Wrap Text
Provisional condensed consolidated results for the year ended 31 March 2016
DENEB INVESTMENTS LIMITED
Registration number: 2013/091290/06 (Incorporated in the Republic of South Africa)
JSE share code: DNB ISIN: ZAE000197398
Income tax registration number: 9844426156
("Deneb" or "the Group" or "the company")
PROVISIONAL CONDENSED CONSOLIDATED RESULTS FOR THE YEAR ENDED 31 MARCH 2016
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH
Reviewed Audited
Rand thousands 2016 2015
ASSETS
Non-current assets 1 689 141 1 723 603
Plant and equipment 312 861 312 365
Owner-occupied property 434 074 283 566
Investment property 737 507 766 804
Intangible assets 22 262 23 761
Goodwill 15 024 17 271
Other investments 3 391 3 644
Long-term receivables 74 093 182 040
Deferred tax assets 89 929 134 152
Current assets 1 452 849 1 310 204
Non-current assets held for sale 2 175 57 933
Inventories 683 732 610 214
Loan receivables 83 101 -
Trade and other receivables 654 396 640 855
Current tax assets 143 765
Cash and cash equivalents 29 302 437
Total assets 3 141 990 3 033 807
EQUITY AND LIABILITIES
Total equity 1 950 346 1 868 727
Stated capital 1 717 286 1 716 713
Reserves 232 477 154 266
Equity attributable to owners of the company 1 949 763 1 870 979
Non-controlling interest 583 (2 252)
Non-current liabilities 100 976 109 428
Deferred tax liabilities 5 160 3 009
Post-employment medical aid benefits 90 803 102 694
Interest-bearing liabilities 4 149 2 800
Operating lease accruals 864 925
Current liabilities 1 090 668 1 055 652
Current tax liabilities 1 821 868
Post-employment medical aid benefits 6 789 6 413
Interest-bearing liabilities 38 733 45 063
Trade and other payables 489 856 473 429
Provisions 5 705 -
Bank overdraft 547 764 529 879
Total liabilities 1 191 644 1 165 080
Total equity and liabilities 3 141 990 3 033 807
Net asset value 1 949 763 1 870 979
Net asset value per share (cents) 347 334
CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH
Reviewed Audited
Rand thousands Notes 2016 2015
Continuing operations
Revenue 2 715 640 2 665 399
Cost of sales (2 086 715) (2 059 555)
Gross profit 628 925 605 844
Other income 59 481 60 104
Selling and distribution expenses (326 839) (328 890)
Administrative and other expenses (228 476) (213 720)
Operating profit before impairments, restructuring
and revaluation of investment property 133 091 123 338
Revaluation of investment properties 30 648 70 187
Net (impairment)/impairment reversal of assets (2 248) 5 554
Restructuring and retrenchment expenses (5 953) -
Operating profit before finance costs 155 538 199 079
Finance income 10 174 11 271
Finance expenses (73 105) (58 158)
Profit before taxation 92 607 152 192
Income tax (expense)/income 6 (39 156) 72 405
Profit from continuing operations 53 451 224 597
Discontinued operations
Loss from discontinued operations, net of tax - (17 284)
Profit 53 451 207 313
Other comprehensive income, net of related tax
Items that will never be reclassified to profit or loss
Revaluation of land and buildings 34 841 7 095
Revaluation 44 927 8 428
Related tax (10 086) (1 333)
Post-employment medical aid benefits 10 359 (6 875)
Actuarial gain/(loss) 14 387 (9 549)
Related tax (4 028) 2 674
Items that are or may be reclassified to profit or loss
Fair value adjustment on available-for-sale financial assets (253) 3 370
Other comprehensive income, net of tax 44 947 3 590
Total comprehensive income for the year 98 398 210 903
Profit attributable to:
Owners of the company 56 722 208 750
Non-controlling interest (3 271) (1 437)
53 451 207 313
Total comprehensive income attributable to:
Owners of the company 101 669 212 340
Non-controlling interest (3 271) (1 437)
98 398 210 903
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 MARCH
Stated Retained
capital/ income/ Non-
Common Accumu- control-
control Other lated ling
Rand thousands capital reserves loss Total interest Total
Balance at
31 March 2014 1 496 346 321 342 (329 519) 1 488 169 - 1 488 169
Total
comprehensive
income - 10 465 201 875 212 340 (1 437) 210 903
Profit/(loss)
for the year - - 208 750 208 750 (1 437) 207 313
Other
comprehensive
