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Condensed consolidated unaudited interim financial results and cash dividend declaration ended 30 June 2015
AECI Limited
(Incorporated in the Republic of South Africa)
Registration number 1924/002590/06
Tax reference number 9000008608
(“AECI” or “the Company”)
Share code: AFE
ISIN: ZAE000000220
Condensed consolidated unaudited interim financial results and cash
dividend declaration
for the half-year ended 30 June 2015
Highlights
HEPS +45% boosted by bulk property sale
Safety performance improvement trend continued
Market share maintained in a difficult environment
Excellent progress on acquisitions
Interim cash dividend of 125c declared
Income statement
2015 2014 2014
First- First-
% half half Year
R millions change Unaudited Unaudited Audited
Revenue(2) +8 8 629 7 987 16 903
Net operating costs (7 638) (7 173) (15 307)
Profit from operations +22 991 814 1 596
Interest expense (105) (99) (204)
Interest received 23 25 54
Share of profit of
equity-accounted
investees, net of tax 15 14 31
Impairment of equity-
accounted investees(3) (51) — —
Profit before tax 873 754 1 477
Tax expense (201) (146) (368)
Profit for the period 672 608 1 109
Profit for the period
attributable to:
— Ordinary
shareholders 658 601 1 096
— Preference
shareholders 2 1 3
— Non-controlling
interest 12 6 10
672 608 1 109
Headline earnings are derived from:
Profit attributable to
ordinary shareholders 658 601 1 096
Impairment of goodwill — — *
Impairment of
property, plant and
equipment 1 — 3
Impairment of assets classified
as held for sale — 21 21
Impairment of equity-
accounted investees(3) 51 — —
Gain on bargain
purchase(4) (23) — —
Surplus on disposal of
property, plant and
equipment (35) (3) (3)
Surplus on disposal of
assets classified as
held for sale(5) (33) (202) (202)
Tax effects of the
above items 13 19 28
Headline earnings 632 436 943
Per ordinary share
(cents):
Headline earnings +45 565 390 842
Diluted headline
earnings 533 368 800
Basic earnings +9 588 537 979
Diluted basic earnings 555 508 929
Ordinary dividends
declared +9 125 115 225
Ordinary dividends
paid 225 210 325
Special dividends paid 375 — —
*Nominal amount.
Statement of comprehensive income
2015 2014 2014
First-half First-half Year
R millions Unaudited Unaudited Audited
Profit for the period 672 608 1 109
Other comprehensive income
net of tax:
Items that may be reclassified
subsequently to profit or loss:
Foreign currency translation
differences 91 21 164
Items that may not be
reclassified subsequently
to profit or loss:
Remeasurement of defined-
benefit obligations 4 3 (65)
Total comprehensive income
for the period 767 632 1 208
Total comprehensive income
attributable to:
— Ordinary shareholders 752 629 1 194
— Preference shareholders 2 1 3
— Non-controlling interest 13 2 11
767 632 1 208
Statement of changes in equity
2015 2014 2014
First-half First-half Year
R millions Unaudited Unaudited Audited
Total comprehensive income
for the period 767 632 1 208
Dividends paid (692) (242) (378)
Business combinations and
change in ownership
percentage — (6) 5
Share-based payment reserve 32 43 91
Equity at the beginning of
the period 7 803 6 877 6 877
Equity at the end of the
period 7 910 7 304 7 803
Made up as follows:
