Wrap Text
Audited Condensed Group Results For The Year Ended 31 August 2016
African Equity Empowerment Investments Limited
(Incorporated in the Republic of South Africa)
Registration number 1996/006093/06
Share code: AEE and ISIN: ZAE000195731
("AEEI" or "the Group" or "the Company")
Audited Condensed Group results for the year ended 31 August 2016
CONDENSED GROUP STATEMENT OF FINANCIAL POSITION
Audited Audited
Group Group
31 August 31 August
2016 2015
R'000 R'000
Assets
Non-current assets 1 428 019 1 096 519
Property, plant and equipment 147 086 153 422
Goodwill 56 832 56 832
Intangible assets 338 640 339 697
Investment in associate 169 9
Investment in joint ventures 115 -
Other loans receivable 9 496 5 282
Other financial assets 858 371 525 115
Deferred tax 17 310 16 162
Current assets 263 200 228 952
Inventory 45 439 31 503
Biological assets 48 169 46 162
Other loans receivable 6 805 7 734
Current tax receivable 1 465 450
Trade and other receivables 96 482 111 037
Cash and cash equivalents 64 840 32 066
Assets of disposal groups and non-current assets held for sale - 20 000
Total assets 1 691 219 1 345 471
Equity and liabilities
Capital and reserves
Share capital and share premium 403 177 403 177
Reserves 8 034 8 034
Retained income 505 241 300 895
Equity attributable to parent 916 452 712 106
Non-controlling interests 84 583 92 443
Total equity 1 001 035 804 549
Non-current liabilities 560 005 354 637
Other financial liabilities 253 004 112 800
Deferred tax 299 102 239 015
Other non-current liabilities 7 902 2 822
Current liabilities 130 176 186 285
Trade and other payables 74 262 95 698
Other financial liabilities 12 587 45 609
Other current liabilities 260 1 122
Provisions 23 390 23 568
Bank overdraft 9 771 13 419
Current tax payable 9 906 6 869
Total equity and liabilities 1 691 219 1 345 471
Net asset value ("NAV") per share (cents) 186.52 144.93
CONDENSED GROUP STATEMENT OF COMPREHENSIVE INCOME
Audited Audited
Group Group
31 August 31 August
2016 2015
R'000 R'000
Continuing operations
Revenue 752 203 672 185
Cost of sales (495 646) (443 546)
Gross Profit 256 557 228 639
Other income 3 454 3 595
Other expenses (176 855) (150 738)
Net impairments and impairment reversals 5 363 (5 779)
Fair valuation adjustments 194 947 106 405
Gain on deemed disposal of equity accounted investments - 3 224
Investment revenue 33 592 16 976
Gain on disposal of subsidiary 1 034 3 436
Profit/(Loss) from equity accounted investments 242 (316)
Finance cost (26 232) (19 695)
Profit before tax 292 102 185 747
Tax (80 538) (36 491)
Profit from continuing operations 211 564 149 256
Loss from discontinued operations (3 037) -
Profit for the year 208 527 149 256
Other comprehensive income - -
Total comprehensive income 208 527 149 256
Attributable to:-
Non-controlling interests (NCI) (8 096) (3 641)
Equity holders of the parent
- Continuing operations 219 660 152 897
- Discontinued operations (3 037) -
216 623 152 897
Earnings and diluted earnings per share (cents) 44.09 31.12
- Continuing operations 44.71 31.12
- Discontinued operations (0.62) -
CONDENSED STATEMENT OF CHANGES IN EQUITY
Attributable Non-
To controlling Total
Parent Interests Equity
R 000's R 000's R 000's
Balance at 01 September 2014 569 036 96 036 665 072
Net profit for the year 152 897 (3 641) 149 256
Dividends declared to NCI by subsidiaries - (2 248) (2 248)
Dividends declared to outside shareholders (9 827) - (9 827)
Business combinations - 2 296 2 296
Balance at 31 August 2015 712 106 92 443 804 549
Net profit for the year 216 623 (8 096) 208 527
Dividends declared to NCI by subsidiaries - (2 234) (2 234)
Dividends declared to outside shareholders (12 292) - (12 292)
Transfer between reserves 15 (50) (35)
Changes in ownership interest - control not lost - 2 520 2 520
