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Group annual results for the year ended 30 June 2016 and cash dividend declaration
ADCOCK INGRAM HOLDINGS LIMITED
Incorporated in the Republic of South Africa
(Registration number 2007/016236/06)
Income tax number 9528/919/15/3
Share code: AIP ISIN: ZAE000123436
("Adcock Ingram" or "the Company")
GROUP ANNUAL RESULTS FOR THE YEAR ENDED 30 JUNE 2016 AND CASH DIVIDEND DECLARATION
SALIENT FEATURES – CONTINUING OPERATIONS
Turnover increase of 7.5% to R5,546 million
Trading profit increase of 16.9% to R606 million
Normalised headline earnings per share up by 20.1%
Dividend declared: 54 cents per share
Net debt reduced by R466 million
INTRODUCTION
It is common cause that Adcock Ingram has been in remedial mode for at least the past two years. It is therefore with a sense of pride and
pleasure, that the Board of Directors (Board) can advise shareholders of the Group's satisfying progress this past year, not only on economic
and operational matters, but more especially on customer service levels and customer relationship management. The Group audited results
for the year ended 30 June 2016 which follow, will reveal the continuing positive trend of performance since the reorganisation of the business
was commenced during June 2014. This progress is further evidenced by the cash generation over the two-year period which resulted in
net debt for total operations reducing from R1,082 million to R217 million. In addition, the Group has posted impressive market share gains in
many of its premier products, these statistics continually being measured in IMS and Nielsen rating analyses.
Notwithstanding the more aggressive marketing effort during the year, the business, like others, has had to endure an unstable economy, often
punctuated by discordant politics and volatile currency conversion rates. These dynamics tend to introduce additional costs into the business
and given the restrictive regulatory pricing regimes to which the Company is bound, such disruptive circumstances generally prevent the
Company from adjusting product prices to recoup the unplanned costs incurred. In the circumstances, each of the Company's business units
has performed extremely well.
FINANCIAL PERFORMANCE OF CONTINUING OPERATIONS
Turnover and Profits
Turnover increased by R387 million to R5,546 million, compared to the previous year and all business units recorded improvements in turnover.
Volume increases were also encouraging, but the benefits of these increased volumes were partly offset by the discontinuation of certain
uneconomic product lines in the Consumer Division, and the repatriation of some MNC business in the Prescription Division.
The impact of a beneficial sales mix, combined with increased production throughput and generally improved factory efficiencies, also partly
mitigated the cost impact arising through adverse currency conversion rates. The gross profit percentage maintained a satisfactory level,
marginally improving from 36.3% in 2015 to 36.6% in the year under review.
Operating expenses were well controlled and increased by only 5%, resulting in a 16.9% improvement in trading profit to R606 million
(2015: R518 million).
Non-trading expenses
Non-trading expenses totalling R52.4 million during the year, include share-based payments of R39.9 million of which R20.8 million relates to
a once-off IFRS 2 charge, arising through the introduction of the July 2015 B-BBEE scheme.
Tax and headline earnings
The high effective tax rate for the year under review is a consequence of certain expenditure being non-deductible for tax purposes and
various audits of prior years' being finalised.
Headline earnings from continuing operations for the year increased to R376.4 million (2015: R335.5 million). This translates into headline
earnings per share from continuing operations of 226.1 cents (2015: 198.7 cents). Normalised headline earnings per share from continuing
operations increased by 20.1% to 238.6 cents, this after adding back the non-recurring IFRS 2 charge referred to above.
Cash flows
Cash generated from operations was R941.1 million (2015: R598.1 million), supported by a decrease in working capital of R113.8 million
(June 2015: increase of R126.4 million). This important indicator starts to convey the positive outcomes of the Group restructure and the
advantages of restored management control. The cash flow improvement has enabled the Group to reduce net debt in continuing operations from
R777 million to R311 million at the end of the financial year.
Dividend distribution
We are pleased to report that the Board has declared a final dividend of 54 cents per share for the year ended 30 June 2016 out of income
reserves. Total dividend distributions for the year will therefore be 104 cents per share an increase of 28% compared to 2015. This distribution
is in line with the Company's policy of covering dividends 2 - 3 times by headline earnings.
