Wrap Text
Reviewed Provisional Consolidated Results for the year ended 31 March 2016
Hosken Consolidated Investments Limited
Incorporated in the Republic of South Africa
Registration number: 1973/007111/06
Share code: HCI
ISIN: ZAE000003257
("HCI" or "the company" or "the group")
REVIEWED PROVISIONAL CONSOLIDATED RESULTS FOR THE YEAR ENDED 31 MARCH 2016
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Reviewed Audited* Audited
31 March 31 March 31 March
2016 2015 2014
R'000 R'000 R'000
ASSETS
Non-current assets 55 610 831 52 711 217 16 851 858
Property, plant and equipment 24 371 720 23 147 181 3 735 578
Investment properties 3 021 423 2 530 138 1 695 532
Goodwill 4 999 944 4 926 092 279 011
Interest in associates and joint ventures 1 453 268 1 336 564 9 974 196
Other financial assets 666 581 49 231 9 163
Intangibles 19 978 722 19 989 106 806 887
Deferred taxation 449 789 440 056 127 941
Operating lease equalisation asset 88 275 46 476 27 185
Long-term receivables 581 109 246 373 196 365
Current assets 8 850 081 8 964 849 4 935 432
Other 5 310 423 5 171 507 3 746 752
Bank balances and deposits 3 539 658 3 793 342 1 188 680
Disposal group assets held for sale 147 298 307 338 1 006 446
Total assets 64 608 210 61 983 404 22 793 736
EQUITY AND LIABILITIES
Equity 32 927 180 30 503 423 14 930 161
Equity attributable to equity holders
of the parent 16 539 747 14 950 989 12 094 478
Non-controlling interest 16 387 433 15 552 434 2 835 683
Non-current liabilities 21 482 544 21 502 570 3 407 985
Deferred taxation 8 135 293 7 854 042 277 439
Long-term borrowings 12 098 381 12 356 611 2 917 689
Operating lease equalisation liability 280 497 280 753 3 596
Other 968 373 1 011 164 209 261
Current liabilities 10 181 883 9 952 444 4 336 792
Disposal group liabilities held for sale 16 603 24 967 118 798
Total equity and liabilities 64 608 210 61 983 404 22 793 736
Net asset carrying value per share (cents) 15 887 14 370 11 391
* Restated
CONDENSED CONSOLIDATED INCOME STATEMENT
Reviewed Audited*
31 March 31 March
% 2016 2015
change R'000 R'000
Revenue 15 054 358 12 155 860
Net gaming win 8 527 895 5 101 290
Income 36.7% 23 582 253 17 257 150
Expenses (17 656 859) (13 148 772)
EBITDA 44.2% 5 925 394 4 108 378
Depreciation and amortisation (1 410 673) (1 007 748)
Operating profit 4 514 721 3 100 630
Investment income 207 469 82 478
Finance costs (1 366 128) (843 602)
Share of profits of associates and joint ventures 56 330 270 262
Gain on bargain purchase 4 630 -
Investment surplus 5 819 5 312
Fair value adjustment on associate on change of control (1 094) 2 757 227
Fair value adjustments of investment properties 149 791 155 753
Impairment reversals - 12 771
Asset impairments (149 238) (38 318)
Fair value adjustments of financial instruments (1 214) 7 868
Impairment of goodwill and investments (18 576) (9 358)
Profit before taxation (38.1%) 3 402 510 5 501 023
Taxation (1 162 354) (665 479)
Profit for the year from continuing operations 2 240 156 4 835 544
Discontinued operations (118 184) (379 954)
Profit for the year 2 121 972 4 455 590
Attributable to:
Equity holders of the parent 1 043 404 3 553 966
Non-controlling interest 1 078 568 901 624
2 121 972 4 455 590
* Restated
CONDENSED CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME
Reviewed Audited*
31 March 31 March
2016 2015
R'000 R'000
Profit for the year 2 121 972 4 455 590
Other comprehensive income:
Items that may be reclassified subsequently to profit or loss
Foreign currency translation differences 525 122 125 457
Cash flow hedge reserve 116 438 (79 099)
Items that may not be reclassified subsequently to profit or loss
Actuarial gains on post-employment benefit liability 34 236 (15 235)
Total comprehensive income 2 797 768 4 486 713
Attributable to:
Equity holders of the parent 1 515 368 3 571 631
Non-controlling interest 1 282 400 915 082
2 797 768 4 486 713
* Restated
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Reviewed Audited
31 March 31 March
2016 2015
R'000 R'000
Balance at the beginning of the year* 30 503 423 14 930 161
Share capital and premium
Treasury shares released 44 709 62 301
Shares repurchased (35 767) (419 557)
Current operations
Total comprehensive income* 2 797 768 4 486 713
Equity-settled share-based payments 11 689 11 495
Non-controlling interest on acquisition of subsidiaries* (2 523) 11 953 752
Effects of changes in holding 276 906 513 147
Dividends (669 025) (1 034 589)
Balance at the end of the year 32 927 180 30 503 423
* Restated
RECONCILIATION OF HEADLINE EARNINGS
Reviewed period ended Audited year ended
31 March 2016 31 March 2015*
% Gross Net Gross Net
change R'000 R'000 R'000 R'000
Earnings attributable to equity holders
of the parent (70.6%) - 1 043 404 - 3 553 966
IFRS 3 gain on bargain purchase (4 630) (4 630) - -
IFRS 3 fair value adjustment on deemed disposal of associate - - (2 757 227) (2 738 733)
IFRS 3 impairment of goodwill 18 176 9 106 49 603 20 665
IFRS 10 fair value adjustment of remaining investment 2 811 1 324 - -
IAS 12 change in tax rate 16 670 11 491 - -
IAS 16 gains on disposal of property (3 541) (2 748) - -
IAS 16 losses on disposal of plant and equipment 3 478 1 966 269 10
IAS 16 impairment of plant and equipment 25 386 8 937 40 962 16 573
IAS 21 foreign currency translation reserve recycled (11 600) (5 094) - -
IAS 27 losses from disposal/part disposal of subsidiary 6 781 3 532 181 207 181 207
IAS 28 gain on disposal of associates and joint ventures (6 661) (3 550) (17 519) (7 298)
IAS 28 impairment of associates and joint ventures 400 92 34 059 21 650
IAS 28 recycle reserves upon disposal of JV (6 856) (6 856) - -
IAS 36 impairment of assets 2 154 769 - -
IAS 36 reversal of impairment of assets - - (12 771) (5 900)
IAS 38 losses on disposal of intangible assets 254 101 - -
IAS 38 impairment of intangible assets 132 365 56 218 - -
IAS 39 impairment of investments reclassified to profit and loss - - 14 608 14 608
IAS 40 losses on disposal of investment property - - 386 312
IAS 40 fair value adjustment to investment property (149 773) (71 880) (155 753) (74 036)
Remeasurements included in equity-accounted earnings of
associates and joint ventures 2 295 2 295 17 166 17 166
Headline profit 4.4% 1 044 477 1 000 190
Basic earnings per share (cents)
Earnings (70.2%) 1 001.66 3 361.55
Continuing operations 1 051.48 3 663.49
Discontinued operations (49.82) (301.94)
Headline earnings 6.0% 1 002.69 946.04
Continuing operations 1 013.13 1 036.31
Discontinued operations (10.44) (90.27)
Weighted average number of shares in issue ('000) 104 167 105 724
Actual number of share in issue at the end of the year
(net of treasury shares) ('000) 104 110 104 041
Diluted earnings per share (cents)
Earnings (70.1%) 990.42 3 310.20
Continuing operations 1 039.68 3 607.53
Discontinued operations (49.26) (297.33)
Headline earnings 6.4% 991.44 931.59
Continuing operations 1 001.76 1 020.49
Discontinued operations (10.32) (88.89)
Weighted average number of shares in issue ('000) 105 350 107 364
* Restated
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
Reviewed Audited
31 March 31 March
2016 2015
R'000 R'000
Cash flows from operating activities 3 290 204 1 153 239
Cash flows from investing activities (3 297 342) (2 575 096)
Cash flows from financing activities (235 394) 1 579 332
(Decrease)/increase in cash and cash equivalents (242 532) 157 475
Cash and cash equivalents
At the beginning of the year 709 231 574 386
Foreign exchange differences 53 733 (22 630)
At the end of the year 520 432 709 231
