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Condensed unaudited consolidated financial statements for the six months ended 31 August 2017
NEWPARK REIT LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 2015/436550/06)
JSE share code: NRL ISIN: ZAE000212783
(Approved as a REIT by JSE)
("Newpark" or "the Company" or "the Group")
CONDENSED UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 31 AUGUST 2017
DIRECTORS' COMMENTARY
Nature of Business
Newpark is a property holding and investment company that is currently invested in A-grade commercial and industrial properties.
Property portfolio
Newpark's property portfolio consists of four properties. Two are located in the heart of Sandton, Gauteng, namely the JSE Building
which has 18,163 m2 of gross lettable area ("GLA") and an adjoining property known as 24 Central, which has 15,083 m2 of GLA. A
further property is situated in Linbro Business Park which has 12,317 m2 of GLA and the fourth property is situated in Crown Mines
which has 11,277 m2 of GLA. The combined independent valuations of these properties are performed annually at the group's year-
end. The latest valuation as at 28 February 2017 was R1.34 billion.
Strategy
Newpark's investment strategy is to seek well positioned prime commercial and industrial properties which provide quality cash
flows with the potential of upward rating on lease renewals and/or redevelopment opportunities within the medium to long-term.
In addition to the core business of acquiring and developing physical assets in South Africa, Newpark will explore the potential for
investment into listed real estate securities that offer good value in certain offshore markets.
Commentary on results
The board is pleased to present the group's results for the six months period under review, which is in line with the guidance
provided. The tenant profile has remained largely the same and no acquisitions or disposals were made during this period.
Distributable Earnings
Distributable earnings for the six months to 31 August 2017 grew by 6.6% to 26.65 cents per share (H1 F2017: 25.00 cents per
share). Accordingly, the board has declared an interim dividend of 26.64973 cents per share.
Sectoral split and Lease expiry profile
SECTORAL SPLIT
Based on: GLA Gross Rentals
Mixed use 26.5% 38.6%
Office 32.0% 39.7%
Industrial 41.5% 21.7%
100.0% 100.0%
LEASE EXPIRY PROFILE
Based on: GLA Gross Rentals
Vacant 4.8% 2.3%
Feb 2018 5.7% 8.0%
Feb 2019 7.6% 7.2%
Feb 2020 4.8% 4.3%
Feb 2021 0.4% 1.9%
Feb 2022 2.9% 2.2%
> Feb 2022 73.8% 74.1%
100.0% 100.0%
Funding
Amount Margin
Facilities R'000
Expiry May 2020 (facility 1A) 450 000 3-month Jibar+1.95% [9.292%]
Expiry May 2020 (facility 1B) 50 000 Prime-1.28% [8.970%]
TOTAL 500 000
Amount Hedges of 3-month Jibar
Hedge instruments R'000 base-rate
Hedge 1: rate swap – amended on 2017/6/30, replaced by Hedge 4 135 000 8.52%
Hedge 2: rate cap – expires 2019/1/18 135 000 8.52%
Hedge 3: rate swap – expires 2020/4/10 (rolls into Hedge 5) 230 000 7.70%
Hedge 4: rate swap – started 2017/6/30 / expires 2022/5/31 135 000 8.085%
Hedge 5: rate swap – to start 2020/4/10 / expires 2022/5/31 135 000 7.993%
Two separate RMB facilities were restructured on 24 May 2017 into a 3-year Term Loan Facility (facility 1A) of R450 000 000 maturing
in May 2020 and a Revolving Credit Facility (facility 1B) of R50 000 000 maturing in May 2020. The new consolidated facilities are
secured mainly by mortgage bonds together with a cession of the leases over the four properties. The term loan remains
appropriately hedged as outlined above.
Interest rate & Percentage of debt hedged
The all-in weighted average cost of funding is 9.681% (28 February 2017: 9.708%) and the average hedge-term is 2.9 years. It is the
board's policy to hedge at least 70% of the exposure to interest rate risk and Newpark currently has 73% of its exposure hedged.
Summary of financial performance
31 August 2017 31 August 2016 28 February 2017
Shares in issue 100,000,001 100,000,001 100,000,001
Net asset value per share R8.75 R8.34 R8.75
Loan-to-value ratio * 33.3% 20.8% 33.5%
Gross property operating expense ratio 17.0% 17.6% 20.6%
*The loan-to-value ratio is calculated by dividing interest bearing borrowing net of cash on hand by the total of investment property.
