Notes to the summary consolidated financial statements
1. |
Basis of preparation |
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The summarised consolidated financial statements for the year ended 31 March 2015 have been prepared in accordance with the framework concepts and the measurements and recognition requirements of International Financial Reporting Standards (IFRS) and interpretations issued respectively by the International Accounting Standards Board (IASB) and the International Financial Reporting Interpretations Committee (IFRIC) of the IASB, in particular International Accounting Standard 34 Interim Financial Reporting, the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee and the Financial Pronouncements as issued by the Financial Reporting Standards Council, that are relevant to its operations and effective for annual reporting periods beginning on or after 1 April 2014, and the South African Companies Act 2008. The accounting policies applied in preparation of these summarised consolidated financial statements are in terms of IFRS and are consistent with those applied in the previous consolidated annual financial statements. The audited summarised consolidated financial statements have been prepared under the supervision of the group Financial Director, Mr M H Abdool-Samad CA(SA). The summarised consolidated financial statements were approved by the board of directors on 21 May 2015. The full consolidated annual financial statements from which these summarised consolidated financial statements were derived are available on the group’s website, www.illovosugar.com. |
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| Year ended 31 March | |||||
| 2015 | 2014 | ||||
| Rm | Rm | ||||
2. |
Net financing costs |
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| Interest paid | 362.9 | 353.5 | |||
| Less: Capitalised to property, plant and equipment | (4.0) | (20.8) | |||
| 358.9 | 332.7 | ||||
| Interest received | (13.4) | (8.3) | |||
| Foreign exchange losses | 10.3 | 12.0 | |||
| 355.8 | 336.4 | ||||
3. |
Material items |
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| Profit on disposal of property | 3.0 | 1.3 | |||
| Profit on disposal of previously impaired assets | – | 0.1 | |||
| Gain on bargain purchase | – | 2.2 | |||
| Proceeds received from insurance claim | – | 19.1 | |||
| Disposal and deregistration of businesses | – | 1.8 | |||
| 3.0 | 24.5 | ||||
4. |
Determination of headline earnings |
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| Profit attributable to shareholders of Illovo Sugar Limited | 826.4 | 916.3 | |||
| Adjusted for: | |||||
| – Profit on disposal of property | (3.0) | (1.3) | |||
| – Profit on disposal of previously impaired assets | – | (0.1) | |||
| – Gain on bargain purchase | – | (2.2) | |||
| – Proceeds received from insurance claim | – | (19.1) | |||
| – Disposal and deregistration of businesses | – | (1.8) | |||
| Total tax effect of adjustments | – | 1.4 | |||
| Total non-controlling interest effect of adjustments | 1.2 | 0.4 | |||
| Headline earnings | 824.6 | 893.6 | |||
| Number of shares in issue | (millions) | 460.7 | 460.6 | ||
| Weighted average number of shares on which headline earnings per share is based | (millions) | 460.7 | 460.5 | ||
| Headline earnings per share | |||||
| Basic | (cents) | 179.0 | 194.0 | ||
| Diluted | (cents) | 179.0 | 194.0 | ||
5. |
Distributions paid |
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| – Distribution #43 of 61.0 cents per share (final 2013) – paid 8 July 2013 | 280.9 | ||||
| – Distribution #44 of 37.0 cents per share (interim 2014) – paid 13 January 2014 | 170.4 | ||||
| – Distribution #45 of 60.0 cents per share (final 2014) – 7 July 2014 | 276.4 | ||||
| – Distribution #46 of 37.0 cents per share (interim 2015) – 12 January 2015 | 170.5 | ||||
| 446.9 | 451.3 | ||||
| In respect of the year under review, the directors declared a final capital distribution of 53.0 cents per share which will be paid to shareholders on 6 July 2015. The distribution will be regarded as a return of capital and shareholders will be liable for any potential capital gains tax consequences. No liability has been raised for this distribution in these financial statements. | |||||
6. |
Solvency ratios |
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| Net debt:equity ratio | (%) | 35.6 | 27.9 | ||
| Gearing | (%) | 26.2 | 21.8 | ||
| The net debt: equity ratio is calculated as interest-bearing liabilities, net of cash and cash equivalents, divided by total equity. | |||||
7. |
Commitments and contingencies |
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| Capital commitments | 1 868.4 | 1 042.2 | |||
| – Contracted | 326.9 | 255.1 | |||
| – Approved but not contracted | 1 541.5 | 787.1 | |||
| Lease commitments | 189.3 | 220.7 | |||
| Contingent liabilities | 155.9 | 116.5 | |||
8. |
Financial instruments |
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The fair values of financial instruments are determined using inputs that are observable, either directly (ie, as prices) or indirectly (ie, derived from prices), other than quoted prices in an active market and therefore fall into the level 2 fair value category. The fair values of non-financial assets are determined using inputs that are unobservable, using the best information available in the circumstances for using the assets and therefore fall into the level 3 fair value category. This report does not include the information required pursuant to paragraph 16A(j) of IAS 34 – Interim Financial Reporting. The full consolidated annual financial statements is available for inspection on the group's website, together with the required disclosures. |
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9. |
Post-balance sheet events |
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| No material change has taken place in the affairs of the group between the end of the financial year and the date of this report. | |||||
10. |
Segmental analysis |
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| Operating | Capital | ||||
| Revenue | profit | expenditure | |||
| Business segments | Rm | Rm | Rm | ||
| Year to 31 March 2015 | |||||
| Sugar production | 9 242.3 | 1 179.8 | 455.1 | ||
| Cane growing | 2 848.3 | 207.4 | 218.5 | ||
| Downstream and co-generation | 1 175.9 | 267.9 | 25.9 | ||
| 13 266.5 | 1 655.1 | 699.5 | |||
| Year to 31 March 2014 | |||||
| Sugar production | 9 355.7 | 1 320.3 | 480.8 | ||
| Cane growing | 2 856.2 | 388.8 | 161.8 | ||
| Downstream and co-generation | 978.2 | 177.8 | 79.4 | ||
| 13 190.1 | 1 886.9 | 722.0 | |||
| Operating | Total | Capital | |||
| Revenue | profit | assets | expenditure | ||
| Geographic segments | Rm | Rm | Rm | Rm | |
| Year to 31 March 2015 | |||||
| Malawi | 2 362.7 | 625.3 | 2 878.7 | 178.1 | |
| Mozambique | 593.3 | 24.6 | 944.7 | 39.1 | |
| South Africa | 4 481.6 | 215.2 | 2 857.6 | 223.5 | |
| Swaziland | 1 396.5 | 68.7 | 2 033.2 | 67.7 | |
| Tanzania | 1 247.4 | 145.0 | 1 598.8 | 32.1 | |
| Zambia | 3 185.0 | 576.3 | 3 984.1 | 159.0 | |
| 13 266.5 | 1 655.1 | 14 297.1 | 699.5 | ||
| Year to 31 March 2014 | |||||
| Malawi | 2 341.5 | 762.0 | 2 052.8 | 190.9 | |
| Mozambique | 552.8 | 32.5 | 918.9 | 31.4 | |
| South Africa | 4 504.1 | 265.8 | 2 658.7 | 217.3 | |
| Swaziland | 1 601.1 | 257.5 | 2 046.0 | 36.0 | |
| Tanzania | 924.7 | 11.0 | 1 690.3 | 145.3 | |
| Zambia | 3 265.9 | 558.1 | 3 793.4 | 101.1 | |
| 13 190.1 | 1 886.9 | 13 160.1 | 722.0 | ||