| Thu 4 Sep 2008, 7:23 | | AVI - AVI Limited - Audited Results For The Year Ended 30 June 2008 and |
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AVI
AVI
AVI - AVI Limited - Audited Results For The Year Ended 30 June 2008 and
dividend declaration
AVI LIMITED
(Registration number 1944/017201/06)
Share code: AVI & ISIN: ZAE000049433
("AVI" or "the Group" or "the Company")
AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2008
Key features
- Revenue from continuing operations up 14% to R6,7 billion
- Operating profit from continuing operations up 14% to R799 million
- Headline earnings per share from continuing operations up 15% to 159
cents*
- Total dividend up 10% to 80 cents per share
- R550 million returned to shareholders
*prior year headline earnings per share = 138 cents after restatement to
exclude Alpesca now disclosed as a discontinued operation
GROUP OVERVIEW
Demand for the Company`s brands over the year has been pleasing, with robust
growth in the first half supported by satisfactory demand over the remainder
of the year, notwithstanding reducing consumer disposable income. Selling
prices increased in all categories in response to steep and sustained
increases in the cost of soft commodities and energy as well as the impact
of a weaker rand on imports. AVI`s policy of hedging a portion of future raw
material and foreign exchange requirements ameliorated the extent of price
increases required to support the responsible management of margins.
However, margins started to come under pressure in the second half which was
partially offset by volume driven operating leverage in the tea, biscuits,
creamer and personal care categories.
As announced in the trading update issued on 26 June 2008, AVI`s Board has
resolved to disinvest from the Argentinean hake and shrimp operations
conducted by Alpesca s.a. ("Alpesca"), a wholly owned subsidiary of Irvin
and Johnson Holding Company (Proprietary) Limited ("I&J"). Notwithstanding
the value inherent in Alpesca`s long term hake and shrimp fishing rights and
strong processing capabilities, this asset has proven difficult for I&J to
achieve consistent economic returns and it has detracted significantly from
the focus on optimising I&J`s South African operations. In accordance with
accounting standards Alpesca has been classified as a discontinued
operation.
Overall financial performance from continuing operations was pleasing with
revenue and operating profit up 13,8% and 13,7% respectively. Headline
earnings per share from continuing operations rose by 14,9% to 159,0 cents.
A final dividend of 47 cents per share has been declared (2007: 43 cents per
share) bringing the total dividend for the year to 80 cents per share (2007:
73 cents per share).
A total of R549,7 million was returned to shareholders through a payment out
of share premium of 75 cents per share which amounted to R230,6 million and
through share buy backs in the open market amounting to R319,1 million.
CONTINUING OPERATIONS
Revenue rose by 13,8% from R5,9 billion to R6,7 billion as a result of
volume growth, particularly in the tea, biscuits, creamer and personal care
categories, and higher selling prices in all categories. The consolidated
gross profit margin declined from 42,7% of revenue to 41,3% as a result of
cost pressures which were largely offset by selling price increases and
volume leverage. Operating profit rose by 13,7%, from R702,3 million to
R798,7 million and the operating profit margin was maintained at 12,0%.
Net financing costs increased from R23,2 million in 2007 to R64,0 million as
a result of higher interest rates and an increase in the Group`s gearing to
fund working capital and capital expenditure requirements.
AVI`s share of the equity accounted earnings of joint ventures was a net
profit of R17,2 million compared to a loss of R21,4 million in the prior
period. The improvement is due to a better performance from I&J`s joint
venture with Simplot (Australia) Proprietary Limited ("Simplot"), which
achieved better processing efficiencies, market share gains and higher than
usual seafood trading profits in 2008.
The effective tax rate of 34,7% is slightly higher than last year with an
earnings shift towards higher tax jurisdictions and lower capital profits,
which are taxed at lower rates, offset by the reduction in the South African
corporate tax rate from 29% to 28%.
Headline earnings increased by 12,0% from R434,3 million to R486,7 million
while the weighted average number of shares in issue decreased by 2,5% as a
result of the share buy-back. Consequently headline earnings per share
increased by 14,9% to 159,0 cents per share.
