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Reviewed condensed provisional consolidated financial results for the year ended 28 February 2014
Afrimat Limited
('Afrimat' or 'the company' or 'the group')
(Incorporated in the Republic of South Africa)
(Registration number: 2006/022534/06)
Share code: AFT
ISIN code: ZAE000086302
Reviewed condensed provisional consolidated financial results
for the year ended 28 February 2014
www.afrimat.co.za
Delivering results through diversification
Highlights
Revenue up 42,1%
HEPS up 41,7% to 109 cents
Return on net operating assets 26,0%
Net cash from operating activities up 43,6%
NAV per share of 579 cents
Final dividend 28 cents per share
Net debt:equity ratio 15,5%
Acquired 79,6% of Infrasors
Strong balance sheet
COMMENTARY
BASIS OF PREPARATION
The reviewed condensed provisional consolidated financial results ('financial results') for the
year ended 28 February 2014 ('year') have been prepared in accordance with the framework concepts,
in accordance with and containing the information required by IAS 34: Interim Financial Reporting,
the recognition and measurement requirements of International Financial Reporting Standards ('IFRS'),
the SAICA financial reporting guides as issued by the Accounting Practices Committee and the South
African Companies Act, No 71 of 2008, as amended, and comply with the JSE Listings Requirements.
The accounting policies and method of computation applied in preparation of the financial statements
are consistent with those applied in the audited annual financial statements for the year ended
28 February 2013, except for necessary changes to accounting policies, related to the adoption of
IFRS 10, which includes a revised definition of control as well as IFRS 13, which includes a revised
definition of fair value. There has been no material effect on the results of the group as a result
of the adoption of new standards and amendments.
An extensive exercise to determine the impact of IFRIC 20 on the surface mines within the group was
performed during the year. Based on the results thereof, it has been concluded that there is no impact
on the current treatment of stripping costs. Therefore the benefits derived from stripping are for
current production and not for access to production beyond a 12-month future period. The group does
not have any predecessor stripping assets (stripping assets recognised prior to the effective date)
and therefore the transitional adjustments of IFRIC 20 are not applicable.
The financial statements have been prepared under the supervision of the Financial Director,
HP Verreynne BCompt(Hons) CA(SA).
INTRODUCTION
The group's continued strong performance ahead of the market reflects Afrimat's success in achieving
its strategic objective of 'delivering results through diversification' and realising prior year
initiatives in this regard, as well as the successful acquisition of a controlling stake in Infrasors
Holdings Limited ('Infrasors').
FINANCIAL RESULTS
Revenue for the year increased by 42,1% to R1 901,2 million from R1 337,6 million. Headline earnings
increased by 41,4%, translating into headline earnings per share of 109,0 cents (February 2013:
76,9 cents). The results of Infrasors are included for the first time for the full year from 1 March 2013.
SEGMENTAL REPORTING CHANGE
Afrimat previously reported results across three segments. Going forward Afrimat will report results
across twosegments namely:
- Mining & Aggregates - comprising Industrial Minerals, Aggregates and Contracting Services; and
- Concrete Based Products - comprising Concrete Products and Readymix.
The rationale for the change is that these two segments better reflect the business. Over the years
the Readymix business has become an integral part of Concrete Products and its contribution to the
group results is insignificant.
OPERATIONAL REVIEW
The Mining & Aggregates segment generated excellent profits in light of improved market conditions
and the first-time inclusion of Infrasors in the full year results. Increased mining costs were
incurred in the KwaZulu-Natal region to ensure long-term compliance with Department of Mineral
Resources requirements. The group's industrial minerals operations performed strongly, with
Infrasors' turnaround progressing as planned and yielding positive results.
All processing plants are fully operational and well-placed to supply market demand, which should
assist in sustaining revenue going forward. Afrimat's flexible service delivery model supplemented
by mobile equipment positions the group to take advantage of opportunities as and where they arise.
A major plant upgrade at the Glen Douglas dolomite mine was commissioned during the third quarter
of the financial year, which successfully increased production output of high demand products.