Outlook
The board is confident that Newpark will deliver growth of 6,5% to 7,5% in distributable income per share for FY 2018. The forecast
is based on the assumption that a stable macro-economic environment will prevail, no material tenant default will occur and
operating cost increases will not exceed inflation. This forecast has not been audited or reviewed by the Company's auditors.
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Unaudited Unaudited Audited
restated
31 August 31 August 28 February
2017 2016 2017
(R'000) (R'000) (R'000)
Assets
Non-current assets
Investment properties note 3 1 235 407 983 329 1 234 246
Straight-line lease asset 95 580 65 602 87 758
Lease incentive 18 526 21 173 19 849
1 349 513 1 070 104 1 341 853
Current Assets
Trade and other receivables 7 754 5 989 4 834
Straight-line lease asset 1 080 - -
Lease incentive 2 647 2 647 2 647
Cash and cash equivalents 49 723 47 338 50 746
Total Current Assets 61 204 55 974 58 227
Total Assets 1 410 717 1 126 078 1 400 080
Equity and Liabilities
Equity
Share capital 619 918 619 918 619 918
Reserves 180 412 180 412 180 412
Retained income 74 980 33 464 75 024
875 310 833 794 875 354
Liabilities
Non-Current Liabilities
Bank borrowings 500 000 500 000 500 000
Derivative financial instruments 12 723 3 078 3 078
512 723 503 078 503 078
Current liabilities
Trade and other payables 22 684 20 212 20 611
Current portion of bank borrowings - - 230 882
Receiver of revenue - - 155
Total Current Liabilities 22 684 20 212 251 648
Total Liabilities 535 407 292 284 524 726
Total Equity and Liabilities 1 410 717 1 126 078 1 400 080
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Unaudited Unaudited Audited
6 months ended 6 months ended 12 months ended
31 August 31 August 28 February
2017 2016 2017
(R'000) (R'000) (R'000)
Revenue 71 086 54 993 109 663
Property operating expenses (12 051) (10 861) (22 699)
Administrative expenses (2 944) (1 374) (3 096)
Net gain from fair value adjustment on investment - - 37 980
property
Net change in fair value of financial instruments at (9 645) (2 772) (3 777)
fair value through profit or loss
Operating profit 46 446 39 986 118 071
Finance income 1 438 1 568 3 316
Finance costs (23 521) (12 916) (26 190)
Profit before taxation 24 363 28 638 95 196
Taxation 155 - -
Profit for the period 24 518 28 638 95 196
Other comprehensive income - - -
Total comprehensive income 24 518 28 638 95 196
Earnings per share information (cents per share)
Basic earnings per share note 4 24.52 28.64 95.20
Diluted earnings per share note 4 24.52 28.64 95.20
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Share capital Share issue Total share Capital Retained Total
costs capital reorganisation (loss)/income equity
reserve
(R'000) (R'000) (R'000) (R'000) (R'000) (R'000)
Audited
Balance at 1 March 2016 625 000 (4 994) 620 006 180 412 4 826 805 244
Profit for the period - - - - 95 196 95 196
Total comprehensive income
for the period - - - - 95 196 95 196
Costs associated with issue of - (88) (88) - - (88)
shares
Dividends - - - - (24 999) (24 999)
Total contributions by and - (88) (88) - (24 999) (25 086)
distributions to owners of
company recognised directly
in equity
Balance at 1 March 2017 625 000 (5 082) 619 918 180 412 75 024 875 354
Unaudited
Profit for the period - - - - 24 518 24 518
Total comprehensive income
for the period - - - - 24 518 24 518
Dividend distributions to
owners of company
recognised directly in equity - - - - (24 562) (24 562)
Balance at 31 August 2017 625 000 (5 082) 619 918 180 412 74 980 875 310
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
Unaudited Unaudited Audited
6 months ended 6 months ended 12 months ended
31 August 31 August 28 February
2017 2016 2017
(R'000) (R'000) (R'000)
Cash flows from operating activities
Cash generated from operations 47 885 27 654 64 967
Finance income 1 438 1 568 3 316
Finance costs (23 521) (12 916) (26 191)
Net cash from operating activities 25 802 16 306 42 092
Cash flows from investing activities
Purchase of furniture and fittings (1 381) (1 185) (1 509)
Acquisition of Investment property - - (229 032)
Acquisition of investment in subsidiary - - 1 183
Net cash from investing activities (1 381) (1 185) (229 358)
Cash flows from financing activities
(Costs associated with share issue)/ Issue of shares - - (88)
Dividends paid (24 562) - (24 999)
Bank borrowings advanced - - 230 882
Bank borrowings repaid (882) - -
Net cash from financing activities (25 444) - 205 795
Total cash and cash equivalent movement for the (1 023) 15 121 18 529
period
Cash and cash equivalents at beginning of period 50 746 32 217 32 217
Total cash and cash equivalents at end of period 49 723 47 338 50 746
Additional info on cash flow:
Cash generated from operations before working 48 733 36 104 72 890
capital changes
Working capital changes (848) (8 450) (7 923)
Cash generated from operations 47 885 27 654 64 967
SIGNIFICANT FINANCIAL STATEMENT NOTES
1. BASIS OF PREPARATION AND ACCOUNTING POLICIES
The condensed unaudited consolidated financial statements for the six months ended 31 August 2017 have been prepared in
accordance with the requirements of the JSE Listings Requirements and the requirements of the Companies Act 71 of 2008 of South
Africa. The JSE Listings Requirements require interim reports to be prepared in accordance with the framework concepts and the
measurement and recognition requirements of International Financial Reporting Standards ("IFRS"), the SAICA Financial Reporting
Guides as issued by the Accounting Practices Committee and Financial Pronouncements as issued by the Financial Reporting
Standards Council, and 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 annual financial statements.
