Wrap Text
Condensed consolidated unaudited interim financial results for the six months ended 29 February 2016
enX GROUP LIMITED (Incorporated in the Republic of South Africa)
(Registration number 2001/029771/06) JSE share code: enX
ISIN: ZAE000195723 (“enX” or “the company” or “the group”)
Condensed consolidated unaudited interim financial results
for the six months ended 29 February 2016
Revenue up 59% to R517,7 million
Adjusted EBITDA up 65% to R41,3 million
Adjusted headline earnings up 51% to R22,2 million
Net asset value per share up 18% to 123 cps
Record production volumes at Centlube
Capital raise and empowerment transaction successfully concluded
Genmatics acquisition finalised and successfully integrated into the group
Condensed consolidated statement of comprehensive income
Unaudited Unaudited Audited
for the for the for the
six months six months year
ended ended ended
29 February 28 February 31 August
% 2016 2015* 2015
change R’000 R’000 R’000
Revenue 59 517 726 326 469 882 835
Cost of sales (378 438) (227 870) (628 468)
Gross profit 41 139 288 98 599 254 367
Gross profit (%) 27 30 29
Other operating income 754 11 014 6 232
Net operating expenses (107 225) (81 656) (198 601)
Impairment of goodwill – (10 961) (10 961)
IFRS2 share appreciation
rights charge (6 579) (15 796) (15 480)
Profit from operations before
interest and taxation 26 238 1 200 35 557
Net interest (paid)/received (1 750) 442 (2 165)
Interest received 1 419 1 238 1 997
Interest paid (3 169) (796) (4 162)
Share of other comprehensive
loss of equity accounted
investments (187) (151) (77)
Profit before taxation 24 301 1 491 33 315
Taxation expense (6 851) (2 037) (11 473)
Total comprehensive
income/(loss) for the period 17 450 (546) 21 842
Number of shares in issue 562 327 001 421 689 018 421 689 018
Weighted average number of
shares 559 252 947 405 910 347 415 089 994
Earnings/(loss) per share
(cents)** 2 418 3,1 (0,1) 5,3
Headline earnings per share
(cents)1** 26 3,1 2,5 7,6
Adjusted headline earnings
per share (cents)1 7 4,0 3,7 8,7
EBITDA (R’000)2 360 34 697 7 536 49 173
Adjusted EBITDA (R’000)2 65 41 276 25 021 66 342
* Restated for IFRS 3 adjustments, refer to note on Comparatives.
** enX has no dilutionary instruments in issue
1. Headline earnings reconciliation
Attributable income/(loss) for the
period 17 450 (546) 21 842
Net (profit)/loss on disposal of
property, plant and equipment (17) 26 (1 100)
Gain on disposal of subsidiary – (417) (417)
Impairment of goodwill – 10 961 10 961
Tax effect of adjustments 5 (7) 308
Headline earnings 74 17 438 10 017 31 594
IFRS2 share appreciation rights
charge 6 579 15 796 15 480
Release of straightline provision
for operating lease – (9 272) (9 272)
Tax effect of adjustments (1 842) (1 827) (1 738)
Adjusted headline earnings 51 22 175 14 714 36 064
2. EBITDA reconciliation
Profit from operations before
interest and taxation 26 238 1 200 35 557
Depreciation and amortisation 8 459 6 336 13 616
EBITDA 360 34 697 7 536 49 173
IFRS2 share appreciation rights
charge 6 579 15 796 15 480
Release of straightline provision
for operating lease – (9 272) (9 272)
Impairment of goodwill – 10 961 10 961
Adjusted EBITDA 65 41 276 25 021 66 342
Adjusted EBITDA (%) 8,0 7,7 7,5
Condensed consolidated statement of financial position
Unaudited Unaudited Audited
as at as at as at
29 February 28 February 31 August
2016 2015* 2015
R’000 R’000 R’000
Assets
Non-current assets 318 690 230 139 246 315
Property, plant and equipment 118 811 62 461 80 271
Goodwill 164 776 125 426 125 931
Intangible assets 21 000 22 618 21 809
Deferred taxation 13 612 19 634 17 626
