Wrap Text
Reviewed Provisional Condensed Consolidated Financial Results for the year ended 30 June 2017
ROLFES HOLDINGS LIMITED
(Registration number 2000/002715/06)
Incorporated in South Africa
Share Code: RLF
ISIN: ZAE000159836
(“Rolfes” or “the Group”)
www.rolfesza.com
REVIEWED PROVISIONAL CONDENSED CONSOLIDATED FINANCIAL RESULTS
FOR THE YEAR ENDED 30 JUNE 2017
KEY FEATURES
* Prior year and interim results restated to correct material errors
* Compared to restated results revenue from continuing operations increased by 9,7% to R1,437
billion
* Compared to restated results, normalised operating profit from continuing operations increased
by 5,2 % to R 138,0 million
* Compared to restated results normalised headline earnings per share from continuing operations
increased by 8,1% to 50,5 cents per share
* Silica mine operation discontinued
* Cash generated from operating activities improved by 22,8% to R128,1 million
* Full year dividend declared increased by 33,3% to 8 cents per share
COMMENTARY
STRATEGIC OVERVIEW
Rolfes is a black empowered platform chemical group targeting the need for food security, clean
water and manufacturing demand through its strategically placed divisions being agricultural,
chemicals, colour, food, and water, expanding proactively in domestic, developed and foreign
emerging markets.
As part of its core organic growth strategy, the Group concentrates on the expansion of both its
specialist non-commodity low volume high margin product ranges and commodity product ranges.
It is proactively increasing its geographical footprint into various markets whilst targeting the optimal
leveraging of its current cost and distribution platforms. The Group seeks to acquisitively expand its
current divisions by targeting high barrier to entry specialist chemical companies.
GROUP PRODUCT OFFERING AND DIVISIONAL STRUCTURE
The Group manufactures and distributes a diverse range of market-leading, high-quality chemical,
organic and inorganic products to various industries.
The Agricultural division develops, manufactures and distributes products that promote plant root,
and foliar health, soil nutrition, disease prevention and control and various other agricultural
remedies into the agriculture industry.
The Industrial division previously comprised both Chemicals and Colour. The management structure
changed during the year under review and is now reported separately; the comparative has been
split accordingly.
The Chemicals division distributes various products and additives including solvents, lacquer
thinners, surfactants, cleaning solvents, water treatment products, creosotes and waxes into the
industrial manufacturing, construction and water industry. The division further develops,
manufactures and provides leather chemicals and treatment solutions into the leather tanning
industry.
The Colour division develops, manufactures and distributes various organic and inorganic pigments
and dispersion products including additives, in-plant and point-of-sale dispersions, into the inks and
paints industry.
The Food division distributes imported and locally manufactured products to the food and beverage,
bakery, dairy and pharmaceutical industries.
The Water division provides specialised water purification solutions and products to the industrial
mining petrochemical and commercial cooling markets.
The Rolfes Silica operation, discontinued during the year under review and previously included in
the Water division, manufactured and distributed pure beneficiated silica to the mining,
metallurgical, fertilizer, water-filtration and construction industries.
The Group’s international footprint and customer base extends to Asia, the rest of Africa, Eastern
and Western Europe, with operations currently in Botswana, Zambia, and Romania.
GROUP FINANCIAL REVIEW
All references to June 2016 constitute a reference to restated results post restatements detailed
later in this announcement.
Group revenue increased by 8,8% to R1,485 billion (June 2016: R1,365 billion). Continuing
operations revenue increased by 9,7% to R 1,437 billion (June 2016: R1,310 billion). Revenue was
negatively impacted by the poor economic environment and drought conditions but contributed
positively to growth except in the water division due to further delays in tender awards. The effect
of the Food division since acquisition on 1 October 2015 continues to be accretive to the overall
performance of the Group.
The revenue for the discontinued Silica operation declined by 13,5% to R47,6 million (June 2016:
R55,0 million) due to the depressed mining, fertiliser and water filtration industry and severe drought
conditions.
Gross profit increased by 5,6% to R299,3 million for continuing operations (June 2016: R283,4
million) and resulted in a margin of 20,8% slightly down on the 2016 year of 21,6%. The reduction
in margin % is mainly due to the increased weighting of the Food division which trades at lower
margins in comparison to other divisions.
Operating profit from continuing operations, before once off impairments and non-recurring costs,
increased by 5,2% to R138,0 million (June 2016: R131,2 million) at a margin of 9,9% of revenue
(June 2016: 10,0%). Once off impairments and write downs impacting continuing operations on an
operating profit level amounted to R22,8 million. Included is a R9,0 million once off write downs and
impairments relating to the previously manufactured low margin lead chrome product lines in the
Colour division discontinued during 2016 with products disposed in the 2017 interim period and the
rehabilitation cost of the Alberton Resin plant site discontinued previously of R1,8 million. Further to
the above, the once off impairment of the balance of a loan receivable from a third party relating to
the disposal of Galltec Western Cape of R4,4 million previously recoverable over a 4 year period
from 1 July 2015 was assessed as being non recoverable during the 2017 financial year. Other non-
recurring group costs of R7,6 million negatively affected operating profit. Impairments relating to the
discontinued Silica operations negatively impacted overall Group operating profit performance.
Net finance costs reduced by 11,6% in total and by 21,0% for continuing operations. The reduction
in amount is insignificant due to the fact that the 2017 year had the Bragan finance costs for 12
months compared to 9 months in 2016; this has been partially offset by the amortising profile of the
loan.
Earnings for continuing operations increased by 23,1% to R65,0 million (June 2016: R52,8 million)
whilst Headline earnings increased by 7,8% to R 66,2 million (June 2016: R60,2 million). Earnings
per share for continuing operations increased by 13,0% to 40,3 cents per share (June 2016: 35,7
cents per share) and headline earnings per share for continuing operations increased by 0,8% to
41,0 cents per share (June 2016: 40,7 cents per share). Earnings and Headline earnings were
materially impacted by the Rolfes Silica discontinued operation.
The directors believe that normalised headline earnings per share from continuing operations are a
meaningful measure for evaluating the group’s operational performance. Normalised headline
earnings amounted to R 81,4 million (June 2016: R 69,1 million). Normalised headline earnings per
share increased by 8,1% to 50,5 cents (June 2016: 46,7 cents). Normalised headline earnings are
defined as headline earnings from continuing operations excluding non-recurring items, once off
transaction costs and once off impairments and adjustments.
The weighted average number of shares in issue for the period was 161 301 468 (June 2016: 147
967 135).
