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Condensed Audited Consolidated Results for the Financial Year ended 28 February 2018
MASTER PLASTICS LIMITED
Incorporated in the Republic of South Africa
(Registration number 2016/323930/06)
Share code: MAP
ISIN: ZAE000242921
("Master Plastics" or "the Company" or "the Group")
Condensed audited consolidated results for the financial year ended 28 February 2018
KEY HIGHLIGHTS
* Earnings per share ("EPS") and Headline Earnings per share ("HEPS") of 29.5 cents - 24.5% higher than the
Pre-Listing Statement Forecast of 23.7 cents.
* Return on Average Capital Employed ("ROCE") of 20.2%.
* Gearing at 0.6%.
* Net Tangible Asset Value per share of 157.0 cents.
COMMENTARY
GROUP OVERVIEW
Master Plastics is involved in the manufacture and provision of specific products and solutions to customers
operating in the agricultural, food, produce, dairy and general industrial markets. Its offering extends beyond
traditional plastic products, also being a participant in the supply and design of undercover farming nets and
structures and geotextile fibres for concrete reinforce-ment. The Group will continue to explore opportunities
to better service its chosen end markets and provide a broader range of its customers’ requirements.
Having invested a significant amount of time and financial resources in the first half of the financial year -
following its unbundling from Astrapak Limited - establishing and enhancing the operational platform in order
to support the Group’s strategic plans, the Group was able to translate this into a strong operational and
financial performance in the second half of the year, resulting in a full year performance well ahead of the
forecast for the full financial year as presented in Annexure 5 of the Pre-Listing Statement published on
5 May 2017 ("PLS"). The operations have remained focused on the execution of the strategies set and these have
remained relevant and have proven to be key in ensuring that the businesses remain resilient and perform ahead
of the plan, despite challenging market conditions. All three of the underlying operations, being Barrier Film
Converters Proprietary Limited, Peninsula Packaging and Plusnet-Geotex (the latter two both divisions of Master
Plastics) are profitable and continue to enjoy a preferred supplier status in many of their chosen market
segments.
CORPORATE OVERVIEW
The following events of a corporate nature occurred during the financial year end 28 February 2018:
* Declared a R75.0 million dividend to parent prior to unbundling.
* Unbundled from parent group and listed on the AltX Exchange of the JSE on 24 May 2017.
* Repurchased a total of 17.6 million shares at a total consideration of R4.1 million.
* Management acquired > 10% equity interest in the open market.
* A new Chairman and a new Independent Non-Executive Director appointed to the Board of Directors of Master
Plastics ("the Board") on 13 October 2017.
* Grant Thornton appointed as external auditors effective 19 December 2017.
* Approved a facility and capacity expansion program for the Plusnet-Geotex operation to be affected during
the first half of the 2019 financial year.
PRE-LISTING STATEMENT FORECAST FOR 2018
The Group significantly outperformed the PLS forecast, reporting a headline income of R36.4 million and HEPS of
29.5 cents compared to the PLS forecast headline income of R28.7 million and HEPS of 23.7 cents.
Trading conditions over the period were much more difficult than originally anticipated and specifically issues
with polymers – both on pricing and availability – and generally a weaker economy provided the Group and the
industry with some significant challenges, especially over the second half of the year. The diligent focus on
execution of the Group strategy however enabled Master Plastics to advance and deliver results ahead of the
PLS forecast in all its key performance indicators. The PLS is available for download on the website of the
company, details of which also appear in this announcement.
FINANCIAL RESULTS
As the Group was only established in the last two months of the 2017 financial year, the comparatives presented and
reported for the financial period ended 28 February 2017 are not comparable. The PLS forecast provided for the
financial year ending 28 February 2018 is directly comparable to the actual result reported.
