Wrap Text
Reviewed condensed consolidated provisional
financial results for the year ended 28 February 2015
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: ZAE000086302
Reviewed condensed consolidated provisional financial results
for the year ended 28 February 2015
Performance highlights
Revenue growth 5,1%
HEPS 135,6 cents up 24,4%
Net debt:equity ratio 10,2%
NAV per share 656 cents
Final dividend per share 37 cents
Return on net operating assets 29,0%
COMMENTARY
BASIS OF PREPARATION
The reviewed condensed consolidated provisional financial
results ("financial statements") for the year ended 28 February
2015 ("year") contain, as a minimum, the information required
by IAS 34: Interim Financial Reporting and have been prepared
in accordance with the framework concepts and measurement
and recognition requirements of the International Financial
Reporting Standards ("IFRS"), the SAICA Financial Reporting
Guides as issued by the Accounting Practices Committee,
JSE Listings Requirements and in the manner required by the
South African Companies Act No. 71 of 2008, as amended.
The accounting policies and method of computation applied
in preparation of the financial statements are in accordance with
IFRS and are consistent with those applied in the audited annual
financial statements for the year ended 28 February 2014.
The financial statements have been prepared under the
supervision of the Financial Director, HP Verreynne BCompt
(Hons) CA(SA).
INTRODUCTION
The group continues to deliver solid results driven by its
diversification strategy. The turnaround of Infrasors Holdings
Limited ("Infrasors"), acquired during the previous year, is
progressing well and contributing positively to the overall
group results.
FINANCIAL RESULTS
Revenue for the year increased by 5,1% to R1 998,6 million from
R1 901,2 million the previous year. Headline earnings increased
by 24,4%, translating into headline earnings per share of 135,6
cents (2014: 109,0 cents).
Increased focus on reducing sales volumes of low-margin
products and increasing sales of higher margin products
added to the improved margins generated. The subdued sales
volume growth was offset by a strong performance from the
Clinker operations, reduced raw material costs in the Concrete
Based Products segment and improved contribution from
aggregates in KwaZulu-Natal.
Additional costs were incurred in respect of startup operations
in Mozambique. Headline earnings growth benefited from the
increased shareholding in the Infrasors group.
OPERATIONAL REVIEW
The Mining & Aggregates segment generated satisfactory
profits with an excellent contribution from the Clinker
operations. There was also a pleasing improvement in the
contribution from the traditional aggregates businesses,
specifically in KwaZulu-Natal and the Western Cape.
The KwaZulu-Natal operations improved its contribution
during the past year after incurring higher mining and
maintenance costs the previous year. These costs were incurred
to ensure, long-term compliance with Department of Mineral
Resources' requirements and to gear the business for growth.
The group's industrial mineral operations performed well, with
the Infrasors turnaround progressing as planned, and Glen
Douglas delivering another solid performance.
Contracting operations were impacted by contracts coming
to an end and setup costs for new contracts. Afrimat has
commenced operations in the north of Mozambique.
All processing plants are fully operational and well-placed
to supply market demand. Afrimat's flexible service delivery
model, supplemented by mobile equipment, positions the
group to take advantage of opportunities as and where
they arise.
The Concrete Based Products segment achieved an increase in
profits resulting from cost reduction initiatives and favourable
market conditions. During the comparative year a strike at SA
Block's operation resulted in lower profits for that year.
BUSINESS DEVELOPMENT
New business development remains a key component of the
group's growth strategy. A dedicated business development
team continues to successfully identify and pursue
opportunities in existing markets, as well as in anticipated new
high-growth areas in southern Africa.
B-BBEE
Existing BEE shareholders and the Afrimat BEE Trust in aggregate
hold 26,1% 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 37,0 (2014: 28,0) cents per share for the year
was declared on 20 May 2015. 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 31,45 cents per
share (2014: 23,8 cents per share).
PROSPECTS
The group is well positioned to capitalise on its strategic
initiatives such as continued growth from its excellent asset
base and the turnaround at the Infrasors operations.
Operational efficiency initiatives aimed at expanding volumes,
reducing costs and developing the required skill levels of all
employees remain a key focus across 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 evaluating
opportunities outside of South Africa. This will be done with
due caution.
Afrimat expects the current business climate to continue, with
only moderate market growth projected. The group's growth
will remain driven by the effective execution of its proven
strategy, which has been successfully implemented over the
last five years.
