Business review
six year financial review
| Increase/ (decrease) |
2016 | 2015 | 2014 | *2013 | *2012 | *2011 | |
| Summarised results for the year | 2016 vs 2015 | R’000 | R’000 | R’000 | R’000 | R’000 | R’000 |
| Revenue | 6,0% | 9 818 717 | 9 266 251 | 8 530 237 | 7 832 911 | 7 223 863 | 6 542 321 |
|---|---|---|---|---|---|---|---|
| Operating profit | 10,9% | 564 450 | 509 072 | 282 276 | 371 624 | 371 232 | 319 019 |
| Net financing cost | |||||||
| Current and long-term liabilities | 52,3% | (112 825) | (74 064) | (57 809) | (46 717) | (1 855) | (16 081) |
| Debt portion of preference share capital |
– | – | – | – | – | (22 007) | (21 359) |
| Profit before tax from continuing operations | 3,8% | 451 625 | 435 008 | 224 467 | 324 907 | 347 370 | 281 579 |
| Taxes | 13,7% | (113 992) | (100 286) | (49 791) | (99 022) | (137 654) | (97 534) |
| Share of profit of joint ventures | 30,4% | 14 268 | 10 939 | 14 306 | 13 974 | – | – |
| Profit after tax from discontinued operations | – | – | – | – | – | – | – |
| Non-controlling interest | (121,2%) | (995) | 4 684 | (2 316) | (1 233) | (4 426) | (4 446) |
| Profit attributable to equity holders of the parent | 0,2% | 350 906 | 350 345 | 186 666 | 238 626 | 205 290 | 179 599 |
| Headline earnings attributable to equity holders of the parent | 11,7% | 356 594 | 319 343 | 187 464 | 214 894 | 207 800 | 175 177 |
| Normalised earnings | 2015 R’000 |
2014 R’000 |
2013 R’000 |
2012 R’000 |
2011 R’000 |
||
| Operating profit | 564 450 | 509 072 | 282 276 | 371 624 | 371 232 | 319 019 | |
|---|---|---|---|---|---|---|---|
| Adjusted for exceptional items: | |||||||
| (Profit)/loss on sale and scrapping of property plant and equipment and other assets | (20 869) | (38 950) | 5 102 | (11 680) | (878) | (7 277) | |
| Gain on fair valuing of existing investment in joint venture due to acquiring control | – | – | – | (16 747) | – | – | |
| Discount on acquisition of PPE by Clover Waters through issue of shares | – | (20 716) | – | – | – | ||
| Bargain purchase at acquisition of stake in Clover Good Hope | (1 721) | ||||||
| Retrenchment costs | 8 493 | 8 156 | 7 174 | 17 184 | 3 629 | 6 628 | |
| Legal and professional services costs associated with the listing | – | 75 | 141 | 49 | – | 8 499 | |
| Release of foreign currency translation reserve in abandonment of foreign operations | 28 366 | ||||||
| Other restructuring cost | – | 241 | 8 721 | 18 517 | 5 944 | 1 780 | |
| Normalised operating profit | 578 719 | 478 594 | 282 698 | 378 947 | 379 927 | 328 649 | |
| Net financing cost | (112 825) | (74 064) | (57 809) | (46 716) | (23 862) | (37 440) | |
| Tax expense | |||||||
| Total tax expense | (113 992) | (100 286) | (49 791) | (99 022) | (137 654) | (97 534) | |
| Other non-recurring tax adjustments | – | – | – | 18 254 | – | ||
| Taxation adjustment on exceptional items | (2 466) | 5 576 | (4 286) | (8 453) | (2 745) | (1 845) | |
| Share of profit of joint ventures after tax | 14 268 | 10 939 | 14 306 | 13 974 | – | – | |
| Non-controlling interest | (995) | 4 684 | (2 316) | (1 233) | (4 426) | (4 446) | |
| Non-controlling interest’s portion in discount on acquisition of PPE by Clover Waters through issue of shares | – | – | 6 215 | – | – | – | |
| Non-controlling interest’s portion of restructuring cost of subsidiary | – | – | (741) | – | – | – | |
| Normalised profit attributable to equity holders of the parent | 362 709 | 325 443 | 188 276 | 237 497 | 229 493 | 187 384 |
* From 2014 all joint ventures were equity accounted. The figures for 2013 were restated to show this effect, the figures from 2011 to 2012 have not been restated.
