Wrap Text
Preliminary reviewed group results for the year ended 30 June 2015
Grand Parade Investements Limited
Registration number:1997/003548/06
Share code:GPL
ISIN:ZAE000119814
(“GPI”or “the company”or “the group”)
Preliminary reviewed group results for the year ended 30 June 2015
Salient features
Basic earnings per share Headline earning per share Ordinary dividend per share
increased by increased by paid increased by
838.9% 232.2% 33.3%
Highlights
Burger King South Africa (Pty) Ltd R231.8 million invested in store expansion
Dolcoast Investments Limited R130.0 million received from the disposal of 24.9% holding
GPI Slots (Pty) Ltd R215.9 million received from the disposal of 25.1% holding
Grand Tellumat Manufacturing (Pty) Ltd Acquired a 51.0% joint venture holding
Mac Brothers Catering Equipment (Pty) Ltd Acquired a further 77.8% holding and increased holding to 100.0%
Spur Corporation Limited Acquired a 10.0% holding
INTRODUCTION
The past year has highlighted the strength and quality of GPI's investment portfolio. The South African economy
has been under significant pressure and looks to remain so for the foreseeable future. GPI's core investments in
SunWest International (Pty) Ltd ("SunWest"), GPI Slots (Pty) Ltd ("GPI Slots"), Spur Corporation Limited ("Spur")
and Burger King South Africa (Pty) Ltd ("Burger King") all showed their resilience this year amidst the ailing
economy and delivered solid results.
In particular, the investment into establishing Burger King in South Africa reached a milestone of maturity in
that, at a store operating level, the business is now profitable and the head office costs are settling at a
sustainable level.
On 3 July 2015, the proposed transaction with Sun International Limited ("Sun International") and Tsogo Sun
Limited regarding the restructure of the shareholding in SunWest and Worcester Casino (Pty) Ltd ("Golden Valley")
was terminated. The key consideration for calling off the transaction was that the regulatory approvals required
to implement the transaction would not be received by the long stop implementation date of 31 August 2015. The
parties concluded that it was not possible to simply extend the date as the commercial metrics agreed to under
the original proposed transaction had changed.
GPI had a very successful and busy year in its investment activities, which saw a number of acquisitions and
disposals changing the look and feel of its investment portfolio. The investment activities were primarily
focused on GPI's core industries of gaming and food, with the disposal of 25.1% of GPI Slots, the disposal of
24.9% of Dolcoast Investments Limited ("Dolcoast") and the disposal of 5.7% of National Manco in its gaming
portfolio and the acquisition of the remaining 77.8% of Mac Brothers Catering Equipment (Pty) Ltd
("Mac Brothers") and the acquisition of 10.0% of Spur in its food portfolio. GPI also acquired 51.0% of Grand
Tellumat Manufacturing (Pty) Ltd ("GTM"), which it has placed in its diversified investments portfolio.
A further R231.8 million was invested into the expansion of Burger King, taking the total investment in Burger
King to R411.8 million at 30 June 2015. During the year Burger King opened 26 new stores taking the total number
of stores to 44 at 30 June 2015.
The table below is a summary of the Group's salient features.
Reviewed Restated
30 June 30 June
Year ended Note 2015 2014
Headline earnings (R'000s) 49 387 14 774
Headline earnings per share (cents) 10.53 3.17
Diluted headline earnings per share (cents) 10.40 3.15
Basic earnings net profit for the year (R'000s) 5 669 092 70 930
Basic earnings per share (cents) 142.72 15.20
Diluted basic earnings per share (cents) 140.87 15.13
Dividends (R'000s) 108 041 68 964
ordinary dividend per share (cents) 20.00 15.00
DIVIDENDS
A 20.0 cents ordinary dividend per share was declared in respect of the profits relating to the 2014 financial
year on 5 January 2015. The Group's strategy is to remain a dividend active company and to annually pay a
dividend. Given the timing around recent corporate activity, the company will announce the date of declaration of
the dividend relating to the 2015 profits when certainty around future cash flows from these corporate actions
are obtained.
HEADLINE EARNINGS
The comparative period results have been restated as if the investments in SunWest and Golden Valley were never
disclosed as held-for-sale, as required by IFRS, as they no longer met the definition of held-for-sale. Details
on the prior period restatement have been disclosed in Note 2.
The Group's headline earnings for the year increased by R34.6 million to R49.4 million. The table below details
the contribution made by each of the investments to the Group's headline earnings:
Reviewed Restated Movement
30 June 30 June
2015 2014
R'000s R'000s R'000s %
Gaming
SunWest 116 674 104 789 11 885 11.3
GPI Slots 9 671 9 671
Grand Sport (8 064) (422) (7 642) 1 810.9
Food
Burger King (55 068) (39 860) (15 208) 38.2
Mac Brothers (2 038) (2 038)
Spur (5 886) (5 886)
Excellent Meat Burger Plant (767) (448) (319) 71.2
Diversified Investments
GTM (3 746) (3 746)
Group Costs
GPI Properties (18 617) (6 932) (11 685) 168.6
Grand Technology (7 343) (4 103) (3 240) 79.0
Corporate Costs (72 464) (43 710) (28 754) 65.8
Headline earnings from continuing operations (47 648) 9 314 (56 962) (611.6)
Gaming
Dolcoast 5 030 10 792 (5 762) (53.4)
National Manco 557 (557)
GPI Slots 92 005 (5 889) 97 894 (1 662.3)
Headline earnings from discontinued operations 97 035 5 460 91 575 1 677.2
Headline earnings 49 387 14 774 34 613 234.3
REVIEW OF INVESTMENTS' OPERATIONS
Gaming
SunWest
SunWest remains the largest contributor to the Group headline earnings, with R116.7 million for the year. This
represents an increase of 11.3% on last year. SunWest has performed exceptionally well in a tough economic
environment and exceeded the Group's expectations this year by increasing its profit after tax to R515.3 million.
GrandWest Casino's profit for the year of R533.9 million, which has increased by 9.1% since last year, is
responsible for the majority of SunWest's net profit after tax. The Table Bay Hotel reported a loss after tax for
the year of R18.6 million, which is 26.8% lower than the previous year's loss of R25.4 million.
SunWest continued to provide the Group with a solid return on investment and increased its dividend paid to
shareholders by 15.6% to R520.0 million. The Group's share of the dividend for the year was R130.5 million (25.1%).
GPI Slots
GPI Slots' contribution to the Group headline earnings for the year is R101.7 million, which is split between
R92.0 million recognised in the profit or loss from discontinued operations and R9.7 million recognised in the
profit or loss from continuing operations.
The amount recognised under discontinued operations comprises of R71.0 million, which represents 100% of GPI
Slots' earnings for the six months to 30 December 2014, being the period that GPI controlled the investment, and
a R21.0 million reversal of the deferred tax liability.
