Wrap Text
Unaudited Consolidated Interim Results and Interim Dividend Declaration for the six months ended 31 December 2017
COGNITION HOLDINGS LIMITED
Incorporated in the Republic of South Africa
(Registration number 1997/010640/06)
Share code: CGN ISIN: ZAE000197042
(“Cognition” or ‘the Group” or “the Company”)
UNAUDITED CONSOLIDATED INTERIM RESULTS AND INTERIM DIVIDEND DECLARATION
for the six months ended 31 December 2017
COMMENTARY
The board of directors of Cognition (“the board”) present the
unaudited condensed consolidated interim financial results for the
six months ended 31 December 2017 (“the period” or “the interim
period”), which should be read in conjunction with the audited
annual financial statements for the year ended 30 June 2017.
The unaudited condensed consolidated interim financial results are
available to be viewed on the Company’s website: www.cgn.co.za.
Group revenue for the interim period increased by 13.6% from R72.8
million to R82.6 million. This growth is due to increased business
activity within the Knowledge Creation and Management segment of
the business, which showed a growth of 28.2% from R39.9 million in
the prior period to R51.2 million during the interim period.
Revenue for Active Data Exchange Services declined by 6.5% for the
period, down from R33.6 million to R31.6 million. Due to
operational efficiencies, the Gross Profit for this segment only
showed a 2.8% decline.
Gross Profit for the Group remained flat with a 2% increase from
R48.3 million in the prior period to R49.3 million being recorded.
The Group implemented various strategies to ensure that
operational costs are kept as low as possible and has succeeded by
keeping operational expenditure down, reflecting only a 1.7%
increase when compared to the prior period. However, due to the
competitive nature of the industry, staff costs increased by 9.4%
from R24.0 million to R26.4 million.
The resulting Profit Before Tax of the Group declined by 8.1% from
R14.4 million to R13.5 million. In the prior period, the Group
benefited from a low effective tax rate (22.5%) due to assessed
tax losses in some of its subsidiaries, whereas this year, the
Group’s effective tax rate has returned to normal (29.5%). Profit
After Tax for the period is R9.3 million compared to R11.2
million, being a 16.8% decrease.
Due to the Group’s acquisition of the remaining shares in the BMi
Sport Group last year, the Group benefited from lower profit
attributed to non-controlling interests. Earnings per share for
the Group in the period declined by 11% from 7.5 cents per share
to 6.7 cents per share.
The Group’s financial position remains healthy with a 20% increase
in cash resources, up from R74 million to R89 million. This was
achieved despite payment by the Group of an 8.5 cent dividend in
the period under review. Net Asset Value per share and Net
Tangible Asset Value per share remained steady at around 104 cents
and 70 cents respectively.
OPERATIONAL OVERVIEW
The general market conditions for the period under review were
challenging, with many of our traditional clients being very cost
conscious and resistant to deploying new campaigns, or minimising
interactive services. This was compounded by political uncertainty
and the pressure on consumers’ disposable income.
Active Data Exchange Services
Our collective portfolio of services incorporating SMS, USSD,
messaging services and specialised interactive services continued
to perform well, albeit under tough trading conditions.
MediaWorx, being the divisional brand and channel to market for
these services, continues to have a strategic and operational
advantage over its competitors as it offers a multitude of
integrated services ‘under one roof’, providing clients with a
‘one-stop-shop’.
In addition, the competitive advantage is further enhanced by the
fact that MediaWorx can provide bespoke services tailored to a
client’s needs, due to our in-house software development team.
Our route to market is to service the:
• consumer packaged goods (“CPG”) industry;
• general Fast-Moving Consumer Goods (“FMCG”) industry;
• digital agencies; and
• traditional agencies.
Our market for MediaWorx is operationally segmented into the
following three core solutions:
Media Infotainment (“MI”)
The primary service offering is “call to action” by the brand, for
example Idols SA, The Voice SA, and Big Brother Africa, whereby
the viewer is asked to vote or participate in a competition.