| 2016 R’000 |
2015 R’000 |
2014 R’000 |
**2013 R’000 |
**2012 R’000 |
**2011 R’000 |
|
| Dividends | ||||||
| Equity dividends – ordinary shares | 108 755 | 71 624 | 69 342 | 41 912 | 53 734 | 58 720 |
| Preference dividends recognised as interest | – | – | – | 20 346 | 22 007 | 21 359 |
| Earnings and dividends per share | Cents | Cents | Cents | Cents | Cents | Cents |
| Equity dividends per ordinary share – Interim | 24,21 | 22,6 | 16,0 | 10,0 | 15,0 | 10,0 |
|---|---|---|---|---|---|---|
| Equity dividends per ordinary share – Final | 40,94 | 33,4 | 16,0 | 22,0 | 13,4 | 15,0 |
| Preference dividend recognised as interest per preference share | – | – | – | 22,7 | 24,6 | 23,9 |
| Earnings per ordinary share | 185,9 | 190,4 | 102,3 | 133,1 | 114,6 | 116,7 |
| Diluted earnings per ordinary share | 181,8 | 182,0 | 97,3 | 123,8 | 107,4 | 108,9 |
| Headline earnings per ordinary share | 188,9 | 173,6 | 102,7 | 119,9 | 116,0 | 113,8 |
| Diluted headline earnings per ordinary share | 184,7 | 165,9 | 97,8 | 111,5 | 108,7 | 106,2 |
| Normalised earnings per share, calculated by dividing the normalised profit by the weighted average number of ordinary shares | 192,2 | 176,9 | 103,2 | 132,5 | 128,1 | 121,8 |
| Summarised statement of financial position | R’000 | R’000 | R’000 | R’000 | R’000 | R’000 |
| Non-current assets | 2 972 730 | 2 752 656 | 2 302 052 | 1 997 482 | 1 526 306 | 1 361 355 |
|---|---|---|---|---|---|---|
| Deferred taxation asset | 37 019 | 32 696 | 8 919 | 6 722 | 492 | 3 262 |
| Current assets | 2 856 294 | 2 689 485 | 2 298 621 | 2 413 733 | 2 336 745 | 2 180 874 |
| Total assets | 5 866 043 | 5 474 837 | 4 609 592 | 4 417 937 | 3 863 543 | 3 545 491 |
| Shareholders’ funds | 2 865 412 | 2 571 338 | 2 252 270 | 2 113 116 | 1 894 244 | 1 742 362 |
| Non-controlling interest | 23 305 | 13 510 | 20 471 | 2 309 | 1 796 | 9 443 |
| Non-current portion of interest-bearing borrowings | 931 455 | 681 601 | 662 357 | 666 640 | 21 686 | 432 833 |
| Non-current portion of provisions | 73 474 | 74 901 | 67 615 | 60 814 | 61 637 | 62 522 |
| Non-current portion of trade and other payables | 19 311 | 21 459 | 4 351 | 9 267 | 6 904 | 13 357 |
| Other non-current financial liabilities | 2 199 | 2 716 | – | – | – | – |
| Deferred taxation liability | 192 358 | 188 253 | 179 023 | 137 313 | 116 950 | 32 015 |
| Current portion of interest-bearing borrowings | 343 015 | 573 576 | 214 495 | 172 646 | 421 376 | 173 828 |
| Current liabilities excluding interest-bearing borrowings | 1 415 514 | 1 350 199 | 1 209 010 | 1 255 832 | 1 338 950 | 1 079 131 |
| Total equity and liabilities | 5 866 043 | 5 474 837 | 4 609 592 | 4 417 937 | 3 863 543 | 3 545 491 |
| Net assets | 2 888 717 | 2 584 848 | 2 272 741 | 2 115 425 | 1 896 040 | 1 751 805 |
| Replacement value of property, plant and machinery* | 9 116 408 | 7 577 153 | 7 577 153 | 6 106 300 | 5 746 800 | 5 445 700 |
