Wrap Text
Unaudited Interim Results for the six months ended 30 June 2014 and cash dividend declaration with a capitalisation
Mpact Limited
(Incorporated in the Republic of South Africa)
(Company registration number 2004/025229/06)
Income tax number: 9003862175
JSE share code: MPT JSE ISIN: ZAE 000156501
("Mpact" or "the Group" or "the Company")
UNAUDITED INTERIM RESULTS
for the six months ended 30 June 2014
and cash dividend
declaration with a
capitalisation share
alternative
2014
INTERIM RESULTS
2014 at a glance
Highlights
REVENUE UP
13.2% to R4.0 billion
June 2013: R3.5 billion
UNDERLYING OPERATING
PROFIT UP
14.5% to R270 million
June 2013: R236 million
BASIC UNDERLYING EARNINGS
PER SHARE UP
19.2% to 91.8 cents
June 2013: 77.0 cents
INTERIM GROSS CASH DIVIDEND
PER SHARE UP
18.2% to 26 cents
June 2013: 22 cents
RETURN ON CAPITAL
EMPLOYED OF
16.9%
June 2013: 15.5%
GEARING OF
32.5%
June 2013: 35.6%
Company profile
Mpact is one of the largest paper and plastics packaging businesses in southern Africa, listed on the JSE's
Main Board in the Industrial – Paper and Packaging sector. Mpact has the leading market position in southern
Africa in recovered paper collection, corrugated packaging, recycled-based cartonboard and containerboard,
polyethylene terephthalate (PET) preforms, styrene trays and plastic jumbo bins. These leading market positions
allow Mpact to meet the increasing requirements of its customers, achieve economies of scale and cost-
effectiveness at the various operations.
Mpact has 32 operating sites, of which 22 are manufacturing operations, in South Africa, Namibia, Mozambique
and Zimbabwe. Approximately 91% of Mpact's sales were to South African-based customers for the current
period while the balance is exported predominantly to customers in the rest of Africa.
As at 30 June 2014 Mpact employed 4,000 people.
Group performance
The trading environment for the six months ended 30 June 2014 was characterised by subdued GDP and
consumer spending growth in South Africa and a decline in fruit exports which resulted in a reduced demand for
fruit packaging. Above inflation input cost escalation was driven by rand depreciation, administered prices and
wage settlements.
Mpact's results for the period reflect the Group's resilience, established market positions and benefits derived
from investments made over the past years to improve productivity.
The R765 million upgrade of the Felixton mill, announced in March 2014, and which is due to be completed in
2017, progressed according to plan during the period under review.
Following the sale by Shanduka of its 10.45% shareholding in the business in November 2012, Mpact's B-BBEE
status dropped to Level 6 (previously Level 4). However, successful interventions over the past 18 months have
resulted in Mpact's B-BBEE status improving to Level 5 as of March 2014.
Revenue of R4.0 billion was 13.2% higher than the comparable prior year period, attributable mainly to higher
selling prices and a favourable sales mix. Higher average selling prices only partially offset raw material and
distribution cost increases, leading to a decline in gross margin when compared to the same period last year.
External sales volume grew 1.8% during the period.
Underlying operating profit increased by 14.5% to R270.0 million. The operating profit margin increased to
6.8% from 6.7% in the comparable prior period through improved productivity and fixed cost savings across
the Group.
ROCE for the period improved to 16.9% (June 2013: 15.5%).
Basic underlying earnings per share improved by 19.2% versus the same period last year, to 91.8 cents per share
as a result of the increase in operating profit and unchanged finance costs.
Paper business
Revenue for the period was up 14.2% to R2.9 billion with external sales volume growth of 2.1%. Detpak, the
business acquired in September 2013 contributed 0.9% to external sales volume growth. Underlying operating
profit increased by 11.7% to R280.7 million (June 2013: R251.3 million). Productivity improvements resulting
from recent investments in the Corrugated business as well as fixed cost savings across the Paper business
partially offset the under-recovery of increased raw material costs.
