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Unaudited Interim Financial Results for the six months ended 31 January 2017 & 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")
UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL RESULTS
FOR THE SIX MONTHS ENDED 31 JANUARY 2017 AND DIVIDEND DECLARATION
OPERATIONAL FEATURES OF THE PERIOD
- A pleasing performance from international operations despite Rand strength
- Fixed odds betting performed in line with expectations
- Tote betting reflective of deteriorating local economic conditions
- Interbet made a pleasing contribution
- Continued investment in horseracing facilities
- Diversification of income sources ongoing
FINANCIAL FEATURES OF THE PERIOD
- Earnings per share up 4% to 90,78 cents
- Headline earnings per share up 3% to 90,19 cents
- Headline earnings per share in constant currency up 26% to 109,80 cents
- Interim dividend per share maintained at 34,00 cents
- Sound financial position
RESULTS OVERVIEW
The Group result is characterised by a pleasing performance from international revenue sources and real
growth from the fixed odds business and from associate company Interbet. Our tote operations disappointed
as domestic economic conditions deteriorated.
International operations contributed combined pre-tax income of R91,3 million, an actual increase of 18%
at prevailing exchange rates or 38% on a constant currency basis. Phumelela's international operations
are expected to provide a foreign currency hedge and a good source of diversified income across multiple
geographies.
As detailed in the financial analysis, the strengthening of the South African Rand understated the
excellence of the offshore performance in foreign currency. For illustrative purposes, earnings are also
presented with supplementary information in constant currency.
Initiatives over many years to diversify locally, internationalise and acquire complementary growth
generators is paying dividends in the form of a better spread of earnings, expanded choice for our many
customers, and an increased size of the Group from a financial and market value point of view.
Diversification has also resulted in associate income from local and international sources becoming an
increasingly meaningful contributor to the Group's performance.
What has not changed is the fact that Phumelela is, and will continue to be, the leading racecourse owner,
betting operator and racing media provider in South Africa. Horseracing is at the heart of what Phumelela
is and the foundation for our successful and expanding international operations.
The economy in South Africa is weak and the political situation unsettled. Recent financial results from
the main banking Groups point to stress in the real economy, with consumer purchasing power under strain.
Against this challenging backdrop, it is imperative that Phumelela keeps its betting offerings relevant,
fresh, and attainable to all. A digital footprint is essential as the Group embraces changing technology
and customer preferences. Our online betting availability is beneficial for customers with finite
disposable income but who wish to enjoy a modest wager yet maximise their value for money by eliminating
the cost of transport to a betting shop. Nevertheless, having a bricks-and-mortar presence will always be
necessary as a majority of our customers still prefer this as it provides a venue for social interaction.
As part of the Group's strategy to minimise the cost base, the tote and fixed odds businesses are
optimising their operating models wherever feasible to cohabit for mutual benefit as there is
interdependence between tote and fixed odds betting.
Product development in tote and fixed odds is ongoing whilst the footprint continues to grow. The Group
now has 80 fixed odds retail shops, up from 75 as at July 2016. The franchise model, in which Phumelela
provides the expertise and infrastructure for previously disadvantaged individuals to make a successful
career in the betting business, is a small part of the Group but developing well with 8 franchise outlets
now operational.
The acquisition of 50% of Supabets is very much in line with the Group's espoused strategy. Supabets is
planning to re-introduce horse racing, relying on a managed service supplied by Betting World. In turn,
Betting World will introduce Supabets' sports and in-play betting products relying on a managed service
supplied by Supabets. Supabets has large size format betting shops, offering a unique and engaging customer
experience. Scope for significant synergies between the two businesses have been identified with financial
benefits anticipated to flow in the medium to long term. As the investment in Supabets only became
effective on 1 March 2017, Supabets shall therefore contribute for the remaining five months of the Group's
2017 financial year.
Phumelela continues to invest to support a quality racing experience for both local and international
consumers of our product.
GROUP FINANCIAL ANALYSIS
Income increased at a slower pace in fixed odds but in line with expectation whilst operating profits
increased by 15%. The local tote and horseracing operations recorded a decline in income and a 48% rise
in loss from operations. Interbet, in which the Group had a 26% stake for the period, increased profits
by 23%.
International operations performed strongly with the combined pre-tax profit from Phumelela International
and Premier Gateway International ("PGI") increasing by 18% on increased demand for the South African
thoroughbred horseracing export product and pari-mutuel betting on the Isle of Man.
