Wrap Text
Reviewed Preliminary Condensed Consolidated Financial Results for the year ended 30 September 2017
CORONATION FUND MANAGERS
(Incorporated in the Republic of South Africa)
Registration number: 1973/009318/06
JSE share code: CML
ISIN: ZAE000047353
("Coronation" or "the company")
REVIEWED PRELIMINARY CONDENSED CONSOLIDATED FINANCIAL RESULTS
FOR THE YEAR ENDED 30 SEPTEMBER 2017
- Assets under management of (AUM) of R614 billion
- Diluted headline earnings per share of 437.5 cents
- Total dividend per share of 437.0 cents
RESULTS
Coronation Fund Managers Ltd (Coronation) delivered credible results that are in line with management expectations for the 12 months to 30 September 2017.
Our entire range of client portfolios performed very well against a backdrop of strong market gains worldwide. For the year, the MSCI All Country World Index delivered
a return of 18.7% and the MSCI Emerging Markets Index added 22.5% (both in US dollar terms), while the FTSE/JSE All Share Index gained 10.2% (in rand terms). Despite
ongoing domestic political uncertainty and volatility in the US dollar and euro, the rand exchange rate has been relatively resilient during the 12-month period, with the
local currency strengthening by 1.2% against the US dollar (to close at R13.55) and by 3.7% against the euro (to close at R16.01).
As a cyclical business, Coronation's revenue stream is highly geared to the returns of the market and the level of outperformance it generates on behalf of its clients.
While total AUM rose by 2.5% for the full year (September 2016: R599 billion) average AUM declined by 3.5% over the period, contributing to the decline in revenue
of 3.1% to R3.9 billion (September 2016: R4.0 billion) for the year. Although certain once-off fixed expenses relating to our retail client reporting and correspondence
system, and outsourced fund administration function were incurred during the year under review, the decrease in variable expenses resulted in an overall decline of 4.2% in
total expenses. The variable cost nature of our business model dampens the impact of a decline in revenue on profits. The combined effect of these factors was a 2.3% decline
in diluted headline earnings per share to 437.5 cents (September 2016: 447.6 cents).
BUSINESS UPDATE
We are an active manager with a valuation-driven investment philosophy. The key driver of our success is our ability to create long-term value on behalf of clients. Both our
institutional and retail businesses are acknowledged as industry leaders in the South African market. Our homegrown expertise in managing money in global markets has been
recognised by an increasing number of international allocators of capital, and our global franchise has developed into a compelling business in its own right. Growing this
franchise will be a key focus area in the years ahead.
Since our inception in 1993, we have built a track record of producing significant market-beating returns over meaningful time periods - an achievement very few fund
managers can lay claim to. Of our institutional and retail assets, 98.9% has outperformed their respective benchmarks since inception.
INSTITUTIONAL BUSINESS
Our institutional business manages assets for both South African and international investors, totalling R376 billion (September 2016: R374 billion).
South Africa
We are a significant participant in the local institutional market, investing assets on behalf of a substantial portion of domestic retirement funds. Our local institutional
AUM totals R305 billion (September 2016: R323 billion), which represents a meaningful share of the market.
Our decision to reopen our top-performing SA Equity and Multi-Asset portfolios to new investors in March 2017 (after being closed for nearly five years) has been very well
received by the market, and increased engagements are taking place with both South African and global investors.
The local pension funds industry continues to see structural net outflows, which have been exacerbated by the poor economic conditions. Notwithstanding this backdrop, we are
encouraged by the sharp slowdown in net outflows to R43.7 billion over the period (September 2016: R58.1 billion). Our business is well positioned to take advantage of
industry shifts and we expect to see a positive impact on flows from our reopened strategies. We continue to lead the market in many areas, including in making bold new
changes to our hedge funds fees, which is a global first. Further, we offer a complete and easily understandable range of solutions that has consistently delivered market-
beating performance for our investors over the long term.
A large number of our institutional investors have been invested with us for more than a decade and we are proud of the investment returns they have achieved.
Within our South African specialist equity strategies:
- Coronation Houseview Equity has produced a return of 17.5% p.a. since its inception in October 1993, thereby delivering an active return (alpha) of 2.7% p.a., while Coronation
Aggressive Equity has produced a return of 18.0% p.a. since its launch in February 2002, delivering alpha of 2.7% p.a.