Whilst data is collected in this process, the service is primarily
a digital channel for consumer interaction.
Retail Promotions (“RP”)
The target for RP is the CPG and FMCG markets. Our route to this
market is either directly to the CPG or FMCG brands or via their
digital or traditional agency.
The service offering is primarily aimed at enabling consumers of
the CPG or FMCG brands to participate in a promotion or
competition. The technology deployed is SMS, USSD, WhatsApp, email
or call centre.
Clients are typically charged a set-up fee, monthly management fee
and/or a “per click” fee.
RP facilitates more active data collection to provide the agencies
or CPG/FMCG client with insights and rudimentary analytics. During
the period under review, we concurrently developed, hosted and
managed in excess of 80 campaigns.
Data Investment (“DI”)
The target market and route to market is very similar to RP,
however, there is a strategic and operational imperative to
collect meaningful data for research, analytics and predictive
behaviour.
Clients using these applications include: ABInBev (all brands),
DStv, Caxton, Pep, Ackermans and over 200 other brands on an ad
hoc or campaign basis.
To provide a sense of scale, a single campaign can generate over
30 million entries in a 30-day period with incentives of R50
million (in airtime) being paid out to entrants.
This illustrates the capacity and scalability of the platform.
MediaWorx Africa
Media infotainment, retail promotions and data investment services
are offered throughout Africa, with more CPG and FMCG brands
wanting to provide promotions or competitions in countries in
Africa. Whilst it is challenging working with a multitude of
mobile networks, relationships have been established with over 60
mobile networks in over 32 countries and we anticipate the
launching of more services into Africa over the next few years.
Document Management Solutions (“DMS”)
This incorporates Fax2Email, Email2Fax and the newly deployed
SecurDox.
During the period under review, Fax2Email declined by around 30%
year on year, whilst a decline of around 18% was budgeted.
Although subscriber numbers remained relatively constant year on
year (150,000), the average rate per user and file size
diminished.
Email2Fax, being the documents sent from a personal computer to a
fax machine, was relatively flat but still a small contributor to
DMS.
SecurDox has been developed as a “new generation” document
exchange platform, enabling a subscriber to securely send a
document to a third party using blockchain and encryption.
The marketing of SecurDox has been primarily via email pushes,
which hasn’t achieved the desired outcome. We are moving into the
next phase of deploying a team to provide “face to face” sales,
particularly at a corporate and SMME level. We expect that the
uptake of this secure document exchange platform will gain more
traction as corporates become more sensitised to the need to
protect data and the transmission thereof, especially in line with
the Protection of Personal Information Act.
Knowledge Creation and Management Incorporating mibubble
The natural outcome of collecting data is to achieve insights that
brands can act on. Our Knowledge Creation and Management
philosophy is to provide clients with a “single source of truth”.
This, in essence, means defining the data that needs to be
collected and being able to obtain a 3D vision of each customer of
our client on a granular level. The journey of data being
ultimately to collect accurate data with integrity.
The linear extension of collecting data from retail promotions and
data investment strategies is to provide a platform (Knowledge
Creation and Management) to provide insightful analytics and
ultimately to provide predictable behaviour.
Good progress was made in channelling data from RP and DI to the
Knowledge Creation and Management platform to achieve these
outcomes.
mibubble is a platform designed to enable consumers to self-curate
their personal data to achieve the concept of “data with
integrity”.
Most brands need a granular or 3D view of the customer and six
basic outcomes:
• Demographic – age, gender, income
• Geographic – where they live/roam
• Attention – what they concentrate on
• Consumption – what they buy
• Behavioural – what matters to them
• Intentional – what they are about to do
mibubble is modular in design and whilst components like analytics
are already in use, the main platform will be launched closer to
the full enactment of the Protection of Personal Information Act.
