| Mon 25 Feb 2008, 14:29 | | FSR - Firstrand - Restatement of prior period financial information |
|
FSR
FSR
FSR - Firstrand - Restatement of prior period financial information
FIRSTRAND LIMITED
(Incorporated in the Republic of South Africa)
Registration number: 1966/010752/06
ISIN: ZAE000066304
Share Code: FSR
Namibian Share Code: FST
("FirstRand")
RESTATEMENT OF PRIOR PERIOD FINANCIAL INFORMATION
Circular 8/2007, "Headline Earnings" was issued by the South African Institute
of Chartered Accounts ("SAICA") on 1 August 2007, effective for periods ending
on or after 31 August 2007. Circular 8/2007 replaced the previous headline
earnings circular, Circular 7/2002. Circular 8/2007 includes a provision for
sector specific rules ("Rules"), subject to a JSE defined approval process. Two
Rules are currently in force, the most recent of which was approved by the JSE
on 22 February 2008, both of which are applicable to the results of FirstRand.
The first Rule requires the inclusion in headline earnings of profit and losses
made on the sale of associates and joint ventures held on a Private Equity
portfolio, and is applicable for periods ended on or after 31 August 2007.
The second Rule requires the inclusion in headline earnings of revaluation gains
or losses on investment property held by long term insurers and is applicable
for periods ended on or after 31 January 2008.
FirstRand is obliged to adopt the first exception and has elected to early adopt
the second exception.
In previous periods the profit or losses made on sale of private equity
associates and joint ventures were excluded from headline earnings based on the
requirements of Circular 7/2002. In line with Industry practice, FirstRand had
in the past included revaluation gains or losses on investment property in
headline earning numbers.
As a consequence of the adoption of Circular 8/2007, and the related exclusions,
FirstRand will amend its treatment of profits and losses on the disposal of
Private Equity associates, and will maintain it`s previous treatment of
revaluation gains and losses on investment property.
The table below reflects the restated 31 December 2006 and 30 June 2007 headline
earnings to give effect to these changes:
Actual For the six
months ended For the year ended
31 December 30 June
R million 2006 2007
Headline earnings as previously 4 569 10 457
stated
Profit on sale of equity 308 397
accounted private equity
associates
Restated headline earnings 4 877 10 854
Headline earnings per share
(cents) as previously stated
-Basic 88.1 202.5
-Diluted 85.6 196.8
Headline earnings per share
(cents) as restated
-Basic 94.1 210.2
-Diluted 91.4 204.2
Weighted average number of 5 183 035 154 5 163 931 035
shares in issue
Diluted weighted average number 5 336 501 229 5 314 831 808
of shares in issue
In addition pro forma earnings excluding the results of Discovery are provided
below:
Pro forma For the six For the year
months ended ended
31 December 30 June
R Million 2006 2007
Normalised earnings 5,319 11,309
Attributable earnings to 5,128 10,838
shareholders
Headline earnings 4,647 10,298
Pro forma normalised earnings per share (cents)
- Basic 94.4 200.7
- Diluted 94.3 200.6
Pro forma earnings per share
(cents)
- Basic 98.9 209.8
- Diluted 96.1 203.9
Pro forma headline earnings
per share (cents)
- Basic 89.6 199.4
- Diluted 87.1 193.7
Weighted average number of 5 183 806 204 5 164 879 381
shares in issue
Diluted weighted average 5 337 272 279 5 315 780 154
number of shares in issue
Weighted average number of 5 634 536 036 5 634 865 574
shares in issue (normalized
earnings)
Diluted weighted average 5 638 788 043 5 368 723 274
number of shares in issue
(normalized earning)
The financial information on which this trading statement is based has not been
reviewed and reported on by the company`s auditors.
This announcement does not impact on the voluntary trading update issued on
February 1, 2008, in which it was stated that FirstRand`s pro forma normalised
earnings following the unbundling of Discovery are expected to grow between 9
and 14% for the six month period to December 31, 2007.
Sandton
25 February 2008
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 25/02/2008 14:29:15 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