Ordinary share capital 116 116 116
Share premium 496 496 496
Reserves 966 644 830
Foreign currency translation
reserve 767 525 663
Share-based payment reserve 199 119 167
Retained earnings 6 242 5 994 6 284
Non-controlling interest 84 48 71
Preference share capital 6 6 6
7 910 7 304 7 803
Reconciliation of weighted average number of shares
2015 2014 2014
First-half First-half Year
R millions Unaudited Unaudited Audited
Weighted average number of
ordinary shares 138,3 138,3 138,3
Weighted average number of
unlisted ordinary shares
held by consolidated EST (10,1) (10,1) (10,1)
Weighted average number of
shares held by consolidated
subsidiary (11,9) (11,9) (11,9)
116,3 116,3 116,3
Weighted average number of
contingently returnable
ordinary shares held by CST (4,4) (4,4) (4,4)
Weighted average number of
ordinary shares for basic
earnings per share 111,9 111,9 111,9
Dilutive adjustment for
potential ordinary shares 6,7 6,5 6,0
Weighted average number of
ordinary shares for diluted
earnings per share 118,6 118,4 117,9
Industry segment analysis
Revenue
2015 2014
First-half First-half
R millions Unaudited Unaudited
Explosives 3 956 3 553
Specialty chemicals 4 393 4 062
Property?(5) 607 652
Group services and inter-segment (327) (280)
8 629 7 987
Profit from operations
2015 2014
First-half First-half
R millions Unaudited Unaudited
Explosives 212 120
Specialty chemicals 532 397
Property?(5) 393 447
Group services and inter-segment (146) (150)
991 814
Net assets
2015 2014
First-half First-half
R millions Unaudited Unaudited
Explosives 3 656 3 299
Specialty chemicals 5 435 5 153
Property?(5) 575 322
Group services and inter-segment (153) (108)
9 513 8 666
Net assets consist of property, plant, equipment, investment
property, intangible assets, goodwill, inventory, accounts
receivable, pre-payment for business combination, and assets
classified as held for sale less accounts payable.
Statement of financial position
2015 2014 2014
30 Jun 30 Jun Year
R millions Unaudited Unaudited Audited
Assets
Non-current assets 7 061 6 662 7 161
Property, plant and
equipment 4 084 3 845 4 046
Investment property 136 184 172
Intangible assets 234 136 247
Goodwill?(6) 1 345 1 123 1 291
Pension fund employer
surplus accounts 144 214 179
Investments in
associates?(3) 212 251 260
Investments in joint
arrangements?(4) 311 321 308
Other investments 94 56 99
Deferred tax 501 529 555
Loans receivable * 3 4
Current assets 8 274 7 180 7 626
Inventories 3 001 2 976 2 879
Accounts receivable 3 738 2 722 3 243
Pre-payment for business
combination — 400 —
Loans to joint arrangements — 21 43
Assets classified as held
for sale 2 207 85
Cash 1 533 854 1 376
Total assets 15 335 13 842 14 787
Equity and liabilities
Ordinary capital and
reserves 7 820 7 250 7 726
Non-controlling interest 84 48 71
Preference share capital 6 6 6
Total equity 7 910 7 304 7 803
Non-current liabilities 1 613 2 142 2 691
Deferred tax 162 190 189
Non-current borrowings 401 1 002 1 459
Non-current provisions and
employee benefits 1 050 950 1 043
Current liabilities 5 812 4 396 4 293
Accounts payable?(5)?(6) 3 027 2 927 3 513
Current borrowings 2 720 1 443 583
Loans from joint
arrangements 34 17 49
Tax payable 31 9 148
Total equity and liabilities 15 335 13 842 14 787
* Nominal amount.
