| Tue 11 May 2010, 7:05 | | PPC - Pretoria Portland Cement Company Limited - Unaudited interim report for |
|
PPC
PPC
PPC - Pretoria Portland Cement Company Limited - Unaudited interim report for
the half-year ended 31 March 2010
PRETORIA PORTLAND CEMENT COMPANY LIMITED
(Incorporated in the Republic of South Africa)
(Company registration number: 1892/000667/06)
JSE Code: PPC
ISIN: ZAE000125886
("PPC" or "the company")
10 May 2010
PPC
Unaudited interim report for the half-year ended 31 March 2010
- Recovery in SA Cement demand still not evident
- Strong performance from the lime and aggregates divisions
- Significant contribution from PPC Zimbabwe
- Headline earnings per share up 10%
- Interim dividend maintained at 45 cents per share
Paul Stuiver, CEO said "PPC has produced a good set of results by increasing
revenue, profitability and operating cash flow in a difficult economic
environment. While the contributions from our Zimbabwean cement operations
and the Lime and Aggregates divisions improved significantly, South African
cement demand continued to decline and we remain concerned over the outlook
for cement demand in the second half".
COMMENTARY
PPC`s total cement volumes including Zimbabwe declined 8% for the period.
Demand in South Africa and Botswana continued on a downward trend,
particularly in the residential and construction sectors. This was somewhat
offset by increased demand in Zimbabwe and improved export volumes. In
contrast, the Lime and Aggregates divisions experienced improvements in
volume during the six months under review.
Group revenue increased by 5% to R3 421 million (2009: R3 261 million). Group
EBITDA increased by 4% to R1 296 million (2009: R1 245 million) while cash
generated from operations increased by 7% to R1 097 million (2009: R1 026
million) reflecting a continued focus on operating efficiencies and working
capital management.
Operating profit, excluding IFRS 2 charges for the previous year`s BBBEE
transaction, rose 2% to R1 125 million (2009: R1 100 million).
The company`s gearing remains conservative with gross debt of R4,0 billion
(2009: R3,9 billion) substantially unchanged. Capital investment amounted to
R325 million (2009: R403 million) and the prior year`s final dividend payment
of R823 million (2009: R956 million) was accounted for during this period.
Administration and operating expenditures showed a significant increase over
last year. This was mainly attributable to the consolidation of PPC
Zimbabwe`s overheads, the SAP ERP implementation and increased spending on
cement marketing initiatives.
Finance charges of R176 million were 3% higher than the previous period
reflecting a full six month impact of the BBBEE transaction, partially offset
by lower interest rates.
Headline earnings per share excluding the IFRS 2 charges relating to the
previous year`s BBBEE transaction increased by 10% to 116 cents per share
(2009: 105 cents per share). Including the impact of the BBBEE transaction,
headline earnings per share increased by 465% to 115 cents per share (2009:
20 cents per share).
In view of the prevailing economic conditions, the directors have declared an
unchanged interim dividend of 45 cents per share (2009: 45 cents per share).
The company expects to maintain dividend cover for the full year in the
stated range of 1,2 to 1,5 times.
CEMENT
PPC`s cement volumes in South Africa and Botswana declined by 15%, mainly due
to a continued decline in residential building activity and a lack of new
construction and infrastructure projects. The Western Cape and Gauteng
provinces recorded the most significant reductions.
In response to lower demand, PPC has focused on optimising production and
product distribution costs. We have been able to take advantage of our
multiple production lines and locations to run the most cost-effective
combination of units. Lower capacity requirements have also allowed for the
re-evaluation and delay of some capital expenditure.
Commissioning of a new, electrically efficient cement mill at the Hercules
plant in Pretoria is currently in progress. This unit should contribute to a
further improvement in efficiencies during the second half of the financial
year. With regard to the proposed new Riebeeck factory, the company is still
awaiting a record of decision regarding its environmental impact assessment
from the authorities.
PPC Zimbabwe`s local and export cement sales increased to 35 000 tons per
month compared to 10 000 tons per month during the same period last year.
Operating conditions were still hampered by numerous electricity load
shedding interruptions. The kiln cooler replacement project at the Colleen
Bawn plant is currently in progress.