Channel Incentive Programmes (“CIP”)
CIP is an incentive or reward-based programme aimed at providing
sales representatives or sales agents with an incentive or reward
system when selling one of our client’s products. The CIP
programme comprises a web and app-based interface which enables
staff or agents of clients to register for incentive rewards and
have these rewards paid into a branded bank card. When an agent or
sales representative sells the client’s defined product, they
qualify for an incentive or monetary reward. The web or app
platform enables them to register the claim and when this has been
moderated and approved, the funds are transferred into the bank
card which enables the owner of the card to spend the funds at any
retailer accepting Mastercard.
The CIP platform has issued over 12,000 bank cards and has, during
the period under review, moderated over 310,000 claims exceeding
over R48.6 million in value.
CIP is a new product development in the Group aimed at
substituting the declining fax revenue. Good inroads have been
made in the South African market with the opportunity to replicate
this offering in Mauritius, Reunion and Madagascar.
Research and Insights Capabilities
Research and insights are offered to the market via: BMi Research
Proprietary Limited (“BMi Research”), BMi Sport Proprietary
Limited (“BMi Sport”), Livingfacts Proprietary Limited
(“Livingfacts”) and Cognition Insights (a division of Cognition).
BMi Research offers eight defined services:
• Advanced Analytics • In-store Observation Services
• Category Quantification • In-store Observation Services (Africa)
• Commissioned • Mystery Shopping
• Consumer • Print Ads
These collective services are aimed at delivering strategic and
tactical insights to assist clients in growing their businesses.
During the period under review, BMi Research performed well,
especially in the Consumer Services division.
In addition, good progress was made in the re-development of the
Print Ads platform which incorporates: publication and
subscription management, data collection and processing, client
management and depot delivery and an “on-line reporting portal”.
This will, on completion, provide a new dynamic to publication
management for the company.
BMi Sport provides services to a number of blue chip clients by
offering:
• Sports tracking and sponsorship evaluation
• Socio-economic and sporting impact valuation
• Strategic advertising evaluation
• PR & clippings (radio/TV/print/digital)
The period under review was challenging due to political
uncertainty and many large brands re-evaluating spend within
certain sporting codes or looking to re-align spend in different
disciplines.
BMi Sport is evaluating new sectors and codes such as soap operas
and eGaming, both of which have large followings.
BMi Sport is looking to be a leader in these new sectors and
codes. The new optimism in the political arena will slowly change
big brands’ conservative deployment of funds in sports and other
sectors and therefore we are confident that BMi Sport will see a
positive uptake.
Livingfacts develops customised market research solutions to
enable companies to develop intelligent strategies. Livingfacts’
expertise and solutions offerings are orientated around the
following:
• Quantitative
• Qualitative
• Community
• Web and digital
• Secondary data
Livingfacts has successfully differentiated itself from its
competitors by developing bespoke research. Although Livingfacts
was also exposed to constrained marketing budgets, the business
has successfully entrenched itself in high-end, strategic and
business to business market research, involving analysis of both
primary and secondary data and development of insightful outputs.
PROSPECTS
The trading conditions have, for the last 6 months, been difficult
due to constrained budgets of major brands and having to navigate
political uncertainty. The consumer has also been under pressure
with limited disposable income which has impacted on the volumes
of certain promotional campaigns.
The Group is focussing on the deployment and growth of our new
products like Channel Incentives which are progressively
substituting the anticipated decline in document management
services, in particular Fax2Email.
We believe that there is renewed optimism in the market with the
new political dispensation providing greater structural focus and
this should filter into the market over the next few months,
rejuvenating brand spending and promotional activity across all
the Group’s operating divisions.