Plastics business
Revenue increased by 10.4% to R1.1 billion due to higher average selling prices. Sales volumes measured in tons
were in line with the comparable prior period, with good volume growth in bins and crates offset by a decline in
certain products in the FMCG business due to rationalisation.
Underlying operating profit increased by 28.0% to R43.9 million (June 2013: R34.3 million) with margins
increasing to 4.1% from 3.5% as a result of a more favourable product mix and management of fixed costs.
Net finance costs
Net finance costs of R59.6 million were in line with the comparable prior period. Higher interest rates on bank
loans were offset by lower average net debt during the period.
Tax
The effective tax rate for the period was 30.0% (June 2013: 28.6%).
Earnings per share
Basic and underlying earnings per share increased by 19.2% to 91.8 cents (June 2013: 77.0 cents). Headline
earnings per share for the period was 91.5 cents (June 2013: 76.7 cents).
Net debt
Net debt at 30 June 2014 was R1.4 billion, a decrease of R76 million from 30 June 2013. Average net debt was
4.4% lower than the comparable prior period with gearing of 32.5% (June 2013: 35.6%).
Outlook
A significant challenge for the second half of 2014 will be to recover cost inflation while economic growth remains
modest. Despite this Mpact remains confident in its strategy, well established market positions and ability to
generate shareholder returns.
The Group continues to identify investment opportunities that offer the prospect of enhanced shareholder
returns while meeting other strategic objectives.
To this end, Mpact is pleased to announce that it has entered into an agreement with the Industrial
Development Corporation of South Africa Limited ("IDC") to build a state-of-the-art polyethylene terephthalate
(PET) recycling plant in Gauteng. The plant is due to be commissioned during the second half of 2015 at a
total investment cost of R350 million. The business will be held in a newly formed company, Mpact Polymers
(Pty) Ltd, in which Mpact holds 79% and the IDC 21%.
To meet changing operational requirements and to remain competitive within the Mpact Plastics FMCG
business, agreement has been reached with all affected parties to close the converting factory situated in
Robertville, Gauteng and relocate certain plant to other Plastics operations. The closure is expected to be
completed by the end of the 2014 financial year at an estimated non-recurring cost of R23 million which will
be accounted for in the second half.
The direct financial cost of the four-week-long industry-wide strike that affected six plastics converting
operations during July is estimated to be R20 million, which may be partly recovered during the balance of
the year.
Cash Dividend and Capitalisation Share alternative
The Board has declared an interim gross cash dividend of 26 cents per ordinary share payable on Monday,
15 September 2014. In terms of the Income Tax Act, the dividend has been declared from income reserves and
the Dividend Withholding Tax rate is 15%. Mpact has no STC credits. The net dividend amount is 22.10 cents per
share for shareholders liable to pay Dividends Tax and 26 cents per share for shareholders exempt from paying
Dividends Tax. The number of issued shares at the date of declaration is 163,575,656.
The dividend has been declared as a cash distribution but shareholders will be entitled to elect to receive ordinary
shares in the Company as Capitalisation Shares in lieu of the cash dividend (the Capitalisation Shares). The
number of Capitalisation Shares will be determined by the ratio of 26 cents over the volume weighted average
price of Mpact's ordinary shares traded on the Johannesburg Stock Exchange (JSE) during the ten-day trading
period ending 28 August 2014.
The cash dividend will be paid out of the Company's distributed profits while the issue price of the Capitalisation
Shares will be settled by way of capitalisation of the Company's distributable profits. The Capitalisation Shares
upon their issue will rank pari passu in all respects with the other ordinary shares then in issue.
Details of the ratio will be released on the Securities Exchange News Services (SENS) of the JSE by no later than
11:00 on Friday, 29 August 2014 and published in the South African press the following business day. Trading
in the Strate Limited environment does not permit fractions and fractional entitlement. Accordingly, where a
shareholder's entitlement to new ordinary shares calculated in accordance with the above formula gives rise to
a fraction of a new ordinary share, such fraction of a new ordinary share will be rounded up to the nearest whole
number where the fraction is greater than or equal to 0.5 and rounded down to the nearest whole number where
the fraction is less than 0.5.
