Wrap Text
Preliminary audited results for the year ended 31 July 2016 and dividend declaration
Phumelela Gaming and Leisure Limited
(Incorporated in the Republic of South Africa)
Registration number 1997/016610/06
Share code: PHM
ISIN ZAE 000039269
("Phumelela" or "the Company")
PRELIMINARY AUDITED RESULTS FOR THE YEAR ENDED 31 JULY 2016 AND DIVIDEND DECLARATION
OPERATIONAL FEATURES OF THE PERIOD
- Strong growth from fixed odds and international operations
- Continued growth in tote betting on soccer
- Ongoing investment in horseracing facilities and infrastructure
- Diversification strategy locally and internationally gathering momentum
- Arena Racing Company media rights deal in UK effective 1 June 2016
FINANCIAL FEATURES OF THE PERIOD
- Earnings per share up 54% to 163,62 cents
- Headline earnings per share up 41% to 164,51 cents
- Final gross dividend increased by 17% to 70 cents
RESULTS ANALYSIS
RESULTS OVERVIEW
Phumelela is the leading racecourse owner, tote betting operator and racing media provider in
South Africa with a significant presence internationally, complemented by fixed odds betting
on horseracing, soccer and numbers.
The pleasing financial results are reflective of a strategic imperative in place more than a decade
to internationalise and diversify its activities outside of the company's traditional roots.
Diversifying and taking South African thoroughbred horseracing to the world has sustained our
horseracing business in the face of strong cost pressures and despite the ongoing funding imbalance
in respect of horseracing that exists between tote operators and bookmakers.
Growth in tote betting on sports other than horseracing, fixed odds betting and a substantial
increase in contribution from international operations, were the drivers of this year's result.
Fixed odds and international pre-tax income combined is 76% higher at R233 million which compares
with a pre-tax loss of R104 million from our traditional horseracing operations.
Phumelela's 26% interest in Interbet contributed for a full twelve months compared with
nine months in the previous financial year. The relationship with our partners is working
very well and the investment is a perfect fit with Phumelela's horseracing and sports
betting products.
Phumelela continues to invest in South African thoroughbred horseracing. Tote betting volumes
are stable, a quality racing experience encourages on-course attendance, particularly for
high-profile race meetings. Horseracing is the foundation of our business and despite an
economic playing field that is manifestly unfair, we are resolute in playing a key role in
ensuring South African racing remains top class. This year we invested a further R51 million
on our betting and racing facilities.
The Group ended the year with 75 fixed odds retail shops, up from 66 as at January 2016.
A 51% investment in Afribet, which operates in the Eastern Cape, became unconditional with
effect from February, adding to the Group's retail footprint. Total capital expenditure in
Betting World amounted to R23 million in 2016.
Under strengthened leadership, Betting World is focused on taking the bet to the people and
enhancing the punter experience, and on nurturing franchise opportunities for previously
disadvantaged individuals.
Income increased across the fixed odds retail footprint and profits more than trebled.
International operations performed well in foreign currency terms and with an even better
performance on translation to rand, benefitting from increased volume of demand for a
world-class South African thoroughbred horseracing export product.
A fairer funding dispensation for the sport of thoroughbred horseracing is imperative.
Within this context, flagrant piracy of the Group's intellectual property by certain bookmakers
is unconscionable. Civil and criminal lawsuits have been filed and will continue to be filed
against bookmakers unlawfully displaying Tellytrack. As of the date of this report, 274 bookmakers
have subscribed to Tellytrack for live horseracing televisual and audio rights whilst 255 bookmakers
have subscribed to the live international horseracing televisual and audio rights.
GROUP FINANCIAL ANALYSIS
Total income increased by 19% to R1 500,8 million with local income growing by 15% to R1 226,4 million
and international income growing by 38% to R274,4 million.
Local net betting income grew by 15% to R965,6 million and other local income grew by 10% to
R252,6 million. Other operating income from international operations grew by 33% to R273,8 million.
Net income, after investment income of R5,3 million, was 17% higher at R1 497,3 million.