Normalised Headline Earnings per Continuing Discontinued Continuing Discontinued
share: Group Group
Operations Operations Operations Operations
Reviewed Reviewed Reviewed Restated Restated Restated
as at as at as at as at as at as at
30 June 30 June 30 June 30 June 30 June 30 June
2017 2017 2017 2016 2016 2016
R’000 R’000 R’000 R’000 R’000 R’000
Headline earnings 44,171 66,157 (21,986) 63,070 60,212 2,858
Adjusted for the after-tax effect
non-recurring other costs:
Rehabilitation costs resin plant site
1,290 1,290 - -
Impairment of a third party loan
3,153 3,153 - -
Lead Chrome pigment write off
6,750 6,750 2,763 2,763
Non-recurring group costs
4,050 4,050 - -
Foreign currency impairments
- - 2,042 2,042
Transaction costs
- - 4,088 4,088
Normalised headline earnings
59,414 81,400 (21,986) 71,962 69,104 2,858
Normalised headline earnings per
share 36.83 50.46 (13.63) 48.63 46.70 1.93
RESTATED RESULTS
During the finalisation of the results for the year ended 30 June 2017, certain accounting errors
and understatement of impairments relating to the prior periods namely the year ended 30 June
2016 and the six months ended 31 December 2016, were identified and considered material.
Accordingly the results for both these prior periods have been restated. These errors are
disclosed under note 3.
GROUP CASH FLOW PERFORMANCE
Cash generated from operating activities amounted to R128,0 million (June 2016: R104,3 million).
Net working capital decreased by R12,0 million and is represented by a decrease in inventory of
R50,9 million, a decrease in trade and other receivables of R62,0 million and a decrease of
accounts and other payables of R100,9 million. The management of working capital remains a key
focus area with opportunity for improvement. Net finance costs paid increased slightly to R 28,7
million whilst tax paid amounted to R 32,5 million. Dividends paid amounting to R 16,2 million
represents the 6 cents per share paid as a final dividend for 2016. Cash utilised in investing activities
comprised of investment in product development, predominantly relating to the agricultural division,
amounting to R 12,6 million and additions to property, plant and equipment amounted to R 13,7
million. The movement in loans was marginal and reflects an inflow of R 1,0 million.
OPERATIONAL REVIEW
AGRICULTURAL
Revenue increased by 4,3% to R280,2 million (June 2016: R268,5 million). Gross profit margins
decreased to 28,2% (June 2016: 30,2%) due to product mix sold during the last six months of the
financial year. The division’s performance was influenced by the prolonged severe drought
conditions prevailing throughout the year and in particular continuing in the Western Cape and in
certain African export markets for the remainder of the financial year to June 2017. The divisions’
strength remains its product positioning providing a natural defence against drought conditions as
long as irrigation areas remain functional.
Operating profit was impacted by the once off impairment of a third party loan relating to the disposal
of a subsidiary, effective 1 July 2015, of R4,4 million. The loan was recoverable over a four year
period but due to unexpected changes in the recoverability thereof became doubtful. Operating
costs increased due to an investment in technical resources and capabilities to improve field
support. Net operating profit excluding the once off loan impairment decreased to R 32,2 million
(June 2016: R 37,3 million). The operating profit margin excluding the once off impairment
amounted to 11,6% (June 2016: 13,9%).
Capital expenditure of R6,8 million (June 2016: R 7,0 million) comprise mainly product development
costs incurred during the current reporting period.
The division’s performance is highly dependent on favourable rainfall patterns. New product
development and product registrations are granted continuously both locally and internationally.
The development of distribution channels for foliar feeds in the rest of Africa and Europe is on-going.
Formal trials and testing of the green PGPR (bacterial) products is progressing well.
FOOD
Revenue increased by 50,0% to R700,0 million (June 2016: R467,7 million – included for 9 months
since acquisition on 1 October 2015). Gross profit margins increased to 17,9% (June 2016: 16,1%)
largely driven by product mix, pricing strategies. Growth drivers include geographical footprint
expansion, rising food prices and increased staple demand. Export growth was hampered by
reduced trading in Zimbabwe due to the poor economy.
Operating cost increases are mainly due to geographical expansion and costs included for 12
months in the current year compared to the 9 months to June 2016. Operating costs includes a
provision for doubtful debt of R4,1 million in respect a Zimbabwean debtor. Net operating profit for
the year amounted to R 80,3 million (June 2016: R 56,4 million). The operating profit margin
decreased to 11,5% from 12,5% in June 2016.
Group initiatives include the focused and combined national footprint expansion and collective
export drive of product into southern African countries leveraging off the existing group
infrastructure. Recent registrations in animal feed products obtained will allow for expansion of the
product range into other speciality food ingredients.
Capital expenditure amounted to R1,5 million (June 2016: R 4 million), incurred to extend logistics
capabilities.
CHEMICALS
Revenue decreased by 8,5% to R322,7 million (June 2016: R 352,0 million). Gross profit margins
decreased to 18,4% (June 2016: 20,1%). Product volume demand reduced due to the reduction of
local manufacturing demand and trading was hampered by the poor product supply and the ailing
Zimbabwean economy being a major export market for the division. Global product shortages in
key solvents further impacted trading.
Operating costs remained well controlled and includes a once off rehabilitation costs for the
discontinued Alberton Resin plant site of R 1,8 million. Net operating profit amounted to R 31,8
million (June 2016: R 35,0 million). Operating profit margins remained at 9,9% (June 2016: 9,9%).
The division benefited from overhead cost and resource consolidation with the Water division.
Capital expenditure of R 3,8 million (June 2016: R 3,0 million) included the continued improvement
of quality management systems, investment into testing/laboratory facilities and transport fleet
upgrades.
Rolfes Chemicals will continue to focus on adding new product lines and driving local and export
volumes into southern Africa.
COLOUR
The Colour divisions’ performance was influenced by material restatements and accounting errors
relating to the liquidation of the final remaining manufactured lead chrome pigment stock following
the closure of the lead chrome pigment plant in March 2016 traded up until December 2016.
Revenue decreased by 42,8 % to R 85,6 million (June 2016: R 149,8 million) and gross profit
margins decreased to 9,7% (June 2016: 10,9%), the discontinued product lines and obsolete
stock provisions contributing to the margin decline.
Operating loss of R 8,1 million (June 2016: R 8,2 million) included write-offs of R 6,7 million (June
2016: R 2,8 million) on the discontinued product lines and related foreign exchange losses written
off.
Capital expenditure amounted to R 0,1 million.
Rolfes Colour Pigments will continue to trade and manufacture remaining product ranges which
include dispersions for paint and inks and traded dry pigment products. With new management on
board, we look forward to steady growth in the Colour division.
WATER
South Africa
Revenue decreased by 19,5% to R 42,1 million (June 2016: R52,3 million) and gross profit margins
increased to 64,1 % (June 2016: 59,5%), mostly attributable to a shift in the business focus to larger
industrial, mining and petrochemical contracts. The division’s performance was further influenced
by the depressed mining industry and prevailing drought conditions.