Currency effects were pronounced in the period under review.
For the six months ended 31 January 2017, the rand averaged R17,54 to the pound compared to R21,54 in the
comparative period, a 19% gain. A net foreign exchange loss of R2,5 million further negatively impacted
earnings.
Reported pre-tax profit from Phumelela International and PGI is R91,3 million, up 18% from the
R77,5 million in the comparative period and representing an increase in Rand of R13,8 million. The currency
effect from the stronger rand exceeded R15,7 million and therefore an actual increase of 18% translates
into 38% on a constant currency basis.
Group income grew by 4% to R819,1 million, of which South African sports betting and media rights income
declined by 2% to R645,5 million and international income grew by 37% to R173,6 million.
Combined local and international operating expenses, prize monies and levies increased by 2% to
R703,2 million. Local prize monies increased in line with the formula set out in the stakes agreement with
the Racing Association.
The 23% increase in the depreciation charge to R35,4 million for the South African operations reflects
ongoing investment in modernisation and expansion. Of the R33,3 million in capital expenditure in South
African operations, R18,1 million was spent on horseracing infrastructure and tote betting and
R15,2 million in fixed odds.
The combined South African operations recorded an operating loss of R14,2 million, up from a loss of
R3,5 million. After finance costs of R8,5 million, but before share of profit from associate Interbet,
the loss from operations increased to R22,7 million from R6,9 million.
International pre-tax profit, before share of profits from jointly owned PGI, increased by 7% to
R39,4 million.
Equity accounted profits benefited from excellent performances by PGI and Interbet, increasing by 29% to
R56,2 million.
Group pre-tax profit, before the fair value adjustment of R0,3 million on held-for-sale ASL investment in
Mauritius, was flat at R72,8 million. International operations contributed 125% of Group pre-tax profit.
Net attributable income increased by 5% to R68,0 million, assisted by a lower effective tax rate.
Headline earnings increased by 4% to R67,6 million. The effect of currency on translation of foreign income
was R15,7 million or R14,7 million net of tax. For illustrative purposes, constant currency headline
earnings would therefore have been R82,2 million, which would have represented an increase of 27%.
There was a minimal increase of 0,5% in the weighted average number of shares in issue and a 0,4% increase
on a fully diluted basis, reflecting share options exercised.
Earnings per share grew by 4% to 90,78 cents and headline earnings per share grew by 3% to 90,19 cents.
Constant currency headline earnings per share grew by 26% to 109,80 cents.
The Group retained a strong financial position with net debt of R49,1 million, representing a debt to
equity ratio of only 9%. The Group has sufficient cash flow and borrowing capacity to meet its ongoing
operational needs.
Phumelela has a combination of recurring income, in the form of broadcast rights, variable but reasonably
consistent transactional income, and incremental income from investment in growth and development of
international and local tote, fixed odds and media business.
Cash generated from operating activities declined to R7,9 million after an increase in working capital of
R43,7 million, largely a consequence of seasonal factors and the timing of receipt of income due from
abroad.
Dividends received from equity accounted investees increased to R63,0 million from R38,8 million.
Dividends paid to shareholders amounted to R52,2 million.
Total assets increased to R994,1 million, which includes property, plant and equipment at a carrying value
of R457,3 million, goodwill and intangibles at R68,0 million, and equity accounted investees valued at
R68,6 million.
Attributable equity of R529,3 million represents a net asset value per share of 698,49 cents.
Annualised return on opening equity remained stable at 27%, substantially exceeding cost of capital.
SOUTH AFRICAN OPERATIONS
Tote betting decreased by 7% to R1,7 billion, reflective of a tougher consumer environment. Tote betting
on local horseracing nonetheless maintained a 50% share of the total betting turnover with tote betting on
international racing also maintained at 18%. Interactive continued to increase its share of bets placed to
31%, in line with Group strategy and market trends.
A highlight of horseracing in the period was the first ever Sun Met at Kenilworth, sponsored by Sun
International as the title sponsor and co-sponsored by G.H. Mumm. This prestigious race day carried record
prize money with each race running an excellent field of horses. Events such as the Sun Met underscores the
fact that horseracing holds appeal both as on-course entertainment for the family and for those viewing and
betting locally and, increasingly, overseas.
