Annual Financial Statements


Financial Statements for the year ended 31 December 2002


Notes to the Financial Statements
Notes 11 - 20 to the Financial Statements
 
 
11.   BORROWINGS (Rmillion) Group Company
2002 2001 2002 2001
Long-term 614 1 165 183 242
Short-term 296 288 71 162
Bank overdraft 21 49
931 1 502 254 404
Long-term borrowings comprise:
Effective
interest
rate (%)
Secured:
SA Rand
  Finance leases (refer to note 25) 12,2-15,2 11 19 5
Unsecured:
SA Rand
  Repayable 2003/2004 15,0 183 252 183 252
  Repayable 2003/2008 12,7 187 206
  Repaid 60 60
Foreign
  Repayable 2003/2009 Libor + 0,4 265 530
  Repayable 2003/2024 0-12,7 129 282
764 1 330 183 312
Total long-term borrowings 775 1 349 183 317
Less: Current portion included
  in short-term borrowings 161 184 75
614 1 165 183 242

Plant and machinery with a book value of R55 million are encumbered as security for the secured finance lease obligations and as security for certain short-term borrowings of R18 million.

Unsecured Rand denominated long-term loans of R370 million (2001 ­ R458 million) are shown net after set-off of related investments totalling R1 016 million (2001 - R867 million).

The foreign Libor linked unsecured loans are repayable in US dollars and amount to US $31 million. These loans are recorded at the ruling price at year end and the foreign currency risk is covered by forward exchange contracts. The other unsecured foreign loans, repayable in Mozambique meticais, are also recorded at the ruling price at year end but it has not been possible to cover the foreign currency risk.

Group short-term borrowings include an amount of R64 million owing to a joint venture of the Group.

Summary of future loan repayments by financial year:

Year 2004 2005 2006 2007 2008 2009 Thereafter
Rmillion 188 91 88 97 61 23 66

In terms of the company's articles of association the borrowing powers of the Group are limited to R6 858 million.
 
 
 
12. PROVISIONS (Rmillion) Group Company
2002 2001 2002 2001
Post-retirement medical aid obligations 199 185 170 160
Retirement gratuity obligations 43 37 39 34
Other 3 3 3 3
245 225 212 197
 
13.  OPERATING EARNINGS FROM CONTINUING Group Company
OPERATIONS (Rmillion) 2002 2001 2002 2001
Revenue 6 103 4 993 4 102 3 345
Cost of sales (4 480) (3 670) (2 978) (2 475)
Administration expenses (705) (713) (512) (489)
Marketing and selling expenses (301) (255) (184) (172)
Other income/(expenses) 121 241 68 (50)
Operating earnings 738 596 496 159
Disclosable items:
Income from unlisted investments 1 2 1 2
Surplus on disposal of plant and equipment 7 7
Foreign exchange (loss)/gain (38) 84 (7) 25
Changes in fair value of financial instruments (51) 80 (35) 59
Depreciation charged
- Buildings 12 8 4 3
- Plant and equipment 121 126 86 90
- Vehicles and other 37 25 30 19
Management fees paid to subsidiaries 20 25
Management fees paid to third parties 4 3
Technical fees paid 15 11 15 11
Operating lease charges (property, plant and vehicles) 11 8 7 6
Auditors' remuneration paid
- Fees 4 3 2 2
- Other services 1
Remuneration of directors and alternate directors
  Executives
  - Fees 0,4 0,3 0,4 0,3
  - Salaries, benefits and other emoluments 15,8 15,2
  - Performance related payments 4,9 7,0
  - Gains on share options exercised 0,2 0,6 0,2 0,6
  Non-executives
  - Fees 0,5 0,3 0,5 0,3
  - Benefits and other emoluments 0,8 0,3 0,8 0,3
 
14.   DIVIDENDS RECEIVED FROM SUBSIDIARIES (Rmillion)
Group Company
2002 2001 2002 2001
Triangle 71 76
Other subsidiaries 137 87
71 76 137 87
 
15. NET INTEREST (Rmillion) Group Company
2002 2001 2002 2001
Interest paid (306) (304) (201) (204)
Financial instrument income 149 127 149 127
Interest capitalised 27
Interest received - external 57 68 13 23
Interest received - subsidiaries 33 29
(100) (82) (6) (25)
Comprising:
   Continuing operations (100) (75) (6) (19)
   Discontinued operations (7) (6)
(100) (82) (6) (25)
 
16. EXCEPTIONAL ITEMS (Rmillion) Group Company
2002 2001 2002 2001
Surplus on sale of property held as fixed assets 9 9 3 2
Goodwill amortised (2) (3)
Surplus on disposal of subsidiaries 7 20
Loss on disposal of operations (8) (5)
Impairment of assets (8) (8)
Other (1) (2) (1) (2)
Exceptional items before tax 6 (5) 2 7
Tax (refer note 17) 2 10 2 9
Exceptional items after tax 8 5 4 16
 
17. TAX (Rmillion) Group Company
2002 2001 2002 2001
Tax on earnings before exceptional items:
   Current 20 17
   Deferred 92 176 91 44
   Secondary tax on companies 26 9 26 9
   Prior years (9) 9 (13) (10)
   Foreign tax rate change (2)
129 209 104 43
Tax on exceptional items:
   Current (1)
   Deferred (2) (9) (2) (9)
(2) (10) (2) (9)
Tax for the year 127 199 102 34
Foreign tax included above 19 12
Normal rate of South African tax 30,0% 30,0% 30,0% 30,0%
Adjusted for:
   Non-taxable income (9,0) (12,0) (15,9) (19,0)
   Assessed losses (1,7) 2,7
   Non-allowable expenditure 0,3 1,2 0,1 4,8
   Secondary tax on companies 4,6 1,0 4,1 4,1
   Prior years (1,7) 0,9 (2,1) (4,6)
Effective rate of tax 22,5% 23,8% 16,2% 15,3%
Tax losses of R427 million (2001 - R782 million) have been utilised to reduce deferred tax. No deferred tax asset has been raised in respect of the tax losses of a South African subsidiary where future profitability is uncertain and a foreign subsidiary where current projections indicate that the tax losses will not be utilised in the short-term and may therefore expire in terms of applicable tax legislation.
 
18. HEADLINE EARNINGS (Rmillion) Group
2002 2001
Total net earnings 401 618
Less after tax effect of:
   Exceptional items (note 16) (8) (5)
   Surplus on disposal of plant and equipment (5)
Headline earnings 393 608
 
19. EARNINGS PER SHARE
Earnings per share are calculated using the weighted average number of ordinary shares in issue during the year. In the case of basic earnings per share the weighted average number of shares in issue during the year is 101 268 995 (2001 - 100 934 342) and in respect of diluted earnings per share the weighted average number of shares is 102 870 348 (2001 - 101 945 498).
 
20. DIVIDENDS (Rmillion)
2002 2001
Paid:
   Final for previous year, paid April 2002 - 208 cents (2001 ­ 150 cents) 211 151
   Interim for current year, paid August 2002 - 80 cents (2001 ­ 62 cents) 81 63
292 214
The final dividend for the year ended 31 December 2002 of 190 cents per share declared on 19 February 2003 and payable on 3 April 2003 has not been accrued.