Statement of cash flows
2015 2014 2014
30 Jun 30 Jun Year
R millions Unaudited Unaudited Audited
Cash generated by operations 1 284 1 050 2 318
Dividends received — — 43
Interest paid (105) (99) (204)
Interest received 23 25 54
Tax paid (252) (279) (488)
Changes in working capital (898) 72 547
Cash flows relating to
defined-benefit costs (59) (51) (94)
Cash flows relating to non-
current provisions and
employee benefits (42) (36) (59)
Cash (utilised in)/available
from operating activities (49) 682 2 117
Dividends paid (692) (242) (378)
Cash flows from operating
activities (741) 440 1 739
Cash flows from investing
activities (246) (309) (704)
Net investment expenditure (15) (79) 131
Pre-payment for business
combination — (400) —
Proceeds on disposal of
capital property assets — 507 —
Net capital expenditure (231) (337) (835)
Net cash(utilised)/generated
before financing activities (987) 131 1 035
Cash flows from financing
activities 1 083 (509) (912)
Non-current loans receivable 4 6 6
Borrowings 1 079 (515) (918)
Increase/(decrease) in cash 96 (378) 123
Cash at the beginning of the
period 1 376 1 219 1 219
Translation gain on cash 61 13 34
Cash at the end of the period 1 533 854 1 376
Other salient features
2015 2014 2014
30 Jun 30 Jun Year
R millions Unaudited Unaudited Audited
Capital expenditure 272 343 745
— expansion 146 142 335
— replacement 126 201 410
Capital commitments 537 434 342
— contracted for?(7) 304 131 161
— not contracted for 233 303 181
Future rentals on property,
plant and equipment leased 304 244 358
— payable within one year 61 75 91
— payable thereafter 243 169 267
Net borrowings 1 588 1 591 666
Gearing (%)?* 20 22 9
Current assets to current
liabilities 1,4 1,6 1,8
Net asset value per ordinary
share (cents) 6 724 6 234 6 644
Depreciation and
amortisation 298 258 547
ZAR/US$ closing exchange
rate (Rand) 12,28 10,63 11,57
ZAR/US$ average exchange 11,91 10,70 10,85
rate (Rand)
* Borrowings less cash as a percentage of total equity.
Notes
(1) Basis of preparation and accounting policies
The condensed consolidated unaudited interim financial results are
prepared in accordance with International Financial Reporting
Standard IAS 34 Interim Financial Reporting; the South African
Institute of Chartered Accountants Financial Reporting Guides as
issued by the Accounting Practices Committee; Financial
Pronouncements as issued by the Financial Reporting Standards
Council; and the requirements of the Companies Act of South Africa.
The accounting policies applied in the preparation of these condensed
consolidated interim results are in terms of
International Financial Reporting Standards and are consistent with
those applied in the previous consolidated financial statements.
The preparation of these condensed consolidated interim results for
the half-year ended 30 June 2015 was supervised by the Financial
Director, Mr KM Kathan CA(SA) AMP (Harvard). The condensed
consolidated interim results have not been audited or reviewed by the
Company’s auditor, KPMG Inc.
(2) Includes foreign and export revenue of R3 096 million
(2014: R2 502 million).
(3) During the period, the Group’s investment in BBRI was impaired by
US$4,2 million (R51 million). BBRI is an equity- accounted associate
company. BBRI has incurred operating losses for the last two years
and, with lower than anticipated production volumes and a depressed
market as a result of low thermal coal prices, the carrying amount
of the investment exceeds its value-in-use. This has resulted in
the recognition of an impairment. The value-in-use was determined
by discounting the expected future cash flows to be generated from
the investment over the useful life of the underlying plant using
a discount rate of 11,03%. At 30 June 2015 the recoverable amount
of the investment in BBRI was R196 million.
(4) In June 2015 AECI, through its wholly-owned subsidiary Chemical
Services Limited, acquired the remaining 50% share in Resinkem
Proprietary Limited from its joint venture partner, GP Chemicals
International Holdings S.A.R.L., for R1. AECI acquired 100% of the
shares in the Resinkem business for a fair value consideration of
R22,5 million. The fair value of the assets acquired and liabilities
assumed amounted to R45 million, resulting in a bargain purchase
gain of R22,5 million being recognised in net operating costs.
Acquirees’ net assets at acquisition date
R millions
Property, plant and equipment 17,0
Working capital 10,0
Provisions (8,0)
Cash 26,0
Deferred and current tax *
Net identifiable assets and liabilities 45,0
Gain on bargain purchase 22,5
Net consideration (non-cash) 22,5
* Nominal amount.
(5) The AECI Group transferred another property to Shanghai Zendai
Property Limited in May 2015. Proceeds of R105 million, previously
reflected as income received in advance, and the carrying amount
of R72 million, previously classified as held for sale, were
recognised in the income statement. The profit of R33 million was
included in the property segment but excluded from HEPS as it was
capital in nature.
