Unaudited Interim Results
for the six months ended 30 September 2008

ABRIDGED NOTES TO THE FINANCIAL STATEMENTS


1. Basis of accounting
  These consolidated financial statements are prepared in accordance with International Financial Reporting Standards, specifically IAS 34 Interim Financial Reporting, and the accounting policies applied are consistent with the prior year.
    30 Sept 2008 30 Sept 2007 31 Mar 2008  
    Rm Rm Rm  
    Unaudited Unaudited Audited  
2. Debtor costs        
  Bad debts, bad debt recoveries and repossession losses 50.7 41.6 172.1  
  Movement in doubtful debts provision 91.9 41.1 18.3  
    142.6 82.7 190.4  
3. Net finance costs        
  Interest paid 45.2 23.4 68.2  
  Interest earned (4.2) (2.6) (6.5)  
  Forward exchange contracts (2.6) 4.4 (4.9)  
    38.4 25.2 56.8  
4. Trade and other receivables        
  Instalment sale and loan receivables 3 738.1 3 368.7 3 539.8  
  Provision for unearned finance charges and initiation fees (74.6) (213.1) (119.0)  
  Provision for unearned maintenance income (191.4) (186.8) (191.6)  
  Provision for unearned insurance premiums (318.4) (245.0) (290.5)  
  Net instalment sale and loan receivables 3 153.7 2 723.8 2 938.7  
  Provision for doubtful debts (487.7) (418.6) (395.8)  
    2 666.0 2 305.2 2 542.9  
  Other receivables 86.0 22.7 72.7  
    2 752.0 2 327.9 2 615.6  
  The credit terms of instalment sale and loan receivables range from 6 to 36 months (2007: 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 152.3 131.6 59.6  
  Accruals and other payables 119.7 110.9 107.3  
  Due to reinsurers 108.6 86.9 102.7  
  Insurance provisions 34.4 28.4 32.8  
    415.0 357.8 302.4  
6. Cash generated from operations        
  Operating profit 411.0 422.6 930.4  
  Adjusted for        
     Share-based payment 4.6 3.1 6.7  
     Depreciation 27.5 25.4 40.9  
     Surplus on disposal of property, plant and equipment (2.0) (2.4) (4.5)  
     Movement in provision for doubtful debts 91.9 41.1 18.3  
     Movement in retirement benefits provision 2.8 1.7 (9.9)  
     Movement in other provisions 3.4 9.1 14.0  
    539.2 500.6 995.9  
  Changes in working capital (157.2) (201.6) (439.7)  
  Increase in inventories (39.0) (82.1) (1.9)  
  Increase in trade and other receivables (227.6) (182.3) (440.3)  
  Increase in trade and other payables 109.4 62.8 2.5  
           
    382.0 299.0 556.2  
7. Net cash outflow from financing activities        
  Purchase of own shares (51.3) (162.4) (162.4)  
  Dividends paid (157.8) (134.1) (262.7)  
  Proceeds on sale of own shares 1.1 3.4 21.8  
  Increase in long-term interest-bearing borrowings 100.0 – –  
  Repayment of finance lease liability – (1.0) (1.0)  
    (108.0) (294.1) (404.3)  
           
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