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Audited abridged financial results for the year ended 28 February 2014
METMAR LIMITED
Incorporated in the Republic of South Africa
(Registration number 1998/007269/06)
Share code: MML
ISIN code: ZAE000078747
(“Metmar” or “the Company” or “the Group”)
Audited abridged financial results for the year ended 28 February 2014
Strategic refocus on core trading starting to bear fruit
Highlights
• Cash generated by operations increased to R41,9 million (2013: R78,2 utilised in operations)
• 5% increase in traded volumes, and a 38% growth in revenue
• Operating costs reduced to R126,2 million (2013: R162,9 million)
• EBITDA from core trading activities increased to R82,0 million from R1,3 million, and overall EBITDA grew to
R40,4 million from a loss of R34,1 million
• 42% reduction in headline loss
Financial performance (See also divisional performance report hereunder)
Description 2014 2013 %
R’m R’m change
Volumes (tonnes) 731 429 696 360 5
Revenue 2 097,4 1 522,2 38
Gross margin (%) 6,4 7,5 (15)
Trading margin^ (%) 4,7 5,9 (20)
Operating expenses (excluding impairments) (126,2) (162,9) 23
EBITDA/(LBITDA) 40,4 (34,1) 218
Impairments (155,4) (60,4) (157)
Headline loss (47,0) (80,6) 42
Closing cash balance 53,3 (19,7) 371
Total assets 1 570,3 1 642,2 (4)
Net asset value 442,3 644,4 (31)
^Trading margin is calculated as gross margin less contract expenses (including contract finance costs) that are not cost of
sales per IFRS.
Challenging trading conditions caused by low commodity prices, reduced demand, and low global economic growth
persisted. These adversities were mitigated by product diversification, focused trading strategy, a weakening exchange rate, and
supportive trade finance facility providers.
Revenue from continuing operations increased by 38% to R2,10 billion (2013: R1,52 billion) and trading margins were
reduced to 4,7% (2013: 5,9%) due to increased transport costs, storage costs, contract interest and bank facility charges.
Operating expenses were well managed and decreased to R126,2 million (2013: R162,9 million) following the
implementation of various cost containment measures including the closure of a number of unprofitable operations and a decrease in
unrealised exchange losses.
EBITDA of R40,4 million increased by 218% from a loss of R34,1 million last year due to better product mix, new
product lines, increased volumes, weaker exchange rate and good cost control.
Impairments, excluding discontinued operations, increased to R155,4 million (2013: R60,4 million). Lower demand,
declining real prices and poor historical investment decisions were the major factors to the decreasing underlying value of
our investment pipeline.
Notwithstanding the above, overall financial performance was impacted by the following:
• Net finance costs of R50,9 million, which increased by 48% due to high trade finance facility utilisation driven
primarily by delays in the start up of the Kalagadi tolling project.
• The disposal of the West African Group division (WAG), which raised R53,7 million in cash, resulted in a loss after
tax of R22,0 million (2013: profit after tax of R17,9 million).
• Impairments of R155,4 million increased by 157%.
• Loss from associate companies of R12,2 million increased from a loss of R1,8 million last year due to production
delays at Sefateng Chrome Mine and the cessation of activities at Gatumba Mining Concessions.
As a result, the loss after tax is R182,8 million (2013: R111,5 million), attributable loss for the year is R162,7
million (2013: R101,0 million), whilst the headline loss is reduced by 42% to R47,0 million (2013: R80,6 million).
The net asset value decreased by 31% to 165,5 cents per share (2013: 241,1 cents per share) largely due to the
disposal of WAG and impairments of investments and non-current assets held for sale.
Total trade finance facilities available, including both general and ring-fenced facilities, amount to R1,9 billion.
Divisional performance and prospects
The Group comprises of two reportable segments, trading and investments.
Trading
The trading activities were further subdivided into core trading, discontinued operations (WAG), and Kalagadi tolling
project.