One remaining property related to this transaction still needs to be
transferred. It is reflected as assets classified as held for sale at
30 June 2015, in the amount of R2 million. Cash of R16 million
received for this property was included in accounts payable
as income received in advance. Both these amounts will be recognised
as a net profit on disposal on transfer of the land to Shanghai
Zendai Property Limited.
(6) On 1 June 2015 AECI’s wholly-owned subsidiary AECI (Mauritius)
Limited acquired 100% of the shares of Farmers Organisation Limited
(“FOL”), a company based in Malawi which distributes agrochemicals,
seeds and spraying equipment. The acquisition grows AECI’s
agrochemicals footprint in Africa and allows Nulandis, AECI’s
existing agrochemicals business, the opportunity to expand sales of
its manufactured products into Malawi.
The acquisition has been recognised on a provisional basis as the
Purchase Price Allocation (“PPA”) has not yet been completed.
The estimated purchase price of US$11 million (R134 million) has been
recognised as a liability at 30 June 2015 since the initial payment
of US$9,3 million (R113 million) was paid on 1 July 2015. There is an
additional amount of US$700 000 (R8 million) payable based on FOL’s
audited working capital, and a contigent consideration of US$1
million (R12 million) that is dependent on its future earnings. The
contingent consideration liability will be assessed as part of the
PPA to determine the appropriate liability to be included in the
purchase consideration at acquisition date. The liability and
goodwill recognised may be adjusted accordingly.
In June 2015, FOL contributed revenue of R15 million and profit from
operations of R1 million. If the acquisition had occurred on
1 January 2015, management estimates that AECI’s consolidated revenue
would have been R8 682 million and AECI’s consolidated profit from
operations would have been R996 million.
The FOL acquisition had the following effect on the Group’s assets
and liabilities (the values are provisional and subject to change
on conclusion of the effective date audit, this being 31 May
2015):
Acquirees’ net assets at acquisition date (provisional)
R millions
Property, plant and equipment 3
Working capital 66
Deferred and current tax 11
Net identifiable assets and liabilities 80
Goodwill on acquisition 54
Net initial purchase price (recognised as a
current liability) 134
(7) AECI entered into an agreement to acquire 100% of Southern Canned
Products Proprietary Limited (“SCP”), a leading manufacturer and
distributor of ingredients for juice-based drinks and products, from
Gerber Goldschmidt South Africa, a private equity investment company,
and the management of SCP. The conditions precedent in the agreement
had not been fulfilled at 30 June 2015 and an amount of R235 million
was included in capital commitments in relation to the acquisition.
The conditions precedent were met in July and the acquisition’s
effective date will be 1 August 2015.
(8) Contingent liabilities
There were no further developments in the investigation by the
Competition Commission of South Africa in respect of Akulu Marchon,
as disclosed in AECI’s 2014 integrated report. Accordingly, no
provision for any potential liability has been made.
(9) The AECI Group entered into various sale and purchase
transactions with related parties in the Group in the ordinary course
of business, on an arm’s length basis, the nature of which was
consistent with those previously reported. All transactions and
balances with these related parties have been appropriately
eliminated in the consolidated results.
(10) The AECI Group measures forward exchange contracts at fair
value using inputs as described in level 2 of the fair value
hierarchy. The fair values for forward exchange contracts are based
on quotes from brokers. Similar contracts are traded in an active
market and the quotes reflect the actual transactions on similar
instruments. The carrying values of all other financial assets or
liabilities approximate their fair values based on the nature or
maturity period of the financial instrument. There were no
transfers between levels 1, 2 or 3 of the fair value hierarchy during
the half-year ended 30 June 2015.
(11) The condensed consolidated unaudited interim financial results
do not include all of the disclosures required for full financial
statements and should be read in conjunction with the consolidated
financial statements for the year ended 31 December 2014.
