Notes to the financial information
| 1. | The Group’s interim condensed consolidated financial statements have been prepared in accordance with IAS 34 - Interim Financial Reporting. The accounting policies and methods of computation applied in the preparation of these financial statements are in accordance with IFRS and are consistent with those applied in the preparation of the Group’s annual financial statements for the year ended 28 February 2011. |
| 2. | During the period, certain companies within the Group entered into transactions with each other. These intra-group transactions have been eliminated on consolidation. Related parties are unchanged from those reported at 28 February 2011. For further information, please refer to note 28 of the 2011 annual report. |
| 3. | Revenue comprises turnover, other trading income and interest received. |
| 4. | The weighted average number of shares is lower than that in issue due to the treasury shares held by the Group being treated as cancelled for this calculation. |
| 5. | Discontinued operation – InterFrank Group Holdings Pty Limited (“Franklins”): |
As the Group completed the sale of Franklins on 30 September 2011 it continues to be disclosed as a discontinued operation at 31 August 2011. The net proceeds from the sale were approximately R1.3 billion, which will be invested in the Group’s South African operations. The transaction will only be accounted for in the second half of the financial year. Notwithstanding our decision to complete the sale, the ACCC’s appeal has been expedited with a three day hearing scheduled to begin on 24 October 2011. Our confidence in a successful outcome has been boosted by the comprehensive judgment in our favour in the Federal Court in late August 2011 and by the court’s denial of the ACCC’s application for an interim injunction.
The salient financial information of the discontinued operation is as follows:| Franklins | |||
| Unaudited | Audited | ||
| Aug 2011 Rm |
Aug 2010 Rm |
Feb 2011 Rm |
|
| Statement of comprehensive income | |||
| Revenue | 2 904.1 | 2 790.3 | 5 617.4 |
| Turnover | 2 904.0 | 2 787.5 | 5 613.0 |
| Trading expenses | 683.6 | 665.1 | 1 281.6 |
| Loss on sale of equipment and vehicles | (0.8) | (3.4) | (7.0) |
| Trading loss for the period | (65.8) | (75.0) | (123.2) |
| Loss for the period after tax | (65.8) | (74.0) | (123.4) |
| Statement of financial position | |||
| Total assets | 2 117.3 | 1 993.7 | 2 120.1 |
| Total liabilities | 838.9 | 762.9 | 826.6 |
| Cash flow statement | |||
| Net cash (utilised in) / from operating activities | (65.8) | 45.3 | 13.9 |
| Net cash utilised in investing activities | (17.9) | (78.0) | (151.4) |
| Net cash from financing activities | 12.4 | 10.0 | 10.0 |