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Trading statement for the year ending 30 June 2015
Discovery Limited
(Registration number 1999/007789/06)
(Incorporated in the Republic of South Africa)
Ordinary share code: DSY
ISIN: ZAE000022331
("Discovery" or "the Company")
TRADING STATEMENT FOR THE YEAR ENDING 30 JUNE 2015
This trading statement is issued in respect of two items:
1. Provide an update of the total shares in issue following the Rights Issue completed on 7 April 2015;
and
2. In terms of the Listings Requirements of the JSE Limited, shareholders are required to be advised if
earnings per share is expected to differ by at least 20% from the previous reporting period.
Discovery’s earnings for the year ending 30 June 2015 cannot be quantified with reasonable
certainty, given the early stage in the reporting period. However, the acquisition of the remaining
25% shareholding in the Prudential Health Holdings joint venture extinguished the put options
Prudential Assurance Company held in respect of its interest in the joint venture. The accounting
treatment of this has an effect on earnings per share and headline earnings per share, but does not
impact normalised headline earnings, which the Company views as an appropriate measure of
performance.
1. RIGHTS ISSUE
Shareholders are referred to the Company’s Results of the Rights Issue announcement published on the
Stock Exchange News Service ("SENS") on 7 April 2015, whereby 55,555,556 shares were issued for R90
each. As a result, total shares in issue increased from 591,872,390 shares to 647,427,946 shares. In
terms of International Accounting Standards (IAS 33: Earnings per share), the weighted average number
of shares for the current and prior period will be adjusted by the bonus element of the Rights Issue.
This bonus element, totaling 16,065,241 shares, has resulted in the adjustment of the earnings and
headline earnings per share results for the year ended 30 June 2014, as follows:
30 June 2014 30 June 2014
Previously
reported Restated
Weighted number of shares in issue 565,471,445 581,073,704
Diluted weighted number of shares 580,047,142 595,649,400
Earnings per share (cents)
- basic 574.2 558.8
- diluted 559.8 545.1
Headline earnings per share (cents)
- undiluted 542.0 527.5
- diluted 528.4 514.5
Normalised headline earnings per share (cents)
- undiluted 611.3 594.9
- diluted 595.9 580.3
2. ACCOUNTING TREATMENT OF EXPIRY OF PRUDENTIAL PUT OPTION
As announced in the unaudited interim results for the six months ended 31 December 2014, the
Prudential transaction resulted in a non-recurring profit included in headline earnings and earnings per
share arising from the lapsing of the put options. This profit does not impact normalised headline
earnings, however, it does create large variances in headline earnings and earnings per share.
The excess between the carrying amount of the puttable non-controlling interest financial liability and
the consideration paid, which totaled R1 661 million, was recognised in profit or loss as a puttable non-
controlling fair value adjustment in the interim results. The same profit will carry through to the full year
results. The profit impacts positively on earnings per share and headline earnings per share. This will not
have any impact on normalised headline earnings per share. As a result, Discovery’s undiluted headline
earnings per share and basic earnings per share for the year ending 30 June 2015 ("results") is expected
to be at least 54% higher (at least 286 cents higher) than the 527.5 cents and 558.8 cents respectively
(the adjusted results for the corresponding prior period ended 30 June 2014).
It is expected that a trading statement for the year ending 30 June 2015 will be issued during August
2015, once the Company is in a position to provide specific guidance on its expected results.
The forecast financial information on which this trading statement is based has not been reviewed and
reported on by the Company’s external auditors.
Sandton
24 April 2015
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 24/04/2015 04:03:00 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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