Financial results

Preliminary profit announcement and reviewed Group results
for the year ended 30 June 2013

Notes


1.	Commitments and contingencies
	As previously disclosed, legal proceedings have been instituted against Majuba Aviation Proprietary Limited, a subsidiary company of the Group providing aircraft charter services, for which there is insurance cover.
	There are no material contingent assets or liabilities at 30 June 2013 in addition to the above.
	Capital commitments at 30 June 2013:	Rm

	– Contracted	34
	– Authorised, not contracted	92
	Total	126

Changes in accounting policy

The accounting policies adopted and methods of computation are in terms of International Financial Reporting Standards (“IFRS”) and consistent with those of the previous financial year except for the adoption of new and amended IFRS and IFRIC interpretations which became effective during the current financial year. The application of these standards and interpretations did not have a significant impact on the Group’s reported results and cash flows for the year ended 30 June 2013 and the financial position at 30 June 2013.

Investment in Ceramic Industries

As announced on 26 November 2012, the Group acquired a 20% stake in Ceramic Industries Limited (“Ceramic”) for R529 million following the acceptance of a joint offer by Rallen Proprietary Limited and the Group to independent Ceramic shareholders. The investment is accounted for in accordance with the equity accounting requirements of IAS 28, Investments in associates. Included in the Group’s results are seven months’ earnings related to Ceramic, resulting in a R9 million contribution to earnings.

4.	Purchase of non-controlling interests in Cedar Point Trading 326 Proprietary Limited
	During the financial year, the Group acquired the 45% non-controlling stake held by the three previous business partners of Cedar Point Trading 326 Proprietary Limited at a cost of R39 million. Subsequent to year end, a 20% stake was sold to two new business partners identified during the financial year.

Italtile Australia

Following a thorough review of the Group’s retail operations in Australia, management has decided to sell the retail operations and was actively searching for a buyer at year end. The retail operations have thus been recorded as discontinued operations in these results. Further, given the adverse economic conditions in Australia, the Group has recorded a R5 million impairment on Australian property.


		Reviewed year to 30 June 2013	Audited year to 30 June 2012

6.	Earnings per share
	Reconciliation of shares in issue: (all figures in millions):
	– Total number of shares issued	1 033	1 033
	– Shares held by Share Incentive Trust	25	26
	– BEE treasury shares	88	88
	Shares in issue to external parties	920	919
	Share numbers used for earnings per share calculations (all figures in millions):
	– Weighted average number of shares	919	919
	– Diluted weighted average number of shares	921	923
	Reconciliation of headline earnings: (Rand millions):
	– Profit attributable to equity shareholders	444	378
	– Profit on sale of property, plant and equipment	(13)	(1)
	– Impairment of Australian Property	5	—
	Headline earnings	436	377
	Reconciliation of headline earnings for continuing operations (Rand millions):
	– Profit attributable to equity shareholders	443	375
	– Profit on sale of property, plant and equipment	(13)	(1)
	– Impairment of Australian Property	5	—
	Headline earnings for continuing operations	435	374