A circular relating to the cash dividend and Capitalisation Share alternative will be posted to the shareholders on
or about Wednesday, 13 August 2014.
The salient dates for the cash dividend and Capitalisation Share alternative are as follows:
Circular and Form of Election posted to shareholders Wednesday, 13 August 2014
Finalisation announcement released on SENS Friday, 29 August 2014
Finalisation announcement published in the press Monday, 1 September 2014
Last day to trade to receive a dividend Friday, 5 September 2014
Shares commence trading "ex" dividend Monday, 8 September 2014
Listing of maximum possible number of ordinary shares Monday, 8 September 2014
Last day to elect to receive the Capitalisation Issue instead of the cash
dividend, Forms of Election to reach the transfer secretaries by 12:00 on Friday, 12 September 2014
Record date in respect of cash dividend/Capitalisation Shares Friday, 12 September 2014
Dividend payment date Monday, 15 September 2014
Result of Capitalisation Issue released on SENS Monday, 15 September 2014
Listing of ordinary shares adjusted Wednesday, 17 September 2014
Share certificates may not be dematerialised or rematerialised between Monday, 8 September 2014 and Friday,
12 September 2014, both days inclusive.
Tax implications
The cash dividend and the Capitalisation Issue are likely to have tax implications for both resident and non-
resident shareholders. Shareholders are therefore encouraged to consult their professional tax advisers, should
they be in any doubt as to the appropriate action to take.
In terms of the Income Tax Act 58 of 1962 ("the Income Tax Act"), the cash dividend will, unless exempt, be
subject to Dividend Withholding Tax ("DWT") that was introduced with effect from 1 April 2012. South African
resident shareholders that are liable for DWT will be subject to DWT at a rate of 15% of the cash dividend and this
amount will be withheld from the cash dividend with the result that they will receive a net amount of 22.10 cents
per share. Non-resident shareholders may be subject to DWT at a rate of less than 15%, depending on their
country of residence and the applicability of any Double Tax Agreement between South Africa and their country
of residence.
The Capitalisation Issue is not subject to DWT in terms of the Income Tax Act, but the subsequent disposal of
shares obtained as a result of the Capitalisation Issue is likely to have Income Tax or Capital Gains Tax ("CGT")
implications. Where any future disposals of shares obtained as a result of the Capitalisation Issue falls within the
CGT regime, the base cost of such shares will be deemed to be zero in terms of the Income Tax Act (or the value
at which such shares will be included in the determination of the weighted average base cost method will be zero).
Change in directorate
There has been no change to the Board of directors for the period ended 30 June 2014.
AJ Phillips BW Strong
Chairman Chief Executive Officer
13 August 2014
Company information
Directors: Registered office Sponsor
Independent Non-Executive 4th Floor, No. 3 Melrose Boulevard Rand Merchant Bank
AJ Phillips (Chairman) Melrose Arch, 2196 (a division of FirstRand Bank Limited)
NP Dongwana, NB Langa-Royds (Postnet Suite #179 1 Merchant Place
TDA Ross, AM Thompson Private Bag X1, Melrose Arch, 2076) corner Fredman Drive and
Executive Transfer secretaries Rivonia Road, Sandton, 2196
BW Strong (Chief Executive Officer) Link Market Services (PO Box 786273, Sandton, 2146)