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
Unaudited Unaudited Audited
as at as at as at
31 December 31 December 30 June
2017 2016 2017
Growth R’000 R’000 R’000
ASSETS
Non-current assets -2.0% 69 519 70 949 71 976
Property, plant and
equipment -4.6% 16 518 17 311 17 290
Intangible assets -6.8% 15 686 16 827 17 472
Goodwill 0.0% 30 332 30 332 30 332
Investment in
associates -23.3% 4 321 5 633 4 132
Unlisted investment 1 807 - 1 660
Deferred tax asset 855 846 1 090
Current assets -5.9% 128 334 126 390 130 548
Inventory -90.5% 26 275 26
Current tax
receivable -62.8% 191 514 194
Trade and other
receivables -42.3% 39 045 51 359 49 049
Cash and cash
equivalents 20.0% 89 072 74 242 81 279
Total assets 197 853 197 339 202 524
EQUITY AND
LIABILITIES
Capital and reserves -1.9% 144 471 147 247 146 849
Share capital 0.0% 137 137 137
Share premium 0.3% 55 973 55 806 55 973
Accumulated profits 6.1% 100 301 94 524 102 774
Change in ownership 110.1% (12 892) (6 135) (12 892)
Attributable to the
equity holders of the
parent -0.6% 143 519 144 332 145 992
Non-Controlling
interests 952 2 915 857
Non-current
liabilities -33.3% 7 715 11 562 7 839
Interest bearing
liabilities -99.3% 6 861 374
Other Financial
Liabilities -33.1% 4 699 7 022 4 699
Deferred tax
liability -18.2% 3 010 3 679 2 766
Current liabilities -5.8% 45 667 38 530 47 836
Trade and other
payables -11.9% 39 707 34 412 38 857
Provisions 51.0% 2 500 1 656 5 912
Tax payable 2 425 - 1 460
Unclaimed dividends 13.4% 169 149 169
Current portion of
non-current
liabilities -62.6% 866 2 313 1 438
Total equity and
liabilities 197 853 197 339 202 524
Net asset value per
share (cents) -0.63% 104.29 104.95 106.09
Net tangible asset
value per share
(cents) 0.27% 70.85 70.66 71.35
Number of shares in
issue 0.00% 137 615 798 137 527 659 137 615 798
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Unaudited Unaudited
six six
months months Audited
ended ended 12 months
31 31 ended
December December 30 June
Growth 2017 2016 2017
Restated R’000 R’000 R’000
Gross Revenue 65.5% 200 367 121 050 279 699
Less Agency Revenue (117 610) (48 230) (129 193)
Revenue 13.6% 82 757 72 820 150 506
Cost of Sales 36.5% (33 501) (24 550) (50 712)
Gross profit 49 256 48 270 99 794
Other operating income 144.2% 955 391 479
Staff costs 9.4% (26 389) (24 121) (52 168)
Depreciation and
amortisation expense 20.2% (3 828) (3 186) (6 982)
Other operating expenses 1.7% (9 917) (9 747) (19 041)
Finance costs -51.9% (101) (210) (448)
Income from associates -56.1% 189 431 388
Investment income 18.9% 3 089 2 599 5 617
Profit before tax -8.1% 13 254 14 427 27 639
Income tax expense 22.1% (3 935) (3 223) (8 114)
Profit for the period -16.8% 9 319 11 204 19 525
Other comprehensive income
Total comprehensive income
for the year -16.8% 9 319 11 204 19 525
Profit attributable to:
Non-controlling interest 94 843 913
Owners of the parent -11.0% 9 225 10 361 18 612
Weighted average number of 137 615 137 527 137 615
shares in issue 0.0% 798 659 798
Basic earnings per share
(cents) -11.0% 6.70 7.53 13.52
Headline earnings per
share (cents) -11.0% 6.70 7.53 13.52
Diluted earnings per
share(cents) -11.0% 6.70 7.53 13.52
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
Total
Share Share Change in Share
Capital Premium ownership Capital
R’000 R’000 R’000 R’000
Audited balance at
1 July 2016 137 55 806 (6 135) 49 808
Changes in equity
Total comprehensive
income for the period - - - -
Non-controlling
interest as result of
acquisition - - - -
Dividends - - - -
Total changes - - - -
Audited balance at
1 January 2017 137 55 806 (6 135) 49 808
Changes in equity
Total comprehensive
income for the period - - - -
Sale of own/treasury
shares - 167 - 167
Change in ownership