The contribution to earnings from continuing operations of R9.7 million represents 30.0% of GPI Slots' earnings
for the six-month period between 31 December 2014 and 30 June 2015, where the investment was held as a jointly
controlled entity. The 30.0% holding is the portion of the investment that the Group has not committed to dispose.
GPI Slots grew its total revenue by 33.2% to R798.0 million and its profit after tax by 50.0% to R77.0 million,
which was driven by organic growth in its existing business as well as the acquisition of 100% of Grand Gaming
KZN Slots (Pty) Ltd ("KZN Slots") on 8 August 2014 for R78.5 million. KZN Slots is licensed to operate up to
1 000 limited payout machines ("LPMs") in KwaZulu-Natal and had 623 active LPMs on the date of acquisition.
GPI Slots had 3 396 active LPMs at 30 June 2015 (2014: 2 637 LPMs), which has resulted in an increase of Gross
Gaming Revenue market share to 48.72% (2014: 32.85%) thereby strengthening its position as the market leader,
which the Group is very proud of.
During the year, GPI Slots repaid R37.5 million of its shareholder loan from its surplus cash generated during
the year.
Golden Valley
Tough trading conditions persisted in the Worcester region where Golden Valley is situated, and as a result the
company recognised a R2.9 million loss for the year. The Group impaired the carrying value of its investment in
Golden Valley in previous financial years and does not recognise losses made by the investment, therefore Golden
Valley did not make a contribution to the Group's headline earnings for the year.
While Golden Valley continued not to make a contribution to the Group headline earnings, the investment holds
strategic value for the Group, particularly in light of the discussions around relocating a second Western Cape
casino licence to the Cape Metropole.
Grand Sport
Grand Sport (Pty) Ltd ("Grand Sport") contributed a loss of R8.1 million to the Group headline earnings for the
year, which is higher than the R0.4 million loss contributed last year. This year was Grand Sport's first full
year of trading and the loss is in line with the Group's expectations of a greenfield investment.
The business is poised for growth and several initiatives have been planned for the forthcoming year to grow the
Grandplay.co.za brand.
Food
Burger King
Burger King contributed a loss of R55.1 million to the Group headline earnings, which is 38.2% higher than the
R39.9 million loss contributed last year. The past two years have been the initial start-up and expansion phase
for Burger King and the losses that have been contributed are in line with management expectations.
Burger King opened a further 26 stores during the year, taking its total number of stores at 30 June 2015 to 44
(2014: 18 stores). In addition, Burger King achieved significant operational milestones during the year by
localising 92% of its food inputs, which has significantly de-risked the business from currency fluctuations,
stock losses and increased the food margin. The store operating costs were brought in line with targets that
allowed Burger King to report a store operating profit of R3.7 million between 1 April 2015 and 30 June 2015.
Excellent Meat Burger Plant
Excellent Meat Burger Plant (Pty) Ltd ("Excellent Meat Burger Plant") contributed a loss of R0.8 million to the
Group headline earnings. Excellent Meat Burger Plant is a burger patty production plant that was established to
cater for all of Burger King's burger patty requirements. The growth of the business will be linked to that of
Burger King and several opportunities are being explored to sell products to other Burger King franchisees
internationally.
Mac Brothers
Mac Brothers contributed a loss of R2.0 million to the Group headline earnings and did not contribute to last
year's headline earnings as the initial investment was made at the end of the last financial year.
30.2% of Mac Brother's revenue relates to the sale of equipment to Burger King, the margin on which has been
eliminated against Burger King's cost of fixed assets in the Group results causing Mac Brothers to report a loss
at Group level.
Mac Brothers was negatively affected by persistent load-shedding at its production facilities, resulting in higher
operating costs after they installed a generator. The business will be less reliant on the sales to Burger King
in the future and this will have a positive impact on the Group results.
Spur
The Group's investment in Spur contributed a loss of R5.9 million to the Group headline earnings. The loss
represents the amount that the interest expense on the investment's funding structure exceeded the dividends
received from Spur during the year. The Group received R6.7 million from Spur during the year, which is an interim
dividend. Going forward where both the final and interim dividends are received, the interest expense and
dividends received will be aligned.
Diversified investments
Grand Tellumat Manufacturing
GTM is a new investment for the Group and contributed a R3.7 million loss to Group headline earnings.
GTM reported a loss of R7.4 million for the 10 months it traded during the financial year, which was
predominantly incurred during the first eight months of operations. Through the interventions of the Group,
management turned their focus to attracting new customers, they had some success during the year and the company
reported a profit of R2.0 million during the last quarter of the financial year.
Group costs
GPI Properties
GPI Properties (Pty) Ltd ("GPI Properties") contributed a loss of R18.6 million to the Group headline earnings
for the year, which has increased from the loss of R6.9 million contributed to last year's earnings. The majority
of the properties owned by GPI Properties are leased to Group companies and as a result the rental income earned
from these companies have been eliminated from the Group headline earnings. Therefore, the loss contributed
represents the Group's property costs net of any revenue generated from third party tenants.
Grand Technology
The Group treats Grand Technology (Pty) Ltd ("Grand Technology") as a shared cost centre with effectively all of
its revenue earned from Group companies. The Group revenue is eliminated from the Group headline earnings and
therefore Grand Technology contributed a loss of R7.3 million for the year, which represents the Group's annual
IT costs.
Central Costs
The Group's central costs represent the head office costs and costs associated with the investment activities of
the Group, such as transaction costs. The Group headline earnings have been reduced by the central costs for the
year of R72.5 million, which are 65.8% higher than last year's costs of R43.7 million. The central costs are
higher this year as a result of once-off transaction fees incurred on the various acquisitions and disposals that
took place during the year.
INVESTMENT ACTIVITIES
A summary of the significant investment activities that took place during the year is set out below.
Gaming
GPI Slots
During the year, the Group concluded the first tranche of a staged disposal of GPI Slots. 25.1% was sold in this
tranche which reduced the Group's holding in GPI Slots to 74.9%. In terms of the sale agreement, there are two
remaining tranches which are to be concluded and will have the effect of reducing GPI's ultimate holding in the
investment to 30.0%.
A total of R215.9 million was received by the Group through the sale and a gain on the sale of R611.4 million has
been recognised in this year's profit from discontinued operations. Details of the disposal have been disclosed
in Note 3.
SunWest and Golden Valley Casino
Subsequent to year-end, the transaction to dispose of the Group's full investments in SunWest and Golden Valley
was cancelled by all the respective parties to the transaction. The cancellation confirmed that both these
investments no longer met the criteria to be recognised as held-for-sale and therefore both investments form part
of the Group's continuing operations.
Dolcoast
During the year, the Group concluded the disposal of its entire 24.9% investment in Dolcoast, via a share buy-back,
for R130.0 million and details of the disposal have been disclosed in Note 3.
National Manco
The Group concluded the disposal of its entire 5.67% investment in National Manco during the year, for
R1.4 million and details of the disposal have been disclosed in Note 3.
