| 1. |
Basis of accounting |
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The group’s interim financial statements have been prepared in accordance with the recognition and measurement principles of International Financial Reporting Standards, including IAS 34 (Interim Financial Reporting) and in compliance with the Listings Requirements of the JSE
Limited. The accounting policies applied are consistent with those applied
in the annual financial statements for the year ended 31 March 2011. The
comparatives in the cash flow statement for September 2010 have been reclassified to exclude the short-term portion of long-term borrowings from cash and cash equivalents. |
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30 Sept |
30 Sept |
31 March |
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|
2011 |
2010 |
2011 |
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|
Rm |
Rm |
Rm |
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|
Unaudited |
Unaudited |
Audited |
| 2. |
Debtor costs |
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Bad debts, bad debt recoveries and |
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repossession losses |
49.5 |
47.9 |
336.0 |
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Movement in debtors’ impairment |
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provision |
197.9 |
158.1 |
122.9 |
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|
247.4 |
206.0 |
458.9 |
| 3. |
Net finance costs |
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Interest paid |
43.9 |
51.9 |
87.1 |
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Interest earned |
(1.3) |
(1.6) |
(3.2) |
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(Gains)/losses on forward exchange contracts |
(12.0) |
7.2 |
8.0 |
| |
|
30.6 |
57.5 |
91.9 |
| 4. |
Trade and other receivables |
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|
|
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Instalment sale and loan receivables |
5 822.4 |
5 133.4 |
5 454.7 |
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Provision for unearned finance charges and unearned maintenance income |
(281.3) |
(231.6) |
(271.4) |
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Provision for unearned initiation fees |
(105.2) |
(91.9) |
(102.6) |
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Provision for unearned insurance premiums |
(600.4) |
(498.2) |
(562.6) |
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Net instalment sale and loan receivables |
4 835.5 |
4 311.7 |
4 518.1 |
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Debtors’ impairment provision |
(956.2) |
(793.5) |
(758.3) |
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Net trade receivables |
3 879.3 |
3 518.2 |
3 759.8 |
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Other receivables |
102.9 |
92.8 |
75.2 |
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|
3 982.2 |
3 611.0 |
3 835.0 |
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The credit terms of instalment sale and loan
receivables range from 6 to 36 months (2010: 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.
The average effective interest rate on instalment sale and loan receivables is 23.1% (2010: 26.2%) and the average term of a sale is 28.1 months (2010: 27.8 months)
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| 5. |
Investments – insurance business |
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Listed: |
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|
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Equities |
369.2 |
333.6 |
365.2 |
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Fixed income securities |
510.4 |
479.7 |
491.9 |
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Unlisted: |
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|
|
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Money market investments |
295.1 |
171.1 |
240.2 |
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|
1 174.7 |
984.4 |
1 097.3 |
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Analysed as follows: |
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Non-current |
879.6 |
813.3 |
857.1 |
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Current |
295.1 |
171.1 |
240.2 |
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|
1 174.7 |
984.4 |
1 097.3 |
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Investments are classified as
available-for-sale and are reflected at fair value. Changes in fair value
are reflected in the statement of comprehensive income. |
| 6. |
Borrowings |
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|
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Unsecured long-term borrowings at interest rates linked to the 3 month JIBAR |
400.0 |
350.0 |
400.0 |
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Unsecured short-term borrowings at interest rates linked to the 3 month JIBAR |
753.0 |
623.5 |
683.0 |
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Demand loans |
353.0 |
323.5 |
433.0 |
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Current portion of fixed-term borrowings |
400.0 |
300.0 |
250.0 |
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|
|
|
|
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|
1 153.0 |
973.5 |
1 083.0 |
| 7. |
Trade and other payables |
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|
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Trade payables |
90.7 |
140.6 |
72.7 |
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Accruals and other payables |
215.8 |
174.8 |
178.1 |
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Due to reinsurers |
150.7 |
132.2 |
144.8 |
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Insurance provisions |
188.7 |
153.8 |
171.4 |
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|
645.9 |
601.4 |
567.0 |
| 8. |
Cash generated from operations |
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Operating profit |
498.5 |
468.9 |
1 052.5 |
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Adjusted for: |
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Share-based payment |
9.9 |
8.9 |
18.4 |
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Depreciation |
27.2 |
27.4 |
46.5 |
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Surplus on disposal of property, plant and equipment |
(3.2) |
(3.9) |
(7.2) |
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Movement in debtors’ impairment provision |
197.9 |
158.1 |
122.9 |
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Movement in retirement benefits provision |
4.3 |
1.0 |
7.6 |
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Movement in other provisions |
29.3 |
30.7 |
54.9 |
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|
763.9 |
691.1 |
1 295.6 |
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Changes in working capital: |
(344.5) |
(278.0) |
(518.6) |
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Increase in inventories |
(59.4) |
(61.0) |
(51.0) |
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Increase in trade and other receivables |
(342.7) |
(343.6) |
(534.4) |
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Increase in trade and other payables |
57.6 |
126.6 |
66.8 |
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|
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|
|
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|
419.4 |
413.1 |
777.0 |
| 9. |
Cash outflow from investing activities |
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|
|
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Net additions to insurance business investments |
75.4 |
39.3 |
160.4 |
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Acquisition of property, plant and equipment |
48.9 |
46.4 |
78.6 |
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Proceeds on disposal of property, plant and equipment |
(5.8) |
(5.3) |
(11.7) |
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|
118.5 |
80.4 |
227.3 |
| 10. |
Cash outflow from financing activities |
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Dividends paid |
183.2 |
157.9 |
295.6 |
| |
Proceeds on sale of own shares |
(5.1) |
(3.4) |
(3.5) |
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Increase in long-term borrowing |
– |
– |
(50.0) |
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(Increase)/decrease in short-term borrowings |
(150.0) |
– |
50.0 |
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|
28.1 |
154.5 |
292.1 |