interest in subsidiary - - (6 757) (6 757)
Dividends - - - -
Total changes - 167 (6 757) (6 590)
Audited balance at
1 July 2017 137 55 973 (12 892) 43 218
Changes in equity
Total comprehensive
income for the period - - - -
Dividends - - - -
Total changes - - - -
Unaudited balance at
31 December 2017 137 55 973 (12 892) 43 218
Attribu- Non-
table to Control-
Retained Equity ling Total
Income Holders Interest Equity
R’000 R’000 R’000 R’000
Audited balance at
1 July 2016 95 170 144 978 1 928 146 906
Changes in equity
Total comprehensive
income for the period 10 361 10 361 843 11 204
Non-controlling
interest as result of
acquisition - 144 144
Dividends (11 007) (11 007) - (11 007)
Total changes (646) (646) 987 341
Audited balance at
1 January 2017 94 524 144 332 2 915 147 247
Changes in equity
Total comprehensive
income for the period 8 250 8 250 88 8 338
Sale of own/treasury
shares - 167 - 167
Change in ownership
interest in subsidiary - (6 757) (1 954) (8 711)
Dividends - - (192) (192)
Total changes 8 250 1 660 (2 058) (398)
Audited balance at
1 July 2017 102 774 145 992 857 146 849
Changes in equity
Total comprehensive
income for the period 9 225 9 225 95 9 320
Dividends (11 698) (11 698) - (11 698)
Total changes (2 473) (2 473) 95 (2 378)
Unaudited balance at
31 December 2017 100 301 143 519 952 144 471
CONSOLIDATED STATEMENTS OF CASH FLOWS
Unaudited Unaudited Audited
six months six months 12 months
ended ended ended
31 December 31 December 30 June
2017 2016 2017
R’000 R’000 R’000
Cash flow from operating
activities 21 848 12 399 26 866
Net cash generated from
operations 21 347 13 672 29 618
Finance costs (101) (210) (448)
Investment income 3 089 2 599 5 617
Normal tax paid (2 487) (3 662) (7 921)
Cash flow from investing
activities (1 418) (5 377) (12 319)
Purchase of property,
plant and equipment (723) (100) (2 324)
Proceeds on disposal of
property, plant and
equipment - - 161
Purchase of intangible
asset (548) (1 385) (2 202)
Sale of other intangible
assets - - 4
Acquisition of additional
interest in subsidiary - - (1 701)
Investment in Associate - (1 412) -
Purchase of unlisted
investment (147) - (1 660)
Expenditure on product
development - (2 480) (4 597)
Cash flow from financing
activities (940) (1 295) (1 608)
Dividends paid (11 697) (11 007) (11 182)
Net increase in cash and
cash equivalents 7 793 (5 280) 1 757
Cash and cash equivalents
at beginning of the period 81 279 79 522 79 522
Cash and cash equivalents
at end of the period 89 072 74 242 81 279
BASIS OF PREPARATION
The unaudited condensed consolidated interim results for the six
months ended 31 December 2017 have been prepared in accordance
with International Financial Reporting Standards (“IFRS”) and are
presented in terms of the disclosure requirements set out in
International Accounting Standards (“IAS”) 34, as well as the
SAICA Financial Reporting Guides as issued by the Accounting
Practices Committee and the Financial Reporting Pronouncements as
issued by the Financial Reporting Standards Council, the Listings
Requirements of the JSE Limited and the requirements of the
Companies Act 2008 (Act 71 of 2008), as amended. The unaudited
condensed consolidated interim financial information should be
read in conjunction with the audited annual financial statements
for the year ended 30 June 2017.
Accounting policies and computations are consistently applied as
in the annual financial statements for the year ended 30 June
2017.
During the interim period, the Group adopted those standards and
interpretations in issue and effective for the interim period. The
adopting of these new and amended standards and interpretations
has not had a significant impact on the Group’s adopted accounting
policies.