The capital items of R13,7 million before tax largely comprise profits on
the sale of trawlers as I&J matches its fleet size to lower quota levels.
Cash generated by operations before working capital changes increased by
18,3% to R1,02 billion. Working capital has increased by R354,7 million
reflecting both higher input costs and quantities of stock on hand at year
end as well as high sales in June at Entyce, Snackworx and I&J, resulting in
a temporary increase in the trade debtors balance. Net working capital at
the end of June increased from 17,3% of sales in 2007 to 19,7% of sales.
Other material cash out-flows during the year were the return of capital to
shareholders totalling R549,7 million, normal dividends of R233,4 million,
capital expenditure of R271,6 million and taxation of R247,4 million. Net
debt at the end of June 2008 was R724,4 million compared to R83,5 million at
the end of June 2007.
Capital expenditure of R271,6 million included mainly replacement
expenditure as well as the new biscuit line at Isando and new stores for
Spitz.
SEGMENTAL REVIEW - CONTINUING OPERATIONS
Year ended 30 June
Segmental revenue Segmental operating profit
2008 2007 Change 2008 2007 Change
Rm Rm % Rm Rm %
Food & Beverage 5 392,8 4 769,0 13,1 612,5 510,0 20,1
Brands
Entyce 1 547,5 1 339,1 15,6 189,1 160,6 17,7
Snackworx 1 677,2 1 394,2 20,3 185,8 156,8 18,5
Chilled & Frozen 1 775,4 1 690,8 5,0 194,9 139,1 40,1
Convenience Brands
Out of Home 392,7 344,9 13,9 42,7 53,5 (20,1)
Fashion brands 1 253,3 1 058,1 18,4 206,3 208,4 (1,0)
Personal care 623,5 555,9 12,2 73,4 63,3 16,0
Footwear & apparel 629,8 502,2 25,4 132,9 145,1 (8,4)
Corporate 14,5 24,8 (20,1) (16,1)
Group 6 660,6 5 851,9 13,8 798,7 702,3 13,7
Entyce
Revenue growth of 15,6% was achieved with good volume growth in the tea
category supported by input cost driven price increases across all
categories. Market shares of key brands were maintained or increased with
strong promotional support and launches of revised packaging and new
variants. The impact of higher black tea prices arising from constrained
Kenyan supply was mitigated by increasing stock levels ahead of the
anticipated spike in prices, but will have a more material impact in the
2009 financial year. Operating profit increased 17,7% from R160,6 million to
R189,1 million with the operating profit margin at 12,2% compared to 12,0%
in the prior period.
Snackworx
Biscuit demand remained sound in the second half of the year following
strong growth in the first half. Realised selling prices were on average 15%
higher than in 2007 in response to steep and sustained increases in the cost
of Snackworx`s basket of commodities. Revenue increased by 20,3% as a
consequence of the higher volumes and increased prices. Despite price
increases and forward securing of raw materials, margins came under pressure
from input costs towards the end of the year which was largely offset by
volume driven operating leverage realised over the year. Operating profit
increased by 18,5% from R156,8 million to R185,8 million with operating
profit margin of 11,1% compared to 11,2% in 2007.
The new high capacity line at Isando has been commissioned and has allowed
Snackworx to significantly improve service levels on key lines during the
second half.
Chilled and Frozen Convenience Brands (I&J* and Denny) *excluding Alpesca
I&J`s South African operations realised higher prices as a result of a
weaker rand and increases in both overseas and local prices for seafood
products. Hake volumes were lower because of the reduced quota allocations.
Denny achieved slightly higher sales volumes and also increased prices in
response to increases in the cost of imported materials and higher packaging
and transport costs. Revenue increased by 5,0%. Operating profit increased
by 40,1% from R139,1 million to R194,9 million largely because of a healthy
improvement at I&J`s South African operations driven by the weaker rand and
a more efficient base in both trawling and processing activities. Denny
benefited from firm demand and increased production and contributed R8,3
million of the increase in operating profit. Operating profit margin
improved from 8,2% to 11,0%.
