for the year ended 30 September

Notes to the annual financial statements

 
      Group   Company
      2011  
Rm  
  Restated  
2010  
Rm  
  2011  
Rm  
  2010  
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     65,3     65,0     30,3     23,8  
  Auditors’ remuneration:                  
  Audit fees     15,0     14,6     6,3     6,3  
  Other fees     2,5     1,2     0,3     0,6  
  Expenses     0,4     0,1     0,1     –  
      17,9     15,9     6,7     6,9  
  Impairment of plant and equipment     –     5,6     –     5,6  
  Depreciation:                  
  Buildings     5,7     7,6     7,5     5,9  
  Plant and equipment     83,3     81,8     23,7     27,5  
  Vehicles     6,3     7,0     2,1     2,5  
      95,3     96,4     33,3     35,9  
  Amortisation:                  
  Intangible assets     26,5     16,3     8,0     1,9  
  Bad debt expense     64,5     103,2     1,4     9,4  
  Bad debt recovery     (21,5)    (15,6)    (9,0)    –  
  Rental income from investment properties (included in revenue)    1,4     2,7     19,7     18,0  
  Direct operating expenses arising from investment properties that generated rental income     0,6     1,4     7,9     6,5  
  Net realised (gains)/losses on currency exchange differences     (4,5)    23,5     (3,1)    21,8  
  Net unrealised losses on currency exchange differences     9,0     16,3     11,9     18,1  
  Net realised losses/(gains) on fair value adjustments to derivative instruments     7,4     (8,0)    0,5     (7,8) 
  Net unrealised (gains)/losses on fair value adjustments to derivative instruments     (18,5)    39,7     (8,9)    (2,1) 
      (6,6)    71,5     0,4     30,0  

 

        Group   Company
    Notes     2011  
Rm  
  2010  
Rm  
  2011  
Rm  
  2010  
Rm  
  Net losses on financial assets and liabilities at FVTPL – held for trading       6,5     10,9     –     10,9  
  Income from subsidiaries included in revenue:                    
  Fees               0,3     1,3  
  Rental               21,3     17,3  
                21,6     18,6  
  Operating lease charges:                    
  Land and buildings       36,2     46,1     8,1     16,9  
  Vehicles and other       0,5     0,6     0,7     –  
        36,7     46,7     8,8     16,9  
  Research and development expenditure:                    
  Financed by revenue from customers       37,3     45,9     2,2     4,5  
  Not financed by revenue from customers       14,4     24,1     5,2     5,9  
        51,7     70,0     7,4     10,4  
  Profit/(loss) on disposal of plant, equipment and intangible assets       2,1     (0,1)    0,1     (0,5) 
  Government grants       0,2     0,7     0,2     0,2  
  Staff costs:                    
  Salaries and wages       1 370,3     1 308,5     –     –  
  Pension fund contributions       25,0     14,7     –     –  
  Provident fund contributions       82,6     78,3     –     –  
  Other staff costs       90,6     70,2     –     –  
        1 568,5     1 471,7     –     –  
  Share-based payment expense in respect of the group’s share option scheme   19     21,2     16,5     0,3     2,0  
  Compensation of key management personnel1                    
  The remuneration paid to directors and other key management personnel of Reunert during the year was as follows:                    
  Short-term benefits       17,4     17,7     32,6     27,9  
  Post-employment benefits       1,0     0,9     1,9     1,5  
  Termination benefits       12,0     10,2     13,7     10,2  
  Share-based payments       3,0     1,4     5,7     3,0  
        33,4     30,2     53,9     42,6  
  The remuneration of directors and key management personnel is determined by the remuneration committee, which is based on market trends and the performance of individuals.                    
  Write-down of inventory   17     10,4     4,2     9,4     3,9  
 
1 Key management personnel of the group is considered to be the Reunert board of directors.