Local expenses, stakes and levies increased by 19% to R1 255,2 million and international expenses,
which includes intellectual property rights fees, increased by 42% to R199,1 million.
Reward for exceptional performance plays a vital part in ensuring the Group continues to achieve
its targets and our human capital is pivotal in this regard. Salaries are competitive but supplemented
by appropriate monetary recognition as circumstances warrant. In this regard, local expenses also
capture incentive awards and share-based payment charges.
Expenses on a like-for-like basis increased in line with budget and fixed odds costs reflect investment
in expansion. The 23% increase in the Group depreciation charge reflects the investment commitment
Phumelela is making in keeping its estate up-to-date and appealing to customers.
Local operations recorded a loss of R41,6 million compared to a profit of R7,6 million. The combination
of international pre-tax profits of R75,3 million and international and local equity accounted profits
of R94,7 million resulted in total Group pre-tax profit of R128,4 million, an increase of 7% before
non-cash impairments and fair value adjustments.
Net attributable income increased by 53% to R121,9 million, assisted by a positive fair value
adjustment and a slightly lower effective tax rate. Headline earnings adjustments were minimal
with the prior year including a R9 million impairment of the Group's 26% interest in Betting World
Nigeria. Headline earnings increased by 40% to R122,6 million.
To fulfil obligations in respect of shares exercisable in terms of the executive option schemes,
the company previously repurchased shares and so the weighted average number of shares in issue
was 0,67% lower. Earnings per share therefore grew by 54% and headline earnings per share grew by 41%.
Against the British pound, the rand averaged R21,43 for the year compared with R18,11, an 18%
adverse move that resulted in more rand recognised on translation of foreign currency. The Group
benefitted from a foreign exchange gain of R8,2 million.
SOUTH AFRICAN OPERATIONS
Tote betting increased by 3% to R3,4 billion with tote betting on sports other than horseracing
increasing by 13% to R1,1 billion and with tote betting on horseracing remaining flat at R2,3 billion.
Tote betting on sports other than horseracing comprises 32% of the tote betting and is up from 29%
last year. Tote betting on local racing now comprises 50% of tote betting with betting on international
racing the balance at 18%.
Interactive is now 30% of tote bets placed. Interactive is a key component of the Group's future
strategy and the Group will continue to invest in the expansion of this part of its business.
Fixed odds had an excellent year with the investment in growth over the past few years manifesting
in accelerating profitability at improved margin. Fixed odds betting increased by 25% to R1,8 billion.
Net fixed odds betting income for the year of R263,1 million, growth of 63%, is more than three times
what Phumelela earned as recently as five years ago.
Fixed odds betting on horseracing has shown a very pleasing improvement, increasing by 35% since 2014.
Other sports and in particular numbers betting, which increased by 54%, continue to grow in popularity.
The expanded retail presence is a big factor in bringing in the punters, with strong growth in betting
in provinces such as KwaZulu Natal, Mpumalanga, Eastern Cape and Limpopo.
Total operating expenses in the local tote and fixed odds operations grew by 19% to R1 255,2 million.
This reflects the growth in retail, IFRS 2 share-based payment charges, human capital spend, and legal
and consulting fees associated with combatting piracy of the Group's intellectual property by
bookmakers and related legal matters.
Prize monies (stakes) increased by 7% to R202,9 million in accordance with the formula set out in the
stakes agreement with the Racing Association. Stakes are calculated retrospectively on prior year
results and the increase is reflective of the 2015 financial year results as they pertain to the formula.
A consequence of the drought is an additional R8,6 million spent on watering our racing and training
facilities.
Like-for-like normalised expenses in the local tote operations, excluding stakes and depreciation,
grew by 8%. Across both tote and fixed odds operations like-for-like expenses, also excluding stakes
and depreciation, grew by 13%. Day to day operating expenses are under constant scrutiny.
Interbet positively affected equity accounted income with share of profits of R5 million in the current
year, up from R1,6 million in the previous year, the prior year representing nine months share of
profits effective from 1 November 2014.
INTERNATIONAL OPERATIONS
International operations contributed an extremely pleasing R163,0 million pre-tax compared with
R110,6 million in the prior year.