Out of Home (Ciro Beverage Solutions and Sir Juice)
Revenue increased by 13,9% due to significant growth in juice volumes and
selling price increases in response to higher raw material costs. Core
coffee volumes were maintained. The higher proportion of relatively low
margin juice combined with input cost pressures resulted in a lower
operating margin of 10,9% and operating profit decreased by R10,8 million to
R42,7 million.
Fashion Brands (personal care, footwear and apparel)
Strong volume growth was largely responsible for the increase in revenue of
18,4%. Selling prices were increased in the second half of the year mostly
to deal with the higher cost of imported items caused by the weaker rand.
Operating margin decreased from 19,7% to 16,4%, reflecting the impact of
investments made in the footwear and apparel businesses. Operating profit
decreased from R208,4 million to R206,3 million.
Indigo made strong gains in toiletry brands supported by a robust
performance from the fragrance and make-up product categories. Successful
new product development and launches underpinned the sustained growth of
this business. Revenue grew by 12,2% with operating profit growth of 16,0%
to R73,4 million.
The footwear and apparel category grew revenue by 25,4% through additional
trading space, like-for-like volume growth of 4% and price increases in the
second half of the year. Spitz continued with its programme of investment in
new stores, refurbishing existing stores and upgrading systems and people.
The rate of expansion has been reviewed in light of slowing sales growth,
with five new doors opened in the second half compared to thirteen in the
first half. Like-for-like revenue growth has trended lower through the
second half as consumers` ability to spend becomes more constrained. The de-
leveraging that was expected to result from the planned investment in new
stores, people and systems has been amplified by the slowing revenue growth.
The operating profit margin decreased from 28,9% to 21,1% and operating
profit declined from R145,1 million to R132,9 million.
DISCONTINUED OPERATION
Alpesca`s results declined significantly in 2008 as a result of reduced
quota, lower catch rates, wage inflation and lower shrimp prices. This
operation made an operating loss of R10,2 million in 2008 compared to a
profit of R33,1 million in 2007. The prior year`s results have been re-
presented to reflect Alpesca`s contribution to Group results as results from
discontinued operations.
I&J is in negotiations with prospective buyers for Alpesca. Management is of
the view that no impairment of I&J`s investment in Alpesca is required.
DIVIDENDS AND RETURN OF CAPITAL TO SHAREHOLDERS
A final dividend of 47 cents per share has been declared, bringing the total
normal dividend for the year to 80 cents in line with AVI`s policy of a 2,0
dividend cover on diluted headline earnings per share from continuing
operations.
In addition to normal dividends paid during the year of R233,4 million a
further R549,7 million was returned to shareholders. The special payment of
75 cents per share out of share premium, approved by shareholders in October
2007 and paid in November 2007 amounted to R230,6 million and a total of
R319,1 million was used to buy shares in the open market. A total of 17,3
million shares were repurchased during the period.
OUTLOOK
The established defensive characteristics of AVI`s food, beverage and
personal care brands when consumer spending is constrained have served the
Company well through the second half. However, it is clear that volume
growth is slowing down and the Group will need to work hard to maintain
sales volumes, especially as further selling price increases have already
been implemented post 30 June 2008 as a consequence of wage increases and
sustained high raw material, packaging, transport and energy costs.
With respect to input costs, AVI is in a period where commodity prices and
foreign exchange rates, net of hedges taken on a rolling basis, continue to
put pressure on margins despite an extended period of price increases. It is
increasingly difficult to predict consumer demand but clearly slowing volume
growth will have an adverse effect on margins and heighten the focus on
seeking internal efficiencies. AVI`s strong portfolio of brands, with their
associated supply chains, still contain material opportunity for improvement
in terms of capacity, technology and overall cost efficiency which
management is addressing in a progressive and structured way.
A depreciating rand in 2009, which seems increasingly to be the prevailing
view, will benefit the Group with its strong export revenue stream in I&J
South Africa, although the other operations will have to deal with the
higher cost of imports. In addition there are indications that some
commodity prices have started reducing from their highs, which may ease the
pressure on margins in the latter part of the year.