Food
Mac Brothers
During the year, the Group increased its holding in Mac Brothers from 22.2% to 100.0% via two acquisitions. The
first acquisition of 42.8% on 28 July 2014 gave the Group control of the investment. The second acquisition of
the remaining 35.0% was concluded on 13 January 2015 and the combined consideration for the two acquisitions was
R66.6 million, of which R53.0 million was settled in cash and R13.6 million settled by way of a new issue of
1.85 million GPI shares at a price of R7.35 per share.
Spur
On 30 October 2014, the Group acquired 10.0% of Spur for R294.7 million. A 10% discount on the market price on
acquisition was received in exchange for a five-year lock-in period, during which time the Group is required to
maintain its current empowerment credentials. R72.4 million of the acquisition was paid in cash, with the
remaining R222.3 million financed by R72.3 million of vendor funding provided by Spur and R150.0 million of
third-party debt.
Diversified investments
GTM
On 1 September 2014, the Group entered into a joint venture agreement with Tellumat (Pty) Ltd ("Tellumat")
whereby the electronics manufacturing unit of Tellumat was transferred into GTM. The Group subscribed for 51.0%
of the stated capital of GTM for R21.8 million. In terms of the shareholders' agreement between GPI and Tellumat,
it has been agreed that GTM be managed jointly and as a result GPI has recognised the company as a jointly
controlled entity in its results from the effective date of the transaction being 1 September 2014.
Group costs
Property acquisitions
The Group acquired four new properties during the financial year. Two industrial properties were acquired at a
combined cost of R48.9 million. Both properties have been leased by Mac Brothers, with one property being
situated in Cape Town and the other in Gauteng.
The third property acquired is a commercial property in Sandton, Gauteng, which was acquired for R12.0 million
and will be redeveloped into a Burger King drive-through store and leased to Burger King. The fourth property
acquired during the year is an office building in the Cape Town central business district, which was acquired
for R40.0 million. Various redevelopment options for the building are being assessed.
Funding
The Group's overall external debt funding increased by R565.7 million, which includes the following significant
facilities that were raised during the year.
Amount
Funding type R'm Utilisation
Preference shares 222.3 Acquisition of 10% of Spur
Term loans 50.0 Acquisition of various properties
Short-term facilities 277.0 Burger King expansion and part payment of other acquisitions
made during the year
These facilities contributed to an increase in the finance costs of R39.0 million when compared to last year.
The gearing ratio at 30 June 2015 increased to 34.5%, which is at the upper end of the target debt to equity
range and there is a focus on reducing the gearing ratio to historic levels.
The short-term facilities were raised as bridge funding and are in the process of being restructured to match
the term of the funding to the expected returns from the underlying investments.
Related party transactions
8.5% of the 42.8% acquired in Mac Brothers on 28 July 2014 and 10.0% of the 35.0% acquired on 13 January 2015
were acquired from Nadesons Investments (Pty) Ltd for a combined amount of R15.3 million. Hassen Adams and
Alan Keet are both executive directors of GPI and are affiliates of Nadesons Investments.
In addition to this transaction, the Group, in the ordinary course of business, entered into various
transactions with related parties. Any intra-group related party transactions and outstanding balances are
eliminated in the preparation of the consolidated financial statements of the Group as presented.
Directorate
On 1 November 2014, Sukena Petersen resigned as the group financial director. Sukena had been with the Group
since its listing on the JSE and the Board would like to thank her for her dedication to the Group. Sukena
was replaced by Dylan Pienaar who fulfilled the role as interim financial director until 26 February 2015,
when he was permanently appointed to the position.
Tony Bedford retired as non-executive director from the GPI Board on 1 February 2015 and the Board would like
to express their gratitude to Tony for his contribution to the Group.
Alex Abercrombie retired as an executive director of GPI on 27 February 2015. Alex is a founding member of the
Group and has served as a director since its inception. Alex has agreed to remain on the GPI board as a non-
executive director, where his considerable experience continues to add value to the Group.
Subsequent events
On 3 July 2015, the Group entered into a termination agreement with Sun International Limited and Tsogo Sun
Limited to cancel the transaction to dispose of its 25.1% investment in SunWest and its 25.1% investment in
Golden Valley Casino. The cancellation agreement confirmed that both these investments no longer met the
criteria to be recognised as held-for-sale investments. The financial results have been restated as if the
investments were never classified as held-for-sale investments, as required by IFRS.
On 3 August 2015, the Group acquired a minority holding of 4.95% in Atlas Gaming Holdings for R5.6 million.
Atlas is an Australian-based gaming company that develops gambling machines. The terms of the agreement allow
for the future acquisition of up to 25.0% of the equity of Atlas.
Prospects
The performance of its underlying investments over the past year has provided GPI with the platform to continue
to grow despite the challenges facing the economy. GPI will focus, in the short term, on its core investments
in gaming and food, which present a number of exciting opportunities for GPI to accelerate its growth.
GPI will conclude the sale of the second tranche of GPI Slots and unlock the potential of its sports betting
and gaming machine manufacturing investments. The focus will remain on the expansion of Burger King to ensure
that it reaches its critical mass during the upcoming year, which will allow the investment to sustain its
expansion without the support of GPI.
GPI will also identify and unlock synergies between its investments in Burger King and Spur, as the potential
to create value between these two investments is significant.
GPI’s current portfolio of investments underpins the Group’s strategy, inasmuch as there is diversification
across sectors and maturity of investments. This diversification allows for both growth and the cash flows
to continue to pay annual dividends on a sustainable basis.
The attractiveness of GPI as an investor will always lead to many opportunities, but management will only
consider industries outside of its current portfolio of investments if the opportunity can satisfy all of the
Group's investment criteria.