Fixed odds betting continued to make good progress, with numbers betting particularly popular. Fixed odds
betting amounted to R964 million in the period. Net fixed odds betting income increased by 8% to
R139,3 million with both soccer and numbers net betting income growing by 17% each. Consequently, the net
betting income margin improved to 14,4% with a healthy margin obtained across all three fixed odds
categories, including horseracing. The acquisition of 51% of Afribet Proprietary Limited (renamed Betting
World Eastern Cape) has given Phumelela a fixed odds retail presence in 8 betting shops in the Eastern Cape.
INTERNATIONAL OPERATIONS
International operations contributed combined pre-tax income of R91,3 million, an actual increase of 18% at
prevailing exchange rates or 38% on a constant currency basis. Phumelela's international operations are
expected to provide a foreign currency hedge and a good source of diversified income across multiple
geographies.
PGI, located on the Isle of Man, made a very pleasing contribution during the period. Demand for the export
of live broadcast of South African horse races was buoyant. The agreement with Arena Racing Company is
now in place.
SHARE CAPITAL
There has been no change in the authorised share capital of the Company during the period.
Issued share capital increased by 1 236 867 shares, issued from treasury stock to fulfil obligations in
respect of shares exercisable per the executive option schemes. At 31 January 2017, issued share capital
amounted to 75 772 352 shares, net of 1 329 533 treasury shares. With effect from 6 February 2017,
16 602 230 rights offer shares were issued in part to fund the purchase of Supabets SA Holdings Proprietary
Limited ("Supabets"). A further 8 796 443 shares were issued to the seller in terms of the Supabets
purchase consideration. As at the date of this financial report, Phumelela had total shares in issue,
after deducting treasury shares, of 101 171 025 ordinary shares.
CONDENSED SEGMENTAL ANALYSIS
The Group stages horseracing events in South Africa, offers betting opportunities on South African and
international sports and numbers, and exports televisual horseracing content internationally. Reporting
disclosure corresponds to management reporting lines.
Unaudited Unaudited Audited
6 months 6 months 12 months
31 Jan 31 Jan 31 Jul
% 2017 2016 2016
Change R'000 R'000 R'000
Local sports betting and media gross income (2) 645 457 659 746 1 226 382
International ventures gross income 37 173 599 126 726 274 415
Total local and international income 4 819 056 786 472 1 500 797
Local tote and fixed odds net betting and other income 1 621 148 617 268 1 222 910
International other income 8 142 633 132 216 274 415
Total local and international net income 2 763 781 749 484 1 497 325
Local expenses, stakes and levies 2 (635 358) (620 726) (1 255 160)
International expenses 8 (103 274) (95 588) (199 067)
Total expenses 3 (738 632) (716 314) (1 454 227)
Local operating loss 311 (14 210) (3 458) (32 250)
Local finance costs 150 (8 530) (3 412) (9 368)
Local loss from operations 231 (22 740) (6 870) (41 618)
International pre-tax profit 7 39 359 36 628 75 348
International and local equity accounted profits 29 56 189 43 413 94 694
Total Group pre-tax profit before fair value
adjustment on ASL investment 72 808 73 171 128 424
CAPITAL COMMITMENTS
Commitments in respect of capital expenditure approved by directors.
2017 2016
R'000 R'000
Contracted for 4 364 5 062
Not contracted for 108 222 83 140
Capital commitments will be financed out of cash and cash equivalents on hand or borrowing facilities as
and when required.
INVESTMENTS
50% ownership of Supabets SA Holdings Proprietary Limited was transferred to Phumelela with effect from
1 March 2017. The purchase consideration of R437 million was settled by way of a rights offer in the
amount of R284 million, shares issued to the sellers and the rest in cash.
With effect from 1 March 2017, a further 24% equity interest in Interbet was acquired increasing
Phumelela's shareholding to 50%.
MATTERS OF CORPORATE INTEREST AND LITIGATION
In terms of disclosure contained in the annual financial statements for the year ended 31 July 2016 there
are no further developments in this regard.
Shareholders are reminded that the outcome of the relevant actions noted under Corporate Interests and
Litigation, as described in the annual financial statements, remains uncertain and may have an impact on
future earnings.
REPORTING EQUITY
Phumelela Gaming and Leisure Limited is a company domiciled in South Africa. The condensed consolidated
interim financial statements as at 31 January 2017 comprises of the company and its subsidiaries and the
Group's interests in equity accounted investees and joint operations.