BDV Clark (Chief Financial Officer) South Africa Proprietary Limited
Company secretary 13th Floor, Rennie House
MN Sepuru 19 Ameshoff Street, Braamfontein, 2001
(PO Box 4844, Johannesburg, 2000, South Africa)
Condensed Consolidated Statement of Comprehensive Income
(Unaudited) (Unaudited) (Audited)
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2014 2013 2013
Note Rm Rm Rm
Revenue 4 3,983.4 3,519.5 7,697.8
Cost of sales (2,483.4) (2,156.3) (4,746.7)
Gross margin 1,500.0 1,363.2 2,951.1
Administration and other operating expenditure (1,230.0) (1,127.3) (2,298.7)
Operating profit 5 270.0 235.9 652.4
Share of equity accounted investees' profit 3.1 4.0 9.8
Total profit from operations and equity
accounted investees 273.1 239.9 662.2
Net finance costs (59.6) (59.6) (114.2)
Finance costs 7 (63.4) (63.1) (121.1)
Investment income 3.8 3.5 6.9
Profit before tax 213.5 180.3 548.0
Tax charge (64.0) (51.5) (150.4)
Profit for the period from continuing
operations 149.5 128.8 397.6
Other comprehensive income, net of taxation 2.2 11.8 22.5
Effect of cash flow hedges 2.6 12.0 10.4
Tax effect (0.7) (3.4) (2.9)
Actuarial gains on post-retirement benefit schemes – – 12.0
Tax effect – – (3.4)
Exchange differences on translation of foreign
operations 0.3 3.2 6.4
Total comprehensive income 151.7 140.6 420.1
Profit attributable to:
Equity holders of Mpact 149.5 126.1 380.1
Non-controlling interests in subsidiaries – 2.7 17.5
Profit for the period 149.5 128.8 397.6
Comprehensive income attributable to:
Equity holders of Mpact 151.7 137.9 402.4
Non-controlling interests in subsidiaries – 2.7 17.7
Total comprehensive income 151.7 140.6 420.1
Earnings per share (EPS) attributable
to equity holders of Mpact 8
Basic EPS (cents) 91.8 77.0 232.5
Diluted EPS (cents) 91.2 76.5 230.5
Condensed Consolidated Statement of Financial Position
(Unaudited) (Unaudited) (Audited)
As at As at As at
30 June 30 June 31 December
2014 2013 2013
Note Rm Rm Rm
ASSETS
Non-current assets 3,408.3 3,223.6 3,280.4
Property, plant and equipment 2,205.2 2,058.2 2,076.0
Goodwill and other intangible assets 1,078.3 1,053.2 1,083.8
Other non-current financial assets and investment
in equity accounted investee's 111.6 103.2 109.5
Deferred tax assets 13.2 9.0 11.1
Current assets 3,075.8 2,502.4 2,926.1
Inventories 1,030.8 883.9 944.1
Trade and other receivables 1,722.0 1,526.9 1,579.7
Cash and cash equivalents 323.0 91.6 402.3
Total assets 6,484.1 5,726.0 6,206.5
EQUITY AND LIABILITIES
Capital and reserves
Stated capital 9 2,326.0 2,326.0 2,326.0
Other reserves 4.0 42.8 (19.3)
Retained earnings 515.0 260.0 478.8
Equity attributable to the equity holders of Mpact 2,845.0 2,628.8 2,785.5
Non-controlling interests in subsidiaries 98.0 75.2 98.1
Total equity 2,943.0 2,704.0 2,883.6
Non-current liabilities 1,448.3 1,388.1 1,446.5
Non-current borrowings 10 1,141.5 1,118.5 1,120.8
Retirement benefit obligations 55.4 64.7 54.0
Deferred tax liabilities 183.1 204.9 202.5
Other non-current liabilities 68.3 – 69.2
Current liabilities 2,092.8 1,633.9 1,876.4
Short-term borrowings and bank overdraft 10 587.6 454.8 397.3
Trade and other payables and provisions 1,493.3 1,173.8 1,471.5
Current tax liabilities 11.9 5.3 7.6
Total equity and liabilities 6,484.1 5,726.0 6,206.5
Condensed Consolidated Statement of Changes in Equity
Post- Total
Share-based Cash flow retirement attributable to Non-
Stated payments hedge benefits Other Retained equity holders controlling Total
