Audited Final Results

for the year ended 31 March 2007

Notes to the financial statements


1.
  		 Basis of accounting
These consolidated financial statements are prepared on a historical cost basis, except for certain financial instruments which have been recognised at fair value, and in accordance with International Financial Reporting Standards (“IFRS”).
      31 March 31 March  
      2007 2006  
      Rm Rm  
      Audited Audited  
2. Cost of merchandise sales        
  Purchases   1 211.7 1 077.4  
  Movement in inventory   (17.7) (56.8)  
  Cost of merchandise sales   1 194.0 1 020.6  
  Gross profit   614.8 547.2  
3. Net finance costs        
  Interest paid:   29.6 12.7  
  – Bank and loans   26.9 12.5  
  – Other   2.7 0.2  
  Interest earned:   (4.0) (5.9)  
  – Bank   (2.7) (5.9)  
  – Other   (1.3) –  
  Forward exchange contracts   (13.2) 6.0  
      12.4 12.8  
4. Trade and other receivables        
  Instalment sale and loan receivables   3 317.0 2 921.4  
  Provision for unearned finance charges and unearned maintenance income   (572.7) (508.0)  
  Provision for doubtful debts   (377.5) (368.0)  
  Provision for unearned insurance premiums   (214.3) (184.8)  
      Unearned insurance premiums   (346.7) (300.9)  
      Less: re-insurer’s share of unearned premiums   132.4 116.1  
           
  Net instalment sale and loan receivables   2 152.5 1 860.6  
  Other receivables   35.2 35.9  
      2 187.7 1 896.5  
  The credit terms of instalment sale and loan receivables range from 6 to 24 months. Amounts due from instalment sale and loan receivables after one year are reflected as current, as they form part of the normal operating cycle.
5. Material capital commitments
  There were no material capital commitments contracted for or authorised and contracted at the end of the year under review.
6. Cash generated from operations        
  Operating profit   859.9 670.2  
  Adjusted for:        
      Share-based payment   4.0 58.7  
      Depreciation   38.9 35.0  
      Surplus on disposal of property, plant and equipment   (3.8) (6.0)  
      Movement in provision for doubtful debts   9.5 (17.4)  
      Movement in retirement benefits provision   (8.2) 3.4  
      Movement in other provisions   11.1 9.8  
  Changes in working capital:        
  Increase in inventories   (20.1) (62.0)  
  Increase in trade and other receivables   (295.3) (152.2)  
  (Decrease)/Increase in trade and other payables   (4.5) 53.7  
      591.5 593.2  
7. Net cash outflow from financing activities        
  Purchase of treasury shares   (213.5) (152.2)  
  Dividends paid   (231.8) (156.9)  
  Other   6.0 (4.8)  
      (439.3) (313.9)  
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