BASIS OF PREPARATION
These interim condensed consolidated financial statements have been 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 Reporting Pronouncements as issued by Financial Reporting Standards Council, and include
disclosure as required by IAS 34 Interim Financial Reporting and the Companies Act of South Africa. They do
not include all the information required for a complete set of IFRS financial statements. In preparing
these interim condensed consolidated financial statements, management make judgements, estimates and
assumptions that affect the application of accounting policies and the reported amounts of assets and
liabilities, income, and expense. 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 applied to the consolidated financial
statements as at and for the year ended 31 July 2016.
Mr B. McLoughlin C.A. (S.A.) Chief Financial Officer was responsible for supervising the preparation of
the interim condensed consolidated financial statements and preparing the summarised financial statements.
SUBSEQUENT EVENTS
There are no significant subsequent events that have an impact on the financial information at
31 January 2017.
RELATED PARTIES
Other than in the normal course of business, there have been no significant transactions during the period
with equity accounted investees, joint operations, and other related parties.
SOCIAL RESPONSIBILITY
The amended B-BBEE Codes of Good Practice have set a challenging bar with the new weightings. Empowerdex
has audited the Group as a level 4 with Empowering Supplier status, and the process has allowed the Group
to identify areas for improvement.
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
Mr P. Anastassopoulos was appointed to the Board effective from 8 March 2017. There were no other changes
to the composition of the Board.
PROSPECTS
The acquisition of 50% of Supabets opens an exciting new chapter for Phumelela and we have already
identified opportunities for the extraction of synergistic benefits and growth with our partners. Supabets
will contribute for the remaining five months of the financial year and is anticipated to be earnings per
share accretive after allowing for a higher weighted average number of shares in issue. The circular to
shareholders, dated 19 August 2016, provides granular detail on the pro forma financial effects in this
regard.
Also with effect from 1 March 2017, the Group increased its shareholding in Interbet from 26% to 50%. The
increased shareholding was funded by bank debt and is also expected to be earnings per share accretive.
The local tote operations are under pressure in a difficult economic climate but the fixed odds operation
is leveraging positively off the Group's investment in facilities and the popularity of the product
offering. Cost savings and managerial efficiencies are being implemented.
International operations, comprising the export of live televisual South African horseracing, the import
of live televisual international horseracing, and pari-mutuel betting through PGI on the Isle of Man, are
doing well. Real growth in foreign currency income is anticipated for the full year.
The Group is targeting growth in earnings per share for the year, the extent of which will be dependent
on foreign exchange movements.
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 an interim gross cash dividend from income reserves of
34,00 cents per share (27,20 cents per share net of dividend withholding tax at a rate of 20%) payable to
shareholders recorded in the register on Friday, 26 May 2017. The issued share capital at the declaration
date is 102 500 558 ordinary shares. Shareholders are advised that the last date to trade "cum dividend"
will be Tuesday, 23 May 2017. As from commencement of business on Wednesday, 24 May 2017 all trading in
Phumelela shares will be "ex dividend". Payment will be made on Monday, 29 May 2017. Share certificates may
not be dematerialised or rematerialised between Wednesday, 24 May 2017 and Friday, 26 May 2017, 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
21 April 2017
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Unaudited Unaudited Audited
6 months 6 months 12 months
31 Jan 31 Jan 31 Jul
% 2017 2016 2016