AUDITOR'S REVIEW
This report has been reviewed by the company's auditor,
Mazars. Their unmodified 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 issuer's registered office.
On behalf of the Board
MW von Wielligh AJ van Heerden
Chairman Chief Executive Officer
21 May 2015
CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER
COMPREHENSIVE INCOME
Reviewed Audited
year ended year ended
28 February 28 February
2015 2014 Change
R'000 R'000 %
Revenue 1 998 600 1 901 187 5,1
Cost of sales (1 472 007) (1 440 138)
Gross profit 526 593 461 049 14,2
Operating expenses (252 360) (230 092)
Loss on disposal of plant and equipment (484) (2 686)
Contribution from operations 273 749 228 271 19,9
Other net gains (note 2) – 1 426
Impairment of property, plant and equipment (note 3) (1 555) –
Profit on disposal of business (note 11) 7 853 –
Operating profit 280 047 229 697 21,9
Investment revenue 16 604 16 187
Finance costs (22 464) (24 981)
Share of losses of joint venture (987) –
Share of profit of associate 178 173
Profit before tax 273 378 221 076 23,7
Income tax expense (73 036) (58 110) 25,7
Profit for the year 200 342 162 966 22,9
Profit attributable to:
Owners of the parent 198 104 154 509
Non-controlling interests 2 238 8 457
200 342 162 966
Other comprehensive income
Items that may be subsequently reclassified to profit or loss
Net change in fair value of available-for-sale financial assets 213 1 694
Realised gains on disposal of available-for-sale financial assets – (1 426)
Income tax effect on available-for-sale financial assets (58) (45)
Currency translation differences (561) –
Income tax effect on currency translation differences 180 –
Other comprehensive income for the year, net of tax (226) 223
Total comprehensive income for the year 200 116 163 189 22,6
Total comprehensive income attributable to:
Owners of the parent 197 878 154 732
Non-controlling interests 2 238 8 457
200 116 163 189
Earnings per share:
Earnings per ordinary share (cents) 139,0 108,3 28,3
Diluted earnings per ordinary share (cents) 136,2 105,6 29,0
Note to statement of profit or loss and other comprehensive income:
Shares in issue:
Total shares in issue 143 262 412 143 262 412
Treasury shares (note 12) (505 829) (1 048 676)
Net shares in issue 142 756 583 142 213 736
Weighted average number of net shares in issue 142 524 228 142 620 285
Diluted weighted average number of shares 145 495 989 146 323 034
RECONCILIATION OF HEADLINE EARNINGS
Reviewed Audited
year ended year ended
28 February 28 February
2015 2014 Change
R'000 R'000 %
Profit attributable to owners of the parent 198 104 154 509
Loss on disposal of plant and equipment 484 2 686
Realised gains on disposal of available-for-sale financial assets (note 2) – (1 426)
Profit on disposal of business (note 11) (7 853) –
Impairment of property, plant and equipment (note 3) 1 555 –
Total income tax effects of adjustments 992 (353)
193 282 155 416 24,4
Headline earnings per ordinary share "HEPS" (cents) 135,6 109,0 24,4
Diluted HEPS (cents) 132,8 106,2 25,0
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Reviewed Audited
year ended year ended
28 February 28 February
2015 2014
R'000 R'000
ASSETS
Non-current assets
Property, plant and equipment 724 856 662 306
Investment property 3 040 3 040
Intangible assets 18 845 21 407
Goodwill 134 494 134 494
Investment in associate 380 201
Other financial assets (note 9) 158 228 134 223
Deferred tax (note 10) 25 274 5 048
Total non-current assets 1 065 117 960 719
Current assets
Inventories 126 804 112 965
Current tax receivable 8 867 6 163
Trade and other receivables 287 976 305 967
Other financial assets (note 9) 783 1 275
Cash and cash equivalents 78 124 92 328
Total current assets 502 554 518 698
Total assets 1 567 671 1 479 417
EQUITY AND LIABILITIES
Equity
Stated capital 295 328 323 176
Business combination adjustment (105 788) (105 788)
Treasury shares (8 056) (10 692)
Net issued stated capital 181 484 206 696