capital reserves reserves reserves reserves^ earnings of Mpact interests equity
Rm Rm Rm Rm Rm Rm Rm Rm Rm
Balance at 1 January 2013 (audited) 2,326.0 10.3 (3.4) (0.3) 4.6 215.6 2,552.8 89.6 2,642.4
Dividends paid (81.8) (81.8) (81.8)
Total comprehensive income 8.6 3.2 126.1 137.9 2.7 140.6
Decrease in non-controlling interest and
put option exercised 16.0 0.5 16.5 (11.7) 4.8
Share scheme charges for the period 5.9 5.9 5.9
Dividends paid to non-controlling shareholders (5.4) (5.4)
Issue of shares options (1.3) 1.3
Purchase of shares(1) (2.5) (2.5) (2.5)
Reclassification (0.8) 0.8
Balance at 30 June 2013 (unaudited) 2,326.0 14.9 5.2 (0.3) 23.0 260.0 2,628.8 75.2 2,704.0
Dividends paid (35.9) (35.9) (35.9)
Total comprehensive income (1.1) 8.6 3.0 254.0 264.5 15.0 279.5
Purchase of shares1 (30.3) 2.5 (27.8) (27.8)
Share scheme charges for the period 15.2 15.2 15.2
Dividends paid to non-controlling shareholders (1.7) (1.7)
Decrease in non-controlling interest and
put option exercised (2.8) (1.1) (3.9) (3.9)
Put option held by non-controlling shareholder
of subsidiary (54.8) (54.8) 12.1 (42.7)
Increase in shareholding in a subsidiary (3.1) (3.1)
Reclassification 0.1 (0.7) (0.6) 0.6
Balance at 31 December 2013 (audited) 2,326.0 30.1 4.1 8.3 (61.8) 478.8 2,785.5 98.1 2,883.6
Dividends paid (94.9) (94.9) (94.9)
Total comprehensive income 1.9 0.3 149.5 151.7 151.7
Share scheme charges for the period 7.4 7.4 7.4
Dividends paid to non-controlling shareholders (0.1) (0.1)
Issue/exercise of shares options (16.2) 38.2 (15.9) 6.1 6.1
Purchase of shares(1) (10.8) (10.8) (10.8)
Reclassification 2.5 (2.5)
Balance at 30 June 2014 (unaudited) 2,326.0 21.3 6.0 8.3 (31.6) 515.0 2,845.0 98.0 2,943.0
^ Other reserves consist of the option to equity holder reserves, revaluation reserves, foreign currency translation
reserves and treasury shares.
1 Treasury shares purchased represent the cost of shares in Mpact Limited purchased in the market and held by the
Mpact Incentive Share Trust to satisfy share awards under the Group's share scheme. As at 30 June 2014,
there are 15,643 treasury shares on hand.
Condensed Consolidated Statement of Cash Flows
(Unaudited) (Unaudited) (Audited)
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2014 2013 2013
Rm Rm Rm
Operating cash flows before movements in working capital 464.5 409.9 1,027.9
Net increase in working capital (212.6) (428.3) (220.6)
Cash generated/(absorbed) from operations 251.9 (18.4) 807.3
Taxation paid (72.6) (11.3) (121.8)
Dividends received from equity accounted investees 2.5 – 3.1
Net cash inflows/(outflows) from operating activities 181.8 (29.7) 688.6
Investment in property, plant and equipment (312.9) (206.7) (387.4)
Acquisition of business – (15.0) (51.7)
Other investing activities 6.4 (5.1) 9.8
Net cash outflows from investing activities (306.5) (226.8) (429.3)
Purchase of treasury shares (10.8) (2.5) (30.3)
Net proceeds from borrowings 200.9 119.1 47.4
Finance costs paid (59.7) (57.1) (112.6)
Dividends paid to Mpact shareholders (94.9) (81.8) (117.7)
Repayment of other non-current liabilities – (27.7) (27.7)
Other financing activities (0.2) (5.3) (7.1)
Net cash inflows/(outflows) from financing activities 35.3 (55.3) (248.0)
Net (decrease)/increase in cash and cash equivalents (89.4) (311.8) 11.3
Cash and cash equivalents at beginning of the period ^ 392.4 381.1 381.1
Cash and cash equivalents at end of the period ^ 303.0 69.3 392.4
^ Cash and cash equivalents net of overdrafts.
