Wrap Text
Preliminary annual financial results for the year ended
31 July 2017 and dividend declaration
Phumelela Gaming and Leisure Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1997/016610/06)
Share Code: PHM ISIN: ZAE000039269
Phumelela Gaming and Leisure Limited preliminary annual financial results for the year ended
31 July 2017 and dividend declaration
Operational features of the year
- Supabets and Interbet investments provide excellent synergistic benefits
- Supabets and Interbet are making a healthy contribution
- International division increased profits despite adverse currency movements
- Fixed odds returned a pleasing result
- Continuing to invest in South African horseracing
Financial features of the year
- Earnings per share up 3% to 168,46 cents
- Headline earnings per share up 2% to 167,96 cents
- Headline earnings per share in constant currency up 30% to 214,34 cents
RESULTS ANALYSIS
RESULTS OVERVIEW
The Group result for 2017 is characterised by continued good growth from international revenue
sources, a pleasing performance from our wholly owned fixed odds business as well as our
investments in Supabets and Interbet, and a disappointing performance from our traditional Tote
operations.
Phumelela has continued to deliver on its strategy of diversifying revenue sources through the
introduction of new betting products, the addition of international territories and by investing in
businesses that are complementary and value-adding.
Our diversification and internationalisation strategy is serving us well, underpinning the
competitiveness of Phumelela and the commercial viability of our business model.
Equity accounted profits from local and international sources contributed 81% of Group pre-tax
profit. Although accounted for by the equity method, there is active executive management
involvement in our strategic Premier Gateway International("PGI"), Interbet and Supabets joint
ventures.
The acquisition of a 50% shareholding in Supabets and the increase in our shareholding in Interbet
from 26% to 50% both became effective on 1 March 2017. The Supabets investment was funded through
the rights offer and issue of shares to the seller.
International operations are the single largest source of pre-tax profit for Phumelela, which
reflects our strategy over many years to internationalise our business. These profits are earned in
various currencies with the British pound the most significant.
Horseracing is an integral part of our total product offering and inseparable from the success we
have achieved internationally. We continue to invest in supporting a high-quality South African
racing product and experience.
On average, the rand strengthened by 20% versus the British pound. International profits,
comprising consolidated profit from our international division and equity accounted profits
generated by PGI, increased in Rand by a pleasing 11%. In constant currency these profits increased
by 37%.
There was welcome shareholder support for the Supabets rights offer, which was an endorsement of our
earnings per share accretive and return on equity enhancing investment objective.
In the past five years, Group attributable profit has increased by 113% and earnings per share by
85%, a compound growth of 16% and 13% respectively. This has been achieved because of our
diversification and internationalisation initiatives and by ensuring the betting offering is
relevant, accessible through bricks and mortar or online, and affordable.
The Group has contained expenses well and is striving to do better despite the macro economic
challenges we face.
The Group has needed to modernise and reposition its traditional business of administering
horseracing and conducting Tote betting thereon. Accordingly, the senior management structure has
been streamlined, with clearly delineated key performance objectives that align with the evolving
nature of the Group. A national retail manager has been appointed with experience outside of our
industry to apply fresh thinking to our technology, store design, and customer experience
initiatives. Our Tote and fixed odds management teams have been merged so as to minimise duplication
and streamline costs and we have made early retirement and voluntary retrenchment offers as part of
the process of modernisation and repositioning our business. We have embarked upon a strategy to use
technology more effectively and as our first initiative, free Wi-Fi is now being offered in all our
stores. We are continually developing new betting applications, especially for smartphones.
Phumelela continues to fight for a fairer funding dispensation for the sport of thoroughbred
horseracing. Civil and criminal lawsuits filed against bookmakers for unlawfully displaying
Tellytrack are ongoing.
GROUP FINANCIAL ANALYSIS
Total income was up by 1% overall to R1,5 billion, with local income down marginally at R1,2 billion
and international income up by 12% to R307,5 million. Income in fixed odds accelerated in the
second half of the year, ending 35% higher. Disappointingly Tote betting recorded a decline in
income.
Combined local and international operating expenses, prize monies and levies increased by 3% to
R1,4 billion.
Depreciation and amortisation increased by 16% to R71,2 million, reflecting continued reinvestment
in local Tote and fixed odds operations. Capital expenditure of R82,2 million was 8% higher, of
which R42,1 million was spent on horseracing infrastructure and Tote betting and R40,1 million in
fixed odds. Investments include a water saving catchment dam at the Vaal and an electricity-saving
LED lighting installation at Turffontein, on which a three-year payback is anticipated.