Other reserves 7 506 6 562
Retained earnings 748 010 610 509
Attributable to equity holders of parent 937 000 823 767
Non-controlling interests 12 437 14 196
Total equity 949 437 837 963
Liabilities
Non-current liabilities
Borrowings non-current (note 8) 56 775 94 606
Deferred tax (note 10) 105 708 91 652
Provisions 67 323 55 860
Total non-current liabilities 229 806 242 118
Current liabilities
Borrowings current (note 8) 65 646 76 432
Current tax payable 5 946 5 710
Trade and other payables 262 983 265 743
Obligation for share of joint venture's losses 979 –
Bank overdraft 52 874 51 451
Total current liabilities 388 428 399 336
Total liabilities 618 234 641 454
Total equity and liabilities 1 567 671 1 479 417
Note to statement of financial position:
Net asset value per share (cents) 656 579
Net tangible asset value per share (cents) 549 470
Total borrowings 122 421 171 038
Overdraft less cash and cash equivalents/(surplus cash) (25 250) (40 877)
Net debt 97 171 130 161
Net debt:equity ratio (%) 10,2 15,5
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
Reviewed Audited
year ended year ended
28 February 28 February
2015 2014
R'000 R'000
Cash flows from operating activities
Cash generated from operations 348 968 310 706
Interest revenue 13 621 17 919
Dividends received – 49
Finance costs (19 391) (23 406)
Tax paid (81 552) (61 407)
Net cash inflow from operating activities 261 646 243 861
Acquisition of property, plant and equipment (162 468) (121 326)
Proceeds on disposal of property, plant and equipment 23 198 16 894
Purchase of financial assets (32 413) (4 795)
Proceeds on sale of financial assets 14 288 13 522
Proceeds on disposal of business (note 11) 10 800 –
Consideration paid for shares held in treasury by Infrasors (note 13) (245) (810)
Acquisition of businesses (14) (69 942)
Net cash outflow from investing activities (146 854) (166 457)
Repurchase of Afrimat shares (14 509) (26 659)
Acquisition of additional non-controlling interest (note 13) (8 343) –
Equity related cost on share cancellation by Infrasors (220) –
Net movement in borrowings (note 8.2) (48 617) (50 361)
Dividends paid (note 5.2) (58 730) (44 649)
Net cash outflow from financing activities (130 419) (121 669)
Net decrease in cash, cash equivalents and bank overdrafts (15 627) (44 265)
Cash, cash equivalents and bank overdrafts at the beginning of the year 40 877 85 142
Cash, cash equivalents and bank overdrafts at the end of the year 25 250 40 877
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Business Non-
Stated combination Treasury Other Retained controlling
capital adjustment shares reserves earnings interests Total equity
R'000 R'000 R'000 R'000 R'000 R'000 R'000
Balance at 1 March 2013 347 661 (105 788) (1 491) 6 929 510 611 3 931 761 853
Changes:
Initial non-controlling interests 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) – – – (26 659)
Settlement of employee Share Appreciation
Rights exercised and reserve transfer, net of tax (24 879) – 15 522 (4 118) 4 118 – (9 357)
Treasury shares sold to BEE investor, net of tax 394 – 1 936 – – – 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 tax effect – – – (45) – – (45)
Dividends paid (note 5.2) – – – – (44 096) (553) (44 649)
Balance at 28 February 2014 323 176 (105 788) (10 692) 6 562 610 509 14 196 837 963
Business Non-
Stated combination Treasury Other Retained controlling
capital adjustment shares reserves earnings interests Total equity
R'000 R'000 R'000 R'000 R'000 R'000 R'000
Balance at 1 March 2014 323 176 (105 788) (10 692) 6 562 610 509 14 196 837 963
Changes:
Additional non-controlling interest acquired
due to:
– Infrasors Holdings Limited (note 13) – – – – (751) (779) (1 530)
– Afrimat Aggregates (Trading) (Proprietary)
Limited (note 13) – – – – (2 756) (1 236) (3 992)
– Delf Silica Coastal (Proprietary) Limited
(note 13) – – – (1 050) (1 771) (2 821)
Increase in effective shareholding in Infrasors
due to:
– Increase in shares held in treasury by Infrasors
(note 13) – – – – (33) (212) (245)
Acquisition of non-controlling interest in:
– Afrimat Mozambique Limitada – – – – – 1 1
Equity related cost on Infrasors treasury shares
cancelled – – – – (220) – (220)
Share-based payments – – – 10 663 – – 10 663
Purchase of treasury shares – – (14 509) – – – (14 509)
Settlement of employee Share Appreciation
Rights exercised and reserve transfer, net of tax (27 912) – 13 289 (2 937) 2 937 – (14 623)
Treasury shares issued to non-executive
directors 64 – 3 856 (6 556) – – (2 636)
Profit for the year – – – – 198 104 2 238 200 342
Other comprehensive income for the year – – – (226) – – (226)
Net change in fair value of available-for-sale
financial assets – – – 213 – – 213
Income tax effect – – – (58) – – (58)
Currency translation differences – – – (561) – – (561)
Income tax effect – – – 180 – – 180
Dividends paid (note 5.2) – – – – (58 730) – (58 730)
Balance at 28 February 2015 295 328 (105 788) (8 056) 7 506 748 010 12 437 949 437
NOTES
Reviewed Audited
year ended year ended
28 February 28 February
Change 2015 2014
% R'000 R'000
1. Segmental information
Revenue
External sales
Mining & Aggregates 5,7 1 422 305 1 346 029
Concrete Based Products 3,8 576 295 555 158
5,1 1 998 600 1 901 187
Intersegment sales
Mining & Aggregates 20,9 89 355 73 898
Concrete Based Products (55,2) 4 267 9 528
12,2 93 622 83 426
Total revenue
Mining & Aggregates 6,5 1 511 660 1 419 927
Concrete Based Products 2,8 580 562 564 686
5,4 2 092 222 1 984 613
Contribution from operations
Mining & Aggregates 220 255 195 235
Concrete Based Products 55 051 30 409
Other (1 557) 2 627
273 749 228 271
Contribution from operations split (%)
Mining & Aggregates 80,5 85,5
Concrete Based Products 20,1 13,3
Other (0,6) 1,2
100,0 100,0
Contribution from operations margin on external revenue (%)
Mining & Aggregates 15,5 14,5
Concrete Based Products 9,6 5,5
13,7 12,0
Other Information
Assets
Mining & Aggregates 951 196 887 806
Concrete Based Products 197 688 207 104
Other 418 787 384 507
1 567 671 1 479 417
Liabilities
Mining & Aggregates 304 720 335 908
Concrete Based Products 56 110 64 409
Other 257 404 241 137
618 234 641 454
Reviewed Audited
year ended year ended
28 February 28 February
2015 2014
R'000 R'000
2. Other net gains
Profit on disposal of available-for-sale financial assets – 1 426
3. Impairment of property, plant and equipment
Impairment of property, plant and equipment (1 555) –
An impairment loss was recognised, relating to property, plant and equipment
items written off at Delf Silica Coastal (Proprietary) Limited after the disposal of
the business as a going concern.
4. Currency translation differences
Foreign currency transactions relating to the Mozambique operations are
translated into the presentation currency (ZAR or R) by means of translating assets
and liabilities at closing rate at the date of the statement of financial position and
income and expenses at average exchange rate for the year and recognising all
resulting exchange differences in other comprehensive income.
5. Dividends
5.1 Afrimat Limited dividends paid/declared in respect of the current year profits
Interim dividend paid 18 625 15 759
Final dividend declared/paid 53 007 40 113
71 632 55 872
5.2 Dividends cash flow
Current year interim dividend paid 18 625 15 759
Previous year final dividend paid 40 113 28 652
Dividends received on treasury shares (8) (315)
58 730 44 096
Dividends paid by subsidiaries to non-controlling shareholders – 553
58 730 44 649
6. Authorised capital expenditure
Not yet contracted for
– Property, plant and equipment 182 114 153 815
7. Depreciation and amortisation
Depreciation 74 048 93 920
Amortisation 2 562 2 981
76 610 96 901
Lower depreciation charge is due to outsourcing of the Delf Sand (Proprietary)
Limited's transport fleet and the write off of fixed assets no longer in use and the
re-estimation of depreciation rates of Infrasors in the previous year.