In summary, while there is no doubt that trading conditions will be tougher
in 2009 we remain confident that AVI`s strong defensive brand portfolio,
combined with planned efficiency and product initiatives will underpin the
Group`s ability to sustain earnings growth over the medium term.
Abridged Group balance sheets
Audited Audited
at 30 June at 30 June
2008 2007
Rm Rm
ASSETS
Non-current assets
Property, plant and equipment 1 164,8 1 241,7
Intangible assets and goodwill 986,2 1 052,1
Investments 312,8 245,9
Deferred tax asset 89,1 121,6
2 552,9 2 661,3
Current assets
Inventories and biological assets 873,0 760,8
Trade and other receivables including derivatives 1 178,7 1 058,6
Cash and cash equivalents 174,9 317,1
Assets classified as held for sale* 493,0 30,5
2 719,6 2 167,0
Total assets 5 272,5 4 828,3
EQUITY AND LIABILITIES
Capital and reserves
Attributable to equity holders of AVI 2 518,8 2 680,4
Minority interests (17,5) (18,4)
Total equity 2 501,3 2 662,0
Non-current liabilities
Financial liabilities, borrowings and operating 409,7 196,6
lease straight-line liabilities
Employee benefits 293,5 286,2
Deferred taxation 154,0 144,6
857,2 627,4
Current liabilities
Current borrowings including derivatives 536,3 344,1
Trade and other payables 1 048,1 1 117,5
Corporate taxation 73,4 66,9
Liabilities classified as held for sale* 256,2 10,4
1 914,0 1 538,9
Total equity and liabilities 5 272,5 4 828,3
*Assets and liabilities held for sale comprise the Argentinian hake and
shrimp operations conducted by Alpesca, a wholly owned subsidiary of
I&J, and properties held for sale. (June 2007: remaining assets of
ancillary offshore subsidiary, properties and retired fishing vessels)
Abridged Group income statements
Audited Audited Change
Year ended Year ended %
30 June 30 June
2008 2007
Rm Rm
CONTINUING OPERATIONS
Revenue 6 660,6 5 851,9 14
Cost of sales 3 912,3 3 351,6 17
Gross profit 2 748,3 2 500,3 10
Selling and administrative expenses 1 949,6 1 798,0 8
Operating profit before capital items 798,7 702,3 14
Income from investments 22,5 25,3 (11)
Finance costs (86,5) (48,5) 78
Share of equity accounted earnings of 17,2 (21,4) 180
joint ventures
Capital items 13,7 34,2
Profit before taxation 765,6 691,9 11
Taxation 265,8 237,1 12
Profit from continuing operations 499,8 454,8 10
DISCONTINUED OPERATIONS*
Revenue 445,5 480,5 (7)
Cost of sales 351,9 353,2 0
Gross profit 93,6 127,3 (26)
Selling and administrative expenses 103,8 94,2 10
Operating (loss)/profit before (10,2) 33,1 (131)
capital items
Finance costs (10,0) (9,4) 6
Capital items 0,2 2,2 (91)
(Loss)/profit before taxation (20,0) 25,9 (177)
Taxation (9,9) (2,5) 296
(Loss)/profit from discontinued (10,1) 28,4 (136)
operations
Profit for the year 489,7 483,2 1
Attributable to:
Equity holders of AVI 488,3 491,3 (1)
Minority interests 1,4 (8,1) (117)
489,7 483,2 1
Basic earnings per share from 162,9 147,5 10
continuing operations (cents)#
Diluted earnings per share from 161,4 146,7 10
continuing operations (cents)##
Depreciation and amortisation of property, plant and equipment, fishing
rights and trademarks included in operating profit
Continuing operations 166,7 150,0 11
Discontinued operations 24,4 27,6 (12)
Headline earnings per share from 159,0 138,4 15
continuing operations (cents)#
Diluted headline earnings per share 157,6 137,6 15
from continuing operations (cents)##
*Discontinued operations comprise the Argentinian hake and shrimp
operations conducted by Alpesca,a wholly owned subsidiary of I&J. In
June 2008 the AVI Board resolved to disinvest from this operation.