Operating profit increased slightly to R 4,3 million (June 2016: R 4,1 million). Operating margins
improved to 10,3% (June 2016: 7,8%).
Capital expenditure in the water division incurred amounted to R 2,8 million (June 2016: R 4,0
million) comprising mostly the upgrade of the Jet Park site to accommodate the water business’
move to Group owned premises.
The addition of a dedicated and experienced Managing Director in March 2017 and the resultant
realignment and rebranding of the Water business has repositioned it more favourably towards
larger industrial, mining and petrochemical opportunities to ensure sustainable growth.
Botswana
The Botswana water business performance and prospects will remain under strategic review.
Revenue decreased to R 6,8 million (June 2016: R20,1 million) and gross profit margins decreased
to 17,9% (June 2016: 39,3%), mostly attributable to the completion of the infrastructural
development contract during the 2016 financial year. Sales during the 2017 financial year comprise
mostly water chemical sales.
The operating profit for the year amounted to R 1,7 million (June 2016: loss R 10,0 million including
impairments on goodwill of R 10,3 million).
The business operated at an operating loss due to the lower margin trading during the financial
year. Material once off restatements in the Botswana business; as detailed in the restatement
section of this announcement impacted the division negatively.
No Capital expenditure was incurred for the year under review.
DISCONTINUED OPERATIONS
The Silica mining business became unviable due to the remaining life of mine and the current
economic climate resulting in trading losses being incurred. The potential of restructuring the
business was considered but the operating costs compared to the revenue (being a mix of
volumes and price) remained uneconomical. The Silica mining business incurred a loss, after tax,
of R 6,0 million for the year (2016 restated: profit after tax R 2,9 million). In addition
impairments/provisions were made on the property, plant and equipment of R 16,7 million,
inventories of R 9,0 million and provision for closure and rehabilitation costs of R 10,8 million
which impacted the 2017 results.
The net effect of the discontinued operation, for the 2017 financial year, is a loss after tax of R
42,5 million equating to a loss of 26,3 cents per share for EPS and 13,6 cents per share for HEPS.
The strategy has been commenced to dispose of the remaining assets to realise the carrying
value.
OPERATING ENVIRONMENT AND PROSPECTS
The economic environment across southern Africa is expected to remain challenging and will
influence demand for industrial chemicals. The Agriculture division was negatively affected in 2017
by the prolonged drought conditions and the division is well positioned for growth in more favourable
weather conditions. New product ranges added to the portfolio and geographic expansion plans
completed during the last financial year will continue to benefit growth in the food division. Prospects
in the water division have improved with a good tender pipeline with dependence on industrial
spending on water related projects and favourable weather conditions. Smaller divisions that are
not providing a satisfactory return on capital are currently under strategic review.
Any forward-looking statements in this announcement have not been reviewed and reported on by
the Company's auditors.
SHARE BUY BACK
The Board has authorised a share buy-back program in accordance with the general authority
which may be implemented by management within set parameters.
CHANGES TO THE BOARD
Mr E van der Merwe resigned as non-executive director on 1 April 2017. Mr CS Seabrooke was
appointed as a non-executive director on 1 April 2017.
Mr JJT Ferreira resigned, with immediate effect, as Group Financial Director on 12 May 2017 and
Mr RM Buttle was appointed as Acting Group Financial Director on the same date.
Investors interested in attending the results presentation should contact Jacques de Bie on
jdebie@singular.co.za
On behalf of the Board
MS Teke L Lynch
Chairman Chief Executive Officer
30 September 2017
REGISTERED OFFICE
First floor, The Oval West, Wanderers Office Park, 52 Corlett Drive, Illovo, 2196
TRANSFER SECRETARIES
Computershare Investor Services Proprietary Limited
DIRECTORS
MS Teke*, (Chairman), L Lynch (Chief Executive Officer), RM Buttle (Acting Group Financial
Director), SS Mafoyane *# (Lead Independent Director), MM Dyasi*#, DM Mncube*#, MG
Mokoka*#, CS Seabrooke*, JR Winer*
* Non-executive # Independent
COMPANY SECRETARY
CorpStat Governance Services Proprietary Limited
PREPARED BY
Commentary: L Lynch and RM Buttle
Financial results: RM Buttle
SPONSORS
Grindrod Bank Limited
REGISTERED AUDITORS
KPMG Inc.
INVESTOR RELATIONS
Singular Systems Proprietary Limited
Reviewed Provisional Condensed
Consolidated Statement of Reviewed Restated Restated
Financial Position as at
30 June 30 June 1 July
2017 2016 2015
R’000 R’000 R’000
ASSETS
Non-current assets 379,593 385,766 274,821
Property, plant and equipment
104,307 121,594 113,446
Intangible assets and goodwill
269,172 261,793 150,376
Deferred tax asset
6,114 2,379 10,999
Current assets 575,971 665,170 516,254
Inventories
285,744 336,628 213,533
Trade and other receivables
212,269 274,271 190,165
Assets classified as held for sale
- - 95,731
Tax receivable
5,988 5,825 4,952
Cash and cash equivalents
71,970 48,446 11,873
Total assets 955,564 1,050,936 791,075
EQUITY AND LIABILITIES
Capital and reserves
496,632 491,897 342,238
Stated capital
208,588 208,588 50,888
Treasury shares
(868) (868) (868)
Retained income
292,778 288,736 234,214
Reserves
(697) (2,057) 215
Non-controlling interest
(3,169) (2,502) 57,789
Non-current liabilities
253,173 250,039 78,381
Interest-bearing loans
226,057 223,360 43,049
Deferred tax liability
13,394 19,131 32,496
Provisions
13,722 7,548 2,836
Current liabilities
205,759 309,000 370,456
Trade and other payables
183,277 284,135 166,333
Interest-bearing loans
19,635 23,351 69,199
Liabilities directly associated with
assets classified as held for sale - - 60,179
Bank overdraft
- 48 71,324
Current tax liability
2,847 1,466 3,421
Total equity and liabilities
955,564 1,050,936 791,075
Reviewed Provisional Condensed Continuing Discontinued Continuing Discontinued
Consolidated Statements Group Group
or loss and other comprehensive Operations Operations Operations Operations