Condensed consolidated statement of comprehensive income for the year ended 30 June 2015
Reviewed Restated
2015 2014
Note R'000s R'000s
Continuing operations
Revenue 502 012 134 976
Cost of sales (257 896) (85 107)
Gross profit 244 116 49 869
Operating costs (386 460) (165 385)
Loss from operations (142 344) (115 516)
Profit from equity-accounted investments 134 894 115 984
Remeasurement of investment 405 32 838
Negative goodwill 23 637
Depreciation (23 638) (7 774)
Amortisation (2 039) (981)
(Loss)/profit from continuing operations before finance costs
and taxation (32 722) 48 188
Finance income 21 236 8 621
Finance costs (57 092) (18 026)
(Loss)/profit before taxation from continuing operations (68 578) 38 783
Taxation 13 332 18 846
(Loss)/profit for the year from continuing operations (55 246) 57 629
Discontinued operations
Profit after tax for the year from discontinued operations 3 716 984 5 460
Profit for the year 661 738 63 089
Other comprehensive income
Items that will be reclassified subsequently to profit
Unrealised fair value adjustments on available-for-sale
investments, net of tax 45 064 (5 189)
Reclassification of realised gain net of tax (1 056)
Total comprehensive income for the year 705 746 57 900
(Loss)/profit for the year from continuing operations attributable to:
Ordinary shareholders (47 892) 65 470
Non-controlling interest (7 354) (7 841)
Profit for the year from discontinued operations attributable to:
Ordinary shareholders 716 984 5 460
Non-controlling interest
661 738 63 089
Total comprehensive income attributable to:
Ordinary shareholders 713 100 65 741
Non-controlling interest (7 354) (7 841)
705 746 57 900
Cents Cents
Basic earnings per share 5 142.72 15.20
Diluted earnings per share 5 140.87 15.13
Headline earnings per share 5 10.53 3.17
Diluted headline earnings per share 5 10.40 3.15
Ordinary dividend per share paid during the year 5 20.00 15.00
Condensed consolidated statement of financial position as at 30 June 2015
Reviewed Restated
2015 2014
Note R'000s R'000s
ASSETS
Non-current assets 2 315 008 1 358 616
Investments in jointly controlled entities 1 342 715 1 056 924
Investments in associates 22 246
Available-for-sale investment 6 350 064
Goodwill 38 975 377
Investment properties 84 010
Property, plant and equipment 431 578 246 673
Intangible assets 13 959 6 043
Deferred tax assets 53 707 26 353
Assets classified as held-for-sale 3 386 139 598 411
Current assets 621 956 218 203
Inventories 76 452 9 450
Trade and other receivables 65 429 36 638
Related party loans 224 555 23 705
Cash and cash equivalents 242 309 145 482
Income tax receivable 13 211 2 928
Total assets 3 323 103 2 175 230
EQUITY AND LIABILITIES
Capital and reserves
Total equity 2 333 584 1 682 715
Stated capital 859 517 830 230
Treasury shares (76 222) (72 709)
Accumulated profit 1 494 635 920 217
Available-for-sale reserve at fair value 45 064 1 056
IFRS 2 share-based payment reserve 10 289 3 620
Capital redemption reserve fund 301 301
Non-controlling interest (17 575) (9 407)
Total shareholders' equity 2 316 009 1 673 308
Non-current liabilities 469 056 212 683
Preference shares 332 424 132 691
Interest-bearing borrowings 102 136 60 000
Finance lease liabilities 17 895 945
Deferred tax liabilities 16 041 18 557
Provisions 560 490
Liabilities classified as held-for-sale 3 31 379 170 124
Current liabilities 506 659 119 115
Trade and other payables 112 680 69 079
Provisions 11 341 9 791
Preference shares 27 787
Interest-bearing borrowings 309 433 32 195
Finance lease liabilities 2 077 207
Related party loans 30 000
Dividends payable 8 276 7 693
Income tax payable 5 065 150
Total equity and liabilities 3 323 103 2 175 230
Condensed consolidated statement of cash flows for the year ended 30 June 2015
Reviewed Restated
2015 2014
Note R'000s R'000s
Cash flows from operating activities
Net cash utilised in operations (176 663) (98 937)
Income tax paid (21 780) (1 950)
Finance income 21 236 8 621
Net cash from operating activities of discontinued operations 3 22 528 106 711
Net cash (outflow)/inflow from operating activities (154 679) 14 445
Cash flows from investing activities
Acquisition of plant and equipment (162 683) (76 207)
Acquisition of land and buildings (13 417) (42 172)
Acquisition of investment properties (40 160)
Acquisition of intangibles (9 955) (4 286)
Proceeds from disposal of property, plant and equipment 714 24
Cash (paid)/acquired through business combination (50 579) (15 075)
Investments made (316 436) (22 326)
Consideration from the disposal of investment 155 055 229
Loans advanced (23 100) (10 232)
Loan repayment received 112 123 1 112
Dividends received 142 174 117 863
Net cash from investing activities of discontinued operations 3 28 898 (78 860)
Net cash outflow from investing activities (177 366) (129 930)
Cash flows from financing activities
Dividends paid (107 459) (68 564)
Shares bought back (3 650) (10 770)
Loans received 584 520 26 188
Repayment of loans (10 088) (7 473)
Share issue costs (79) (134)
Acquisition of non-controlling interest (10 180)
Finance costs (57 092) (17 702)
Net cash from financing activities of discontinued operations 3 1 213 (32 109)
Net cash inflow/(outflow) from financing activities 397 185 (110 564)
Net increase/(decrease) in cash and cash equivalents 65 140 (226 049)
Cash and cash equivalents at the beginning of the year 177 169 403 218
Total cash and cash equivalents at the end of the year 242 309 177 169
Total cash and cash equivalents from discontinued operations 3 31 687
Total cash and cash equivalents from continuing operations 242 309 145 482
Condensed consolidated statement of changes in equity for the year ended 30 June 2015
Accumu-
Stated Treasury lated
capital shares profits
R'000s R'000s R'000s
AUDITED
Balance at 30 June 2013 730 364 (2 070) 914 258
Total comprehensive income/(loss) for the year 70 930
Profit/(loss) for the year from continuing operations 65 470
Profit for the year from discontinued operations 5 460
Other comprehensive loss
Dividends declared (68 964)
Dividends prescribed and written back 4 384
Treasury shares acquired (10 770)
Shares issued 100 000 (60 000)
Share-based payment reserve
Acquisition of subsidiary (391)
Treasury shares allocated to employees 131
Share issue expenses (134)
Balance at 30 June 2014 830 230 (72 709) 920 217
REVIEWED
Total comprehensive income/(loss) for the year 669 092
Loss for the year from continuing operations (47 892)
Profit for the year from discontinued operations 716 984
Other comprehensive income
Dividends declared (108 041)
Treasury shares acquired (3 650)
Shares issued 29 366
Share-based payment expense
IFRS 2 charge relating to equity-accounted investments
Acquisition of subsidiary
Acquisition of non-controlling interest 13 367
Treasury shares allocated to employees 137
Share issue expenses (79)
Balance at 30 June 2015 859 517 (76 222) 1 494 635
Available- Share- Capital
for-sale based redemption Non-
reserve at payment reserve controlling Total
fair value reserve fund interest equity
R'000s R'000s R'000s R'000s R'000s
Balance at 30 June 2013 6 245 301 (1 957) 1 647 141
Total comprehensive income/(loss)
for the year (5 189) (7 841) 57 900
Profit/(loss) for the year from
continuing operations (7 841) 57 629
Profit for the year from
discontinued operations - 5 460
Other comprehensive loss (5 189) (5 189)
Dividends declared (68 964)
Dividends prescribed and written back 4 384
Treasury shares acquired (10 770)
Shares issued 40 000
Share-based payment reserve 3 620 3 620
Acquisition of subsidiary 391
Treasury shares allocated to employees 131
Share issue expenses (134)
Balance at 30 June 2014 1 056 3 620 301 (9 407) 1 673 308
REVIEWED
Total comprehensive income/(loss) for
the year 44 008 (7 354) 705 746
Loss for the year from continuing
operations (7 354) (55 246)
Profit for the year from discontinued
operations 716 984
Other comprehensive income 44 008 44 008
Dividends declared (108 041)
Treasury shares acquired (3 650)
Shares issued 29 366
Share-based payment expense 6 001 6 001
IFRS 2 charge relating to equity-accounted
investments 668 668
Acquisition of subsidiary 36 309 36 309
Acquisition of non-controlling interest (37 123) (23 756)
Treasury shares allocated to employees 137
Share issue expenses (79)
Balance at 30 June 2015 45 064 10 289 301 (17 575) 2 316 009
Explanatory notes to the preliminary group results for the year ended 30 June 2015
1. ACCOUNTING POLICIES
The condensed consolidated financial statements are prepared in accordance with the requirements of the JSE
Limited (JSE) listing requirements for preliminary reports and the requirements of the Companies Act of
South Africa. The listing requirements requires preliminary reports to be prepared in accordance with the
framework concepts and the measurement and recognition requirements of International Financial Reporting
Standards (IFRS); the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee;
Financial Pronouncements as issued by the Financial Reporting Standards Council; and to also, as a minimum,
contain the information required by IAS 34: Interim Financial Reporting.