Balance at 31 August 2016 916 452 84 583 1 001 035
Condensed Group Statement of Cash Flows
Audited Audited
Group to Group to
31 August 31 August
2016 2015
R'000 R'000
Cash generated by operations 86 187 67 844
Investment revenue 33 592 16 976
Finance cost (26 232) (19 695)
Other operating activities (18 170) (14 331)
Net cash flows from operating activities 75 377 50 794
Net movement in property, plant and equipment (12 464) (33 423)
Net movement in intangible assets (2 060) (3 549)
Movement in other investing activities (6 930) (2 786)
Proceeds on sale of financial assets 20 000 -
Purchase of financial assets (136 509) -
Net cash flows from investing activities (137 963) (39 758)
Repayment of other financial liabilities (59 789) (33 006)
Receipt of other financial liabilities 171 839 8 078
Dividends paid (13 042) (9 827)
Net cash flows from financing activities 99 008 (34 755)
Total cash movement for the year 36 422 (23 719)
Cash and cash equivalent at the beginning of the year 18 647 42 366
Cash and cash equivalents at the end of the year 55 069 18 647
CONDENSED GROUP SEGMENTAL REPORT 2016
Fishing Technology Health Care Biotechnology
R'000 R'000 R'000 R'000
Revenue 401 692 216 602 4 292 4
External sales 401 211 215 358 4 292 4
Intergroup sales 482 1 244 - -
Segment results
Operating profit/(loss) from continuing operations 74 814 34 805 (1 850) (3 166)
Discontinued operations - - (3 134) -
Included in segment results: (13 608) (2 059) (851) 3 793
Net impairments - - - 6 402
Depreciation and amortisation (13 608) (2 073) (851) (2 609)
Fair value adjustment - 14 - -
Carrying amount of non-current assets 149 831 15 503 21 770 350 375
Carrying amount of current assets 159 452 67 424 7 944 2 223
Carrying amount of non-current liabilities 94 692 270 183 89 367
Carrying amount of current liabilities 58 968 20 978 2 567 1 078
Profit from equity accounted investments - 160 82 -
Capital Expenditure 9 295 1 121 - 527
Corporate and Strategic Investments
Events
and Tourism Corporate Food Telecommunications
R'000 R'000 R'000 R'000
Revenue 127 980 33 307 - -
External sales 126 958 4 381 - -
Intergroup sales 1 022 28 926 - -
Segment results
Operating profit/(loss) from continuing operations 5 189 4 330 (38 729) 209 109
Discontinued operations - 97 - -
Included in segment results: (281) 22 169 (38 644) 209 109
Net impairments - (1 039) - -
Depreciation and amortisation (254) (1 286) - -
Fair value adjustment (27) 24 495 (38 644) 209 109
Carrying amount of non-current assets 12 950 183 902 284 478 409 211
Carrying amount of current assets 19 282 6 868 - 7
Carrying amount of non-current liabilities 1 907 141 039 146 947 85 603
Carrying amount of current liabilities 16 047 30 506 - 32
Profit from equity accounted investments - - -
Capital Expenditure 287 1 261 - -
Combined
Corporate
and
strategic
investments Group
R'000 R'000
Revenue 33 307 783 877
External sales 4 381 752 203
Intergroup sales 28 926 31 674
Segment results
Operating profit/(loss) from continuing operations 174 710 284 500
Discontinued operations 97 (3 037)
Included in segment results: 192 634 179 629
Net impairments (1 039) 5 363
Depreciation and amortisation (1 286) (20 681)
Fair value adjustment 194 960 194 947
Carrying amount of non-current assets 877 591 1 428 019
Carrying amount of current assets 6 875 263 200
Carrying amount of non-current liabilities 373 589 560 008
Carrying amount of current liabilities 30 538 130 176
Profit from equity accounted investments - 242
Capital Expenditure 1 261 12 491
CONDENSED GROUP SEGMENTAL REPORT 2015
Fishing Technology Health Care Biotechnology
R'000 R'000 R'000 R'000
Revenue 348 393 217 335 9 620 -
External sales 348 743 216 513 9 620 -
Intergroup sales (350) 822