Income for the years ended
Reviewed Reviewed Reviewed Restated Restated Restated
30 June 30 June 30 June 30 June 30 June 30 June
2017 2017 2017 2016 2016 2016
R’000 R’000 R’000 R’000 R’000 R’000
Revenue
1,485,036 1,437,409 47,627 1,365,429 1,310,386 55,043
Cost of sales
(1,189,075) (1,138,140) (50,935) (1,067,196) (1,026,946) (40,250)
Gross profit/(loss)
295,961 299,269 (3,308) 298,234 283,441 14,793
Other income
13,675 13,675 - 12,325 12,312 13
Operating expenses
(192,470) (174,974) (17,496) (174,080) (164,584) (9,496)
Operating profit/(loss) before
below items 117,166 137,970 (20,804) 136,479 131,169 5,310
Impairment of assets Note 6
(25,556) (5,996) (19,560) (10,324) (10,324) -
Other costs 1
(16,792) (16,792) - (12,351) (12,351) -
Net operating profit/(loss)
74,818 115,182 (40,364) 113,804 108,495 5,310
Finance income
9,286 9,213 73 6,009 5,974 35
Finance costs
(38,616) (35,071) (3,545) (39,170) (38,687) (483)
Profit/(loss) before tax
45,488 89,324 (43,836) 80,644 75,782 4,862
Tax Note 7
(24,197) (25,533) 1,336 (27,590) (25,586) (2,004)
Profit/(loss) for the year
21,291 63,791 (42,500) 53,054 50,196 2,858
Other comprehensive
income/(expense):
Foreign currency translation
differences 1,360 1,360 - (2,272) (2,272) -
Total comprehensive income for the
year 22,651 65,152 (42,500) 50,782 47,924 2,858
Profit/(loss) for the year
attributable to:
- Equity holders of the parent
22,467 64,967 (42,500) 55,620 52,762 2,858
- Non-controlling interest
(1,176) (1,1 - (2,566) (2,566) -
Total comprehensive
income/(expense) for the year
attributable to:
- Equity holders of the parent
23,827 66,327 (42,500) 53,348 50,490 2,858
- Non-controlling interest
(1,176) (1,176) - (2,566) (2,566) -
Earnings per share (cents) - basic
and diluted Note 8 13.93 40.28 (26.35) 37.59 35.66 1.93
Headline earnings per share (cents)
- basic and diluted Note 8 27.38 41.01 (13.63) 42.62 40.69 1.93
1 Consists of transaction costs and impairments of financial instruments.
Reviewed Provisional Condensed
Consolidated Statement of
Changes in Equity for the years
ended
Stated Capital Reserves
Non-
Share Share Retained Treasury Revaluation Total
FCTR 1 controlling
Capital Premium Income Shares Surplus Equity
Interest
R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000
Balance at 1 July 2015
(as previously stated) 1,086 49,802 253,677 (868) (141) 5,488 63,260 372,304
Restatements
- - (19,463) - 356 (5,488) (5,471) (30,066)
Balance at 1 July 2015 (restated)
1,086 49,802 234,214 (868) 215 - 57,789 342,238
Issue of new shares
533 157,167 - - - - - 157,700
Total comprehensive income for the
year (restated) - - 55,620 - (2,272) - (2,567) 50,781
Total comprehensive income for the
year (as previously stated) - - 78,477 - (685) - 1,561 79,353
Restatements
- - (22,857) - (1,587) - (4,128) (28,572)
Acquisition of non-controlling
interest - - (1,098) - - - (57,724) (58,822)
Balance at 30 June 2016
(restated) 1,619 206,969 288,736 (868) (2,057) - (2,502) 491,897
Total comprehensive income for the
year - - 22,467 - 1,360 - (1,176) 22,651
Dividend
- - (16,192) - - - - (16,192)
Acquisition of non-controlling
interest 2 - - (2,233) - - - 509 (1,724)
Balance at 30 June 2017
1,619 206,969 292,778 (868) (697) - (3,169) 496,632
1 Foreign currency translation reserve.
2 The acquisition of the Agchem Europe minority shareholding which took place on 1 February 2017.
Reviewed Provisional
Condensed Consolidated Continuing Discontinued Continuing Discontinued
Statement of cash flows for the Group Group
years ended Operations Operations Operations Operations
Reviewed Reviewed Reviewed Restated Restated Restated
30 June 30 June 30 June 30 June 30 June 30 June
2017 2017 2017 2016 2016 2016
R’000 R’000 R’000 R’000 R’000 R’000
Cash flow generated from:
Operating activities
128,021 127,594 427 102,484 98,718 3,766
Net finance cost paid
(28,651) (25,857) (2,794) (27,915) (27,497) (418)
Tax paid
(32,451) (32,073) (378) (30,806) (29,809) (997)
Dividends paid
(16,192) (16,192) - - - -
Cash flow utilised in investing
activities (26,137) (24,790) (1,347) (227,455) (224,129) (3,326)
Investment in property, plant and
equipment (13,727) (12,380) (1,347) (14,104) (10,700) (3,404)
Investment in intangible assets
(12,588) (12,588) - (9,255) (9,255) -
Cost of acquisition of companies - - - (200,364) (200,364) -
Other
178 178 - (3,732) (3,810) 78
Cash flow generated from
financing activities (1,018) (5,838) 4,820 291,541 289,927 1,614
Cash generated for the year
23,572 22,844 728 107,849 107,210 641
Cash and cash equivalents:
- beginning of the year
48,398 47,568 830 (59,451) (59,642) 189
- end of the year
71,970 70,412 1,558 48,398 47,568 830
Notes to the Condensed Consolidated Financial Statements
1. BASIS OF ACCOUNTING AND PREPARATION
The provisional condensed consolidated financial statements are prepared in accordance with the
requirements of the JSE Limited Listings Requirements for provisional reports and the requirements
of the Companies Act of South Africa. The Listings Requirements require provisional reports to be
prepared in accordance with the framework concepts and the measurement and recognition
requirements of the International Financial Reporting Standards (IFRS) and the SAICA Financial
Reporting Guides as issued by the Accounting Practices Committee and Financial Pronouncements
as issued by Financial Reporting Standards Council and to also, as a minimum, contain the
information required by IAS 34 Interim Financial Reporting. The accounting policies applied in the
preparation of these financial statements are in terms of IFRS and are consistent with those applied in
the previous consolidated financial statements, except for the carrying amount and disclosure in
respect of property. The accounting policy to revalue property every three years was not applied
consistently. This error is summarised under note 3.
2. FINANCIAL PREPARATION AND REVIEW
The Reviewed Provisional Condensed Consolidated Financial Statements for the year ended 30 June
2017 have been prepared by Rolfes Holding Limited’s group financial reporting team; this process was
supervised by the Group’s Acting Group Financial Director Mr RM Buttle, and approved by the Rolfes
Holdings Limited board of directors on 30 September 2017.
These Provisional Reviewed Condensed Consolidated Financial Statements for the year ended 30 June
2017, have been reviewed by the Company’s auditor, KPMG Inc., who expressed an unmodified review
conclusion.
