Unaudited Interim Results

for the six months ended 30 September 2007

Notes to the financial statements


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, and are consistent with those applied for the year ended 31 March 2007 and the six months ended 30 September 2006.

  
               
    30 Sept 2007   30 Sept 2006   31 Mar 2007  
    Rm   Rm   Rm  
    Unaudited   Unaudited   Audited  
2.

Cost of merchandise sales

            
  Purchases 670.9   579.4   1 211.7  
  Movement in inventory (80.3)   (31.2)   (17.7)  
  Cost of merchandise sales 590.6   548.2   1 194.0  
  Merchandise gross profit 306.2   286.2   614.8  
3.

Debtor costs

            
  Bad debts, bad debt recoveries and repossession losses 41.6   42.6   138.4  
  Movement in doubtful debts provision 41.1   28.1   9.5  
    82.7   70.7   147.9  
4.

Net finance costs/(income)

            
  Interest paid:            
  — Bank and loans 23.4   6.9   26.9  
  — Other —   —   2.7  
    23.4   6.9   29.6  
  Interest received:            
  — Bank (2.6)   (1.3)   (2.7)  
  — Other —   —   (1.3)  
    (2.6)   (1.3)   (4.0)  
  Forward exchange contracts 4.4   (8.9)   (13.2)  
    25.2   (3.3)   12.4  
5.

Trade and other receivables

            
  Instalment sale and loan receivables 3 368.7   3 069.8   3 317.0  
  Provision for unearned finance charges (213.1)   (354.4)   (389.3)  
  Provision for unearned maintenance income (186.8)   (174.4)   (183.4)  
  Provision for unearned insurance premiums (245.0)   (192.5)   (214.3)  
     Unearned insurance premiums (393.9)   (311.8)   (346.7)  
     Less: re-insurer’s share of unearned premiums 148.9   119.3   132.4  
               
  Net instalment sale and loan receivables 2 723.8   2 348.5   2 530.0  
  Provision for doubtful debts (418.6)   (396.1)   (377.5)  
    2 305.2   1 952.4   2 152.5  
  Other receivables 22.7   36.7   35.2  
    2 327.9   1 989.1   2 187.7  
  The credit terms of instalment sale and loan receivables range from 6 to 36 months ( 2006: 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.

Trade and other payables

            
  Trade payables 131.6   129.2   91.6  
  Accruals and other payables 110.9   109.6   94.0  
  Due to reinsurers 86.9   71.4   76.1  
  Insurance provisions 28.4   24.6   26.0  
    357.8   334.8   287.7  
7.

Material capital commitments

  
  There were no material capital commitments contracted for or authorised and contracted for at the end of the period under review.  
8.

Cash generated from operations

            
  Operating profit 422.6   368.8   859.9  
  Adjusted for:            
     Depreciation and amortisation 25.4   23.0   38.9  
     Share-based payment 3.1   1.4   4.0  
     Surplus on disposal of property,
   plant and equipment		 (2.4)   (2.4)   (3.8)  
     Movement in provision for doubtful debts 41.1   28.1   9.5  
     Movement in retirement benefits provision 1.7   1.8   (8.2)  
     Movement in other provisions 9.1   5.1   11.1  
  Changes in working capital: (201.6)   (99.2)   (319.9)  
  Increase in inventory (82.1)   (31.8)   (20.1)  
  Increase in trade and other receivables (182.3)   (114.2)   (295.3)  
  Increase in trade and other payables 62.8   46.8   (4.5)  
               
    299.0   326.6   591.5  
9.

Net cash outflow from financing activities

            
  Purchase of treasury shares (162.4)   (213.4)   (213.5)  
  Dividends paid (134.1)   (126.7)   (231.8)  
  Other 2.4   3.1   6.0  
    (294.1)   (337.0)   (439.3)  
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