Key area 2014 2013 %
R’m R’m change
Core trading
Revenue 2 052,6 1 503,4 37
Gross margin (%) 5,9 4,6 28
EBITDA 82,0 1,3 6 184
Profit/(loss) after tax 50,3 (28,9) 274
Discontinued operations
(Loss)/profit after tax (22,0) 17,9 (223)
Kalagadi tolling project
Loss after tax (15,5) - (100)
Core trading
Core trading returned solid results with gross turnover increasing by 37% to R2,1 billion. EBITDA increased to R82,0
million (2013: R1,3 million) driven by expanding gross margins to 5,9% (2013: 4,6%) and cost containment resulting in
operating expenses of R59,6 million (R96,4 million). Profit after tax of R50,3 million increased from the previous year’s
loss of R28,9 million.
Discontinued operations
WAG previously formed a significant component of the Metmar Polychem division, and following its disposal (with effect
from 1 July 2013), the remaining Polychem activities were consolidated into Core Trading. The four months of WAG
trading returned an operating profit of R3,7 million and the capital profit on sale of WAG was R19,2 million. Goodwill and
intangibles of R36,9 million and R10,2 million respectively were impaired following the sale of WAG. The discontinued
operations within the Metmar Trading sub-group (prior to elimination of intercompany transactions) returned a loss after
taxation of R22,0 million (2013: profit of R17,9 million).
Kalagadi tolling project
The tolling agreement provides for Metmar to toll convert 800 000 tonnes of manganese fines through the Kalagadi
sinter plant into upgraded manganese sinter.
Delays in the sinter plant commissioning have now largely been overcome and the plant is almost fully commissioned,
producing almost 90 000 tonnes in March 2014 alone.
An overall loss after tax of R15,5 million was however incurred owing to the high finance costs associated with the
delayed startup of the sinter plant. Subsequent to year end the first bulk shipment of 44 000 tonnes was sold and the
vessel sailed from Saldanha.
Investments
Description 2014 2013 %
R’m R’m change
Revenue 234,0 43,5 438
Gross margin (%) 25,0 (8,8) 384
EBITDA/(LBITDA) 49,6 (27,8) 278
Loss after tax (140,2) (94,1) 49
Revenue improved due to sale of coke breeze, favourable alumina slag sales, increased sales of recycled plastic
material and sales of carbon products.
Gross margin improved significantly to 25,0% (2013: loss of 8,8%) and EBITDA increased to R49,6 million (2013: loss of
R27,8 million). Loss after taxation amounted to R140,2 million (2013: R94,1 million) following impairment of
investments and non-current assets held for sale of R145,5 million (2013: R36,6 million).
Each investment was assessed in detail, and upon conclusion of this review it was considered appropriate to impair
investments by an amount of R127,4 million* (2013: R17,9 million) resulting in our investment portfolio being valued at
R345,6 million.
Investment name 2014
R’m
Alphamin Resources 37,6
FPT Mineral Terminal 3,5
Kalahari Resources 192,9
Sefateng Chrome Mine - Investment 28,8
Sefateng Chrome Mine - Intangibles 5,9
Steelpoort Chrome Mine 33,0
Non-core/held-for-sale** 43,9
Total investments 345,6
* Impairments as per the investment segment R145,5 million (2013: R36,6 million)
Less: Inventory impairment R18,1 million (2013: R18,7 million)
Impairments relating to investments R127,4 million (2013: R17,9 million)
** Non-core/held-for-sale: Investments related PPE, non-current assets held-for-sale, Kivu Resources, Metmar
Industrial, Metmar Speciality Metals, Pering Base Metals, SA Metals Equity, Tufflex, Zimbabwe Alloys Chrome and Afarak
Group Plc.
Directorate
The following changes to Metmar’s board of directors took effect during the year under review:
• Mr Luigi Matteucci was appointed as Acting Chairman of the Company from 7 August 2013 until 29 April 2014.
• Mr Tom Borman was appointed as a non-executive director with effect from 12 March 2013.
• Ms Kgomotso Moroka was appointed as an independent non-executive director with effect from 13 March 2013.
• Mr Colin Brayshaw retired from his position as Chairman of the company with effect from 7 August 2013.
Outlook
Recently released Chinese GDP growth figures forecast a slower growth rate for the Chinese economy. While this
instills fears of subdued demand for commodities, the reduced growth rate is from a high 2013 base. With uncertain growth
prospects for other significant economies, the financial year ahead is likely to continue to be challenging for commodity
market participants.
In South Africa, labour issues, onerous mining regulation, increasing mining costs and lack of infrastructure
development continue to plague the mining industry.