The auditor’s report does not necessarily report on all of the information contained in these financial
results. 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 Company’s registered office.
3. RESTATEMENTS DUE TO PRIOR YEAR ERRORS
Summary table
Previously Restated Previously Restated
Note Restatements Restatements
stated stated
30 June 30 June 30 June 1 July 1 July 1 July
Statements of financial position items
2016 2016 2016 2015 2015 2015
ASSETS R’000 R’000 R’000 R’000 R’000 R’000
Non-current assets 407,857 (22,091) 385,766 287,227 (12,406) 274,821
Property, plant and equipment 3a,b,c
133,661 (12,067) 121,594 130,435 (16,989) 113,446
Intangible assets and goodwill 3a
271,338 (9,545) 261,793 149,681 695 150,376
Deferred tax asset 3a,d
2,858 (479) 2,379 7,111 3,888 10,999
Current assets 691,546 (26,376) 665,170 531,026 (14,772) 516,254
Inventories 3a,d
343,630 (7,002) 336,628 215,127 (1,594) 213,533
Trade and other receivables 3a,d
293,011 (18,740) 274,271 202,956 (12,791) 190,165
Assets classified as held for sale
- - - 95,732 - 95,731
Tax receivable 3a
4,652 1,173 5,825 5,338 (386) 4,952
Cash and cash equivalents 3a
50,253 (1,807) 48,446 11,873 - 11,873
Total assets 1,099,403 (48,467) 1,050,936 818,253 (27,177) 791,075
Previously Restated Previously Restated
Restatements Restatements
Note stated stated
EQUITY AND LIABILITIES
Capital and reserves
550,535 (58,637) 491,898 372,304 (30,066) 342,238
Stated capital
208,588 - 208,588 50,888 - 50,888
Treasury shares
(868) - (868) (868) - (868)
3a,b,c
Retained earnings
d 331,056 (42,320) 288,736 253,677 (19,463) 234,214
Reserves 3a,b
4,662 (6,719) (2,057) 5,347 (5,132) 215
Non-controlling interest 3a
7,097 (9,598) (2,501) 63,260 (5,471) 57,789
Non-current liabilities
248,668 1,371 250,039 77,606 775 78,381
Interest-bearing loans 3a,d
220,269 3,091 223,360 42,274 775 43,049
Deferred tax liability 3a,b,d
25,563 (6,432) 19,131 32,496 - 32,496
Provisions 3c
2,836 4,712 7,548 2,836 - 2,836
Current liabilities
300,200 8,800 309,000 368,343 2,113 370,456
Trade and other payables 3a,d
274,929 9,206 284,135 208,630 3,071 166,333
Interest-bearing loans 3a,d
23,295 56 23,351 24,381 (550) 69,199
Liabilities directly associated with assets
held for sale - - - 60,179 - 60,179
Bank overdraft 3a
310 (262) 48 71,586 (262) 71,324
Current tax liability 3a,d
1,666 (200) 1,466 3,567 (146) 3,421
Total equity and liabilities
1,099,403 (48,467) 1,050,936 818,253 (27,178) 791,075
Previously Restatements Restated
Note
stated
Statement of profit or loss and other 30 June 30 June 30 June
comprehensive income items 2016 2016 2016
R’000 R’000 R’000
Revenue 3a
1,363,547 1,882 1,365,429
Cost of sales 3a,d
(1,055,478) (11,718) (1,067,196)
Gross profit/(loss)
308,069 (9,835) 298,234
Other Income 3a
12,398 (73) 12,325
3a,c,d
Operating expenses
(183,339) 9,259 (174,080)
Operating profit/(loss)
137,128 (649) 136,479
Impairment of assets 3a,6
- (10,324) (10,324)
Other costs 3d
- (12,351) (12,351)
Net operating profit/(loss)
137,128 (23,324) 113,804
Finance income 3d
1,293 4,716 6,009
Finance costs 3c,d
(29,208) (9,962) (39,170)
Profit/(loss) before tax
109,213 (28,569) 80,644
3a,c,d
Tax
(29,175) 1,585 (27,590)
Profit/(loss) for the period
80,038 (26,984) 53,054
Other comprehensive
income/(expense):
Foreign currency translation differences 3a
(685) (1,587) (2,272)
Total comprehensive income for the year
79,353 (28,571) 50,782
Profit/(loss) for the year attributable
to:
- Equity holders of the parent
78,477 (22,857) 55,620
- Non-controlling interest
1,561 (4,127) (2,566)
Earnings attributable to owners of the
parent 78,477 (22,857) 55,620
Adjusted for the after-tax effect of:
Profit on sale of assets
795 - 795
Loss on sale of assets
(613) - (613)
Goodwill impairment (Group) (no tax) 3a,6
- 10,324 10,324
Less: non-controlling interest (3,056) (3,056)
Headline earnings
78,659 (15,589) 63,070
Earnings per share (cents)
- Basic and diluted
53.04 (15.45) 37.59
- Headline and diluted
53.16 (10.54) 42.62
3a) Botswana Water business (70,4% owned)
The financial statements of Rolfes PWM Anticor (Pty) Ltd for the years ended 30 June 2015 and 30
June 2016 were finalised after the consolidated financial statements for the year ended 30 June
2016 were issued. The final amounts were different from the amounts included in the consolidated
financial statements for the years ended 30 June 2015 and 30 June 2016. The differences are
detailed below.
The differences mainly result from the following:
- Goodwill impairment due to the loss of business.
- Overstatement of property, plant and equipment.
- Overstatement of inventories.
- Overstatement of trade and other receivables.
- Adjustment to interest bearing loans.