Further, a new quarry was commissioned close to Durbanville and is now fully operational. Various
new initiatives implemented at Infrasors have resulted in improved production output and reduced costs.
The Concrete Based Products segment achieved a satisfactory increase in sales pricing. However a
strike at the Gauteng operation, coupled with high cost increases, resulted in lower sales volumes
and profits for the year.
BUSINESS EXPANSION AND ACQUISITIONS
New business development remains a key component of the group's growth strategy. The dedicated
business development team continues to successfully identify and pursue opportunities in existing
markets, as well as in areas where high growth is projected.
Acquisition: Infrasors
As announced on 8 February 2013, Afrimat acquired 50,7% of Infrasors' gross shares in issue with
effect from 1 March 2013, strengthening its foothold in the industrial minerals sector and further
expanding its geographical reach across South Africa. A further 28,9% was acquired during the year,
resulting in a total shareholding in Infrasors of 79,6%. Treasury shares account for 12,0% while
the minorities account for the remaining 8,4% of Infrasors' gross shares in issue.
B-BBEE
Existing BEE shareholders and Afrimat's black employees together hold, in aggregate, 26,01% of
Afrimat's issued shares. Notwithstanding the fully empowered ownership platform in line with
the Mining Charter requirements, the group remains dedicated to enhancing all aspects of B-BBEE
on an ongoing basis.
DIVIDEND
A final dividend of 28,0 cents per share (2013: 20,0 cents) for the year was declared on
14 May 2014. This is in line with the group's dividend policy of 2,75 times cover. The
dividend payable to shareholders who are subject to dividend tax is 23,8 cents per share
(2013: 17,0 cents per share).
The total dividend for the year (interim and final) amounts to 39,0 cents per share
(2013: 28,0 cents per share).
PROSPECTS
The group is well positioned to capitalise on its strategic initiatives such as continued
investment in industrial minerals through Glen Douglas, the Infrasors operations and
Clinker Group.
Operational efficiency initiatives aimed at expanding volumes, reducing costs and developing the
required skill levels of our employees will be a key focus in all operations. These programmes,
supported by ongoing product diversification in attractive growth sectors such as industrial
minerals and open cast mining, should see volumes continue to increase. Going forward the group
is intensifying its focus on finding opportunities outside of South Africa.
Afrimat expects the current positive business climate to continue with moderate market growth
projected. The group's growth will remain driven by the successful execution of its proven
strategy that was embarked on over the last five years.
AUDITOR'S REVIEW
This report has been reviewed by the company's auditor, Mazars Inc. Their unmodified review
opinion is available for inspection at the company's registered office. Their review was
conducted in accordance with ISRE 2410 'Review of interim financial information performed
by the independent auditor of the entity'.
The auditor's report does not necessarily report on all of the information contained in this
report. Shareholders are therefore advised that in order to obtain a full understanding of
the nature of the auditor's engagement they should obtain a copy of the auditor's report
together with the accompanying financial information from the issuers registered office.
On behalf of the board
MW von Wielligh
Chairman
AJ van Heerden
Chief Executive Officer
15 May 2014
DIVIDEND DECLARATION
Notice is hereby given that a final gross dividend, No. 14 of 28,0 cents per share, in
respect of the year ended 28 February 2014 was declared on Wednesday, 14 May 2014.
There are 143 262 412 shares in issue at announcement date. The total dividend payable is
R40 113 475 (2013: R28 652 482).
The board has confirmed by resolution that the solvency and liquidity test as contemplated
by the Companies Act, No. 71 of 2008 (as amended), has been duly considered, applied and
satisfied. This is a dividend as defined in the Income Tax Act, 1962, and is payable from
income reserves. The South African dividend tax rate is 15% and no STC credit is available
to be utilised by shareholders. The dividend payable to shareholders who are subject to dividend
tax and shareholders who are exempt from dividend tax is 23,8 cents and 28,0 cents per share,
respectively. The income tax number of the company is 9568738158.
