention to introduce new industrial supply platforms
into Austro which we believe will deliver appropriate returns on capital
and have good growth prospects throughout sub-Saharan Africa. We intend
developing these new and existing platforms over time, through a combination
of organic and acquisitive growth.
Results
Performance for the financial year ended 31 August 2013 (“the year”)
reflected improved trading across the group. Revenue increased 20% to
R502,7 million (2012: R417,5 million) while group wide gross margins
remained stable. Margin pressure was experienced in the Private Power
Sales segment but was recovered in Wood. Operating expenses, excluding the
onerous lease effect and inventory write-offs, increased 11%. Although
higher than inflation, this is below the growth rate achieved in gross
profit and was driven primarily by the employment of executives and staff
at group level and the appointment of JFN Management Proprietary Limited
(“JFN Management”) to provide strategic and business support services to
Austro and supplement the internal executive capacity of the group.
An extensive review of property, plant and equipment and working
capital was carried out during the year with a particular focus on
existence and valuation of these items to ensure that an accurate base is
established to improve the management of these assets. This resulted in
the adjustments as outlined in the numbers above and as discussed in more
detail below.
Earnings before interest, taxation, depreciation and amortisation
(“EBITDA”) of R13,4 million (2012 Restated: R7,9 million loss)
improved substantially. The company has elected to show adjusted EBITDA
which provides a more meaningful reflection of sustainable trading.
Adjusted EBITDA increased 25% to R29,6 million (2012 Restated:
R23,7million) at an adjusted EBITDA margin to revenue of 5,9%
(2012 Restated: 5,7%). The adjustments to EBITDA arise from:
– the net effect of settling the onerous lease at Wood, being a net
gain of R2,5 million;
– an inventory write-off in Power of R13,2 million. An investigation is
underway to determine the exact cause of this loss, following which
management intends implementing controls to prevent any recurrence;
– a provision of R5,4 million in Power for obsolete and slow moving
inventory.
The group has shown a marked improvement in its working capital position,
even after eliminating the aforementioned working capital adjustments.
Net working capital declined by 10% from a restated R189,7 million to
R171,5 million despite a 20% growth in revenue. Inventories are gradually
being reduced to more acceptable levels and debtor collections are being
more closely monitored. Suppliers are paid within credit terms.
The group ended the year in a strong cash and liquidity position. Cash
balances at year-end amounted to R40,3 million (2012: R34,4 million)
notwithstanding the settlement of an onerous lease obligation at Wood (see
Operational review below). External borrowings remain low at R6,5 million
(2012: R7,8 million) resulting in a net cash position of R33,8 million
(2012: R26,6 million). During the year a R45 million trading facility was
secured, providing the group with more scope to manage exchange control
fluctuations and credit terms with foreign suppliers.
The benefit of improved working capital management reflected in cash flows.
Cash generated by operations was up 77% to R27,3 million (2012: R15,4 million).
During the year Austro invested R10,7 million (2012: R7,4 million
excluding the aquisition of business combination) in capital expenditure,
equating to 2,1% of revenue.
The group’s effective tax rate is distorted by the partial recognition
of deferred tax assets not previously recognised, arising from assessed
losses primarily in Wood and at group level, to be utilised in the future.
With the benefits of the restructuring in Wood beginning to reflect in its
profitability, these assessed losses now have a greater probability of
being utilised.
Headline earnings of R7,2 million (2012 Restated: R25,8 million loss)
is significantly up on 2012. This translates into headline earnings
per share (“HEPS”) of 1,8 cents (2012 Restated: 6,5 cents loss).
Adjusted headline earnings of R19,7 million (2012 Restated: R5,8 million)
represents an improvement of 3,5 cents per share to 5,0 cents per share.
Operational review
Power
The Private Power Sales segment continued to enjoy an increase in
volumes as a result of buoyant markets in the areas in which it
specialises, namely construction projects and data infrastructure. Market
share gains were also achieved.
Revenue increased 31% to R307,4 million (2012: R234,3 million) and gross
profit grew 13% to R76,6 million (2012 Restated: R68,1 million). Margins
of 25% were down year-on-year as a result of increasing pricing pressure
from tenders and certain production inefficiencies which are in the process
of being rectified. Operating profit totalled R0,9 million, impacted by
inventory write-offs. Adjusted EBITDA decreased 19% to R21,8 million
(2012 Restated: R26,9 million), representing a margin relative to revenue
of 7%.
