Abridged financial information
 

Audited financial summary

 
 

Condensed group income statement
for the year ended 30 September 

  Notes     2011  
Rm  
  %  
change  
Restated  
2010  
Rm  
Revenue       10 922,7     2   10 675,1  
Earnings before interest, taxation, depreciation, amortisation, other income and dividends       1 472,7     12   1 320,6  
Other income       40,5       54,9  
Earnings before interest, taxation, depreciation and amortisation (EBITDA)  1     1 513,2     10   1 375,5  
Depreciation and amortisation       121,8     8   112,7  
Operating profit       1 391,4     10   1 262,8  
Net interest and dividend income   2     40,9     (31)  59,2  
Abnormal items   3     346,4       (34,0) 
Profit before taxation       1 778,7     38   1 288,0  
Taxation       425,9     13   376,6  
Profit after taxation       1 352,8     48   911,4  
Profit attributable to:              
Non-controlling interests       15,7     31   12,0  
Equity holders of Reunert       1 337,1     49   899,4  
Basic earnings per share (cents)  5 & 6     809,0     61   503,3  
Diluted earnings per share (cents)  5 & 6     803,3     61   498,8  
Headline earnings per share (cents)  5 & 6     598,3     18   505,5  
Diluted headline earnings per share (cents)  5 & 6     594,1     19   501,1  
Normalised headline earnings per share (cents)  5 & 6     590,0     14   515,7  
Normalised diluted headline earnings per share (cents)  5 & 6     585,9     15   511,1  
Cash dividend per ordinary share declared (cents)      330,0     15   287,0  
Taxation rate including abnormal item       23,9     18   29,2  
Taxation rate excluding abnormal item       29,7     4   28,5  
EBITDA as a % of revenue       13,9     8   12,9  


Condensed group statement of comprehensive income
for the year ended 30 September 

    2011  
Rm  
  2010  
Rm  
Profit after taxation     1 352,8     911,4  
Other comprehensive income, net of taxation:          
Losses arising from translating the financial results of foreign subsidiaries     –     (1,9) 
Gain on disposal of investment     (348,6)    –  
Effective portion of gains on hedging instruments     4,2     6,0  
Income tax relating to components of other comprehensive income     (1,2)    1,2  
Total comprehensive income     1 007,2     916,7  
Total comprehensive income attributable to:          
Non-controlling interests     15,7     12,0  
Equity holders of Reunert     991,5     904,7  

 

Condensed group balance sheet
as at 30 September 

  Notes     2011  
Rm  
  Restated  
2010  
Rm  
Non-current assets            
Property, plant and equipment and intangible assets       702,0     635,3  
Goodwill   7     654,9     492,1  
Investments and loans   8     46,1     44,3  
Accounts receivable       965,9     846,0  
Deferred taxation       32,2     40,4  
Non-current assets       2 401,1     2 058,1  
Current assets            
Inventory and contracts in progress       885,5     863,3  
Accounts receivable and derivative assets       2 176,7     2 359,8  
Investment       –     793,5  
Cash and cash equivalents       643,0     1 878,1  
Current assets       3 705,2     5 894,7  
Total assets       6 106,3     7 952,8  
Equity attributable to equity holders of Reunert            
Ordinary       3 879,7     4 432,4  
Preference       0,7     0,7  
      3 880,4     4 433,1  
Non-controlling interests       55,2     37,9  
Total equity       3 935,6     4 471,0  
Non-current liabilities            
Deferred taxation       99,6     122,0  
Long-term borrowings   9     0,7     710,9  
Non-current liabilities       100,3     832,9  
Current liabilities            
Accounts payable, derivative liabilities, provisions and taxation       1 984,9     1 956,6  
Bank overdrafts and short-term portion of long-term borrowings (including finance leases)      85,5     692,3  
Current liabilities       2 070,4     2 648,9  
Total equity and liabilities       6 106,3     7 952,8  

 