Revenue and cost management remains an ongoing challenge in difficult economic conditions. The Group has however
continued to benefit from emerging trends in core defensive and niche market segments which, together with a focus
on efficiencies and waste management, has allowed the Group to report revenue of R504.5 million and to improve its
level of profitability as is reflected in both the normalised earnings before interest, taxation, depreciation and
amortisation ("EBITDA") and normalised profit before interest and taxation ("PBIT") margins of the Group, with
margins of 12.9% and 10.0% respectively having been reported. Both EBITDA and EBIT margins achieved are well ahead
of the PLS forecast of 10.9% and 8.0% respectively. The Group has reported an EBITDA of R65.3 million against the
PLS forecast of R54.8 million and a PBIT of R50.4 million, being 24.4% ahead of the PLS forecast of R40.5 million.
The Group has reported basic and headline earnings of R36.4 million or 29.5 cents per share, this given a weighted
average number of shares in issue of 123 399 075 for the year. During the year the Group repurchased a total number
of 17 596 018 shares, which included 14 096 018 shares repurchased from the Astrapak Limited Linked Unit Trust Scheme
and Astrapak Gauteng Proprietary Limited at R0.01 per share, with the balance of 3 500 000 shares being acquired in
the open market. At the date of this announcement, all the repurchased shares have been delisted. This has resulted
in an overall reduction of the number of issued shares in the Company from 135 131 250 at the beginning of the year
to 117 535 232 at the reporting date.
Notwithstanding the payment of a R75.0 million dividend on 12 May 2017 to its then parent prior to its unbundling,
R4.1 million spent on share repurchases and capital expenditure of R26.3 million during the year, the Group remained
only marginally geared over the year and at the end of the reporting period and accordingly a net interest expense of
only R0.3 million has been reported, with gearing at 0.6% at 28 February 2018. The Group reported an effective tax
rate of 25.5% for the year, the difference to the statutory tax rate of 28% being mainly due to certain permanent
differences associated with government incentives and changes to tax balances acquired. The Group has a total of
R34.4 million in tax losses available for utilisation in future periods and these should be fully utilised over time
based on forecasted levels of profitability.
The Group generated R42.8 million in cash from operations after working capital changes that reflects the adverse
financial and cash impact of polymer pricing and strategies adopted to compensate for continuing polymer supply
issues in the market. Capital expenditure of R26.3 million was incurred during the period, of which an amount of
R13.2 million was financed through existing asset-based finance facilities. A further R33.3 million in capital
expenditure has been committed, but not yet spent as at the reporting date, to support growth in the Groups’ chosen
markets and the customer base. The investment philosophy of the Group remains to invest in assets, businesses and
markets with the potential to deliver superior earnings and sustainable long-term growth.
Return on average capital employed achieved was 20.2%, and net tangible asset value per share at the reporting dates
was R1.57.
PROSPECTS
The Group will continue to focus on the execution of its stated business strategy and look to invest further in
opportunities to enhance efficiency and in support of organic growth being led by the customer base.
Whilst the local economy is expected to recover moderately over the next year or two, growth will remain subdued amid
the uncertainty around land expropriation policies, critical water shortages and an everescalating cost of living for
consumers. As the Group is a supplier of products and solutions to the food,produce and agricultural markets in general
these factors are expected to continue to impact the business.
The Board however remains confident that the exposure to more defensive market segments and a continued focus on
operational performance and organic growth will continue to support and underwrite strategic efforts through the
business cycle.
ACCREDITATIONS AND CERTIFICATIONS
The Group remains committed to transformation and is confident of at least retaining its Level 4 (Empowered Supplier)
accreditation obtained in accordance with the Codes of Good Practice issued in terms of section 91(1) of the Broad-
Based Black Economic Empowerment Act 53 of 2003 (gazetted 11 October 2013). The Group is currently in the process of
completing its reaccreditation process and will announce its new rating during the month of May 2018.
Given the markets served by the Group and the increased focus after recent events relating to food contamination in
the country, the appropriate accreditations and adherence thereto remains a significant focus within the Group and
its customer base. The Group remains fully accredited and has continued to invest time and resources into a culture
of health and safety. This means that its existing and any future customer base can continue to source packaging
from the Group with the necessary confidence. The businesses operating in the food sector are either British Retail
Consortium Global Standard for Food Safety (BRC) or Food Safety System Certification 22000 (FSSC 22000) accredited,
depending on what has been prescribed by its respective customer bases.