Expenses in the local Tote and horseracing operations were flat on the prior year and fixed odds
expenses increased by 9%, a relatively contained increase given the rapid growth and development of
this business.
Operating profit increased by 14% to R49,0 million, which comprises a local operating loss of
R44,5 million, an increase of 38%, and an international operating profit of R93,5 million, an
increase of 24%.
Local finance costs of R20,3 million, up from R9,4 million, is a consequence of higher borrowings.
The Group's profits from equity accounted investees increased by a pleasing 29%, mainly as a result
of the profits from Supabets and Interbet and the additional profits from PGI.
Net attributable income increased by 18% to R142,6 million, assisted by a lower effective tax rate.
Profit attributable to ordinary shareholders increased by 20% to R146,5 million.
Headline earnings increased by 19% to R146,1 million. On a constant currency basis headline earnings
increased by 52% to R186,4 million.
The weighted average number of shares in issue increased by 17% to 87,0 million and on a fully
diluted basis there was a 16% increase in weighted average shares to 91,1 million, with 2,1 million
in treasury shares issued in respect of share option obligations. 500 000 shares, at a cost of
R10,6 million, were bought back on the open market.
Earnings per share increased by 3% to 168,46 cents and headline earnings per share by 2% to
167,96 cents. Constant currency headline earnings per share increased by 30% to 214,34 cents.
Cash generated from operations declined to R88,8 million from R113,0 million and cash generated by
operating activities declined to R45,7 million from R143 million due to working capital absorption
of R43,0 million.
The statement of financial position reflects gross debt of R126,2 million and cash of R98,5 million,
resulting in a net debt position of R27,8 million or a debt to equity ratio of only 2,7%. However,
there is a contingent consideration payable in respect of Supabets of R101 million that will be paid
in due course. The effective net debt as at 31 July 2017 is therefore R129 million or a debt to
equity ratio of 12,5%.
Dividends paid to shareholders amounted to R86,9 million. Net asset value per share is
1 014,17 cents, an increase of 47%.
Total assets increased by 63% to R1 539,8 million, which includes property, plant and equipment at
a carrying value of R468,4 million, goodwill and intangibles at R67,1 million, and equity accounted
investees carried at R638,1 million.
The Group retains a strong financial position and has sufficient cash flow and borrowing capacity to
meet its ongoing operational needs.
Return on average equity has been affected by the substantially changed capital structure, decreasing
to 18% from 25% but remaining above our cost of capital.
SHARE CAPITAL
There has been no change in the authorised share capital of the Company during the year.
Issued share capital increased by 27 024 284 shares as follows:
- 2 125 611 issued from treasury stock to fulfil obligations in respect of shares exercisable per
the executive option schemes;
- 16 602 230 rights offer shares were issued in part to fund the purchase of Supabets SA Holdings
Proprietary Limited ("Supabets");
- 8 796 443 shares were issued to the seller in terms of the Supabets purchase consideration;
- 500 000 shares repurchased by the Company to fulfil obligations in respect of shares exercisable
per the executive option schemes.
At 31 July 2017 issued share capital amounted to 101 559 769 shares, net of 940 789 treasury shares.
SUMMARISED CONSOLIDATED 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.
Summarised segmental analysis
31 Jul 31 Jul
% 2017 2016
change R'000 R'000
Local sports betting and media gross income (1) 1 213 025 1 226 382
International ventures gross income 12 307 490 274 415
Total local and international income 1 1 520 515 1 500 797
Local tote and fixed odds net betting and other income 2 1 245 457 1 222 910
International other income 12 307 490 274 415
Total local and international net income 4 1 552 947 1 497 325
Local expenses, stakes and levies 3 (1 289 929) (1 255 160)
International expenses 7 (213 989) (199 067)
Total expenses 3 (1 503 918) (1 454 227)
Local operating loss 38 (44 472) (32 250)
Local finance costs 117 (20 323) (9 368)
Local loss from operations 56 (64 795) (41 618)
International pre-tax profit 24 93 501 75 348
International and local equity accounted profits 29 122 591 94 694
Total Group pre-tax profit 18 151 297 128 424
Fair value adjustment to investment 946 5 578
Profit before income tax expense 14 152 243 134 002
Note: Segmental information extracted from audited financial statements.