Bank balances and deposits 3 539 658 3 793 342
Bank overdrafts (3 058 696) (3 102 514)
Cash in disposal groups held for sale 39 470 18 403
Cash and cash equivalents 520 432 709 231
SEGMENTAL ANALYSIS
Net gaming Net gaming
Revenue win Revenue win
31 March 31 March 31 March 31 March
2016 2016 2015* 2015*
R'000 R'000 R'000 R'000
Media and broadcasting 2 531 580 - 2 483 363 -
Non-casino gaming 89 843 1 166 767 82 566 999 695
Casino gaming and hotels 4 921 450 7 361 128 2 720 404 4 101 595
Information technology 341 317 - 312 625 -
Transport 1 509 919 - 1 417 136 -
Vehicle component manufacture 296 575 - 328 227 -
Beverages 1 224 214 - 1 155 385 -
Properties 262 255 - 161 979 -
Mining 817 497 - 830 813 -
Branded products and
manufacturing 2 714 260 - 2 661 837 -
Other 345 448 - 1 525 -
Total 15 054 358 8 527 895 12 155 860 5 101 290
* Restated
EBITDA
31 March 31 March
2016 2015*
R'000 R'000
Media and broadcasting 466 748 610 956
Non-casino gaming 360 309 276 872
Casino gaming and hotels 4 217 235 2 427 837
Information technology 64 823 62 054
Transport 376 014 324 719
Vehicle component manufacture 25 948 24 946
Beverages 67 345 92 152
Properties 147 411 116 609
Mining 114 108 138 390
Branded products and manufacturing 169 925 164 735
Other (84 472) (130 892)
Total 5 925 394 4 108 378
* Restated
Profit before tax
31 March 31 March
2016 2015*
R'000 R'000
Media and broadcasting 251 376 475 796
Non-casino gaming 172 671 137 869
Casino gaming and hotels 2 499 137 4 457 360
Information technology 45 866 44 019
Transport 268 286 233 618
Vehicle component manufacture 6 646 10 406
Beverages 34 969 61 678
Properties 190 051 143 519
Mining 37 919 15 031
Branded products and manufacturing 95 032 152 702
Other (199 443) (230 975)
Total 3 402 510 5 501 023
* Restated
Headline earnings
31 March 31 March
2016 2015*
R'000 R'000
Media and broadcasting 73 280 121 865
Non-casino gaming 77 513 62 479
Casino gaming and hotels 812 360 747 746
Information technology 15 902 15 189
Transport 185 952 161 123
Vehicle component manufacture 7 132 10 822
Beverages 8 671 14 021
Properties 45 497 36 958
Mining 27 931 14 530
Natural gas - (59 796)
Branded products and manufacturing 25 783 94 540
Other (235 544) (219 287)
Total 1 044 477 1 000 190
* Restated
NOTES AND COMMENTARY
BASIS OF PREPARATION AND ACCOUNTING POLICIES
The results for the year ended 31 March 2016 have been prepared in accordance with
International Financial Reporting Standards (IFRS), the disclosure requirements of IAS 34,
the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee,
the requirements of the South African Companies Act, 2008, and the Listings Requirements
of the JSE Limited. The accounting policies applied by the group in the preparation of
these condensed consolidated financial statements are consistent with those applied by
the group in its consolidated financial statements for the year ended 31 March 2015.
As required by the JSE Limited Listings Requirements, the group reports headline earnings
in accordance with Circular 2/2015: Headline Earnings as issued by the South African
Institute of Chartered Accountants.
These financial statements were prepared under the supervision of the financial director,
Mr TG Govender, B.Compt (Hons).
RESTATEMENT OF PRIOR YEAR RESULTS
During August 2014 Tsogo Sun Holdings Limited (Tsogo Sun) repurchased 134 million of its
issued ordinary shares from SABSA Holdings Proprietary Limited, a subsidiary of
SABMiller plc. It was determined that, in terms of IFRS, the group acquired effective
control over the business of Tsogo Sun after the sale of shares by SABMiller and that it
would be appropriate to consolidate the results of Tsogo Sun with effect from the
repurchase date, whereas it had been equity accounted prior to that.