CHANGES TO THE BOARD
Appointments:
The following directors were appointed to the Board on 13 April 2017 in preparation for its unbundling:
• Ms P Langeni as Independent Non-Executive Chairman;
• Ms S Ratlhagane as Executive Director, Chief Financial Officer and Company Secretary;
• Mr T Mokgatlha as Independent Non-Executive Director;
• Mr G Steffens as Independent Non-Executive Director;
• Mr C McDougall as Independent Non-Executive Director; and
• Mr P Botha as Non-Executive Director.
Mr P Rowse was appointed as an Alternate Director to Mr P Botha on 11 September 2017.
Mr T Mokgatlha, already an Independent Non-Executive Director of the Company, was appointed as Independent Non-Executive
Chairman on 13 October 2017 following the resignation of Ms P Langeni to pursue other business interests.
Mrs S Masinga was appointed as an Independent Non-Executive Director on 13 October 2017.
Resignations:
• Ms P Langeni resigned as Chairperson and Independent Non-Executive Director on 2 October 2017.
SUBSEQUENT EVENTS
The Board is not aware of any other facts or circumstances that is material to the appreciation of this report that may
have occurred between 28 February 2018 and the date of this report.
DIVIDEND DECLARATIONS
On 12 May 2017, Master Plastics declared a dividend of R75.0 million to Astrapak Limited, its sole shareholder at the
date of the dividend declaration. As stated in the PLS the Group will initially focus on reinvesting for growth and
accordingly no further dividend will be declared and paid in respect of the financial year ended 28 February 2018.
APPROVAL AND PREPARATION
The Condensed Audited Consolidated Financial Statements presented herein have been prepared under the direction and
supervision of the Chief Financial Officer, Salome Ratlhagane CA (SA) and present a summary of the complete set of
consolidated financial statements of the Group as approved by the Board on 30 April 2018. These Condensed Audited
Consolidated Financial Statements are extracted from audited information but are not themselves audited. The Board
takes full responsibility and confirm that the Condensed Audited Consolidated Financial Statements presented herein
has been correctly extracted from the audited consolidated financial statements of the Group.
The auditors, Grant Thornton, have issued an unmodified audit opinion on the complete consolidated financial statements
of the Group and the separate financial statements of the Company. A copy of the report and the Group consolidated, and
separate Company financial statements are available for inspection at the Company’s registered office.
DOCUMENTS
This announcement and the PLS are both available on the Master Plastics’ website: www.masterplasticsgroup.com, or from
the registered office of the Company, or its Corporate and Designated Adviser Merchantec Capital, Monday to Friday
08:30 to 16:30.
ACKNOWLEDGEMENT AND APPRECIATION
The Board would like to express its appreciation to Ms Langeni for her services to the Group and to all stakeholders
for their continued commitment, efforts and support.
