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Summarised provisional consolidated financial results for the year ended 28 February 2019
Acsion Limited
Incorporated in the Republic of South Africa
(Registration Number 2014/182931/06)
ISIN: ZAE000198289
Share code: ACS
("Acsion" or "the Company" or "the Group")
SUMMARISED PROVISIONAL CONSOLIDATED FINANCIAL RESULTS FOR THE YEAR ENDED 28 FEBRUARY 2019
Summarised provisional consolidated statement of financial position as at 28 February 2019
Audited Audited
2019 2018
R'000 R'000
Assets
Non-current assets
Investment property 7 409 903 6 468 041
Property, plant and equipment 671 533 76 503
Operating lease asset 143 641 139 182
Goodwill 625 464 625 464
Prepayments 233 296 326 429
Investments in associates 1 541 1 471
Other financial assets 5 432 6 847
Deferred tax 24 352 23 872
9 115 162 7 667 809
Current assets
Operating lease assets 13 144 2 138
Current tax receivable 2 504 525
Loans to group companies 1 699 899
Trade and other receivables 72 010 24 401
Loans to shareholders 4 053 4 053
Cash and cash equivalents 74 612 212 680
168 022 244 696
Non-current assets held for sale - 52 418
Total assets 9 283 184 7 964 923
Equity and liabilities
Equity
Share capital 3 968 078 3 969 625
Reserves 22 567 -
Retained income 2 828 881 2 006 548
Equity attributable to equity holders of parent 6 819 526 5 976 173
Non-controlling interest 55 565 41 122
6 875 091 6 017 295
Liabilities
Non-current liabilities
Deferred tax 1 405 014 1 195 221
Other financial liabilities 630 004 643 861
Lease obligation 209 588 -
2 244 606 1 839 082
Current liabilities
Loans from shareholders 3 151 -
Trade and other payables 128 270 65 773
Other financial liabilities 23 453 23 284
Provisions 3 767 3 174
Current tax payable 4 747 16 282
Dividend payable 99 33
163 487 108 546
Total liabilities 2 408 093 1 947 628
Total equity and liabilities 9 283 184 7 964 923
Summarised provisional consolidated statement of profit or loss and other comprehensive income
Audited Audited
2019 2018
R'000 R'000
Revenue 653 351 586 490
Other operating income 9 345 8 215
Other operating expenses (224 223) (223 545)
Operating profit 438 473 371 160
Investment income 13 917 27 793
Finance costs (61 654) (56 915)
Profit from associate 70 321
(Loss)/Profit on sale of non-current assets held for sale (68) 783
Fair value adjustments 837 877 744 785
Profit before taxation 1 228 615 1 087 927
Taxation (293 439) (264 310)
Profit for the year 935 176 823 617
Other comprehensive income:
Items that may not be reclassified to profit or loss:
Gains on property revaluation 30 347 -
Income tax relating to items that may be Reclassified (6 798) -
Total items that may not be reclassified to profit or Loss 23 549 -
Other comprehensive income for the year net of
Taxation 23 549 -
Total comprehensive income for the year 958 725 823 617
Profit attributable to:
Owners of the parent 920 734 814 462
Non-controlling interest 14 442 9 155
935 176 823 617
Total comprehensive income attributable to:
Owners of the parent 944 283 814 462
Non-controlling interest 14 442 9 155
958 725 823 617
Basic and diluted earnings per share (cents) 233.93 206.76
The following information does not form part of the Statement
of Profit or Loss and Other Comprehensive Income or the
Statement of Financial Position:
Per share information
Headline earnings per share (cents) 71.73 61.81
Proposed dividend per share (cents) - 25.00
Summarised provisional consolidated statement of changes in equity (R'000)
Total
attributable
Foreign to equity
Total currency holders of Non-
Share Treasury share translation Revaluation Total Retained the group/ controlling Total
Audited capital shares capital reserve reserve reserves income company interest equity
Balance at
01 March 2017 3 979 956 (6 231) 3 973 725 - - - 1 241 456 5 215 181 31 967 5 247 148
Total comprehensive
income for the year - - - - - - 814 462 814 462 9 155 823 617
Purchase of
treasury shares - (4 100) (4 100) - - - (4 100) - (4 100)
Dividends paid - - - - - - (49 370) (49 370) - (49 370)
