Wrap Text
Unaudited Interim Results for the six months ended 31 August 2018
BALWIN PROPERTIES LIMITED
(Incorporated in the Republic of
South Africa)
(Registration number 2003/028851/06)
Share code: BWN
ISIN: ZAE000209352
("Balwin" or "the Group")
UNAUDITED INTERIM RESULTS
for the six months ended 31 August 2018
INTERIM HIGHLIGHTS
Up 9% Up 33%
EARNINGS PER SHARE REVENUE
Up 9% Up 14%
HEADLINE EARNINGS PER SHARE OPERATING PROFIT
Up 18% Up 9%
NET ASSET VALUE PER SHARE PROFIT FOR THE YEAR
COMMENTARY
CORPORATE OVERVIEW
Balwin is a specialist, niche, national large-scale, residential property developer
focused on the turnkey development and sale of sectional-title apartments as
well as surrounding infrastructure, in the mid to upper market segment.
Estates typically consist of between 500 and 1 500 sectional title residential
apartments and are located in high-density, high-growth nodes across
key metropolitan areas in Johannesburg, Tshwane, the Western Cape and
KwaZulu-Natal. The Group has a secured pipeline of 40 461 apartments across
23 locations in key target nodes with an approximate 12-year development
horizon.
Balwin estates offer secure, affordable, high-quality, environmentally friendly
and conveniently located one, two, and three bedroom sectional-title
residential apartments, ranging in size from 33m2 to 120m2. Prices range from
R599 900 to R1 999 900 per apartment (including modern fitted kitchen
appliances) within the classic operating model. Apartments are designed to
appeal to a wide range of home buyers, catering for first-time, move-up,
active adult, young professional, young family, older family, retirees as well as
buy-to-let. Balwin Elite model estates have been developed in select nodes,
where selling prices range from R1 999 900 to R2 999 900.
Apartments include modern fitted kitchens, prepaid water and solar assisted
electricity, eco-friendly fittings and appliances, and are all fibre enabled,
enhancing the Group's service offering to its customers as well as providing
sources of annuity income to shareholders.
Lifestyle centres are an integral part of the larger estate developments with
facilities offered as all-inclusive value-added services. These lifestyle centres
typically include free Wi-Fi, a wellness spa, restaurant, gym, squash court,
running track, action sports field, games room, cinema room, swimming
pools, playgrounds, laundromat and a concierge.
Estates offer 24-hour armed response security and are conveniently located
close to amenities including shopping centres, entertainment and leisure
facilities, medical centres and schools.
Strategy
Balwin's core strategy is to deliver sustainable long-term returns to
shareholders through its unique business model.
Balwin's current strategy rests on four key elements:
- Classic business
The core business focuses on providing a quality product to the middle-
income market at an affordable price. Balwin benefits from economies of
scale, in-house construction and management whilst retaining flexibility
throughout individual phases of large developments.
- Balwin Elite model developments
To support the core business model, Balwin continually tailors its
developments to match market demands, offering innovations in lifestyle
and convenience. Upmarket developments in select nodes, where higher
selling prices can be achieved (R1 999 900 to R2 999 900), form part
of this approach. The Elite model developments are built to higher
specifications but follow the same phase-by-phase development structure
as the classic developments.
- Rent-to-buy developments in partnership with property funds
Balwin takes responsibility for the design and construction of developments
for rental purposes. Balwin will market and secure lease agreements for
the apartments with prospective tenants before selling them on to a
strategic alliance partner in line with the existing proven model of a phase-
by-phase approach. These apartments will have a distinctive architecture
that is different to Balwin's classic model, yet will remain synonymous with
Balwin quality.
- Annuity income
The Group continuously explores opportunities to leverage its existing asset
base and all-inclusive services offering. Annuity income opportunities such
as partnerships on solar energy solutions and fibre infrastructure within
the Balwin estates and the rental business is currently being considered.
The annuity business will be complementary to Balwin's current business,
with limited additional construction costs required in order to generate
these annuity returns.