Change R'000 R'000 R'000
Income
- Local operations (2) 645 457 659 746 1 226 382
- International operations 37 173 599 126 726 274 415
4 819 056 786 472 1 500 797
Gross betting income
- Local operations (4) 595 547 617 803 1 198 796
Net betting income
- Local operations (4) 479 522 497 189 965 551
Other operating income
- Local operations 13 134 686 119 576 252 603
- International operations 7 141 992 132 200 273 840
Investment income
- Local operations 6 940 503 4 756
- International operations 641 16 575
Net income 2 763 781 749 484 1 497 325
Operating expenses and overheads
- Stakes 1 (98 220) (96 790) (202 871)
- Local operations 1 (501 702) (495 217) (991 104)
- International operations 8 (103 266) (95 447) (198 781)
Profit before finance costs, income tax,
depreciation and amortisation (2) 60 593 62 030 104 569
Depreciation and amortisation 23 (35 444) (28 860) (61 471)
Profit from operations (24) 25 149 33 170 43 098
Finance costs
- Local operations 150 (8 530) (3 412) (9 368)
Profit before share of profit of
equity accounted investees (44) 16 619 29 758 33 730
Share of profit of equity accounted investees 29 56 189 43 413 94 694
Profit before fair value adjustment 72 808 73 171 128 424
Fair value adjustment to investment (341) 2 001 5 578
Profit before income tax expense (4) 72 467 75 172 134 002
Income tax expense (56) (4 472) (10 199) (12 912)
Profit for the period 5 67 995 64 973 121 090
Other comprehensive income net of taxation
Items that may subsequently be reclassified to
profit or loss
- Exchange differences on translating
foreign operations 274 393 105 (579)
Total comprehensive income for the period 5 68 388 65 078 120 511
Profit attributable to:
Ordinary equity holders of the parent 5 67 995 64 973 121 944
Non-controlling interest (854)
Profit for the period 5 67 995 64 973 121 090
Total comprehensive income attributable to:
Ordinary equity holders of the parent 5 68 388 65 078 121 365
Non-controlling interest (854)
Total comprehensive income for the period 5 68 388 65 078 120 511
Earnings per ordinary share (cents)
- Basic 4 90,78 87,18 163,62
- Diluted 4 86,16 82,66 155,01
SUPPLEMENTARY STATEMENT OF COMPREHENSIVE INCOME INFORMATION
Unaudited Unaudited Audited
6 months 6 months 12 months
31 Jan 31 Jan 31 Jul
% 2017 2016 2016
Change R'000 R'000 R'000
Reconciliation of headline earnings
Earnings attributable to equity holders of parent 5 67 995 64 973 121 944
Adjusted for:
Net (profit)/loss on disposal of property,
plant and equipment (612) 28 916
Tax effect 171 (8) (256)
Headline earnings 4 67 554 64 993 122 604
Headline earnings per share (cents) 3 90,19 87,21 164,51
Diluted headline earnings per share (cents) 4 85,61 82,69 155,85
Net asset value per share (cents) 10 698,49 636,17 688,33
Reconciliation of headline earnings to adjusted
headline earnings
Headline earnings 67 554 64 993 122 604
Constant currency adjustment 14 682
Adjusted headline earnings* 27 82 236 64 993 122 604
Adjusted headline earnings per share (cents)** 26 109,80 87,21 164,51
Dividend to shareholders
Interim dividend
Dividend per ordinary share (cents) 34,00 34,00 34,00
Final dividend
Dividend per ordinary share (cents) 70,00
Number of shares in issue 75 772 352 74 525 485 74 535 485
Weighted average number of shares in issue
for basic and headline earnings per share calculation 74 898 327 74 525 485 74 528 006
Weighted average number of shares in issue for
diluted earnings per share calculation 78 913 559 78 599 551 78 669 669
* Adjusted headline earnings in constant currencies is the current year local earnings, plus the
re-measurement of current year foreign denominated earnings, translated at the prior year average
exchange rate for the equivalent period. This has the effect of adjusting current year earnings by
eliminating the effect of fluctuations in exchange rates over the period. Comparative figures have not
been re-translated for these changes in foreign exchange effects.
** Adjusted headline earnings per share at constant currencies is the adjusted headline earnings in
constant currencies as referred to above (see*) divided by the weighted average number of shares in
issue for the period. Comparative figures have not been re-translated for these changes in foreign
exchange effects.