The "acquisition" qualified as a business combination in terms of IFRS 3: Business
Combinations. The results as at 31 March 2015 were determined based on all information
available at the acquisition date ("provisional accounting"). The provisional accounting
was adjusted in the current year for new information obtained within a time frame of
12 months after the acquisition date. These adjustments to the fair values determined in
the provisional purchase price allocation are treated as adjustments to the comparative
results as at 31 March 2015.
The comparative results are restated as follows:
Income statement for the year ended 31 March 2015:
Depreciation and amortisation increased by R60 million
Taxation decreased by R17 million
Earnings attributable to non-controlling interest decreased by R23 million
Statement of financial position as at 31 March 2015:
Property, plant and equipment increased by R5 666 million
Investment properties increased by R24 million
Goodwill decreased by R7 122 million
Intangible assets increased by R14 728 million
Deferred tax liability increased by R5 630 million
Equity attributable to equity holders of the parent decreased by R21 million
Equity attributable to non-controlling interest increased by R7 687 million
Opening equity attributable to equity holders of the parent in the current year decreased
by R21 million.
DISCONTINUED OPERATIONS AND DISPOSAL GROUPS HELD FOR SALE
The group's previous natural gas interests were unbundled in December 2014 and its results
are contained in discontinued operations in the income statement in the prior year.
Deneb Investments discontinued the operations of its discount retail operations in the prior
financial year and the results of these operations, as contained in the branded products
and manufacturing segment, are contained in discontinued operations in the prior year.
The remaining assets of its discontinued apparel manufacturing business of R2 million
(2015: R58 million) is contained in disposal groups held for sale in the statement of
financial position in the current and prior year.
The Board of eMedia Investments resolved to exit certain of its offshore and local non-core
operations during the prior financial year. Further local non-core operations have been
reclassified to discontinued operations in the current year and the prior results restated
for these. The results of these operations are included in the media and broadcasting segment
and are included in discontinued operations in the current and prior year and its assets of
R145 million (2015: R249 million) and liabilities of R17 million (2015: R25 million) in
disposal groups held for sale in the statement of financial position in the current and
prior year.
BUSINESS COMBINATIONS
Casino gaming and hotels
Effective 1 March 2016 the group acquired 100% of the shares in Majormatic 194 Proprietary
Limited and management contracts relating to the Holiday Inn Sandton and the Crowne Plaza
Rosebank hotels for cash consideration of R15 million. No goodwill arose on the transaction.
The allocation of purchase price to assets and liabilities has been finalised.
Media and broadcasting
The group acquired 100% of the shares in Moonlighting Films Proprietary Limited effective
15 December 2015. The purchase consideration was R15 million, settled in cash, for 51% plus
further contingent consideration of R32 million for the remaining 49%, payable in June 2018
and June 2021. The purchase price allocation has been finalised and goodwill of R47 million
was recognised upon acquisition.
Properties
Effective 1 March 2016 the group acquired 100% of the shares in Atterbell Investments
Proprietary Limited for a cash consideration of R8 million. Atterbell operates the exhibition
business housed at Gallagher Estate in Midrand. A gain on bargain purchase of R5 million
arose on acquisition, for which the purchase price allocation has been finalised.
RESULTS
GROUP INCOME STATEMENT AND SEGMENTAL ANALYSIS
- The group income statement in the prior year contains five months of equity-accounted earnings
from Tsogo Sun and seven months' consolidated results due to the "acquisition" of this
entity being effective end of August 2014.
- Revenue, including net gaming win, increased by 36.7%. Excluding Tsogo Sun, revenue increased
by 8.3%.
- EBITDA for the group increased by 44.2%. Excluding Tsogo Sun, EBITDA increased by 1.6%.
- Profit before tax decreased by 38.1%. Excluding Tsogo Sun, profit before tax decreased by 13.4%.
- Headline earnings increased by 4.4%. Excluding the impact of loan impairments at head office
and eMedia, respectively, and the change in inclusion rate for tax on capital gains in respect
of fair value adjustments upon the recognition of business combinations relating to Tsogo Sun,
headline earnings increased by 16.7%.