CAPITAL COMMITMENTS
Commitments in respect of capital expenditure approved by directors.
2017 2016
R'000 R'000
Contracted for 4 261
Not contracted for 125 683 164 953
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 and shares issued to the sellers.
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
On 22 September 2017, the Johannesburg High Court granted Phumelela's appeal, with costs in the
matter relating to the interim directive issued by the Gauteng Gambling Board in October 2014.
The parties to the appeal have until 16 October 2017 to apply for leave to appeal the judgment.
Other than the above ruling, there are no further developments on the matters disclosed in the
annual financial statements for the year ended 31 July 2016.
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 ENTITY
Phumelela Gaming and Leisure Limited is a company domiciled in South Africa. The summarised
consolidated financial statements as at and for the year ended 31 July 2017 comprises the Company
and its subsidiaries and the Group's interests in equity accounted investees and joint operations.
STATEMENT OF COMPLIANCE
The preliminary summarised audited consolidated financial statements are prepared in accordance with
the requirements of the JSE Limited Listings Requirements for preliminary reports, and the
requirements of the Companies Act applicable to summary financial statements. The Listings
Requirements require preliminary reports to be prepared in accordance with the framework concepts
and the measurement and recognition requirements of International Financial Reporting Standards
(IFRS) and the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee and
Financial Pronouncements as issued by the Financial Reporting Standards Council and to also, as a
minimum, contain the information required by IAS 34 Interim Financial Reporting.
BASIS OF PREPARATION
The preliminary summarised audited consolidated financial statements do not include all the
information and disclosures required for the audited consolidated financial statements. The
preliminary summarised audited consolidated financial statements should be read in conjunction with
the audited consolidated financial statements.
The audited consolidated financial statements for the Group as at and for the year ended
31 July 2017 were prepared on the going-concern basis and are available for inspection at the
Company's registered office.
The accounting policies applied in the presentation of the preliminary summarised audited
consolidated financial statements are in terms of IFRS and are consistent with those applied for
the year ended 31 July 2016, except for new standards and interpretations that became effective on
1 August 2016 and deemed applicable to the Group. They are prepared on the historical cost basis,
except for certain financial instruments that are recognised at fair value.
Mr B. McLoughlin CA (SA) Chief Financial Officer was responsible for supervising the preparation of
the annual financial statements and preparing the summarised financial statements.
REPORT OF THE INDEPENDENT AUDITORS
The auditors, KPMG Inc., have issued their opinion on the Group's consolidated financial statements
for the year ended 31 July 2017. The auditors were not engaged to report on the summary financial
statements. The audit was conducted in accordance with International Standards on Auditing. They
have issued an unmodified opinion. A copy of the auditors' report together with a copy of the
audited consolidated financial statements is available at the Company's registered office.
The preliminary summarised audited consolidated financial statements have been derived from the
Group's consolidated financial statements and are consistent in all material respects with the
Group's consolidated financial statements. The auditors' report does not necessarily report on all
of the information contained in this announcement. Any reference to future financial information
included in this announcement has not been reviewed or reported on by the auditors. Shareholders
are advised that in order to obtain a full understanding of the nature of the auditors' engagement
they should obtain a copy of that report together with the accompanying financial information from
the Company's registered office. The summarised report is extracted from the audited information
but is itself not audited. The directors take full responsibility for the preparation of the
preliminary results and the financial information is correctly extracted from the underlying
annual financial statements.
SUBSEQUENT EVENTS
There are no significant subsequent events that have an impact on the financial information at
31 July 2017.
RELATED PARTIES
Other than the investments in Supabets and Interbet, there have been no significant transactions
during the year with equity accounted investees, joint operations, and other 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 AND TRANSFORMATION
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.
In the furtherance of the Group's commitment to transformation, the Group has advanced a loan of
R20 million to Omphe Tshiamo Investments Proprietary Limited (Omphe Tshiamo) to fund the roll-out
of 10 Betting World and Tab franchises in the North West province. Omphe Tshiamo is 95% owned by
previously disadvantaged individuals resident in the North West province and the Group owns the
remaining 5%. Omphe Tshiamo is planning the roll-out of another 10 franchises and the Group has
entered into negotiations with the company and its shareholders to agree the funding thereof. The
roll-out of the additional 10 franchises and the funding thereof is subject to the approval of the
North West Gambling Board.