Notes
1. Basis of preparation
The condensed, consolidated interim financial statements has been prepared in accordance with International
Financial Reporting Standard (IAS) 34 Interim Financial Reporting, the SAICA Financial Reporting Guides as
issued by the Accounting Practices Committee and Financial Reporting Pronouncements as issued by Financial
Reporting Standards Council, and the requirements of the Companies Act of South Africa. The preparation of the
Group's consolidated results for the half year ended 30 June 2014 was supervised by the Chief Financial Officer,
BDV Clark CA(SA). These results are unaudited.
2. Accounting policies
The accounting policies and methods of computation used are consistent with those applied in the preparation of
the annual financial statements for the year ended 31 December 2013.
The following revised accounting standards, which had no significant impact on the Group, were adopted in the
current period:
– IAS 27: Separate financial statements
– IAS 32: Financial instruments – Presentation
– IAS 36: Impairment of Assets
– IAS 39: Financial Instruments – Recognition and Measurement
– IFRS 10: Consolidated financial statements
– IFRS 12: Disclosure of interests in other entities
3. Seasonality
Seasonal effects in the Group's markets have historically resulted in higher revenue and operating profits for the
second half, when compared to the first half.
(Unaudited) (Unaudited) (Audited)
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2014 2013 2013
Rm Rm Rm
4. Group segment analysis
Revenue
Paper 2,923.0 2,559.5 5,593.8
Plastics 1,069.7 968.8 2,123.8
3,992.7 3,528.3 7,717.6
Less: Inter-segment revenue (9.3) (8.8) (19.8)
Total revenue 3,983.4 3,519.5 7,697.8
Operating profit
Paper 280.7 251.3 635.3
Plastics 43.9 34.3 105.8
Corporate (54.6) (49.7) (86.3)
Underlying segment total 270.0 235.9 654.8
Special items (note 6) – – (2.4)
Share of equity accounted investee's profit 3.1 4.0 9.8
Net finance cost (59.6) (59.6) (114.2)
Profit before tax 213.5 180.3 548.0
Assets
Paper 3,426.8 2,900.5 3,112.5
Plastics 1,381.2 1,377.0 1,360.5
Corporate(1) 1,676.1 1,448.5 1,733.5
Total assets 6,484.1 5,726.0 6,206.5
(1) Includes intangible and other non-operating assets.
5. Operating profit
Included in operating profit are:
Amortisation of intangible assets 5.5 3.9 8.6
Depreciation 184.5 163.5 346.8
6. Special items
Impairment of property, plant and equipment – – 2.4
– – 2.4
7. Finance costs
Bank and other borrowings 60.9 59.3 114.8
Defined benefit arrangements 2.5 2.6 5.1
Fair value losses – 1.2 1.2
63.4 63.1 121.1
(Unaudited) (Unaudited) (Audited)
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2014 2013 2013
Rm Rm Rm
Cents Cents Cents
8. Earnings per share
Earnings per share (EPS)
Basic EPS 91.8 77.0 232.5
Diluted EPS 91.2 76.5 230.5
Underlying earnings per share(1)
Basic underlying EPS(2) 91.8 77.0 233.5
Diluted underlying EPS(2) 91.2 76.5 231.5
Headline earnings per share(3)
Basic headline EPS 91.5 76.7 233.3
Diluted headline EPS 90.8 76.2 231.5
(1) Underlying EPS excludes the impact of special items.
(2) Underlying earnings is arrived at by adjusting the profit attributable to equity holders of Mpact for special items,
net of tax (see note 6).
(3) The presentation of headline EPS is mandated under the JSE Listings Requirements. Headline earnings has
been calculated in accordance with Circular 2/2013, ‘Headline Earnings', as issued by the South African Institute
of Chartered Accountants.