Balance at
01 March 2018 3 979 956 (10 331) 3 969 625 - - - 2 006 548 5 976 173 41 122 6 017 295
Total comprehensive
income for the year - - - - 23 549 23 549 920 734 944 283 14 442 958 725
Purchase of
treasury shares - (1 547) (1 547) - - - - (1 547) - (1 547)
Dividends paid - - - - - - (98 401) (98 401) - (98 401)
Foreign currency
translation - - - (982) - (982) - (982) - (982)
Balance at
28 February 2019 3 979 956 (11 878) 3 968 078 (982) 23 549 22 567 2 828 881 6 819 526 55 565 6 875 091
Summarised provisional consolidated statement of cash flows
Audited Audited
2019 2018
R'000 R'000
Cash generated by operations 511 923 376 547
Investment income received 13 917 23 234
Finance costs paid (61 283) (56 915)
Taxation paid (104 438) (73 087)
Net cash from operating activities 360 118 269 779
Purchase of property, plant and equipment (36 846) (25 001)
Proceeds on sale of plant and equipment - 260
Development costs relating to investment property (353 161) (384 807)
Decrease of financial assets 1 415 6 008
Proceeds on sale of non-current assets held for sale 3 265 17 204
Net cash used in investing activities (385 327) (386 336)
Purchase of treasury shares (1 547) (4 100)
Proceeds from other financial liabilities (13 688) 366 095
Proceeds of loans from shareholders 3 151 -
Finance lease payments (286) -
Finance cost (372) -
Dividends paid (98 335) (49 337)
Proceeds of loans to group companies - 52
Advance of loans to associate and group companies (800) -
Net cash (used in)/from financing activities (111 877) 312 710
Total cash movement for the year (137 086) 196 153
Cash at the beginning of the year 212 680 16 527
Effect of exchange rate movement on cash balances (982) -
Total cash at the end of the year 74 612 212 680
Reconciliation of earnings per share to headline earnings per share:
Basic earnings 920 734 814 462
Adjusted for:
Fair valuation adjustment, net of taxation (650 192) (577 953)
Non-controlling interest relating to fair valuation adjustment 11 403 6 380
Loss on non-current assets held for sale 375 420
Loss on sale of plant and equipment - 163
Impairment of subsidiary loan - 12
Headline earnings 282 320 243 484
Net asset value per share (cents) 1 733.56 1 518.25
Net asset value per share excluding deferred taxation (cents) 2 084.53 1 815.83
Geographic and tenant profiles
The existing income generating investment properties consist of nine predominantly retail developments
strategically located in Gauteng, Mpumalanga and Limpopo with an aggregate gross lettable area ("GLA")
of 256 466 m2 (2018: 253 800 m2). The tenant profile by GLA comprises 71% national tenants (2018: 71%),
17% semi-national (2018: 14%) and 12% line and other franchises (2018: 15%).
The tenant profile is separated into national and semi-national tenants to indicate the exposure Acsion
has to direct head office leases and individual franchises. Exposure to national and semi-national
tenants as a percentage of GLA is at 88% (2018: 85%). Line shops and other franchises are carefully
vetted by Acsion's leasing division to promote maximum dwelling time and footfall in each centre,
underpinning trading densities and the overall sustainability of tenants' lease terms.
Geographic profile by revenue
Gauteng - 72%
Limpopo - 12%
Mpumalanga - 16%
Geographic profile by GLA
Gauteng - 69%
Limpopo - 15%
Mpumalanga - 16%
Tenant profile by revenue
National - 66%
Semi national - 21%
Line and other franchises - 13%
Tenant profile by GLA
National - 71%
Semi national - 17%
Line and other franchises - 12%
COMMENTARY
About Acsion
Acsion ("the Group" or "the Company") is a property manager, real estate developer and owner which is
listed on the Johannesburg Stock Exchange ("JSE"). Acsion is differentiated from Real Estate Investment
Trusts ("REITs") in the listed property sector as it focuses on the delivery of superior net asset value
("NAV") growth. NAV growth drivers include enhancing existing properties, completing the identified
development pipeline and obtaining additional future development opportunities.