Media and broadcasting
Revenue in respect of media and broadcasting includes revenue of R2 431 million from eMedia
and R100 million contributed by Sunshine Coast Broadcasters in Australia. eMedia recorded an
increase in revenue of 1% against the backdrop of a 7% decrease in net advertising revenue.
New scheduling and programming since March 2015 have led to the regaining of lost market share,
but increased advertising revenue is yet to occur. Subscription and facility revenue continued
to increase. EBITDA in respect of eMedia decreased by R149 million and includes losses relating
to the multi-channel businesses in the amount of R262 million. A reduction of profits from e.tv
followed a reduction in advertising revenue and increased schedule costs. Sunshine Coast
Broadcasters' EBITDA increased by 29%, mainly due to currency depreciation. Profit before tax
for media and broadcasting includes a R122 million impairment of intangible assets in eMedia's
offshore operations and a R50 million impairment of loan receivable from the purchaser of
The Africa Channel. The latter item was not excluded from headline earnings and resulted in an
impact of R22 million.
Non-casino gaming
Net gaming win from non-casino gaming increased by 17% as a result of Vukani Gaming's growth
of 11% and other gaming growth of 31%. The number of active limited payout machines in Vukani
have increased to 5 265 and average GGR per machine by 3.7% to R18 492. The number of electronic
bingo terminals operated by Galaxy Bingo as at reporting date were 1 642. EBITDA increased by 30%
following gains of 12% in Vukani Gaming and 88% in other gaming operations. Non-casino gaming's
profit before tax increased by 25%, subsequent to an increase of R34 million in depreciation.
Casino gaming and hotels
Revenue in respect of casino gaming and hotels was recognised for seven months only in the prior
year as compared to the whole current year. The result was an increase in revenue and net gaming
win combined of R5 461 million in the current year. EBITDA is not comparable due to its inclusion
for only seven months in the prior year. The contribution to profit before tax decreased by 44%
to R2 499 million. A fair value adjustment to the investment in associate of R2 757 million was
recognised prior to the consolidation of Tsogo Sun in the prior year. Due to the equity accounting
of Tsogo Sun for five months in the prior year the profit before tax is also not comparable to the
current year. Casino gaming and hotels' contribution to the group's headline earnings showed an
increase of 9%. Included in Tsogo Sun's headline earnings in the prior year was a R118 million
share-based payment expense, which did not recur and which impacted its contribution to the group's
earnings by R49 million. It is important to note that the final purchase price allocation in
respect of the Tsogo Sun acquisition has given rise to additional depreciation and amortisation,
reducing contributed headline earnings by R25 million in the current year, as opposed to R21 million
in the prior year. Furthermore, the change in inclusion rate for tax on capital gains, as announced
by the Minister of Finance in his budget address in February 2016, resulted in an additional
deferred taxation charge of R34 million in respect of the group's interest in Tsogo Sun. This
additional charge has not been excluded from headline earnings. Contributing to increased earnings
is the closure for renovation of certain hotels and the Silverstar Casino during the prior year.
Information technology
Revenue from information technology increased mainly as a result of increased collection rates on
the City of Cape Town contract and sales of traffic control equipment. Lower margins on the latter
resulted in modest growth in EBITDA and profit before tax.
Transport
Transport managed to increase revenue by 7%, with reduced passenger numbers experienced compared
to the prior year. New routes have generated additional revenue. EBITDA increased by 16%, mainly
as a result of lower fuel prices and aided by reduced overhead spend.
Vehicle component manufacture
Revenue from vehicle component manufacturing was under pressure due to a number of supply programmes
in the pressings business coming to an end. The prior year curtailment of loss-making product
lines and improved cost controls have resulted in EBITDA growth of 4% in the current year.
Beverages
Revenue increased by 6% following an increase of 13% in wine sales. This increase was off-set to
an extent by a decrease of 18% in brandy sales. EBITDA and profit before tax decreased by 27%
and 43%, respectively, following the recognition of R40 million in foreign exchange losses
(R31 million gains in the prior year).