Within our market-leading multi-asset strategies:
- Coronation Global Houseview has delivered 16.5% p.a. since its launch in October 1993, thereby representing a real return of 10.3% p.a., while Coronation Managed has produced
16.9% p.a. since its launch in May 1996, representing a real return of 11.0% p.a.
Within our South African specialist fixed income strategies:
- Coronation Strategic Bond has produced a return of 10.0% p.a. since its inception in January 2008, thereby outperforming the BEASSA All Bond Index by 1.5% p.a., while Coronation
Active Bond has produced a return of 11.6% p.a. since its launch in July 2000, representing alpha of 0.9% p.a.
Global
In the more than nine years since the launch of our global franchise, we have made great strides in establishing a world-class track record across our entire product range.
Our expertise and perspective in managing money from an emerging market resonate well with many investors globally, attracting R7.4 billion in new flows (14.5% of
opening AUM) during the period. Currently, we manage a combined total of R71 billion (September 2016: R51 billion) in our global strategies on behalf of a number of
leading international retirement funds, endowments and family offices.
The long-term track records of our global portfolios are highly compelling:
- Coronation Global Emerging Markets Equity Strategy has produced a return of 8.5% p.a. (in US dollars) since its inception in July 2008, delivering alpha of
5.3% p.a.
- Coronation Africa Frontiers has delivered an absolute return of 9.3% p.a. (in US dollars) since its launch in October 2008, placing it at the top of its peer group
globally.
- Coronation Global Equity Fund of Funds has produced a return of 6.7% p.a. (in US dollars) since its inception in July 2000, delivering alpha of 2.0% p.a.
- Coronation Global Managed Strategy has delivered a return of 9.3% p.a. (in US dollars) since its inception in November 2009, representing a real return of 7.6%.
All institutional performance returns are stated gross of fees.
RETAIL BUSINESS
We remain one of the country's foremost managers of long-term assets in the collective investment schemes industry. Poor sentiment and challenging conditions in the local
economy contributed to subdued net inflows at industry level, which were significantly below the average achieved since the global financial crisis. Against this
backdrop, we experienced reduced net outflows of R6.9 billion (September 2016: R18.4 billion). If we exclude more volatile money market flows, our total net outflow figure
equals R5.3 billion for the period. Our retail AUM rose to R238 billion (September 2016: R225 billion).
Performance highlights across our domestic as well as international fund range are detailed below, which reflect consistent first-quartile rankings in their respective
Morningstar categories since their respective inception dates:
- Coronation Top 20, a top-performing general equity fund, has outperformed its benchmark by 4.5% p.a. since its inception in October 2000, and by 3.1% p.a. over the past
10 years.
- Coronation Balanced Plus, the no. 1 balanced fund in South Africa since its launch in April 1996, has outperformed its average competitor by 2.4% p.a. and inflation by,
on average, 8.8% p.a. over this period.
- Coronation Capital Plus, the no. 1 multi-asset medium equity fund since its inception in July 2001, has delivered a real return of 6.8% p.a. over this period.
- Coronation Balanced Defensive, a top-performing conservative fund, has produced a real return of 4.0% p.a. since its launch in February 2007.
- Coronation Strategic Income, the no. 1 multi-asset income fund since its launch in July 2001, has outperformed cash by, on average, 2.7% p.a. over this same period.
- Coronation Global Opportunities Equity [ZAR] Feeder, a top-performing global equity general fund since its launch in August 1997, has outperformed the global equity
market by 1.0% p.a. over its more than 20-year history.
- Coronation Global Managed [ZAR] Feeder, the no. 1 global multi-asset high-equity fund in South Africa since its launch in October 2009, has outperformed its average
competitor by 2.2% p.a. over this same period.
All performance returns are stated net of fees for the respective retail classes.
We continuously review fees as market conditions and client preferences change. Over the last few years, we have standardised and simplified fees across our fund range,
most recently by adopting the same fee across our multi-asset funds regardless of risk budget. Given the scale benefits achieved in our growing international business,
we were also able to lower the fund management and administration charges in our global funds. These changes will continue to benefit clients through enhanced investment
outcomes, and shareholders through contributing to the sustainability of our market position.
TRANSFORMATION
Coronation is a proudly South African business. We have achieved industry-leading transformation in all areas of our business, and have made a significant contribution to
the transformation and development of skills in the broader financial services industry. Highlights include:
- Coronation is 22.9% black owned (as measured by the Financial Sector Charter), which includes our employee-owned empowerment vehicle, the Imvula Trust.