The accounting policies applied in the preparation of the condensed consolidated financial statements are in
terms of IFRS and are consistent with those accounting policies applied in the preparation of the previous
consolidated annual financial statements.
The financial statements have been prepared under the supervision of the Financial Director, Dylan Pienaar CA(SA).
During the year under review various new and revised accounting standards became effective, but their
implementation had no impact on the results of either the current or prior year.
AUDIT OPINION
The condensed consolidated financial statements for the year ended 30 June 2015 have been reviewed by Ernst &
Young Inc., who expressed an unmodified review conclusion. A copy of the auditor's review report is available for
inspection at the company's registered office.
Where the preliminary Group results refer to the interim results for the six months ended 31 December 2014 these
interim results have not been reviewed nor audited.
The directors of GPI take full responsibility for the contents of the preliminary group results.
The auditor's report does not necessarily report on all information contained in this preliminary group results.
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 company's registered office.
2. COMPARATIVE PERIODS
2.1 Prior period restatement
In the 2014 consolidated annual financial statements, the Group's investments in SunWest and Golden Valley Casino
were considered to be held-for-sale as an agreement had been concluded to dispose of these investments, subject
to certain conditions being met. At the time it was considered highly probable that the sale would be concluded.
However, during the current year, with the delays in concluding the sale, the conclusion of the transaction was
no longer considered highly probable and the held-for-sale definition was no longer met for these investments.
Consequently, the financials have been restated as if the investments had never been classified as held-for-sale,
as required by IFRS. The impact of the restatement on the financial position and financial performance of the
Group is as follows:
30 June 2014
Previously
stated Adjustments Restated
R'000s R'000s R'000s
Statement of comprehensive income
(Loss)/profit from equity accounted investments (528) 116 512 (i) 115 984
Profit after tax from discontinued operations 121 972 (116 512)(i) 5 460
Basic earnings per share 15.20 15.20
Diluted earnings per share 15.13 15.13
Headline earnings per share 3.17 3.17
Diluted headline earnings per share 3.15 3.15
Statement of financial position
Investments in jointly controlled entities 1 056 924 (ii) 1 056 924
Assets classified as held-for-sale 1 655 335 (1 056 924)(ii) 598 411
Notes
i Equity-accounted earnings from Sunwest for the 12 months ended 30 June 2014 previously recognised under
discontinued operations and now restated to be recognised as profit from equity-accounted investments in
profit or loss from continuing operations.
ii The carrying value of Sunwest at 30 June 2014, previously recognised as an asset classified as held-for-
sale, now restated to be recognised as an investment in joint venture under non-current assets.
2.2 Prior period error Interim results
During the current year's financial close process, management identified the following errors in the interim
results for the six months ended 31 December 2014.
i) The disposal of 25.1% of GPI Slots was accounted for as being sold on 1 July 2014, being the effective date
of the sale, as per the sale agreement, subject to certain conditions being met. However, these conditions
were only met on 30 December 2014, being the effective date of the sale in terms of IFRS. Therefore the
interim results for the six-month period ended 31 December 2014 have been restated to correct the effective
date of the sale by removing the 30% of GPI Slots' earnings that had previously been recognised in profit or
loss from continuing operations and to recognise GPI Slots' full earnings before depreciation and
amortisation for the period 1 July 2014 to 30 December 2014, in profit or loss from discontinued operations.
ii) In the interim results for the six months ended 31 December 2014, the fair value of the Group's investment in
Spur was measured using the market price per Spur share as quoted on the JSE. However, the investment is
subject to trading restrictions linked to the Group's empowerment credentials and a five-year lock-in period,
and IFRS requires that these trading restrictions be considered when calculating the fair value of the
investment. Therefore, the interim results for 31 December 2014 have been restated to apply a 12.0%
tradability discount to the market price per Spur share in determining the fair value of the investment at
31 December 2014 (Note 6).
(iii) When determining the basic earnings per share and the headline earnings per share in the interim results
for the six months ended 31 December 2014, the Group's treasury shares were not deducted from the weighted
average number of shares in issue ("WANOS"). The interim results for the six months ended 31 December 2014
have been restated to take into account the effect of deducting the Group's treasury shares from the WANOS.
The impact of the restatement on the financial position and financial performance of the Group is as follows:
31 December 2014
Previously
stated Adjustments Restated
R'000s R'000s R'000s
Statement of comprehensive income
Profit from equity-accounted investments 9 804 (13 828) (i) (4 024)
Loss from continuing operations (99 550) (13 828) (i) (113 378)
Dividends received 70 290 70 290
Tax on sale of 25.1% of GPI Slots (36 255) (36 255)
Gain on derecognition of GPI Slots as a subsidiary 684 338 (72 917) (ii) 611 421
Equity earnings GPI Slots 72 917 (ii) 72 917
Profit for the year from discontinued operations 718 373 718 373
Profit for the period 618 823 (13 828) 604 995
Unrealised fair value gain/(loss) on available-for-sale
investments net of tax 36 489 (33 129) (iii) 3 360
Total comprehensive income for the period 655 312 (46 957) 608 355
Cents Cents Cents
Basic earnings per share (vi) 127.66 2.03 129.69
Continuing operations (20.21) (3.75) (23.96)
Discontinued operations 147.87 5.78 153.65
Diluted earnings per share (vi) 127.03 1.03 128.06
Continuing operations (20.11) (3.55) (23.66)
Discontinued operations 147.14 4.58 151.72
Headline earnings per share (vi) (5.74) 8.91 3.17
Diluted headline earnings per share (vi) (5.71) 8.84 3.13
R'000s R'000s R'000s
Statement of financial position
Investment in joint ventures 289 661 (13 828) (i) 275 833
Available-for-sale investment 339 437 (40 732) (iii) 298 705
Available-for-sale investments' fair value reserve (36 421) 33 129 (iv) (3 292)
Deferred tax liabilities (46 679) 7 603 (v) (39 076)
Notes
i 30% of GPI Slots' profit for the period, previously recognised as profit from equity-accounted investments
in profit or losses from continuing operations, and now removed.
ii 100% of GPI Slots' profit for the period, before depreciation and amortisation, previously not recognised,
now restated to be recognised as profit from discontinued operations in the profit or loss from discontinued
operations.
iii 12% tradability discount related to the fair value of GPI's investment in Spur, which was previously not
recognised, now restated to reduce the fair value of the investment.
iv Relates to the fair value adjustment net of tax referred to in Note iii above.
v Deferred tax effect of the fair value adjustment referred to in Note iii above.
vi Earnings per share have been calculated using the weighted average number of shares in issue less treasury
shares.