Investment in associate 491 – 678
Current assets 656 773 498 359 636 981
Inventories 351 086 247 092 353 736
Trade and other receivables 243 032 190 395 248 630
Taxation receivable – 10 431 655
Cash and cash equivalents 62 655 50 441 33 960
Total assets 975 463 728 498 883 296
Equity and liabilities
Equity
Capital and reserves 692 455 438 958 461 346
Stated capital 559 046 345 387 345 387
Accumulated profits 133 409 93 571 115 959
Liabilities
Non-current liabilities 42 575 12 164 36 894
Interest-bearing liabilities 26 824 4 499 30 041
Interest-bearing vendor loan 8 194 – –
Deferred taxation 7 557 7 665 6 853
Current liabilities 240 433 277 376 385 056
Trade and other payables 224 716 243 084 296 631
Interest-bearing liabilities 10 507 30 958 65 169
Interest-bearing vendor loan 4 762 – –
Bank overdraft – – 21 326
Taxation payable 448 3 334 1 930
Total equity and liabilities 975 463 728 498 883 296
Net asset value per share (cents) 123,1 104,1 109,4
Net tangible asset value per share
(cents) 91,1 70,5 74,4
Average net operating assets (R'000) 559 642 393 150 424 303
Average net tangible operating assets
(R'000) 386 738 244 106 276 563
Average net operating asset turnover
(x) 1,9 1,6 2,1
Average net tangible operating asset
turnover (x) 2,9 2,6 3,2
Adjusted operating profit margin (%) 6,2 5,7 6,0
Pre-tax return on average net
operating assets (%) 11,9 9,2 12,6
Pre-tax return on average net tangible
operating assets (%) 17,9 14,9 19,2
* Restated for IFRS 3 adjustments, refer to note on Comparatives.
Condensed consolidated statement of cash flows
Unaudited Unaudited Audited
for the for the for the
six months six months year
ended ended ended
29 February 28 February 31 August
2016 2015* 2015
R’000 R’000 R’000
Operating activities
Profit before taxation 24 301 1 491 33 315
Non-cash items and other
adjustments 25 705 18 326 21 922
50 006 19 817 55 237
Increase in working capital (78 774) (22 145) (124 441)
Cash utilised by operations (28 768) (2 328) (69 204)
Interest received 1 419 1 238 1 997
Interest paid (2 539) (796) (4 162)
Taxation paid (2 960) (2 077) (1 932)
Cash outflow from operating
activities (32 848) (3 963) (73 301)
Investing activities
Additions to property, plant and
equipment (12 405) (13 950) (42 454)
Business combinations (61 112) (38 035) (39 598)
Proceeds on disposal of property,
plant and equipment 606 893 6 597
Sale of interest in subsidiaries – – (280)
Loan repayment from associate – – 772
Cash outflow from investing
activities (72 911) (51 092) (74 963)
Financing activities
Net inflow from issue of shares 213 659 – –
Interest-bearing liabilities
(repaid)/raised (57 879) 31 852 87 254
Cash inflow from financing
activities 155 780 31 852 87 254
Net inflow/(outflow) of cash and
cash equivalents 50 021 (23 203) (61 010)
Cash and cash equivalents at
beginning of period 12 634 73 644 73 644
Cash and cash equivalents at end
of period 62 655 50 441 12 634
* Restated for IFRS 3 adjustments, refer to note on Comparatives.
Condensed consolidated statement of changes in equity
Unaudited Unaudited Audited
for the for the for the
six months six months year
ended ended ended
29 February 28 February 31 August
2016 2015* 2015
R’000 R’000 R’000
Stated capital 559 046 345 387 345 387
Balance at beginning of period 345 387 295 497 295 497
Additional shares issued 213 659 49 890 49 890
Accumulated profits 133 409 93 571 115 959
Balance at beginning of period 115 959 94 117 94 117
Attributable income/(loss) for the
period 17 450 (546) 21 842
Total capital and reserves 692 455 438 958 461 346
* Restated for IFRS 3 adjustments, refer to note on Comparatives.