Weaker regional demand combined with the coming on stream of new capacity has
increased competitive dynamics in the industry. Through a combination of
increased marketing effort and some product enhancements, we were able to
achieve our pricing objectives and maintain margins.
In terms of the conditional leniency agreement with the Competition
Commission, PPC continues to cooperate with their investigation and from our
perspective there have been no significant new developments.
LIME AND AGGREGATES
Lime volumes improved by more than 30% as demand from the steel and alloys
markets continued to recover. This resulted in an increase in operating
profit to R80 million (2009: R31 million). The steel industry`s positive
outlook for the steel and alloy volumes during the remainder of 2010 should
result in a continued strong performance by the Lime division, albeit at a
slower rate than experienced during the first half.
Aggregates operating profit increased by 19% to R31 million (2009: R26
million) mainly due to increased volumes. Increased demand was primarily
driven by metallurgical dolomite sales in South Africa and increased
aggregate sales to road construction projects in Botswana.
BOARD CHANGES
During the period under review Mr. Salim Abdul Kader, an experienced
executive director in the company was appointed to the position of Managing
Director Cement, South Africa while Mr. Sello Helepi was promoted to the
position of executive director responsible for Organisational Performance and
Transformation. Both appointments were effective from 1 December 2009.
PROSPECTS
Economic indicators are currently mixed and economic recovery in the region
appears fragile and uncertain. The South African government`s commitment to
infrastructural development is encouraging but commencement of new
construction projects is taking longer than anticipated.
This, together with the effects of the World Cup, makes the forecasting of
cement demand during the remainder of 2010 extremely difficult. However it is
likely that South African cement demand during 2010 will be lower than during
2009.
The contribution of PPC Zimbabwe is also difficult to forecast as the
situation in the country remains transient. The recently announced
Indigenisation regulations have impacted negatively on general business
confidence and consequently on our cement sales.
Cement pricing is expected to remain under pressure for the remainder of the
year with excess industry capacity and a strong local currency limiting
pricing power.
Under these circumstances we will continue to focus on operational
performance and the running of our most efficient production units to
minimise the impact of reduced volume and increasing energy costs. We will
also ensure that the company will be ready to capitalise on increased demand
when the anticipated economic recovery eventually materialises.
The strategy to expand the business beyond its existing geographical
boundaries will continue to receive significant management attention.
On behalf of the board
BL Sibiya P Stuiver
Chairman Chief executive officer
10 May 2010
DIVIDEND ANNOUNCEMENT
Notice is hereby given that interim ordinary dividend number 213 of 45 cents
per share has been declared in respect of the six months ended 31 March 2010.
This dividend will be paid out of profits as determined by the directors.
The important dates pertaining to this dividend for shareholders trading on
the JSE Limited are as follows:
Last day to trade "CUM" dividend Friday, 28 May 2010
Shares trade "EX" dividend Monday, 31 May 2010
Record date Friday, 4 June 2010
Payment date Monday, 7 June 2010
Share certificates may not be dematerialised or rematerialised between
Monday, 31 May 2010 and Friday, 4 June 2010, both days inclusive.
Transfers between the South African register and Zimbabwean register may not
take place between Friday, 28 May and Friday, 4 June 2010.
ZIMBABWE
The important dates pertaining to this dividend for shareholders trading on
the Zimbabwe Stock Exchange are as follows:
Shares trade "EX" dividend Monday, 31 May 2010
Last day to register to Friday, 4 June 2010
receive the dividend
Payment date on or shortly after Monday, 7 June 2010
The register of members in Zimbabwe will be closed from Monday, 31 May 2010
to Friday, 4 June 2010, both days inclusive, for the purpose of determining
those shareholders to whom the dividend will be paid.
The dividend payable to shareholders registered in Zimbabwe will be paid in
SA rand.