Operating profit/(loss) from continuing operations 68 157 33 071 (6 110) (14 862)
Included in segment results - - (1 703) (8 983)
Net impairments - - - (6 067)
Depreciation and amortisation (14 898) (1 335) (1 703) (2 916)
Fair value adjustment - - - -
Carrying amount of non-current assets 157 067 21 870 16 710 344 620
Carrying amount of current assets 120 244 74 864 13 622 777
Carrying amount of non-current liabilities 77 033 1 253 - 87 679
Carrying amount of current liabilities 54 972 43 062 12 272 789
Profit from equity accounted investments - 9 - -
Capital Expenditure 24 082 4 080 1 615 68
Corporate and Strategic Investments
Events
and Tourism Corporate Food Telecommunications
R'000 R'000 R'000 R'000
Revenue 98 069 26 726 - -
External sales 97 309 - - -
Intergroup sales 760 26 726 - -
Segment results
Operating profit/(loss) from continuing operations 8 951 (18 745) 123 527 (8 431)
Included in segment results - - 123 617 (8 412)
Net impairments - 288 - -
Depreciation and amortisation (229) (175) - -
Fair value adjustment 45 (8 845) 123 617 (8 412)
Carrying amount of non-current assets 20 526 32 580 323 122 200 024
Carrying amount of current assets 12 228 14 589 139 233 32 298
Carrying amount of current liabilities 14 432 60 740 18
Profit from equity accounted investments (325) - - -
Capital Expenditure 195 7 645 - -
Combined
Corporate
and
strategic
investments Group
R'000 R'000
Revenue 26 726 700 143
External sales - 672 185
Intergroup sales 26 726 27 958
Segment results
Operating profit/(loss) from continuing operations 96 351 185 558
Discontinued operations - -
Included in segment results: 106 473 79 370
Net impairments 288 (5 779)
Depreciation and amortisation (175) (21 256)
Fair value adjustment 106 360 106 405
Carrying amount of non-current assets 555 726 1 116 519
Carrying amount of current assets 7 217 228 952
Carrying amount of non-current liabilities 186 120 354 637
Carrying amount of current liabilities 60 758 186 285
Profit/(loss) from equity accounted investments - (316)
Capital Expenditure 7 645 37 685
Notes:
Strategic investments have been included under the Corporate division as these were managed under the Corporate office other than Food which has been
managed under the Fishing division. The Corporate division comprises of strategic investments making up more than 10 percent of the total assets of the Group,
which have been disclosed separately. Additionally Magic 828 (Pty) Ltd is reflected under the Corporate division during the current year.
Calculation of Headline Earnings
Audited Audited
Group Group
31 August 31 August
2016 2015
R'000 R'000
Earnings attributable to ordinary equity holders of parent entity - IAS 33 216 623 152 897
- Continuing operations 219 660 152 897
- Discontinued operations (3 037) -
Adjusted for:
Gain on deemed disposal of equity accounted investments - IAS 28 - (2 321)
Gain on disposal of subsidiary - IFRS 10 (744) (2 474)
Losses on disposal of property, plant and equipment - IAS 16 419 145
Net impairment of intangible assets - IAS 38 (4 368) 4 368
Headline earnings 211 930 152 615
- Continuing operations 214 967 152 615
- Discontinued operations (3 037) -
Number of shares in issue 491 339 491 339
Weighted number of shares in issue 491 339 491 339
Diluted number of shares in issue 491 339 491 339
Headline earnings and diluted headline earnings per share (cents) 43.13 31.06
- Continuing operations 43.75 31.06
- Discontinued operations (0.62) -
Highlights compared to the prior year:
Revenue increased by 12% from R672m to R752m.
Operating profit increased by 53% from R186m to R285m.
Earnings per share increased by 42% from 31.12c to 44.09c
Headline earnings per share increased by 39% from 31.06c to 43.13c.
Total assets increased by 26% from R1,3bn to R1,7bn.