OPERATING MODEL
Balwin operates a build-to-sell model, currently developing and selling
between 2 000 and 3 500 sectional-title residential apartments per year.
The Group has the ability to increase this capacity to approximately
5 000 sectional-title residential apartments per year, based on its existing
infrastructure and development pipeline. Balwin also generates additional
annuity income through the management and ownership of infrastructure
within its developments.
Key aspects of the operating model
- Keeping a constant rate of construction (continuous development) subject
to demand - to retain contractors, maintain quality and support the build-
to-sell model.
- Insource all critical aspects of Balwin's build-to-sell model to contain costs
and control output; including in-house centralised procurement and
quantity surveying departments.
- Focus on the mid-market segment in terms of the pricing and location of
developments. Key selling points are lifestyle, quality and brand.
- Continuous focus on managing and exceeding international standards
and best practice in the design and marketing of Balwin developments.
- Target key nodes in Johannesburg North, South and East as well as
Tshwane, the Western Cape and KwaZulu-Natal; ensuring that revenue
streams and demand are diversified across various nodes and economies.
Continuous development approach
Balwin follows a continuous development approach. Its success is based on:
- selling 30 to 35 apartments per location, per month across diverse
locations;
- keeping operational costs and land acquisition costs in line;
- targeting a gross profit margin of approximately 35% over the life cycle
of a project; and
- executing on its land acquisition strategy in key target nodes.
The continuous development model sustains pricing tension in target nodes
and retains key artisanal skills as project teams revolve between estates,
depending on the stage of development at a particular site. All Balwin estates
are built to a standard specification (unique Balwin design and standard
finishes) typically not more than four storey blocks with 10 to 14 apartments
per block, allowing the Group to benefit from significant economies of scale.
Mitigating development risk
The construction of new developments is generally undertaken against
pre-sales to interested buyers. Residential estates are built and marketed in
phases (typically between 50 and 100 apartments), allowing for appropriate
risk management at all stages of the development process.
The flexibility of the block configuration design between 10 to 14 apartments
allows management to adapt and respond to market conditions and customer
demands.
Mitigating margin pressure and cost containment
Balwin's policy is to source all major construction material, fittings and
furnishings locally, in order to maintain quality and contain costs. As such,
imports are minimal and the Group's exposure to currency fluctuations are
mitigated to the extent possible. Significant input costs to developments
include cement as well as plumbing, electrical and kitchen installations.
Balwin's centralised procurement and quantity surveying departments ensure
that the Group leverages its scale optimally across all developments.
Key differentiators
Key differentiators in Balwin's build-to-sell model include the ability to
deliver a superior offering through economies of scale, in-house turnkey
development including construction and construction management, local
sourcing of key materials, focus within a defined middle-income segment,
quality, broad market appeal, partnerships with relevant stakeholders and
competitive pricing of developed apartments in line with or below market.
Balwin's residential estates typically include:
- 24-hour security with well-equipped guard houses;
- high-quality, ergonomically designed apartments that maximise apartment
space and functionality;
- eco-friendly fittings, appliances and utilities (such as pre-paid electricity
meters and gas and water supply meters);
- proximity to amenities such as shopping centres, entertainment and
leisure facilities, medical centres and schools, which are largely within
walking distance of the estate; and
- lifestyle centres complete with free Wi-Fi, a wellness spa, restaurant, gym,
squash court, running track, action sports field, games room, cinema
room, swimming pools, playgrounds, laundromat and a concierge.
Awards
The exceptional quality of the developments and the creative design of the
Balwin product was recognised at the recent Africa & Arabia Property Awards
where Balwin was awarded with two awards in the categories of "Apartment,
For South Africa" for its Paardevlei Square development in Somerset West,
Western Cape and the "Leisure Interior" award for The Polo Fields, Waterfall,
Johannesburg.
