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Unaudited group results and cash dividend declaration for the six months ended 31 March 2015
Reunert Limited
Incorporated in the Republic of South Africa
Reg. No 1913/004355/06
Ordinary share Code: RLO
ISIN code: ZAE000057428
("Reunert", "the group" or "the company")
UNAUDITED GROUP RESULTS AND
Cash dividend declaration
for the six months ended 31 March 2015
COMMENTARY
Notwithstanding a sluggish domestic economy, the adverse impact of load shedding and delays in the commencement of various national infrastructure
projects, trading results for the past six months reflect a pleasing improvement over the prior year. This improvement is due to moderate, real growth in
operating profit from continuing operations, additional proceeds on the sale of the Nashua Mobile subscriber bases and interest earned on the Nashua
Mobile disposal proceeds.
Nashua Mobile's last month of trading was November 2014, whereafter the subscriber bases were successfully transferred. Nashua Mobile is presented as
a discontinued operation, which is consistent with previous disclosures.
Revenue from continuing operations increased by 7% to R3,9 billion, whilst operating profit increased by 5% to R502,8 million.
Normalised headline earnings per share for the group, from all operations, increased by 10% to 261,4 cents, compared to the prior period. Basic earnings
per share for the group, on the same basis, increased by 20% to 286,5 cents, whilst headline earnings per share for the group increased by 11% to 264,8
cents.
REVIEW OF OPERATIONS
CBI-electric
Revenue from the segment, including the group's share from the telecoms joint venture, increased by 11% to R2,0 billion. On the back of the increase in
sales volumes and improved efficiencies, operating profit increased by a pleasing 20% to R257,3 million.
African Cables experienced higher demand for cable resulting in better factory capacity utilisation, with associated improved margins. The demand was
driven mainly by the municipal, mining and project business customers. This increase in volume was offset, in part, by a sharp reduction in offtake by
Eskom, reduced sales of renewable energy cables due to delays in project commencement and tough conditions in the general market.
The Low Voltage business continued to deliver a positive local market performance. However, business activity has slowed from the start of the 2015
calendar year. Competition remains intense in the local market and margin protection remains a key operational objective. The disappointing South African
market conditions have been partially offset by improved sales into Africa. Export volumes into the rest of the world remain in line with expectation and
overall export volumes are slightly ahead of the prior period. The Solutions' business remained under pressure and was rightsized, resulting in a small
restructuring cost.
Telecom Cables reduced its cost base in the prior year and returned to profitability.
Nashua
Segmental revenue from continuing operations (excluding Nashua Mobile) increased by 8% to R1,7 billion. Operating profit increased by 19% to R243,7
million driven by increased volumes in ECN, a larger rental asset book in Quince and the return to profit of Nashua Communications and Prodoc.
The office automation industry continues to be characterised by strong competition resulting in ongoing margin pressure. The impact of reduced margins
has been partially offset by cost reductions and improved sales across all product ranges.
The voice component of Nashua's business has delivered very pleasing results. Nashua Communications, which offers unified communication solutions,
has been successful in acquiring and executing several large corporate contracts. ECN, our VoIP business, has had another successful period and has grown
its customer base and minutes routed over their network. Eskom's load shedding has had an impact on sales volumes but the improved volumes and
margin led to a significantly improved trading performance.
Quince Capital's first half operating results were positive, mainly due to the higher average loan book of R2,0 billion, which is a 9% increase on the prior
period. Despite the challenging economic conditions, credit losses continue to be contained.
Reutech
Revenue reduced by 13% to R423,7 million and operating profit decreased to R35,3 million. Reutech still has a material project component and delays in the
receipt of certain significant project orders adversely affected the first half. Revenue from solar tracker manufacture did not recur following the successful
completion of the Touwsriver project in the prior year. Traditional sales and annuity income from maintenance contracts were in line with expectation and
continue to provide the platform to support the project business.
PROSPECTS
The economic conditions in South Africa are not expected to improve significantly in the near future. However, the receipt of large, medium-term base load
orders by Reutech and improved trading positions in most of the group's existing businesses position Reunert well to deliver real growth in the financial
year.
The group's strong balance sheet and cash position will enable the group to focus on and prioritise strategically compatible growth opportunities.