Condensed group statement of changes in equity
for the year ended 30 September 

    2011  
Rm  
  2010  
Rm  
Share capital and premium          
Balance at the beginning of the year     140,9     116,0  
Issue of shares     59,4     24,9  
Balance at the end of the year     200,3     140,9  
Share-based payment reserve          
Balance at the beginning of the year     732,4     679,6  
Share-based payment expense and deferred taxation thereon     18,6     52,8  
Balance at the end of the year     751,0     732,4  
Fair value adjustment reserve1          
Balance at the beginning of the year     345,6     338,4  
Other comprehensive income     (345,6)    7,2  
Balance at the end of the year     –     345,6  
Equity transaction with BEE partner     (35,3)    (35,3) 
BEE shares2     (276,1)    (276,1) 
Treasury shares3          
Balance at the beginning of the year     (125,7)    –  
Purchases made during the year     (1 127,9)    (125,7) 
Balance at the end of the year     (1 253,6)    (125,7) 
Non-distributable reserves          
Balance at the beginning of the year     10,0     11,9  
Other comprehensive income     –     (1,9) 
Transfer to retained earnings     (8,9)    –  
Balance at the end of the year     1,1     10,0  
Retained earnings          
Balance at the beginning of the year     3 641,3     3 199,9  
Profit after taxation attributable to equity holders of Reunert     1 337,1     899,4  
Transfer from non-distributable reserves     8,9     –  
Taxation charge on transaction with BEE partner     –     (2,0) 
Cash dividends declared and paid     (494,3)    (456,0) 
Balance at the end of the year     4 493,0     3 641,3  
Equity attributable to equity holders of Reunert     3 880,4     4 433,1  
Non-controlling interests          
Balance at the beginning of the year     37,9     26,7  
Share of total comprehensive income     15,7     12,0  
Dividends declared and paid     (4,2)    (0,8) 
Non-controlling interest introduced     2,0     –  
Other     3,8     –  
Balance at the end of the year     55,2     37,9  
Total equity at end of the year     3 935,6     4 471,0  
1 This reserve related to fair value adjustments on financial assets classified as “available-for-sale” financial assets.
2 These are shares held by Bargenel Investment Limited (Bargenel), a company sold by Reunert to an accredited BEE partner in 2007. Until the amount owing by the BEE partner is repaid to Reunert, Bargenel is to be consolidated by the group as the significant risks and rewards of ownership of the equity have not passed to the BEE partner.
3 Commencing in August 2010, a group subsidiary purchased Reunert shares on the open market. Up to 30 September 2010, 2,1 million shares had been bought at an average price of R59,18 per share. No further purchases were made after 4 February 2011 at which time a total of 19,2 million shares had been bought at an average price of R65,37 per share.

 

Condensed group cash flow statement

for the year ended 30 September  

    2011  
Rm  
  Restated  
2010  
Rm  
EBITDA     1 513,2     1 375,5  
Decrease in net working capital     47,7     318,3  
Other (net)    (1,6)    26,3  
Cash generated from operations     1 559,3     1 720,1  
Net interest and dividend income     40,9     59,2  
Taxation paid     (438,8)    (407,9) 
Dividends paid (including to non-controlling interests)    (498,5)    (456,8) 
Net cash flows from operating activities     662,9     914,6  
Net cash flows from investing activities     484,7     (313,3) 
Capital expenditure     (99,4)    (148,9) 
Net cash flows from acquisition of businesses     (213,6)    (180,3) 
Net proceeds on disposal of investment in NSN     791,2     –  
Other     6,5     15,9  
Net cash flows from financing activities     (1 768,9)    (103,8) 
Shares issued     59,4     24,9  
Shares repurchased during the period     (1 127,9)    (125,7) 
Repayment of Quince long-term borrowings     (699,9)    –  
Other     (0,5)    (3,0) 
(Decrease)/increase in net cash resources     (621,3)    497,5  
Net cash resources at the beginning of the year     1 185,9     688,4  
Net cash resources at the end of the year     564,6     1 185,9  
Cash and cash equivalents     643,0     1 878,1  
Bank overdrafts and other short term borrowings     (78,4)    (692,2) 
Net cash resources     564,6     1 185,9