On behalf of the Board
Manley Diedloff Salome Ratlhagane
Chief Executive Officer Chief Financial Officer
Johannesburg
2 May 2018
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Audited Audited
financial financial
year ended period ended
28 February 28 February
(R’000) Notes 2018 2017
Revenue 10 504 479 9 347
Cost of sales (386 249) (7 382)
Gross profit 118 230 1 965
Administrative and other expenses (39 293) (2 453)
Distribution and selling costs (29 834) (421)
Profit/(loss) from operations 11 49 103 (909)
Investment income 1 211 103
Finance cost (1 499) (2)
Profit/(loss) before taxation 48 815 (808)
Taxation (expense)/benefit (12 460) 226
Profit/(loss) for the period 36 355 (582)
Other comprehensive profit/(loss) - -
Total comprehensive profit/(loss) for the period 36 355 (582)
Basic earnings/(loss) per ordinary share (cents) 13 29,46 (13,9)
RECONCILIATION OF HEADLINE EARNINGS
Audited Audited
financial financial
year ended period ended
28 February 28 February
(R’000) Notes 2018 2017
Profit/(loss) attributable to
ordinary shareholders 36 355 (582)
Headline earnings adjustment 55 -
Profit on sale of plant and equipment (300) -
Impairment of plant and equipment 377
Tax effect of adjustments (22) -
Headline earnings/(loss) attributable
to ordinary shareholders 36 410 (582)
Headline earnings/(loss) per
ordinary share (cents) 13 29,51 (13,9)
CONDENSED CONSOOLIDATED STATEMENT OF FINANCIAL POSITION
Audited Audited
financial financial
year ended period ended
28 February 28 February
(R’000) Notes 2018 2017
Assets
Non-current assets 153 525 154 407
Property, plant and equipment 4 148 216 145 759
Deferred taxation assets 5 309 8 648
Current assets 174 407 211 656
Inventories 59 962 46 260
Trade and other receivables 4 97 917 71 214
Cash and cash equivalents 7 15 985 94 182
Taxation asset 543 -
Assets classified as held-for-sale 5 8 985 214
Total assets 336 917 366 277
Equity and liabilities
Total equity 184 512 227 238
Equity attributable to ordinary
shareholders of the parent 9 184 512 227 238
Non-current liabilities 44 057 43 759
Long-term interest-bearing debt 6 9 117 5 974
Long-term financial liability 8 15 528 15 528
Deferred taxation liabilities 19 412 22 257
Current liabilities 108 348 95 280
Trade and other payables 4 100 289 87 393
Short-term interest-bearing debt 6 8 059 6 843
Taxation payable - 1 044
Total equity and liabilities 336 917 366 277
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Audited Audited
financial financial
year ended period ended
28 February 28 February
(R’000) Notes 2018 2017
Opening balance 227 238 -
Comprising:
Ordinary share capital 235 404 -
Common control reserve on acquisition 9 (7 584) -
of equity interests in subsidiaries
Retained loss (582) -
Movements: (42 726) 227 238
Ordinary share capital issued - 235 404
Ordinary share capital repurchased (4 081) -
Common control reserve on acquisition - (7 584)
of equity interests in subsidiaries
Profit/(loss) for the period 36 355 (582)
Dividend paid to parent prior to unbundling (75 000) -
Closing balance 184 512 227 238
Comprising:
Ordinary share capital 231 323 235 404
Common control reserve on acquisition 9 (7 584) (7 584)
of equity interests in subsidiaries
Retained loss (39 227) (582)
Total equity 184 512 227 238
CONDENSED CONSOLIDATED STATEMENT OF CASHFLOWS
Audited Audited
financial financial
year ended period ended
28 February 28 February
(R’000) Note 2018 2017
Cash generated from/(utilised by) operations before
working capital changes 66 041 (664)
(Increase)/decrease in working capital (23 253) 2 830
Net interest and taxation paid (13 841) (663)
Dividend paid to parent prior to unbundling (75 000) -
Net cash (outflow)/inflow from operating activities (46 053) 1 503
Additions to property, plant and equipment (13 239) (1 118)
Acquisition of business - cash balances acquired - 93 797
Payment of contingent purchase consideration (6 224) -
Proceeds on disposal of plant and equipment 300 -
Net cash (outflow)/inflow from investing activities (19 163) 92 679
Repayment of interest bearing debt (8 900) -
Repurchase of ordinary shares (4 081) -
Net cash inflow from financing activities (12 981) -
Net (decrease)/increase in cash and cash equivalents (78 197) 94 182
Net cash and cash equivalents at beginning of the period 94 182 -
Net cash and cash equivalents at end of the period 7 15 985 94 182
SEGMENTAL ANALYSIS
A segmentation of the financial information has been reported for the year ended 28 February 2018.
As the financial information reported on for the period ended 28 February 2017 relates only to 1 (one) month’s trading
and is mainly attributable to the business of Barrier Film Converters Proprietary Limited and due to the timing of the
transactions of which Master Plastics acquired the underlying operations, a segmentation of the financial information
reported would not be meaningful for the period ended 28 February 2017.
