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 |
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Year ended |
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30 Sept |
|
|
2005 |
|
2004 |
|
|
2004 |
|
|
R million |
|
R million |
|
% |
R million |
|
Notes |
(Unaudited) |
|
(Unaudited) |
|
change |
(Audited) |
| Revenue |
|
3 276,0 |
|
3 011,9 |
|
9 |
6 247,3 |
| Earnings before interest, tax, depreciation |
|
|
|
|
|
|
|
| and amortisation (EBITDA) |
|
459,9 |
|
390,4 |
|
18 |
811,9 |
| Depreciation |
|
26,9 |
|
25,7 |
|
5 |
57,9 |
| Operating profit before amortisation of goodwill |
|
433,0 |
|
364,7 |
|
19 |
754,0 |
| Amortisation of goodwill |
|
– |
|
25,2 |
|
– |
53,5 |
| Operating profit |
|
433,0 |
|
339,5 |
|
28 |
700,5 |
| Net interest and dividend income |
|
16,5 |
|
28,5 |
|
(42) |
65,1 |
| Profit before abnormal item |
|
449,5 |
|
368,0 |
|
22 |
765,6 |
| Abnormal items |
|
– |
|
20,3 |
|
|
6,0 |
| Profit before taxation |
|
449,5 |
|
388,3 |
|
16 |
771,6 |
| Taxation |
|
156,1 |
|
141,5 |
|
10 |
309,0 |
| Profit after taxation |
|
293,4 |
|
246,8 |
|
19 |
462,6 |
| Share of associate companies’ profits |
|
29,6 |
|
33,1 |
|
(11) |
66,8 |
| Profit after tax including associate companies |
|
323,0 |
|
279,9 |
|
15 |
529,4 |
| Earnings attributable to outside shareholders |
|
|
|
|
|
|
|
| in subsidiaries |
|
9,8 |
|
23,9 |
|
(59) |
51,0 |
| Earnings attributable to ordinary shareholders |
|
|
|
|
|
|
|
| in Reunert Limited |
|
313,2 |
|
256,0 |
|
22 |
478,4 |
| Basic earnings per share (cents) |
|
181,2 |
|
135,0 |
|
34 |
251,9 |
| Diluted basic earnings per share (cents) |
|
178,8 |
|
133,2 |
|
34 |
248,4 |
| Headline earnings per share (cents) |
|
181,2 |
|
138,7 |
|
31 |
277,5 |
| Diluted headline earnings per share (cents) |
|
178,8 |
|
136,9 |
|
31 |
273,6 |
| Dividends per ordinary share declared in |
|
|
|
|
|
|
|
| respect of the period (cents) |
|
52,0 |
|
40,0 |
|
30 |
160,0 |
| Taxation rate excluding amortisation and |
|
|
|
|
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| abnormal items (%) |
|
34,7 |
|
35,6 |
|
|
37,6 |
| EBITDA as a % of turnover |
|
14,0 |
|
13,0 |
|
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13,0 |
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Note 1 |
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| OPERATING PROFIT |
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| Operating profit is stated after: |
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| – Cost of sales |
|
2 239,4 |
|
2 119,1 |
|
|
4 268,4 |
| – Other income |
|
(6,1) |
|
(28,1) |
|
|
(10,2) |
| – Other expenses excluding depreciation |
|
|
|
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| and amortisation |
|
582,8 |
|
530,5 |
|
|
1 177,2 |
|
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Note 2 |
|
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| NET INTEREST AND DIVIDEND INCOME |
|
|
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| Interest received |
|
18,2 |
|
25,8 |
|
|
47,8 |
| – RC&C Finance Company |
|
10,2 |
|
9,8 |
|
|
18,6 |
| – external |
|
8,0 |
|
16,0 |
|
|
29,2 |
| Interest paid |
|
(10,5) |
|
(8,7) |
|
|
(10,1) |
| Dividend income other than from associates |
|
8,8 |
|
11,4 |
|
|
27,4 |
| Total |
|
16,5 |
|
28,5 |
|
|
65,1 |
| |
|
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| Dividend income from associate included in |
|
|
|
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| share of associate companies profit |
|
40,0 |
|
– |
|
|
– |
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Note 3 |
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| ABNORMAL ITEMS |
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| Surplus on the sale of properties |
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– |
|
20,3 |
|
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21,1 |
| Impairment of plant and equipment |
|
– |
|
– |
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(1,1) |
| Impairment of goodwill in associate |
|
– |
|
– |
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|
(14,0) |
| Total before taxation |
|
– |
|
20,3 |
|
|
6,0 |
| Taxation |
|
– |
|
(1,4) |
|
|
(1,4) |
| Total |
|
– |
|
18,9 |
|
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4,6 |
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Note 4 |
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| NUMBER OF SHARES USED TO CALCULATE EARNINGS
PER SHARE |
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| Weighted average number of shares in issue
used to |
|
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| determine basic earnings per share and headline |
|
|
|
|
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|
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| earnings per share (millions of shares) |
|
172,8 |
|
189,6 |
|
|
189,9 |
| Adjusted by the dilutive effect of unexercised
share |
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| options granted to certain group employees |
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|
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| (millions of shares) |