The condensed unaudited consolidated financial statements were compiled by Dries Ferreira, the financial director.
The directors are not aware of any matters or circumstances arising subsequent to the period-end that require any additional
disclosure or adjustment to the financial statements.
The directors take full responsibility for the preparation of this interim condensed report and for ensuring that the financial
information has been correctly extracted from the underlying unaudited financial statements. These condensed unaudited
consolidated interim financial statements have not been reviewed by the Company's auditors.
2. SEGMENTAL ANALYSIS
Segmental information
At 31 August 2017, the group is organised into three main operating segments:
- Mixed use (mainly office and retail)
- Office
- Industrial
The executive committee ("EXCO") is the chief operating decision maker of the group. The information contained in the segment
analysis is measured in a manner consistent with the information disclosed in the statement of comprehensive income and the
statement of financial position.
31 August 2017 (unaudited) Mixed use Office Industrial General Total
(R'000) (R'000) (R'000) (R'000) (R'000)
Revenue 27 443 28 235 15 408 - 71 086
Property operating expenses (10 461) - (1 590) - (12 051)
Administrative expenses - - - (2 944) (2 944)
Net change in fair value of financial - - - (9 645) (9 645)
instruments at fair value through profit or
loss
Operating profit 16 981 28 235 13 819 (12 589) 46 446
31 August 2016 (unaudited) Mixed use Office Industrial General Total
(R'000) (R'000) (R'000) (R'000) (R'000)
Revenue 26 705 28 288 - - 54 993
Property operating expenses (10 861) - - - (10 861)
Administrative expenses - - - (1 374) (1 374)
Fair value adjustments (1 257) (1 515) - - (2 772)
Operating profit 14 587 26 773 - (1 374) 39 986
28 February 2017 (audited) Mixed use Office Industrial General Total
(R'000) (R'000) (R'000) (R'000) (R'000)
Revenue 52 565 56 592 506 - 109 663
Property operating expenses (22 699) - - - (22 699)
Administrative expenses - - - (3 096) (3 096)
Fair value adjustments 16 768 19 244 1 969 (3 777) 34 203
Operating profit 46 634 75 836 2 475 (6 873) 118 071
The amounts provided to the executive committee ("EXCO") with respect to total assets are measured in a manner consistent with
that in the statement of financial position. These assets are allocated based on the operations of the segment.
31 August 2017 (unaudited) Mixed use Office Industrial General Total
(R'000) (R'000) (R'000) (R'000) (R'000)
Investment property 488 637 531 603 215 167 - 1 235 407
Straight-line lease asset 3 465 73 920 19 275 - 96 660
Lease incentive - 21 173 - - 21 172
Trade & other receivables 7 705 - 50 - 7 755
Cash & cash equivalents - - - 49 723 49 723
499 807 626 696 234 491 49 723 1 410 717
31 August 2016 (unaudited) Mixed use Office Industrial General Total
(R'000) (R'000) (R'000) (R'000) (R'000)
Investment property 469 713 513 616 - - 983 329
Straight-line lease asset 3 726 61 876 - - 65 602
Lease incentive - 23 820 - - 23 820
Trade and other receivables 5 605 - - 384 5 989
Cash & cash equivalents - - - 47 338 47 338
479 044 599 312 - 47 722 1 126 078
28 February 2017 (audited) Mixed use Office Industrial General Total
(R'000) (R'000) (R'000) (R'000) (R'000)
Investment property 487 773 531 603 214 870 - 1 234 246
Straight-line lease asset 3 727 67 901 16 130 - 87 758
Lease incentive - 22 496 - - 22 496
Trade & other receivables 3 562 - 1 272 - 4 834
Cash & cash equivalents - - - 50 746 50 746
495 062 622 000 232 272 50 746 1 400 080
The amounts provided to EXCO with respect to total liabilities are measured in a manner consistent with that in the statement of
financial position. These liabilities are allocated based on the operations of the segment.