A segmentation of the financial information for the year ended 28 February 2018 is presented below:
(R’000) Food & Produce Construction Industrial Total Group
Revenue for segment 346 391 92 929 65 158 504 479
Revenue for external customers 346 391 92 929 65 158 504 479
Profit from operations 36 540 7 883 4 680 49 103
Profit before taxation 36 563 7 561 4 691 48 815
Total assets 233 690 40 233 62 994 336 917
Total liabilities 118 415 19 946 14 044 152 405
Capex 20 364 5 261 872 26 497
Depreciation 10 353 1 377 3 163 14 893
SUPPLEMENTARY INFORMATION
Audited Audited
financial financial
year ended period ended
28 February 28 February
2018 2017
Number of ordinary shares in issue - 117 535 135 131
net of repurchases (‘000)
Weighted average number of ordinary shares 123 399 135 131
in issue over period (‘000)
Net asset value per share (cents) 157 168
Net tangible asset value per share (cents) 157 168
Closing share price (cents) 165 -
Market capitalisation (R million) 194 -
Net interest-bearing debt/(cash) as 0,6% (35,8%)
percentage of equity (%)
Net interest-bearing (debt)/ cash (1 191) 81 365
Long-term interest-bearing debt (9 117) (5 974)
Short-term interest-bearing debt (8 059) (6 843)
Cash and cash equivalents 15 985 94 182
Return on average capital employed (ROCE) 20,2% (0,7%)
Normalised Earnings/(loss) before interest, taxation, 65 291 (664)
depreciation and amortisation ("Normalised EBITDA")**
Profit/(loss) from operations 49 103 (909)
Depreciation 14 893 245
Earnings/(loss) before interest, taxation, depreciation 63 996 (664)
and amortisation ("EBITDA")
Profit on sale of plant and equipment (300) -
Impairment of plant and equipment 377 -
IFRS 2 Share Appreciation Rights Expense 1 218 -
Normalised EBITDA margin 12,9% (7,1%)
Normalised Profit/(loss) from operations** 50 398 (909)
Normalised Profit/(loss) from operations margin 10,0% (9,7%)
** Normalised EBITDA and Normalised Profit/(loss) from Operations are determined by adjusting the reported EBITDA
and Profit from operations numbers for those items deemed to be non-recurring, capital in nature or in view of
the Company distorts the reporting of the sustainable profitability of the Group. The adjustables used in
determining the Normalised Profit/(loss) from operations are the same as those used for purposes of determining
the Normalised EBITDA.
NOTES TO THE CONDENSED AUDITED CONSOLIDATED FINANCIAL STATEMENTS
1. BASIS OF CONSOLIDATION
The condensed audited consolidated financial statements are presented 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, Financial Reporting
Pronouncements as issued by the Financial Reporting Standards Council, as well as the requirements of the
Companies Act of South Africa and the JSE Limited’s Listings Requirements. The condensed audited consolidated
financial statements also contain, at a minimum the information required by International Accounting Standard 34
Interim Financial Reporting. The accounting policies used in the preparation of these results are in accordance
with IFRS and are consistent in all material respects with those used in the audited consolidated and separate
financial statements for the period ended 28 February 2017. Standards and interpretations that were effective
were adopted. These did not have a significant impact on the financial statements.
2. COMPARATIVE FIGURES
The condensed audited consolidated financial statements for the financial period ended 28 February 2017 has
been presented. The comparative period, due to the timing of the establishment of the Group and its unbundling,
covers only one month’s trading by some of the Group’s entities and the result are therefore not directly
comparable.