income, net of tax - 10 465 (6 875) 3 590 - 3 590
Fair value
adjustment on
available-for-
sale financial
assets - 3 370 - 3 370 - 3 370
Revaluation of
land and
buildings - 7 095 - 7 095 - 7 095
Post-employment
medical aid
benefits
- actuarial loss - - (6 875) (6 875) - (6 875)
Transfers to other
reserves - (82 339) 82 339 - - -
Reclassification of
revaluation surplus - (82 339) 82 339 - - -
Transactions with
owners of the
company 220 367 - (49 897) 170 470 - 170 470
Loan
capitalisation 140 577 - - 140 577 - 140 577
Shares issued to
acquire entities
under common
control 50 029 - - 50 029 - 50 029
Share incentive
receivable
capitalised 24 532 - - 24 532 - 24 532
Share incentive
- expense - - (1 140) (1 140) - (1 140)
- recharge
revaluation - - (94) (94) - (94)
- options
exercised 5 229 - (5 229) - - -
Distribution - - (43 434) (43 434) - (43 434)
Changes in
ownership interest - - - - (815) (815)
Acquisition of
subsidiary with
non-controlling
interests - - - - (815) (815)
Balance at
31 March 2015 1 716 713 249 468 (95 202) 1 870 979 (2 252) 1 868 727
Stated Retained
capital/ income/ Non-
Common Accumu- control-
control Other lated ling
Rand thousands capital reserves loss Total interest Total
Balance at
31 March 2015 1 716 713 249 468 (95 202) 1 870 979 (2 252) 1 868 727
Total
comprehensive
income - 34 588 67 081 101 669 (3 271) 98 398
Profit/(loss)
for the year - - 56 722 56 722 (3 271) 53 451
Other comprehensive
income, net of tax - 34 588 10 359 44 947 - 44 947
Fair value
adjustment on
available-for-
sale financial
assets - (253) - (253) - (253)
Revaluation of
land and
buildings - 34 841 - 34 841 - 34 841
Post-employment
medical aid
benefits
- actuarial gain - - 10 359 10 359 - 10 359
Transfers to other
reserves - (41 057) 36 478 (4 579) - (4 579)
Capital gains tax
rate change - (4 579) - (4 579) (4 579)
Reclassification of
revaluation surplus - (36 478) 36 478 - - -
Transactions with
owners of the company 573 - (12 773) (12 200) - (12 200)
Share scheme
- expense - - 4 624 4 624 - 4 624
- options exercised 573 - (573) - - -
Distribution - - (16 824) (16 824) - (16 824)
Changes in ownership
interest - - (6 106) (6 106) 6 106 -
Acquisition of NCI
without a change
in control - - (6 106) (6 106) 6 106 -
Balance at
31 March 2016 1 717 286 242 999 (10 522) 1 949 763 583 1 950 346
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH
Reviewed Audited
Rand thousands 2016 2015
Net cash flows from operating activities 62 316 (154 832)
Cash generated from operating activities before working
capital changes 181 659 161 117
Cash outflow from working capital changes (47 881) (257 009)
Net finance cost (62 931) (46 887)
Taxes paid (8 531) (12 053)
Net cash flow from investing activities (29 531) (47 831)
Net cash flow from financing activities (21 805) 207 425
Net change in cash and cash equivalents 10 980 4 762
Cash and cash equivalents at beginning of the year (529 442) (534 204)
Cash and cash equivalents at end of the year (518 462) (529 442)
CONDENSED CONSOLIDATED SEGMENTAL REPORT FOR THE YEAR ENDED 31 MARCH
Operating
profit/
(loss)
Inter- before
Gross segment External finance Segment Segment
Rand thousands revenue revenue revenue costs assets liabilities
Reviewed
Year ended
31 March 2016
Continued
operations
Property 136 715 (39 003) 97 712 129 444 1 196 518 17 287
Branded product
distribution 1 401 039 (4 835) 1 396 204 1 743 899 392 266 633
Textiles 733 109 - 733 109 27 108 529 193 126 833
Industrials 488 505 - 488 505 36 638 304 198 81 303
Head office and
centralised
services 110 110 (39 395) 212 689 699 588
Total continued
operations 2 759 478 (43 838) 2 715 640 155 538 3 141 990 1 191 644
Total 2 759 478 (43 838) 2 715 640 155 538 3 141 990 1 191 644
Audited
Year ended
31 March 2015
Continued
operations
Property 129 114 (33 595) 95 519 153 082 1 129 952 15 219
Branded product
distribution 1 408 968 (863) 1 408 105 19 576 812 405 224 406
Textiles 718 310 (7 568) 710 742 40 614 521 469 150 593
Industrials 451 033 - 451 033 24 618 279 199 64 201
Head office and
centralised
services - - (38 811) 286 109 708 600
Total continued
operations 2 707 425 (42 026) 2 665 399 199 079 3 029 134 1 163 019