#Earnings and headline earnings per share is calculated on a weighted
average of 306 081 992 (30 June 2007: 313 775 479) ordinary shares in
issue.
##Diluted earnings and headline earnings per share is calculated on a
weighted average of 308 840 457 (30 June 2007: 315 614 574) ordinary
shares in issue.
Abridged Group cash flow statements
Audited Audited Change
Year ended Year ended %
30 June 30 June
2008 2007
Rm Rm
CONTINUING OPERATIONS
OPERATING ACTIVITIES
Cash generated by operations before 1 022,8 864,6 18
working capital changes
Increase in working capital (354,7) (165,4) 114
Cash generated by operations 668,1 699,2 (4)
Interest paid (91,0) (47,7) 91
Taxation paid (247,4) (255,2) (3)
329,7 396,3 (17)
INVESTING ACTIVITIES
Cash flow from investments 29,6 24,0 23
Property, plant and equipment (271,6) (233,8) 16
acquired
Proceeds from disposals 47,4 76,4 (38)
Acquisition of businesses and other (37,8) (360,1) (90)
investments
(232,4) (493,5) (53)
FINANCING ACTIVITIES
Capital returned to shareholders (549,7) -
Net increase in shareholder funding 4,7 7,1 (34)
Long-term borrowings - net 308,8 (4,5) (6 962)
raised/(repaid)
Increase in short-term funding 206,2 257,3 (20)
Dividends paid (233,4) (199,5) 17
(263,4) 60,4 (536)
DISCONTINUED OPERATIONS*
Cash flows from operating activities 31,7 41,8 (24)
Cash flows from investing activities (11,0) (11,6) (5)
Cash flows from financing activities 2,1 (15,0) 114
Cash flows from discontinued 22,8 15,2 50
operations
Decrease in cash and cash equivalents (143,3) (21,6) 563
Cash and cash equivalents at 317,1 335,8 (6)
beginning of period
Translation of cash equivalents of 31,0 2,9 969
foreign subsidiaries at beginning of
year
Cash and cash equivalents at end of 204,8 317,1
period
Attributable to
Continuing operations 174,9
Discontinued operations 29,9
*Discontinued operations comprise the Argentinian hake and shrimp
operations conducted by Alpesca, a wholly owned subsidiary of I&J.
Abridged Group statements of changes in equity
Share Treasury Reserves Retained
capital shares Rm earnings
and Rm Rm
premium
Rm
Year ended 30 June 2008
Balance at 1 July 2007 428,2 (435,7) 23,2 2 667,4
Recognised income and expense
Profit for the period 488,3
Foreign currency translation 111,5
differences
Cash flow hedging reserve (0,4)
Transactions with shareholders
Share-based payments 16,2
Dividends paid (232,9)
Payment out of share premium (257,0) 26,4
Own ordinary shares sold by AVI 8,6 (3,0)
Share Trusts (net)
Own ordinary shares purchased by (319,1)
a subsidiary
Redemption of convertible (0,2)
redeemable preference shares
Balance at 30 June 2008 171,0 (719,8) 150,5 2 919,8
Year ended 30 June 2007
Balance at 1 July 2006 20,5 (40,8) (13,2) 2 376,1
Recognised income and expense
Profit for the year 491,3
Foreign currency translation 17,3
differences
Cash flow hedging reserve 10,5
Transactions with shareholders
Share-based payments 8,6
Dividends paid (197,7)
Issue of ordinary shares 407,7
Own ordinary shares (394,9) (2,3)
sold/(purchased) by AVI Share
Trusts (net)
Balance at 30 June 2007 428,2 (435,7) 23,2 2 667,4
Premium Total Minority Total
on Rm interests equity
minority Rm Rm
equity
trans-
actions
Rm
Year ended 30 June 2008
Balance at 1 July 2007 (2,7) 2 680,4 (18,4) 2 662,0
Recognised income and expense
Profit for the period 488,3 1,4 489,7
Foreign currency translation 111,5 111,5
differences
Cash flow hedging reserve (0,4) (0,4)
Transactions with shareholders
Share-based payments 16,2 16,2
Dividends paid (232,9) (0,5) (233,4)