3. DISCONTINUED OPERATIONS AND ASSETS HELD FOR SALE
GPI Slots
On 30 December 2014, the first of three tranches to dispose of up to 70.0% of GPI Slots was concluded. In this
tranche the Group sold a 25.1% holding to Sun International for R215.9 million. The disposal reduced the Group's
holding to 74.9% and in terms of the GPI Slots shareholders agreement, which came into effect on 30 December 2014,
the investment is controlled jointly by its shareholders. Therefore the investment in GPI Slots was deconsolidated
on 30 December 2014 and classified as a jointly controlled entity. The deconsolidation resulted in GPI losing
control of net assets of R538.5 million for proceeds of cash (R215.9 million). The fair value of the newly
recognised jointly controlled entity (R644.2 million) and recognised loan receivables (R289.8 million) resulted
in a gain on deconsolidation of R611.4 million.
44.9% of the 74.9% investment in GPI Slots represents the holding that the Group has committed to dispose in the
second and third tranches and has continued to be recognised as a jointly controlled investment held for sale
subsequent to the first tranche disposal and the Group's loss of control of the investment.
30.0% of the 74.9% investment in GPI Slots represents the holding that the Group has not committed to dispose and
has been recognised as a jointly controlled entity under non-current assets.
Dolcoast
On 30 January 2015, the Group concluded the disposal of its entire 24.9% investment in Dolcoast via a share buy-
back for R130.0 million. The investment was disclosed as a held-for-sale asset in the prior year and up to the
date of its disposal in the current year. The investment's carrying value on the date of the disposal was
R121.3 million and, as a result, a R8.7 million profit has been recognised in profit or loss from discontinued
operations. The deferred tax liability of R15.0 million recognised in the prior year has been reversed, through
profit or loss from discontinued operations, due to a change in tax consequences of the disposal.
National Manco
On 2 December 2014, the Group concluded the disposal of its entire 5.67% investment in National Manco for
R1.4 million. The investment was classified as a held-for-sale asset in the prior year and in the current year up
to the date of its disposal. The carrying value of the investment was R1.4 million on the date of sale and
therefore no profit on the sale was recognised. However, R1.4 million of previously unrecognised fair value gains
was released into the profit or loss from discontinued operation as a result of the sale.
SunWest and Golden Valley
On 3 July 2015, the Group concluded a termination agreement with Sun International and Tsogo Sun Limited, which
cancelled the transaction to dispose of its 25.1% holding in SunWest and its 25.1% holding in Golden Valley. The
cancellation of the disposal confirmed that both the investments did not meet the held-for-sale criteria at
year-end. Therefore, both the investments have been recognised in the jointly controlled entities line under
non-current assets and the financials have been restated as if the investments had never been classified as
held-for-sale, as required by IFRS.
GPI Slots Dolcoast National Manco Total
Reviewed Restated
2015 2014 2015 2014 2015 2014 2015 2014
R'000s R'000s R'000s R'000s R'000s R'000s R'000s R'000s
Revenue 393 276 599 616 5 030 398 306 599 616
Cost of sales (235 415) (351 286) (235 415) (351 286)
Gross profit 157 861 248 330 5 030 162 891 248 330
Operating costs (67 070) (105 331) (67 070) (105 331)
Profit from operations 90 791 142 999 5 030 95 821 142 999
Profit from equity-accounted
investments 10 792 10 792
Profit on disposal of
investment 5 364 8 717 1 381 15 462
Gain on loss of control
of GPI Slots 611 421 611 421
Depreciation (36 262) (36 262)
Amortisation (1 880) (1 880)
Profit before finance costs
and taxation 707 576 104 857 13 747 10 792 1 381 722 704 115 649
Finance income 2 898 1 499 2 898 1 499
Finance costs (1 755) (4 115) (1 755) (4 115)
Profit before taxation 708 719 102 241 13 747 10 792 1 381 723 847 113 033
Taxation (21 876) (107 573) 15 013 (6 863) (107 573)
Profit/(loss) for the
year from discontinued
operations 686 843 (5 332) 28 760 10 792 1 381 716 984 5 460
Restated
2015 2014
Earnings per share Cents Cents
Basic earnings per share 152.93 1.18
Diluted basic earnings per share 150.95 1.17
GPI Slots Dolcoast National Manco Total
Reviewed Restated
2015 2014 2015 2014 2015 2014 2015 2014
R'000s R'000s R'000s R'000s R'000s R'000s R'000s R'000s
ASSETS
Non-current assets
Investment in jointly
controlled entities 386 139 386 139
Investment in associates 121 283 121 283
Investments 1 300 1 300
Goodwill 160 902 160 902
Property, plant and
equipment 132 130 132 130
Intangible assets 85 006 85 006
Loan receivable 3 110 3 110
Deferred tax assets 4 478 4 478
Current assets
Inventories 2 529 2 529
Trade and other
receivables 52 585 52 585
Loans receivable 1 933 1 933
Income tax receivable 1 468 1 468
Cash and cash equivalents 31 687 31 687
Assets classified as held-
for-sale 386 139 475 828 121 283 1 300 386 139 598 411
Non-current liabilities
Finance lease liabilities 1 774 1 774
Deferred tax liabilities 31 379 88 932 31 379 88 932
Provisions 1 653 1 653
Current liabilities
Trade and other payables 70 578 70 578
Provisions 4 478 4 478
Finance lease liabilities 516 516
Taxation 2 193 2 193
Liabilities associated with
assets held-for-sale 31 379 170 124 31 379 170 124
Net assets directly
associated with
discontinued operations 354 760 305 704 121 283 1 300 354 760 428 287
Net cash generated by
operations 80 813 125 516 80 813 125 516
Income tax paid (61 910) (20 163) (61 910) (20 163)
Finance income 3 625 1 358 3 625 1 358
Net cash outflow from
operating activities 22 528 106 711 22 528 106 711
Acquisition of plant and
equipment and intangibles (54 803) (70 674) (54 803) (70 674)
Proceeds from disposal of
property, plant and
equipment 3 070 462 3 070 462
Cash acquired through
business combination (3 752) (3 752)
Investments made (55 780)(i) (4 896) (55 780) (4 896)
Consideration from the
disposal of investment 130 000 1 381 131 381
Dividends received 5 030 5 030
Net cash (outflow)/inflow
from investing activities (107 513) (78 860) 135 030 1 381 28 898 (78 860)
Dividends paid
Increase/(decrease) in loans 1 378 (27 952) 1 378 (27 952)
Finance costs (165) (4 157) (165) (4 157)
Net cash inflow/(outflow)
from financing activities 1 213 (32 109) 1 213 (32 109)
Notes
1 During the year and while it was recognised as a discontinued operation, GPI Slots acquired 100% of KZN Slots
for a purchase consideration of R78.5 million. On the date of the acquisition, KZN Slots' total identifiable
net liabilities, at fair value amounted to R1.4 million and the carrying value of its shareholder loan
R41.0 million. The R38.7 million difference between the purchase consideration, the shareholder loan and
identifiable net liabilities were recognised by GPI Slots as goodwill. R15.8 million of the purchase
consideration was settled by way of an issue of new GPI shares and the balance of consideration, of R62.7
million, by way of cash. KZN Slots had a cash balance of R6.9 million on the acquisition date and when netted
off against the cash portion of the purchase consideration, amounts to net cash paid through the business
combination of R55.8 million.