Group net asset value increased by 24% from R805m to R1bn.
Net cash generated from operating activities increased by 47% from R51m to R75m.
A dividend of R12,3m was paid to shareholders on 22 February 2016.
Group performance
The Group delivered a record turnover and excellent earnings growth as a result of strong contributions from all the underlying operations and
investments for the year under review.
Group revenue showed strong growth for the reporting year, increasing by 12% from R672m to R752m, mainly due to greater revenue growth achieved from the
Food and Fishing, Technology as well as the Events and Tourism divisions.
The Group's operating profit increased by 53% from R186m to R285m due to consistent organic growth and efficiencies achieved in the Food and Fishing, Technology,
Events and Tourism divisions, as well as strategic investments.
The Group's profit from continuing operations for the year increased by 42% from R149m to R211m as a result of consistent returns from our diversified portfolio.
Group earnings increased by 42% from R153m in the prior year to R217m. Headline earnings per share ("HEPS") increased from 31.06c to 43.13c and earnings per
share ("EPS") increased from 31.12c to 44.09c compared to the prior year.
The Group's asset base increased by 26% from R1,3bn to R1,7bn, mainly due to the organic growth in operations, acquisitions and the increased value in the strategic
investments.
NAV of the Group increased from R805m to R1bn as a result of the excellent underlying operational and investment performance from the diversified
investment base. The net asset value per share increased by 29% from 144.93c to 186.52c compared to the prior year.
As a result of the solid financial performance from the underlying divisions and the requirement of less working capital, net cash from operations increased
by 47% from R51m to R75m.
Food and Fishing
Premier Fishing SA (Pty) Ltd ("Premier Fishing") is the largest black-owned food and fishing Company in South Africa and the most transformed in terms
of its management and employees. Premier Fishing holds medium to long-term fishing rights in west coast rock lobster, south coast rock lobster, small
pelagics, hake deep-sea trawl, hake longline, swordfish, tuna, seaweed and squid and also owns an abalone farm and processesses wild abalone. It also has an
interest in the organic agricultural sector.
Premier Fishing delivered significant growth in revenue, an increase of 15% from R349m to R401m as a result of excellent catch rates in the lobster, squid
and the pelagic divisions and effective vessel scheduling and utilisation. Greater sales volumes, efficiencies, improved pricing and the weaker rand contributed to
the growth in operating profit to R75m (2015: 68m).
The operational performance of the abalone farm continues to improve year on year, which gives Premier Fishing a degree of control to manage consistent production
outputs. Greater sales volumes were achieved this year driven by larger customer demand and better pricing. Expansion plans on the abalone farm is scheduled
to commence during 2017. The expected increase in capacity of the abalone farm is in line with their Vision 2020 Vision.
The Board of AEEI has approved the proposed listing of its Food and Fishing division in the short to medium term.
Technology
The Technology ("IT") division is comprised of businesses that are leaders in their respective niche markets, which have solid client bases with particular focus
on the healthcare and financial services sectors and was a secondary focus on mobile solutions in the industrial sector as well as the energy efficiency.
The IT division's revenues which has a sizeable annuity income base remained solid, at R215m from its underlying operations, which is in line with their
budget.
The IT division achieved steady growth in its operating profit of 6% from R33m in the prior year to R35m. The organic growth is mainly due to the
completion of a major hospital information system implementation at 230 pathology laboratories in South Africa, over the past few years.
Health Care
The companies under the Health Care division, focuses on the manufacturing, sales and marketing of an extensive range of natural chemicals for the food,
agriculture, hygiene and general health sectors.
The Health Care division incurred lower operating losses as a result of the scaled down distribution model. Operating profits were further impacted by the
drought in the agricultural sector and further regulatory work undertaken on the dossiers as well as a greater investment into trials to expand its product
portfolio into the food and sanitation markets.
The scaled down distribution model for pharmaceuticals which was implemented during the year under review is starting to show the necessary results.
The hygiene and food security business obtained the right to be the global manufacturer and distributor from its principal. The business is well positioned
to commence with local manufacturing and penetration into a larger global market. A new distribution agreement was signed with a national distribution
service provider. The outsourced distribution model is beginning to show the necessary results.