By order of the board
JHDLR Snyman
Group company secretary
10 May 2010
PRETORIA PORTLAND CEMENT COMPANY LIMITED
(Incorporated in the Republic of South Africa)
(Company registration number: 1892/000667/06)
JSE code: PPC
JSE ISIN: ZAE000125886
ZSE code: PPC
ZSE ISIN: ZWE000096475
DIRECTORS
BL Sibiya (Chairman), P Stuiver* (Chief executive officer), S Abdul Kader, RH
Dent, P Esterhuysen, SG Helepi, ZJ Kganyago, AJ Lamprecht, NB Langa-Royds, MP
Malungani, TDA Ross, J Shibambo, JS Vilakazi *Dutch
REGISTERED OFFICE
180 Katherine Street, Sandton South Africa
PO Box 787416
Sandton, 2146
South Africa
TRANSFER SECRETARIES
Link Market Services SA (Pty) Limited
11 Diagonal Street, Johannesburg
South Africa
PO Box 4844, Johannesburg, 2000
South Africa
TRANSFER SECRETARIES: Zimbabwe
Corpserve (Private) Limited
4th Floor, Intermarket Centre
Corner First Street/Kwame Nkrumah Avenue
Harare, Zimbabwe
PO Box 2208, Harare, Zimbabwe
Sponsor
Merrill Lynch South Africa (Pty) Limited
DISCLAIMER
This document including, without limitation, those statements concerning the
demand outlook, PPC`s expansion projects and its capital resources and
expenditure, contain certain forward-looking views. By their nature, forward-
looking statements involve risk and uncertainty and although PPC believes
that the expectations reflected in such forward-looking statements are
reasonable, no assurance can be given that such expectations will prove to
have been correct. Accordingly, results could differ materially from those
set out in the forward-looking statements as a result of, among other
factors, changes in economic and market conditions, success of business and
operating initiatives, changes in the regulatory environment and other
government action and business and operational risk management. While PPC
takes reasonable care to ensure the accuracy of the information presented,
PPC accepts no responsibility for any consequential, indirect, special or
incidental damages, whether foreseeable or unforeseeable, based on claims
arising out of misrepresentation or negligence arising in connection with a
forward-looking statement. This document is not intended to contain any
profit forecasts or profit estimates.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Six months ended Year ended
31 March 31 March 30 Sept
2010 2009 2009
Unaudited Unaudited % Audited
Rm Rm Change Rm
Revenue 3 421 3 261 5 6 783
Cost of sales (1 989) (1 956) 2 (3 897)
Gross profit 1 432 1 305 10 2 886
Administration and net (307) (205) 50 (468)
operating expenditure
Operating profit before items 1 125 1 100 2 2 418
listed below
BBBEE IFRS 2 charges (6) (487) (99) (490)
Take-on gain arising from - - 213
consolidation of Porthold
Operating profit 1 119 613 82 2 141
Fair value losses on (8) (9) (6)
financial instruments
Finance costs (176) (171) 3 (357)
Investment income 20 39 (49) 65
Profit before exceptional 955 472 102 1 843
items
Share of associates` retained 3 4 7
profit
Profit before taxation 958 476 101 1 850
Taxation (352) (363) (3) (722)
Profit for the period 606 113 436 1 128
Attributable to:
Ordinary shareholders 551 103 435 1 024
Other shareholders (refer 55 10 450 104
note 5)
606 113 436 1 128
Profit for the period 606 113 1 128
Other comprehensive income, (53) (6) (18)
net of taxation
Effect of translation of (20) 2 (14)
foreign operations
Effect of cash flow hedges (32) (10) (7)
Revaluation of investment in - - 213
non-consolidated subsidiary
(refer note 10)
Take-on gain arising from - - (213)
consolidation of Porthold
Revaluation of available-for- - - 2
sale financial investments
Taxation on other (1) 2 1
comprehensive income
Total comprehensive income 553 107 417 1 110
Earnings per share (cents)
- basic 115.3 20.7 457 210.1
- diluted 114.6 20.6 456 209.1
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
Six months ended Year ended
31 March 31 March 30 Sept
2010 2009 2009
Unaudited Unaudited Audited
Rm Rm Rm
Total equity
Balance at beginning of the 915 1 713 1 713
period
Total comprehensive income 553 107 1 110
Dividends paid (823) (956) (1 195)
Treasury shares purchased by (3) - -
Porthold Trust (Private) Limited
(refer note 8)
Treasury shares on consolidation
of Porthold Trust (Private)
Limited
(refer note 8) - - (18)
642 864 1 610