The financial information on which the prospects are based has not been reviewed or reported on by the group's external auditors.
DIRECTORATE
Ms Manuela Krog resigned from the board, risk committee and as Chief Financial Officer on 31 March 2015. The board extends its sincere appreciation to
Manuela for her services over the past four years and wishes her and her family all the best.
Mr Nick Thomson has been appointed to succeed Manuela on the board as Chief Financial Officer of Reunert on 15 June 2015. Mr Lood de Jager, the
Reunert group finance executive, will serve as the acting Chief Financial Officer, from 31 March 2015 until Mr Thomson takes up his office at Reunert.
With effect from 31 March 2015 Ms Mohini Moodley was appointed to the board as Executive Director: Transformation and Human Resources as well as to
the social, ethics and transformation committee. Mohini joined Reunert on 1 September 2013 in the position of group human resources and transformation
executive.
CASH DIVIDEND
Notice is hereby given that a gross interim cash dividend No 178 of 105,0 cents per ordinary share (2014: 95,0 cents per share) has been declared by the
directors for the six months ended 31 March 2015.
The dividend has been declared from income reserves.
A dividend withholding tax of 15% will be applicable to all shareholders who are not exempt from, or who do not qualify for a reduced rate of withholding
tax. The net dividend payable to shareholders subject to withholding tax at a rate of 15% thus amounts to 89,25 cents per share.
The issued share capital at the declaration date is 182 992 796 ordinary shares. Reunert's income tax reference number is 9100/101/71/7P.
In compliance with the requirements of Strate, the following dates are applicable:
Last date to trade (cum dividend) Thursday, 11 June 2015
First date of trading (ex-dividend) Friday, 12 June 2015
Record date Friday, 19 June 2015
Payment date Monday, 22 June 2015
Shareholders may not dematerialise or rematerialise their share certificates between Friday, 12 June 2015 and Friday, 19 June 2015, both days inclusive.
On behalf of the board
Trevor Munday
Chairman
Alan Dickson
Chief Executive
Lood de Jager
Acting Chief Financial Officer
Sandton
18 May 2015
Financial information
Summarised group income statement
Six months ended
31 March
Year ended
30 September
2015 2014 % 2014
R million Notes (Unaudited) (Unaudited) change (Audited)
Revenue 3 935,3 3 681,7 7 7 773,8
Earnings before interest, taxation, depreciation and amortisation (EBITDA) 559,2 529,1 6 1 125,1
Depreciation and amortisation 56,4 51,9 108,1
Operating profit 1 502,8 477,2 5 1 017,0
Net interest income/(expense) and dividend income 2 57,5 (7,8) (9,9)
Profit before abnormal items 560,3 469,4 19 1 007,1
Abnormal items - - (326,9)
Profit before taxation 560,3 469,4 19 680,2
Taxation 157,2 137,0 278,4
Profit after taxation 403,1 332,4 21 401,8
Share of joint ventures' profit/(loss) 6,0 0,5 (11,8)
Profit for the period from continuing operations 409,1 332,9 23 390,0
Profit for the period from discontinued operation 3 67,0 60,4 11 1 584,2
Profit for the period 476,1 393,3 21 1 974,2
Profit attributable to:
Non-controlling interests 5,0 3,7 36 3,9
Equity holders of Reunert - from continuing operations 404,1 329,2 23 386,1
Equity holders of Reunert - from discontinued operation 67,0 60,4 11 1 584,2
Basic earnings per share from continuing operations (cents) 4 & 5 245,7 200,9 22 235,4
Diluted earnings per share from continuing operations (cents) 4 & 5 242,2 198,7 22 232,6
Basic earnings per share from discontinued operation (cents) 4 & 5 40,8 36,9 11 966,2