Relevant dates to the final dividend are as follows:
Last day to trade cum dividend Friday, 30 May 2014
Commence trading ex dividend Monday, 2 June 2014
Record date Friday, 6 June 2014
Dividend payable Monday, 9 June 2014
Share certificates may not be dematerialised or rematerialised between Monday, 2 June 2014 and Friday,
6 June 2014, both dates inclusive.
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Reviewed Audited
2014 2013 Change
R'000 R'000 %
Revenue 1 901 187 1 337 585 42,1
Cost of sales (1 440 138) (1 023 138)
Gross profit 461 049 314 447 46,6
Operating expenses (230 092) (158 955)
(Loss)/profit on disposal of plant and equipment (2 686) (3 009)
Contribution from operations 228 271 152 483 49,7
Other net gains/(losses) (note 1) 1 426 97
Impairment of intangible assets (note 2) - (4 746)
Operating profit 229 697 147 834 55,4
Investment revenue 16 187 10 811
Finance costs (24 981) (14 296)
Share of profit of associate 173 68
Profit before taxation 221 076 144 417 53,1
Taxation (58 110) (40 639) 43,0
Profit after taxation 162 966 103 778 57,0
Profit attributable to:
Owners of the parent 154 509 103 036
Non-controlling interests 8 457 742
162 966 103 778
Other comprehensive income
Items that may be subsequently reclassified to profit or loss
Net change in fair value of available-for-sale financial assets 1 694 67
Realised gains on disposal of available-for-sale financial assets (1 426) -
Income taxation on other comprehensive income (45) (12)
Other comprehensive income for the year, net of taxation 223 55
Total comprehensive income for the year 163 189 103 833 57,2
Total comprehensive income attributable to:
Owners of the parent 154 732 103 091
Non-controlling interests 8 457 742
163 189 103 833
Shares in issue:
Total shares in issue 143 262 412 143 262 412
Treasury shares (1 048 676) (204 242)
Net shares in issue 142 213 736 143 058 170
Weighted average number of net shares in issue 142 620 285 142 867 266
Diluted weighted average number of shares 146 323 034 146 747 905
Earnings per share:
Earnings per ordinary share (cents) 108,3 72,1 50,2
Diluted earnings per ordinary share (cents) 105,6 70,2 50,4
RECONCILIATION OF HEADLINE EARNINGS
Reviewed Audited
2014 2013 Change
R'000 R'000 %
Profit attributable to owners of the parent 154 509 103 036
Loss/(profit) on disposal of plant and equipment 2 686 3 009
Realised gains on disposal of available-for-sale financial assets (note 1) (1 426) (97)
Impairment of intangible assets (note 2) - 4 746
Total tax effects of adjustments (353) (815)
155 416 109 879 41,4
Headline earnings per ordinary share ('HEPS') (cents) 109,0 76,9 41,7
Diluted HEPS (cents) 106,2 74,9 41,8
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Reviewed Audited
2014 2013
R'000 R'000
Assets
Non-current assets
Property, plant and equipment 662 306 503 615
Investment property 3 040 -
Intangible assets 21 407 21 698
Goodwill 134 494 132 707
Investment in associate 201 77
Other financial assets (note 8) 134 223 115 398
Deferred tax 5 048 3 009
960 719 776 504
Current assets
Inventories 112 965 89 490
Current tax receivable 6 163 5 220
Trade and other receivables 305 967 195 788
Other financial assets (note 8) 1 275 -
Cash and cash equivalents 92 328 134 261
518 698 424 759
Total assets 1 479 417 1 201 263
Equity and liabilities
Equity
Stated capital 323 176 347 661
Business combination adjustment (105 788) (105 788)
Treasury shares (10 692) (1 491)
Net issued stated capital 206 696 240 382
Other reserves 6 562 6 929
Retained income 610 509 510 611
Attributable to equity holders of parent 823 767 757 922
Non-controlling interests 14 196 3 931
Total equity 837 963 761 853
Liabilities
Non-current liabilities
Borrowings long-term (note 6) 94 606 58 678
Deferred tax 91 652 80 610
Provisions 55 860 33 725
242 118 173 013
Current liabilities