These financial statements have been compiled under the
supervision of the Financial Director, Pieter Scholtz.
The unaudited condensed consolidated interim results for the six
months ended 31 December 2017 have not been reviewed by the
Group’s auditor.
CASH GENERATED (USED IN) OPERATIONS
Unaudited Unaudited Audited
six months six months 12 months
ended ended ended
31 December 31 December 30 June
2017 2016 2017
R’000 R’000 R’000
A RECONCILIATION OF PROFIT
BEFORE TAXATION TO CASH
GENERATED FROM OPERATIONS
Profit before taxation 13 254 14 427 27 639
Adjustments for: (2 761) 25 1 725
Depreciation 3 828 3 186 6 982
Provisions (3 412) (341) -
Finance costs 101 210 448
(Profit) / Loss on
disposal of property,
plant and equipment - - (10)
Contingent consideration - - 310
Income in associates (189) (431) (388)
Investment income (3 089) (2 599) (5 617)
Operating profit before
working capital changes
Working capital changes 10 854 (780) 254
Decrease in inventory - 25 274
Decrease / (increase) in
trade and other
receivables 10 004 (10 858) (8 549)
(Decrease) / Increase in
trade and other payables 850 10 053 8 529
Cash generated from
operations 21 347 13 672 29 618
SEGMENTAL REPORTING
Operating segments are reported in a manner consistent with the
internal reporting provided to the chief operating decision makers
(the “CODM”). The CODM have been identified as the executive
committee members who make strategic decisions. The CODM have
organised the operations of the Company based on its brands and
this has resulted in the creation of the following reportable
segments:
• Active Data Exchange Services
• Knowledge Creation and Management
Unaudited Unaudited Audited
six months six months 12 months
ended ended ended
31 December 31 December 30 June
2017 2016 2017
R’000 R’000 R’000
Gross Revenue
Active Data Exchange
Services 106 411 38 394 122 715
Knowledge Creation and
Management 93 956 82 656 156 984
200 367 121 050 279 699
Revenue Generated as
agency service
Active Data Exchange
Services (74 835) (4 776) (55 489)
Knowledge Creation and
Management (42 775) (43 454) (73 704)
(117 610) (48 230) (129 193)
Revenue
Active Data Exchange
Services 31 576 33 618 67 226
Knowledge Creation and
Management 51 181 39 202 83 280
82 757 72 820 150 506
Cost of sales
Active Data Exchange
Services (11 175) (12 618) (23 380)
Knowledge Creation and
Management (22 326) (11 932) (27 332)
(33 501) (24 550) (50 712)
Gross profit
Active Data Exchange
Services 20 401 21 000 43 846
Knowledge Creation and
Management 28 855 27 270 55 948
49 256 48 270 99 794
The accounting policies applied to the operating segments are the
same as those described in the basis of preparation paragraph
above. Active Data Exchange Services are provided within South
Africa as well as in 36 African countries (“Africa sales”). Within
the period under review, 1.8% (2016: 5.5%) of the Company’s
revenue can be attributed to Africa sales. The Company allocates
revenue to each country based on the relevant domicile of the
client. All of the Company’s assets are located in South Africa.
Active Data Exchange Services currently generates 27.2% (2016:
62.5%) of its revenue through three large network service
providers. The reconciliation of the Gross Profit to Profit before
Taxation is provided in the Statement of Comprehensive Income. The
CODM reviews these income and expense items on a Group basis and
not per individual segment. All assets and liabilities are
reviewed on a Group basis by the CODM.