Payment out of share premium (230,6) (230,6)
Own ordinary shares sold by AVI 5,6 5,6
Share Trusts (net)
Own ordinary shares purchased by (319,1) (319,1)
a subsidiary
Redemption of convertible (0,2) (0,2)
redeemable preference shares
Balance at 30 June 2008 (2,7) 2 518,8 (17,5) 2 501,3
Year ended 30 June 2007
Balance at 1 July 2006 (2,7) 2 339,9 (8,5) 2 331,4
Recognised income and expense
Profit for the year 491,3 (8,1) 483,2
Foreign currency translation 17,3 17,3
differences
Cash flow hedging reserve 10,5 10,5
Transactions with shareholders
Share-based payments 8,6 8,6
Dividends paid (197,7) (1,8) (199,5)
Issue of ordinary shares 407,7 407,7
Own ordinary shares (397,2) (397,2)
sold/(purchased) by AVI Share
Trusts (net)
Balance at 30 June 2007 (2,7) 2 680,4 (18,4) 2 662,0
Supplementary notes to the abridged consolidated financial statements
AVI Limited (the "Company") is a South African registered company. The
abridged consolidated financial statements of the Company comprise the
Company and its subsidiaries (together referred to as the "Group") and the
Group`s interest in joint ventures.
1. Statement of compliance
The abridged consolidated financial statements have been prepared in
accordance with the recognition and measurement criteria of IFRS, its
interpretations adopted by the International Accounting Standards Board,
the presentation as well as the disclosure requirements of IAS34 -
Interim Financial Reporting, the Listings Requirements of the JSE Limited
(the "JSE") and in the manner required by the South African Companies
Act.
2. Basis of preparation
The financial statements are prepared in millions of South African Rand
("Rm") on the historical cost basis, except for derivative financial
instruments and biological assets which are recognised at fair value.
The accounting policies are those presented in the annual financial
statements for the year ended 30 June 2008 and have been applied
consistently to the periods presented in these abridged consolidated
financial statements and by all Group entities.
3. Determination of headline earnings
Audited Audited Change
Year ended Year ended %
30 June 2008 30 June 2007
Rm Rm
Profit for the year attributable 488,3 491,3 (0,6)
to equity holders of AVI
Total capital items included in 12,0 30,7
earnings
Net surplus on disposal of 19,0 57,0
investments, properties, vessels
and plant and equipment
Impairment of plant, equipment (5,1) (2,5)
and vessels
Impairment of trademarks - (1,8)
Impairment of disposal groups - (16,3)
held for sale
Taxation attributable to capital (1,9) (5,7)
items
Headline earnings 476,3 460,6 3,4
Attributable to
Continuing operations 486,7 434,4 12,0
Discontinued operations (10,4) 26,2
476,3 460,6 3,4
Headline earnings per ordinary 155,6 146,8 6,0
share (cents)
Continuing operations (cents) 159,0 138,4 14,9
Discontinued operations (cents) (3,4) 8,4 (140,5)
Diluted headline earnings per 154,2 145,9 5,7
ordinary share (cents)
Continuing operations (cents) 157,6 137,6 14,5
Discontinued operations (cents) (3,4) 8,3 (141,0)
4. Investment activity
Effective 1 July 2007, Ciro Beverage Solutions (Proprietary) Limited, a
subsidiary of National Brands Limited, acquired the assets of a roaster
and distributor of coffee in the Out of Home sector for R15,2 million. A
long-term supply agreement between Ciro and Famous Brands Limited was
concluded as a condition of this transaction.
Effective 15 November 2007, the Company acquired a licensee and
wholesaler of exclusive apparel brands, including Gant, for R20,7
million.