BUSINESS OVERVIEW
Southern Africa
This segment encompasses all of the business units in the Southern African region (excluding Datlabs in Zimbabwe), namely, OTC, Prescription,
Consumer and Hospital.
OTC turnover improved by 14.7% ahead of the prior year, substantially triggered by greater volume demand in Adco-Dol, Corenza C, Allergex,
and Citro-Soda, each of which generated revenues in excess of R100 million. This business unit, which focuses on products for pain, colds and
flu, and anti-histamine therapeutic areas through the "pharmacy" channel, posted growth well ahead of the market as measured by IMS. The
gross margin deteriorated due to the exchange rate. Operating expenses were well controlled resulting in a trading profit increase of 18.9%.
Trading profit in the Prescription division increased by 15.8% to R171 million. A strong performance was recorded by the ARV portfolio into the
private sector, partly aided by an increase in the SEP. This advantage was partly affected by the repatriation of certain products to multinational
partners and a slight reduction in Generic sales. Leadership and certain structural changes were effected in the generics business during
the year to optimise operations and the recent IMS view confirms that the division's generic products are tending to outgrow the market,
with good availability of inventory. The gross margin in Prescription improved marginally in the current year largely through lower inventory
impairments and an improved sales mix. Despite inflationary increases and salary adjustments, operating expenses were well controlled,
resulting in the increased trading profit as aforesaid.
Compared to 2015, Consumer turnover increased during the year by R34 million to R663 million. Notwithstanding a challenging economic
environment, where discretionary spend was under pressure, the division's top brands, including Panado, Bioplus, Compral, Cepacol and
Gynaguard, all posted satisfactory growth. Certain marginal product lines in this Division were discontinued, and this, together with better
controls and lower inventory impairments, contributed to a reasonable expansion in the gross margin in this year. Operating expenses
increased by 12.2%, as more aggressive marketing costs were incurred as well as increased regulatory and compliance costs. Trading profit
improved by 14% to R90.5 million (2015: R79.3 million).
In an increasingly competitive environment, Hospital turnover nevertheless increased by 8.9% to R1,227 million. This was partly due to the
SEP increase and welcome volume improvement. Medicine delivery sales, more specifically, large-volume parenterals were the biggest
contributor to this improvement. The gross margin however, dropped in 2016, mainly the result of adverse currency exchange rates. Trading
profit increased by 7.1% to R35.1 million.
Rest of Africa and India
The Group's controlling interests in both the Ghanaian and Indian operating businesses are reflected as assets held-for-sale at 30 June 2016. The
sale processes in each case have progressed substantially and shareholders will be timeously advised should these transactions be concluded.
These operations are reflected in the financial statements as discontinued operations. Both of these assets are carried at fair value, resulting in
impairment provisions of R208 million.
The Group's enterprises in Zimbabwe and Kenya individually and collectively have for some time underperformed in challenging and/or
declining markets. Both entities constitute a very small percentage of Group assets and incurred combined trading losses of R3.5 million during
the year under review (2015: R4.3 million loss).
CHANGES TO THE BOARD
On 15 June 2016 David Cleasby resigned as a non-executive director of the Board and member of the Board Risk and Sustainability Committee.
PROSPECTS
The successful restructuring of the business over the past two years has resulted in a substantially cleansed, well controlled commercial platform,
with a broad product range, in most cases, enjoying growing market support, but more importantly, having a re-energised, incentivised and informed
management team.
Stakeholders will nevertheless be aware of the potential economic challenges that could lie ahead and the general consequences arising therefrom.
Such circumstances could well have an effect on future sales volumes and profitability. Continued effort will however be invested, not only to enhance the
quality and efficacy of our products, but to build and enhance our customer relationships and sustain our service levels within each of the operating
divisions.
Given the healthy cash generation in this and in prior periods, the Group now has significant resources available for further growth and development.
Management and the Board will maintain its focus on expanding the Group’s product portfolio, particularly in non-regulated areas through acquisitions
and/or partnerships.
CD Raphiri AG Hall D Neethling
Chairman Chief Executive Officer Chief Financial Officer
25 August 2016
DIVIDEND DISTRIBUTION
The Board has declared a final gross dividend out of income reserves of 54 cents per share in respect of the year ended 30 June 2016.