The Group's development function and "value-engineering" approach to development, significantly enhances
returns to shareholders. Value engineering focuses on optimising upfront feasibility studies, planning,
designing and constructing in an innovative and more cost-effective way, resulting in lower construction
costs, without compromising on quality.
Operational update
The Acsiopolis development (Benmore, Sandton) has progressed in the current financial year. As at year
end, the development had reached 80% completion stage.
The final building permit application has been obtained in regards to the 39 000m2 Metropolis Mall@Larnaka
(Larnaka, Cyprus) and groundwork has commenced. Construction is anticipated to be completed in the latter
part of 2020.
Financial results
Revenue for the Group increased from R586.5 million in 2018 to R653.4 million in 2019. The increase of
11.4% was mainly due to Mall@55 being operational for a complete year compared to only five months in the
prior year. Other income supplemented rental revenue by R9.3 million (2018: R8.2 million).
Operating expenses increased by 0.3% (2018: 9.0% increase). Factors contributing to the low increase
included renegotiating with contractual suppliers as well as an overall focus on cost savings throughout
operations.
The increase in finance cost from R56.9 million in 2018 to R61.7 million in 2019 can mainly be attributed
to the change in the prime lending rate. The group continues to aggressively manage its cash resources.
Headline earning per share increased to 71.73 cents (2018: 61.81 cents) representing a 16.0% increase.
The financial position of the Group remains very strong. Investment property (which includes elements
of plant and equipment and the operating lease asset) is carried at R8.3 billion (2018: R6.7 billion).
Non-current asset held for sale previously carried at R52.4 million was transferred back to Investment
Property. Total property under control of the Group therefore increased by a respectable 23.9% year
on year.
Prepayments consist of two developments acquired during the formation of the Group, known as Acsiopolis
and Mall@Maputo. With the construction industry under pressure, Acsiopolis has made significant progress
despite experiencing delays. The Group is still delaying Mall@Maputo until feasible to commence. These
delays are in management's opinion welcomed to some extent as the economy in Mozambique is not as strong
as what management would have liked it to be. Management however continues to work on this project to bring
it to finalisation as it firmly believes that this development meets the investment criteria for the Group.
Acsiopolis as well as the development in Larnaca will be the Group's main focus areas during the 2020
financial year.
Goodwill equates to R625.5 million (2018: R625.5 million) relating to the premium paid by shareholders to
secure participation in the development pipeline as well as to receive the value attributable to
internalising the property development and property management functions performed by Southern Palace
Investments 108 Proprietary Limited within the Group upon listing. As at year end no impairment was
required.
Group liquidity is considered to be adequate.
NAV per share increased from 1 518.25c to 1 733.56c. NAV per share (excluding deferred taxation) for the
year ended 28 February 2019 increased by 14.8% (2018: 15.5%) from 1 815.83c in 2018 to 2 084.53c in 2019.
Treasury share purchase
The Group repurchased 239 143 (2018: 611 851) shares at an average price of 647 cents per share during
the 2019 financial year and currently holds these as treasury shares. The decision to repurchase shares
was made as the share price was trading significantly below the reported NAV of the Company. These shares
were purchased at approximately 63% below the reported NAV per share (including deferred tax) as at
28 February 2019.
Vacancy levels and lease expiry profile
Strategic vacancies are maintained in order to accommodate potential tenant relocations and to support
lease optimisation. The weighted vacancy (by GLA) for the portfolio as at year end was 3.82% (2018: 4.42%)
and the Group remains focused on reducing this percentage. The weighted average lease expiry profile by
GLA for the portfolio decreased to 3.2 years (2018: 4.0 years). The decrease is mainly attributable to
new retail centres signing up leases with extended lease expiry profiles in the prior year.