Biotechnology
Genius Biotherapeutics ("Genius") South Africa and Africa's largest medical biotechnology company made good progress with its research and development.
The collaboration with the University of Cape Town on the dendritic cell vaccine project enabled the completion of the pre-clinical trials and the
research team submitted its clinical protocol to Medicine Control Council to obtain approval to proceed to Phase 1 human trials.
Genius' management finalised their development studies and updated their production protocols in order to proceed with production next year, within the
erythropoietin project.
Events and Tourism
The Events and Tourism division manages and owns an event planning and production company, espAfrika, and a travel service company, Tripos Travel as well as
the radio station - Magic 828.
The Events and Tourism division delivered excellent revenue growth by achieving a 30% increase from R98m to R127m as a result of a new event being launched
and access into the leisure travel industry.
espAfrika, a Group subsidiary, hosted a very successful 17th Cape Town International Jazz Festival and launched its new owned event - "The Royal Escape
Experience" during the year under review.
AEEI Events and Tourism's operating profit decreased to R5m (2015: R9m profit) as a result of once off investments in new events and restructure of the travel
business as well as the weaker rand. The radio station went live on 1 October 2015 and contributed to the Group's revenue for the year under review and is
managed under the corporate division.
Strategic investments
The Group's strategic investments consist of British Telecoms South Africa (Pty) Ltd ("BT"), Pioneer Foods Group Limited, ("Pioneer"), Sygnia Limited
("Sygnia") and Saab Grintek Defence (Pty) Ltd ("SGD").
AEEI restructured its shareholding in Saab SA (Pty) Ltd; "Saab SA" by disposing of its 5% shareholding in Saab SA and acquiring an equity interest
of 25% plus 1 share in its operating subsidiary SGD, on 29 October 2015. This has impacted the Group's balance sheet by increasing the financial assets
as well as meeting our strategic objective to increase our asset base by leveraging the existing investment portfolio. This investment
provided a healthy dividend return of R16.8m during the year.
The investment in Sygnia was acquired on 14 October 2015 for R10m which subsequently appreciated by 80% in value during the year. A maiden dividend was
obtained from Sygnia in the year under review.
The fully paid-up investment in BT is well positioned to grow consistently over the next few years. The company's earnings increased and dividends
was received during the current year and are expected to continue in the foreseeable future.
Our investment in Pioneer performed well from the date of acquisition. However, owing to the drought and market perception of the possible impact thereof,
the share price was under pressure and we believe this to be a temporary decline. The share value has subsequently shown an improvement at reporting date.
Dividends received from Pioneer amounted to R5.5m.
Significant events:
Other financial assets and other financial liabilities
The increase in other financial assets arises from the acquisition of the equity interest of 25% plus 1 share in SGD, the largest subsidiary of Saab SA
(Pty) Ltd which was concluded on 29 October 2015 for a purchase consideration of R126,5m. The acquisition was funded via a preference share issued at 80% of
prime to the value of R103m, which will be settled by SGD dividends. The balance was settled in cash upon the sale of AEEI's 5% equity in Saab SA (Pty) Ltd
for R20m.
On 14 October 2015, AEEI acquired 1 190 476 (one million one hundred and ninety thousand four hundred and seventy six) shares in Sygnia at R8,40 per share for
a total consideration of R10m. The value of the share as at 31 August 2016 increased to R15,80 per share.
Business combinations
Effective 1 September 2016, the Group acquired 51% of the equity in Kalula Communications (Pty) Ltd trading as "Headset Solutions" for a consideration of
R14m with a cash portion of R4,7m payable on the effective date and balance settled with an issue of Sekunjalo Technology Solutions Limited shares.
The company is involved in headsets and communication devices which enhances the Group's strategy to diversify its IT portfolio.
Efective 1 October 2016, the Group concluded the acquisition of 57% of equity in Puleng Technologies (Pty) Ltd "Puleng" which resulted in the IT division obtaining
control over the company. Puleng is involved with software development which complements the other IT businesses.
The Board is of the view that synergies will arise from these acquisitions which will provide scale for the IT division as we expect to double the
revenue for in 2017.