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. Messrs ML Ramafalo
and BP Finch resigned from the Board effective 30 June 2017 and 25 August 2017 respectively. The
Board extends its appreciation for their contribution and wishes them well in their future
endeavours. There was no other change to the composition of the Board.
Mr MP Malungani has notified the Board of his intention to step down at the December 2017 Annual
General Meeting. Peter has served the Company and its Board with distinction over the past 20 years.
His invaluable contribution as Board member and Chairman will be sorely missed.
PROSPECTS
As a result of the losses incurred in its local Tote and horseracing operations, the Group has
embarked upon an initiative to modernise and reposition its business, which includes a significant
cost saving initiative. The management structure has been rationalised and changed. Significant new
betting products and technologies are being introduced. The Group has made offers of early
retirement and voluntary retrenchment to all staff. These offers may be followed by a formal
retrenchment process if need be. The Board has approved a lump-sum spend of up to R30 million on
the cost reduction initiative. The aforementioned lump sum will be charged to and form part of the
costs in determining the Group's earnings per share for the year ending 31 July 2018. A separate and
detailed account will be given of the amounts spent and the payback period thereof.
South African trading conditions remain challenging but we continue to be proactive in managing
those challenges and identifying new opportunities. We have earmarked eight under-performing fixed
odds outlets for joint ventures with Supabets and are in the process of submitting the relevant
applications for regulatory approval. The first three of these are expected to commence trading
during the course of October. Further joint ventures with Supabets will be considered. We are in
the process of implementing the best of Supabets' software into our betting outlets and Supabets
will be re-introducing betting on racing, supported and managed by our fixed odds business. The
Tabonline website will be replaced with a new website using the best of Interbet's technology.
Exciting new bets will be offered in the Group's fixed odds as well as Tote betting businesses.
The Group's international operations, namely the export of live televisual South African horseracing
and pari-mutuel betting through PGI, are anticipated to have another good year.
Group earnings will be impacted by the aforementioned cost reduction initiatives. Excluding these
costs, the Group continues to target growth in normalised earnings per share/headline earnings per
share.
Any forward-looking statements of forecasts contained in these results have not been reviewed or
reported on by the Group auditors.
CASH DIVIDEND TO SHAREHOLDERS
Notice is hereby given that the Board has declared a final gross cash dividend from income reserves
of 70 cents per share (56,00 cents per share net of dividend withholding tax at a rate of 20%)
payable to shareholders recorded in the register on Friday, 3 November 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 distribution" will be Tuesday, 31 October 2017. As from commencement of
business on Wednesday, 1 November 2017 all trading in Phumelela shares will be "ex dividend".
Payment will be made on Monday, 6 November 2017. Share certificates may not be dematerialised or
rematerialised between Wednesday, 1 November 2017 and Friday, 3 November 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
6 October 2017
SUMMARISED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Audited Audited
12 months 12 months
31 Jul 31 Jul
% 2017 2016
change R'000 R'000
Income
- Local operations (1) 1 213 025 1 226 382
- International operations 12 307 490 274 415
1 1 520 515 1 500 797
Gross betting income
- Local operations (2) 1 176 913 1 198 796
Net betting income
- Local operations (2) 948 603 965 551
Other operating income
- Local operations 12 281 654 252 603
- International operations 12 306 844 273 840
Investment income
- Local operations 220 15 200 4 756
- International operations 646 575
Net income 4 1 552 947 1 497 325
Operating expenses and overheads
- Stakes 3 (208 756) (202 871)
- Local operations 2 (1 010 038) (991 104)
- International operations 8 (213 917) (198 781)
Profit before finance costs, income tax,
depreciation and amortisation 15 120 236 104 569
Depreciation and amortisation 16 (71 207) (61 471)