Commentary
Operating environment
AECI again delivered creditable results in an ever-more challenging
local and international environment. Commodity prices continued to
weaken owing to the deceleration of global growth, particularly in
China. This trend, which is expected to persist in the medium term,
added further pressure to the global mining sector. Some mines have
closed, others have undertaken operational restructuring and all
mining houses have intensified cost containment processes in their
supply chain.
Growth in South Africa’s economy remained weak, specifically in
the manufacturing and mining sectors. In the rest of Africa growth
remained more resilient.
Performance
AECI’s revenue increased by 8% to R8 629 million (2014: R7 987
million). 36% of this was generated outside South Africa, reflecting
the progress made in the Group’s strategy to diversify
geographically. The weak ZAR/US$ exchange rate contributed to this
increase.
Profit from operations was R991 million, 22% higher than the R814
million achieved in the prior corresponding period. Headline earnings
improved by 45% to R632 million (2014: R436 million). EPS was 588
cents (2014: 537 cents), a 9% year-on-year improvement. HEPS was 45%
higher at 565 cents (2014: 390 cents), with the bulk sale of the
Group’s surplus property assets at Somerset West contributing 230
cents. This transaction, for R400 million in cash (excluding VAT)
with the City of Cape Town, became unconditional
in June 2015 when all conditions precedent were met.
The performance from the specialty chemicals segment was most
pleasing, reflecting the benefits of recent acquisitions and of
AECI’s active portfolio management which assists in maintaining an
effective cost base.
Although the strikes in South Africa’s platinum mining sector did not
recur, AEL Mining Services’ (“AEL”) results were adversely affected
by prevailing market conditions.
Further progress was made in relation to the regulatory aspects of
de-risking the Company’s defined-benefit obligations and the project
is expected to be finalised by year-end.
The Board has declared an interim cash dividend of 125 cents per
ordinary share, a 9% increase on 2014’s 115 cents.
Safety
Tragically, as reported in February this year, a fatality occurred in
January. Zingisile Reginald Mkhosi, a Group employee, died in a
traffic accident while travelling on a public road to a customer’s
site in the Northern Cape.
AECI’s Total Recordable Injury Rate (“TRIR”) improved further to
0,33 from 0,50 in December 2014. AEL maintained its excellent record
and there was good overall improvement in the specialty chemicals
segment’s performance. The TRIR measures the number of incidents per
200 000 hours worked.
Explosives
Revenue increased by 11% to R3 956 million (2014: R3 553 million).
Profit from operations was R212 million, 77% up on that for the prior
corresponding period. The operating margin was 5,4% (2014:
3,4%). Overall explosives volumes to mining customers were 10% higher.
In South Africa, AEL benefited from improved volumes in the platinum
mining sector and initiating systems volumes were 59% higher. This
had a positive effect on the ISAP plant, where record production was
achieved. Investments in new business gained in surface mining did
not deliver the expected returns, resulting in lower margins although
explosives volumes increased by 18%. In addition to the effects of
the commodity cycle, which resulted in lower stripping ratios, other
factors that depressed demand were safety-related stoppages,
unprotected strikes and operational problems at some customer sites.
AEL retained business in the recent retendering processes undertaken
by major customers, albeit that it was necessary to sacrifice margin.
There were robust results from businesses on the rest of the
continent thanks to a more favourable product mix, even though volume
increases were marginal. Particularly pleasing was the performance of
Central Africa’s copper mining sector. The gold mining sector in West
Africa, though still challenged by the effects of lower gold prices,
stabilised. There was good growth in East and North Africa.
AEL’s business in Indonesia remained severely constrained as a
result of very weak thermal coal prices. Mines have closed, customers
have reduced their stripping ratios and have focused on free digging,
all of which reduced the demand for explosives and AEL’s volumes
declined by 38%.
The BBRI plant in Indonesia is fully operational and its ability to
achieve desired run-rates has been demonstrated. AECI’s US$23 million
investment in this facility in 2012 was motivated by the supply
requirements of its largest customer in the region. Regrettably, with
the severe decline in the thermal coal mining market from 2014, the
customer has scaled back its operations significantly and it was
necessary to run the BBRI plant at lower rates. Given that the market
is not expected to recover significantly in the medium term the
investment has been partially impaired by US$4,2 million.