Developed investment property portfolio (excluding residential property in Hyde Park valued at
R55.9 million) consisted of the following nine properties at 28 February 2019:
Value/m2 Percentage
Directors/ (excluding of total
independent bulk, where portfolio
valuation GLA applicable) by value
Property name R'mil m2 R %
Mall@Carnival* 2 793 90 547 30 459 45.0
Mall@Reds* 1 285 54 788 23 454 20.7
Mall@Emba* 572 24 035 23 798 9.2
Mall@Lebo 518 23 536 22 015 8.3
Mall@Mfula 308 17 955 17 162 5.0
Mall@Moutsiya* 232 14 715 15 188 3.7
Mall@55* 305 15 419 18 225 4.9
Moreleta Square 152 8 581 17 690 2.5
Simarlo Rainbow 46 6 890 6 699 0.7
Total 6 211 256 466 24 220 100.0
The above properties are trading at an average annualised net operating yield of approximately
7.0% (2018: 6.9%).
Developments under construction consisted of the following properties at 28 February 2019:
Directors/
independent Antici-
valuation GLA Value/m2 pated
Property name R'mil m2 R opening
Acsiopolis* 1 689 67 000 25 215 March 2020
Trade55* 48 10 000 4 800 Negotiating
Larnaca (valued at cost) 246 39 000 6 307 Nov 2020
Total 1 983 116 000 17 095
* Independently valued
The group uses a discounted cash flow and income capitalisation methodology as a basis when determining
the fair value of investment property. At least one third of the properties are valued externally and
the balance of the properties are valued by the Directors. A property will be externally valued at least
once every three years. All investment properties for the Group is Level 3 hierarchy investment properties.
There were no transfers between Levels 1, 2 and 3 during the year.
Reconciliation of investment property (R'000)
Opening balance 6 468 041
Additions 353 161
Right of use asset 209 874
Transfer from prepayment 93 133
Classification from Non-current assets held for sale 55 900
Transfer of Investment property to Property, plant and equipment (555 321)
Transfer of Investment property to insurance claim receivable (45 951)
Fair value adjustments # 831 066
Closing balance 7 409 903
# Fair value adjustment recognised through profit and loss.
Unobservable inputs used in determining the fair value of investment property (excluding mixed used
development) were based on the following:
Ranges
Exit capitalisation rate 7.50% - 11.00%
Discount rate 12.50% - 17.00%
Revenue escalation rate 6.25% - 8.07%
Expense escalation rate 7.00% - 8.00%
The estimated impact of a change in the significant unobservable inputs would result in a change in
the 2019 investment property fair value estimation:
Properties excluding mixed use development R'000
An increase of 50 basis points in the discount rate: (87 650)
A decrease of 50 basis points in the discount rate: 89 695
An increase of 50 basis points in the capitalisation rate: (269 906)
A decrease of 50 basis points in the capitalisation rate: 305 324
Unobservable inputs used in determining the fair value of the mixed used development were
based on the following:
Ranges (if applicable)
Capitalisation rate (apartments and retail) 7.50% - 9.00%
Average Room rate (apartments) R3 276
Average occupancy rate (apartments) 75.00%
Net profit % 22.30%
Discount rate (retail) 12.50%
Revenue escalation (retail) 8.00%
The estimated impact of a change in the significant unobservable inputs would result in a change
in the 2019 investment property fair value estimation:
Mixed use development R'000
An increase of 100 basis points in capitalisation rate: (162 868)
A decrease of 100 basis points in the capitalisation rate: 205 097
An increase of 100 basis points in the room rate: 29 628
A decrease of 100 basis points in the room rate: (29 628)
An increase of 100 basis points in net profit %: 60 466
A decrease of 100 basis points in net profit %: (60 466)
An increase of 100 basis points in the occupancy rate: 41 357
A decrease of 100 basis points in the occupancy rate: (41 357)
Unobservable inputs used in determining the fair value of the owner occupied hotel disclosed as part
of property, plant and equipment:
Ranges (if applicable)
Capitalisation rate 9.00%
Average Room rate R1 752
Average occupancy rate 75.00%
Net profit % 22.30%
The estimated impact of a change in the significant unobservable inputs would result in a change in
the 2019 property (PPE) fair value estimation:
Owner occupied hotel R'000
An increase of 100 basis points in capitalisation rate: (102 805)
A decrease of 100 basis points in the capitalisation rate: 128 506
An increase of 100 basis points in the room rate: 20 367
A decrease of 100 basis points in the room rate: (20 367)
An increase of 100 basis points in net profit %: 45 489
A decrease of 100 basis points in net profit %: (45 489)
An increase of 100 basis points in the occupancy rate: 27 450
A decrease of 100 basis points in the occupancy rate: (27 450)
Acsiopolis (Benmore) has been designed as a twenty storey mixed use development, situated in Sandton.