Diluted earnings per share from discontinued operation (cents) 4 & 5 40,2 36,4 10 954,5
Basic earnings per share (cents) 4 & 5 286,5 237,8 20 1 201,6
Diluted earnings per share (cents) 4 & 5 282,4 235,1 20 1 187,1
Six months ended
31 March Year ended
30 September
2015 2014 % 2014
Cents Notes (Unaudited) (Unaudited) change (Audited)
Other measures of earnings per share from continuing operations
Headline earnings per share 4 & 5 242,1 201,3 20 391,2
Diluted headline earnings per share 4 & 5 238,6 199,1 20 386,5
Normalised headline earnings per share 4 & 5 238,7 200,0 19 439,0
Diluted normalised headline earnings per share 4 & 5 235,2 197,9 19 433,7
Other measures of earnings per share
Headline earnings per share 4 & 5 264,8 238,5 11 505,6
Diluted headline earnings per share 4 & 5 261,0 235,8 11 499,5
Normalised headline earnings per share 4 & 5 261,4 237,2 10 553,3
Diluted normalised headline earnings per share 4 & 5 257,6 234,6 10 546,7
Cash dividend per ordinary share declared 105,0 95,0 11 370,0
Summarised group statement of comprehensive income
Six months ended
31 March
Year ended
30 September
2015 2014 2014
R million (Unaudited) (Unaudited) (Audited)
Profit for the period 476,1 393,3 1 974,2
Other comprehensive income, net of taxation:
Items that may be reclassified subsequently to profit or loss
Gains/(losses) arising from translating the financial results of foreign subsidiaries (0,1) (0,1) 0,1
Total comprehensive income 476,0 393,2 1 974,3
Total comprehensive income attributable to:
Non-controlling interests 4,5 3,7 2,7
Equity holders of Reunert - from continuing operations 404,5 329,1 387,4
Equity holders of Reunert - from discontinued operation 67,0 60,4 1 584,2
Summarised group balance sheet
31 March 31 March 30 September
2015 2014 2014
R million Notes (Unaudited) (Unaudited) (Audited)
Non-current assets
Property, plant and equipment, investment properties and intangible assets 710,1 724,3 722,4
Goodwill 7 647,8 859,3 649,3
Investments and loans 8 93,0 86,2 91,6
Investment in joint ventures 155,0 160,7 148,5
Rental and finance lease receivables 1 534,7 1 355,0 1 465,3
Deferred taxation 51,5 52,6 51,1
3 192,1 3 238,1 3 128,2
Current assets
Inventory and contracts in progress 917,5 1 062,0 983,7
Rental and finance lease receivables 738,2 642,7 722,5
Accounts receivable, derivative assets and taxation 1 651,9 1 532,2 1 443,6
Cash and cash equivalents 2 521,1 463,1 697,0
Assets of discontinued operation 3 62,6 874,7 2 607,6
5 891,3 4 574,7 6 454,4
Total assets 9 083,4 7 812,8 9 582,6
Equity attributable to equity holders of Reunert 6 300,5 4 839,9 6 269,4
Non-controlling interests 60,2 73,8 63,4
Total equity 6 360,7 4 913,7 6 332,8
Non-current liabilities
Deferred taxation 96,2 64,7 121,2
Long-term borrowings 9 402,2 24,9 425,5
Non-current liabilities of discontinued operation 3 - 65,6 250,4
498,4 155,2 797,1
Current liabilities
Accounts payable, derivative liabilities, provisions and taxation 1 896,2 1 496,8 1 458,0
Bank overdrafts, short-term loans and current portion of long-term borrowings
(including finance leases) 87,9 816,0 343,1
Current liabilities of discontinued operation 3 240,2 431,1 651,6
2 224,3 2 743,9 2 452,7
Total equity and liabilities 9 083,4 7 812,8 9 582,6
Summarised group cash flow statement
Six months ended
31 March Year ended
30 September
2015 2014 2014
R million (Unaudited) (Unaudited) (Audited)
EBITDA 606,7 620,2 1 315,0
EBITDA from continuing operations 559,2 529,1 1 125,1
EBITDA from discontinued operation 47,5 91,1 189,9
Decrease/(increase) in net working capital 165,7 (75,3) (43,8)