RECONCILIATION BETWEEN EARNINGS AND HEADLINE EARNINGS
Unaudited Unaudited Audited
six months six months 12 months
ended ended ended
31 December 31 December 30 June
2017 2016 2017
R’000 R’000 R’000
The calculation of
earnings per share is
based on profits of R9.2
million attributable to
equity holders of the
parent (2016: R10.3
million) and a weighted
average of 137 615 798
(2016: 137 615 798)
ordinary shares in issue
during the period. 6.70 Cents 7.53 Cents 13.52 Cents
The calculation of
headline earnings per
share is based on profits
of R9.2 million with no
adjustments in the current
period (2016 adjusted:
R10.3 million) and a
weighted average of 137
615 798 (2016:137 615 798)
ordinary shares in issue
during the period. 6.70 Cents 7.53 Cents 13.52 Cents
Reconciliation between
earnings and headline
earnings
Profit attributable to
equity holders of parent 9 225 10 361 18 612
After Tax effect on profit
on disposal of property,
plant and equipment: - - -
Headline earnings 9 225 10 361 18 612
The calculation of diluted
earnings per share is
based on profits of R9.2
million attributable to
equity holders of the
parent (2016: R10.3
million) and a weighted
average of 137 615 798
(2017: 137 615 798)
ordinary shares in issue
during the period. 6.70 Cents 7.53 Cents 13.52 Cents
There were no instruments issued during the current period that
have a dilutive impact.
RECLASSIFICATION OF COMPARITIVES
During the past two years the Group started offering services that
are classified as agency revenue in terms of IAS18 and as such the
Group reclassified revenue generated through these services
separately in the Statement of Profit and Loss and Other
Comprehensive Income for enhanced disclosure purposes. The
reclassification has not resulted in any changes to the reported
Gross Profit for the previous year.
DIVIDEND POLICY
The Group has traditionally only paid dividends annually, however
the board has for the first time considered and declared an
interim dividend.
INTERIM DIVIDEND DECLARATION
Notice is hereby given that the directors have declared a gross
interim dividend of 4 cents per share for the six months ended 31
December 2017, which is adjusted for withholding tax. The interim
dividend has not been included as a liability in these audited
financial statements as it was declared subsequent to the period
end. The interim dividend for December 2017 is payable to all
shareholders on the Register of Members on Friday, 6 April 2018.
In terms of the dividends tax, effective 1 April 2012, the
following additional information is disclosed:
- the local dividend tax rate is 20%;
- the dividends will be payable from income reserves;
- the dividend tax to be withheld by the Company amounts to 0,8
cents per share;
- therefore the net dividend payable to shareholders who are not
exempt from dividends tax amounts to 3.2 cents per share, while
the gross dividend payable to shareholders who are exempt from
dividend tax amounts to 4 cents per share;
- the issued share capital of the Company at the declaration date
comprises 137 615 798 ordinary shares; and
- the Group’s income tax reference number is 9087/450/84/8.
Declaration date: Friday, 9 March 2018
Last day to trade cum dividend Tuesday, 3 April 2018
Date trading commences ex the dividend Wednesday, 4 April 2018
Record date Friday, 6 April 2018
Date of payment Monday, 9 April 2018
Share certificates may not be dematerialised or rematerialised
between Wednesday, 4 April 2018 and Friday, 6 April 2018, both
dates inclusive.
DIRECTORATE
There were no changes to the board during the interim period.
SUBSEQUENT EVENTS
The board is not aware of any material events that have occurred
between the end of the interim period and the date of this report.
APPRECIATION
We would like to thank our customers, partners, dealers, staff and
other service providers for their continued support, loyalty and
dedication.
For and on behalf of the board
Ashvin Mancha Mark Smith Pieter Scholtz
Chairman Chief Executive Officer Financial Director
Johannesburg
9 March 2018
Directors:
Ashvin Mancha#* - Chairman,
Mark Smith – Chief Executive Officer, Pieter Scholtz - Financial
Director, Gaurang Mooney* (Botswana), Graham Groenewaldt – Sales
Director, Paul Jenkins#*, Roger Pitt#*, Marc du Plessis#, Piet
Greyling#
# Non-executive
* Independent
Website: www.cgn.co.za
Company Secretary:
Stefan Kleynhans
Sponsor:
Merchantec Capital
Transfer Secretaries:
Computershare Investor Services Proprietary Limited
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