Discontinued
operations
Clothing 9 581 - 9 581 (17 284) 4 673 2 061
Total discontinued
operations 9 581 - 9 581 (17 284) 4 673 2 061
Total 2 717 006 (42 026) 2 674 980 181 795 3 033 807 1 165 080
STATISTICS PER SHARE FOR THE YEAR ENDED 31 MARCH
Reviewed Audited
2016 2015
Number of shares in issue ('000) 561 490 560 812
Weighted average number of shares in issue ('000) 561 207 547 315
Diluted weighted average number of shares in issue ('000) 562 263 553 242
Basic earnings (cents) 10,11 38,14
Continued operations 10,11 41,30
Discontinued operations - (3,16)
Headline earnings (cents) 8,07 27,55
Continued operations 8,07 30,35
Discontinued operations - (2,80)
Diluted earnings (cents) 10,09 37,74
Continued operations 10,09 40,86
Discontinued operations - (3,12)
Diluted headline earnings (cents) 8,05 27,26
Continued operations 8,05 30,03
Discontinued operations - (2,77)
Reconciliation between profit and headline earnings
(net of taxation)
Profit attributable to equity holders of the parent (R'000) 56 722 208 750
Impairment of assets (R'000) 2 248 7 102
Reversal of impairment of assets (R'000) - (9 195)
Remeasurement of investment property (R'000) (23 783) (56 449)
Changes in the deferred tax balance resulting from
the change in CGT rates that relates to previous
remeasurement of investment property (R'000) 10 040 -
Surplus on disposal of property, plant and equipment (R'000) (367) (253)
Loss on disposal of investment property (R'000) - 489
Loss on disposal of property, plant and equipment (R'000) 422 368
Headline earnings (R'000) 45 282 150 812
NOTES TO THE PROVISIONAL CONDENSED CONSOLIDATED RESULTS
FOR THE YEAR ENDED 31 MARCH 2016
1. BASIS OF PREPARATION
The provisional condensed consolidated financial statements are prepared in
accordance with the requirements of the JSE Limited Listings Requirements for
provisional reports and the requirements of the Companies Act of South Africa, as
amended. The Listings Requirements require provisional reports to be prepared in
accordance with the framework concepts and the measurement and recognition
requirements of International Financial Reporting Standards (IFRS) and the SAICA
Financial Reporting Guides as issued by the Accounting Practices Committee and
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 provisional
condensed consolidated financial statements are in terms of IFRS and are consistent
with those applied in the previous consolidated annual financial statements.
These results have been prepared under the supervision of the financial director,
Gys Wege CA(SA). The directors take responsibility for the preparation of this
report and that the information has been correctly extracted from the underlying
annual financial statements.
2. SIGNIFICANT ACCOUNTING POLICIES AND ESTIMATES
The accounting policies adopted in the preparation of the provisional condensed
consolidated financial statements are consistent with those followed in the
preparation of the Group's annual financial statements for the year ended
31 March 2015, except for the adoption of new standards and interpretations
effective as at 1 April 2015.
The new standards have no impact on the financial information.
3. REVIEW REPORT OF THE INDEPENDENT AUDITOR
These provisional condensed consolidated financial statements for the year
ended 31 March 2016 have been reviewed by KPMG Inc., who expressed an unmodified
review conclusion. The auditor's report does not necessarily report on all of
the information contained in this announcement. 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 review report
from the company's registered office together with the financial statements
identified in the auditor's report.
4. CAPITAL EXPENDITURE AND COMMITMENTS
Capital Contractual
expenditure commitments
Reviewed Audited Reviewed Audited
Rand thousands 2016 2015 2016 2015
Investment property 20 807 42 387 - 39 435
Land and buildings 27 778 - - -
Plant and equipment 36 979 57 189 140 -
Intangible assets 2 539 19 608 3 253 -
Business combinations - 1 400 - -
88 103 120 584 3 393 39 435
The capital commitments are expected to be incurred during the remainder of the
current financial year.