The calculation of headline earnings, based on basic earnings is as follows:
(Unaudited) (Unaudited) (Audited)
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2014 2013 2013
Rm Rm Rm
Profit for the period attributable to equity
holders of Mpact 149.5 126.1 380.1
Profit on disposal of tangible and intangible assets (0.8) (0.7) (0.7)
Impairment of tangible assets – – 2.4
Related tax 0.2 0.2 (0.4)
Headline earnings for the period 148.9 125.6 381.4
Number of Number of Number of
shares shares shares
Basic number of shares outstanding 162,804,567 163,815,846 163,510,495
Effect of dilutive potential ordinary shares 1,096,139 969,216 1,404,161
Diluted number of ordinary shares outstanding(1) 163,900,706 164,785,062 164,914,656
(1) Diluted EPS is calculated by adjusting the weighted average number of ordinary shares in issue, on the assumption of
conversion of all potentially dilutive ordinary shares.
(Unaudited) (Unaudited) (Audited)
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2014 2013 2013
Rm Rm Rm
9. Stated capital
Authorised
217,500,000 shares of no par value – – –
Issued
163,575,656 shares of no par value 2,326.0 2,326.0 2,326.0
10. Borrowings
– Bank borrowings 1,124.3 1,100.0 1,100.0
– Long-term shareholder loans – 2.6 1.0
– Finance lease liability 17.2 15.9 19.8
Long-term borrowings 1,141.5 1,118.5 1,120.8
Short-term borrowings and short-term portion of
long-term borrowings 541.5 430.0 361.0
Short-term shareholder loans 26.1 2.5 26.4
Bank overdraft 20.0 22.3 9.9
Total borrowings 1,729.1 1,573.3 1,518.1
The Company's borrowing powers are not restricted.
There have been no changes to the overall terms of the
banking facilities.
11. Capital commitments
– Contracted capital commitments 476.6 43.9 111.1
– Approved capital commitments 711.9 49.5 66.9
Capital commitments 1,188.5 93.4 178.0
Commitments of R737.9 million will be spent in the next
12 months. The balance of R450.6 million will be spent
between 1 to 5 years.
These commitments will be met from existing cash
resources and borrowing facilities available to the Group.
12. Contingent liabilities
(a) Bank guarantees 7.4 7.5 7.4
(b) A settlement agreement relating to the valuation of
put options previously held in a Group subsidiary
provides for a deferred payment contingent upon
achievement of certain EBITDA and ROCE levels
for the years 2013 to 2018, subject to a maximum
amount of R15.7 million.
13. Net asset value per share
Net asset value per share is defined as net assets
divided by the number of ordinary shares in issue
as at the period end.
Net asset value per share (cents) 1,799.2 1,653.1 1,762.9
14. Related parties
Transactions between the Company and its respective subsidiaries, which are related parties, have been eliminated
on consolidation.
The Group and its subsidiaries, in the ordinary course of business, enter into various sales, purchases and service
transactions with associates and others in which the Group has a material interest. These transactions are under
terms that are no less favourable than those arranged with third parties. These transactions in total are not
significant.
There have been no significant changes to the related parties in this interim reporting period.
15. Post-balance sheet events
The directors are not aware of any matters or circumstances arising subsequent to 30 June 2014 that require any
additional disclosure or adjustment to the interim financial statements.
Disclaimer
This document including, without limitation, those statements concerning the demand outlook, expansion projects and its
capital resources and expenditure, may be considered to be forward-looking statements. By their nature, forward-looking
statements involve risk and uncertainty and although Mpact believes that the expectations reflected in such forward-
looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct.
Accordingly, results could differ materially from those set out in the forward-looking statements as a result of, among
other factors, changes in economic and market conditions, success of business and operating initiatives, changes in
the regulatory environment and other government action and business and operational risk management. While Mpact
has taken reasonable care to ensure the accuracy of the information presented, Mpact accepts no responsibility for any
consequential, indirect, special or incidental damages, whether foreseeable or unforeseeable, based on claims arising out
of misrepresentation or negligence arising in connection with a forward-looking statement. This document is not intended
to contain any profit forecasts or profit estimates.
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