Audited Results

for the year ended 31 March 2009

Abridged 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”), specifically IAS 34 Interim Financial Reporting. The accounting policies applied are consistent with the prior year.
       
    31 March 2009 31 March 2008
    Rm Rm
    Audited Audited
2. Debtor costs    
  Bad debts, repossession losses and bad debt recoveries 201.9 172.1
  Movement in doubtful debts provision 136.9 18.3
    338.8 190.4
       
3. Net finance costs    
  Interest paid 108.5 68.2
  Interest earned (11.5) (6.5)
  Forward exchange contracts (10.5) (4.9)
    86.5 56.8
       
4. Trade and other receivables    
  Instalment sale and loan receivables 4 007.2 3 539.8
  Provision for unearned finance charges and unearned    
  maintenance income (181.1) (263.7)
  Provision for unearned initiation fees (78.3) (46.9)
  Provision for unearned insurance premiums (360.0) (290.5)
  Net instalment sale and loan receivables 3 387.8 2 938.7
  Provision for doubtful debts (532.7) (395.8)
    2 855.1 2 542.9
  Other receivables 88.6 72.7
    2 943.7 2 615.6
  The credit terms of instalment sale and loan receivables range from 6 to 36 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. Trade and other payables    
  Trade payables 84.8 59.6
  Accruals and other payables 142.9 107.3
  Due to reinsurers 105.3 102.7
  Insurance provisions 71.1 32.8
    404.1 302.4
       
6. Cash generated from operations    
  Operating profit 840.3 930.4
  Adjusted for:    
    Share-based payment 10.6 6.7
    Depreciation 45.8 40.9
    Surplus on disposal of property, plant and equipment (3.6) (4.5)
    Movement in provision for doubtful debts 136.9 18.3
    Movement in retirement benefits provision (3.8) (9.9)
    Movement in other provisions 30.4 14.0
    1 056.6 995.9
  Changes in working capital: (386.9) (439.7)
  Decrease/(Increase) in inventories 4.1 (1.9)
  Increase in trade and other receivables (460.6) (440.3)
  Increase in trade and other payables 69.6 2.5
       
    669.7 556.2
       
7. Net cash outflow from financing activities    
  Purchase of own shares (51.3) (162.4)
  Dividends paid (284.3) (262.7)
  Proceeds on sale of own shares 1.1 21.8
  Increase in long-term borrowings 100.0 –
  Repayment of finance lease liability – (1.0)
    (234.5) (404.3)
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