31 August 2017 (unaudited) Mixed use Office Industrial General Total
(R'000) (R'000) (R'000) (R'000) (R'000)
Bank borrowings - - - 500 000 500 000
Derivative financial instruments - - - 12 723 12 723
Trade and other payables 4 299 16 265 331 1 788 22 684
4 299 16 265 331 514 511 535 407
31 August 2016 (unaudited) Mixed use Office Industrial General Total
(R'000) (R'000) (R'000) (R'000) (R'000)
Bank borrowings - 270 000 - - 270 000
Derivative financial instruments - 2 072 - - 2 072
Trade & other payables 4 104 15 557 - 551 20 212
4 104 287 629 - 551 292 284
28 February 2017 (audited) Mixed use Office Industrial General Total
(R'000) (R'000) (R'000) (R'000) (R'000)
Bank borrowings - 270 000 230 882 - 500 882
Derivative financial instruments - 3 078 - - 3 078
Trade and other payables 2 002 15 755 1 667 1 188 20 611
Receiver of revenue - - 155 - 155
2 002 288 833 232 704 1 188 524 726
Distributable income Unaudited Unaudited Audited
6 months ended 6 months ended 12 months ended
31 August 31 August 28 February
2017 2016 2017
(R'000) (R'000) (R'000)
Headline earnings (refer note 4) 24 518 28 638 57 216
Adjusted for:
Change in fair value of investment property as a (8 902) (6 958) (14 078)
result of amortisation of straight-line lease asset and
tax thereof
Change in fair value of investment property as a 1 323 1 323 2 647
result of amortisation of lease incentive and tax
thereof
Fair value adjustment of financial derivative 9 645 1 996 3 777
instruments and the tax thereof
Deferred tax and other non-cash movements 66 - -
26 650 24 999 49 562
Actual number of ordinary shares in issue ('000) 100 000 100 000 100 000
Reconciliation to dividend per share:
Distributable income per share (cents per share) 26,65 25,00 49,56
- Interim dividend per share 26,65 25,00 25,00
- Final dividend per share n/a n/a 24.56
3. Investment properties
For the six months under review the property value includes movement consisting of the increase in straight lining of the lease
assets and the decrease in lease incentives, as well as additions and depreciation relating to furniture and fittings.
31 August 2017 28 February 2017
(R'000) (R'000)
Cost/ Accumulated Carrying Cost/ Accumulated Carrying
Valuation depreciation value Valuation depreciation value
Investment property 1 232 530 - 1 232 530 1 231 629 - 1 231 629
Furniture and fittings 4 320 (1 443) 2 877 3 839 (1 222) 3 514
Total 1 236 850 (1 443) 1 235 407 1 235 469 (1 222) 1 234 246
Reconciliation of investment properties – 31 August 2017
Opening balance Additions Fair value Depreciation Closing
adjustments balance
Investment property 1 231 629 - - - 1 231 629
Furniture and fittings 2 617 1 381 - (220) 3 778
Total 1 234 246 1 381 - (220) 1 235 407
Reconciliation of investment properties - 28 February 2017
Opening balance Additions Fair value Depreciation Closing
adjustments balance
Investment property 980 747 212 902 37 980 - 1 231 629
Furniture and fittings 1 561 1 509 - (453) 2 617
Total 982 308 214 411 37 980 (453) 1 234 246
A register containing the information required by Regulation 25(3) of the Companies Regulations, 2011 is available for inspection at
the registered office of the Company.