5. DILUTED WEIGHTED AVERAGE NUMBER OF SHARES
The difference between the weighted average number of shares and the diluted
weighted average number of shares is due to the impact of the unexercised options
under the Group's share incentive scheme.
6. TAXATION AND DEFERRED TAXATION
Reviewed Audited
Rand thousands 2016 2015
Income tax
South African normal taxation
- current (9 451) (12 914)
- prior year (654) 806
Deferred taxation (29 051) 84 513
(39 156) 72 405
Current movements recognised in profit and loss (29 051) 84 513
- rate changes (10 040) -
- capital allowances 16 270 (12 464)
- provision for post-employment medical aid benefits 804 587
- tax losses (utilised)/recognised (34 640) 115 526
- capital allowances on intangible asset 305 17
- shares and investments - 4 153
- revaluations (1 405) (4 937)
- share incentive scheme 751 (339)
- working capital differences (1 096) (18 030)
7. POST-PERIOD-END EVENTS
The Group has entered into an agreement in terms of which it will acquire the entire
issued share capital of Premier Rainwatergoods Proprietary Limited. The acquisition
is in line with the Group's growth strategy and will allow Deneb to deepen its
distribution channels within the industrial manufacturing segment. For further
information, refer to the SENS announcements dated 9 March 2016 and 24 May 2016.
8. DISTRIBUTION
The board has decided to postpone its consideration of a dividend until later in the
year (2015: 3 cents per ordinary share - the distribution was paid during the 2016
period).
9. FINANCIAL INSTRUMENTS
Carrying amounts and fair values
The following table shows the carrying amounts and fair values of financial assets
and financial liabilities, including their levels in the fair value hierarchy. It
does not include fair value information for financial assets and liabilities not
measured at fair value if the carrying amount is a reasonable approximation of fair
value.
Fair
value Measure
Loans through at
and profit or Available amortised
Rand thousands receivables loss for sale cost Total
2016
Financial assets measured
at fair value
Equity securities - - 3 391 - 3 391
Financial assets not
measured at fair value
Long-term receivables 74 093 - - - 74 093
Trade and other receivables 693 382 - - - 693 382
Cash and cash equivalents 29 302 - - 29 302
796 777 - 3 391 - 800 168
Financial liabilities
measured at fair value
Forward exchange contracts - (5 769) - - (5 769)
Financial liabilities not
measured at fair value
Instalment sale and finance
lease agreements - - - (5 147) (5 147)
Unsecured loans - - - (37 735) (37 735)
Trade and other payables - - - (478 187) (478 187)
Bank overdrafts - - - (547 764) (547 764)
- (5 769) - (1 068 833) (1 074 602)
2015
Financial assets measured
at fair value
Equity securities - 3 644 - 3 644
Forward exchange contracts - 3 670 - - 3 670
Financial assets not measured at
fair value
Long-term receivables 182 040 - - - 182 040
Trade and other receivables 604 152 - - - 604 152
Cash and cash equivalents 437 - - - 437
786 629 3 670 3 644 - 793 943
Financial liabilities
measured at fair value
Forward exchange contracts - (4 329) - - (4 329)
Financial liabilities not
measured at fair value
Instalment sale and finance
lease agreements - - - (4 481) (4 481)
Unsecured loans - - - (43 382) (43 382)
Trade and other receivables - - - (464 773) (464 773)
Bank overdrafts - - - (529 879) (529 879)
- (4 329) - (1 042 515) (1 046 844)
Level 1 Level 2 Level 3 Total
Rand thousands
2016
Financial assets measured at fair
value
Equity securities 365 3 026 - 3 391
Financial assets not measured at fair
value
Long-term receivables 74 093
Trade and other receivables 693 382
Cash and cash equivalents 29 302
365 3 026 - 800 168
Financial liabilities measured at fair
value
Forward exchange contracts - (5 769) - (5 769)
Financial liabilities not measured at
fair value
Instalment sale and finance lease
agreements (5 147)
Unsecured loans (37 735)
Trade and other payables (478 187)
Bank overdrafts (547 764)
- (5 769) - (1 074 602)
2015
Financial assets measured at fair
value
Equity securities 315 3 329 3 644
Forward exchange contracts - 3 670 - 3 670
Financial assets not measured at fair
value
Long-term receivables 182 040
Trade and other receivables 604 152
Cash and cash equivalents 437
315 6 999 - 793 943
Financial liabilities measured at fair
value
Forward exchange contracts - (4 329) - (4 329)
Financial liabilities not measured at
fair value
Instalment sale and finance lease agreements (4 481)
Unsecured loans (43 382)
Trade and other receivables (464 773)
Bank overdrafts (529 879)
- (4 329) - (1 046 844)
Measurement of fair values
The following tables show the valuation techniques used in measuring Level 2 fair
values for financial instruments measured at fair value in the statement of
financial position, as well as the significant unobservable inputs used.