Condensed segmental analysis
Power
Unaudited Unaudited Audited
for the for the for the
six months six months year
ended ended ended
29 February 28 February 31 August
2016 2015 2015
Revenue 244 602 175 291 454 620
External Sales 244 602 175 291 454 620
Intercompany sales – – –
Gross profit 72 671 54 509 136 984
Gross profit % 30 31 30
Profit/(loss) from operations
before interest and taxation 11 336 14 083 39 645
EBITDA3 29 641 26 526 64 791
Adjusted EBITDA 29 980 18 894 55 583
Capital expenditure 8 714 8 795 22 213
Depreciation and amortisation 3 071 1 866 3 992
Taxation expense/(income) 2 245 3 171 10 787
Total assets 491 891 311 619 445 675
Total liabilities 135 612 117 445 198 897
Net tangible operating assets4 302 800 193 465 258 306
Number of employees 306 278 271
Fuel
Unaudited Unaudited Audited
for the for the for the
six months six months year
ended ended ended
29 February 28 February 31 August
2016 2015 2015
Revenue 159 853 48 951 210 000
External Sales 159 853 48 951 210 000
Intercompany sales – – –
Gross profit 31 116 10 730 47 932
Gross profit % 19 22 23
Profit/(loss) from operations
before interest and taxation 7 156 2 151 2 938
EBITDA3 11 213 3 399 8 026
Adjusted EBITDA 11 292 4 461 8 026
Capital expenditure 2 813 2 301 11 792
Depreciation and amortisation 3 011 1 026 3 662
Taxation expense/(income) 748 518 (101)
Total assets 212 804 153 444 215 498
Total liabilities 86 491 116 184 158 125
Net tangible operating assets4 140 320 68 413 138 505
Number of employees 48 45 42
Wood
Unaudited Unaudited Audited
for the for the for the
six months six months year
ended ended ended
29 February 28 February 31 August
2016 2015 2015
Revenue 113 271 102 227 218 215
External Sales 113 271 102 227 218 215
Intercompany sales – – –
Gross profit 35 501 33 359 72 109
Gross profit % 31 33 33
Profit/(loss) from operations
before interest and taxation 2 607 4 104 7 514
EBITDA3 7 717 9 533 17 249
Adjusted EBITDA 7 795 9 741 17 431
Capital expenditure 837 2 095 7 495
Depreciation and amortisation 2 256 3 427 5 691
Taxation expense/(income) 728 758 2 103
Total assets 150 424 128 736 132 704
Total liabilities 64 748 47 365 49 344
Net tangible operating assets4 74 971 74 841 96 005
Number of employees 160 155 157
Head Office
Unaudited Unaudited Audited
for the for the for the
six months six months year
ended ended ended
29 February 28 February 31 August
2016 2015 2015
Revenue 19 152 12 788 26 481
External Sales – – –
Intercompany sales 19 152 12 788 26 481
Gross profit 19 152 12 788 26 481
Gross profit % – – –
Profit/(loss) from operations
before interest and taxation 5 159 (7 705) 27 164
EBITDA3 5 278 (7 688) 27 290
Adjusted EBITDA (7 772) (6 529) (14 843)
Capital expenditure 41 759 954
Depreciation and amortisation 121 17 126
Taxation expense/(income) 3 357 (2 297) (976)
Total assets 342 026 367 326 331 778
Total liabilities 36 549 30 182 76 365
Net tangible operating assets4 305 118 (22 024) 338 483
Number of employees 7 7 7
Consolidation
Unaudited Unaudited Audited
for the for the for the
six months six months year
ended ended ended
29 February 28 February* 31 August
2016 2015 2015
Revenue (19 152) (12 788) (26 481)
External Sales – – –
Intercompany sales (19 152) (12 788) (26 481)
Gross profit (19 152) (12 787) (29 139)
Gross profit % – – –
Profit/(loss) from operations
before interest and taxation (20) (11 433) (41 704)
EBITDA3 (19 152) (24 234) (68 183)
Adjusted EBITDA (19) (1 546) 145
Capital expenditure – – –
Depreciation and amortisation – – 145
Taxation expense/(income) (227) (113) (340)
Total assets (221 682) (232 627) (242 359)