31 August 28 February
2017 2017
(R'000) (R'000)
Fair value of investment property for accounting purposes
Opening fair value of property assets 1 344 500 1 065 000
Gross fair value adjustment on investment property - 37 980
Additions to furniture and fittings 1 381 1 509
Depreciation (220) (453)
Acquisition of investment property - 212 902
Acquisition of straight-line assets - 16 130
Straight-line lease asset and lease incentive movement 7 579 11 433
Property valuation 1 353 240 1 344 500
Less: straight-line lease income adjustment (non-current) (95 580) (87 758)
Less: straight-line lease income adjustment (current) (1 080) -
Less: lease incentive receivable (non-current) (18 526) (19 849)
Less: lease incentive receivable (current) (2 647) (2 647)
Closing carrying value of property assets 1 235 407 1 234 246
Securities
Mortgage bonds have been registered over investment properties with a fair value of R1 235 407 469 (February 2017:
R1 016 758 947) as security for interest bearing liabilities at a nominal value amounting to R500 000 000 (February 2017:
R271 000 000).
Details of valuation
The properties were last valued on 28 February 2017 using the discounted cash flow of future income streams method. The
valuations of the properties were performed by an independent valuer, Peter Parfitt of Quadrant Properties Proprietary Limited,
who is a registered valuer in terms of section 19 of the Property Valuers Professional Act, No 47 of 2000.
Refer to the annual financial statements as at 28 February 2017 for the details relating to the year-end valuation.
4. Earnings per share
Unaudited Unaudited Audited
restated
6 months ended 6 months ended 12 months ended
31 August 31 August 28 February
2017 2016 2017
Basic earnings per share (R'000) (R'000) (R'000)
Profit attributable to shareholders 24 518 28 638 95 196
Weighted average number of ordinary shares in issue 100 000 100 000 100 000
('000)
Basic earnings per share (cents per share) 24,52 28,64 95,20
Diluted earnings per share
There are no dilutive instruments in issue
Profit attributable to shareholders 24 518 28 638 95 196
Weighted average number of ordinary shares in issue 100 000 100 000 100 000
('000)
Basic diluted earnings per share (cents per share) 24,52 28,64 95,20
Headline earnings per share
Profit attributable to shareholders 24 518 28 638 95 196
Adjusted for:
Change in fair value of investment property and tax - - (37 980)
thereof
24 518 28 638 57 216
Weighted average number of ordinary shares in issue 100 000 100 000 100 000
('000)
Headline earnings per share (cents per share) 24,52 28,64 57,22
5. Payment of interim dividend
The board has approved and notice is hereby given of the interim gross dividend of 26,64973 cents per share for the six months
ended 31 August 2017.
The dividend is payable to Newpark's shareholders in accordance with the timetable set out below: 2017
Last date to trade cum dividend: Tuesday, 31 October
Shares trade ex dividend: Wednesday, 1 November
Record date: Friday, 3 November
Payment date: Monday, 6 November
Share certificates may not be dematerialised or rematerialised between Wednesday, 1 November 2017 and Friday,
3 November 2017, both days inclusive.
In accordance with Newpark's status as a REIT, shareholders are advised that the dividend meets the requirements of a "qualifying
distribution" for the purposes of section 25BB of the Income Tax Act, No. 58 of 1962 ("Income Tax Act"). The dividend will be deemed
to be a dividend for South African tax purposes, in terms of section 25BB of the Income Tax Act.
The dividend received by or accrued to South African tax residents must be included in the gross income of such shareholders and
will not be exempt from income tax (in terms of the exclusion to the general dividend exemption, contained in paragraph (aa) of
section 10(1)(k)(i) of the Income Tax Act) because it is a dividend distributed by a REIT. This dividend is, however, exempt from
dividend withholding tax in the hands of South African tax resident shareholders, provided that the South African resident
shareholders submitted the following forms to their Central Securities Depository Participant ("CSDP") or broker, as the case may
be, in respect of uncertificated shares, or the company, in respect of certificated shares:
a) a declaration that the dividend is exempt from dividends tax; and
b) a written undertaking to inform the CSDP, broker or the company, as the case may be, should the circumstances affecting
the exemption change or the beneficial owner cease to be the beneficial owner,
both in the form prescribed by the Commissioner for the South African Revenue Service. Shareholders are advised to contact their
CSDP, broker or the company, as the case may be, to arrange for the abovementioned documents to be submitted prior to payment
of the dividend, if such documents have not already been submitted.
Dividends received by non-resident shareholders will not be taxable as income and instead will be treated as an ordinary dividend
which is exempt from income tax in terms of the general dividend exemption in section 10(1)(k)(i) of the Income Tax Act. On 22
February 2017 the dividends withholding tax was increased from 15% to 20% and accordingly, any dividends received by a non-
resident from a REIT will be subject to dividend withholding tax at 20%, unless the rate is reduced in terms of any applicable
agreement for the avoidance of double taxation ("DTA") between South Africa and the country of residence of the shareholders.