The Temporary Power segment is a business that is growing rapidly,
primarily due to long-term contracts secured during the year. It performed
exceptionally well. Revenue was up 32% to R30,5 million (2012: R23,1
million) and gross profit increased 29% to R21,8 million (2012: R16,9 million),
representing a margin of 71,6%. Given the demand for rental equipment, the
group intends expanding its fleet in the year ahead, utilising its in-house
manufacturing capabilities. Adjusted EBITDA increased 24% to R13,4 million
(2012 Restated: R10,8 million), representing a margin relative to revenue
of 44%.
Wood
Wood achieved a significant turnaround during the year. New management was
put in place with Christian Neuberger appointed as Chief Executive
Officer. A restructuring programme was implemented to align the cost base
with revenue. The division significantly reduced the restated prior year
operating loss (before impairment of goodwill) of R34,9 million to post a
much smaller adjusted operating loss of R2,9 million (adjusted to exclude
the onerous lease gain) on revenue of R171,6 million (2012: R160,4
million). Gross profit margins recovered impressively to 32% from 25%.
Changes to directorate and management
During the year Paul Mansour and Jarrod Friedman were appointed as
Chief Executive Officer and Financial Director respectively, effective
15 April 2013. The group entered into a management services agreement
with JFN Management, headed by Steven Joffe, and through which the
services of Christian Neuberger are contracted as Chief Executive Officer
of Wood.
Charles Jacobs, the previous Chief Executive Officer of Wood, was
dismissed with effect from 11 December 2012. Jonathan Freed resigned as an
executive director (and Justin Freed resigned as his alternate) and was
appointed as a non-executive director with effect from 30 April 2013.
Subsequently Jonathan Freed resigned as a non-executive director effective
27 August 2013.
Update on litigation and distributorship
As previously disclosed, Austro and its subsidiary New Way Power
Proprietary Limited (“New Way”) have instituted legal action to interdict
and restrain each of Jonathan Freed and Justin Freed from breaching
restraint of trade undertakings and common law and other legal duties owed
to the group (“the Freed litigation”). We expect the matter to be heard
before the calendar year-end.
On 4 September 2013 John Deere S.A.S (“John Deere”) gave New Way six
months’ written notice of termination of a distributorship agreement in
terms of which New Way had been appointed as a distributor of John
Deere industrial engines and OEM engine spare parts. The group remains
in discussions with John Deere regarding the conclusion of a new
distributorship agreement. The conclusion of these discussions and the
determination by John Deere as to who will be appointed as the new
distributor will be finalised only once there is more clarity on the
status of the Freed litigation, as detailed above.
Importantly, John Deere has indicated that termination of the
distributorship agreement will not affect the procurement by New Way of
engines directly from John Deere as a component utilised in the
manufacture of New Way’s OEM generator sets. Furthermore, Power’s other
key suppliers, namely Mitsubishi and Doosan continue to support the OEM
and distributor businesses.
These reviewed condensed consolidated annual financial results have been
prepared on the assumption that the group will be successful in the Freed
litigation and the successful conclusion of discussions with John Deere
regarding the continuation of the group’s distributorship, such that no
impairment of goodwill is required. In the event that the Freed litigation
and/or the John Deere distributorship are not favourably resolved for the
group, an impairment of goodwill may be required.
Prospects and risks
Financial year-to-date trading has been encouraging. However, prospects
for the year ahead remain uncertain given possible social disturbances in
the lead up to the 2014 elections, the ability of Eskom to continue to
meet demand for power, a slowdown in consumer spend and the knock-on
effect this may have on construction activity and the effects of global
monetary policy. Input costs, through Rand exchange rates, and the sectors
that the group serves are closely linked to global monetary conditions and
the performance of the global economy.
We maintain a neutral outlook for the upcoming year. Within Private Power
Sales the sales order book remains strong and we plan to pursue organic
growth opportunities while Temporary Power will invest in its fleet to
meet growing demand for rentals. The restructuring undertaken during the
2013 financial year in Wood is expected to continue yielding benefits in
the year ahead.
Dividend
In line with group policy to reinvest for growth, no dividend has been
declared for the year.
Prior period adjustment
During the current year audit several prior period errors were
identified which have been adjusted in the prior period financial
statements. The details and financial implications of these errors are
outlined below.