| Number of shares in issue | 2016 | 2015 | 2014 | *2013 | *2012 | *2011 |
| Number of ordinary shares in issue at year-end | 190 314 350 | 187 731 138 | 182 478 589 | 181 218 149 | 179 111 867 | 179 111 867 |
|---|---|---|---|---|---|---|
| Weighted average number of ordinary shares | 188 733 409 | 183 989 596 | 182 478 589 | 179 267 674 | 179 111 867 | 153 882 447 |
| Weighted average number of ordinary shares for calculation of diluted earnings | 193 021 978 | 192 466 775 | 191 767 408 | 192 750 186 | 191 127 152 | 164 890 519 |
| Number of preference shares in issue at year-end | – | – | – | – | 89 442 022 | 89 442 022 |
| Weighted average number of preference shares | – | – | – | – | 89 442 022 | 89 442 022 |
| Cash flow | R’000 | R’000 | R’000 | R’000 | R’000 | R’000 |
| Cash flow from operating activities | 673 448 | 160 185 | 403 067 | 219 198 | 417 910 | 256 927 |
|---|---|---|---|---|---|---|
| Cash (used in)/from investment activities | (332 629) | (556 822) | (351 734) | (515 811) | (256 150) | (253 323) |
| Cash flow/(outflow) from financing activities | (212 426) | 218 097 | (97 780) | 297 159 | (272 951) | 391 333 |
| Cash flow from operating activities per share (cents) | 356,8 | 87,1 | 220,9 | 122,3 | 233,3 | 167 |
| Ratios and returns | % | % | % | % | % | % |
| Operating profit to revenue | 5,7 | 5,5 | 3,3 | 4,7 | 5,1 | 4,9 |
|---|---|---|---|---|---|---|
| Normalised operating profit | 5,9 | 5,2 | 3,3 | 4,8 | 5,3 | 5 |
| Return on net assets | 13,2 | 13,5 | 8,6 | 13,1 | 14,9 | 15 |
| Return on net assets excluding exceptional items | 13,5 | 12,7 | 8,6 | 13,4 | 15,2 | 15,4 |
| Return on equity holders’ funds | 12,9 | 14,5 | 8,6 | 11,9 | 11,3 | 12,9 |
| Return on equity holders’ funds excluding exceptional items | 13,3 | 13,5 | 8,6 | 11,9 | 12,6 | 13,7 |
| Gearing percentage (net of cash) | 23,2 | 30,2 | 9,8 | 6,4 | (14,2) | (12,4) |
| Effective tax rate | 24,5 | 22,5 | 20,9 | 29,3 | 39,6 | 34,6 |
| Times | Times | Times | Times | Times | Times | |
| Net asset turn | 4,5 | 5,0 | 5,6 | 6,2 | 6,8 | 8,3 |
|---|---|---|---|---|---|---|
| Current ratio | 1,6 | 1,4 | 1,6 | 1,7 | 1,3 | 1,7 |
| Employees statistics | Number | Number | Number | Number | Number | Number |
| Average number of employees | 8 456 | 7 177 | 6 393 | 6 519 | 6 555 | 6 353 |
|---|
| R’000 | R’000 | R’000 | R’000 | R’000 | R’000 | |
| Revenue per employee | 1 161,2 | 1 291,1 | 1 334.3 | 1 201.6 | 1 102 | 1 030 |
|---|---|---|---|---|---|---|
| Operating profit per employee | 66,8 | 70,9 | 44,2 | 57,0 | 57 | 50 |
| Normalised operating profit | 68,4 | 66,7 | 44,2 | 58,0 | 58 | 52 |
| Average net assets per employee | 323,6 | 338,4 | 343,2 | 307,7 | 278 | 223 |
* From 2014 all joint ventures were equity accounted. The figures for 2013 were restated to show this effect. The figures from 2011 to 2012 have not been restated.
A list of all definitions used in the above calculation is set out here.