Profit from operations 14 49 029 43 098
Finance costs
- Local operations 117 (20 323) (9 368)
Profit before share of profit of equity accounted
investees and fair value adjustment to investment (15) 28 706 33 730
Share of profit of equity accounted investees 29 122 591 94 694
Profit before fair value adjustment 18 151 297 128 424
Fair value adjustment to investment 946 5 578
Profit before income tax expense 14 152 243 134 002
Income tax expense (25) (9 641) (12 912)
Profit for the year 18 142 602 121 090
Other comprehensive income for the year
Items that may subsequently be reclassified to
profit or loss
- Exchange differences on translating foreign operations (74) (151) (579)
Total comprehensive income for the year 18 142 451 120 511
Profit attributable to:
Ordinary equity holders of the parent 20 146 520 121 944
Non-controlling interest (3 918) (854)
Profit for the year 18 142 602 121 090
Total comprehensive income attributable to:
Ordinary equity holders of the parent 21 146 369 121 365
Non-controlling interest (3 918) (854)
Total comprehensive income for the year 18 142 451 120 511
Earnings per ordinary share (cents)
- Basic 3 168,46 163,62
- Diluted 4 160,84 155,01
SUPPLEMENTARY STATEMENT OF COMPREHENSIVE INCOME INFORMATION
Audited Audited
12 months 12 months
31 Jul 31 Jul
% 2017 2016
change R'000 R'000
Reconciliation of headline earnings
Earnings attributable to equity holders of parent 20 146 520 121 944
Adjusted for:
Net loss/(profit) on disposal of property,
plant and equipment (605) 916
Tax effect 169 (256)
Headline earnings 19 146 084 122 604
Headline earnings per share (cents) 2 167,96 164,51
Diluted headline earnings per share (cents) 3 160,36 155,85
Net asset value per share (cents) 47 1 014,17 688,33
Dividend to shareholders
Interim dividend
Dividend per ordinary share (cents) 34,00 34,00
Final dividend
Dividend per ordinary share (cents) 70,00 70,00
Number of shares in issue 36 101 559 769 74 535 485
Weighted average number of shares in issue for basic,
headline and adjusted headline earnings per share
calculation 17 86 974 276 74 528 006
Weighted average number of shares in issue for diluted
earnings per share calculation 16 91 097 698 78 669 669
SUPPLEMENTARY PRO FORMA INFORMATION
The pro forma constant currency financial information has been compiled by the directors to
illustrate the impact of foreign currency movements on the Group's reported financial performance
for the year ended 31 July 2017 for illustrative purposes only. This information is the responsiility
of the direcors. Due to the nature of this information, it may not fairly present the Group's
financial position, changes in equity and results of operations or cash flows. An unmodified
reasonble assurance report has been issued by the Group's auditor, KPMG Inc. in terms of ISAE 3420
Assurance Engagements to Report on the Compilation of the Pro Forma Information in a Prospectus,
and is available for inspection at the Company's registered office. The pro forma information has
been compiled in terms of the JSE Listings Requirements and the Revised Guide on Pro Forma
Information by SAICA.
The averange Rand exchange rate strenghtened against the major currencies in which the Group is
exposed to, namely British pound (20,43 in 2016 to 17,10 in 2017), The Australian dollar (10,69 in
2016 to 10,22 in 2017), the United States dollar (14,65 in 2016 to 13,57 in 2017) and the Euro
(16,20 in 2016 to 14,92 in 2017). The constant currency adjustment, detailed below, has been
prepared on the basis of applying the 2016 average Rand exchange rates to the 2017 foreign
denominated net profits and foreign equity earnings recorded in the 2017 statement of comprehensive
income.
12 months 12 months
31 Jul 31 Jul
% 2017 2016
change R'000 R'000
Reconciliation of headline earnings to adjusted
headline earnings
Headline earnings 146 084 122 604
Constant currency adjustment 40 336
Adjusted headline earnings 52 186 420 122 604
Adjusted headline earnings per share in constant
currency (cents) 30 214,34 164,51
SUMMARISED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Audited Audited
as at as at
31 Jul 31 Jul
2017 2016
R'000 R'000
ASSETS
Non-current assets 1 280 609 635 466
Property, plant and equipment 468 388 458 914
Goodwill 15 206 15 206
Intangible assets 51 939 51 455
Investments 11 562 692
Interest in equity accounted investees 638 074 75 460
Investment property 18 700
Long-term loan 64 309 24 790
Deferred taxation asset 12 431 8 949
Current assets 259 200 308 484
Inventories 2 466 1 920
Trade and other receivables 129 855 137 849