OPERATIONAL PERFORMANCE
Balwin continued to deliver a positive trading performance and execute on
its unique and innovative business model notwithstanding continued macro-
economic headwinds and increased consumer pressure. Demand for the
product remained strong with a total of 1 058 apartments handed over and
recognised as revenue in the period resulting in impressive top line growth
of 33%.
The strong trading performance is based on the consistent demand for
Balwin's high quality, affordable apartments and innovative lifestyle product.
The demand for the product is enhanced by management's ability to respond
proactively to changing market conditions and customer demands.
Management, together with its team of professionals, continue to invest
significant time and resources in facilitating the town planning and
local authority approval processes. These processes remain challenging
with resulting approval delays generally impacting the initial phases of
a development. As previously communicated to shareholders, all of the
developments which were negatively impacted by this approval process in
the prior period have now been approved and construction has commenced.
Four of the five previously delayed developments have been occupied during
the period.
The Group is currently active with 11 developments, the majority of which are
at the early stages of the project. This requires extensive investment in civils
and infrastructure works.
Within this challenging market environment, cost management and improved
efficiencies have remained important focus areas. Cash management and
preservation remain a priority. Management is actively monitoring the land
reform policy and is taking the necessary actions to ensure that its secured
pipeline of property developments is not negatively impacted.
Management remains committed to delivering annuity income to its
shareholders through the fibre, solar and rental businesses and remains alert
to other annuity type business opportunities that are complementary to the
existing business. Good progress has been made towards delivering the rental
model through strategic alliances and the market will be kept updated in this
regard. Developments that form part of the rental model will not compete with
Balwin's build-to-sell model, with phases sold to strategic partners who will
derive income from leasing the apartments. In addition to complementing the
existing business, the rental model will further allow Balwin the opportunity
to utilise and unlock its existing land bank at a quicker rate.
The Balwin Foundation
Living our commitment as an invested corporate citizen of South Africa,
the Balwin Foundation NPC supports and empowers the younger generation
and previously disadvantaged individuals to gain greater knowledge and skills
through technical vocational education and training. Students, employees,
contractors and unemployed community members are trained in a building
industry-related trade which includes setting out, tiling, painting, plastering
and bricklaying as well as managing construction resources, all skills which are
key to the success of the business. In addition, the Foundation offers courses
in computer operations, financial management and time management.
The Balwin Foundation has successfully trained over 300 previously
disadvantaged individuals and has funded 11 tertiary students and five
scholars through its bursary programme to date.
FINANCIAL PERFORMANCE
Revenue
During the reporting period, revenue increased by 33% compared to
the prior corresponding period. This was as a result of the increase in the
number of apartments handed over in the period. The average selling price
per apartment reduced marginally when compared to the prior period at
R1 125 488 (2017: R1 218 089) by virtue of a different product mix.
The average selling price per apartment is expected to reduce in future due to a
reconfiguration of the block design in response to market demand, introducing
new design one-bedroom, one-bathroom and two-bedroom, two-bathroom
apartments at lower prices, without impacting on the gross profit margin.
Gross profit margin
The gross profit margin achieved for the period was 27% compared to 32%
in the prior comparative period. The reduction in the margin resulted from a
number of factors, including:
- the one percent increase in the VAT rate which took effect in April 2018
was absorbed into the selling prices of Balwin apartments;
- numerous sales promotions run in the period that contributed to the
strong demand for the apartments;
- an increase in the mix of apartments from the Western Cape that derive
a lower gross margin; and
- the mix of sales included in the revenue recorded for the period includes
a large number of early stage developments which traditionally return a
lower gross margin.
The business continues to target a gross profit margin of 35% and above
through the entire lifecycle of a project, with typically higher margins being
achieved on Gauteng-based projects. Cost management and improved
efficiencies have remained important focus areas and the integration of the
centralised procurement system introduced last year has been completed.
Operating expenses
Operating expenses have increased in line with inflation, notwithstanding
the increase in revenue. Cost containment remains a key focus area for
management.
Earnings per share and headline earnings per share
Both earnings per share and headline earnings per share both increased by
9% to 38 cents (2017: 35 cents) for the reporting period.