Taking the above factors into account, Metmar will continue to focus on trading and seek new sources of supply,
negotiate better margins and practise good cost control to restore the Group to a profitable position. The recently opened
office in China will provide us with an opportunity to be closer to customers, enable us to secure market intelligence
for a deeper understanding of the commodities market in Asia and improve turnaround times of cash collection. The
strategy which has been put in place is expected to deliver further improvements in the Group’s performance.
Dividend
Given that in the current year we incurred a loss no dividend will be declared nor paid.
Annual general meeting
The Company’s annual general meeting of shareholders will be held at Metmar’s registered office at 25 Culross Road,
Corner Main and Culross Road, Bryanston on 12 August 2014. A separate notice convening the annual general meeting will
be posted to shareholders in due course.
Audited abridged consolidated statements of financial position at
Note 28 February 28 February
2014 2013
R’000 R’000
ASSETS
Non-current assets
Property, plant and equipment 2 82 463 39 253
Goodwill and intangible assets 48 222 150 150
Investments in associates 32 316 89 795
Financial assets 3 230 521 207 600
Deferred taxation 23 238 18 547
416 760 505 345
Current assets
Inventories 547 832 423 539
Trade and receivables 507 973 541 464
Other receivables 35 318 55 090
Cash and cash equivalents 5 53 275 80 148
1 144 398 1 100 241
Non-current assets held-for-sale 4 9 180 36 642
Total assets 1 570 338 1 642 228
EQUITY AND LIABILITIES
Equity and retained earnings 442 349 644 402
Non-current liabilities
Financial liabilities 2 759 22 638
Deferred taxation 26 206 51 652
28 965 74 290
Current liabilities
Financial liabilities 55 645 22 401
Trade and other payables 176 310 314 985
Other payables 5 947 10 372
Trade finance facilities 854 717 469 459
Bank overdrafts 5 6 99 890
1 092 625 917 107
Non-current liabilities and disposal groups held-for-sale 4 6 399 6 429
Total liabilities 1 127 989 997 826
Total equity and liabilities 1 570 338 1 642 228
Net asset value per share (cents) 165,48 241,07
Net tangible asset value per share (cents) 147,44 184,90
Number of shares in issue 267 306 552 267 306 552
Audited abridged consolidated statement of comprehensive income for the year ended
Note 28 February 28 February
2014 2013
R’000 R’000
Continuing operations
Revenue 2 097 435 1 522 227
Cost of sales (1 962 293) (1 407 649)
Gross profit 135 142 114 578
Other income 6 20 748 10 321
Operating expenses 7 (126 241) (162 891)
Fair value movements on forward exchange contracts 4 568 (692)
Operating profit/(loss) 34 217 (38 684)
Net finance cost 9 (50 920) (34 333)
Impairments (excluding discontinued operations) 8 (155 372) (60 363)
Fair value adjustments on listed investments 18 606 (11 454)
Loss from equity accounted investments (12 245) (1 815)
Loss before taxation (165 714) (146 649)
Taxation 10 4 936 17 227
(Loss)from continuing operations (160 778) (129 422)
Discontinued operations
Loss/(profit) before taxation (23 243) 19 945
Taxation 1 244 (2 072)
(Loss)/profit from discontinued operations 11 (21 999) 17 873
Total
Loss before taxation (188 957) (122 949)
Taxation 6 180 11 400
Loss for the year (182 777) (111 549)
Other comprehensive income
Movements on revaluations of financial assets (31 932) (23 574)
Movement in foreign currency reserves 6 509 (3 828)
Total comprehensive loss (208 200) (138 951)
Loss for the year attributable to:
Equity holders of Group (162 729) (101 006)
Non-controlling interests (20 048) (10 543)
Total loss for the year (182 777) (111 549)
Loss for the year attributable to equity holders of the Group
Loss for the year from continuing operations (140 730) (118 879)
(Loss)/profit for the year from discontinued operations (21 999) 17 873
Loss for the year attributable to equity holders of the Group (162 729) (101 006)
Total comprehensive loss attributable to:
Equity holders of the Group (182 777) (112 140)
Non-controlling interests (25 424) (26 811)
(208 200) (138 951)