The Group is unable to quantify the revenue, profit or loss at the acquisition date due to business integration with acquired companies.
Due to the impracticality of the acquisitions close to financial year-end, the fair value of the acquired assets and liabilities are provisional. Additionally the
uncertainty and nature in calculating the warranty and other provisions will be finalised during the measurement period.
Sale of businesses
Included in the financial year end results is the disposal of non-core subsidiaries as part of the continued restructure which were initially included under
the Corporate and Health Care divisions. The net effect of these disposals resulted in a gain on disposal of subsidiaries amounting to R1m. At the date of
sale, the Net asset value ("NAV") of these companies was R4m, of which the consideration received amounted to R5m.
Fair value information
The Group uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:
Level 1: Quoted prices (unadjusted) in active markets for identical assets and liabilities.
Level 2: Other techniques for all inputs which have a significant effect on the recorded fair value and are observable, either directly or indirectly.
Level 3: Techniques which use inputs which have a significant effect on the recorded fair value that are not based on observable market data.
As at 31 August 2016, the Group held the following instruments measured at fair value:
Level 1 Level 2 Level 3 Total
2016 R'000s R'000s R'000s R'000s
Listed shares 303 885 - - 303 885
Unlisted shares - - 552 686 552 686
Biological assets - - 48 169 48 169
Total 303 885 - 600 855 904 740
Level 1 Level 2 Level 3 Total
2015 R'000s R'000s R'000s R'000s
Listed shares 324 674 - - 324 674
Unlisted shares - - 200 311 200 311
Biological assets - - 46 162 46 162
Total 324 674 - 246 473 571 147
Refer to fair value adjustments in the Group's Statement of Comprehensive Income.
Basis of preparation
The condensed consolidated financial statements are prepared in accordance with the JSE Limited Listings Requirements ("JSE") and the requirements of the
Companies Act, 2008 (No. 71 of 2008), as amended, applicable to summarised financial statements. The JSE require financial reports to
be prepared in accordance with the framework concepts, the measurement and recognition requirements of International Financial Reporting Standards ("IFRS"),
the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee and Financial Pronouncements as issued by the Financial Reporting Standards
Council, and also that they, as a minimum, contain the information required by IAS 34 - Interim Financial Reporting. The accounting policies applied in the
preparation of the summarised consolidated financial statements from which the summary consolidated financial statements were derived are in line with IFRS
and are consistent with the accounting policies applied in the preparation of the previous consolidated annual financial statements.
The condensed financial results were prepared by the Group Financial Manager Wakeel McLachlan BCom (Hons), CA(SA) and were not audited by the Group's external
auditors, Grant Thornton Cape Inc.
This summarised report is extracted from audited financial statements, but is not itself audited. The annual financial statements were audited by Grant Thornton
Cape Inc., who expressed an unmodified opinion thereon. The audited annual financial statements and the auditor's report thereon are available for inspection at
the Company's registered office and on the Company's website: www.aeei.co.za. The auditor's report does not necessarily report on all of the information contained
in this announcement. Shareholders are therefore advised that in order to obtain a full understanding of the nature of the auditor's engagement they should obtain
a copy of the auditor's report together with the accompanying financial information from the issuer's registered office. The directors take full responsibility for
the preparation of the condensed financial information, which has been extracted from the underlying annual financial statements.
Any reference to future financial performance included in this announcement has not been reviewed or reported by the company's auditors.
Reporting entity
AEEI is a company domiciled in South Africa. These condensed consolidated annual financial statements for the year ended 31 August 2016 comprises AEEI the
Company and its subsidiaries ("the Group") and interests in associates and joint ventures. AEEI is a black-owned and controlled entity, which holds
interests in six sectors and promotes Broad-Based Black Economic Empowerment and sound corporate governance practices.
Use of judgements and estimates
In preparing these condensed annual financial statements, management made judgements, estimates and assumptions that affect the application of
accounting policies and the reported amounts of assets and liabilities, income and expenses. Actual results may differ from these estimates.
The significant judgements made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as
those that were applied to the audited consolidated financial statements for the year ended 31 August 2015.