Income tax receivable 19 395 19 233
Defined benefit funds 9 029 8 183
Assets held for sale 28 624
Cash and cash equivalents 98 455 112 675
Total assets 1 539 809 943 950
EQUITY AND LIABILITIES
Total equity 1 029 993 513 051
Share capital and premium 473 826 1 863
Retained earnings 560 678 511 630
Translation reserve (593) (442)
Equity attributable to ordinary shareholders 1 033 911 513 051
Non-controlling interest (3 918)
Non-current liabilities 123 370 64 489
Deferred taxation liability 1 393 1 531
Borrowings 121 977 62 895
Finance lease liability 63
Current liabilities 386 446 366 410
Trade and other payables 267 146 310 095
Short-term borrowings 2 400 2 926
Contingent consideration liability 101 434 707
Income tax payable 24 1 683
Betting dividends payable 13 621 15 994
Bank overdraft 1 821 35 005
Total equity and liabilities 1 539 809 943 950
SUMMARISED CONSOLIDATED STATEMENTS OF CASH FLOW
Audited Audited
12 months 12 months
31 Jul 31 Jul
2017 2016
R'000 R'000
Net cash (outflow)/inflow from operating activities (62 201) 38 594
Cash generated by operations 88 771 113 046
Movements in working capital (43 022) 29 949
Cash generated by operating activities 45 749 142 995
Income tax paid (15 082) (30 306)
Investment income received 11 957 5 330
Finance costs paid (17 950) (9 368)
Dividends to shareholders (86 875) (70 057)
Net cash outflow from investing activities (250 879) (19 549)
Acquisition of property, plant and equipment and intangible assets (82 223) (76 443)
Proceeds on disposal of property, plant and equipment, intangible
assets and investments 1 664 2 086
Acquisition of a subsidiary/investment in equity accounted investees (255 010) (1 710)
Contingent liability paid (330)
Net loans advanced (24 432) (14 448)
Dividend received from equity accounted investees 109 452 70 966
Net cash inflow from financing activities 332 195 12 743
Repayment of finance leases (425) (557)
Net borrowings raised 58 556 13 300
Share capital raised 288 340
Shares repurchased and options issued (14 276)
Net increase in cash and cash equivalents 19 115 31 788
Effect of conversion of foreign operations on cash and
cash equivalents (151) (579)
Cash and cash equivalents at beginning of year 77 670 46 461
Cash and cash equivalents at end of year 96 634 77 670
Make up of balance of cash and cash equivalents
Cash and cash equivalents 98 455 112 675
Bank overdraft (1 821) (35 005)
Cash and cash equivalents at end of year 96 634 77 670
SUMMARISED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Equity
attri-
butable
Share to Non-
capital Trans- ordinary con-
and lation Retained share- trolling Total
premium 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 for the year (579) 121 944 121 365 (854) 120 511
- Profit for the year 121 944 121 944 (854) 121 090
- Foreign currency translation reserve (579) (579) (579)
Transactions with owners recorded
directly in equity
- Purchase of controlling interest
in subsidiary 854 854
- Share-based payment 14 000 14 000 14 000
- Dividends paid to equity holders (70 057) (70 057) (70 057)
Balance at 31 July 2016 1 863 (442) 511 630 513 051 513 051
Total comprehensive income for the year (151) 146 520 146 369 (3 918) 142 451
- Profit for the year 146 520 146 520 (3 918) 142 602
- Foreign currency translation reserve (151) (151) (151)
Transactions with owners recorded
directly in equity
- Share issue - Rights offer 288 713 288 713 288 713
- Share issue - Acquisition shares 153 582 153 582 153 582
- Direct listing costs (373) (373) (373)
- Share based payment 3 720 3 720 3 720
- Shares repurchased (12) (10 588) (10 600) (10 600)
- Shares issued in terms of the share
option scheme 53 (3 729) (3 676) (3 676)
- Dividends paid to equity holders (86 875) (86 875) (86 875)
Balance at 31 July 2017 473 826 (593) 560 678 1 033 911 (3 918)1 029 993
Directors: MP Malungani (Chairman), WA du Plessis* (Group Chief Executive),
AW Heide* (Finance Director and COO), P Anastassopoulos, R Cooper,
MJ Jooste, B Kantor, SKC Khampepe, NJ Mboweni (Mrs), VJ Moodley*,
Dr E Nkosi, JA Stuart*, CJH van Niekerk, JB Walters (*Executive)
Company Secretary: F Moloi (Mrs)
Sponsor: Investec Bank Limited
Registered Office: Turffontein Racecourse, 14 Turf Club Street, Turffontein
Transfer Secretaries: Computershare Investor Services Proprietary Limited
Share code: PHM
ISIN: ZAE000039269
Sponsor: Investec Bank Limited
Website: www.phumelela.com
Date: 06/10/2017 07:05:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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