– Private Power Sales
– Overcapitalisation of overheads allocated to inventory: The ratio
applied to allocate indirect overheads to inventory was found to be
incorrect and has resulted in an over-allocation of indirect overheads to
inventory in the prior year. The correction has resulted in an increase in
cost of sales in the prior year and a decrease in inventory of R1,5
million. The tax effect of this adjustment is an increase in
the deferred tax asset and a decrease in the deferred tax income
statement charge of R0,4 million.
– Consignment stock adjustment: Inventory delivered to third parties as
consignment stock was incorrectly recognised as revenue in prior financial
periods. The adjustment to correct this error resulted in an increase in
inventory of R1,4 million, a decrease in trade receivables of R2,1 million
and a decrease in accumulated profit of R0,7 million. The tax effect of
this adjustment was an increase in the deferred tax asset and a decrease
in the deferred tax income statement charge of R0,2 million.
– Temporary Power
Accumulated depreciation adjustment: Calculation errors were identified
in the fixed asset register. The adjustment to correct this error resulted
in an increase in accumulated depreciation and a decrease in accumulated
profit of R3,9 million.
The effect of these prior year adjustments is a decrease in the reported 2012
earnings per share (“EPS”) from a loss of 39,0 cents to a loss of 40,3 cents
and a decrease in HEPS from a loss of 5,3 cents to a loss of 6,5 cents.
Subsequent events
Subsequent to year-end, Ricophase Proprietary Limited and parties acting
or deemed to be acting in concert with Ricophase (“Ricophase”) made an
unconditional mandatory offer to acquire all the ordinary shares in the
company, not already held by Ricophase, for a purchase consideration of
55,2 cents per Austro ordinary share (being the highest price at which
Ricophase acquired Austro shares within the six month period before the
offer was made). The mandatory offer was triggered by Ricophase acquiring
109 million shares in Austro. Ricophase, together with David Brouze (who
is also a 50% indirect shareholder in Ricophase), hold 36,8% of Austro
shares. Shareholders are referred to the circular posted on 5 November 2013
for more details on the mandatory offer.
The acquisition by Ricophase of the Austro shares aligns the interests of
the executive directors and JFN Management, both charged with the
responsibility of delivering on Austro’s strategy, with Austro shareholders.
The senior executive team as well as Steven Joffe and David Brouze have,
through their investment in Ricophase, invested a material amount of
personal capital to acquire a significant equity investment in Austro.
They are therefore appropriately incentivised to drive the growth of
Austro for the benefit of all shareholders. Further detail
is contained in the circular referred to above.
Basis of presentation
The accounting policies and method of measurement and recognition applied
in the preparation of the reviewed condensed consolidated annual financial
results are consistent with those applied in the audited annual financial
statements for the previous year ended 31 August 2012.
The reviewed condensed consolidated annual financial results have been
prepared in accordance with International Financial Reporting Standards
(“IFRS”) and are presented in terms of the disclosure requirements set out
in International Accounting Standards (“IAS”) 34, as well the SAICA
Financial Reporting Guides as issued by the Accounting Practices Committee
and Financial Reporting Pronouncements as issued by the Financial
Reporting Standards Council, the JSE Limited Listings Requirements and the
requirements of the Companies Act, 2008. Financial Director, Jarrod
Friedman CA(SA), was responsible for the preparation of the condensed
consolidated annual financial results. These condensed consolidated annual
financial results have been reviewed by the company’s auditors, Grant Thornton
(Jhb) Inc, and their unqualified review opinion is available for inspection
at the group’s registered address. Any reference to future financial performance
included in this announcement has not been reviewed or reported on by the
group’s external auditors.
For and on behalf of the board
PD Mansour JS Friedman
Chief Executive Officer Financial Director
21 November 2013
Non-executive directors: AJ Phillips* (Chairman), DS Brouze, GS Nzalo*,
U Schäckermann* (German) *Independent
Executive directors: PD Mansour (Chief Executive Officer), JS Friedman
(Financial Director)
Registered and business address: 1125 Leader Avenue, Stormill Ext 4,
Roodepoort, 1724
Business postal address: PO Box 1914, Florida, 1710
Company secretary: Probity Business Services Proprietary Limited
Transfer secretaries: Computershare Investor Services Proprietary
Limited
Sponsor: Java Capital Trustees and Sponsors Proprietary Limited
www.austrogrouplimited.com
Date: 21/11/2013 08:55:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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