4. BUSINESS COMBINATION
Mac Brothers
On 28 July 2014, the Group acquired a further 42.8% of Mac Brothers for R42.8 million increasing its holding to
65.0%. The increased holding gave the Group control of the investment which had been previously classified as an
investment in associate. As a result, Mac Brothers was consolidated into the Group results with effect from
28 July 2014.
The total consideration paid for the initial 22.2% investment and the subsequent 42.8% investment was R65.1
million. The initial 22.2% investment was increased to its fair value of R23.0 million, resulting in a fair
value gain of R0.4 million being recognised in the profit or loss from continuing operations. All the assets
purchased and the liabilities assumed in the purchase were identified at their fair values and were recognised
separately from goodwill. No intangible assets were recognised during the identification process. Goodwill of
R38.6 million was recognised as part of the business combination and represents the expected value-creation
within Mac Brothers as a result of the opportunity to trade with Burger King during their expansion.
On 13 January 2015, the Group acquired the remaining 35.0% of Mac Brothers for R23.8 million and increased its
holding to 100%, of which R13.6 million was settled by an issue of new GPI shares.
Fair value
recognised on
acquisition
R'000s
Identifiable assets and liabilities
Property, plant and equipment 65 509
Inventory 50 796
Trade and other receivables 17 608
Cash and cash equivalents (7 788)
Deferred tax liability (6 830)
Finance lease liability (9 765)
Taxation payable (902)
Trade and other payables (45 086)
Total identifiable net assets at fair value 63 542
Calculation of goodwill
Non-controlling interest at fair value 36 309
Existing equity interest at fair value 23 040
Cash paid in respect of acquisition 42 791
Less: Total identifiable net assets at fair value (63 542)
Goodwill 38 598
Analysis of cash flow on acquisition
Net cash acquired on acquisition (7 788)
Cash paid in respect of acquisition (42 791)
Net cash outflow (50 579)
Revenue since acquisition 211 267
Profit since acquisition 2 462
Revenue if acquired 1 July 2014 228 622
Profit if acquired 1 July 2014 4 174
5. BASIC AND DILUTED EARNINGS PER SHARE
Basic earnings per share amounts are calculated by dividing net profit/(loss) for the year attributable to the
ordinary equity holders of the Company by the weighted average number of ordinary shares in issue during the year.
Reviewed Restated
Gross Net Gross Net
Basic and diluted earnings per share 2015 2015 2014 2014
reconciliation R'000s R'000s R'000s R'000s
Profit/(loss) for the year 661 738 63 089
Continuing operations (55 246) 57 629
Discontinued operations 716 984 5 460
Non-controlling interest 7 354 7 841
Profit for the year attributable to ordinary
shareholders 669 092 70 930
Headline earnings reconciliation
Profit for the year attributable to ordinary
shareholders 669 092 70 930
Profit on sale of investment (15 462) (30 475)
Gain on derecognition of subsidiary (611 421) (589 474)
Gain on acquisition of investments (23 637) (23 637)
Loss on disposal of plant and equipment 104 75 190 137
Remeasurement of investment (405) (405) (32 838) (32 838)
Adjustments by jointly controlled entities 631 574 253 182
Loss on disposal of plant and equipment 631 574 253 182
Headline earnings 49 387 14 774
000s 000s
Weighted average number of shares
in issue less treasury shares 468 822 466 738
Effects of dilution from:
Share options 6 160 1 981
Diluted weighted average number of
shares in issue 474 982 468 719
Cents Cents
Basic earnings per share 142.72 15.20
Diluted earnings per share 140.87 15.13
Headline earnings per share 10.53 3.17
Diluted headline earnings per share 10.40 3.15
6. FINANCIAL INSTRUMENTS: FAIR VALUES OF FINANCIAL INSTRUMENTS
The Group uses the following hierarchy for determining and disclosing the fair value of financial instruments by
valuation technique:
Level 1: Quoted prices (unadjusted) in active markets for identical assets and liabilities.
Level 2: Other techniques for which all inputs have a significant effect on the recorded fair value and are
observable, either directly or indirectly.
Level 3: Techniques that use inputs which have a significant effect on the recorded fair value that are not
based on observable market data.
As at 30 June, the Group held the following financial instruments measured at fair value:
Level 1 Level 2 Level 3 Total
2015 R'000s R'000s R'000s R'000s
Available-for-sale investments Spur(i) 350 064 350 064
Total 350 064 350 064
Level 1 Level 2 Level 3 Total
2014 R'000s R'000s R'000s R'000s
Available-for-sale investments National
Manco(ii) 1 300 1 300
Total 1 300 1 300
Notes
i Available-for-sale investment Spur
The carrying value of the investment in Spur at 30 June 2015 of R350.1 million is made up of the original
acquisition price of R294.7 million and fair value adjustments of R55.4 million.
The investment in Spur is subject to a trading restriction linked to the Group's empowerment credentials and a
five-year lock-in period. The restriction expires on 29 October 2019, after which the instrument may be traded
without restriction. The fair value of the investment has been measured by applying a tradability discount of
3.0% per year remaining on the restriction against the market price of Spur, as quoted on the JSE. The
tradability discount was determined with reference to the agreements, which govern the trading restrictions and
industry standards applied to empowerment transactions. As the terms of the trading restrictions are unobservable,
the instrument has been classified under level 3; had the trading restrictions not been in place, the instrument
would have been classified under level 1. A change of 1.0% in the discount rate used to determine the fair
value at the reporting date would have increased/decreased other comprehensive income after tax by R3.2 million.
ii Available-for-sale investment National Manco
The Group disposed its investment in National Manco during the year, the details of which have been
disclosed in Note 3.