Measurement of fair values
The Group has an established control framework with respect to the measurement of fair values. The fair-valuation calculations are performed by the Group's
finance department and operational team on an annual basis. The finance department reports to the Group's chief financial officer. The valuation reports are
approved by the investment committee in accordance with the Group's reporting policies.
Related parties
The Group, in the ordinary course of business, entered into various sales and purchases transactions on an arm's length basis with related parties.
Events after the reporting period
Effective 1 September 2016, the Group acquired 51% of the equity in Kalula Communications (Pty) Ltd. Kalula Communications, trading as Headsets Solutions is
an authorised distributor of premium branded electronics, namely Plantronics, Aastra and Konftel. The business focuses on audio communications equipment and
software, which support VOIP environments, unified communications, mobile use, gaming and music to both corporate and retailer markets which enhances the
Group's strategy to diversify its IT portfolio.
Effective 1 October 2016, the Group acquired 57% of the equity in Puleng Technologies (Pty) Ltd. Puleng provides client centric strategies to manage and
secure "Data" and "Users", supporting clients IT and businesses with a platform to build an efficient, collaborative Governance, Risk and Compliance
program to address IT risks that are facing businesses today. Puleng provides converged infrastructure platform which allows the leveraging of a customer's
compute, storage, virtualisation and management disciplines which complements the other IT businesses.
The Board of AEEI has approved the proposed listing of the food and fishing division in the short to medium term.
Interim company secretary
Ms Cherie Hendricks has been appointed, as the interim company secretary, after the resignation of Mrs Carmelita Arendse. An external resource has been
identified and will be appointed in December 2016.
Future prospects
The AEEI Group continues to build a solid platform for further organic growth and has positioned itself well to increase its investments through further
acquisitions within all the divisions. Management remains focussed on the implementation of its Vision 2020 Vision strategic plan and is well on track to
achieve it targets.
The Group will continue its strategic focus to grow the value of its core operational investments and improve the value-add on our strategic investments.
Dividends
The Board of directors are pleased to announce that it has approved and declared a gross final dividend of 3.30 cents per share for the year ended 31 August
2016 from income reserves. The final dividend amount, net of South African dividend tax of 15% which equates to 0.495 cents per share, is therefore a net
2.805 cents per share for those shareholders that are not exempt from dividend tax.
The number of ordinary shares in issue at the declaration date is 491 339 434 and the income tax number of the company is 9314001034.
The salient dates of this dividend distribution are:
Gross dividend (cents per share) 3.30
Dividend net of dividend withholding tax (cents per share) 2.805
Last day to trade cum dividend Tuesday, 7 February 2017
Trading ex-dividend commences Wednesday, 8 February 2017
Record date Friday, 10 February 2017
Date of payment Monday, 13 February 2017
Share certificates may not be dematerialised between Wednesday, 8 February 2017 and Friday, 10 February 2017, both days inclusive.
Appreciation
We wish to thank our staff, Group executives, management, our Board of directors, as well as our strategic partners, stakeholders and business partners for
their loyalty and dedication in contributing to the success of the Group.
Prof Vukile Mehana Mr Khalid Abdulla
Non-executive chairman Chief executive officer
Cape Town
26 October 2016
Directors
*Khalid Abdulla (Chief executive officer); Prof Vukile Mehana (Non-executive chairman); Johannes Mihe Gaomab; Salim Young (Deputy chairman); Aziza Amod;
Takudzwa Hove; *Cherie Felicity Hendricks; *Chantelle Ah Sing; Zenariah Barends
*Executive directors
Interim company secretary: Cherie Felicity Hendricks
Registered address: Quay 7, East Pier, Victoria & Alfred Waterfront, Cape Town 8001
Email: Cherie@aeei.co.za
Transfer secretaries: Link Market Services South Africa (Pty) Ltd,
19 Ameshoff Street, 13th Floor, Rennie House, Braamfontein, Johannesburg 2000
Auditors: Grant Thornton Cape Inc.
Sponsor: PSG Capital, Stellenbosch
Date: 26/10/2016 09:45:00 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,
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