Borrowings short-term (note 6) 76 432 62 006
Current tax payable 5 710 3 289
Trade and other payables 265 743 151 983
Bank overdraft 51 451 49 119
399 336 266 397
Total liabilities 641 454 439 410
Total equity and liabilities 1 479 417 1 201 263
Note to the statement of financial position:
Net asset value per share (cents) 579 530
Net tangible asset value per share (cents) 470 422
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
Reviewed Audited
2014 2013
R'000 R'000
Cash flows from operating activities
Cash generated from operations 310 706 216 421
Interest revenue 17 919 10 940
Dividends received 49 35
Finance costs (23 406) (12 853)
Taxation paid (61 407) (44 779)
Net cash from operating activities 243 861 169 764
Acquisition of property, plant and equipment (121 326) (82 934)
Proceeds on sale of property, plant and equipment 16 894 7 345
Purchase of financial assets (4 795) (31 858)
Proceeds on sale of financial asset 13 522 97
Acquisition of businesses (note 10) (69 942) (86 716)
Consideration paid for shares held in treasury by Infrasors (810) -
Net cash outflow from investing activities (166 457) (194 066)
Repurchase of treasury shares (26 659) (6 569)
Net movement in borrowings (note 6.2) (50 361) 31 955
Dividends paid (note 3.2) (44 649) (30 352)
Net cash outflow from financing activities (121 669) (4 966)
Net decrease in cash and cash equivalents and bank overdrafts (44 265) (29 268)
Cash, cash equivalents and bank overdrafts at the beginning of the year 85 142 114 410
Cash, cash equivalents and bank overdrafts at the end of the year 40 877 85 142
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Stated
and Business
share Share combination Treasury
capital premium adjustment shares
R'000 R'000 R'000 R'000
Balance at 1 March 2012 1 435 352 150 (105 788) (20 559)
Changes:
Conversion to no-par value shares 352 150 (352 150) - -
Movements in non- controlling interests - - - -
Share-based payments - - - -
Purchase of treasury shares - - - (6 569)
Settlement of employee Share Appreciation
Rights exercised and reserve transfer,
net of taxation (10 168) - - 5 050
Treasury shares used for acquisitions 4 244 - - 20 587
Profit for the year - - - -
Other comprehensive income for the year - - - -
Net change in fair value of available-for-sale
financial assets - - - -
Income taxation effect - - - -
Dividends paid (note 3.2) - - - -
Balance at 28 February 2013 347 661 - (105 788) (1 491)
Changes:
Initial non-controlling interest acquired - - - -
Additional non-controlling interest acquired - - - -
Infrasors treasury shares sold to BEE investor - - - -
Increase in effective shareholding in Infrasors due to:
- Retrieval of shares from Infrasors Empowerment Trust - - - -
- Increase in shares held in treasury by Infrasors - - - -
Share-based payments - - - -
Purchase of treasury shares - - - (26 659)
Settlement of employee Share Appreciation
Rights exercised and reserve transfer, net of taxation (24 879) - - 15 522
Treasury shares sold to BEE investor, net of taxation 394 - - 1 936
Profit for the year - - - -
Other comprehensive income for the year - - - -
Net change in fair value of available-for-sale
financial assets - - - -
Income taxation effect - - - -
Dividends paid (note 3.2) - - - -
Balance at 28 February 2014 323 176 - (105 788) (10 692)
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Non-
Other Retained controlling Total
reserves income interests equity
R'000 R'000 R'000 R'000
Balance at 1 March 2012 5 495 435 564 3 609 671 906
Changes:
Conversion to no-par value shares - - - -
Movements in non- controlling interests - - (32) (32)
Share-based payments 3 354 - - 3 354
Purchase of treasury shares - - - (6 569)
Settlement of employee Share Appreciation
Rights exercised and reserve transfer, net of taxation (1 975) 1 975 - (5 118)