30 June 2016 1 July 2015
Previously Errors Previously Errors
Restated Restated
Stated adjusted Stated adjusted
R’000 R’000 R’000 R’000 R’000 R’000
Non-current assets
17,654 (8,906) 8,748 19,848 (2,032) 17,816
Property, plant and equipment
8,106 642 8,748 11,010 (2,713) 8,297
Intangible assets and goodwill
9,548 (9,548) - 8,838 695 9,533
Deferred tax - asset
- - - - (14) (14)
Current assets
22,906 (18,616) 4,290 14,687 (14,771) (84)
Inventories
1,594 (1,594) - 1,594 (1,594) -
Trade and other receivables
20,665 (17,548) 3,117 12,446 (12,791) (345)
Assets classified as held for sale
- - - - - -
Tax receivable
- 1,173 1,173 - - -
Cash and cash equivalents
647 (647) - 647 (386) 261
Total assets
40,560 (27,522) 13,038 34,535 (16,803) 17,732
EQUITY AND LIABILITIES
Capital and reserves
8,427 (34,015) (25,588) 6,836 (19,691) (12,855)
Stated capital
3,507 (177) 3,330 3,330 - 3,330
Treasury shares
- - - - - -
Retained income
2,551 (25,147) (22,596) 42 (14,576) (14,534)
Reserves
(126) (1,586) (1,712) (680) 356 (324)
Non-controlling interest
2,495 (7,105) (4,610) 4,144 (5,471) (1,327)
Non-current liabilities
29,870 301 30,171 23,757 775 24,532
Interest-bearing loans
29,884 287 30,171 23,771 775 24,546
Deferred tax liability
(14) 14 - (14) - (14)
Provisions
- - - - - -
Current liabilities
2,263 6,192 8,455 3,942 2,113 6,055
Trade and other payables
1,566 5,730 7,296 2,984 3,071 6,055
Interest-bearing loans
- - - 550 (550) -
Liabilities directly associated with
assets classified as held for sale - - - - - -
Bank overdraft
262 897 1,159 262 (262) -
Current tax liability
435 (435) - 146 (146) -
Total equity and liabilities
40,560 (27,522) 13,038 34,535 (16,803) 17,732
3b) Property
The group did not apply the accounting policy of revaluing property correctly and consistently in the
past. The group subsequently decided to measure property at cost less accumulated depreciation
and impairment losses.
As part of this adjustment properties were also reclassified to Property, plant and equipment.
The abovementioned resulted in the following:
- Property has been reduced by R 16,3 million to decrease to the historical cost model.
- The corresponding entry was adjusted against Reserves (R 5,5m), Deferred tax liability (R
6,0m) Retained earnings (R 4,8m)
3c) Rehabilitation provisions
The group provided for the cost of rehabilitation on a scheduled closure basis as opposed to on an
unscheduled closure basis. This resulted in an increase of the rehabilitation provision. This error
has been adjusted retrospectively against property, plant and equipment and provisions. The
related depreciation and finance cost was adjusted accordingly. The provision as at 30 June 2017
was based on management’s best estimate of the expected undiscounted cash outflows.
The impact of this error was as follows:
- Rehabilitation provision as at 1 July 2015 and 30 June 2016 increased by R 4,3m and R
4,7m respectively.
- Decommissioning asset as at 1 July 2015 and 30 June 2016 increased by R 4,3m and
by R 3,6m respectively.
- Depreciation for the year ended 30 June 2016 increased by R 0,7m.
- Finance cost for the year ended 30 June 2016 increased by R 0,4m.
3d) Other errors impacting earnings
Certain other errors were identified and corrected which is detailed below:
- Trade and other payables has been increased by R 2,3m to correct a foreign exchange
error and has been corrected against operating expenses of 30 June 2016.
- Inventory was overstated by R 5,5m; this related to the previously manufactured lead
chrome pigment product ranges, which have been disposed of at a negative margin
since closure of the plant in March 2016. This error has been corrected to cost of sales.
- Trade and other receivables was overstated by R 1,2m due to an imbalance on
intercompany loans and has been corrected against cost of sales.
- Interest bearing loans were understated by R 2,8m; the corresponding entry was
adjusted to finance cost in the 2016 financial year.
- There were various reclassifications on assets and liabilities.
4. SEGMENT REPORT
Segmental analysis for the year ended 30 June 2017 (reviewed)
Gross Net operating
Revenue Assets Liabilities
profit/(loss) profit/(loss)
R'000 R'000 R'000 R'000 R'000
Agricultural
280,206 79,095 26,852 273,094 131,893
Food
700,026 125,040 80,318 279,184 90,108
Chemicals
322,675 59,588 31,807 200,400 88,828
Colour
85,598 8,328 (8,095) 110,884 16,443
Water
48,907 28,219 5,992 58,078 69,823
- RSA 42,125 27,007 4,330 72,772 59,683
- Botswana 6,782 1,212 1,662 (14,694) 10,140
Discontinued (Silica)
47,624 (3,308) (39,645) 40,313 51,096
Other
- (1,001) (22,411) (6,388) 10,739
Total 1,485,036 295,961 74,818 955,564 458,930
Segmental analysis for the year ended 30 June 2016 (restated)
Net operating
Revenue Gross profit Assets Liabilities
profit/(loss)
R'000 R'000 R'000 R'000 R'000
Agricultural
268,455 80,979 37,330 292,920 66,743
Food
467,682 75,143 56,428 285,203 123,044
Chemicals
352,038 70,855 35,042 113,519 77,351
Colour
149,767 16,410 (8,195) 122,576 24,216
Water
72,444 40,054 (5,944) 64,395 42,021
RSA
52,328 31,178 4,080 51,357 3,395
Botswana
20,116 8,876 (10,024) 13,038 38,626
Discontinued (Silica)
55,043 14,793 5,310 71,415 39,698
Other
- - (6,167) 100,908 185,966
Total
1,365,429 298,234 113,804 1,050,936 559,038
The segmental report of the group is based on the information used by the chief operating decision-makers, being the
executive management. The analysis is presented after taking certain intercompany and intersegmental transactions into
account.
The previous Industrial segment comprised both “Chemicals” and “Colour”. During the current year the segment report was
changed to separately reflect Chemicals and Colour. The comparative period adjusted accordingly.
The previous Water segment comprised both “Water” and the Silica mining business. During the current year the segment
report was changed to separately reflect the Silica mining business under Discontinued operations (note 5). The comparative
period adjusted accordingly.
5. DISCONTINUED OPERATIONS
The Silica mining business became unviable due to the remaining life of mine and the current
economic climate resulting in trading losses being incurred. The potential of restructuring the
business was considered but the operating costs compared to the revenue (being a mix of volumes
and price) remained uneconomical. As such, on 9 June 2017, the Board made the decision to
discontinue the operation which has resulted in a reclassification for both the 2017 and 2016
financial years. The Silica mining business was accordingly separately presented as a discontinued
operation. A full impairment review was performed by management and the details are reflected
below:
Net realisable
Carrying value before value/recoverable
impairments Impairment/provision amount Assumptions
ASSETS R’000 R’000 R’000
Non-current assets
Property, Plant and Equipment 28,353 19,560 8,793 Impaired to expected recoverable
amount based on managements
estimated selling price in the
market.
Current assets 40,493 8,973 31,520
Inventories 30,973 8,973 22,000 Net realisable value.
Trade and other receivables 6,534 - 6,534
Tax receivable 1,428 - 1,428
Cash and cash equivalents 1,558 - 1,558
EQUITY AND LIABILITIES
Non-current liabilities 34,392 7,909 42,301
Interest-bearing loans 29,761 - 29,761
Deferred tax liability 1,540 - 1,540
Provisions 3,091 7,909 11,000 Closure costs, undiscounted.
