Earnings releases


Interim Results for the half-year ended 30 June 2004


NOTES

    

  Unaudited   Unaudited   Audited
  Half-year   Half-year   Year ended
  30 June   30 June   31 December
  2004   2003   2003
Rmillion     Restated    
1.  Valuation adjustments on          
   financial instruments and other items          
Maize procurement contracts 18   (255)   (211)
Translation of foreign currency:          
   Foreign cash (28)   (61)   (80)
   Other (9)   (25)   (57)
Export receivables (3)   (22)   (33)
Other financial instruments 1   (12)   (17)
 
 
 
  (21)   (375)   (398)
   
 
 
2.  Net financing costs          
Interest paid (189)   (210)   (438)
Financial instrument income 98   83   174
Realised gain on cash equivalent investment         43
Interest received 21   25   69
 
 
 
  (70)   (102)   (152)
   
 
 
3.   Tax          
Normal (34)   (7)   (24)
Deferred 25   64   130
Secondary tax on companies (5)   (24)   (29)
 
 
 
  (14)   33   77
   
 
 
4.  Capital expenditure commitments          
Contracted 73   95   46
Approved but not contracted 62   107   85
 
 
 
  135   202   131
   
 
 
5.  Operating lease commitments 34   37   59
  
 
 
6.  Guarantees and contingent liabilities 47   55   43
   
 
 
7.
  
Trade and other payables
Included in trade and other payables is the maize obligation (interest bearing) of R203 million (30 June 2003: R384 million and 31 December 2003: R553 million)
 
8.
  
Changes to comparatives – 30 June 2003
In preparing its financial statements for the year ended 31 December 2003, the Group implemented an accounting policy for the recognition of maize purchase commitments that are considered to be constructive obligations. Maize that relates to such constructive obligation is recognised as inventory, the related liability is recognised as a current liability and to the extent that the final purchase price includes a financing element, this is recognised as interest over the period of the obligation. Comparative figures for the half-year ended 30 June 2003 have been restated to recognise the financing element, resulting in underlying operating profit increasing by R27 million, finance costs increasing by R40 million and the loss after tax for the half-year ended 30 June 2003 increasing by R9 million. The cumulative effect on the balance sheet resulted in equity reducing by R25 million, deferred tax by R10 million and inventories by R35 million. Inventories and current liabilities of R384 million had been recognised in this regard at 30 June 2003.
 
9.
  
Operating profit
Operating profit includes underlying operating profit, Triangle dividend, restructure costs, valuation adjustments and exceptional items. It replaces the line in the Income Statement previously referred to as earnings before interest and tax. This presentation is as required by AC101: Presentation of Financial Statements.
 
10. Basis of preparation of the results
The unaudited results of the Group for the half-year ended 30 June 2004 have been prepared on a basis consistent with the audited annual financial statements at 31 December 2003. The accounting policies of the Group conform with South African Statements of Generally Accepted Accounting Practice. The interim report has been prepared in accordance with AC127: Interim Financial Reporting.