Treasury shares used for acquisitions - - - 24 831
Profit for the year - 103 036 742 103 778
Other comprehensive income for the year 55 - - 55
Net change in fair value of available-for-sale
financial assets 67 - - 67
Income taxation effect (12) - - (12)
Dividends paid (note 3.2) - (29 964) (388) (30 352)
Balance at 28 February 2013 6 929 510 611 3 931 761 853
Changes:
Initial non-controlling interest acquired - - 31 743 31 743
Additional non-controlling interest acquired - (25 986) (22 009) (47 995)
Infrasors treasury shares sold to BEE investor - 2 812 1 978 4 790
Increase in effective shareholding in Infrasors due to:
- Retrieval of shares from Infrasors Empowerment Trust - 9 010 (9 010) -
- Increase in shares held in treasury by Infrasors - (469) (341) (810)
Share-based payments 3 528 - - 3 528
Purchase of treasury shares - - - (26 659)
Settlement of employee Share Appreciation
Rights exercised and reserve transfer, net of taxation (4 118) 4 118 - (9 357)
Treasury shares sold to BEE investor, net of taxation - - - 2 330
Profit for the year - 154 509 8 457 162 966
Other comprehensive income for the year 223 - - 223
Net change in fair value of available-for-sale
financial assets 268 - - 268
Income taxation effect (45) - - (45)
Dividends paid (note 3.2) - (44 096) (553) (44 649)
Balance at 28 February 2014 6 562 610 509 14 196 837 963
CONDENSED CONSOLIDATED SEGMENT REPORT
Split Reviewed Split Audited
2014 2014 2013 2013
% R'000 % R'000
Revenue
External sales
Mining & Aggregates 71 1 346 029 63 846 388
Concrete Based Products 29 555 158 37 491 197
100 1 901 187 100 1 337 585
Intersegment sales
Mining & Aggregates 89 73 898 86 67 821
Concrete Based Products 11 9 528 14 11 023
100 83 426 100 78 844
Total revenue
Mining & Aggregates 72 1 419 927 65 914 209
Concrete Based Products 28 564 686 35 502 220
100 1 984 613 100 1 416 429
Contribution from operations
Mining & Aggregates 86 195 235 78 117 480
Concrete Based Products 13 30 409 24 37 291
Other 1 2 627 (2) (2 288)
100 228 271 100 152 483
Contribution from operations margins on
external revenue(%)
Mining & Aggregates 14,5 13,9
Concrete Based Products 5,5 7,6
12,0 11,4
Other information
Assets
Mining & Aggregates 887 806 615 211
Concrete Based Products 207 104 187 977
Other 384 507 398 075
1 479 417 1 201 263
Liabilities
Mining & Aggregates 335 908 168 720
Concrete Based Products 64 409 54 819
Other 241 137 215 871
641 454 439 410
Notes
2014 2013
R'000 R'000
1. Other net gains/(losses)
Profit on disposal of available-for-sale financial assets 1 426 97
2. Impairment of intangible assets
Impairment of intangible assets - 4 746
A portion of the goodwill of Afrimat Aggregates Trading (Pty)
Limited was impaired during the previous year due to declining
reserves and resources.
3. Dividends
3.1 Afrimat Limited dividends paid/declared in respect of the
current year profits
Interim dividend paid 15 759 11 461
Final dividend declared/paid 40 113 28 652
55 872 40 113
3.2 Dividends cash flow
Current year interim dividend paid 15 759 11 461
Previous year final dividend paid 28 652 18 624
Dividends received on treasury shares (315) (121)
44 096 29 964
Dividends paid by subsidiaries to non-controlling shareholders 553 388
44 649 30 352
4. Capital commitments
Approved capital expenditure to be funded from surplus cash and
bank financing 153 815 112 779
5. Depreciation 93 920 55 450
6. Borrowings
6.1 Net movement
Opening balance 120 684 81 590
New borrowings 51 996 94 854
Acquired through acquisitions 100 715 7 139
Repayments (102 357) (62 899)
Closing balance 171 038 120 684
6.2 Analysis as per statement of cash flows
New borrowings 51 996 94 854
Repayments (102 357) (62 899)
(50 361) 31 955
Borrowings acquired through acquisitions reflect the Infrasors
debt owing to ABSA Bank Limited and Industrial Development
Corporation of South Africa Limited.