Current liabilities 4,795 4,000 8,795
Trade and other payables 4,795 - 4,795
Provisions - 4,000 4,000 Expected retrenchment cost and
closure costs.
Net Asset Value 29,659 40,442 (10,783)
The interest bearing loan is an intercompany loan payable to the group and is expected to be repaid
through the realisation of the assets.
The net effect of the discontinued operation, for the 2017 financial year, is a loss after tax of R 42,5
million equating to a loss of 26,3 cents per share for earnings per share and 13,6 cents per share
for headline earnings per share. The strategy has been commenced to dispose of the remaining
assets to realise the carrying value.
6. IMPAIRMENT OF ASSETS
During the year, and as a result of the financial performance of the Botswana Water business (refer
note 3a) and Silica mining business (refer note 5), the following impairment losses were recognised.
Segment 30 June 2017 30 June 2016
R’000 R’000
Agricultural
- Impairment of loans
4,380
Water - Botswana
- Impairment of goodwill
10,324
Discontinued - Silica
- Impairment of property, plant and equipment
19,560
- Impairment of intangible assets and goodwill
1,616 -
25,556 10,324
The impairment losses were based on the reported fair value, less cost to sell of the assets or group of
assets. Further, management has completed their testing of goodwill relating to its cash generating
units, based on the following assumptions.
Cash generating unit Carrying value Weighted cost of capital Growth rate
R’000
Agricultural 30,971 19.1% 12%
Food 115,374 18.1% 12%
Chemicals 38,062 18.0% 10%
Colour 6,872 18.0% 8%
Water 7,800 18.7% 20%
199,079
7. TAX
Continuing Discontinued Continuing Discontinued
Group Group
Operations Operations Operations Operations
Reviewed Reviewed Reviewed Restated Restated Restated
30 June 30 June 30 June 30 June 30 June 30 June
2017 2017 2017 2016 2016 2016
R’000 R’000 R’000 R’000 R’000 R’000
South African normal tax
33,163 34,216 (1,053) 24,101 22,993 1,108
Deferred tax
(8,829) (8,218) (611) 2,502 1,942 560
Prior year
(overstatement)/understatement (137) (465) 328 987 651 336
Amounts recognised in profit/loss
24,197 25,533 (1,336) 27,590 25,586 2,004
Tax rate reconciliation
Effective rate 53.2% 28.6% (3.0%) 34.2% 33.8% 41.2%
- Statutory rate 28.0% 28.0% (28.0%) 28.0% 28.0% 28.0%
- Effect of non-allowable expenditure/ 1.7% 0.9% - 1.5% 1.7% -
income
- Effect of deferred tax not recognised 23.9% (0.2%) 25.1% 2.4% 2.2% 6.3%
- Effect of different tax rates of - - - (0.1%) (0.1%) -
subsidiaries operating in other
jurisdictions
- Effect of prior year (0.4%) (0.1%) (0.1%) 1.4% 1.0% 6.9%
(overstatement)/understatement
- Effect of change in tax rate - - - 1.0% 1.0% -
8. EARNINGS PER SHARE
Information related to the number of shares in Reviewed Restated
issue as at
30 June 2017 30 June 2016
Total shares in issue (‘000) 161,943 161,943
Treasury shares (‘000)
(642) (642)
Shares in issue excluding treasury shares (‘000) 161,301 161,301
Weighted number of shares in issue (‘000) 161,301 147,968
Continuing Discontinued Continuing Discontinued
Earnings per share: Group Group
Operations Operations Operations Operations
Reviewed Reviewed Reviewed Restated Restated Restated
30 June 30 June 30 June 30 June 30 June 30 June
2017 2017 2017 2016 2016 2016
R’000 R’000 R’000 R’000 R’000 R’000
Profit/(loss) for the year
attributable to equity holders of the
parent 22,467 64,967 (42,500) 55,620 52,762 2,858
Adjusted for:
Profit on sale of assets
(603) (603) - 1,104 1,104 -
Loss on sale of assets
1,336 11 1,325 (851) (851) -
Impairment property, plant and
equipment (no tax) 19,560 - 19,560 - - -
Goodwill impairment (no tax)
1,616 1,616 - 10,324 10,324 -
Less: non-controlling interest (3,056) (3,056)
Tax effect on above (205) 166 (371) (71) (71) -
Headline earnings
44,171 66,157 (21,986) 63,070 60,212 2,858
Earnings per share (cents)
- Basic and diluted
13.93 40.28 (26.35) 37.59 35.66 1.93
- Headline and diluted headline
27.38 41.01 (13.63) 42.62 40.69 1.93
9. CONTINGENT LIABILITIES
The Group is involved in various legal proceedings and is in consultation with its legal counsel,
assessing the outcome of these proceedings on an ongoing basis. A particular case relates to a fidelity
and assignment agreement. In the opinion of the directors and legal counsel the possible liability will
not exceed R 2,0 million.
10. FAIR VALUE DISCLOSURE
The Group does not have any material items reported at fair value at the year end. Certain financial
instruments, being forward exchange contracts are measured using level 2 inputs, and presented
under trade and other receivables and trade and other payables. The impairments and provisions
accounted for in relation to discontinued operations are measured using level 3 inputs (refer note 5).
11. SUBSEQUENT EVENTS
CASH DIVIDEND DECLARATION
In accordance with Board policy to review dividend payments to shareholders at the end of each
reporting period, notice is hereby given that the Board declared a final gross cash dividend of 4
cents per ordinary share for year ended 30 June 2017. The dividend will be payable to shareholders
recorded in the register of the company at the close of business on the record date appearing
below.
The number of ordinary shares in issue at the date of this declaration is 161 942 800.
The salient dates applicable to the Final Dividend are as follows:
Declaration date: Friday, 29 September 2017
Last date to trade cum dividend: Tuesday, 17 October 2017
Shares commence trading ex-dividend: Wednesday, 18 October 2017
Record date: Friday, 20 October 2017
Payment Date: Monday, 23 October 2017
In accordance with paragraphs 11.17(c)(i) to (x) and 11.17(c) of the JSE Listings Requirements,
the following additional information is disclosed:
- The local Dividends Tax rate is 20%;
- The dividends will be paid from cash reserves;
- The gross dividend to be used in determining the Dividends Tax is 4 cents per
ordinary share;
- The Dividend Tax to be withheld by the Company is equal to 0.8 cents per ordinary
share;
- The gross dividend amount is 4 cents per ordinary share for shareholders exempt
from Dividends Tax;
- The net dividend amount is 3.2 cents per ordinary share for shareholders not
exempt from Dividends Tax;
- Rolfes Holdings Limited has 161 942 800 ordinary shares in issue (which includes
641 332 treasury shares); and
- Rolfes Holdings Limited’s income tax reference number is 9492/089/14/0.