(Loss)/earnings per share
Basic and diluted (cents) 13 (60,9) (39,5)
- Continuing operations (52,7) (46,5)
- Discontinued operations (8,2) 7,0
Headline (cents) 13 (17,6) (31,6)
Audited abridged condensed Group statements of changes in equity
Share Foreign Re- Share-
capital currency valuation holders’
and reserve reserve loans
premium R’000 R’000 R’000
R’000
Balance at 1 March 2012 60 636 4 286 30 094 -
Issue of shares 99 369 - - -
Total comprehensive loss for the year - (3 095) (8 039) -
Dividends paid - - - -
Dilution of shareholding in Metmar Africa - - - -
Reclassification to shareholders' loan - - - 72 885
Balance at 28 February 2013 160 005 1 191 22 055 72 885
Total comprehensive loss for the year - 4 012 (24 059) -
Transfer of reserves to equity - - 78 396 -
Movement in shareholders loans - - - 6 147
Purchase of non-controlling interest in subsidiary - - - -
Balance at 28 February 2014 160 005 5 203 76 392 79 032
Audited abridged condensed Group statements of changes in equity (continued)
Acquisition Retained Non- Total
of shares earnings controlling equity
in sub- R’000 interests R’000
sidiaries R’000
R’000
Balance at 1 March 2012 (27 547) 603 270 (25 641) 645 098
Issue of shares - - - 99 369
Total comprehensive loss for the year - (101 006) (26 811) (138 951)
Dividends paid - (38 353) - (38 353)
Dilution of shareholding in Metmar Africa - - 4 354 4 354
Reclassification to shareholders' loan - - - 72 885
Balance at 28 February 2013 (27 547) 463 911 (48 098) 644 402
Total comprehensive loss for the year - (162 729) (25 424) (208 200)
Transfer of reserves to equity - (78 396) - -
Movement in shareholders loans - - - 6 147
Purchase of non-controlling interest in subsidiary (6 192) - 6 192 -
Balance at 28 February 2014 (33 739) 222 786 (67 330) 442 349
Audited abridged condensed Group cash flow statement for the year ended
Note 28 February 28 February
2014 2013
R’000 R’000
Cash flows (used in)/generated from operating activities
Cash generated from/(used in) operations 14 41 883 (78 245)
Net finance costs 9 (50 920) (34 333)
Discontinued operations 5 763 25 780
Taxation paid (10 373) (8 322)
Net cash used in operating activities (13 647) (95 120)
Purchase of property, plant and equipment (477) (7 693)
Proceeds from sale of property, plant and equipment 7 298 3 900
Business combinations 12 (1 327) -
Disposal of business 11 66 537 -
Investments in associates (19 581) (40 397)
Sale of financial assets - 35 034
(Purchase)/realisation of derivatives (6 078) 10 123
Net cash flows generated from investing activities 46 372 967
Proceeds of share issue - 99 368
Repayment of financial liabilities (48 839) (27 734)
(Decrease)/increase in instalment sale agreements (5 937) 1 582
Distribution to shareholders - (38 353)
Net cash (used in)/generated from financing activities (54 776) 34 863
Total cash outflow for the year (22 051) (59 290)
Overdraft cancelled following discontinued operation 11 94 606 -
Cash flow from business combinations 12 456 -
(Net overdraft)/cash and cash equivalents at the beginning of the year (19 742) 39 548
Cash and cash equivalents/(net overdraft) at the end of the year 53 269 (19 742)
Notes to the audited abridged financial results
1. Basis of preparation
The audited abridged financial results have been prepared in accordance with, and containing the information required by
International Financial Reporting Standards (IFRS), the SAICA Financial Reporting Guides as issued by the Accounting
Practices Committee and Financial Reporting Pronouncements (FRPs) as issued by the Financial Reporting Standards Council
(FRSC), the 2008 South African Companies Act and the JSE Listings Requirements. These audited abridged financial statements
were prepared under the supervision Mr SMS Nkosi, the Chief Financial Officer of Metmar Limited.
Except for new standards adopted as set out below, all accounting policies applied by the Group in the preparation of these
abridged consolidated financial statements are consistent with those applied by the Group in its consolidated financial
statements for the year ended 28 February 2013.
