Annual Financial Statements


Financial Statements for the year ended 31 December 2004


Notes to the Financial Statments (1 - 10)


1. PROPERTY, PLANT AND EQUIPMENT (Rmillion)
           
Group TotalLand Plant andVehicles CapitalisedCapital
and equipmentand other leasedwork in
buildings plant andprogress
vehicles
Carrying value at beginning of year 4 162634 3 013195 82238
Additions 1913 9912 77
Disposals (20)(16) (2)(1) (1)
Depreciation (231)(11) (190)(28) (2)
Transfers 7 322 (41)
Currency alignment 135 31 4
Carrying value at end of year 4 115 622 2 955 181 83 274
Comprising:
2004
  At cost5 589 7494 015 430121 274
  Accumulated depreciation 1 474127 1 060249 38
4 115 622 2 955 181 83 274
2003
  At cost5 485 7483 956 423120 238
  Accumulated depreciation 1 323114 943228 38
4 162 634 3 013 195 82 238
 

Company
Carrying value at beginning of year 1 908278 1 335116 6173
Additions 1292 803 44
Disposals (18)(16) (1)(1)
Depreciation (159)(4) (137)(18)
Transfers 5 31 (9)
Carrying value at end of year 1 860 265 1 280 101 6 208
Comprising:
2004
  At cost2 911 3292 069 27629 208
  Accumulated depreciation 1 05164 789175 23
1 860 265 1 280 101 6 208
2003
  At cost2 881 3382 059 28229 173
  Accumulated depreciation 97360 724166 23
1 908 278 1 335 116 6 173
 

Plant and machinery with a book value of R44 million (2003 - R46 million) are encumbered as security for the secured finance lease obligations and as security for certain short-term borrowings of R8 million
(2003 - R14 million).

The register of land and buildings is available for inspection at the company's registered office.

 
2.GROWING CROPS (Rmillion) GroupCompany
    2004 20032004 2003
Reconciliation of carrying value:
Carrying value at beginning of year179 16894 100
Increase due to purchases/increased area under cane 6
Gain arising from physical growth and price changes23 402 16
Net decrease due to reduced area under cane(20) (27)(20) (22)
Currency alignment3 (8)
Carrying value at end of year185 179 76 94
             
2.GROWING CROPS continuedGroup Company
    2004 20032004 2003
Area under cane (hectares)
  South Africa   10 869 13 43610 869 13 436
  Mozambique   7 200 7 480
  Swaziland   3 811 3 811
21 880 24 727 10 869 13 436
       
3. LONG-TERM RECEIVABLE (Rmillion) Group Company
20042003 20042003
Advances to an export partnership210 210 210 210
  The company participates in an export partnership engaged in the construction of luxury vessels in order to foster the use of aluminium plate in marine applications.
 
4. GOODWILL (Rmillion) Group 
20042003   
At cost 49 49   
Accumulated amortisation
  Balance at beginning of year    129   
  Current charge    2 3   
Balance at end of year14 12   
Carrying value at end of year35 37   
Goodwill is amortised over 20 years.
     
5.INVESTMENTS (Rmillion) Group Company
    20042003 20042003
Associate:
The carrying value of the Group's 49% interest in
Ašucareira de Xinavane, SARL (Mozambique) comprises:
  Unlisted shares    2020   
  Loan   80 74   
  Cumulative share of post-acquisition deficits(95) (94)   
   Balance at beginning of year  (94) (68)   
    Movement in currency translation reserve (7) 19   
    Earnings/(loss) for the year6 (45)   
            
Book value    5 0   
Directors' valuation5 0   
Summarised balance sheet:
  Property, plant and equipment 359323
  Growing crops59 42
  Current assets 4999
  Current liabilities (82)(92)
  Borrowings:
   External    (354)(385)
   Shareholders    (198)(155)
  Net deficit(167) (168)
  Other shareholders' share of deficit 8586
  Group share of deficits (pre and post-acquisition) (82) (82)
Summarised income statement:
  Revenue125 103
  Earnings/(loss) before depreciation 5(3)
  Depreciation(24) (27)
  Foreign exchange gain/(loss) 58(31)
  Operating profit/(loss)39 (61)
  Financing costs (27) (32)
  Earnings/(loss) for the year 12(93)
  Other shareholders' interest (6) 48
  Group share of earnings/(loss) 6 (45)
Other investments:
  Unlisted shares at fair value 152
  Loans3 322
  Book value 185 22
Carrying value of investments 235 22
  A schedule of unlisted investments is available for inspection at the company's registered office.
 