Properties
Revenue increased by 62% due to additional revenue from new properties in Midrand and Pretoria,
and assisted by the acquisition of the exhibition business at Gallagher Estate. Profit before
tax includes fair value adjustments of R119 million (2015: R74 million), mostly attributable
to The Point in Sea Point. Headline earnings was significantly impacted by additional finance
costs of R25 million.
Mining
Reduced revenue at the Palesa Colliery was off-set by increased revenue at the Mbali Colliery.
Sales volumes at Palesa reduced by 12% following increased stockpile failures during the first
half of the year. Sales volumes at Mbali increased by 11%. EBITDA decreased by 18%, mainly as
a result of the cost of reworking failed stockpiles and additional mining costs associated with
coal quality issues encountered in the pit at Palesa Colliery during the first half of the year.
Profit before tax increased following a decrease in capitalised box cut depreciation of
R57 million at the Mbali colliery.
Branded products and manufacturing
Revenue increased by 2%, with growth attributable to manufacturing operations. EBITDA from
continuing operations increased by 3%. Increased margins in the manufacturing businesses aided
this increase. The decrease of 38% in profit before tax can be significantly attributed to a
reduced fair value adjustment on investment properties (less R40 million). Contribution to
headline earnings decreased by R69 million due to taxation income of R72 million in the prior
year reversing to a R39 million expense in the current year.
Other
Revenue of R343 million was recorded in respect of Crimsafe in Australia, which was acquired
effective 31 March 2015. EBITDA losses from other reduced by R46 million, significantly the
result of prior year losses of R12 million for non-media Australian operations reversing to
profits of R32 million in the current year. The loss before tax was significantly impacted
by R105 million in investment income earned on the Ithuba funding arrangements for the first
time in the current year and the increased profitability of the group's Australian operations.
These were off-set by a loan receivable of R65 million being impaired at head office and head
office finance costs increasing by R46 million following increased utilisation of debt
facilities. Loss before tax in the current year includes the Ithuba investment income,
Australian operations' non-media profit of R37 million, R17 million equity-accounted losses
in respect of Impact Oil and Gas, R165 million head office finance costs, R65 million in
respect of the previously mentioned loan impairment and head office overheads of the company
and Niveus Investments.
Notable items on the consolidated income statement include:
Discontinued operations in the current year consist of the offshore operations of eMedia.
Losses of R118 million (2015: R117 million) include an amount of R122 million in respect of the
impairment of intangible assets. Losses of R243 million in the prior year related to the natural
gas business, with no results recognised in the current year.
Finance costs increased significantly as a result of an increase of R390 million in finance costs
consolidated for Tsogo Sun, compared to the seven months previously consolidated. As stated above,
head office finance costs increased by R46 million and HCI Properties' finance costs by R25 million.
Profit from associates and joint ventures are not comparable to the prior period due to Tsogo Sun
being consolidated from September 2014. The amount includes R12 million from Baycorp Holdings,
R12 million from Cohort in Australia, R24 million from Redefine BDL Hotel Group and R17 million
in losses from Impact Oil and Gas. Fair value adjustments on investment properties include
R119 million by HCI Properties and R31 million by Deneb Investments. Asset impairments consist of
the R65 million loan impairment at head office, R50 million loan impairment reported in eMedia
and various property, plant and equipment impairments throughout the group. Taxation increased as
a result of the consolidated results of Tsogo Sun being included for the whole current year and the
reversal of the prior year taxation income in Deneb Investments to an expense in the current year.
Non-controlling interests' share of earnings increased as a result of the consolidation of results
of Tsogo Sun for the whole current year. This was off-set to an extent by reduced profitability
in eMedia Holdings and Deneb Investments.
GROUP STATEMENT OF FINANCIAL POSITION AND CASH FLOW
As set out above, the statement of financial position changed significantly with the final purchase
price allocation in respect of the Tsogo Sun acquisition. The restatement of property, plant and
equipment relates to land and buildings. The restatement of intangible assets relates to gaming
licences and brands.