The South African dividend tax ("DT") rate is 15% and the net dividend payable to shareholders who are not exempt from DT is 45.90 cents per
share. Adcock Ingram currently has 175 748 048 ordinary shares in issue of which 149 905 089 qualify for dividends. The income tax reference
number is 9528/919/15/3.
The salient dates for the distribution are detailed below:
Last date to trade cum distribution Tuesday, 13 September 2016
Shares trade ex distribution Wednesday, 14 September 2016
Record date Friday, 16 September 2016
Payment date Monday, 19 September 2016
Share certificates may not be dematerialised or rematerialised between Wedneday, 14 September 2016 and Friday, 16 September 2016, both
dates inclusive.
By order of the Board
NE Simelane
Company Secretary
Johannesburg
25 August 2016
SENS release date: 26 August 2016
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
for the year ended 30 June
Audited Audited
2016 Change 2015
Continuing operations Note R'000 % R'000
Revenue 2 5 559 896 7 5 182 715
Turnover 2 5 545 610 7 5 158 901
Cost of sales (3 516 089) (3 284 696)
Gross profit 2 029 521 8 1 874 205
Selling, distribution and marketing expenses (1 004 534) 6 (951 169)
Fixed and administrative expenses (419 293) 4 (405 010)
Trading profit 605 694 17 518 026
Non-trading expenses 3 (52 449) (18 960)
Operating profit 553 245 11 499 066
Finance income 2 5 107 13 144
Finance costs (76 888) (96 683)
Dividend income 2 9 179 10 670
Equity-accounted earnings 59 288 65 608
Profit before taxation 549 931 12 491 805
Taxation (170 547) (141 873)
Profit for the year from continuing operations 379 384 8 349 932
Loss after taxation for the year from discontinued operations 4.1 (200 242) (151 123)
Profit for the year 179 142 (10) 198 809
Other comprehensive income which will subsequently be recycled to profit or loss 107 129 61 722
Exchange differences on translation of foreign operations:
– Continuing operations 31 493 16 121
– Discontinued operations 89 071 45 121
Fair value (loss)/gain on available-for-sale asset, net of tax (588) 403
Profit on sale of shares 1 067 –
Movement in cash flow hedge accounting reserve, net of tax (13 914) 77
Other comprehensive income which will not subsequently be recycled to profit or loss
Actuarial profit/(loss) on post-retirement medical liability 6 079 (442)
Total comprehensive income for the year, net of tax 292 350 260 089
Profit attributable to:
Owners of the parent 168 801 197 932
Non-controlling interests 10 341 877
179 142 198 809
Total comprehensive income attributable to:
Owners of the parent 279 736 260 419
Non-controlling interests 12 614 (330)
292 350 260 089
Total operations:
Basic earnings per ordinary share (cents) 101.4 (14) 117.2
Diluted basic earnings per ordinary share (cents) 101.4 (14) 117.2
Headline earnings per ordinary share (cents) 228.7 43 160.1
Diluted headline earnings per ordinary share (cents) 228.7 43 160.1
Continuing operations:
Basic earnings per ordinary share (cents) 223.6 9 204.2
Diluted basic earnings per ordinary share (cents) 223.6 9 204.2
Headline earnings per ordinary share (cents) 226.1 14 198.7
Diluted headline earnings per ordinary share (cents) 226.1 14 198.7
Discontinued operations:
Basic loss per ordinary share (cents) (122.2) (40) (87.0)
Diluted basic loss per ordinary share (cents) (122.2) (40) (87.0)
Headline earnings/(loss) per ordinary share (cents) 2.6 107 (38.6)
Diluted headline earnings/(loss) per ordinary share (cents) 2.6 107 (38.6)
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the year ended 30 June
Attributable to holders of the parent
Total
attri-
*NDR-Dis- butable
continued to
Issued *NDR- operations ordinary Non-
share Share Continuing held- Retained share- controlling