6.3 Net borrowings
Debt/overdraft less cash 130 161 35 542
Debt/overdraft less cash: equity 15,5% 4,7%
7. Assets and liabilities
Statement of financial position was impacted by the acquisition
of Infrasors. In respect of trade and other payables the
standardisation of payment terms throughout the group during
the second half of the year also contributed to the year-on-year
increase.
8. Other financial assets
Funding provided to Afrimat employees (BEE share purchase scheme) 103 926 101 656
Rehabilitation fund trusts and other 31 572 13 742
135 498 115 398
Non-current other financial assets 134 223 115 398
Current other financial assets 1 275 -
135 498 115 398
Number of shares
2014 2013
9. Movement in number of treasury shares
Opening balance 204 242 6 145 174
Utilised for acquisition of Clinker Group - (5 932 306)
Utilised for share appreciation rights scheme (1 774 144) (1 116 963)
Sold to BEE investor (190 000) -
Purchased during the year 2 808 578 1 108 337
Closing balance 1 048 676 204 242
10. Business acquisitions
The company acquired 94 171 108 Infrasors shares, representing 50,7% of Infrasors' gross
shares in issue, from Hanchurch Asset Managers and certain retiring management of Infrasors,
with effect from 1 March 2013 for cash of R33 million (35 cents per share).
As a result of Afrimat's holding in Infrasors surpassing 35% of the issued ordinary share
capital of Infrasors, Afrimat is required, in terms of section 123 of the Companies Act,
No. 71 of 2008, as amended, to extend a mandatory offer to the remaining Infrasors ordinary
shareholders. As announced on SENS on 4 March 2013 and 7 June 2013, unconditional mandatory
offers were made to the minority shareholders of Infrasors for Afrimat to purchase Infrasors
ordinary shares held by them at 35 cents and 65 cents per ordinary share respectively. As a
result of the above mentioned mandatory offers, the company acquired a further 8 219 715
Infrasors ordinary shares.
Afrimat also acquired 9 928 927 ordinary shares on the open market at prices ranging from
35 cents and 100 cents per ordinary share.
Afrimat made an offer on 16 January 2014 to RE: CM Calibre to acquire 35 445 839 Infrasors
ordinary shares at 100 cents per ordinary share and the transaction was concluded on
20 January 2014.
The 24 325 348 Infrasors ordinary shares held by the Infrasors Empowerment Trust ('Trust')
were provided as security for the loan agreements between Infrasors and Hanchurch in order
to facilitate a B-BBEE transaction. Hanchurch subordinated its loan in favour of Infrasors
following a large drop in the market value of the Infrasors ordinary shares held by the Trust.
Given the extent of exposure relative to the value of the underlying securities, and the
inability to obtain restitution through any other means, Infrasors has decided as a last
resort to exercise its rights according to the loan agreement and the subordination agreement.
On 7 October 2013 Hanchurch agreed to cancel the loan to the borrower and agreed that Infrasors
may re-possess and cancel the portion of the ordinary shares held in pledge by Hanchurch.
(Refer to Infrasors SENS announcement dated 18 March 2014.) These ordinary shares are held
by Infrasors as treasury shares.
In total Afrimat now holds 79,6%, treasury shares account for 12,0% while the minorities
account for the remaining 8,4% of the total issued Infrasors ordinary shares.