7. SEGMENT ANALYSIS
The chief decision makers are considered to be the members of the GPI Executive Committee, who review the Group's
internal reporting firstly by industry and secondly by significant business unit. The chief decision makers do not
review the Group's performance by geographical sector and therefore no such disclosure has been made. During the
current year, due to the diversification of the Group's investment portfolio, the chief decision makers have
reassessed the segments and as a result, identified the following segments: Gaming which includes Sunwest, GPI
Slots Group and Grand Sports; Food division which includes Burger King, Mac Brothers, Spur and Excellent Meat
Burger Plant; Diversified division which includes GTM; Group costs which include GPI Property, Grand Technology
and central head office costs. The prior year results in the segment report have been restated to reflect the
revised segments.
Listed below is a detailed segment analysis:
External Intersegment Operating Equity-accounted EBITDA Finance
revenue revenue (i) costs(ii) earnings income
Restated Restated Restated Restated Restated Restated
2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014
R'000s R'000s R'000s R'000s R'000s R'000s R'000s R'000s R'000s R'000s R'000s R'000s
Gaming
SunWest - - - - 129 347 116 512 129 347 116 512 - -
GPI Slots - - - - - 9 671 - 9 671 - - -
Grand Sport 545 - - (5 062) (422) - - (7 678) (422) 12 -
Food
Burger King 307 766 126 867 - - (219 727) (102 925) - - (67 873) (61 561) 1 566 675
Mac Brothers 147 949 - 63 318 - (48 408) 389 (80) 2 084 - - -
Spur 6 726 - - - (80) - - 6 646 - - -
Excellent Meat
Burger Plant - - - - - (767) (448) (767) (448) - -
Diversified
GTM - - - (3 746) (3 746) - - -
Group costs
Grand
Technology 5 881 436 7 458 6 546 (11 389) (3 614) - (6 080) (3 230) - -
GPI Properties 9 504 838 24 301 13 610 (17 432) (639) - (7 928) 199 303 729
Central costs 23 641(iii)6 835 415 416 249 891 (84 362)(iv)(57 785) - (60 721) 5 893 19 355 7 217
Continuing 502 012 134 976 510 493 270 047 (386 460) (165 385) 134 894 115 984 (7 045) 56 943 21 236 8 621
Gaming
Dolcoast 5 030 - - - - - - 10 792 13 747(v) 10 792 - -
National
Manco - 556 - - - - - - 1 381(vi) 557 - -
GPI Slots 393 276 599 060 - - (67 070) (105 331) - - 707 576(vii)142 443 2 898 1 499
Discont-
inuing 398 306 599 616 - - (67 070) (105 331) - 10 792 722 704 153 792 2 898 1 499
Finance Depreciation Net profit Total
expense and amortisation Taxation after tax assets Total liabilities
Restated Restated Restated Restated Restated Restated
2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014
R'000s R'000s R'000s R'000s R'000s R'000s R'000s R'000s R'000s R'000s R'000s R'000s
Gaming
SunWest (12 821) (11 906) - - - 116 526 104 606 1 055 749 1 056 924 (135 997) (132 691)
GPI Slots - - - 9 671 457 576 - -
Grand Sport - (398) - - - (8 064) (422) 1 917 817 (648) (367)
Food
Burger King (613) (71) (19 288) (5 623) 23 786 18 879 (62 422) (47 701) 379 481 180 864 (83 856) (43 940)
Mac Brothers (1 884) (2 331) 498 - (1 633) - 119 321 - (56 255) -
Spur (12 532) - - - (5 886) - 350 585 - (237 791) -
Excellent
Meat
Burger Plant - - - - (767) (448) - - (1 215) -
Diversified
GTM - - - - (3 746) - 33 338 - - -
Group costs
Grand
Technology (9) (11) (1 254) (862) - - (7 343) (4 103) 6 999 9 012 (1 444) (7 966)
GPI Properties (8 250) (6 038) (1 262) (1 144) (1 480) (678) (18 617) (6 932) 295 695 169 776 (128 901) (70 159)
Central costs (20 983) - (1 144) (1 126) (9 472) 645 (72 965) 12 629 236 303 159 426 (329 608) (76 675)
Continuing (57 092) (18 026) (25 677) (8 755) 13 332(viii) 18846 (55 246) 57 629 2 936 964 1576 819 (975 715) (331 798)
Gaming
Dolcoast - - - - 15 013(ix) - 28 760 10 792 - 121 283 - -
National
Manco - - - - - - 1 381 557 - 1 300 - -
GPI Slots (1 755) (4 116) - (38 142) (21 876) (107573) 686 843(x) (5 889) 386 139 475 828 (31 379) (170 124)
Discont-
inuing (1 755) (4 116) - (38 142) (6863)(viii)(107573) 716 984 5 460 386 139 598 411 (31 379) (170 124)
Notes
i Transactions between segments are concluded at arm's length.
ii All costs are presented after elimination of intergroup charges.
iii Included under revenue is R17.0 million for the cancellation of the Slots service level agreement as well as dividends received on
a preference share investment amounting to R5 million.
iv Included in operating costs are transaction costs to the value of R20.0 million and executive directors' performance incentives
of R22.1 million.
v Included in EBITDA is a profit on sale of Dolcoast amounting to R8.7 million.
vi Included in EBITDA is a profit on sale of National Manco amounting to R1.4 million.
vii A R611.4 million gain from loss of control of a subsidiary is included in the GPI Slots EBITDA recognised under profit from
discontinued operations.
viii The income tax expense is based on the net profit before tax pre-elimination of intergroup charges.
ix The income tax credit relates to the reversal of a previously recognised deferred tax liability related to the disposal of the
investment in Dolcoast due to a change in expected tax consequences.
x The net profit after tax of GPI Slots includes the release of deferred tax.
Cape Town 1 September 2015
DIRECTORATE
Non-executive directors
Alex Abercrombie, Walter Geach*, Norman Maharaj* (Lead Independent), Nombeko Mlambo, Colin Priem* (*Independent)
Executive directors
Hassen Adams (Executive Chairman), Alan Keet (Chief Executive Officer), Dylan Pienaar (Financial Director)
Company secretary
Lazelle Christian Parton
Public officer
Dylan Pienaar CA(SA)
Transfer secretaries
Computershare Investor Services (Pty) Ltd
PO Box 61051
Marshalltown
2107
Auditors
Ernst & Young Inc. (EY)
Attorneys
Bernadt Vukic Potash & Getz
Bankers
The Standard Bank of South Africa Limited
Corporate advisors
Leaf Capital (Pty) Ltd
PO Box 44302
7735
Sponsors
PSG Capital (Pty) Ltd
PO Box 7403
Stellenbosch
7599
Registered office
10th Floor
33 on Heerengracht
Heerengracht
Cape Town
8001
Registration number
1997/003548/06
Share code
GPL
ISIN
ZAE000119814
Domicile and country of incorporation
South Africa
WWW.GRANDPARADE.CO.ZA
Date: 01/09/2015 07:30:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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