Notes to the annual financial statements

for the year ended 30 September

 
 
    Group   Company
    2010  
Rm  
  2009  
Rm  
  2010  
Rm  
  2009  
Rm  
2.   OPERATING PROFIT BEFORE INTEREST, DIVIDENDS AND ABNORMAL ITEMS                
  Operating profit before interest, dividends and abnormal items is stated after:                
  Administration, management and other fees   65,0     41,9     23,8     23,6  
  Auditors' remuneration:                
  Audit fees   14,6     12,1     6,3     5,1  
  Other fees   1,2     1,1     0,6     0,8  
  Expenses   0,1     0,1     —     —  
    15,9     13,3     6,9     5,9  
  Depreciation:                
  Buildings   7,6     12,7     5,9     10,4  
  Plant and equipment   81,8     62,9     27,5     15,5  
  Vehicles   7,0     6,8     2,5     2,3  
    96,4     82,4     35,9     28,2  
  Impairment of plant and equipment   5,6     —     5,6     —  
  Amortisation:                
  Intangible assets   16,3     14,0     1,9     4,0  
  Bad debt expense   87,6     162,3     9,4     8,1  
  Rental income from investment properties (included in revenue)  2,7     2,8     18,0     —  
  Direct operating expenses arising from investment properties that generated rental income   1,4     1,7     6,5     —  
  Compensation income received from NSN on cancelled contracts   —     (12,5)    —     (12,5) 
  Net realised losses/(gains) on currency exchange differences   23,5     (60,1)    21,8     6,0  
  Net unrealised losses/(gains) on currency exchange differences   16,3     19,3     18,1     (2,3) 
  Net realised (gains)/losses on fair value adjustments to derivative instruments   (8,0)    22,2     (7,8)    3,6  
  Net unrealised losses/(gains) on fair value adjustments to derivative instruments   39,7     (14,5)    (2,1)    6,2  
    71,5     (33,1)    30,0     13,5  
  Net losses on financial assets and liabilities at FVTPL                
  – held for trading   10,9     2,4     10,9     1,8  
  Income from subsidiaries:                
  Fees (included in revenue from 2010)          1,3     5,0  
  Rental (included in revenue)          17,3     8,9  
            18,6     13,9  
  Operating lease charges:                
  Land and buildings   46,1     56,9     16,9     33,1  
  Vehicles and other   0,6     1,4     —     0,4  
    46,7     58,3     16,9     33,5  
  Research and development expenditure:                
  Financed by revenue from customers   45,9     31,7     4,5     —  
  Not financed by revenue from customers   24,1     26,3     5,9     2,4  
    70,0     58,0     10,4     2,4  
  Net (loss)/profit on disposal of property, plant, equipment and intangible assets   (0,1)    3,9     (0,5)    1,8  
  Government grants   (0,7)    (2,0)    (0,2)    —  
  Staff costs:1                
  Salaries and wages   1 308,5     1 087,4     —     —  
  Pension fund contributions   14,7     11,0     —     —  
  Provident fund contributions   78,3     71,0     —     —  
  Other staff costs   70,2     57,6     —     —  
    1 471,7     1 227,0     —     —  
  Share–based payment expense in respect of the group's share option schemes (refer to note 19 16,5     15,0     2,0     4,0  
  Compensation of key management personnel                
  The remuneration paid to directors and other key management personnel of Reunert during the year was as follows:                
  Short-term benefits   55,6     43,2     —     —  
  Post-employment benefits   2,5     3,4     —     —  
  Share-based payments   4,1     5,6     —     —  
    62,2     52,2     —     —  
  The remuneration of directors and key management personnel is determined by the remuneration committee and is based on market trends and the performance of individuals.              
  Write-down of inventory (refer to note 17 4,2     47,6     3,9     1,2  
  1 11% of the increase in gross remuneration and service benefits was due to the acquisition of Nashua Communications.