6.DERIVATIVE INSTRUMENTS (Rmillion) Group Company
2004 2003 2004 2003
The fair value of derivative instruments at year end was:
Forward exchange contracts - hedge accounted (8)(34)8 10
Forward exchange contracts - not hedge accounted 4 (1) 2 (1)
Futures contracts - hedge accounted (7) (7) (7)1
Embedded derivatives (5)
(16) (42)3 10
Summarised as:
  Derivative assets36 11 14 11
  Derivative liabilities(52) (53) (11) (1)
(16) (42) 3 10
  Further details on derivative instruments are set out in note 31.
 
7.SUBSIDIARIES AND JOINT VENTURES (Rmillion) Company
  20042003
Shares at cost, less amounts written off 527498
Indebtedness by 715527
Indebtedness to (191)(106)
  1 051 919
The Group's proportionate share of the assets, liabilities and post-acquisition reserves of joint ventures, which comprise in the main, Hulett Aluminium, is included in the consolidated financial statements as follows:
 
Property, plant, equipment and investments 1 9691 987
Current assets 849639
Less: Current liabilities (309) (274)
Capital employed 2 5092 352
Less: Borrowings (435) (470)
          Post-acquisition reserves (1 320)(1 169)
          Deferred tax, provisions and derivative instruments (549)(583)
          Minority interests in subsidiary (11)(6)
Interest in joint ventures 194 124
The Group's proportionate share of the trading results of the joint ventures is as follows:
Revenue       1 783 1 618
  Earnings/(loss) for the year 57(74)
  Tax (3)24
  Minority interests (5)(1)
  Total net earnings/(loss) 49 (51)
The Group's proportionate share of cash flows of the joint ventures is as follows:
  Cash flows from operating activities (193)(19)
  Net cash used in investing activities (38)(55)
  Net movement in cash resources (231) (74)
The investment in Triangle is retained at a nominal value.
Its assets, liabilities and results which are not included in the consolidated financial statements and which have not been adjusted for inflation, are translated at the official Zimbabwe dollar exchange rate as follows:
  20042003       2004 2003
Equity 194365 * Property, plant and equipment          2822
Minority interest 69  Growing crops133 392
Deferred tax 41121  Current assets255 486
Long-term borrowings 4  Current liabilities (175)(401)
241 499  241 499
Revenue 852 954  Total net earnings 256 445
  * Property, plant and equipment have been accounted for in terms of the historical cost convention.
 
8.INVENTORIES (Rmillion)      Group      Company
2004 2003 2004 2003
Raw materials 404586263 493
Work in progress 827744
Finished goods 819775724 697
Consumable stores 12211756 57
Development properties 222214
1 649 1 7691 047 1 251
  Included in raw materials is an amount of R208 million (2003 - R517 million) that relates to the constructive obligation that has been recognised on maize procurement contracts.
9.CASH AND CASH EQUIVALENTS
  Cash and cash equivalents include cash on hand, cash on deposit and cash advanced, repayable on demand.
 
10.SHARE CAPITAL (Rmillion)
20042003
Authorised:
150 000 000 ordinary shares of R1 each 150 150
Issued and fully paid:
102 247 941 (2003 - 101 467 417) 102 101
Unissued:
Under option to employees, for a period of ten years from date granted, to subscribe for 7 466 621 shares at an average price of R39,79 per share (2003 - 7 040 460 shares at R38,36 per share).
Under control of the directors for the purposes of the company's share incentive scheme 2 758 173 shares (2003 - 3 106 282 shares).
  Under control of directors in terms of a shareholders' resolution 37 527 265 shares (2003 - 38 385 841 shares).

Details of share options are set out in note 25.