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Unaudited Unaudited Audited
6 months 6 months 12 months
31 Jan 31 Jan 31 Jul
2017 2016 2016
R'000 R'000 R'000
ASSETS
Non-current assets 676 856 588 338 635 466
Property, plant and equipment 457 298 452 723 458 914
Goodwill 15 206 12 362 15 206
Intangible assets 52 816 52 127 51 455
Interest in equity accounted investees 68 620 56 396 75 460
Investments 692 692 692
Long-term secured loans 71 044 11 128 24 790
Deferred taxation asset 11 180 2 910 8 949
Current assets 317 282 275 573 308 484
Inventories 2 772 1 864 1 920
Trade and other receivables 173 575 148 771 137 849
Defined benefit funds 8 183 7 075 8 183
Income tax receivable 15 016 10 082 19 233
Assets held for sale 28 283 25 047 28 624
Cash and cash equivalents 89 453 82 734 112 675
Total assets 994 138 863 911 943 950
EQUITY AND LIABILITIES
Total equity 529 264 474 106 513 051
Share capital and premium 1 894 1 863 1 863
Retained earnings 527 419 472 001 511 630
Non-distributable reserves (49) 242 (442)
Non-current liabilities 123 187 68 226 64 489
Deferred taxation liability 412 4 652 1 531
Finance lease liability 179 63
Borrowings 122 775 63 395 62 895
Current liabilities 341 687 321 579 366 410
Trade and other payables 305 079 278 236 310 095
Bank overdrafts 13 358 21 831 35 005
Short term borrowings 2 400 2 400 2 926
Contingent consideration liability 707 707 707
Income tax payable 5 113 1 683
Betting dividends payable 15 030 18 405 15 994
Total equity and liabilities 994 138 863 911 943 950
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
Unaudited Unaudited Audited
6 months 6 months 12 months
31 Jan 31 Jan 31 Jul
2017 2016 2016
R'000 R'000 R'000
Net cash (outflow)/inflow from operating activities (45 422) (431) 38 594
Cash generated by operations 51 625 67 537 113 046
Movements in working capital (43 748) (9 395) 29 949
Cash generated by operating activities 7 877 58 142 142 995
Income tax paid (175) (10 965) (30 306)
Investment income received 7 581 519 5 330
Finance costs paid (8 530) (3 412) (9 368)
Dividends to shareholders (52 175) (44 715) (70 057)
Net cash (outflow)/inflow from investing activities (15 643) 1 277 (19 549)
Acquisition of property, plant and equipment and (33 282) (37 585) (76 443)
intangible assets
Proceeds on disposal of property, plant and equipment
and intangible assets 864 633 2 083
Acquisition of a subsidiary (1 710)
Investment in equity accounted investee and contingent
settlements on investments 3 3
Loans advanced (46 254) (525) (14 448)
Dividends received from equity accounted investees 63 029 38 751 70 966
Net cash inflow from financing activities 59 097 13 491 12 743
Finance lease payments (257) (309) (557)
Net borrowings raised 59 354 13 800 13 300
Net (decrease)/increase in cash and cash equivalents (1 968) 14 337 31 788
Effect of exchange fluctuations on cash and cash equivalents 393 105 (579)
Cash and cash equivalents at beginning of period 77 670 46 461 46 461
Cash and cash equivalents at end of period 76 095 60 903 77 670
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Equity
attribu-
Non- table to Non-
distri- ordinary control-
Share butable Retained hare- ling Total
Capital reserves earnings holders interest equity
R'000 R'000 R'000 R'000 R'000 R'000
Balance at 31 July 2015 1 863 137 445 743 447 743 447 743
Total comprehensive income 105 64 973 65 078 65 078
for the period
- Profit for the period 64 973 64 973 64 973
- Foreign currency translation
reserve 105 105 105
Transactions with owners recorded
directly in equity
- Share based payment 6 000 6 000 6 000
- Dividends paid to equity holders (44 715) (44 715) (44 715)
Balance at 31 January 2016 1 863 242 472 001 474 106 474 106
Total comprehensive income for
the period (684) 56 971 56 287 (854) 55 433
- Profit for the period 56 971 56 971 (854) 56 117
- Foreign currency translation
reserve (684) (684) (684)
Transactions with owners recorded
directly in equity
- Share based payment 8 000 8 000 8 000
- Purchase of controlling interest
in a subsidiary 854 854
- Dividends paid to equity holders (25 342) (25 342) (25 342)
Balance at 31 July 2016 1 863 (442) 511 630 513 051 513 051
Total comprehensive income
for the period 393 67 995 68 388 68 388
- Profit for the period 67 995 67 995 67 995
- Foreign currency translation reserve 393 393 393
Transactions with owners recorded
directly in equity
- Shares issued in terms of the
share option scheme 31 (31)
- Dividends paid to equity holders (52 175) (52 175) (52 175)
Balance at 31 January 2017 1 894 (49) 527 419 529 264 529 264
Directors: M P Malungani (Chairman), W A du Plessis* (Group Chief Executive),
A W Heide* (Finance Director and COO), P Anastassopoulos, 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)
Company Secretary: F. Moloi (Mrs)
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
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