|
2,4 |
|
2,5 |
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2,7 |
| Weighted average number of shares used to determine |
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| diluted earnings per share and diluted headline |
|
|
|
|
|
|
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| earnings per share (millions of shares) |
|
175,2 |
|
192,1 |
|
|
192,6 |
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Note 5 |
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| HEADLINE EARNINGS |
|
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| Headline earnings are determined by eliminating
the |
|
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| effect of the following items in attributable
earnings: |
|
|
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|
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| Earnings attributable to ordinary shareholders |
|
313,2 |
|
256,0 |
|
|
478,4 |
| Surplus on sale of property, plant and equipment |
|
(0,1) |
|
(18,9) |
|
|
(21,7) |
| Goodwill amortisation |
|
– |
|
25,2 |
|
|
53,5 |
| Impairment (note 3) |
|
– |
|
– |
|
|
15,1 |
| Taxation |
|
0,1 |
|
0,7 |
|
|
1,6 |
| Headline earnings |
|
313,2 |
|
263,0 |
|
|
526,9 |
|
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Note 6 |
|
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| GOODWILL |
|
|
|
|
|
|
|
| Carrying value at the beginning of the year |
|
321,8 |
|
306,9 |
|
|
306,9 |
| (Disposals)/acquisitions of businesses, |
|
|
|
|
|
|
|
| associates and subsidiaries |
|
(68,6) |
|
31,6 |
|
|
80,8 |
| Adjustment to the purchase price of a business |
|
|
|
|
|
|
|
| acquired in a prior period |
|
– |
|
(0,5) |
|
|
1,6 |
| Amortisation for the period |
|
– |
|
(25,2) |
|
|
(53,5) |
| Impairments |
|
– |
|
– |
|
|
(14,0) |
| Carrying value at the end of the period |
|
253,2 |
|
312,8 |
|
|
321,8 |
| |
|
|
|
|
|
|
|
| Goodwill in the prior period was amortised
over |
|
|
|
|
|
|
|
| periods varying between one and ten years.
In terms |
|
|
|
|
|
|
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| of AC140 on business combinations, goodwill |
|
|
|
|
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|
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| acquired on or after 31 March 2004 up until |
|
|
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|
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| 30 September 2004 (note 10) was not amortised, |
|
|
|
|
|
|
|
| but was subjected to an impairment test. From |
|
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|
|
|
| 1 October 2004 goodwill has not been amortised,
but |
|
|
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|
|
|
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| has been subjected to an impairment review. |
|
|
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Note 7 |
|
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| INVESTMENTS |
|
|
|
|
|
|
|
| At cost plus equity accounted earnings |
|
|
|
|
|
|
|
| excluding goodwill |
|
110,2 |
|
70,4 |
|
|
109,9 |
| Listed – at market valuation |
|
21,2 |
|
30,5 |
|
|
16,6 |
| Unlisted – at directors’ valuation |
|
542,2 |
|
541,9 |
|
|
536,5 |
|
|
|
|
|
|
|
|
Note 8 |
|
|
|
|
|
|
|
| RC&C FINANCE COMPANY ACCOUNTS RECEIVABLE |
|
|
|
|
|
|
|
| Collectable within one year |
|
197,8 |
|
54,3 |
|
|
137,0 |
| Collectable after one year |
|
563,0 |
|
181,9 |
|
|
391,5 |
| |
|
760,8 |
|
236,2 |
|
|
528,5 |
| Accounts receivable mainly comprise of discounted deals
that consist of the present value of discounted rental agreements
which are repayable over varying periods up to a maximum
of five years from the balance sheet date. |
|
|
|
|
|
|
|
| |
|
Note 9 |
| RC&C FINANCE COMPANY BORROWINGS |
| RC&C Finance Company has total long-term
banking facilities of R900 million. |
| The banks which have granted these facilities
are contractually bound to provide these on a long term basis
but they may give notice to run these down. Once notice has
been given these facilities reduce to zero in line with the
reduction in the underlying rental debtors over a maximum
of five years. |
|
Note 10 |
| ACCOUNTING POLICIES |
| The group’s accounting policies are in accordance
with South African Statements of Generally Accepted Accounting Practice
and are consistent with those of the prior year except that in terms
of AC 140 goodwill has not been amortised in the current period. All
goodwill has been subjected to an impairment review. AC 140 has been
applied prospectively and accordingly no comparative figures have
been restated. |
| |
| This report has been prepared in accordance
with AC 127 on interim financial reporting. |
|
Note 11 |
| MAJOR ACQUISITION |
| On 1 December 2004 Reunert reacquired the 25,1% indirect
shareholding that Kgorong Investment Holdings (Pty) Limited held in
ATC (Pty) Limited. At the same date ATC acquired the business of African
Cables Limited as a going concern and Powerhouse Utilities (Pty) Limited,
a black owned company subscribed for new shares in ATC (Pty) Limited
resulting in it holding a 25,1% stake in the restructured cable entity. |
| |
| |
|