Inter-relationship
between significant
Significant unobservable
Valuation unobservable inputs and fair
Type technique inputs value measurement
Equity securities Quoted prices Not applicable Not applicable
for the instrument
Forward exchange Forward pricing: Not applicable Not applicable
contracts The fair value is
determined using
quoted forward
exchange rates at
the reporting date
COMMENTARY
The Group recorded a total comprehensive income for the year of R98 million.
This is a decline of R113 million (53%) from the R211 million recorded in the
prior year. The main reason for the decline is that in the prior year a deferred
tax asset was recognised, resulting in a R72 million credit being recorded on the
taxation line. In the current year, a R39 million taxation charge was recorded,
a swing of R111 million.
More detailed analysis is provided in the segmental reporting below. However,
from an overall Group perspective, the following are the main points to note:
* Turnover is marginally up (1,9%), which reflects the difficult market
conditions within the industries that the Group serves. A small improvement
in gross margin saw gross profit climb by 3,8%, slightly ahead of the turnover
growth. The continued strong focus on cost control saw fixed cost increases
restricted to 2,3%. The overall effect is that operating profit before
impairments and revaluations was up 7,9% to R133 million.
* During the course of the year, certain Group companies tenanted the
Observatory property and this building was reclassified as an owner-occupied
property. This affected the comparability of the Group's results as the
R76 million upwards revaluation of the Group's property portfolio in the current
year was only slightly below the R79 million recognised in the prior period.
However, the portion of the revaluation relating to investment properties, and
thus recognised in the income statement, was R31 million in the current period
compared to R70 million in the prior period.
* The increase in finance costs is due to the prior period being lower than
normal as Deneb had short-term use of the cash raised in the Seardel rights
issue prior to unbundling.
* The high effective taxation rate at 42,3% is largely due to the change in the
capital gains tax rate and the resultant adjustments required to deferred
taxation.
The significant Rand weakness experienced during the year and the severe
volatility leading up to the busy Christmas and back-to-school period put
margins under pressure, particularly in the Branded Product distribution
segment. The industries that the Group primarily serves within the
manufacturing segments, namely, retail, automotive, mining, construction and
agriculture remained under pressure. These external factors are not once-off
events and are likely to recur at least in the short to medium term. We will
continue to focus on cutting out waste and gearing the Group to operate
effectively in lower margin environments.
It is important to note that the strong focus on costs does not restrict
spending on building future revenue streams and finding new distribution
channels. Indeed, in evaluating the results, consideration should be given to
the fact that there are a number of businesses that are either in a turnaround
or start-up phase. These businesses are being developed with an eye to the
future but are still loss-makers for now. Collectively, these loss-making
businesses were responsible for turnover of a little over R300 million and
recorded some R40 million in losses. We carry these losses as we believe that
these businesses will become contributors in time. However, should it be
necessary, the Group could exit from them with very limited effect on the
established businesses.
SEGMENTAL RESULTS
PROPERTY SEGMENT
The value of the Group's property portfolio increased by R66 million
(5,9%) to just over R1,17 billion. This growth incorporates R49 million
spent on acquisitions and development costs, R73 million of upwards revaluation,
offset by disposals totalling R55 million.
Revenue increased by 5,9% to R137 million with revenue from external tenants
representing 71% of the total revenue. Operating profit before finance costs
decreased by 15% to R129 million. However, during the period, the Observatory
property was reclassified from an investment property to an owner-occupied
property. This has affected the comparability of the results as although the
total upwards revaluation for the current year at R76 million is similar to
the R79 million recorded in the prior period, the revaluation that was recorded
in the segmental result was R31 million in the current period versus R70 million
in the prior period. If the property revaluations are excluded, operating profit
for the current year at R99 million was up 19% from the R83 million recorded in
the prior period.