Other (net) 15,1 (1,5) (93,2)
Cash generated from operations 787,5 543,4 1 178,0
Net interest and dividend income 57,5 (6,0) (5,7)
Taxation paid (192,1) (196,4) (332,4)
Dividends paid (including to non-controlling interests) (455,0) (452,0) (612,3)
Net cash flows from operating activities 197,9 (111,0) 227,6
Net cash flows from investing activities 1 862,4 (422,0) (472,8)
Capital expenditure (47,3) (65,0) (122,1)
Net cash flows arising from disposal of businesses 1 971,2 - -
Net cash flows arising from acquisition of businesses - (222,9) (218,9)
Movement in total rental and finance lease receivables (60,3) (171,8) (191,9)
Non-current loans granted - (1,2) (5,9)
Dividends received - 38,4 38,4
Other (1,2) 0,5 27,6
Net cash flows from financing activities (29,2) 10,2 417,9
Shares issued 5,8 10,6 26,7
Long-term borrowings (repaid)/raised (19,7) (0,4) 403,7
Cash flows arising from dealings with minority shareholders (15,3) - (15,7)
Other - - 3,2
Increase/(decrease) in net cash resources 2 031,1 (522,8) 172,7
Net cash resources at the beginning of the period 414,5 241,8 241,8
Net cash resources/(borrowings) at the end of the period 2 445,6 (281,0) 414,5
Cash and cash equivalents 2 521,1 463,1 697,0
Cash and cash equivalents of discontinued operation - 71,7 51,7
Bank overdrafts - (815,8) (33,7)
Quince short-term borrowings (75,5) - (300,5)
Net cash resources/(borrowings) at the end of the period 2 445,6 (281,0) 414,5
The cash flow statement includes the cashflows of all operations, including the discontinued operation, which has been recorded in terms of IFRS 5 - Non
Current Assets Held for Sale.
Summarised group statement of changes in equity
Six months ended Year ended
31 March 30 September
2015 2014 2014
R million (Unaudited) (Unaudited) (Audited)
Share capital
Balance at the beginning of the period 294,1 288,1 288,1
Issue of shares 5,8 10,6 26,7
Cancellation of issued shares (7,5) (20,7) (20,7)
Balance at the end of the period 292,4 278,0 294,1
Empowerment shares* (276,1) (276,1) (276,1)
Treasury shares
Balance at the beginning of the period (312,7) (1 253,6) (1 253,6)
Cancellation of issued shares 312,7 940,9 940,9
Balance at the end of the period - (312,7) (312,7)
Foreign currency translation reserves
Balance at the beginning of the period 3,4 2,1 2,1
Other comprehensive income 0,4 (0,1) 1,3
Balance at the end of the period 3,8 2,0 3,4
Retained earnings
Balance at the beginning of the period 6 560,7 6 117,4 6 117,4
Profit after taxation attributable to equity holders of Reunert 471,1 389,6 1 970,3
Cash dividends declared and paid (452,2) (450,1) (606,2)
Cancellation of issued shares (305,2) (920,2) (920,2)
Transfer from/(to) reserves 6,0 12,0 (0,6)
Balance at the end of the period 6 280,4 5 148,7 6 560,7
Equity attributable to equity holders of Reunert 6 300,5 4 839,9 6 269,4
Non-controlling interests
Balance at the beginning of the period 63,4 59,4 59,4
Share of total comprehensive income 4,5 3,7 2,7
Dividends declared and paid (2,8) (1,9) (6,1)
Net changes in non-controlling interests (4,9) 12,6 9,4
Settlement of non-controlling interest loan - - (2,0)
Balance at the end of the period 60,2 73,8 63,4
Total equity at end of the period 6 360,7 4 913,7 6 332,8
* These are shares held by Bargenel Investments (Pty) Limited (Bargenel), a company sold by Reunert to an accredited
empowerment partner in 2007. Until the amount owing by the empowerment partner is repaid to Reunert, Bargenel is consolidated
by the group as the significant risks and rewards of ownership of the equity have not passed to the empowerment partner.