Acsiopolis addresses the new micro-living trend, which is developing in the commercially dense
Sandton node, allowing people to live and work in close proximity, whilst taking advantage of 5-star
amenities, and making use of public transport. The site measures approximately one hectare and is well
positioned on Benmore Drive upon which 67 000 m2 is being developed. The majority of this has been
earmarked for short-term residential letting which supports Acsion's strategy of sectoral diversification.
Of this approximately 35 000 m2 will be available as executive suites, 26 000 m2 is earmarked for short
term stay units, 5 000 m2 will be utilised for retail purposes and 1 000 m2 for office use. Acsiopolis
will incorporate six levels of parking equating to approximately 1 400 parking bays which is expected to
further enhance convenience for shoppers and residents alike. In addition to vehicular access, Acsiopolis
has been designed to take into consideration the evolving public transport systems in Sandton to
accommodate the integration of pedestrian accessibility. New innovations such as solar PV and electric
car charging stations, will be incorporated to bring the building in line with international standards
of design, and provide residents with technology to challenge the head winds of the fourth industrial
revolution. Construction of the development has been effected by the construction slowdown in South Africa
and delays have been experienced. The development team have made a considerable effort to keep the
development on track with the intended timeline and is expecting to deliver the final Acsiopolis offering
to the market by the end of quarter two of the 2020 financial year. This development represents the largest
single phase developments the Group has undertaken to date within South Africa.
Metropolis Mall@Larnaka is the Group's first international retail development. The Group has signed a
leasehold over land in Larnaka, Cyprus. The lease is a 33 year lease with two options to renew of 33 years
each. The Group has started to develop a 39 000 m2 retail centre. Final building approvals from the Ministry
and all relevant bodies have been received during the 2019 financial year and groundwork have been started.
The development construction is intended to commence during May 2019. At 39,000 m2 of GLA, it will be the
dominant and only formal retail mall in Larnaka, catering for approximately 150 000 people. Acsion is
forecasting double-digit yields on this project, with a considerable uplift to our net asset value on
completion, which is targeted for end of 2020. The development will also enhance geographical and currency
diversification for the Acsion portfolio.
Mall@55 is a 15 000 m2 convenience shopping centre located in Monavoni, Gauteng. It is on an extremely
busy arterial route accessible from the N14 freeway and the R55. This development caters for a
value/convenience/lifestyle centre, which is underrepresented in the Monavoni area. The shopping centres
started trading in September 2017 and has been well received by the market. Acsion has commenced the
construction of an expansion of the Mall@55 with a second phase measuring 10,000m2, with a projected
opening date of March 2020.
Trade 55 Phase I, will comprise of a 10 000 m2 large ("big box") retail centre with special commercial
rights obtained in Monavoni, Gauteng. This development is located on an extremely busy arterial route
accessible from the N14 freeway and R55 provincial route. Trade 55's value offering will be complementary
to that of Mall@55 as it is located right across from the Mall@55 site.
Hyde Park Terrace, a high end residential development consisting of land parcels and units ranging from
350 m2 to 540 m2 under roof, is situated in Hyde Park, Sandton, approximately 500 m from Hyde Park shopping
centre. The development is nearly sold out with only six (2018: six) completed houses and seven (2018: nine)
vacant stands still available for sale. Management has taken the decision to reclassify this property from
held for sale to investment property as at 28 February 2019. Management is still committed to selling these
assets, but due to economic circumstances the likelihood of selling within one year is low.