Total liabilities (40 390) (21 635) (60 781)
Net tangible operating assets4 (327 220) (31 029) (259 200)
Number of employees – – –
Total
Unaudited Unaudited Audited
for the for the for the
six months six months year
ended ended ended
29 February 28 February* 31 August
2016 2015 2015
Revenue 517 726 326 469 882 835
External Sales 517 726 326 469 882 835
Intercompany sales – – –
Gross profit 139 288 98 599 254 367
Gross profit % 27 30 29
Profit/(loss) from operations
before interest and taxation 26 238 1 200 35 557
EBITDA3 34 697 7 536 49 173
Adjusted EBITDA 41 276 25 021 66 342
Capital expenditure 12 405 13 950 42 454
Depreciation and amortisation 8 459 6 336 13 616
Taxation expense/(income) 6 851 2 037 11 473
Total assets 975 463 728 498 883 296
Total liabilities 283 010 289 541 421 950
Net tangible operating assets4 495 989 283 666 572 099
Number of employees 521 485 477
* Restated for IFRS 3 adjustments, refer to note on Comparatives.
3. All subsidiary EBITDA figures exclude intercompany management fees
4. Excludes goodwill and intangibles which are attributable to the Power
and Fuel segments
Commentary
enX is an industrial energy and supplies group that provides quality branded
and in some segments, locally manufactured capital and consumable goods and
support services to a broad range of economic sectors in South Africa and sub-
Saharan Africa. Clients range from heavy industrial, automotive, mining and
construction groups to wholesalers, retailers, technology and telecommunications
companies, banks and manufacturers. Adding value to the products sold by
offering ongoing servicing and customer support is a key component of enX’s
business model.
enX currently comprises three business segments:
* Power segment (“Power”) which incorporates:
– Private Power Sales: The manufacture, supply, installation and maintenance
of diesel generators and related components.
– Power Product Distribution: The distribution of industrial engines, marine
engines and components.
– Temporary Power: Rental of temporary power in the form of diesel generators.
* Fuel segment (“Fuel”) incorporates the production and marketing of oil lubricants.
* Wood segment (“Wood”) which incorporates:
– The distribution of professional woodworking equipment, sale of related
consumables and the provision of associated services such as blade sharpening
and equipment maintenance.
In line with management’s intention to expand the Temporary Power unit within the
Power Segment, the group acquired the diesel generator rental business of Galeprops
2661 CC (trading as Genmatics), effective 1 September 2015.
Genmatics operates a diesel generator rental business offering generators ranging
in size from 30 kVA to 1 000 kVA to clients across South Africa.
This transaction gave enX’s diesel generator rental business an immediate and
substantial presence in KwaZulu-Natal, thereby establishing a national footprint.
The combined Temporary Power fleet is now in excess of 250 generator sets, ranging
in size from 4,5 kVA to 1 000 kVA. As part of the integration of this acquisition,
the rental unit has since been rebranded as Genmatics (previously Neptune Plant Hire).
Empowerment transaction
Building on enX’s commitment to grow its asset base and transform into a truly empowered
company, an additional 25,01% B-BBEE equity participation in enX was successfully
completed on 9 September 2015. 140 637 983 enX ordinary shares were issued to
Samvenice Trading 1 Proprietary Limited, a wholly-owned subsidiary of
CapLeverage Proprietary Limited, for an aggregate subscription price of
R213,8 million.