Phumelela's international operations provide a substantial rand hedge with profits favourably
impacted by a weaker rand relative to major trading currencies during the year.
Phumelela's 50% investment in Premier Gateway International (PGI), located on the Isle of Man,
the export of live broadcast of South African horseracing, and the first-time contribution of
Arena Racing Company all contributed to an excellent result.
The combined pre-tax profit contribution comprises 127% of Group pre-tax profit before the ASL
fair value adjustment of R5,6 million. The Group's investment in ASL is held for sale.
With effect from May, win, place and swinger bets on Hong Kong races have been commingled into
Hong Kong's tote pools. Commingling gives local punters the opportunity to participate in the one
of the largest tote pools in the world.
Included in operating expenses of R199,1 million is R104,0 million in intellectual property rights
fees, which increased by 52%.
FINANCIAL POSITION
The Group has a strong financial position.
Cash generated from operating activities, after a release of cash from working capital of
R29,9 million, was R143,0 million.
Dividends received from equity accounted investees contributed an additional R71,0 million.
Capital expenditure, including stay in business and expansion, was R76,4 million of which
R74,2 million was on property, plant and equipment and R2,2 million on intangibles. R8 million was
spent converting the Vaal sand track to grass.
Dividends paid to shareholders amounted to R70,1 million.
Total assets are R944,0 million, which includes property, plant and equipment at a carrying value
of R458,9 million, goodwill and intangibles valued at R66,7 million, and equity accounted investees
valued at R75,5 million.
Attributable equity amounts to R513,1 million and represents a net asset value per share of
688,33 cents.
Return on opening equity of 27% is very pleasing and exceeds cost of capital by a substantial margin.
The Group has a net cash position of R11,9 million and has adequate borrowing facilities. The Group
has sufficient cash flow and borrowing capacity to meet its ongoing operational needs.
A combination of recurring income, in the form of broadcast rights, variable but reasonably
consistent transactional income, and the benefits of incremental income from investment in growth
and development of international and local tote, fixed odds and media income provides a relatively
dependable cash flow.Whilst regulatory factors are a risk of doing business the Board believes these
are mitigated and that relationships with relevant authorities are constructive and cooperative.
SHARE CAPITAL
There was no movement in authorised or issued share capital during the year under review.
SUMMARISED CONSOLIDATED SEGMENTAL ANALYSIS
The Group stages horseracing events in South Africa, offers betting opportunities on South African
and international sports, and exports televisual horseracing content internationally.
Reporting disclosure corresponds to management reporting lines.
31 Jul 31 Jul
% 2016 2015
change R'000 R'000
Local sports betting and media gross income 15 1 226 382 1 067 062
International ventures gross income 38 274 415 199 143
Total local and international income 19 1 500 797 1 266 205
Local tote and fixed odds net betting and other income 14 1 222 910 1 072 467
International other income 33 274 415 205 798
Total local and international net income 17 1 497 325 1 278 265
Local expenses, stakes and levies 19 (1 255 160) (1 059 070)
International expenses 42 (199 067) (139 894)
Total expenses 21 (1 454 227) (1 198 964)
Local operating (loss)/profit (337) (32 250) 13 397
Local finance costs 61 (9 368) (5 828)
Local (loss)/profit from operations (642) (41 618) 7 569
International pre-tax profit 13 75 348 65 904
International and local equity accounted profits 101 94 694 47 060
Total Group pre-tax profit 7 128 424 120 533
Fair value adjustment in respect of assets held for sale 5 578 (12 753)
Equity accounted investee impaired (8 545)
Profit before income tax expense 35 134 002 99 235
Note: Segmental information extracted from audited financial statements.
CAPITAL COMMITMENTS
Commitments in respect of capital expenditure approved by directors.
2016 2015
R'000 R'000
Contracted for 4 261 2 709
Not contracted for 164 953 120 004
Capital commitments will be financed out of cash and cash equivalents on hand or borrowing facilities
as and when required.