Future investment opportunities
Acsion continuously evaluates a consistent stream of new opportunities and is in advanced discussions on
certain projects to further enhance capital growth in the coming five years. At the date of this report,
the following future development opportunities, amongst others, were being considered by Acsion:
Mall@Emba, is another of Acsion's highly successful rural developments in Embalenhle and expansion to the
centre (Phase 3) is being assessed. On 25 June 2018 a fire occurred at the mall due to service delivery protest
action. The mall was covered by insurance and is being rebuilt. It is expected that the mall would be fully
operational by end of June 2019.
Mamahlodi Gardens is an affordable housing development in Walkraal, Limpopo with a total land size of 40
hectares. Acsion has formed a partnership with local residents and the local municipality to approach prospective
buyers with access to housing subsidies from the Department of Human Settlements. Proclamation of the land is
completed with all services (water, sewage and electricity) already secured. Plans to construct up to 515
residential units for sale are supported by a shortage of affordable housing in the Walkraal area. The market
price will range between R300 000 and R350 000 per unit. The development will be demand driven and will be
supplementary to the Mall@Moutsiya development. The Group is currently in negotiations with various parties to bring
this aspect of the development to fruition. The Group is also considering alternatives to the housing
development to utilise the remaining extent of the land.
The Mall@Maputo development will be located in northern Maputo and will be adjacent to the main Maputo ring
road, with a total land size of 8.9 hectares. A memorandum of understanding was originally signed with the
Mozambican Ministry of Sport to develop a 50 000 m2 shopping centre. Subsequently, the Group decided to acquire
an alternative land parcel adjacent to the existing land parcels which now requires an additional agreement
with the Ministry of Interior to be concluded. The Group have been in constant negotiations with the Ministry
of Interior and a final draft contract has been negotiated.
With Offices@Lusaka, Acsion aims to take advantage of Zambia's growing economy and limited available
infrastructure for multinational companies. Negotiations with a local land owner to co-develop up to
20 000 m2 of office space are currently underway. The site is located in close proximity to Manda Hill
Shopping Mall and alongside Stanbic's Lusaka offices.
Prospects
Acsion's Board remain confident that the Group's growth objectives can be achieved despite the challenging
economic operating environment. The Group remains focused on the completion of its secured development pipeline
over the next year.
Acsion will continue reinvesting in its existing portfolio and focus on its development expertise, or
"value-engineering" approach, to ensure above average NAV growth. In addition, Acsion will explore further
development opportunities in high-growth markets across Africa and Europe.
Proposed dividend
The Company's policy as per the listing statement was not to declare any dividends for a period of five
years but to reinvest all profits and return capital growth to shareholders. The board revisited this decision
considering the development funding requirements in the foreseeable future as well as the impact on the
liquidity and solvency position of the company. It was decided not to propose any dividend for the year
ended 28 February 2019.
The 2018 dividend of 25.0 cents per share was declared and paid in the 2019 financial year.
Segmental reporting
Due to the current investment property portfolio exposure heavily weighted towards retail, the chief
operating decision maker considers the operations to be a single operating segment and as such reviews financial
information on that basis. Segment reporting as required in terms of IFRS 8: Operating segments is therefore not
applicable to the Group at this stage.
Changes in directors
During the 2019 financial year Mrs S. Griesel resigned as a non-executive director, effective 31 July 2018.
Ms M. Hlobo was appointed on 29 October 2018 to succeed Mrs S. Griesel.
Related party transactions
There were no significant related party transactions during the current year with the exception of
construction costs amounting to R24 million (2018: R109 million) relating mainly to rebuilding of Mall@Emba
and Acsiopolis which was paid to K Anastasi Projects Proprietary Limited (interest held by director).
Events after reporting period
A dispute is ongoing with the main contractor for the construction of Acsiopolis. The dispute is in regards
to delays and penalties on the construction. The outcome of the dispute is currently uncertain.