The issued shares were weighted for the earnings, headline earnings and adjusted
headline earnings per share as these shares have not been in issue for the full
reporting period.
On the strength of this ownership transaction and together with the group’s
various other empowerment initiatives, enX has recently been awarded a Level
4 B-BBEE rating.
The capital raised was used to finance the acquisition of Genmatics, the additional
investment in Centlube required to take-on the ExxonMobil distributorship and working
capital requirements of the Power cluster brought about by the heightened demand
during load shedding.
Results
Results for the for the six months ended 29 February 2016 were pleasing with revenue
increasing by 59% to R517,7 million (2015: R326,5 million) driven by Centlube and the
ExxonMobil distributorship being incorporated for a full half year period, the
acquisition of Genmatics as well as strong generator unit sales in New Way Power.
Earnings before interest, taxation, depreciation and amortisation (“EBITDA”)
increased by 360% to R34,7 million (2015: R7,5 million). Consistent with prior
period disclosure, management has elected to disclose an adjusted EBITDA which
provides a more meaningful reflection of sustainable earnings. Adjusted EBITDA
increased by 65% to R41,3 million (2015: R25,0 million) at a margin relative to
revenue of 8,0% (2015: 7,7%). The adjustment to EBITDA arises from an IFRS 2:
Share-based Payments charge of R6,6 million (2015: R15,8 million) relating to
the provision for long-term share-related incentives awarded to Wild Rose
Management Proprietary Limited (“Wild Rose”) and enX senior executives.
Headline earnings increased by 74% to R17,4 million (2015: R10,0 million).
This translates into headline earnings per share of 3,1 cents (2015: 2,5 cents).
Adjusted headline earnings increased by 51% to R22,2 million (2015: R14,7 million)
which translates into 4,0 cents adjusted headline earnings per share (2015: 3,7 cents
per share), a 7% increase. The weighted average number of shares in issue during the
period increased by 38% due to the inclusion of shares issued in terms of the
empowerment transaction and the shares issued for the Centlube acquisition being
accounted for the full half year period.
The increase in property, plant and equipment was driven by the acquisition
of Genmatics and ExxonMobil customer equipment. Net working capital increased
year-on-year due to the inventory build up that was required to support the
ExxonMobil distributorship and the heightened demand during load shedding.
The funding and liquidity position of the company remains strong with the group
showing a net cash positive balance of R26,8 million.
Operational review
Power
Revenue increased by 39,5% to R244,6 million (2015: R175,3 million). This
was driven by strong generator unit sales and the addition of Genmatics.
Gross margins were stable at 30%. Adjusted EBITDA increased by 58,7% to
R30,0 million (2015: R18,9 million) while adjusted EBITDA margins relative
to revenue increased to 12,3% (2015: 10,8%). Capital expenditure of R8,7 million
(2015: R8,8 million) related primarily to generator units added to the Genmatics
fleet in power bands where increased demand was being experienced.
Fuel
Centlube became part of the group on 1 December 2014 and was therefore
only included for 3 months in the prior year comparative period. In addition,
Centlube began distributing ExxonMobil products on 1 January 2015 which was
therefore only included for 2 months in the comparative period. For the six
months ending 29 February 2016 revenues were R159,9 million (2015: R49,0 million).
Volumes during the period were strong driven by new customers for which it provided
contract manufacturing services with additional shifts being added to meet demand.
Centlube was able to work with its customers to find acceptable solutions to pass
through foreign exchange rate movements in their pricing. Gross margins declined
slightly to 19% (2015: 22%) as the ExxonMobil business generates lower margins
compared to where products are manufactured. The unit generated adjusted EBITDA
of R11,3 million (2015: R4,5 million).