8. Borrowings
8.1 Net movement
Opening balance 171 038 120 684
New borrowings 53 566 51 996
Acquired through acquisitions – 100 715
Repayments (102 183) (102 357)
Closing balance 122 421 171 038
Analysis as per statement of financial position
Borrowings non-current 56 775 94 606
Borrowings current 65 646 76 432
122 421 171 038
Reviewed Audited
year ended year ended
28 February 28 February
2015 2014
R'000 R'000
8.2 Analysis as per statement of cash flows
New borrowings 53 566 51 996
Repayments (102 183) (102 357)
(48 617) (50 361)
9. Other financial assets
Funding provided to Afrimat employees (BEE share purchase scheme) 136 200 103 926
Rehabilitation fund trusts and other 22 811 31 572
159 011 135 498
Analysis as per statement of financial position
Non-current other financial assets 158 228 134 223
Current other financial assets 783 1 275
159 011 135 498
Included in the above balance, are investments in environmental insurance
policies of R11,8 million (2014: R17,6 million) measured at fair value. The fair value of
unquoted unit trusts is derived using the adjusted net asset method. The adjusted
net asset method determines the fair value of the investment in the unit trust by
reference to the fair value of the individual assets and liabilities recognised in a unit
trust's statement of financial position. The significant inputs to the adjusted net
asset method are the fair values of the individual assets and liabilities whose fair
value is derived from quoted market prices in active markets. The fair values are
indirectly derived from prices quoted in Level 1, and therefore included in Level 2
of the fair value hierarchy.
10. Deferred tax
Deferred tax assets 25 274 5 048
Deferred tax liabilities (105 708) (91 652)
Deferred tax assets were recognised in certain subsidiaries relating to assessed losses.
These were not previously recognised due to uncertainties relating to the likelihood
of future taxable profits – the affected subsidiaries are now generating taxable
profits which led to the recognition of deferred tax assets on the assessed losses.
11. Proceeds on disposal of business
Net book value of property, plant and equipment disposed 634 –
Net book value of inventory disposed 2 313 –
Profit on disposal of business 7 853 –
10 800 –
The business, including all assets of Prima Quarries Namibia (Proprietary) Limited, has been disposed of as a going concern
with effect 1 October 2014.
Number of shares
28 February 28 February
2015 2014
12. Movement in number of treasury shares
Opening balance 1 048 676 204 242
Utilised for share appreciation rights scheme (1 214 712) (1 774 144)
Sold to BEE investor – (190 000)
Issued to non-executive directors (240 000) –
Purchased during the year 911 865 2 808 578
Closing balance 505 829 1 048 676
The fair value of the treasury shares issued to non-executive directors were R16,39 per share (weighted average traded price
over 30 days prior to agreement date). These treasury shares were held at cost of R16,06 per share. The difference between
the fair value of the shares issued and their cost amounting to R0,1 million, was allocated to stated capital. The treasury shares
were issued for no consideration and a share-based payment expense of R6,6 million was allocated to profit or loss.
13. Acquisition of additional non-controlling interest
Afrimat Aggregates (Trading) (Proprietary) Limited
Afrimat acquired the remaining 7,3% issued shares held by Joe Kalo Investments (Proprietary) Limited in Afrimat Aggregates
(Trading) (Proprietary) Limited ("AAT") with effect 1 March 2014.
Delf Silica Coastal (Proprietary) Limited
Delf Sand (Proprietary) Limited acquired an additional 33,3% shareholding from non-controlling interest party, in order to
obtain 100% shareholding in Delf Silica Coastal (Proprietary) Limited. The business of Delf Silica Coastal (Proprietary) Limited
was sold as a going concern with effect from 1 September 2014. Payment to the non-controlling interest party was in the
form of the transfer of physical assets and a portion of working capital.
Infrasors Holdings Limited
On 1 July 2014 Infrasors announced on SENS that it intends to issue 4 790 000 Infrasors shares for cash to Joe Kalo
Investments (Proprietary) Limited ("JKI"). Infrasors published a circular on 7 November 2014, to provide Infrasors
shareholders with information relating to the Specific Repurchase of 24 325 348 Infrasors shares from the Infrasors
Empowerment Trust and the Specific Issue of 4 790 000 Infrasors shares to JKI. The directors of Infrasors were required to
obtain independent external advice as to how the Specific Repurchase affects shareholders of Infrasors. In determining
the fair and reasonableness of the Repurchase Price, BDO Corporate Finance (Proprietary) Limited determined an
indicative valuation of per Infrasors Share on a marketable, minority basis. At the general meeting held on 4 December
2014 special authority was provided to implement the Specific Repurchase and the Specific Issue of shares for cash and to
cancel and delist the remaining treasury shares of Infrasors.
