Earnings releases


Audited Results & Final Dividend Declaration for the year ended 31 December 2003


NOTES


    2003 2002
Rmillion Restated
1. Valuation adjustments on financial instruments and other items
Maize procurement contracts(211)(20)
Translation of foreign currency:
- foreign cash holdings(80) (151)
- other(57) (15)
Export receivables (33)(26)
Other financial instruments (17) (3)


(398) (215)
 

2.Net financing costs
Interest paid (438)(340)
Financial instrument income174 149
*Realised gain on cash equivalent investment 43
Interest received6957


(152)(134)


Increased borrowings from R931 million at 31 December 2002 to R1 369 million at 31 December 2003 arose from the funding of operations and expenditure on property, plant and equipment, resulting in the increase in interest paid.
* Previously accounted for directly in equity  
3.  Exceptional items
Surplus on sale of property held as fixed assets15 9
Goodwill amortisation(3)(2)
Impairment of assets(2)
Other(3)(1)


Exceptional items before tax7 6
Tax2 2


Exceptional items after tax9 8
 

4. Tax
Includes the deferred tax reversal of R64 million relating to the reserves of foreign subsidiaries which will no longer be taxable on repatriation to South Africa as a result of amended tax legislation.
 
5.  Current liabilities
Accounts payable998 1 030
Maize obligation - interest bearing553 446


Trade and other payables1 551 1 476
Short-term borrowings998317
Tax15 9


2 564 1 802
 

6.  Capital expenditure commitments
Contracted46 90
Approved but not contracted85 221


131 311
 

7.Operating lease commitments59 44
 

8.  Guarantees and contingent liabilities 43 44
 

9.Effect of change in accounting policy
Balance Sheet
Equity prior to accounting policy change4 219 4 567
Cumulative effect of change in accounting policy(26)(16)
   Increase in maize inventory517 424
   Increase in current liability(553)(446)
   Decrease in deferred tax10 6


Adjusted equity at beginning of year4 193 4 551


Income Statement
Total net (loss)/earnings prior to accounting policy change(31) 401
Effect of change:
   Increase in operating profit42 16
   Increase in interest cost(56)(34)
   Decrease in deferred tax4 5


Total net (loss)/earnings(41)388