Wood
Revenue in the Wood cluster increased by 10,8% to R113,3 million (2015: R102,2 million)
driven by good capital equipment volumes and price increases brought about by foreign
exchange rate depreciation. Service revenues also showed healthy increases on the
back of an investment last year in additional technical staff. Consumable revenues
were flat. Gross margins declined to 31% (2015: 33%) as a result of the inclusion
of a R2,6 million foreign exchange loss and a shift in revenue mix towards capital
equipment. Austro prices its products based on cost of the product in foreign
currency. Foreign currency gains and losses are tolerated as they are mostly
recovered when the products are sold. Adjusted EBITDA decreased by 20% to
R7,8 million (2015: R9,7 million) on the back of the foreign exchange loss.
Business combination
On 1 September 2015 New Way Power, a wholly owned subsidiary of enX, acquired
the diesel generator rental business of Genmatics. The purchase consideration
was settled in cash and a vendor loan. This business forms part of the Temporary
Power business.
The details of the net assets acquired on the above business combination,
for which the purchase price has been allocated to the respective assets
and liabilities on a provisional basis, is as follows:
R’000
Non-current assets 34 374
Current assets 262
Current liabilities (43)
Net tangible assets acquired 34 593
Goodwill 38 845
Contingent purchase consideration (vendor loan) (12 326)
Purchase consideration settled in cash/net cash outflow (61 112)
The purchase price allocation of the Genmatics business combination is
provisional and will be finalised by no later than the one year anniversary
of the business combination.
Revenue of R28,1 million and net profit after tax of R3,2 million have
been included in these results since the acquisition date.
Changes to directorate
Effective 15 April 2016, Jarrod Friedman resigned as Financial Director
of the group. The board wishes to thank Jarrod for his valuable contribution
to the company and wishes him all the best in his future endeavours. Irwin
Lipworth has subsequently been appointed as Financial Director,
effective 1 May 2016.
Comparatives
As announced on 6 May 2016, the previous reported interim results for the
period ended 28 February 2015 have been restated due to the recognition and
amortisation of intangible assets identified during August 2015, when the
provisionally determined fair values of assets, liabilities and contingent
liabilities acquired as a result of the acquisition of Centlube was finalised.
The comparative results were restated as follows:
Restated Statement of Financial Position as at 28 February 2015
* Property, plant and equipment decreased by R11 000;
* Goodwill increased by R0,6 million;
* Intangible assets increased by R5,5 million;
* Deferred tax assets decreased by R0,2 million;
* Current assets increased by R81 000;
* Capital and reserves decreased by R0,4 million;
* Deferred tax liability increased by R5,8 million; and
* Trade and other payables increased by R0,5 million.
Restated Statement of Comprehensive Income for the six months ended
28 February 2015
* Depreciation and amortisation decreased by R0,5 million;
* Impairment of goodwill decreased by R4,8 million; and
* Taxation increased by R0,1 million.
Prospects
The South African economy remains stagnant. The impact felt on our
operations is mixed.
The Fuel segment is performing exceptionally well having bedded down the
ExxonMobil business and won new contract manufacturing customers. Volumes
are at record levels, while gross margin volatility brought about by
foreign exchange fluctuations has stabilised. Inventory levels continued
to be managed down. Fuel is on track to perform in line with full
year expectations.
The Power segment is proving to be challenging post load shedding. This
is not inconsistent with post the 2008 load shedding lull. Full year
performance will be dependent on winning certain large orders ahead of
the financial year end. Although Power is confident of winning these, there
is timing uncertainty.
The Wood segment continues to record buoyant equipment sales. The bi-annual
Austro exhibition takes place at the beginning of June which is expected
to provide a boost to equipment sales for the full year. Management are
focused on improving consumable sales to rebalance the revenue mix.
Wood is on track to perform in line with full year expectations.