INVESTMENT
On 9 December 2015, Phumelela announced an intension to acquire 50% of the shares of Supabets SA
Holdings Proprietary Limited ('Supabets'). Supabets is one of the leading and fastest growing
sports betting and gaming groups in Africa with a specific focus in the high growth fixed odds
sports betting market. Information relating to this transaction is in the public domain and
availablefor view via the investor relations portal on the Group website.
MATTERS OF CORPORTE INTEREST AND LITIGATION
On 13 July 2016, the Competition Commission issued a notice of non-referral in respect of consolidated
complaints lodged by Gauteng Off-Course Bookmakers' Association, the KwaZulu-Natal Bookmakers' Society,
and various individual bookmakers with the Competition Commission.
On 9 March 2016 Cabinet approved the National Gambling Policy Review Document which forms the basis
of a National Gambling Amendmend Bill that was recently published for broader public comment.
Whilst a number of Phumelela's concerns have been favourably addressed including the bookmakers'
'open bet' and the right to be compensated for the use of the Group's intellectual property, a few
pressing issues remain, the most notable being:
- Operators in the business of taking bets or wagers should be prevented from collecting bets on the
lottery results or conducting sports pools in terms of a licence issued under gambling legislations
across the country. Bets on lottery results and sports pools must only be authorised in terms of the
lottery legislation; or
- Operators must be required to contribute a reasonable percentage from their gross gambling revenue
into the National Lotteries Distribution Trust Fund ('NLDTF') as shall be prescribed by the
Minister after consulting Council.
Implementation of the policy in respect of Tote bets on sports other than horseracing would put the
Tote operators at a competitive disadvantage to bookmakers and the National Lottery and could
potentially have a detrimental effect on Phumelela, horseracing and betting taxes earned by each of
the provinces. Phumelela offered Tote bets on sports other than horseracing prior to the introduction
of the National Lottery and has done so with approval from the provincial gambling boards ever since.
Phumelela believes that the removal of its right to offer Tote bets on sports other than horseracing
would be unconstitutional and has engaged Government in this regard.
Phumelela is a defendant in respect of three applications in the High Court of South Africa.
Details pertaining to Matters of Corporate Interest and Litigation are disclosed in full in the Report
of the Directors in the annual financial statements.
The outcome of the relevant actions noted under Matters of Corporate Interest and Litigation remains
uncertain and may have an impact on future earnings.
REPORTING ENTITY
Phumelela Gaming and Leisure Limited is a company domiciled in South Africa. The summarised consolidated
financial statements as at and for the year ended 31 July 2016 comprises of the company and its
subsidiaries and the Group's interests in equity accounted investees and joint operations.
STATEMENT OF COMPLIANCE
The preliminary summarised audited consolidated financial statements are prepared in accordance with
the requirements of the JSE Limited Listings Requirements for preliminary reports, and the requirements
of the Companies Act applicable to summary financial statements. The Listings Requirements require
preliminary 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.
BASIS OF PREPARATION
The preliminary summarised audited consolidated financial statements do not include all the information
and disclosures required for the audited consolidated financial statements. The preliminary summarised
audited consolidated financial statements should be read in conjunction with the audited consolidated
financial statements.
The audited consolidated financial statements for the Group as at and for the year ended 31 July 2016
were prepared on the going-concern basis and are available for inspection at the Company's registered
office and will be made available on the Group website on or before 31 October 2016.
The accounting policies applied in the presentation of the preliminary summarised audited consolidated
financial statements are consistent with those applied for the year ended 31 July 2015, except for new
standards and interpretations that became effective on 1 August 2015 and deemed applicable to the Group.
They are prepared on the historical cost basis, except for certain financial instruments that are
recognised at fair value.
Mr B. McLoughlin CA(SA) Chief Financial Officer was responsible for supervising the preparation of
the annual financial statements and preparing the summarised financial statements.
REPORT OF THE INDEPENDENT AUDITORS
The auditors, KPMG Inc., have issued their opinion on the Group's consolidated financial statements for
the year ended 31 July 2016. The audit was conducted in accordance with International Standards on
Auditing. They have issued an unmodified opinion. A copy of the auditors' report together with a copy of
the audited consolidated financial statements is available at the Company's registered office.