Summarised segmental analysis
Six months ended
31 March
Year ended
30 September
2015 % 2014 % % 2014 %
R million (Unaudited) of total (Unaudited) of total change (Audited) of total
Revenue1
CBI-electric 1 965,4 43 1 774,1 31 11 3 610,9 32
Nashua 2 227,4 48 3 379,8 60 (34) 6 787,2 59
Reutech 423,7 9 487,7 9 (13) 1 000,0 9
Other 6,8 - 7,4 - (8) 16,6 -
Total operations 4 623,3 100 5 649,0 100 (18) 11 414,7 100
Revenue from equity accounted joint ventures (159,1) (159,6) - (292,8)
Revenue from discontinued operation (528,9) (1 807,7) (71) (3 348,1)
Revenue as reported 3 935,3 3 681,7 7 7 773,8
Operating profit
CBI-electric 257,3 46 214,6 38 20 427,6 36
Nashua2 291,2 52 290,0 51 - 637,5 53
Reutech 35,3 6 77,9 14 (55) 169,7 14
Other2 (25,7) (4) (19,4) (3) (33) (35,5) (3)
Total operations 558,1 100 563,1 100 (1) 1 199,3 100
Operating (profit)/loss from equity accounted joint ventures (7,8) (0,3) 1,4
Operating profit from discontinued operation (47,5) (85,6) (45) (183,7)
Operating profit as reported 502,8 477,2 5 1 017,0
As at
31 March 31 March 30 September
2015 % 2014 % 2014 %
R million (Unaudited) of total (Unaudited) of total (Audited) of total
Total assets
CBI-electric 1 947,1 21 2 037,3 26 1 922,3 20
Nashua 4 032,4 45 4 830,0 62 6 399,1 67
Reutech 948,5 10 701,3 9 651,0 7
Other3 2 155,4 24 244,2 3 610,2 6
Total assets as reported 9 083,4 100 7 812,8 100 9 582,6 100
1 Inter-segment revenue is immaterial and has not been separately disclosed.
2 Net interest charged to Quince through the group treasury function has been eliminated in line with the consolidation principles of IFRS. This
amounted to R37,9 million (2014 R50,4 million) (September 2014 R82,2 million).
3 Other mainly consists of group treasury cash balances.
NOTES
Six months ended
31 March Year ended
30 September
2015 2014 2014
R million (Unaudited) (Unaudited) (Audited)
1. Operating profit
Operating profit includes:
- Cost of sales 2 642,2 2 436,0 5 143,4
- Realised (loss)/gain on foreign exchange and derivative instruments (12,8) 8,6 (27,4)
- Unrealised gain on foreign exchange and derivative instruments 10,0 11,5 45,2
2. Interest and dividends
Interest income 64,0 5,9 14,1
Interest expense (6,5) (13,7) (24,6)
Dividend income - - 0,6
Total 57,5 (7,8) (9,9)
3. Discontinued operation and assets held for sale
As announced in the prior year, Nashua Mobile, entered into sale agreements with the mobile network operators, in terms of which it disposed of its
subscriber bases. Following unconditional approval from the Competition Tribunal on 29 September 2014, the sale was recognised. All conditions were met
for the transfer of the subscriber bases to the network operators on 29 November 2014.
Arising out of this, the summarised group income statement and related notes exclude the results of Nashua Mobile.
Nashua Mobile is presented in the Nashua segment of the segmental analysis.
The summarised income statement, abridged cashflows and related notes of Nashua Mobile are presented below:
Summarised income statement
Six months ended
Year ended
31 March 30 September
2015 2014 % 2014
R million (Unaudited) (Unaudited) change (Audited)
Revenue 528,9 1 807,7 (71) 3 348,1
EBITDA 47,5 91,1 (48) 189,9
Operating profit 47,5 85,6 (45) 183,7
Profit for the period 67,0 60,4 11 1 584,2
Summarised cash flow statement
Six months ended
31 March
Year ended
30 September
2015 2014 2014
R million (Unaudited) (Unaudited) (Audited)
Net cash flows from:
Operating activities (101,1) 110,7 183,1
Investing activities 1 971,2 (2,3) 4,3
Net cash flow 1 870,1 108,4 187,4
Summarised balance sheet
The major classes of assets and liabilities of Nashua Mobile at the end of the reporting period were as follows:
As at As at Year ended
31 March 31 March 30 September
2015 2014 2014
R million (Unaudited) (Unaudited) (Unaudited)
Assets of discontinued operation 62,6 874,7 2 607,6
Non-current liabilities of discontinued operation - 65,6 250,4
Current liabilities of discontinued operation 240,2 431,1 651,6
As at As at Year ended
31 March 31 March 30 September
2015 2014 2014
R million (Unaudited) (Unaudited) (Audited)
4. Number of shares used to calculate earnings per share
Weighted average number of shares in issue used to determine basic earnings,
headline earnings and normalised headline earnings per share (millions of shares) 164,4 163,8 164,0
Adjusted by the dilutive effect of unexercised share options granted (millions of
shares) 2,4 1,9 2,0
Weighted average number of shares used to determine diluted basic, diluted
headline and diluted normalised headline earnings per share (millions of shares) 166,8 165,7 166,0
5.1 Headline earnings
Profit attributable to equity holders of Reunert from continuing operations 404,1 329,2 386,1
Headline earnings are determined by eliminating the effect of the following items
from attributable earnings:
Net gain on disposal of business (after a tax charge of R1,3 million) (2014 Rnil)
(September 2014 Rnil) (5,7) - -
Net (gain)/loss on disposal of property, plant and equipment and intangible assets
(after a tax charge of R0,1 million) (2014 credit of R0,1 million) (September 2014
credit of R0,1 million) (0,3) 0,5 0,3
Impairment of goodwill in subsidiaries (after tax charge of Rnil) (2014 Rnil)
(September 2014 Rnil) - - 245,9
Impairment of goodwill in equity accounted joint venture (after tax charge of Rnil)
(2014 Rnil) (September 2014 Rnil) - - 10,8
Impairment reversal recognised for property, plant and equipment (after tax charge
of Rnil) (2014 Rnil) (September 2014 charge of R0,6 million) - - (1,7)
Headline earnings from continuing operations 398,1 329,7 641,4
Profit attributable to equity holders of Reunert from discontinued operation 67,0 60,4 1 584,2
Net gain on disposal of business (after a tax charge of R11,9 million) (2014 Rnil)
(September 2014 charge of R264,4 million) (29,8) - (1 397,1)
Net loss on disposal of property, plant and equipment and intangible assets
(after tax credit of R0,1 million) (2014 credit of R0,2 million) (September 2014 credit
of R0,2 million) 0,1 0,5 0,5
Headline earnings from discontinued operation 37,3 60,9 187,6
Headline earnings 435,4 390,6 829,0
5.2 Normalised headline earnings
Headline earnings from continuing operations (refer to note 6.1) 398,1 329,7 641,4
Normalised headline earnings are determined by eliminating the effect of the
following items from attributable headline earnings:
Settlement provided in respect of ATC (after a tax credit of Rnil) - - 81,0
Economic interest in the settlement provided in respect of ATC attributable to
non-controlling interests with outstanding equity related loan accounts - - (8,2)
Net economic interest in profit attributable to non-controlling interests with
outstanding equity related loan accounts (refer to note 6) (5,5) (2,0) 5,5
Normalised headline earnings from continuing operations 392,6 327,7 719,7
Headline earnings attributable to equity holders of Reunert from discontinued
operation 37,3 60,9 187,6
Normalised headline earnings 429,9 388,6 907,3
As at As at Year ended
31 March 31 March 30 September
2015 2014 2014
R million (Unaudited) (Unaudited) (Audited)
6. Non-controlling interests with outstanding equity related loan accounts
Where the significant risks and rewards of ownership in respect of equity interests
have not passed to the non-controlling shareholders, these are not recognised as
non-controlling interests.