Cost saving initiatives are being implemented across the Group wherever
possible given the current trading environment.
enX is focused on building an industrial energy company through its
Power and Fuel and Chemical segments. Consistent with this, enX announced
on 19 February 2016, that it has entered into an agreement to acquire all
the issued shares and shareholders claims against West African International
Proprietary Limited (“WAI”). WAI and its subsidiaries are leading
resellers and distributors of polymer, rubber, fillers and specialised
chemicals. One of WAI’s subsidiaries, African Group Lubricants Proprietary
Limited (“AGL”), of which WAI owns 62,4%, is the distributor of Caterpillar
oil lubricants (produced by ExxonMobil) to all Caterpillar dealerships
positioned in South Africa, Sub-Saharan Africa and the Indian Oceans
islands. The acquisition will bolster the size of enX’s Fuel and Chemical
cluster and allow enX to benefit from economies of scale, reduced “per unit”
operating costs and revenue synergies available by consolidating the
ExxonMobil distributorships of both businesses. A portion of the
funding raised through the empowerment transaction will be utilised to
part fund this acquisition. The board is working towards closing the
transaction by 30 June 2016.
Dividend
In line with group policy to reinvest for growth, no dividend has been
declared for the period.
Subsequent events
In terms of the management services agreement dated 18 April 2013 entered
into between enX and Wild Rose Management Proprietary Limited (“Wild Rose”),
Wild Rose was entitled to an additional management fee, structured
as a long-term incentive and referenced-off the appreciation in the company’s
share price over the period between 15 April 2013 and 31 December 2015 in
respect of a notional holding of 19,5 million enX shares. Paul Mansour,
Jarrod Friedman and Christian Neuberger (“the subscribers”), in their
capacity as shareholders of Wild Rose, became entitled to a portion of
the aforesaid management fee on terms and conditions agreed to between
themselves and Wild Rose. In order to increase their shareholding in enX
and to provide enX with additional capital for existing business operations
and to fund potential acquisitions, the subscribers used the majority of the
management fee received to subscribe for 7 629 694 enX shares at a price of
R2,29 per share for an aggregate amount of R17,5 million, effective 8 April 2016.
As per the SENS announcement released on 11 April 2016, enX has entered into
negotiations regarding certain potential acquisitions. As such, shareholders
were advised to exercise caution when dealing in their enX ordinary shares
until further announcements are made.
Basis of presentation
The unaudited interim results for the six months ended 29 February 2016 have
been prepared in accordance with International Financial Reporting Standards
(“IFRS”), and comply with IAS 34 – Interim Financial Reporting, the SAICA
Financial Reporting Guides as issued by the Accounting Practices Board
or its successor, the requirements of the Companies Act, No. 71 of 2008 of
South Africa and the Listings Requirements of the JSE Limited. The accounting
policies used in the preparation of the unaudited interim results for the
six months ended 29 February 2016, are consistent with those applied in the
audited financial statements for the year ended 31 August 2015.
During the current interim period the group adopted those standards and
interpretations in issue and effective for the interim period. The adopting
of these new and amended standards and interpretations has not had a
significant impact on the group’s adopted accounting policies.
These results have been compiled under the supervision of Jarrod
Friedman CA (SA), the outgoing financial director and Irwin
Lipworth CA (SA), the current financial director who was appointed
on 01 May 2016. The interim results have not been reviewed or reported
on by the group auditors, Grant Thornton Johannesburg Partnership.
For and on behalf of the board
PD Mansour IM Lipworth
Chief Executive Officer Financial Director
13 May 2016
Executive directors: PD Mansour (Chief Executive Officer), IM Lipworth
(Financial Director)
Non-executive directors: SB Joffe (Chairman), PC Baloyi (alternate
M Motjope), NV Lila*, PM Makwana (Lead Independent)*, PS O’Flaherty, AJ Phillips*
*Independent
Business and registered address: 202D, 11 Crescent Drive, Melrose Arch, 2196
Postal address: PO Box 1914, Florida, 1710
Company secretary: CIS Company Secretaries Proprietary Limited
Transfer secretaries: Computershare Investor Services Proprietary Limited
Sponsor: Java Capital
Date: 13/05/2016 07:05:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
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