Funding structure and costs
Development finance is obtained on a phase-by-phase basis and is secured
against the pre-sales of the specific phase being financed. Development
finance is obtained at an approximate loan to value of 70% with the
remainder of the construction costs financed through equity.
The Group's long-term debt-to-equity ratio as at the end of the reporting
period was 15% compared to 29% in the prior corresponding period.
Dividend
Following careful consideration of current market conditions and the board's
focus on cash management and preservation, no dividend has been declared
for the period. The board will reconsider the dividend position at year-end.
Prospects
Management remains optimistic on the medium- to long-term economic
forecasts and believes the Group is well-positioned to remain resilient in the
current economic climate.
Continued urbanisation and the growth of the South African middle-class
will continue to support the demand for affordable high-quality sectional title
apartments.
Prudent capital allocation and cautious cash flow management remain
priorities for management.
Significant focus is being placed on operational performance and execution
across all developments, especially during the initial phases.
Management remains committed to delivering on its rental model through
strategic alliances and growing shareholder wealth by delivering consistent
earnings through its annuity businesses.
PIPELINE
Total
Expected Total Total apartments
commence- Expected apartments Total Total apartments sold but not Total
ment date of in develop- apartments apartments recognised recognised unsold
Development date completion Status(*) ment sold registered in revenue in revenue apartments
Waterfall
Kikuyu Commenced March 2022 A 1 270 545 336 342 203 725
The Polofields Commenced March 2022 A 1 512 558 478 480 78 954
Waterfall Fields TBC TBC I 6 752 - - - - 6 752
Waterfall Ridge TBC TBC I 10 320 - - - - 10 320
Total 19 854 1 103 814 822 281 18 751
Johannesburg East
Malakite Commenced Complete C 290 290 279 279 11 -
The Reid Commenced June 2022 A 1 294 171 - 8 163 1 123
Westlake 1 and 2 Commenced TBC A 1 132 820 814 815 5 312
Total 2 716 1 281 1 093 1 102 179 1 435
Johannesburg North
Amsterdam Commenced October 2019 A 1 040 1 040 688 700 340 -
The Whisken Commenced November 2020 A 1 492 302 - 108 194 1 190
Total 2 532 1 342 688 808 534 1 190
Johannesburg South
Balboa Park Commenced Complete C 410 409 406 406 3 1
Majella Park October 2019 October 2020 I 280 - - - - 280
Total 690 409 406 406 3 281
KwaZulu-Natal
Ballito Hills Commenced TBC A 3 500 297 - - 297 3 203
Marshall Dam TBC TBC I 1 092 - - - - 1 092
Total 4 592 297 - - 297 4 295
(*) A - Active; I - Inactive; C - Complete
Total
Expected Total Total apartments
commence- Expected apartments Total Total apartments sold but not Total
ment date of in develop- apartments apartments recognised recognised unsold
Development date completion Status(*) ment sold registered in revenue in revenue apartments
Tshwane
The Blyde Commenced TBC A 3 544 276 - 197 79 3 268
Total 3 544 276 - 197 79 3 268
Western Cape
De Zicht Commenced October 2020 A 876 314 179 180 134 562
Paardevlei Lifestyle Commenced February 2021 A 342 80 15 41 39 262
Estate
Paardevlei Square Commenced Complete C 87 65 64 64 1 22
The Jade Commenced August 2019 A 432 288 60 60 228 144
The Sandown Commenced Complete C 636 629 610 615 14 7
The Huntsman January 2019 June 2023 I 1 044 - - - - 1 044
Gordons Bay TBC TBC I 1 300 - - - - 1 300
Fynbos February 2019 TBC I 1 116 - - - - 1 116
Paarl TBC TBC I 336 - - - - 336
Total 6 169 1 376 928 960 416 4 793
Rentals
Greenlee November 2018 December 2023 I 1 728 - - - - 1 728
Greenpark Commenced June 2021 A 1 200 - - - - 1 200
Greencreek TBC TBC I 1 760 - - - - 1 760
Greenwood TBC TBC I 1 760 - - - - 1 760