capital premium operations for-sale income holders interests Total
R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000
As at 1 July 2014 16 878 510 920 426 415 1 784 688 2 738 901 118 578 2 857 479
Share issue 10 2 018 2 028 2 028
Movement in share-based
payment reserve 16 098 16 098 16 098
Acquisition of non-controlling interests
in Ayrton Drug Manufacturing Limited (31) (31) (101) (132)
Total comprehensive income 62 487 197 932 260 419 (330) 260 089
Profit for the year 197 932 197 932 877 198 809
Other comprehensive income 62 487 62 487 (1 207) 61 280
Disposal of non-controlling interest
in Bioswiss Proprietary Limited (14 101) (14 101)
Dividends (4 537) (4 537)
Balance at 30 June 2015 (audited) 16 888 512 938 505 000 - 1 982 589 3 017 415 99 509 3 116 924
Share issue 1 189 190 190
Movement in share-based
payment reserve 12 578 12 578 12 578
Transfer to discontinued operations (58 200) 58 200 - -
Implementation of BEE scheme 258 153 746 (44 587) 109 417 (79 883) 29 534
Acquisition of non-controlling interests
in Ayrton Drug Manufacturing Limited (1) (1) (1) (2)
Total comprehensive income 24 137 86 798 168 801 279 736 12 614 292 350
Profit for the year 168 801 168 801 10 341 179 142
Other comprehensive income 24 137 86 798 110 935 2 273 113 208
Dividends (190 762) (190 762) (6 215) (196 977)
Balance at 30 June 2016 (audited) 17 147 666 873 483 515 144 998 1 916 040 3 228 573 26 024 3 254 597
* NDR = Non-distributable reserves.
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
for the year ended 30 June
Audited Audited
2016 2015
R'000 R'000
ASSETS
Property, plant and equipment 1 423 173 1 490 828
Intangible assets 276 070 743 156
Deferred tax 8 129 12 091
Other financial assets 74 310 91 106
Investment in joint ventures 354 139 279 135
Non-current assets 2 135 821 2 616 316
Inventories 1 167 005 1 207 581
Trade and other receivables 1 398 501 1 408 728
Cash and cash equivalents 200 555 147 379
Taxation receivable 84 087 77 948
Current assets 2 850 148 2 841 636
Assets classified as held-for-sale 610 638 –
Total current assets 3 460 786 2 841 636
Total assets 5 596 607 5 457 952
EQUITY AND LIABILITIES
Capital and reserves
Issued share capital 17 147 16 888
Share premium 666 873 512 938
Non-distributable reserves: Continuing operations 483 515 505 000
Discontinued operations held-for-sale 144 998 –
Retained income 1 916 040 1 982 589
Total shareholders' funds 3 228 573 3 017 415
Non-controlling interests 26 024 99 509
Total equity 3 254 597 3 116 924
Long-term borrowings 500 000 513 753
Post-retirement medical liability 16 994 22 796
Deferred tax 75 868 81 854
Non-current liabilities 592 862 618 403
Trade and other payables 1 564 265 1 328 431
Bank overdraft 11 755 304 210
Short-term borrowings – 13 273
Cash-settled options 3 117 6 519
Provisions 69 906 70 192
Current liabilities 1 649 043 1 722 625
Liabilities classified as held-for-sale 100 105 –
Total current liabilities 1 749 148 1 722 625
Total equity and liabilities 5 596 607 5 457 952
CONSOLIDATED STATEMENTS OF CASH FLOWS
for the year ended 30 June
Audited Audited
2016 2015
R'000 R'000
Cash flows from operating activities
Operating profit from continuing operations 553 245 499 066
Operating loss from discontinued operations (198 712) (154 408)
Operating profit 354 533 344 658
Other adjustments and non-cash items 472 839 379 892
Operating profit before working capital changes 827 372 724 550
Working capital changes 113 752 (126 423)
Cash generated from operations 941 124 598 127
Finance income received 17 249 14 409
Finance costs paid (86 689) (103 871)
Dividend income received 23 835 10 670
Dividends paid (196 977) (4 537)
Taxation paid (176 421) (87 312)