We continue to evaluate potential acquisitions to augment our industrial
property portfolio. Seller's yield expectations have proved sticky in a
rising interest rate cycle. However, one of the advantages of being a diversified
Group is that we can remain patient and look to acquire value-enhancing properties
only if they meet our criteria.
BRANDED PRODUCT SEGMENT
Revenue for this segment was flat at R1,4 billion, however, operating profit
before finance costs declined to R2 million from R20 million in the prior period.
Three main issues affecting the performance of this segment are:
1. We have mentioned in the prior reports that we took a decision to invest
heavily in our office automation business, raising the cost base quite considerably.
This investment included strengthening the IT infrastructure, raising the profile
of the business through increased marketing spend and improving systems. The
investment in IT meant that we were effectively incurring double costs whilst the
new systems and processes were being developed. When the new systems become fully
operational, legacy costs from the old systems will reduce. To this end, included
in the current year's figures, is a R6 million restructuring provision. Once the
restructuring is completed, we anticipate annual savings in excess of R20 million,
which will start to be realised in the second half of the next financial year. The
investment and restructuring was necessary to allow the business to compete in an
increasingly competitive environment.
2. We are investing in a number of start-up businesses with a view to deepening
distribution channels. Although these businesses remain loss-making for now, we are
pleased with the progress being made.
3. The rapid depreciation of the Rand, particularly leading up to the busy Christmas
and back-to-school period, had quite a significant effect on realised margins.
If one excludes the losses being incurred implementing the turnaround strategies and
in the start-up businesses, this segment would have delivered an operating profit of
R45 million off a turnover of R1,1 billion. An operating margin of a little over 4%
in itself reflects some of the difficulties experienced with the Rand depreciation
and pressure facing consumers. It's not all down to external factors though, there
are improvements to be made in the established businesses and we are working on
improving efficiencies. We remain confident that the investments being made into
the loss-makers will deliver returns to shareholders in the future. This segment
remains a key growth area for the Group.
It's pleasing that, as anticipated in the prior year's report, Brand ID, which
was a start-up entity five years ago, has now become profitable.
INDUSTRIAL SEGMENT
The businesses within this sector interface with the retail, automotive,
agriculture, mining and construction industries. These sectors of our economy,
notably agriculture and mining, have been under severe pressure and volumes
supplied to many of our traditional customers have been lower year-on-year. It
is hence pleasing that, on the back of volumes from new customers, turnover
growth of 8,3% can be reported. The turnover growth, coupled with better margins
and tight cost control, saw operating profit improve by 48,8% to R37 million.
However, the prior-period result included an asset impairment of R3 million.
Adjusting for the impairment still sees operating profit improve by 30,7%.
It is encouraging that, despite the difficult environment, the hard work put into
these businesses by the respective management teams are starting to bear fruit.
We have recently announced the acquisition of a new business, Premier
Rainwatergoods Proprietary Limited, a manufacturer of gutters, downpipes and
roofing accessories, which will fit into this segment.
TEXTILE SEGMENT
Trading conditions for the businesses within this sector remain challenging.
The prior year's results included an impairment reversal of R13 million. If
one adjusts for this once-off event, operating profit declined by 2,6% to
R27 million. It is testament to the management teams within this sector that
small profits can be eked out of what are difficult businesses. The strategy
for this sector is one of containment whilst we look to transition the
businesses into higher margin areas. In this regard, good progress is being
made in some of the businesses.
On behalf of the board
Stuart Queen Gys Wege
Chief executive officer Financial director
Cape Town
25 May 2016
CORPORATE INFORMATION
Registered office:
5th Floor, Deneb House, cnr Main and Browning Roads, Observatory 7925,
Cape Town
PO Box 1585, Cape Town 8000
Directors:
J A Copelyn* (non-executive chairperson), M H Ahmed*^
(lead independent director), D Duncan, T G Govender*, L Govender*^,
N Jappie*^, A M Ntuli, S A Queen (chief executive officer), Y Shaik*,
R D Watson*^, G D T Wege (financial director)
(*Non-executive ^Independent)
Company secretary:
HCI Managerial Services Proprietary Limited
Transfer secretaries:
Computershare Investor Services Proprietary Limited, 70 Marshall Street,
Johannesburg 2001
PO Box 61051, Marshalltown 2107
Auditors:
KPMG Inc.
Sponsors:
PSG Capital Proprietary Limited
Date: 25/05/2016 09:30:00 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
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
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