The preliminary summarised audited consolidated financial statements have been derived from the Group's
consolidated financial statements and are consistent in all material respects with the Group's
consolidated financial statements. The consolidated financial statements have been audited by the
Group's auditors who have issued an unmodified opinion. The auditors' report does not necessarily report
on all of the information contained in this announcement. Any reference to future financial information
included in this announcement has not been reviewed or reported on by the auditors. Shareholders are
advised that in order to obtain a full understanding of the nature of the auditors' engagement they
should obtain a copy of that report together with the accompanying financial information from the
Company's registered office. The summarised report is extracted from the audited information but is
itself not audited. The directors take full responsibility for the preparation of the preliminary
results and the financial information is correctly extracted from the underlying annual financial
statements.
SUBSEQUENT EVENTS
There are no significant subsequent events that have an impact on the financial information at
31 July 2016.
RELATED PARTIES
Other than in the normal course of business, there have been no significant transactions during the
year with equity accounted investees, joint operations and other related parties.
SOCIAL RESPONSIBILITY
Phumelela was independently rated in March 2015 as an AAA level two broad-based black economic
empowerment contributor. The Department of Trade and Industry has subsequently issued revised Codes of
Good Practice under the Broad-Based Black Economic Empowerment Act and Phumelela is working towards
achieving this status in terms of the new criteria in the shortest possible time. Phumelela was ranked
eighth on the Johannesburg Stock Exchange in the most recent top 100 Most Empowered Companies ranked by
Empowerdex.
The Group recognises that it has a responsibility to the broader community to act in a socially
responsible manner, for the benefit of all South Africans. Contributions to selected training, sports
and community service related projects continue. The Group has adopted appropriate BEE and employment
equity, training and procurement policies.
DIRECTORS
Other than the appointment of Mr. Brian Finch as a director of the Company, there were no other changes
to the composition of the Board during the year.
PROSPECTS
The acquisition of Supabets is to be funded through a combination of new shares issued to the seller,
a rights issue to shareholders and any remainder through the Group's cash and debt facilities. The
investment is expected to contribute positively to earnings per share going forward.
Our international operations thrive on the quality of the year-round South African horseracing,
for which there is strong and growing demand. Phumelela is opening up new markets to South African
punters. The Group's agreement with Arena Racing Company will contribute meaningfully to Group
earnings in 2017.
The Group is delivering the anticipated returns from investments made in the fixed odds retail footprint
and expects further improvement in profitability in 2017.
Off a strong platform and with the benefit of acquisitions, the Group is targeting another year of real
growth in earnings per share.
Any forward looking statements of forecasts contained in these results have not been reviewed or
reported on by the Group auditors.
CASH DIVIDEND TO SHAREHOLDERS
Notice is hereby given that the Board has declared a final gross cash dividend from income reserves of
70 cents per share (59,50 cents per share net of dividend withholding tax at a rate of 15%) payable to
shareholders recorded in the register on Friday 4 November 2016. The issued share capital at the
declaration date is 77 101 885 ordinary shares. Shareholders are advised that the last date to trade
'cum dividend' will be Tuesday 1 November 2016. As from commencement of business on Wednesday
2 November 2016 all trading in Phumelela shares will be 'ex dividend'. Payment will be made on
Monday 7 November 2016. Share certificates may not be dematerialised or rematerialised between
Wednesday 2 November 2016 and Friday 4 November 2016, both days inclusive. The Company's tax
reference number is 9171/393/84/7.