3. ESTABLISHMENT OF THE MASTER PLASTICS GROUP
In line with Astrapak Limited’s resolved strategy aimed at becoming a focused rigid packaging business and
pursuant to an offer from RPC plc, the Astrapak Board resolved to unbundle Master Plastics to its ordinary
shareholders by way of a distribution in specie in terms of section 46(1)(a)(ii) of the Companies Act and
section 46 of the Income Tax Act. In order to give effect to this and prior to the implementation of the
unbundling, Master Plastics was incorporated and a number of companies and/or assets were disposed of to
Master Plastics through a series of asset-for-share-transactions at the end of January 2017 and February 2017,
which resulted in the establishment of the Master Plastics Group. The Master Plastics Group has accordingly only
been trading for a period of 1 month during the comparative period ending 28 February 2017. The Group was
unbundled and listed on the AltX exchange of the JSE on 24 May 2017.
The asset-for-share-transactions and a breakdown of the assets and liabilities so acquired by Master Plastics
is presented below and are accounted for as a common control transaction in terms of IFRS.
Rand Value of No. of no par value
shares issued shares issued
Shares and share claims acquired
31 January 2017(100% voting interest)
Barrier Film Convertors Proprietary Limited 79 650 36 446
Micawber 430 Proprietary Limited 6 912 8 954
Micawber 451 Proprietary Limited 6 511 6 746
93 073 52 146
Businesses acquired as at 28 February 2017:
Peninsula Packaging 75 279 22 277
Plusnet-Geotex 25 431 22 277
Property letting enterprises 24 806 16 154
Astrapak Investments 16 815 22 277
142 331 82 985
Total purchase consideration and number of shares issued 235 404 135 131
The following assets and liabilities were acquired by Master Plastics Group as a result of the aforementioned
transactions:
R’000
Properties 22 238
Plant and equipment 122 862
Deferred tax assets 7 938
Inventory 46 133
Trade and other debtors 73 851
Cash and cash equivalent 93 797
Long-term interest bearing debt (5 974)
Long term financial liability (15 528)
Deferred tax liabilities (23 581)
Trade and other creditors (87 073)
Short-term interest bearing debt (643)
Net asset value acquired 227 820
Common Control reserve 7 584
Share issue 235 404
Cash acquired 93 797
Audited Audited
financial financial
year ended period ended
28 February 28 February
2018 2017
(R’000)
4. Property, plant and equipment
Opening net carrying value 145 759 -
Additions 26 252 1 118
Additions- restructuring (per note 3) - 145 100
Assets classified as held-for-sale -
properties excess to requirements (8 739) (214)
Impairment of item of machinery due
to redundancy (163) -
Depreciation (14 893) (245)
Closing net carrying value 148 216 145 759
Capital expenditure for the period 26 252 1 118
Capital commitments
- contracted not spent 33 316 5 520
- authorised not contracted - -
A total of R16.12 million of the contracted but not yet spent total above has been paid by the finance provider in
the form of progress payments made to suppliers of equipment. The Group has accordingly recognised both an asset and
a corresponding liability as part of Trade and other receivables and Trade and other payables for this amount.
5. Assets-held-for-sale
The assets held for sale relate to assets that are being disposed of:
Opening balance at the beginning of the period 214 -
Assets classified as held-for-sale -excess
production equipment - 214
Property* 246
Property transferred from property, plant
and equipment 8 739
Assets previously held-for-sale now impaired (214) -
Assets-held-for-sale at the end of the period 8 985 214
*Property additions capitalised to assets held-for-sale
Assets-held for-sale at end of the period represent land and buildings which are deemed excess to requirements by
the Group. Management is committed to a plan to sell the asset and has actively marketed the property for sale at
a price that is reasonable in relation to the property’s current fair value. An independent broker has been
appointed to market the properties on the Group’s behalf.
6. Long-term and short-term interest bearing debt
Long-term and short-term interest bearing debt represent asset based finance liabilities which are measured at
amortised cost using the effective interest rate method.