Total 6 448 - - - - 6 448
Grand Total 46 545 6 084 3 929 4 295 1 789 40 461
(*) A - Active; I - Inactive; C - Complete
RECONCILIATION OF HEADLINE EARNINGS
FOR THE SIX MONTHS ENDED 31 AUGUST 2018
Unaudited Unaudited Audited
Six months ended Six months ended 12 months ended
31 August 31 August 28 February
2018 2017 2018
Basic and headline earnings per share
Basic (cents) 38 35 105
Headline (cents) 38 35 105
Tangible net asset value per share (cents) 509 432 492
Net asset value per share (cents) 509 432 492
Weighted average number of shares in issue ('000) 469 915 469 818 469 915
Net asset value (R'000) 2 390 790 2 030 893 2 311 906
Reconciliation of profit for the year to headline earnings
Profit for the year (R'000) 177 900 163 078 491 345
Adjusted for:
- Profit on disposal of property, plant and equipment (R'000) 10 (17) (15)
Headline earnings (R'000) 177 910 163 061 491 330
Weighted average number of shares
Weighted average number of shares in issue ('000) 469 915 469 915 469 915
Potential dilutive impact of share options ('000) 2 277 2 277 2 277
472 192 472 192 472 192
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 31 AUGUST 2018
Unaudited Unaudited Audited
Six months ended Six months ended 12 months ended
31 August 31 August 28 February
2018 2017 2018
R'000 R'000 R'000
Revenue 1 193 150 894 077 2 454 635
Cost of sales (867 563) (604 226) (1 649 406)
Gross profit 325 587 289 851 805 229
Other income 1 049 2 162 6 587
Operating expenses (80 195) (75 238) (140 995)
Operating profit 246 441 216 775 670 821
Investment revenue 2 613 10 416 15 273
Finance costs (2 427) (419) (3 559)
Profit before taxation 246 627 226 772 682 535
Taxation (68 727) (63 694) (191 190)
Profit for the year 177 900 163 078 491 345
Other comprehensive income:
Items that may be reclassified to profit or loss:
Exchange differences on translating foreign operations 144 686 651
Total comprehensive income for the year 178 044 163 764 491 996
Basic and diluted earnings per share
Basic (cents) 37.85 34.70 104.56
Diluted (cents) 37.68 34.54 104.06
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 AUGUST 2018
Unaudited Unaudited Audited
Six months ended Six months ended 12 months ended
31 August 31 August 28 February
2018 2017 2018
R'000 R'000 R'000
ASSETS
Non-current assets
Property, plant and equipment 80 086 52 116 73 214
Intangible assets 29 - 31
Deferred tax 2 579 4 862 1 540
Total non-current assets 82 694 56 978 74 785
Current assets
Developments under construction 3 027 910 2 413 677 2 588 472
Trade and other receivables 571 224 307 830 859 408
Other financial assets - 8 601 3 858
Current tax receivable 29 689 60 241 4 566
Cash and cash equivalents 62 339 266 671 100 033
Total current assets 3 691 162 3 057 020 3 556 337
Total assets 3 773 856 3 113 998 3 631 122
Equity and liabilities
Share capital 664 354 664 354 664 354
Reserves (436) (545) (580)
Retained income 1 726 872 1 367 084 1 648 132
Total equity 2 390 790 2 030 893 2 311 906
LIABILITIES
Non-current liabilities
Other financial liabilities 352 912 583 992 579 628
Current liabilities
Trade and other payables 123 197 102 522 63 771
Other financial liabilities 901 696 389 528 672 050
Current tax payable - 2 2
Provisions 5 261 7 061 3 765
Total liabilities 1 383 066 1 083 105 1 319 216
Total equity and liabilities 3 773 856 3 113 998 3 631 122
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 31 AUGUST 2018
Foreign
currency
Share translation Retained Total
capital reserve income equity
R'000 R'000 R'000 R'000
Balance at 28 February 2017 (Audited) 664 354 (1 231) 1 350 386 2 013 509
Total comprehensive income - 686 163 078 163 764
Profit for the period - - 163 078 163 078
Other comprehensive income - 686 - 686
Dividends - - (146 380) (146 380)
Balance at 31 August 2017 (Unaudited) 664 354 (545) 1 367 084 2 030 893