For and on behalf of the Board
MP Malungani WA du Plessis
Chairman Chief Executive Officer
Turffontein, Johannesburg
7 October 2016
SUMMARISED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Audited Audited
12 months 12 months
31 Jul 31 Jul
% 2016 2015
change R'000 R'000
Income
- Local operations 15 1 226 382 1 067 062
- International operations 38 274 415 199 143
19 1 500 797 1 266 205
Gross betting income
- Local operations 15 1 198 796 1 044 329
Net betting income
- Local operations 15 965 551 840 506
Other operating income
- Local operations 10 252 603 230 269
- International operations 33 273 840 205 416
Investment income
- Local operations 181 4 756 1 692
- International operations 575 382
Net income 17 1 497 325 1 278 265
Operating expenses and overheads
- Stakes 7 (202 871) (189 772)
- Local operations 21 (991 104) (819 763)
- International operations 42 (198 781) (139 604)
Profit before finance costs, income tax,
depreciation and amortisation (19) 104 569 129 126
Depreciation and amortisation 23 (61 471) (49 825)
Profit from operations (46) 43 098 79 301
Finance costs
- Local operations 61 (9 368) (5 828)
Profit before share of profit of equity accounted
investees and fair value adjustment to investment (54) 33 730 73 473
Equity accounted investee impaired (8 545)
Share of profit of equity accounted investees after tax 101 94 694 47 060
Profit before fair value adjustment 15 128 424 111 988
Fair value adjustment to investment 5 578 (12 753)
Profit before income tax expense 35 134 002 99 235
Income tax expense (35) (12 912) (19 713)
Profit for the year 52 121 090 79 522
Other comprehensive income for the year
Items that may subsequently be reclassified to profit or loss
- Exchange differences on translating foreign operations (174) (579) 780
Total comprehensive income for the year 50 120 511 80 302
Profit attributable to:
Ordinary equity holders of the parent 53 121 944 79 516
Non-controlling interest (854) 6
Profit for the year 52 121 090 79 522
Total comprehensive income attributable to:
Ordinary equity holders of the parent 51 121 365 80 296
Non-controlling interest (854) 6
Total comprehensive income for the year 50 120 511 80 302
Earnings per ordinary share (cents)
- Basic 54 163,62 105,98
- Diluted 53 155,01 101,14
SUPPLEMENTARY STATEMENT OF COMPREHENSIVE INCOME INFORMATION
Audited Audited
12 months 12 months
31 Jul 31 Jul
% 2016 2015
change R'000 R'000
Reconciliation of headline earnings
Earnings attributable to equity holders of parent 53 121 944 79 516
Adjusted for:
Equity accounted investee impaired 8 545
Net loss/(profit) on disposal of property,
plant and equipment 916 (315)
Tax effect (256) 88
Headline earnings 40 122 604 87 834
Headline earnings per share (cents) 41 164,51 117,06
Diluted headline earnings per share (cents) 39 155,85 111,72
Net asset value per share (cents) 15 688,33 600,79
Dividend to shareholders
Interim dividend
Dividend per ordinary share (cents) 21 34,00 28,00
Final dividend
Dividend per ordinary share (cents) 17 70,00 60,00
Number of shares in issue 74 535 485 74 525 485
Weighted average number of shares in issue for basic,
headline and adjusted headline earnings per
share calculation 74 528 006 75 032 549
Weighted average number of shares in issue for diluted
earnings per share calculation 78 669 669 78 616 685
SUMMERISED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Audited Audited
12 months 12 months
31 Jul 31 Jul
2016 2015
R'000 R'000
ASSETS
Non-current assets 635 466 575 088
Property, plant and equipment 458 914 444 682
Goodwill 15 206 12 362
Intangible assets 51 455 52 104
Interest in equity accounted investees 75 460 51 732
Investments 692 695
Long-term loan 24 790 10 603
Deferred taxation asset 8 949 2 910
Current assets 308 484 200 751
Inventories 1 920 879
Trade and other receivables 137 849 100 812
Defined benefit funds 8 183 7 075
Income tax receivable 19 233 10 941
Assets held for sale 28 624 23 046
Cash and cash equivalents 112 675 57 998
Total assets 943 950 775 839
EQUITY AND LIABILITIES
Total equity 513 051 447 743
Share capital and premium 1 863 1 863
Retained earnings 511 630 445 743