Assuming dividend withholding tax will be withheld at a rate of 20%, the net dividend amount due to non-resident shareholders is
21.31978 cents per share. A reduced dividend withholding rate in terms of the applicable DTA, may only be relied upon if the non-
resident shareholder has submitted the following forms to their CSDP or broker, as the case may be, in respect of uncertificated
shares, or the company, in respect of certificated shares:
a) a declaration that the dividend is subject to a reduced rate as a result of the application of a DTA; and
b) a written undertaking to inform their CSDP, broker or the company, as the case may be, should the circumstances affecting
the reduced rate change or the beneficial owner cease to be the beneficial owner,
both in the form prescribed by the Commissioner for the South African Revenue Service. Non-resident shareholders are advised to
contact their CSDP, broker or the company, as the case may be, to arrange for the abovementioned documents to be submitted
prior to payment of the dividend if such documents have not already been submitted, if applicable.
The dividend will be transferred to dematerialised shareholders' CSDP accounts/broker accounts on Monday, 6 November 2017.
Certificated shareholders' dividend payments will be paid to certificated shareholders' bank accounts on or about, Monday,
6 November 2017.
Shares in issue at the date of declaration of dividend: 100,000,001
Newpark's income tax reference number: 9114003149.
6. Events after the reporting period
The directors are not aware of any material event which occurred after the reporting date and up to the date of this report.
7. Related parties
31 August 29 February
2017 2016
(R'000) (R'000)
Professional services – WellCapital (Pty) Ltd (JAI Ferreira director) 224 200
8. Prior period errors
Error 1:
The recognition of deferred tax and income tax in the accounting records of Newpark REIT Limited and its group-company was
inconsistent with the underlying assumption which must support the recognition of any income tax or deferred tax asset or
liability the manner in which the asset or liability will be realised in the ordinary course of business. With Newpark group being
classified as a REIT, and also expecting to maintain its classification as a REIT as a result of the intention to declare distributions in
line with the requirements of section 25BB of the Income Tax Act, it is therefore not correct to recognise any tax balance on the
statement of financial position. The change to REIT status was confirmed during the 2016 financial period and therefore these
changes would have had to be accounted for in the 2016 financial period. There was no impact recorded for the 2015 financial
period as the REIT status was achieved in 2016 only.
The correction of the errors results in adjustments as follows:
Restated Reported Difference
31 August 31 August
2016 2016
Statement of financial position (R'000) (R'000) (R'000)
Non-current assets
Deferred tax - 1 150 (1 150)
Equity
Retained income 33 464 17 719 15 745
Non-current liabilities
Deferred tax - (16 895) 16 895
Statement of profit or loss and other comprehensive income
Taxation expense - (1 160) 1 160
Error 2:
The recognition of a current portion of the straight-line lease asset was incorrectly recorded in the financial statements. The
principle of disclosing a current portion of straight-line lease assets is to disclose the portion of the straight-line lease asset that
will realise in cash in the next 12 months. None of the straight-line lease assets had any unwinding portion and accordingly the
correct disclosure between current and non-current was adopted for the this set of financial statements as no portion of the
straight-line lease assets should have been disclosed as current during the comparative periods.
The correction of the errors results in adjustments as follows:
Restated Reported Difference
31 August 31 August
2016 2016
(R'000) (R'000) (R'000)
Statement of financial position
Non-current assets
Straight-line lease asset 65 602 49 226 16 376
Current assets
Straight-line lease asset - 16 376 (16 376)
By order of the board.
Simon Fifield Dries Ferreira
Chief Executive Officer Financial Director
Johannesburg
16 October 2017
DIRECTORS
G D Harlow (Chairman) **, S P Fifield (Chief Executive Officer), J A I Ferreira (Financial Director), B D van Wyk *, D T Hirschowitz*,
K M Ellerine*, H C Turner **, D I Sevel ** S Shaw-Taylor**
* Non-executive director ** Independent non-executive director
There were no changes to the board of directors during this period.
REGISTERED OFFICE WEBSITE
51 West Street, Houghton, Gauteng, 2198 www.newpark.co.za
PO Box 3178, Houghton, Gauteng, 2041
COMPANY SECRETARY TRANSFER SECRETARY
CIS Company Secretaries Proprietary Limited Computershare Investor Services Proprietary Limited
DESIGNATED ADVISOR
Java Capital
Date: 16/10/2017 08:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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