- More than 50% of our employee complement is black, of which 60% are female.
- Within our South African-focused investment team, three out of the four leadership roles are held by black employees, while 43% of our portfolio managers are black.
- Three out of our four key business executives are black, while black representation at board level is 63%.
- The successful Coronation Business Support Programme, which has directly benefited nine black South African stockbroking companies over its lifespan of 10 years, has
inspired the creation of a broader industry programme. The Association for Savings and Investment South Africa (ASISA), together with six leading industry participants,
including Coronation, launched this new initiative last year.
- As a sponsor and co-founder of ASISA's Independent Financial Advisor (IFA) Development Programme, we provide business development support and skills training to black IFAs.
Since the programme's inception in 2015, it has trained 60 black IFA practices and created internship opportunities for 43 individuals.
We are unwavering in our efforts to uplift society through the holistic approach that we apply to our Corporate Social Investment programmes. With a focus on literacy,
numeracy, entrepreneurial, financial and life skills, we empower contributors from the whole community to rise above their challenges.
PENDING RETIREMENT OF FINANCIAL DIRECTOR
After almost 25 years with Coronation, Mr John Snalam indicated that he will retire as chief financial officer and financial director of the group after he reaches the
company retirement age of 60 years in December 2018. He will remain in these roles until the conclusion of the annual general meeting (AGM) to be held in February 2019.
John has been with Coronation since its inception in 1993 and has served in his current position as financial director of the group for the past five years. His retirement
notice affords the company more than 12 months to ensure an orderly handover of responsibilities. A recruitment process has been launched and a further announcement
will be released when the new financial director is formally appointed at the AGM in February 2019.
FINAL DIVIDEND
We continue to reward shareholders through regular and significant distributions of free cash flow generated. We endeavour to distribute at least 75% of after-tax cash
profit. After assessing any projected future cash requirements, a final gross dividend of 217.0 cents per share has been declared for the year ended 30 September 2017,
which has resulted in a final net dividend of 173.6 cents per share for shareholders subject to Dividends Tax (DT). Together with the interim gross dividend of 220.0 cents
per share, this amounts to a total gross dividend of 437.0 cents per share for the year.
Last day to trade Tuesday, 5 December 2017
Shares trade ex dividend Wednesday, 6 December 2017
Record date Friday, 8 December 2017
Payment date Monday, 11 December 2017
Share certificates may not be dematerialised or rematerialised between Wednesday, 6 December 2017 and Friday, 8 December 2017, both dates inclusive. In terms of DT, the
following additional information is disclosed:
- The local DT rate is 20%.
- The number of ordinary shares in issue at the date of this declaration is 349 799 102.
- Coronation's tax reference number is 9 675 107 719.
PROSPECTS
Our business remains anchored in our relentless commitment to the long term and the delivery of compelling investment returns for our clients. The near-term outlook appears
sound. Net flows have normalised over the past year; we are yet to see the flow impact of our re-opened South African institutional strategies and our global
franchise continues to show strong prospects across a wider range of products. Further, our long-term investment track record has been bolstered by our contrarian views,
which have been vindicated over the past two years. While continued near-term volatility and uncertainty may persist, our robust investment approach enables us to make
appropriate long-term decisions for the benefit of our clients. We believe that our success in achieving this will ensure long-term value for all stakeholders.
EXTERNAL AUDIT REVIEW
The external auditor, EY, reviewed the preliminary condensed consolidated statement of financial position of Coronation as at 30 September 2017 and the related condensed
consolidated statements of comprehensive income, changes in equity and cash flows for the year then ended, and other explanatory notes. The review has been conducted in
accordance with the International Standard on Review Engagements 2410. Copies of the unqualified report of EY are available for inspection at the registered office of the
company. The auditor's report does not necessarily report on all of the information contained in this announcement. 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 issuer's registered office.