Total comprehensive income - (35) 328 267 328 232
Profit for the period - - 328 267 328 267
Other comprehensive loss - (35) - (35)
Issue of shares - - - -
Dividends - - (47 219) (47 219)
Balance at 28 February 2018 (Audited) 664 354 (580) 1 648 132 2 311 906
Total comprehensive income - 144 177 900 178 044
Profit for the period - - 177 900 177 900
Other comprehensive income - 144 - 144
Dividends - - (99 160) (99 160)
Balance at 31 August 2018 (Unaudited) 664 354 (436) 1 726 872 2 390 790
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED 31 AUGUST 2018
Unaudited Unaudited Audited
Six months ended Six months ended 12 months ended
31 August 31 August 29 February
2018 2017 2018
R'000 R'000 R'000
Cash flow from operating activities
Cash generated from/(used in) operations 185 370 103 868 (129 913)
Investment revenue 2 613 10 416 15 273
Finance costs (26 313) (23 334) (78 962)
Taxation paid (93 852) (128 136) (196 636)
Net cash generated from/(used in) operating activities 67 818 (37 186) (390 238)
Cash flow from investing activities
Purchase of property, plant and equipment (12 132) (13 849) (40 182)
Proceeds on disposal of property, plant and equipment 30 34 45
Disposal of intangible assets - - (31)
Movement of financial assets 3 858 21 528 26 271
Net cash (used in)/generated from investing activities (8 244) 7 713 (13 897)
Cash flow from financing activities
Development loans repaid (700 857) (508 782) (939 838)
Development loans raised 702 749 404 337 1 090 636
Dividends paid (99 160) (146 380) (193 599)
Net cash used in financing activities (97 268) (250 825) (42 801)
Total cash and cash equivalents movement for the year (37 694) (280 298) (446 936)
Cash and cash equivalents at the beginning of the year 100 033 546 969 546 969
Total cash and cash equivalents at the end of the year 62 339 266 671 100 033
NOTES TO THE CONDENSED CONSOLIDATED STATEMENTS
FOR THE SIX MONTHS ENDED 31 AUGUST 2018
1. Basis of preparation
The interim unaudited condensed consolidated financial statements have been prepared in accordance with and containing the information required
by IAS 34: Interim Financial Reporting as well as the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee, Financial
Pronouncements as issued by Financial Reporting Standards Council, the JSE Listing Requirements and the Companies Act, 2008 (No 71 of 2008)
as amended. They have been prepared on the historical cost basis, except for certain financial instruments which are measured at fair value, and are
presented in South African Rand, which is the Group's functional and presentation currency.
The accounting policies and methods of computation are in terms of International Financial Reporting Standards ("IFRS") and are consistent with
those of the consolidated annual financial statements at 28 February 2018.
The interim unaudited condensed consolidated financial statements have been externally prepared under the supervision of J Weltman, in his
capacity as Chief Financial Officer.
The interim unaudited condensed consolidated financial statements have not been reviewed or audited by Deloitte & Touche, the Group's external
auditors.
2. Exchange rates
The following exchange rates were used in foreign transactions during the periods:
31 August 31 August 28 February
Rand/British Pound 2018 2017 2018
Closing rate 19.07 16.75 16.26
Average rate 17.34 16.80 17.18
Number of shares Number of shares Number of shares
31 August 2018 31 August 2017 28 February 2018
3. Share capital
Authorised
Ordinary shares 1 000 000 1 000 000 1 000 000
Unaudited Unaudited Audited
six months six months 12 months
ended ended ended
31 August 2018 31 August 2017 28 February 2018
R'000 R'000 R'000
Issued and fully paid up
Ordinary shares 664 354 664 354 664 354
The unlisted shares are under the control of the directors until the next
annual general meeting.