Net cash inflow from operating activities 522 121 427 486
Cash flows from investing activities
Decrease in other financial assets 11 961 37 962
Disposal of business – (2 663)
Purchase of property, plant and equipment – Expansion (34 650) (23 560)
– Replacement (60 792) (56 304)
Proceeds on disposal of property, plant and equipment 486 2 243
Proceeds on disposal of intangibles 2 009 –
Disposal of non-controlling interest in Blue Falcon Trading Proprietary Limited (11 616) –
Net cash outflow from investing activities (92 602) (42 322)
Cash flows from financing activities
Acquisition of non-controlling interests in Ayrton Drug Manufacturing Limited (2) (132)
Proceeds from issue of share capital 190 2 028
Proceeds from sale of shares 30 410 –
Increase in borrowings – 23 915
Repayment of borrowings (19 816) (506 031)
Net cash inflow/(outflow) from financing activities 10 782 (480 220)
Net increase/(decrease) in cash and cash equivalents 440 301 (95 056)
Net foreign exchange difference on cash and cash equivalents 10 992 9 986
Cash and cash equivalents at beginning of year (156 831) (71 761)
Cash and cash equivalents at end of year 294 462 (156 831)
Split as follows:
Cash and cash equivalents 200 555 147 379
Bank overdraft (11 755) (304 210)
Net cash position per statement of financial position 188 800 (156 831)
Cash at banks and short-term deposits attributable to the discontinued operations 105 662 –
Cash and cash equivalents at end of year 294 462 (156 831)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the year ended 30 June
1 BASIS OF PREPARATION
1.1 Introduction
The audited consolidated annual financial statements for the year ended 30 June 2016 have been prepared in compliance with the
Listings Requirements of the JSE Limited, International Financial Reporting Standards (IFRS), the requirements of the International
Accounting Standards (IAS) 34: Interim financial reporting, SAICA Financial Reporting Guidelines as issued by the Accounting Practices
Committee and Financial Pronouncements as issued by the Financial Reporting Standards Council and the Companies Act, No. 71 of 2008.
These summarised results for the year ended 30 June 2016, extracted from the audited consolidated financial statements, which
the board of directors take full responsibility for, have been prepared by Ms Dorette Neethling, Chief Financial Officer. Both these
summarised results and the consolidated financial statements were audited by the independent external auditors, Ernst & Young Inc.
and copies of their unqualified audit opinion are available for inspection at the Company's registered office.
1.2 ACCOUNTING POLICIES
The accounting policies adopted are consistent with those of the previous financial year. The carrying amount of all financial instruments
approximate fair value. The estimated net fair values as at the reporting date, have been determined using available market information and
appropriate valuation methodologies.
Audited Audited
2016 2015
R'000 R'000
2 REVENUE
Turnover 5 545 610 5 158 901
Finance income 5 107 13 144
Dividend income – Black Managers Share Trust 9 179 10 670
5 559 896 5 182 715
3 NON-TRADING EXPENSES
Impairments/(Reversal of impairments) 8 638 (2 039)
Transaction costs 3 892 13 678
Share-based payment expenses 39 919 15 081
Lease cancellation expenses – 500
Profit on disposal of business – (8 260)
52 449 18 960
4 DISCONTINUED OPERATIONS
The Board has resolved to dispose of:
– Adcock Ingram Private Limited (India); and
– Ayrton Drug Manufacturing Limited (Ayrton)
The results of these businesses are presented below and the net assets were classified as
held-for-sale as completion of the disposals are expected subsequent to year-end.