During the year, Afrimat acquired a further 1 288 098 ordinary shares on the open market, at prices ranging from 112 cents
to 117 cents per ordinary share. Infrasors acquired a further 197 500 ordinary shares on the open market, at an average price
of 124 cents per ordinary share.
Amounts included in group equity are as follows:
Afrimat Infrasors
Aggregates Delf Silica Holdings
(Trading) Coastal Infrasors Limited –
(Proprietary) (Proprietary) Holdings Treasury buy
Limited Limited Limited back Total
R'000 R'000 R'000 R'000 R'000
Additional non-controlling interest acquired (1 236) (1 771) (779) (212) (3 998)
Premium paid on additional shares acquired in
subsidiary after initial acquisition (2 756) (1 050) (751) (33) (4 590)
(3 992) (2 821) (1 530) (245) (8 588)
Analysis as per statement of cash flows
Consideration paid for shares held in treasury
by Infrasors (245)
Acquisition of additional non-controlling interest (8 343)
(8 588)
14. Events after reporting date
No material reportable events occurred between the reporting date and the date of this announcement.
15. Contingencies
Guarantees to the value of R64,0 million (2014: R68,2 million) were supplied by Standard Bank of South Africa Limited to
various parties, including the Department of Mineral Resources and Eskom.
Guarantees to the value of R9,8 million (2014: R10,0 million) were supplied by FirstRand Bank Limited to various parties,
including the Department of Mineral Resources and Eskom.
Guarantees to the value of R27,6 million (2014: R25,2 million) by Lombards Insurance Group, R0,6 million (2014: R0,6 million)
by Absa Bank Limited and R2,7 million (2014: R2,7 million) by SIG Guarantee Acceptances (Proprietary) Limited were supplied
to various parties, including the Department of Mineral Resources, Eskom and Chevron South Africa (Proprietary) Limited.
These guarantees are in respect of environmental rehabilitation and will only be payable in the event of default by the group.
On 25 June 2013, South African Revenue Services ("SARS") issued an adjusted income tax assessment claiming R9,7 million
additional tax, R7,2 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 subsidiary is not a mining entity. The subsidiary has submitted an
objection to SARS and is of the opinion that the activities are of a mining nature. The group is in the process of obtaining a
final ruling from SARS regarding the treatment of income tax in this subsidiary.
A contingent liability exists due to the uncertain timing of cash flows with regards to future local economic development
("LED") commitments made to the Department of Mineral Resources in respect of companies with mining rights. These
commitments are dependent on the realisation of the future agreed upon LED projects. Future commitments amount
to R7,5 million (2014: R10,1 million). An accrual has been raised in respect of commitments made up to the end of the
financial year.
DIVIDEND DECLARATION
Notice is hereby given that a final gross dividend, No. 16 of 37,0 (2014: 28,0) cents per
share, in respect of the year ended 28 February 2015, was declared on Wednesday,
20 May 2015.
There are 143 262 412 shares in issue at the announcement date and the total
dividend payable is R53,0 million (2014: R40,1 million).
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 15,0%.The dividend payable to shareholders who are subject to dividend tax and
shareholders who are exempt from dividend tax is 31,45 cents and 37,0 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, 5 June 2015
Commence trading ex dividend Monday, 8 June 2015
Record date Friday, 12 June 2015
Dividend payable Monday, 15 June 2015
Share certificates may not be dematerialised or rematerialised between
Monday, 8 June 2015 and Friday, 12 June 2015, both dates inclusive.
DIRECTORS
MW von Wielligh*^ (Chairman)
AJ van Heerden (CEO)
HP Verreynne (Financial Director)
GJ Coffee
L Dotwana*
F du Toit*
PRE Tsukudu*^
JF van der Merwe*^
HJE van Wyk*^
*Non-executive director ^ Independent
AUDITORS
Mazars
Mazars House
Rialto Road
Grand Moorings Precinct
Century City, 7441
(PO Box 134, Century City, 7446)
TRANSFER SECRETARIES
Computershare Investor Services (Pty) Ltd
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)
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) Ltd
27 Fricker Road
Illovo, 2196
(PO Box 651010, Benmore, 2010)
www.afrimat.co.za
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