The Group has adopted the following new standards:
Amendment to IFRS 7- Disclosures - Offsetting Financial Assets and Financial Liabilities
IFRS 10 - Consolidated Financial Statements
IFRS 11 - Joint Arrangements
IFRS 12 - Disclosure of Interests in Other Entities
IFRS 13 - Fair Value Measurements
Amendments to IAS 1 - Presentation of Items of Other Comprehensive Income
Revised IAS 27 and 28 - Investments in Associates and Joint Ventures
In addition the Group has changed its accounting policy with respect to the treatment of cost of sales. Commission paid to
agents and traders are included in cost of sales as they are costs directly related to the generation of revenue. The change
in accounting policy has no impact on the balance sheet. Comparative figures have been adjusted accordingly.
The above mentioned changes have no material impact on the abridged financial statements.
These results have been audited by the Group’s independent auditors, Grant Thornton. Their unmodified report, dated 29 April
2014, is available for inspection at the registered offices of the Group. The auditor’s report does not necessarily cover all
of the information contained in this announcement. Shareholders are therefore advised that in order to obtain full understanding
of the nature of the auditor’s work they should obtain a copy of that report together with the accompanying financial information
from the registered office of the Company. Any reference to the future financial performance included in this announcement, has
not been reviewed or reported on by the Group’s independent auditors.
28 February 28 February
2014 2013
R’000 R’000
2. Property plant and equipment (carrying value)
Buildings 55 482 2 804
Computer equipment and software 1 722 1 296
Furniture and fixtures 2 252 1 795
Land 12 209 1 009
Motor vehicles 727 1 361
Office equipment 483 559
Plant and machinery 9 588 30 429
82 463 39 253
3. Financial assets
Non-current
Kalahari Resources Proprietary Limited 192 900 166 000
SA Metals Equity Proprietary Limited - 28 500
Zimbabwe Alloys Chrome (Private) Limited - 13 100
Alphamin Resources Corp (Canada) 37 621 -
230 521 207 600
4. Non-current (liabilites)/assets held-for-sale
Pering Base Metals Proprietary Limited 1 000 25 870
Clay Fusion Technologies Proprietary Limited - 3 000
24 Sloane Street Properties Proprietary Limited - 3 564
Property, plant and equipment 100 4 128
SA Metals Equity Proprietary Limited 8 000 -
Other Assets 80 80
Total Assets 9 180 36 642
Less: Liabilities of Disposal Groups (6 399) (6 429)
2 781 30 213
5. Cash and cash equivalents
Cash and cash equivalents 53 275 80 148
Less: Bank overdrafts (6) (99 890)
53 269 (19 742)
6. Other income
Includes:
Profit on sale of subsidiary 9 124 -
Profit on foreign exchange 5 375 -
Dividends received - 79
Gain on disposal of assets - 3 331
Other 6 249 6 911
20 748 10 321
7. Operating expenses
Operating expenses for the year are stated after accounting for:
Consulting and professional fees 6 514 5 693
Employee costs 56 638 59 874
Legal fees 2 721 2 797
Operating lease charges 7 820 6 019
Repairs and maintenance 2 011 5 258
Depreciation and amortisation 6 217 4 556
Unrealised loss on foreign exchange 6 342 19 418
Other 37 978 59 276
126 241 162 891
8. Impairments
Impairment of property, plant and equipment 3 574 12 211
Impairment of non-current assets held-for-sale 3 900 6 513
Impairment of intangible assets 55 100 2 012
Impairment of investments in associates 64 815 -
127 389 20 736
Write down of inventories 18 097 18 694
Impairment of trade and other receivables 9 886 20 933
155 372 60 363
9. Net finance costs
Includes:
Trading contracts 22 978 26 558
Bank overdrafts 7 457 18 545
Financing effect on purchases and trade and other payables 33 500 4 036
Other 402 -
Total 64 337 49 139
Less: finance income (13 417) (14 806)
50 920 34 333
10. Taxation
Normal taxation 19 403 5 340
Deferred taxation (24 339) (22 567)
(4 936) (17 227)
11. Discontinued operations
Loss/(profit) on discontinued operations
Revenue 182 268 523 723
Expenses (176 877) (497 951)
Net profit before taxation 5 391 25 772
Taxation (1 651) (5 827)
Net profit after taxation 3 740 19 945
Profit on sale of discontinued operation 19 170 -
Goodwill and intangibles amortisation and impairment (44 909) (2 072)