The Directors are not aware of any other material event which occurred after the reporting date and up to
the date of this report.
Basis of preparation and accounting policies
The summarised provisional consolidated financial statements are prepared in accordance with the
requirements of the JSE Listings Requirements and the requirements of the Companies Act 71 of 2008 of
South Africa. The results have been prepared in accordance with the framework concepts, the measurement
and recognition requirements of International Financial Reporting Standards (IFRS), the SAICA Financial
Reporting Guides as issued by the Accounting Practices Committee, Financial Pronouncements as issued by
the Financial Reporting Standards Council, and also as a minimum, contain the information required by
IAS 34: Interim Financial Reporting.
The accounting policies applied in the preparation of the summarised provisional consolidated financial
statements are in compliance with IFRS and are consistent with those applied in the 2018 consolidated
financial statements except for the adoption of new and amended standards as set out below.
The Group adopted the following standards:
- IFRS 9 Financial Instruments, and
- IFRS 15 Revenue from Contracts with Customers; and
- IFRS 16 (early adoption), 'Leases' requiring lessees to recognise a lease liability reflecting future
lease payments and a 'right-of-use asset' for all material long-term lease contracts
The adoption of IFRS 9 and IFRS 15 had no material impact on the results.
Summary of revenue recognised as follows:
Audited Audited
2019 2018
R'000 R'000
Collection commission 315 217
Rental income on investment property 492 527 449 858
Interest received (Trading) 1 542 1 162
Utility cost recovery 143 506 133 942
Operating lease - straight line rental 15 461 1 311
Total 653 351 586 490
The early adoption of IFRS 16 resulted in an increase in investment property of R210 million as well as an
increase in lease obligation of R210 million.
These results have been prepared under the historical cost convention, except for investment properties and
property, plant and equipment, which are measured at fair value, and certain financial instruments, which are
measured at either fair value or amortised cost.
These summarised provisional consolidated financial statements were prepared under the supervision of
Sandarie le Roux CA (SA) in her capacity as Financial Director.
Audit report
The auditor, Deloitte & Touche, has issued its opinion on Acsion's consolidated financial statements for the
year ended 28 February 2019. The audit was conducted in accordance with International Standards on Auditing.
Deloitte & Touche has issued an unmodified opinion. A copy of the auditor's report together with a copy of the
audited consolidated and separate financial statements is available for inspection at the Company's
registered office during normal business hours. The auditor's report does not necessarily report on all of the
information contained in this announcement/financial results. Shareholders are advised that, in order to obtain
a full understanding of the nature of the auditor's engagement, they should obtain a copy of that report together
with the audited consolidated financial statements as at 28 February 2019 from the Company's registered office
during normal business hours.
These summarised provisional consolidated financial statements have been derived from the audited
consolidated Financial statements and are consistent in all material respects with the audited consolidated
financial statements for the year ended 28 February 2019 but is not itself audited.
The Directors take full responsibility for the preparation of these summarised provisional consolidated
financial results and confirm that the financial information has been correctly extracted from the underlying
annual consolidated financial statements. Any reference to future financial information included in this
announcement has not been reviewed or reported on by the auditor.
By order of the Board
Centurion, 29 May 2019
D Green K Anastasiadis
(Chairman) (Chief Executive Officer)
Directors: D Green (Chairman)*, K Anastasiadis (CEO), S le Roux (FD), M Hlobo*,
PD Sekete*, T Jali*, HN Bila*
(*Independent non-executive)
Registered office: Mall@Reds, 1st Floor, Corner of Rooihuiskraal and Hendrik Verwoerd Drives,
Rooihuiskraal, Ext 15, Centurion
Postal address: PO Box 569, Wierda Park, 0149
Registration number: 2014/182931/06
Transfer secretaries: Computershare Investor Services Proprietary Limited, Rosebank Towers,
15 Bierman Avenue, Rosebank, 2192
Sponsor: Nedbank Corporate and Investment Banking
Company secretary: MWRK Accountants and Auditors Incorporated
Date: 29/05/2019 05:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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