Number of shares Number of shares Number of shares
31 August 2018 31 August 2017 28 February 2018
Reconciliation of shares in issue
Opening balance 469 915 469 662
Movement - 253
Closing balance 469 915 469 915
Unaudited Unaudited Audited
Six months ended Six months ended 12 months ended
31 August 31 August 28 February
2018 2017 2018
R'000 R'000 R'000
4. Related party disclosure
Related party transactions - -
Sale of units to related parties
SV Brookes - 23 769 141 189
RN Gray - 9 122 54 119
Volker Properties Proprietary Limited - - 44 056
ML Brookes - - 9 947
S Brookes 833 - 2 612
J Weltman 629 - 1 333
Rent paid to related parties
SV Brookes 885 187 609
Volker Properties Proprietary Limited 247 - -
ML Brookes 25 154 154
Management fee from related parties
SV Brookes - 176 176
RN Gray 129 46 119
U Gschnaidtner 29 9 22
J Weltman 6 2 4
Purchases from a director and shareholder
SV Brookes - - 10 600
Malewell Investment Proprietary Limited (*) 20 000 - 5 000
Unlocked Properties 16 Proprietary Limited (*) 17 500 - -
Compensation to directors and other key management
Directors' emoluments 17 946 28 224 33 396
(*) The transactions relate to purchases of land from companies that are related parties to Buff-Shares Proprietary Limited.
5. Fair value information
Fair value hierarchy
The different levels are defined as follows:
Level 1: Quoted unadjusted prices in active markets for identical assets or liabilities that the Group can access at measurement date.
Level 2: Inputs other than quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly.
Level 3: Unobservable inputs for the asset or liability.
No changes have been made to the valuation technique.
The fair values of financial instruments that are not traded in an active market are determined using standard valuation techniques. These valuation
techniques maximise the use of observable market data where available and rely as little as possible on company-specific estimates.
The fair values disclosed for the financial assets and liabilities as classified in Level 3 of the financial instruments hierarchy have been assessed to
approximate their carrying amounts.
There were no transfers between Levels 1, 2 and 3 during the year.
Unaudited Unaudited Audited
Six months ended Six months ended 12 months ended
31 August 31 August 28 February
2018 2017 2018
R'000 R'000 R'000
6. Financial instruments
Loans and receivables
Trade and other receivables 571 224 307 829 856 024
Cash and cash equivalents 62 339 266 671 100 033
Other financial assets - 8 601 3 858
Financial liabilities at amortised cost
Other financial liabilities (1 254 608) (973 520) (1 251 678)
Trade and other payables (107 397) (71 296) (63 771)
CORPORATE INFORMATION
BALWIN PROPERTIES LIMITED Registered office
Incorporated in the Republic of South Africa Block 1, Townsend Office Park
Registration number 2003/028851/06 1 Townsend Avenue
Share code: BWN Bedfordview
ISIN: ZAE000209532 Private Bag X4, Gardenview, 2047
("Balwin" or "the Group") Telephone: 011 450 2818
Directors Sponsor
H Saven (Chairperson)*# Investec Bank Limited
SV Brookes (Chief Executive Officer)
J Weltman (Chief Financial Officer)
R Gray (Managing Director)
Transfer secretary
A Shapiro*# Computershare Investor Services Proprietary Limited
O Amosun*# (Registration number 2004/003647/07)
KW Mzondeki*# Rosebank Towers, 15 Biermann Avenue, Johannesburg, 2196
T Mokgosi-Mwantembe*# (PO Box 61051, Marshalltown, 2107)
R Zekry#
www.balwin.co.za
* Independent
# Non-executive 15 October 2018
Company secretary
JUBA Statutory Services Proprietary Limited
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