- Goodwill impairment (36 906) -
- Intangibles amortisation and impairment (11 115) (2 072)
- Less taxation 3 112 -
(21 999) 17 873
Proceeds from discontinued operations and sale of subsidiary
Cash received 66 537 -
- Discontinued operation 53 747 -
- Sale of a subsidiary 12 790 -
Overdraft cancelled 94 606 -
161 143 -
12. Business combinations
Property, plant and equipment 68 876 -
Trade and other receivables 1 406 -
Cash and cash equivalents 456 -
Financial liabilities (65 348) -
Trade and other payables (5 380) -
Total identifiable assets 10 -
Non-controlling interest (4) -
Goodwill 1 321 -
1 327 -
13. Reconciliation of headline loss
Loss for the year (162 729) (101 006)
Adjustments for:
- Loss/(gain) on disposal of property, plant and equipment 1 106 (2 376)
- Capital gain on disposal of discontinued operation and subsidiary (27 062) -
- Other adjustments 141 699 22 748
- Impairments 127 389 20 736
- Taxation and non-controlling interest on impairments (30 599) -
- Discontinued operation goodwill and amortisation 44 909 2 012
Headline loss (46 986) (80 634)
Headline loss per share (cents) (17,6) (31.6)
- Attributable loss per share (cents) (60,9) (39.5)
Weighted average number of shares in issue 267 306 552 255 461 640
Weighted number of shares in issue* 267 306 552 255 461 640
- at 1 March 2013 267 306 552 232 440 480
- new issue - 23 021 160
14. Cash generated from/(utilised in) operations
Loss before taxation (165 714) (146 649)
Adjustments for:
- Other non-cash items (7 748) 14 494
- Impairments 155 372 60 363
- Net finance costs 50 920 34 333
Changes in working capital:
- Inventories (233 395) (101 233)
- Trade and other receivables (144 757) 186 526
- Trade and other payables 387 205 (126 079)
41 883 (78 245)
15. Segment report
In identifying its operating segments, management generally follows the procedure of distinguishing investment in resource-based
operations from the trading activities of the Group.
The Group has accordingly used the following factors to identify reportable segments worldwide:
- distinction between the investment and trading activities for the Group;
- investments segment to include investment in equity, plant and equipment;
- trading segment to include the traditional core trading activities of the Group together with the resource-based activities
emanating from off-take agreements and arrangements in place as a result of investment in equity, property, plant and equipment.
As a commodities trader and financial and logistics facilitator, Metmar is focused on developing assets and revenues related to
the trading and production of a diverse range of bulk commodities.
There have been no aggregation of the two segments identified as:
- investments; and
- trading.
The Chief Operating Decision Maker (CODM) evaluates the performance of the Group’s segments based on earnings before interest,
taxation, depreciation and amortisation.
Included in the management reports reviewed by the CODM are summaries of depreciation and amortisation expense related to each
of the segments, even though these amounts are not allocated within the segment results reported.
No allocations of interest or taxation are made and only entity-wide amounts for these items are reported to the CODM.
Each of these operating segments is managed seperately as each of these service lines requires different processes and other
resources as well as marketing approaches. All inter-segment transfers are carried out at arms’ length prices.
The measurement policies the Group uses for the segment reporting under IFRS 8 are the same as those used in its annual financial
statements, except that:
- post-employment benefit expenses;
- expenses relating to share-based payments;
- research costs relating to new business activities; and
- cost of sales
are not included in arriving at the operating profit of the operating segments in prior periods. The measurement methods used to
determine reported segment profit or loss included allocations of the amounts described above.
Management currently identifies the Group’s two activities as operating segments. These operating segments are monitored as
stragetic decisions are made on the basis of segment operating results.