Translation reserve (442) 137
Non-current liabilities 64 489 54 735
Deferred taxation liability 1 531 4 652
Borrowings 62 895 49 595
Finance lease liability 63 488
Current liabilities 366 410 273 361
Trade and other payables 310 095 249 707
Borrowings 2 926 2 400
Contingent consideration liability 707 707
Income tax payable 1 683 1 625
Betting dividends payable 15 994 7 385
Bank overdrafts 35 005 11 537
Total equity and liabilities 943 950 775 839
SUMMARISED CONSOLIDATED STATEMENTS OF CASH FLOW
Audited Audited
12 months 12 months
31 Jul 31 Jul
2016 2015
R'000 R'000
Net cash inflow from operating activities 38 594 3 761
Cash generated by operations 113 046 117 405
Movements in working capital 29 949 (23 446)
Cash generated by operating activities 142 995 93 959
Income tax paid (30 306) (19 579)
Investment income received 5 331 1 598
Finance costs paid (9 368) (5 828)
Dividends to shareholders (70 057) (66 389)
Net cash outflow from investing activities (19 549) (54 057)
Acquisition of property, plant and equipment and intangible assets (76 443) (84 037)
Proceeds on disposal of property, plant and equipment
and intangible assets 2 083 1 322
Acquisition of a subsidiary (1 710)
Investment in equity accounted investee and contingent
settlements on investments 3 (33 801)
Loans (advanced)/recouped (14 448) 10 271
Dividends received from equity accounted investees 70 966 52 188
Net cash inflow from financing activities 12 743 1 073
Repayment of finance leases (557) (474)
Non-controlling interest acquired (130)
Net borrowings raised 13 300 43 278
Shares repurchased (41 601)
Net increase/(decrease) in cash and cash equivalents 31 788 (49 223)
Effect of conversion of foreign operations on cash and cash equivalents (579) 780
Cash and cash equivalents at beginning of year 46 461 94 904
Cash and cash equivalents at end of year 77 670 46 461
Make up of balance of cash and cash equivalents
Cash and cash equivalents 112 675 57 998
Bank overdraft (35 005) (11 537)
Cash and cash equivalents at end of year 77 670 46 461
SUMMARISED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Equity
attri-
butable
to Non-
Trans- ordinary con-
Share lation Retained share- trolling Total
capital reserve earnings holders interest equity
R'000 R'000 R'000 R'000 R'000 R'000
Balance at 31 July 2014 1 890 (643) 477 250 478 497 294 478 791
Total comprehensive income for the year 780 79 516 80 296 6 80 302
- Profit for the year 79 516 79 516 6 79 522
- Foreign currency translation reserve 780 780 780
Transactions with owners recorded
directly in equity
- Loss on acquisition of non-controlling
interest (130) (130) (130)
- Share based payment (3 230) (3 230) (3 230)
- Shares repurchased (55) (19 791) (19 846) (19 846)
- Shares issued in terms of executive
share option scheme 28 (21 783) (21 755) (21 755)
- Dividends paid to equity holders (66 089) (66 089) (300) (66 389)
Balance at 31 July 2015 1 863 137 445 743 447 743 447 743
Total comprehensive income for the year (579) 121 944 121 365 (854) 120 511
- Profit for the year 121 944 121 944 (854) 121 090
- Foreign currency translation reserve (579) (579) (579)
Transactions with owners recorded
directly in equity
- Purchase of controlling interest
in subsidiary 854 854
- Share based payment 14 000 14 000 14 000
- Dividends paid to equity holders (70 057) (70 057) (70 057)
Balance at 31 July 2016 1 863 (442) 511 630 513 051 513 051
Directors: M P Malungani (Chairman), W A du Plessis* (Group Chief Executive),
A W Heide* (Finance Director and COO), R Cooper, B P Finch#,
M J Jooste, B Kantor, S K C Khampepe, N J Mboweni (Mrs), V J Moodley*,
Dr E Nkosi, M L Ramafalo*, J A Stuart*, C J H van Niekerk, J B Walters
(*Executive; #Zimbabwean)
Company Secretary: F Moloi (Mrs)
Sponsor: Investec Bank Limited
Registered Office: Turffontein Racecourse, 14 Turf Club Street, Turffontein
Transfer Secretaries: Computershare Investor Services Proprietary Limited
Share code: PHM
ISIN: ZAE000039269
Sponsor: Investec Bank Limited
Web site: www.phumelela.com
Date: 07/10/2016 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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