2008
Rm
Net assets of subsidiaries (including businesses and
operations) acquired
Property, plant and equipment 2,2
Intangible assets 38,2
Cash and cash equivalents 1,3
Net current assets 4,9
Deferred taxation (10,7)
Total consideration 35,9
Effective 4 October 2007, I&J disposed of part of the assets of an
ancillary offshore subsidiary, which were shown as held for sale at 30
June 2007, for R15,1 million.
5. Commitments
Year ended Year ended
30 June 30 June 2007
2008 Rm
Rm
Capital expenditure commitments for 127,7 130,0
property,plant and equipment
Contracted for 79,3 89,5
Authorised but not contracted for 48,4 40,5
It is anticipated that this expenditure will be financed by cash
resources, cash generated from activities and existing borrowing
facilities. Other contractual commitments have been entered into in the
normal course of business.
6. Contingent liabilities
The South African Revenue Service ("SARS") has issued revised assessments
on a foreign subsidiary for taxes plus penalties and interest in respect
of the tax years previously assessed, 1998 through 2003. The additional
taxes assessed by SARS amount to R49,4 million. The total amount in terms
of the assessments, including penalties and interest up to June 2008, is
R271,0 million.
Were assessments to be issued for the 2004 to 2008 tax years on the same
basis applied in the assessments received, the total amount of additional
tax payable in respect of these years would be R43,3 million, excluding
penalties, with interest thereon estimated at R10,1 million.
The foreign subsidiary is waiting to be allocated a court date. The
issues in dispute are of a complex nature and it is anticipated that the
matter will remain unresolved for an extended period.
7. Post-balance sheet events
No significant events, outside the ordinary course of business, have
occurred since the balance sheet date.
8. Dividend declaration
Notice is hereby given that a final ordinary dividend No 68 of 47 cents
per share for the year ended 30 June 2008 has been declared payable to
shareholders of ordinary shares. The salient dates relating to the
payment of the dividend are as follows:
Last day to trade cum dividend on the JSE Friday, 26 September 2008 First
trading day ex dividend on the JSE Monday, 29 September 2008
Record date Friday, 3 October 2008
Payment date Monday, 6 October 2008
In accordance with the requirements of Strate, no share certificates may
be dematerialised or rematerialised between Monday, 29 September 2008 and
Friday, 3 October 2008, both days inclusive.
Dividends in respect of certificated shareholders will be transferred
electronically to shareholders` bank accounts on payment date. In the
absence of specific mandates, dividend cheques will be posted to
shareholders. Shareholders who hold dematerialised shares will have their
accounts at their Central Securities Depository Participant ("CSDP") or
broker credited on Monday, 6 October 2008.
9. Reports of the independent auditors
The unmodified audit reports of KPMG Inc., the independent auditors, on
the annual financial statements and the summarised financial statements
contained herein for the year ended 30 June 2008, dated 3 September 2008,
are available for inspection at the registered office of the Company.
10. Annual report
The annual report for the year ended 30 June 2008 will be posted to
shareholders on or about Tuesday, 23 September 2008. The annual report
will include the notice of the annual general meeting of shareholders to
be convened on Wednesday, 15 October 2008.
Angus Band Simon Crutchley
Chairman CEO
4 September 2008
Directors: Executive Simon Crutchley (Chief executive officer), Owen
Cressey (Chief financial officer), Robert Katzen (Business development
director) Non-executive: Angus Band (Chairman), Humphrey Buthelezi, Nomhle
Canca, Pat Goss, James Hersov, Sean Jagoe, Nombulelo Moholi, Adriaan Nuhn*,
Gavin Tipper
*Dutch
Company secretary: Mande Ndema
Registered office: 2 Harries Road, Illovo, Johannesburg 2196, South Africa
Postal address: PO Box 1897, Saxonwold 2132, South Africa, Telephone: +27 11
502 1300, Telefax: +27 11 502 1301
e-mail: info@avi.co.za Website: www.avi.co.za
Sponsor: Standard Bank
Date: 04/09/2008 07:23:13 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.