Had the non-controlling interests been recognised, the effect would be the
following:
- Net economic interest in current period profit/(loss) that is attributable to all
affected non-controlling shareholders 5,5 2,0 (5,5)
- Balance sheet interest that is economically attributable to all affected non-
controlling shareholders 113,4 104,1 102,0
7. Goodwill
Carrying value at the beginning of the period 649,3 792,2 792,2
Acquisition of businesses - 225,2 263,1
Goodwill impaired during the period - - (245,9)
Exchange differences on consolidation of foreign subsidiaries (1,5) - (2,0)
Goodwill derecognised with discontinued operation - (158,1) (158,1)
Carrying value at the end of the period 647,8 859,3 649,3
8. Investments and loans
Loans - at cost 77,5 75,4 76,4
Investment in insurance cells - at fair value 13,8 9,1 13,5
Other unlisted investments - at cost 1,7 1,7 1,7
Carrying value at the end of the period 93,0 86,2 91,6
9. Long-term borrowings
Total long-term borrowings (including finance leases)1 414,6 25,1 434,4
Less: short-term portion (including finance leases) (12,4) (0,2) (8,9)
402,2 24,9 425,5
1 Long-term borrowings in respect of the Quince rental book amount to R401,7 million (September 2014 R403,7 million)
10. Basis of preparation
These summarised consolidated financial statements have been prepared in accordance with the framework concepts and the recognition and
measurement criteria of IFRS and its interpretations adopted by the International Accounting Standards Boards (IASB) in issue and effective for the group at
1 October 2014 and the SAICA Financial Reporting Guides, as issued by the Accounting Practices Committees and Financial Reporting pronouncements as
issued by the Financial Reporting Standards Council. This summarised consolidated information has been prepared using the information as required by IAS
34 - Interim Financial Reporting, and complies with the Listings Requirements of the JSE Limited and the requirements of the Companies Act, No 71 of
2008, of South Africa. This report was compiled under the supervision of L de Jager (Acting Chief Financial Officer).
The group's accounting policies, as per the audited annual financial statements for the year ended 30 September 2014, have been consistently applied.
These accounting policies comply with IFRS.
11. Unconsolidated subsidiary
The financial results of Cafca Limited (Cafca), a subsidiary incorporated in Zimbabwe, have not been consolidated in the group results as the group does not
have management control. The amounts involved are not material to the group's results.
At 31 March 2015 Cafca's retained earnings amounted to US$13,2 million.
12. Related party transactions
The group entered into various transactions with related parties, which occurred in the ordinary course of business and under terms that are no more
favourable than those arranged with independent third parties.
13. Events after balance sheet date
No events have occurred after the balance sheet date that require additional disclosure or adjustment to the results presented.
Supplementary information
31 March 31 March 30 September
2015 2014 2014
R million (unless otherwise stated) (Unaudited) (Unaudited) (Audited)
Net worth per share (cents) 3 832 2 953 3 816
Current ratio (:1) 2,6 1,6 2,6
Net number of ordinary shares in issue (million) 164,4 163,9 164,3
Number of ordinary shares in issue (million) 182,9 187,2 187,6
Less: Empowerment shares (million) (18,5) (18,5) (18,5)
Less: Treasury shares (million) - (4,8) (4,8)
Capital expenditure 47,3 65,0 122,1
- expansion 29,4 53,8 92,3
- replacement 17,9 11,2 29,8
Capital commitments in respect of property, plant and equipment 54,1 48,4 37,7
- contracted 21,1 32,9 21,4
- authorised not yet contracted 33,0 15,5 16,3
Commitments in respect of operating leases 62,5 121,3 74,7
Secretaries' certification
In terms of section 88(2)(e) of the Companies Act, 71 of 2008, we certify that, to the best of our knowledge and belief, the company has lodged with the
Companies and Intellectual Property Commission for the financial period ended 31 March 2015 all such returns and notices as are required of a public
company in terms of the aforesaid Act and that all such returns and notices appear to be true, correct and up to date.
Karen Louw
for Reunert Management Services Proprietary Limited
Group Company Secretaries
Directors
TS Munday (Chairman)*,T Abdool-Samad*, AE Dickson (Chief Executive), SD Jagoe*, S Martin*, M Moodley, TJ Motsohi*, NDB Orleyn**, SG Pretorius*,
MAR Taylor, R Van Rooyen*
* Independent non-executive ** Non-executive
Registered office
Lincoln Wood Office Park, 6 - 10 Woodlands Drive, Woodmead, Sandton
PO Box 784391, Sandton, 2146
Telephone +27 11 517 9000
Transfer secretaries
Computershare Investor Services Proprietary Limited
70 Marshall Street, Johannesburg, 2001, P O Box 61051, Marshalltown, 2107
Sponsor
Rand Merchant Bank (A division of FirstRand Bank Limited)
Enquiries
Carina de Klerk +27 11 517 9000 or e-mail invest@reunert.co.za.
For more information log on to the Reunert website at www.reunert.com.
19 May 2015
www.reunert.com
Date: 19/05/2015 07:19:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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