Shams Pather Anton Pillay John Snalam
Chairman Chief executive officer Chief financial officer
Cape Town
21 November 2017
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Reviewed Audited
30 Sept 30 Sept
2017 2016 %
R million R million Change
Fund management activities
Revenue 3 919 4 046 (3)
Other income 6 20
Operating expenses (1 934) (2 019) (4)
Share-based payment expense (6) (7)
Other expenses (1 928) (2 012)
Results from operating activities 1 991 2 047 (3)
Finance and dividend income 37 35
Finance expense (23) (22)
Share of profit of equity-accounted investee 8 9
Profit from fund management 2 013 2 069 (3)
Income attributable to policyholder linked assets and investment partnerships 2 20
Net fair value gains on policyholder and investment partnership financial instruments 45 58
Administration expenses borne by policyholders and investors in investment partnerships (43) (38)
Profit before income tax 2 015 2 089 (4)
Income tax expense (492) (515)
Taxation on shareholder profits (490) (495)
Taxation on policyholder investment contracts (2) (20)
Profit for the year 1 523 1 574 (3)
Other comprehensive income (to be reclassified to profit and loss in future periods) 67 37
Foreign currency translation differences for foreign operations (24) (8)
Net change in fair value of available-for-sale financial assets 91 45
Total comprehensive income for the year 1 590 1 611
Profit attributable to:
- equity holders of the company 1 523 1 574 (3)
- non-controlling interest - -
Profit for the year 1 523 1 574
Total comprehensive income attributable to:
- equity holders of the company 1 590 1 611 (1)
- non-controlling interest - -
Total comprehensive income for the year 1 590 1 611
Earnings per share (cents)
- basic 435.4 450.0 (3)
- diluted 435.4 450.0 (3)
Note to the statement of comprehensive income
Headline earnings per share (cents)
- basic 437.5 447.6 (2)
- diluted 437.5 447.6 (2)
Dividend per share (cents)
- interim 220.0 229.0 (4)
- final 217.0 218.0 (0)
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Reviewed Audited
30 Sept 30 Sept
2017 2016
R million R million
Assets
Intangible assets 1 088 1 088
Equipment 21 31
Investment in equity-accounted investees 39 37
Deferred tax asset 171 162
Investments backing policyholder funds and investments held through investment partnerships 55 721 64 007
Investment securities 934 1 097
Trade and other receivables 558 498
Cash and cash equivalents 564 538
Total assets 59 096 67 458
Liabilities
Long-term borrowings (note 3) 150 150
Deferred tax liabilities 24 25
Policyholder investment contract liabilities and liabilities to holders of interests in
investment partnerships 55 718 63 988
Short-term portion of long-term borrowings (note 3) 150 150
External investors in consolidated funds – 269
Taxation payable 35 4
Trade and other payables 747 694
Total liabilities 56 824 65 280
Net assets 2 272 2 178
Equity
Share capital and premium 256 256
Retained earnings 1 607 1 586
Reserves 243 200
Total equity attributable to equity holders of the company 2 106 2 042
Non-controlling interest in consolidated funds (note 5) 166 136
Total equity 2 272 2 178
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
Reviewed Audited
30 Sept 30 Sept
2017 2016
R million R million
Cash flows from operating activities
Profit from fund management 2 013 2 069
Non-cash and other adjustments 15 27
Operating cash flows before changes in working capital 2 028 2 096
Working capital changes (5) (18)
Cash flows from policyholders and investment partnership activities (977) 833
Cash generated from operations 1 046 2 911
Interest paid (23) (22)
Income taxes paid (454) (502)
Net cash from operating activities 569 2 387
Cash flows from investing activities
Finance and dividend income 37 35
Acquisition of equipment (10) (13)
Net disposal/(acquisition) of investment securities 9 (13)
Net cash from investing activities 36 9
Cash flows from financing activities
Dividends paid (1 532) (1 745)
Net cash from financing activities (1 532) (1 745)
(Decrease)/increase in cash and cash equivalents (927) 651
Net increase/(decrease) in cash and cash equivalents - shareholders 50 (182)
Net (decrease)/increase in cash and cash equivalents - policyholders and investment partnerships (977) 833
Cash and cash equivalents at beginning of period 9 210 8 567
Cash and cash equivalents at beginning of period - shareholders 538 728
Cash and cash equivalents at beginning of period - policyholders and investment partnerships 8 672 7 839
Effect of exchange rate fluctuations on cash held (24) (8)
Cash and cash equivalents at end of period 8 259 9 210
Cash and cash equivalents at end of period - shareholders 564 538
Cash and cash equivalents at end of period - policyholders and investment partnerships 7 695 8 672
The above cash flows include the policyholder and investment partnership activities. These cash flows represent net
contributions and withdrawals by policyholders and investment partnerships and the related investing activities.
Cash and cash equivalents of policyholders and investment partnerships are not available for use by the
shareholders of the group.
