| | 1. | Basis of accounting
|
| | These consolidated interim financial statements are prepared in accordance with International Financial Reporting Standards
("IFRS"), specifically IAS 34 on interim financial reporting. The Group is adopting IFRS for the first time which requires changes in accounting policies and the use of transitional arrangements under IFRS. These have all been detailed in a separate section in this announcement entitled: "Compliance with International Financial Reporting Standards". |
| | | 30 Sept | 30 Sept | 31 March | |
| | | 2005 | 2004 | 2005 | |
| | | Rm | Rm | Rm | |
| | | | | Unaudited | Restated | Restated | |
| 2. | Trading revenue | | | | |
| | Merchandise sales | 724.0 | 632.5 | 1 351.9 | |
| | Other trading revenue | 608.2 | 554.1 | 1 159.3 | |
| | Finance charges earned | 313.9 | 292.5 | 605.0 | |
| | Net insurance income | 186.6 | 169.2 | 357.6 | |
| | | Gross insurance income | 261.1 | 234.5 | 501.0 | |
| | | Reinsurance premiums | (74.5) | (65.3) | (143.4) | |
| | Fees for services rendered | 107.7 | 92.4 | 196.7 | |
| |
| | | | |
|
| | | | 1 332.2 | 1 186.6 | 2 511.2 | |
| 3. | Bad debts and impairment provision
| | | | |
| | Bad debts, bad debt recoveries and | | | | |
| | repossession losses | 46.4 | 48.1 | 125.3 | |
| | | Movement in impairment provision | 4.3 | (10.5) | (23.7) | |
| | | | 50.7 | 37.6 | 101.6 | |
| 4. | Net finance costs
| | | | |
| | Interest paid: | | | | |
| | – Fellow subsidiary | – | 32.8 | 32.8 | |
| | – Bank and loans | 5.8 | 7.4 | 17.8 | |
| | – Other | 2.5 | – | 4.2 | |
| | Interest received: | | | | |
| | – Bank | (3.0) | (9.8) | (12.0) | |
| | | – Other | – | – | (0.1) | |
| | | | 5.3 | 30.4 | 42.7 | |
| 5. | Trade and other receivables
| | | | |
| | Instalment sale and loan receivables | 2 734.7 | 2 599.5 | 2 677.1 | |
| | Provision for unearned finance charges and | | | | |
| | unearned maintenance income | (452.8) | (365.8) | (414.4) | |
| | Impairment provision | (389.7) | (398.6) | (385.4) | |
| | Provision for unearned insurance premiums | (159.8) | (143.0) | (154.4) | |
| | | Unearned insurance premiums | (263.9) | (235.1) | (254.9) | |
| | | Less: reinsurer's technical reserves | 104.1 | 92.1 | 100.5 | |
| | | | | | | |
| | Net instalment sale and loan receivables | 1 732.4 | 1 692.1 | 1 722.9 | |
| | | Other receivables | 47.5 | 49.8 | 27.7 | |
| | | | 1 779.9 | 1 741.9 | 1 750.6 | |
| | | 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. | | | | |
| 6. | Material capital commitments
| | | | |
| | | There were no material capital commitments
contracted for or authorised and contracted at the end of the period under review. | | | | |
| 7. | Cash flow from trading
| | | | |
| | Operating profit | 251.0 | 270.0 | 582.7 | |
| | Adjusted for: | | | | |
| | | Depreciation and amortisation | 21.5 | 20.9 | 36.9 | |
| | | Share-based payment | 58.4 | – | 10.8 | |
| | | Profit on sale of property, plant and equipment | (2.5) | (1.9) | (3.9) | |
| | | Movement in debtors impairment provision | 4.3 | (10.5) | (23.7) | |
| | | Movement in retirement benefits provisions | 1.8 | 1.8 | (2.8) | |
| | | | Movement in other provisions | 3.4 | 14.8 | 10.7 | |
| | | | 337.9 | 295.1 | 610.7 | |
| 8. | Working capital movement
| | | | |
| | Increase in inventory | (94.4) | (19.1) | (5.5) | |
| | (Increase)/decrease in trade and other receivables | (47.8) | 20.4 | 21.9 | |
| | | Increase/(decrease) in trade and other payables | 108.3 | 20.9 | (1.9) | |
| |
| | (33.9) | 22.2 | 14.5 |
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