The new business in Australia commenced commercial operation in
January and is supplying three large coal mines via AEL’s partner,
Thiess.
Capital expenditure in the six months was R126 million, of which R55
million was for investments at customer sites to support new business
gained.
Specialty chemicals
Revenue increased by 8% to R4 393 million (2014: R4 062 million) and
profit from operations was 34% higher at R532 million (2014: R397
million). The sale of Akulu Marchon’s former site in Mobeni,
KwaZulu-Natal, accounted for R34 million of this. In addition, R23
milion was recognised on a bargain purchase as a result of the
acquisition of the remaining 50% of Resinkem from the joint
venture partner. The operating margin improved to 12,1% from 9,8%
last year also thanks to the improved profitability of Chemfit,
ChemSystems, Industrial Oleochemical Products, Lake Foods and SANS
Technical Fibers.
Senmin made a solid contribution as platinum mining activities
recovered after last year’s protracted strikes. Exports were lower
but are expected to increase in the second six months.
ImproChem’s performance, particularly in the public water sector, was
boosted by the acquisition and integration of Clariant Southern
Africa’s water treatment business in Africa. The acquisition, which
took effect on 1 July 2014, was in line with AECI’s strategy to
become a leading provider of water treatment solutions in Africa.
The provision of agrochemicals in Africa and in other selected
geographies is another strategic growth area. Nulandis delivered a
good result. This business is leading the Group’s agrochemicals
thrust and its footprint was enhanced through the acquisition of
100% of Farmers Organisation Limited (“FOL”), with effect from 1
June 2015.
FOL is a distributor of agrochemicals, seeds and spraying equipment
on behalf of multinational producers, based in Malawi. The company
operates in the commercial estates market and revenue from the
smallholder market segment is increasing. This provides Nulandis with
a springboard into the smallholder market there and in other
countries in Southern and East Africa. The acquisition also presents
further opportunities for Nulandis to expand sales of its in-house
products through FOL.
AECI entered into an agreement to acquire 100% of Southern Canned
Products (“SCP”), a leading manufacturer and distributor of
ingredients for juice-based drinks and products based in Cape Town.
The acquisition, which will become effective on 1 August
2015, is part of AECI’s stated strategy of growing its food additives
and ingredients business in South Africa and ultimately the rest of
Africa. This growth initiative is led by Lake Foods which represents
international manufacturers and suppliers of specialty ingredients
and commodities for the bakery, beverage,
dairy, health and nutrition, meat, poultry and wine industries. SCP
will enhance the offering to the beverage industry, in particular.
Capital expenditure for the segment totalled R134 million of which
R83 million was for expansion. Key projects were completion of
Senmin’s new Research and Development centre, in Sasolburg, and Lake
Foods’ new manufacturing facility in Cape Town.
Portfolio management
Restructuring of Akulu Marchon has been completed. The petroleum
jelly division was closed in 2014 and its assets have been sold. The
white oils activities were integrated with Industrial Oleochemical
Products, the surfactants business was transferred to Chemical
Initiatives and the personal care portfolio has been divisionalised
into ChemSystems.
Resinkem has also been moved to ChemSystems.
Property
Revenue of R607 million (2014: R652 million) comprised R435 million
related to land sales and the balance to the leasing and facilities
management businesses. Profit from operations was R393 million (2014:
R447 million). Last year’s results included profit of R421 million
from the bulk land disposal at Modderfontein.
The Somerset West bulk land sale to the City of Cape Town was
approved by the Competition Tribunal and, accordingly, revenue of
R400 million and profit from operations of R294 million were
recognised. The transfer process has commenced and completion is
expected before year-end.
The sale excluded Precinct 1, which is 25 hectares in extent and was
independently valued at R119 million in September 2014. Value from
this land will continue to be realised in the ordinary course of
business.