CONDENSED CONSOLIDATED SEGMENT REPORT
Africa International Group
Reviewed Audited Reviewed Audited Reviewed Audited
30 Sept 30 Sept 30 Sept 30 Sept 30 Sept 30 Sept
R million 2017 2016 2017 2016 2017 2016
Segment external revenue 2 525 2 690 1 394 1 356 3 919 4 046
Segment operating expenses (1 461) (1 501) (473) (518) (1 934) (2 019)
Segment profit 1 064 1 189 921 838 1 985 2 027
Share of income of equity-accounted investee 8 9 - - 8 9
Net finance and other income/(expenses) 17 36 3 (3) 20 33
Profit from fund management 1 089 1 234 924 835 2 013 2 069
Income* 2 20
Profit before income tax 2 015 2 089
Segment assets 1 626 1 286 451 878 2 077 2 164
Investments* 57 019 65 294
Total assets 59 096 67 458
* Income and investments are attributable to and backing policyholder funds and investments held through
investment partnerships, consolidated funds and other assets.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Issued
capital
and
reserves
attri-
Foreign butable
Share currency Share- to equity Non-
capital trans- based Revalua- holders con-
and lation Retained payment tion of the trolling Total
R million premium reserve earnings reserve reserve company interest equity
Balance at 30 September 2015 (audited) 256 163 1 757 22 (29) 2 169 - 2 169
Total comprehensive income for the year
Profit for the year 1 574 1 574 1 574
Other comprehensive income (available to be recycled to profit and loss in future periods)
Currency translation differences (8) (8) (8)
Revaluation of available-for-sale financial assets 45 45 45
- net change in fair value 52 52 52
- reclassified to profit or loss on disposal (7) (7) (7)
Total other comprehensive income - (8) - - 45 37 - 37
Total comprehensive income for the year - (8) 1 574 - 45 1 611 - 1 611
Transactions with owners recorded directly to equity
Share-based payments 7 7 7
Dividends paid (1 745) (1 745) (1 745)
Non-controlling interest in consolidated funds (note 5) 136 136
Total transactions with owners - - (1 745) 7 - (1 738) 136 (1 602)
Balance at 30 September 2016 (audited) 256 155 1 586 29 16 2 042 136 2 178
Total comprehensive income for the year
Profit for the year 1 523 1 523 1 523
Other comprehensive income (available to be recycled to profit and loss in future periods)
Currency translation differences (24) (24) (24)
Revaluation of available-for-sale financial assets 91 91 91
Total other comprehensive income - (24) - - 91 67 - 67
Total comprehensive income for the year - (24) 1 523 - 91 1 590 - 1 590
Transactions with owners recorded directly to equity
Share-based payments 6 6 6
Transfer to retained earnings 30 (30)
Dividends paid (1 532) (1 532) (1 532)
Change in non-controlling interest in consolidated funds (note 5) 30 30
Total transactions with owners - - (1 502) (24) - (1 526) 30 (1 496)
Balance at 30 September 2017 (reviewed) 256 131 1 607 5 107 2 106 166 2 272
EARNINGS PER SHARE
Reviewed Audited
30 Sept 30 Sept
2017 2016
R million R million
Earnings attributable to shareholders 1 523 1 574
Non-controlling interest - -
Earnings attributable to ordinary shareholders 1 523 1 574
Loss/(profit) on disposal of financial assets available for sale 7 (7)
Profit on disposal of group operations - (2)
Headline earnings attributable to ordinary shareholders 1 530 1 565
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1. Basis of preparation and accounting policies
The financial information has been prepared in accordance with the framework concepts and the measurement and recognition requirements of the International Financial
Reporting Standards (IFRS), the International Accounting Standard 34 Interim Financial Reporting, the Listings Requirements of the JSE Limited, the SAICA Financial
Reporting Guides as issued by the Accounting Practices Committee and Financial Reporting Pronouncements as issued by the Financial Reporting Standards Council, as well as
the South African Companies Act, Act 71 of 2008. The condensed consolidated financial statements do not include all of the information required for a complete set of
IFRS annual financial statements.
These condensed consolidated financial statements have been prepared in accordance with the historical cost basis except for certain financial instruments which are stated
at fair value. The condensed consolidated financial statements are presented in rand, rounded to the nearest million. The accounting policies applied in the
presentation of the condensed consolidated financial statements are in terms of IFRS and, with the exception of the early adoption of IFRIC 23: Uncertainty over income tax
treatments, are consistent with those presented in the previous annual financial statements. The early adoption of IFRIC 23: Uncertainty over income tax treatments has
had no impact on the condensed consolidated financial statements. Please see note 6 for more information regarding the relevant uncertain income tax treatments for this
reporting period.