28 February 2014 - Audited
Segment report - Group Trading Invest- Adjust- Total
activities ment ments R’000
R’000 activities and
R’000 elimi-
nations
R’000
Revenues - external customers
Segment revenues 2 059 801 234 001 (196 367) 2 097 435
Net finance costs (31 114) (15 025) (4 781) (50 920)
Depreciation and amortisation (1 303) (3 468) (1 446) (6 217)
of non-financial assets
2 027 384 215 508 (202 594) 2 040 298
Segment revenues
Total segment revenues 2 059 801 234 001 (196 367) 2 097 435
Other income 8 212 14 318 (1 782) 20 748
2 068 013 248 319 (198 149) 2 118 183
Earnings before interest, tax,
depreciation and amortisation (EBITDA)
Operating profit/(loss) 80 737 46 172 (92 692) 34 217
Depreciation and amortisation 1 303 3 468 1 446 6 217
of non-financial assets
82 040 49 640 (91 246) 40 434
Segment profit or loss
Segment operating profit/(loss) 80 737 46 172 (92 692) 34 217
Impairments (7 944) (145 486) (1 942) (155 372)
Fair value adjustments 8 792 (28 918) 38 732 18 606
Net finance costs (31 114) (15 025) (4 781) (50 920)
Loss from equity accounted investment - (12 245) - (12 245)
Profit /(loss) before taxation 50 471 (155 502) (60 683) (165 714)
Taxation (15 682) 15 346 5 272 4 936
34 789 (140 156) (55 411) (160 778)
Discontinued operations (21 575) - (424) (21 999)
Profit/(loss) for the year 13 214 (140 156) (55 835) (182 777)
Segment assets 1 346 655 488 251 (264 568) 1 570 338
Segment liabilities 979 661 685 520 (537 192) 1 127 989
29 February 2013 - Audited
Segment report - Group (continued) Trading Invest- Adjust- Total
activities ment ments R’000
R’000 activities and
R’000 elimi-
nations
R’000
Revenues - external customers
Segment revenues 1 503 433 43 547 (24 753) 1 522 227
Net finance costs (17 762) (16 845) 274 (34 333)
Depreciation and amortisation (2 256) (3 856) 1 556 (4 556)
of non-financial assets
1 483 415 22 846 (22 923) 1 483 338
Segment revenues
Total segment revenues 1 503 433 43 547 (24 753) 1 522 227
Other income 4 608 24 445 (18 732) 10 321
1 508 041 67 992 (43 485) 1 532 548
Earnings before interest, tax,
depreciation and amortisation (EBITDA)
Operating profit/(loss) (967) (31 676) (6 041) (38 684)
Depreciation and amortisation 2 256 3 856 (1 556) 4 556
of non-financial assets
1 289 (27 820) (7 597) (34 128)
Segment profit or loss
Segment operating profit/(loss) (967) (31 676) (6 041) (38 684)
Impairments (23 739) (36 624) - (60 363)
Fair value adjustments 10 044 (18 095) (3 403) (11 454)
Net finance costs (17 762) (16 845) 274 (34 333)
Loss from equity accounted investment - (1 815) - (1 815)
Profit /(loss) before taxation (32 424) (105 055) (9 170) (146 649)
Taxation 3 491 11 444 2 292 17 227
(28 933) (93 611) (6 878) (129 422)
Discontinued operations 13 581 (515) 4 807 17 873
Profit/(loss) for the year (15 352) (94 126) (2 071) (111 549)
Segment assets 1 148 473 783 915 (290 160) 1 642 228
Segment liabilities 794 695 815 200 (612 069) 997 826
16. Corporate governance
The Metmar Group complies with the Code of Good Corporate Practice and Conduct published in the King III report on
Corporate Governance.
17. Post-balance sheet events
Mr Rob Still has been appointed as the Chairman of the Company with effect from 1 May 2014.
18. Related party transactions
During the period, the Company and its subsidiaries in the ordinary course of business, entered into various transactions
with their associates. These transactions were subject to terms that are no less favourable than those arranged with third parties.
L Matteucci D J Ellwood
Non-Executive Acting Chairman Chief Executive Officer
29 April 2014
Directors: L Matteucci** (Chairman), DJ Ellwood (Chief Executive Officer), D Earp**, PP Boshoff, T Borman*, K Moroka**, GP Lotis,
D Mashile-Nkosi*, SMS Nkosi (Chief Financial Officer)
*Non-executive ** Independent non-executive
Company Secretary: AC Swart
Sponsor: Nedbank Capital
Registered office: 25 Culross Road, Bryanston, 2191 (PO Box 98549, Sloane Park, 2152)
Transfer Secretaries: Computershare Investor Services Proprietary Limited (PO Box 61051, Marshalltown, 2107)
Auditors: Grant Thornton
These results may be viewed on the internet on http://www.metmar.co.za
Date: 30/04/2014 03:20:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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