Group long-term borrowings at 31 March 2016 comprise central borrowings of R1 629 million, central
investment property-related borrowings of R1 135 million, borrowings in Tsogo Sun of R8 346 million
and the remainder in other operating subsidiaries. Included in current liabilities is R656 million
owing to SACTWU, being part of their proportionate non-controlling share in eMedia Holdings, and
R1 381 million in short-term borrowings in Tsogo Sun. Bank overdraft facilities of R3 059 million,
of which R2 013 million in Tsogo Sun, are also included in current liabilities.
The statement of cash flows includes Tsogo Sun for the whole current year as opposed to seven months
in the prior year. The group invested R2 152 million in property, plant and equipment and R504 million
in investment properties. R299 million was invested in associate and joint venture entities.
Net borrowings of R226 million were repaid during the year.
Shareholders are referred to the individually published results of eMedia Holdings Limited,
Tsogo Sun Holdings Limited, Niveus Investments Limited and Deneb Investments Limited for further
commentary on the media and broadcasting, casino gaming and hotels, non-casino gaming, beverages,
and branded products and manufacturing operations.
AUDITOR'S REVIEW
These condensed consolidated financial statements for the year ended 31 March 2016 have been reviewed
by Grant Thornton Johannesburg Partnership, who expressed an unmodified review conclusion. A copy of the
auditor's review report is available for inspection at the company's registered office together with the
financial statements identified in the auditor's report.
The auditor's report does not necessarily report on all of the information contained in this
announcement/financial 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 issuer's registered office.
CHANGES IN DIRECTORATE
Mr VE Mphande was appointed as independent non-executive chairman with effect from 27 August 2015.
Mr LW Maasdorp resigned as an independent non-executive director with effect from 31 March 2016.
DIVIDEND TO SHAREHOLDERS
The directors of HCI have resolved to declare a final ordinary dividend number 53 of 150 cents (gross)
per HCI share for the year ended 31 March 2016 from income reserves. The salient dates for the payment
of the dividend are as follows:
Last day to trade cum dividend Friday, 17 June 2016
Commence trading ex dividend Monday, 20 June 2016
Record date Friday, 24 June 2016
Payment date Monday, 27 June 2016
No share certificates may be dematerialised or rematerialised between Monday, 20 June 2016 and Friday,
24 June 2016, both dates inclusive.
In terms of legislation applicable to Dividends Tax (DT) the following additional information is disclosed:
- The local DT rate is 15%.
- The number of ordinary shares in issue at the date of this declaration is 105 198 669.
- The DT amounts to 22.50 cents per share.
- The net local dividend amount is 127.50 cents per share for all shareholders who are not exempt from the DT.
- Hosken Consolidated Investments Limited's income tax reference number is 9050/177/71/7.
In terms of the DT legislation, any DT amount due will be withheld and paid over to the South African
Revenue Service by a nominee company, stockbroker or Central Securities Depository Participant
(collectively, regulated intermediary) on behalf of shareholders. All shareholders should declare their
status to their regulated intermediary as they may qualify for a reduced DT rate or exemption.
For and on behalf of the board of directors
JA Copelyn TG Govender
Chief Executive Officer Financial Director
Cape Town
25 May 2016
Directors: JA Copelyn (Chief Executive Officer), TG Govender (Financial Director), Y Shaik, MF Magugu*,
ML Molefi*, VE Mphande* (Chairman), JG Ngcobo*, R Watson*
*Independent non-executive
Website address: www.hci.co.za
Company registration number: 1973/007111/06
Share code: HCI
ISIN: ZAE000003257
Company secretary: HCI Managerial Services Proprietary Limited
Registered office: 5th Floor, 4 Stirling Street, Zonnebloem, Cape Town, 7925
PO Box 5251, Cape Town, 8000
Telephone: 021 481 7560
Telefax: 021 434 1539
Auditors:
Grant Thornton Johannesburg Partnership
@Grant Thornton, Wanders Office Park, 52 Corlett Drive, Illovo, 2196
Private Bag X10046, Sandton, 2146
Bankers:
First National Bank of Southern Africa Limited
Transfer secretaries:
Computershare Investor Services Proprietary Limited
70 Marshall Street, Johannesburg, 2001.
PO Box 61051, Marshalltown, 2107
Sponsor:
Investec Bank Limited
100 Grayston Drive, Sandton, Sandown, 2196
Date: 25/05/2016 05:40:00 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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