Amounts included in the group results are as follows:
Infrasors
Infrasors - Additional
- Initial shares Infrasors
acquisition acquired - Total
R'000 R'000 R'000
Carrying amount/fair value of net assets
Plant and equipment 150 866 - 150 866
Intangible assets 2 690 - 2 690
Trade and other receivables 38 593 - 38 593
Cash 11 156 - 11 156
Inventories 16 859 - 16 859
Other assets 24 693 - 24 693
Assets 244 857 - 244 857
Deferred tax 12 909 - 12 909
Borrowings 100 715 - 100 715
Trade and other payables 40 693 - 40 693
Provisions 26 747 - 26 747
Current tax payable 734 - 734
Liabilities 181 798 - 181 798
Non-controlling interest within Infrasors 1 365 - 1 365
Additional non-controlling interest acquired 30 378 (22 009) 8 369
Premium paid on additional shares acquired in subsidiary
after initial acquisition - (25 986) (25 986)
Net assets 31 316 47 995 79 311
Goodwill 1 787 - 1 787
Purchase consideration settled in cash 33 103 47 995 81 098
Revenue included in results - - 320 920
Profit after tax included in results
Reported by Infrasors - - 4 907
Reversal of depreciation and impairments by Afrimat on
consolidated pre-acquisition adjustments - - 12 820
- - 17 727
Gross trade and other receivables before provision
for impairment 39 208 - 39 208
Acquisition costs included in Afrimat's operating expenses 923 - 923
Net cash outflow from acquisition of business
Purchase consideration settled in cash 33 103 47 995 81 098
Cash acquired (11 156) - (11 156)
21 947 47 995 69 942
Goodwill recorded with the above Infrasors acquisition is primarily attributable to the
profit generating ability of the business.
11. Events after reporting date
No material events occurred between the reporting date and the date of this announcement.
12. Contingencies
Guarantees to the value of R24,3 million by Lombards Insurance Group, R0,6 million by
ABSA Bank Limited and R2,7 million by SIG Guarantee Acceptances (Pty) Limited to Eskom
and the Department of Mineral Resources were acquired as part of the Infrasors acquisition.
Additional guarantees to the value of R17,5 million by The Standard Bank of South Africa
Limited, R3,7 million by FirstRand Bank Limited, R0,2 million by ABSA Bank Limited and
R0,9 million by Lombards Insurance Group were supplied to Eskom and the Department of
Mineral Resources, respectively during the year under review.
On 25 June 2013 SARS issued an adjusted income tax assessment claiming R9,7 million
additional tax, R7,3 million penalties and R2,4 million interest, relating to the activities
of a subsidiary of Infrasors for the tax years 2010, 2011 and 2012 based on the premise that
the company is not a mining entity. The company has submitted an objection to SARS and is
of the opinion that the activities are of a mining nature.
13. Funding
ABSA Bank Limited has agreed to continue with the current Infrasors funding arrangements
for a further 36-month period from 1 March 2014.
Directors
MW von Wielligh*^ (Chairman)
AJ van Heerden (CEO)
HP Verreynne (Financial Director)
GJ Coffee
L Dotwana*
F du Toit*
PRE Tsukudu*^
HJE van Wyk*^
* Non-executive director
^ Independent
Registered office
Tyger Valley Office Park No. 2, Corner Willie van Schoor Avenue and Old Oak Road,
Tyger Valley, 7530 (PO Box 5278, Tyger Valley, 7536)
Sponsor
Bridge Capital Advisors (Pty) Limited, 27 Fricker Road
Illovo, 2196 (PO Box 651010, Benmore, 2010)
Auditor
Mazars Inc., Mazars House, Rialto Road, Grand Moorings Precinct Century City, 7441
(PO Box 134, Century City, 7446)
Transfer secretaries
Computershare Investor Services (Pty) Limited 70 Marshall Street, Johannesburg, 2001
(PO Box 61051, Marshalltown, 2107)
Company secretary
M Swart, Tyger Valley Office Park No. 2, Corner Willie van Schoor Avenue and Old Oak Road,
Tyger Valley, 7530 (PO Box 5278, Tyger Valley, 7536)
Date: 15/05/2014 07:05:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
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