4.1 Statement of comprehensive income
REVENUE 412 289 376 211
TURNOVER 403 892 369 468
Cost of sales (175 204) (162 018)
Gross profit 228 688 207 450
Selling, distribution and marketing expenses (143 210) (164 062)
Fixed and administrative expenses (53 883) (110 431)
Trading profit/(loss) 31 595 (67 043)
Non-trading expenses (refer (a)) (230 307) (87 365)
Operating loss (198 712) (154 408)
Finance income 8 397 6 743
Finance costs (8 574) (4 300)
Loss before taxation (198 889) (151 965)
Taxation (1 353) 842
Loss for the year from discontinued operations (200 242) (151 123)
Loss attributable to:
India (139 583) (131 833)
Ayrton (60 659) (19 290)
(200 242) (151 123)
(Loss)/profit attributable to:
Owners of the parent (203 403) (146 868)
Non-controlling interests 3 161 (4 255)
(200 242) (151 123)
a) Non-trading expenses
Impairment of assets transferred to held-for-sale 207 971 –
India 135 012 –
Ayrton 72 959 –
Transaction costs 22 656 –
Profit on sale of intangible asset (320) –
Impairment of intangible assets – 74 432
Impairment of property, plant and equipment – 7 390
Retrenchment costs – 770
Scrapping of property, plant and equipment – 2 241
Lease cancellation expenses – 316
Write-off of India rental deposit – 2 216
230 307 87 365
4.2 Statement of financial position
Details of assets and liabilities transferred to held-for-sale:
ASSETS
Property, plant and equipment 19 234
Cost 72 313
Accumulated depreciation (53 079)
Intangible assets 381 109
Cost 756 753
Accumulated amortisation (375 644)
Inventories 32 757
Trade and other receivables 56 660
Taxation receivable 2 114
Cash and cash equivalents 118 764
Total assets 610 638
LIABILITIES
Long-term borrowings 5 464
Short-term borrowings 5 971
Bank overdraft 13 102
Trade and other payables 71 733
Provisions 3 835
Total liabilities 100 105
Net assets/(liabilities) classified as held-for-sale
India 527 174
Ayrton (16 641)
Net assets 510 533
Foreign currency translation reserve related to assets classified as held-for-sale: (148 663)
India (203 987)
Ayrton 55 324
Share issue expenses related to assets classified as held-for-sale – India 3 665
Net assets 365 535
4.3 Cash flow statement
Included in the Group's consolidated statement of cash flows are cash flows from the Indian
and Ayrton discontinued operations. These cash flows are included in operating, investing
and financing activities as follows:
- Cash outflow from operating activities (6 061) (15 804)
- Cash outflow) from financing activities (1 962) (7 522)
- Cash (outflow)/inflow from financing activities (8 419) 12 516
Net cash outflow (16 442) (10 810)
5 SEGMENT REPORTING
Turnover
Continuing operations:
Southern Africa 5 388 857 5 022 770
OTC 1 668 438 1 454 224
Consumer 662 981 628 991
Prescription 1 830 669 1 812 735
Hospital 1 226 769 1 126 820
Rest of Africa 178 594 147 400
Research and development services in India 15 099 11 565
5 582 550 5 181 735
Less: Inter-company sales (36 940) (22 834)
5 545 610 5 158 901
Discontinued operations:
India 258 936 257 672
Rest of Africa (Ghana) 144 956 111 796
403 892 369 468
TRADING AND OPERATING PROFIT
Continuing operations:
Southern Africa 607 043 520 894
OTC 310 022 260 717
Consumer 90 476 79 301
Prescription 171 453 148 099
Hospital 35 092 32 777
Rest of Africa (3 522) (4 261)
Research and development services in India 2 173 1 393
Trading profit 605 694 518 026
Less: Non-trading expenses (52 449) (18 960)
Operating profit 553 245 499 066
TOTAL ASSETS
Continuing operations:
Southern Africa 4 198 690 4 064 031
OTC 1 556 402 1 419 863
Consumer 325 800 393 820
Prescription 1 216 989 1 209 513
Hospital 1 099 499 1 040 835
Rest of Africa 143 854 193 171
India 230 955 852 153
Other – shared services 412 470 348 597
4 985 969 5 457 952
Discontinued operations:
India 584 844 –
Rest of Africa (Ghana) 25 794 –
610 638 –
6 INVENTORY
Inventories written down/(reversed) and recognised as an expense/(income) in profit or loss:
Continuing operations:
Cost of sales 63 986 92 045
Non-trading expenses – (8 375)
63 986 83 670
Discontinued operations:
Cost of sales 4 616 5 755
68 602 89 425
7 CAPITAL COMMITMENTS
– Contracted 11 362 7 000
– Approved, but not contracted 38 577 33 026
49 939 40 026
8 HEADLINE EARNINGS
Headline earnings is determined as follows:
Continuing operations:
Earnings attributable to owners of Adcock Ingram from total operations 168 801 197 932
Adjusted for:
Loss attributable to owners of Adcock Ingram from discontinued operations (refer note 4.1) 203 403 146 868
Earnings attributable to owners of Adcock Ingram from continuing operations 372 204 344 800
Adjusted for:
Impairment of intangible assets 3 149 –
Loss/(profit) on disposal/scrapping of property, plant and equipment 888 (1 244)
Tax effect on loss/(profit) on disposal of property, plant and equipment (23) (227)
Profit on disposal of business – (8 260)
Adjustments relating to equity accounted joint ventures 211 412
Headline earnings from continuing operations 376 429 335 481
Discontinued operations:
Loss attributable to owners of Adcock Ingram from discontinued operations (203 403) (146 868)
Adjusted for:
Impairment of held-for-sale assets 207 971 –
Impairment of property, plant and equipment – 7 390
Share of non-controlling interest in the impairment of property, plant and equipment – (1 819)
Impairment of intangible assets – 74 432
Profit on sale of intangible asset (320) –
Loss on disposal/scrapping of property, plant and equipment 70 1 735
Headline earnings/(loss) from discontinued operations 4 318 (65 130)
9 SHARE CAPITAL
'000 '000
Number of shares in issue 175 748 201 685
Number of treasury shares held (4 285) (32 800)
Net shares in issue 171 463 168 885
Headline earnings and basic earnings per share are based on:
Weighted average number of shares 166 485 168 834
Diluted weighted average number of shares 166 485 168 841
CORPORATE INFORMATION
ADCOCK INGRAM HOLDINGS LIMITED
Incorporated in the Republic of South Africa
(Registration number 2007/016236/06)
Income tax number 9528/919/15/3
Share code: AIP ISIN: ZAE000123436
("Adcock Ingram" or "the Company")
DIRECTORS
Mr A Hall (Chief Executive Officer)
Prof M Haus (Independent Non-executive Director)
Dr B Joffe (Deputy Chairman)
Dr T Lesoli (Independent Non-executive Director)
Mr M Makwana (Independent Non-executive Director)
Dr A Mokgokong (Non-executive Director)
Mr R Morar (Non-executive Director)
Ms D Neething (Chief Financial Officer)
Mr C Raphiri (Independent Non-executive Chairman)
Mr M Sacks (Independent Non-executive Director)
Dr R Stewart (Independent Non-executive Director)
COMPANY SECRETARY
NE Simelane
REGISTERED OFFICE
1 New Road, Midrand, 1682
POSTAL ADDRESS
Private Bag X69, Bryanston, 2021
Transfer secretaries
Computershare Investor Services Proprietary Limited
70 Marshall Street, Johannesburg, 2001
PO Box 61051, Marshalltown, 2107
AUDITORS
Ernst & Young Inc.
102 Rivonia Road, Sandton, 2146
SPONSOR
Rand Merchant Bank (A division of FirstRand Bank Limited)
1 Merchant Place, corner Fredman Drive and Rivonia Road, Sandton, 2196
BANKERS
Nedbank Limited, 135 Rivonia Road, Sandown, Sandton, 2146
Rand Merchant Bank, 1 Merchant Place, corner Fredman Drive and Rivonia Road, Sandton, 2196
Forward-looking statements
Adcock Ingram may, in this document, make certain statements that are not historical facts and relate to analyses and other information
which are based on forecasts of future results and estimates of amounts not yet determinable. These statements may also relate to our future
prospects, developments and business strategies. Examples of such forward-looking statements include, but are not limited to, statements
regarding exchange rate fluctuations, volume growth, increases in market share, total shareholder return and cost reductions. Words such
as "believe", "anticipate", "expect", "intend", "seek", "will", "plan", "could", "may", "endeavour" and "project" and similar expressions are intended to
identify such forward-looking statements, but are not the exclusive means of identifying such statements. By their very nature, forward-looking
statements involve inherent risks and uncertainties, both general and specific, and there are risks that the predictions, forecasts, projections
and other forward-looking statements will not be achieved. If one or more of these risks materialise, or should underlying assumptions prove
incorrect, our actual results may differ materially from those anticipated. Forward-looking statements apply only as of the date on which they
are made, and we do not undertake any obligation to update or revise any of them, whether as a result of new information, future events or
otherwise.
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Date: 26/08/2016 07:05:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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