Sharenet Sites 
Sharenet Sites
Revised Trading Statement And Restatement Of Financial Information
AFROCENTRIC INVESTMENT CORPORATION LIMITED
Incorporated in the Republic of South Africa
Registration Number: 1988/000570/06
JSE Code: ACT
ISIN: ZAE 000078416
(“AfroCentric” or “the Company” or “the Group”)
REVISED TRADING STATEMENT AND RESTATEMENT OF FINANCIAL INFORMATION
Introduction
Further to the trading statement released on SENS on 14 February 2017, in terms of paragraph
3.4(b)(iv) of the JSE Limited Listings Requirements, the Board of Directors of AfroCentric (“the
Board”) hereby advise AfroCentric shareholders (“Shareholders”) that certain International Accounting
Standard (“IAS”) compliance disclosures have now been brought to the Board’s attention, which, in
the first instance, demands
- a restatement of the Group’s audited financial results for the year ended 30 June 2016 (“2016
Audited Financial Results”), ; and
- a revised trading statement, insofar as the Group’s expected interim results for the six months ended
31 December 2016 (“Interim Results”) are concerned.
The Board has been advised by the Company’s auditors (“Auditors”) that in the presentation of the
2016 Audited Financial Results, (including the 2016 Annual Report) the accounting treatment and
disclosures in relation to the interest bearing Sanlam Conditional Put Option Obligation (“Sanlam Put
Option Obligation”) at 30 June 2016 is inconsistent with the requirements of paragraph 23 of IAS 32.
The Auditors have now advised that any interest accrued on the Sanlam Put Option Obligation must
be accounted for through the Statement of Comprehensive Income and not as previously instructed
directly to the Conditional Put Option Reserve and Obligation.
Given the extent of the adjustment (R25 million) required to regularise the accounting treatment for
the year ended 30 June 2016, a restatement of the 2016 Audited Financial Results is necessary. The
interest arising on the Sanlam Put Option Obligation for such period will now be accrued and reflected
as a finance charge in the June 2016 Statement of Comprehensive Income in terms of IAS 39.
The revised accounting treatment of the finance charge (R23 million) and disclosure requirement will
now also be applied to the Interim Results, requiring a revised trading statement, as the trading
statement released on SENS on 14 February 2017 did not take this revised accounting treatment into
account.
Shareholders are reminded that the Sanlam Put Option Obligation only arises should the profits of the
Group’s principal subsidiary, ACT Healthcare Assets Proprietary Limited (“AHA”), fail to attain a
certain level of profits (as defined) for the year ending 30 June 2017. The Board is however satisfied
that AHA’s profits (as defined) should be such, that circumstances which would trigger the right to
exercise such Put Option Obligation would become irrelevant.
Restated trading statement
Through the revised trading statement, Shareholders will have a better appreciation of the impact of
the interest accrual on the Sanlam Put Option Obligation, now charged through the Statement of
Comprehensive Income, in compliance with the framework of IAS 39.
After applying the revised accounting requirements set out above, AfroCentric expects to report the
following earnings in the presentation of its Interim Results:
Period of 6 months ended Period of 6 months ended Period of 6 months
31 December 2016 (including 31 December 2016 (per ended
interest on the Conditional Put previous Trading 31 December 2015
Obligation) Statement)
EPS 17.42 – 17.96 21.38 – 22.28 17.98
HEPS 16.95 – 17.49 20.91 – 21.81 18.10
The table of comparative earnings per share translates as follows:
- earnings per share for the six months ended 31 December 2016 as set out above will be
between 17.42 cents and 17.96 cents, reflecting a decrease of between 3.11% and 0.11% in
comparison to 17.98 cents per share reported in the prior comparative period; and
- headline earnings per share for the six months ended 31 December 2016 as set out above will
be between 16.95 cents and 17.49 cents, reflecting a decrease of between 6.36% and 3.36% in
comparison to 18.10 cents per share reported in the prior comparative period.
Restated financial results for the year ended 30 June 2016
The effect of the above restatement on the 2016 Audited Financial Results is as follows:
Year ended 30 Year ended 30 June Change
June 2016 2016 (%)
(Restated) (as previously reported)
R’000 R’000
Statement of Comprehensive
Income
1
Finance cost (29 507) (4 547)
Profit for the year after taxation 193 614 218 574
Other comprehensive income 5 029 5 029
Comprehensive net income for the
year 198 643 223 603
EPS 26.28 30.79 14.65
HEPS 28.43 32.94 13.69
Statement of Changes in Equity
Balance at beginning of the period 1 167 079 1 167 079
Issue of share capital 445 590 445 590
Share-based awards reserve 6 444 6 444
Net profit for the year 145 320 170 280
Transferred to Conditional put
option reserve 24 960 -
Profit attributable to minorities 53 323 53 323
Premium on subscription 246 738 246 738
Changes in ownership 456 262 456 262
1
Conditional put option reserve (703 000) (727 960)
Transferred from distributable
reserves (24 960) -
AHL minorities share buy-back (122 164) (122 164)
Increase in shareholding of
Klinikka (525) (525)
Distribution to shareholders (121 963) (121 963)
Distribution to minorities (9 522) (9 522)
Balance at end of the period 1 563 582 1 563 582
Statement of financial position
Conditional put option obligation 727 960 727 960
Conditional put option reserve (727 960) (727 960)
Total equity and liabilities 3 040 716 3 040 716
Notes:
1. To take into account the interest charged through the Statement of Comprehensive Income and
not previously endorsed through an interest adjustment directly through equity
The information in this revised trading statement has not been reviewed or reported on by the
Auditors. The Interim Results are expected to be published on SENS on or before 31 March 2017 and
will contain full details of the restatement to the 30 June 2016 results.
Johannesburg
27 March 2017
Sponsor
Sasfin Capital (a division of Sasfin Bank Limited)
Date: 27/03/2017 03:40:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