Where applicable, payment in respect of certificated shareholders will be transferred electronically
to shareholders’ bank accounts on the payment date. In the absence of specific mandates,
payment cheques will be posted to certificated shareholders at their risk on the payment date.
Shareholders who have dematerialised their shares will have their accounts at their Central
Securities Depository Participant or broker credited on the payment date.
No share certificates may be dematerialised or rematerialised between Wednesday, 18 October
2017 and Friday, 20 October 2017 both days inclusive.
There are no additional material events, other than those reported in this announcement, that have
occurred between 30 June 2017 and the date of this report which may have a material impact on the
understanding of this report and the financial information presented.
Restated unaudited results for 31 December 2016
Errors resulting in the restatement for the six months ended 31 December 2016:
Understatements of impairments and accounting errors identified for the six months ended 31
December 2016, primarily relates to the previously manufactured lead chrome pigment product
ranges, which have been fully disposed of at a negative margin during the interim period to 31
December 2016 and certain adjustments in head office costs and taxation. The net effect of the
above resulted in an overstatement of both earnings per share and headline earnings per share of
8,2 cents.
Statements of Financial Position as at the
period ended Restated Unaudited
as at as at
31 Dec 2016 31 Dec 2015
R’000 R’000
ASSETS
Non-current assets 409,097 425,359
Property, Plant and Equipment 135,669 159,805
Intangible assets and goodwill 273,428 265,554
Current assets 793,589 614,760
Inventories 363,784 274,098
Trade and other receivables 372,487 286,741
Current tax asset 1,328
-
Cash and cash equivalents 55,990 53,921
Total assets 1,202,686 1,040,119
EQUITY AND LIABILITIES
Capital and reserves
588,566 489,531
Stated capital
208,588 210,888
Treasury shares
(868) (868)
Retained income
369,159 266,762
Reserves
4,103 5,888
Non-controlling interest
7,584 6,861
Non-current liabilities
294,402 280,468
Interest-bearing loans
265,098 248,653
Deferred tax liability
26,213 28,837
Provisions
3,091 2,978
Current liabilities
319,718 270,120
Trade and other payables
300,059 233,718
Interest-bearing loans
19,660 34,987
Current tax liability
(0) 1,415
Total equity and liabilities
1,202,686 1,040,119
Information related to the number of shares in
issue as at 31 December 2016
Total shares in issue (‘000)
161,942 161,942
Treasury shares (‘000)
(641) (641)
Shares in issue excluding treasury shares (‘000)
161,301 161,301
Weighted number of shares in issue (‘000)
161,301 134,634
Statements of Comprehensive Income for the
Restated Unaudited
period ended
as at as at
31 Dec 2016 31 Dec 2015
R’000 R’000
Revenue
823,386 625,684
Cost of sales
(646,708) (479,566)
Gross profit
176,678 146,118
Other Income
6,083 1,153
Operating expenses
(99,908) (87,185)
Operating profit
82,854 60,086
Finance income
1,095 266
Finance costs
(17,957) (9,381)
Profit before tax
65,992 50,971
Tax
(17,686) (12,305)
Profit for the period
48,306 38,666
Other comprehensive income:
Exchange differences from translating foreign
operations (559) -
Total comprehensive income for the period
47,747 38,666
Profit for the period attributable to:
Equity holders of the parent
48,234 38,113
Non-controlling interest
487 553
Earnings
48,234 38,113
Adjusted for the after-tax effect of:
Loss from sale of fixed asset
- 52
Profit on sale of business
- -
Headline earnings
48,234 38,165
Earnings per share (cents)*
- Basic
29.90 28.31
- Headline
29.90 28.35
Restated Unaudited
as at as at
Normalised Headline Earnings table: 31 Dec 2016 31 Dec 2015
Headline earnings
48,234 38,165
Adjusted for the after-tax effect of:
Rehabilitation costs resin plant site
1,290 -
Lead Chrome pigment write off
4,077 -
Normalised earnings
53,601 38,165
Normalised headline earnings per share (cents)
33.23 28.35
Statements of cash flows for the period
Restated Unaudited
ended 31 December 2016
as at as at
31 Dec 2016 31 Dec 2015
R’000 R’000
Cash flow (utilised in)/ generated from:
Operating activities
13,108 (14,239)
Finance costs
(16,862) (9,049)
Tax paid
(13,822) (15,903)
Cash flow utilised in investing activities
(7,880) (237,636)
Cash flow generated from financing activities
31,194 381,707
Cash generated / (deficit) for the period
5,738 104,880
Cash and cash equivalents:
- beginning of the period
49,943 (50,959)
- end of the period
55,681 53,921
Statement of changes in equity for period
ended 31 December 2016 Non-
Share Share Retained Treasury Total
Reserves controlling
Capital Premium Income Shares Equity
Interest
R'000 R'000 R'000 R'000 R'000 R'000 R'000
Balance at 30 June 2015
1,086 49,802 253,677 (868) 5,347 63,260 372,304
Issue of new shares
533 159,467 - - - - 160,000
Movements
- - (25,029) - 541 (56,952) (81,440)
Total comprehensive income for the period
- - 38,114 - - 553 38,667
Balance at 31 December 2015
1,619 209,269 266,762 (868) 5,888 6,861 489,531
Movements
- (2,300) 23,931 - (541) (772) 20,318
Total comprehensive income for the period
- - 40,363 - (685) 1,008 40,686
Balance at 30 June 2016
1,619 206,969 331,056 (868) 4,662 7,097 550,535
Total comprehensive income for the period
- - 61,047 - (559) 487 60,975
Dividend
- - (9,716) - - - (9,716)
Balance at 31 December 2016
1,619 206,969 382,387 (868) 4,103 7,584 601,794
Segmental report for period
ended 31 December 2016 Operating
Revenue Gross Profit Assets Liabilities
Profit
31 December 2016 R'000 R'000 R'000 R'000 R'000
Agricultural
155,973 51,871 29,128 273,181 74,620
Food
397,102 67,536 50,649 315,013 142,093
Industrial
221,249 35,514 12,582 289,974 95,172
Water
49,062 21,757 4,778 112,617 19,066
Other
- - (14,283) 211,901 283,169
Total
823,386 176,678 82,854 1,202,686 614,120
31 December 2015
Agricultural
142,636 43,300 24,767 195,597 84,492
Food
161,479 24,962 18,877 226,935 109,601
Industrial
260,117 48,766 14,200 270,471 119,296
Water
61,452 29,090 7,049 143,522 88,651
Other - -
(4,807) 203,594 148,548
Total
625,684 146,118 60,086 1,040,119 550,588
Date: 02/10/2017 07:30:00 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
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