Five-year review

The statement of comprehensive income and cash flows distinguish discontinued operations from continuing operations.
Comparative figures have been restated.
2014
R’000
2013
R’000
2012
R’000
2011
R’000
2010
R’000
Group statement of comprehensive income
Revenue 1 303 940 1 040 301 864 097 673 542 471 626
Operating and administration costs (1 118 276) (896 456) (735 877) (563 813) (386 598)
Earnings before interest, taxation, depreciation
and amortisation (EBITDA)
185 664 143 845 128 220 109 729 85 028
Depreciation on property, plant and equipment and amortisation of intangibles (62 345) (51 054) (43 801) (38 660) (33 402)
Trading profit 123 319 92 791 84 419 71 069 51 626
Profit/(loss) on sale of assets 9 580 (255) 6 001 (2) 50
Operating profit 132 899 92 536 90 420 71 067 51 676
Net finance costs (20 205) (13 071) (8 917) (4 542) (9 142)
Share of profits from associate 4 190 4 814
Profit before taxation 116 884 84 279 81 503 66 525 42 534
Taxation (30 428) (22 237) (23 750) (18 615) (12 265)
Profit from continuing operations 86 456 62 042 57 753 47 910 30 269
Profit from discontinued operations 8 762 2 103 2 279 12 354
Profit for the year 86 456 70 804 59 856 50 189 42 623
Other comprehensive income:
Revaluation of land and buildings 20 000 1 300
Currency translation differences 41 161 165 (38)
Income tax relating to components of other comprehensive income (3 730) (182)
Deferred tax increase due to CGT inclusion rate increase (760)
Total comprehensive income 102 767 70 965 59 261 51 269 42 623
Profit attributable to:
– Owners of the parent 76 089 65 488 53 729 38 697 34 711
– Non-controlling interest 10 367 5 316 6 127 11 492 7 912
Profit 86 456 70 804 59 856 50 189 42 623
Total comprehensive income attributable to:
– Owners of the parent 92 400 65 649 53 134 39 550 34 711
– Non-controlling interest 10 367 5 316 6 127 11 719 7 912
102 767 70 965 59 261 51 269 42 623
Calculation of headline and core headline earnings
Net profit attributable to shareholders 76 089 65 488 53 729 38 697 34 711
Adjusted for:
Profit on sale of fixed assets adjusted for tax and non-controlling interest (8 163) 22 (5 159) 1 (29)
Insurance proceeds adjusted for tax and non-controlling interest (438)
Profit on disposal of discontinued operation less taxation and non-controlling interest (8 495) (7 442)
Headline earnings 67 926 56 577 48 570 38 698 27 240
Amortisation of intangible assets acquired as part of a business combination less taxation and non-controlling interests 4 443 1 209 711 1 071 2 457
Core headline earnings 72 369 57 786 49 281 39 769 29 697

The concept of core headline earnings has been introduced for the first time in this year.

The definition of the core headline earnings measure is headline earnings (as calculated based on SAICA Circular 2/2013) adjusted for the amortisation charge of intangibles recognised on business combinations.