These reviewed results have been prepared under the supervision of H Rawoot CA(SA).
2. Related party transactions
Related party transactions for the current year are similar to those disclosed in the group's annual financial statements for the year ended 30 September 2016. No new
significant related party transactions arose during the current year.
3. Long-term and short-term borrowings
Cumulative redeemable preference shares with dividends linked to prime are payable on a quarterly basis, with R150 million capital repayments due on 31 March 2018 and
1 April 2020. The latter was previously due on 31 March 2017, with the terms now renegotiated.
4. Fair value disclosure
The table below analyses financial instruments carried at fair value, by valuation method. The different levels have been defined as follows:
Level 1 Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2 Inputs other than quoted prices included in Level 1 that are observable for the asset or
liability, either directly (i.e. as closing prices) or indirectly (i.e. derived from closing prices). The majority
of Level 2 investments are deposits held with financial institutions. The fair values of these deposits are
determined using a discounted cash flow valuation methodology based on market rates, reflecting the time value of
money and counterparty credit risk. The fair value of policyholder and investment partnership liabilities that are
included in Level 2 of the hierarchy are measured with reference to the quoted prices in an active market of the
investments underlying the liabilities. Cash and cash equivalent balances along with their related liabilities of
R2 253 million (R2 170 million: 30 September 2016) have been excluded from the below table in current and prior
years respectively.
Level 3 Inputs for the asset or liability that are not based on observable market data (unobservable inputs).
Level 1 Level 2
R million Restated* Restated* Level 3 Total
September 2017
Investments backing policyholder funds and investments held through investment partnerships 46 960 6 508 - 53 468
Investment securities 933 - 1 934
47 893 6 508 1 54 402
Policyholder, external investor and investment partnership liabilities - 53 465 - 53 465
September 2016
Investments backing policyholder funds and investments held through investment partnerships 54 520 7 317 - 61 837
Investment securities 1 060 - 37 1 097
55 580 7 317 37 62 934
Policyholder, external investor and investment partnership liabilities 269 61 818 - 62 087
* Policyholder, external investor and investment partnership liabilities to the value of R54 520 million as at 30 September 2016 previously categorised as Level 1 have
been restated as Level 2. These changes have been made to more appropriately reflect the nature of the fair value of the liability.
During the current year, a net amount of R222 million in debentures were transferred from Level 1 to Level 2 as these are now considered to be held in an inactive market.
Fair value for all other financial assets and liabilities have not been presented because they are not carried at fair value and their carrying amounts approximate fair
value.
5. Non-controlling interest in consolidated funds
The non-controlling interest in consolidated funds arises as a result of the continued consolidation of Coronation Global Frontiers Fund. The group's interest in the
Coronation Global Equity Select Fund was diluted in the period and the fund is no longer consolidated. Investment securities and external investors in consolidated funds
were reduced by R269 million on deconsolidation.
6. Contingent liabilities: South African Revenue Service (SARS) matters
From time to time, in common with other organisations, companies in the group are subject to review by SARS. One of our companies has been the subject of a review on a
matter of principle relating to international operations, and assessed for the 2012 financial period, to which management strongly disagrees and has objected. Management is
confident, supported by external advisors, of the company's position and an outflow is not considered probable should the matter be interpreted by a court of law, the
ultimate tax authority on these matters. Any amounts involved are currently not considered capable of reliable estimation.
Directors:
S Pather (Chairman)*, A C Pillay (CEO), J A Snalam (CFO), L Boyce*, J G February*, J D McKenzie*, H A Nelson*, A Watson* (* Independent non-executive)
Registered office:
7th Floor, MontClare Place, Cnr Campground and Main Roads, Claremont 7708, Cape Town
Postal address:
PO Box 44684, Claremont 7735, Cape Town
Registration number:
1973/009318/06
Transfer secretaries:
Computershare Investor Services (Pty) Ltd,
Rosebank Towers
15 Biermann Avenue
Rosebank
2196
JSE share code: CML
ISIN: ZAE000047353
Any forward-looking information contained in this announcement has not been reviewed or reported on by the company's external auditors.
Sponsor: Deutsche Securities (SA) (Pty) Ltd
www.coronation.com
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