Cash utilisation
Capital expenditure was R272 million, lower than 2014’s R343 million,
and was aligned with the depreciation charge. R146 million of the
expenditure was for expansion projects.
Gearing was higher at 20%, from 9% in December 2014. Net working
capital was at 21% of revenue owing to the longer working capital
cycle in the Indonesian business and the fact that the cash proceeds
of the Somerset West sale are yet to be received. Excluding the
effects of the latter, net working capital would have been at 19% of
revenue, unchanged from the prior
corresponding period. A special dividend of 375 cents per ordinary
share was also paid in the period.
Cash interest cover improved to 15,1 times (2014: 13,4 times). Net
interest paid increased to R82 million (2014: R74 million) in line
with the higher gearing ratio.
Outlook and strategy
Conditions in the global and domestic mining industry, and in the
local manufacturing sector, will remain difficult. In South Africa,
electricity constraints and uncertainty in labour relations will
exacerbate this.
AECI will need to remain nimble and flexible enough to enhance the
Group’s value-adding product and service offering to its customers in
an environment that is likely to remain challenging. This includes
reshaping and refocusing its mining solutions businesses to align
them with the significantly changed conditions in the mining
industry.
The Group will continue to consolidate its geographical footprint and
will concentrate on growing its position further in African markets.
The benefits of recent strategic acquisitions and capital
expenditure programmes are also expected to assist the Group’s
performance.
Schalk Engelbrecht Mark Dytor
Chairman Chief Executive
Woodmead, Sandton
28 July 2015
Directors: S Engelbrecht (Chairman), MA Dytor (Chief Executive)***,
RMW Dunne*, Z Fuphe, G Gomwe**, RL Hiemstra, KM Kathan (Financial
Director)***, LL Mda, AJ Morgan, LM Nyhonyha, R Ramashia.
***Executive *British **Zimbabwean; appointed 1 January 2015
Group Company Secretary: EN Rapoo
Notice to shareholders
Declaration of interim ordinary cash dividend no. 163
Notice is hereby given that on Monday, 27 July 2015, the Directors of
AECI declared a gross interim cash dividend of 125 cents per share in
respect of the six-month period ended 30 June 2015. The dividend is
payable on Monday, 7 September 2015 to holders of ordinary shares
recorded in the register of the Company at the close of business on
the record date, being Friday, 4 September 2015.
The last day to trade “cum” dividend will be Friday, 28 August
2015 and shares will commence trading “ex” dividend as from the
commencement of business on Monday, 31 August 2015.
A South African dividend withholding tax of 15% will be applicable to
all shareholders who are not either exempt or entitled to a reduction
of the withholding tax rate in terms of a relevant
Double Taxation Agreement, resulting in a net dividend of
106,25000 cents per share to those shareholders who are not eligible
for exemption or reduction. Application forms for exemption or
reduction may be obtained from the Transfer Secretaries and must be
returned to them on or before Friday, 28 August 2015.
The issued share capital at the declaration date is 128 241 140
listed ordinary shares, 10 117 951 unlisted redeemable convertible
B ordinary shares and 3 000 000 listed cumulative preference shares.
The dividend has been declared from the income reserves of the
Company.
Any change of address or dividend instruction must be received on or
before Friday, 28 August 2015.
Share certificates may not be dematerialised or rematerialised
from Monday, 31 August 2015 to Friday, 4 September 2015, both days
inclusive.
By order of the Board
E N Rapoo
Group Company Secretary
Woodmead, Sandton
28 July 2015
Transfer Secretaries
Computershare Investor Services (Pty) Ltd
70 Marshall Street
Johannesburg
2001
Computershare Investor Services PLC PO Box 82
The Pavilions Bridgwater Road Bristol BS 99 7NH England
Registered Office
1st floor, AECI Place
24 The Woodlands
Woodlands Drive
Woodmead
Sandton
Sponsor
Rand Merchant Bank (A division of FirstRand Bank Limited)
Date: 28/07/2015 07:05:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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