A reconciliation is provided below on the computation of core headline earnings:
Headline earnings 67 926 56 577 48 570 38 698 27 240
Amortisation of intangible assets acquired in a business combination (subsidiaries) 3 790 1 991 987 1 487 3 413
Taxation effect at 28% (1 061) (558) (276) (416) (956)
Non-controlling interests portion (758) (225)
Total 1 971 1 208 711 1 071 2 457
Amortisation of intangible assets acquired in a business combination (associate)
Associates profit after tax 16 655 12 034
Attributable to OneLogix at 40% shareholding 6 662 4 814
Attributable profit for the year (after amortisation
of the intangible assets)
4 190 4 814
Therefore, after tax amortisation of intangible
assets related to associates
2 472
Total amortisation of intangible assets acquired
in a business combination less taxation and
non-controlling interests
4 443 1 208 711 1 071 2 457
Core headline earnings 72 369 57 786 49 281 39 770 29 697
Number of shares in issue (‘000)
– Total 207 402 225 658 225 658 202 131 210 131
– Weighted 217 411 225 658 219 355 203 789 210 131
– Diluted 217 411 231 258 223 715 203 789 210 131
Basic earnings per share (cents) 35,0 29,0 24,5 19,0 16,5
– Continuing operations 35,0 25,1 23,8 18,3 11,8
– Discontinued operations 3,9 0,7 0,7 4,7
Diluted basic earnings per share (cents) 35,0 28,3 24,0 19,0 16,5
– Continuing operations 35,0 24,5 23,3 18,3 11,8
– Discontinued operations 3,8 0,7 0,7 4,7
Headline earnings per share (cents) 31,2 25,1 22,1 19,0 13,0
– Continuing operations 31,2 25,0 21,4 18,3 11,8
– Discontinued operations 0,1 0,7 0,7 1,2
Diluted headline earnings per share (cents) 31,2 24,5 21,7 19,0 13,0
– Continuing operations 31,2 24,4 21,0 18,3 11,8
– Discontinued operations 0,1 0,7 0,7 1,2
Core headline earnings per share (cents) 33,3 25,6 22,5 19,5 14,1
– Continuing operations 33,3 25,5 21,8 18,8 12,3
– Discontinued operations 0,1 0,2 0,7 1,8
Diluted core headline earnings per share (cents) 33,3 25,0 22,0 19,5 14,1
– Continuing operations 33,3 24,9 21,3 18,8 12,3
– Discontinued operations 0,1 0,7 0,7 1,8
Group statement of financial position
Assets
Non-current assets
Property, plant and equipment 532 672 446 418 327 555 274 241 217 682
Intangible assets 77 257 66 289 31 982 32 498 33 550
Interest in associate 38 125 33 935
Loans and receivables 15 033 7 219 6 498 6 271 6 887
Deferred taxation 2 201 1 474 2 155 1 492
Current assets
Inventories 10 376 10 090 14 759 12 157 9 525
Trade and other receivables 179 455 148 994 119 210 105 460 88 866
Current tax receivable 781 5 512 1 943 1 035 2 229
Cash and cash equivalents 70 323 54 749 102 494 42 791 60 233
Total assets 926 223 774 680 606 596 475 945 418 972
Equity and liabilities
Equity
Ordinary shareholders’ funds 334 978 292 272 264 498 200 226 181 889
Non-controlling interests 36 599 17 184 5 892 30 046 19 427
Liabilities
Non-current liabilities
Interest-bearing borrowings 168 165 149 722 122 431 81 286 61 208
Deferred taxation 66 647 51 605 26 846 21 080 20 196
Share-based compensation liability 4 132 1 986
Current liabilities
Trade and other payables 182 939 156 088 136 211 95 595 86 330
Interest-bearing borrowings 90 134 74 137 50 017 41 554 46 506
Vendor liability 9 000 9 000
Non-controlling interest put option 16 206
Current tax liabilities 1 371 1 616 701 2 026 1 430
Bank overdrafts 36 390 6 850
Total equity and liabilities 926 223 774 680 606 596 475 945 418 972
Statement of cash flows
Net cash generated from operating activities
– continuing operations 133 434 97 489 116 140 79 881 57 468
– discontinued operations (58) 2 934 1 846 8 050
133 434 97 431 119 074 81 727 65 518
Net cash flows from investing activities
– continuing operations 1 265 (88 482) 5 108 (18 024) 434
– discontinued operations (62) (462) (835) 27 975
1 265 (88 544) 4 646 (18 859) 28 409
Net cash flows from financing activities
– continuing operations (148 680) (63 517) (64 195) (78 829) (61 077)
– discontinued operations (75) 65 (1 444) (16)
(148 680) (63 592) (64 130) (80 273) (61 093)
Net increase/(decrease) in cash resources (13 981) (54 705) 59 590 (17 405) 32 834
Cash and cash equivalents at beginning of year 47 899 102 494 42 791 60 233 27 399
Exchange gain/(loss) on cash 15 110 113 (37)
Cash and cash equivalents at end of year 33 933 47 899 102 494 42 791 60 233