7. Cash and cash equivalents
Bank balances 15 985 94 182
8. Long-term financial liability
Long-term financial liability 15 528 15 528
The long-term financial liability, reflected at fair value, represents the estimated final payment that will be
due to the vendor of Coralline Investments Proprietary Limited. This estimated amount was recalculated at the
end of 28 February 2018 based on the actuals for the February 2017 and February 2018 financial years and the
forecast for the financial year ending 28 February 2019 and remains unchanged from the comparative period. The
original transaction occurred prior to the disposal of the Plusnet-Geotex business to Master Plastics by Astrapak
Limited in preparation of the unbundling. The final amount will be determined upon finalisation of the Group
audited results for the financial year ended 28 February 2019, which is anticipated to be towards the end of
May 2019. The amount finally due will therefore be recalculated based on the agreed valuation formula and the
actual results achieved over the financial years ended 28 February 2017 to 28 February 2019 and could accordingly
still vary from the amount of the financial liability currently reported. The final amount due will be settled over
2 financial years, with 70% being settled in May 2019 and the balance on 28 February 2021. The long-term financial
liability is classified as a level 3 fair value in terms of the fair value hierarchy and has been discounted to
its present value at a rate of 10%.
9. Common Control Reserve
The common control reserve arose on the acquisition of equity interest by Master Plastics in Barrier Film
Convertors Proprietary Limited, Micawber 430 Proprietary Limited and Micawber 451 Proprietary Limited in terms of
the restructure detailed in note 3 and represents the differential between the net asset value acquired and the
value of the shares issued for such net asset value by Master Plastics, which value represented the carrying value
in the books of the parent.
Audited Audited
financial financial
year ended period ended
28 February 28 February
2018 2017
(R’000)
10 Revenue
Revenue for the group 529 089 9 347
Transactions with other entities in
the group (24 610) -
Revenue for external customers 504 479 9 347
11 Profit/(loss) from operations
Profit/(loss) from operations has been determined
after taking the following items into account:
Profit on disposal of plant and equipment 300 -
Auditors remuneration 811 104
Depreciation 14 893 245
Staff costs 87 239 2 908
Retirement benefit 4 709 134
Rental expense 9 230 438
Foreign exchange losses realised 313 -
Impairment of machinery due to redundancy 377 -
IFRS 2 Share Appreciation Rights Expense 1 218 -
12.Segmental analysis
As the financial period ended 28 February 2017 consisted only of 1 month’s trading, mainly attributable to the business
of Barrier Film Convertors Proprietary Limited, and due to the timing of the transaction in terms of which Master
Plastics acquired the underlying operations , a segmentation of the financial information reported for the period ended
28 February 2017 would not be meaningful and has therefore not been presented. The segmental analysis has been presented
for the financial year ended 28 February 2018.
13.Basic earnings/(loss) per ordinary share and Headline earnings/(loss) per ordinary share
Basic earnings/(loss) per ordinary share is calculated by dividing the profit/(loss) attributable to ordinary
shareholders of Master Plastics by the weighted average number of shares in issue over the period that the attributable
profit or loss was generated.
Headline earnings/(loss) per ordinary share is calculated by dividing the headline earnings/(loss) attributable to
ordinary shareholders of the parent by the weighted average number of shares in issue over the period that the headline
earnings/(loss) was generated.
14.Subsequent events
The Board is not aware of any other facts or circumstances material to the appreciation of this report that may have
occurred between 28 February 2018 and the date of this report.
Master Plastics Limited
Registration Number 2016/323930/06
Registered Office:
1410 Eglin Office Park, Eglin Road, Sunninghill, Johannesburg, South Africa
Business Address:
1410 Eglin Office Park, Eglin Road, Sunninghill, Johannesburg, South Africa
Directors:
TV Mokgatlha** (Chairman), M Diedloff (Chief Executive Officer), S Ratlhagane (Chief Financial Officer), P C Botha*,
G Z Steffens**, C I McDougall**, S Masinga**
** Independent Non-Executive Director * Non-Executive Director
Company Secretary:
S Ratlhagane
Transfer Secretaries:
Computershare Investor Services Proprietary Limited
Auditors:
Grant Thornton Johannesburg Partnership (Chartered Accountants)
Corporate Advisor and Designated Advisor:
Merchantec Capital, 2nd Floor, North Block Hyde Park Office Towers, Jan Smuts Avenue, Hyde Park
Date: 02/05/2018 02:32:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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