BBBEE transaction impact as
below:
Issue of PPC Company Limited - 5 5
shares (refer note 8)
Treasury shares held by the - (1 190) (1 190)
BBBEE trusts and funding SPVs
(refer note 8)
BBBEE IFRS 2 charges 6 487 490
Balance at end of the period 648 166 915
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
31 March 31 March 30 Sept
2010 2009 2009
Unaudited Unaudited Audited
Rm Rm Rm
ASSETS
Non-current assets 4 354 3 498 4 195
Property, plant and equipment 4 071 3 114 3 941
Intangible assets 71 18 53
Investment in non-consolidated - 260 -
subsidiary
Other non-current financial 140 90 135
assets
Investment in associates 72 16 66
Current assets 1 731 1 713 1 624
Inventories 621 482 557
Trade and other receivables 889 857 819
Cash and cash equivalents 221 374 248
Total assets 6 085 5 211 5 819
EQUITY AND LIABILITIES
Capital and reserves
Share capital and premium (1 091) (1 070) (1 088)
Other reserves 108 163 150
Retained profit 1 631 1 073 1 853
Total equity 648 166 915
Non-current liabilities 3 424 3 174 3 366
Deferred taxation liabilities 480 340 469
Long-term borrowings 2 624 2 627 2 628
Provisions and other non-current 320 207 269
liabilities
Current liabilities 2 013 1 871 1 538
Short-term borrowings 1 348 1 237 764
Trade and other payables and 665 634 774
provisions
Total equity and liabilities 6 085 5 211 5 819
Net asset value per share 123.0 31.0 173.7
(cents)
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Six months ended Year ended
31 March 31 March 30 Sept
2010 2009 2009
Unaudited Unaudited Audited
Rm Rm Rm
Cash flow from operating
activities
Operating cash flows before 1 268 1 258 2 735
movements in working capital
Net increase in working capital (171) (232) (133)
Cash generated from operations 1 097 1 026 2 602
Net finance costs paid (99) (97) (229)
Taxation paid (407) (398) (645)
Cash available from operations 591 531 1 728
Dividends paid (823) (956) (1 195)
Net cash (outflow)/inflow from (232) (425) 533
operating activities
Acquisition of property, plant (331) (396) (1 018)
and equipment and other
movements
Acquisition of treasury shares (3) - -
by Porthold Trust (Private)
Limited
Acquisition of treasury shares - (1 190) (1 190)
held by the consolidated BBBEE
trusts and funding SPVs
Net cash outflow from investing (334) (1 586) (2 208)
activities
Net cash inflow from financing 539 2 161 1 656
activities
Net (decrease)/increase in cash (27) 150 (19)
and cash equivalents
Cash and cash equivalents at 248 224 224
beginning of the period
Cash acquired on consolidation - - 43
of Porthold
Cash and cash equivalents at end 221 374 248
of the period
Cash earnings per share (cents) 112.2 101.4 328.6
NOTES
1. Basis of preparation
This unaudited interim report has been prepared using accounting policies
compliant with International Financial Reporting Standards (IFRS) and is in
compliance with IAS 34: Interim Financial Reporting, the JSE Limited`s
listing requirements and the South African Companies Act. The accounting
policies and methods of computation used are consistent with those applied in
the preparation of the annual financial statements for the year ended 30
September 2009 except where the group has adopted new or revised accounting
standards and interpretations of those standards.
The group has adopted the following revised accounting standards, amendments
and interpretations, in the current period, which did not have an impact on
the reported results:
IFRS 2 Share-based Payments (Scope of IFRS 2 and revised IFRS 3)
IFRIC 9 Reassessment of Embedded Derivatives (Scope of IFRIC 9 and revised
IFRS 3)
IFRIC 16 Hedges of a Net Investment in a Foreign Operation (Amendment to the
restriction on the entity that can hold hedging instruments)
31 March 31 March 30 Sept
2010 2009 2009
Unaudited Unaudited Audited
Rm Rm Rm
2. Profit before taxation
Included in profit before
taxation are:
Amortisation of intangible assets (3) (3) (6)
Depreciation (168) (142) (309)
BBBEE consultation fees expensed - (8) (9)
Dividends paid to BBBEE trusts (5) (5) (7)
treated as an expense
3. Finance costs
Bank and other borrowings (121) (137) (264)
BBBEE funding transaction (55) (32) (91)
Finance lease interest (3) (4) (8)
Unwinding of discount on (8) (5) (11)
rehabilitation provisions
(187) (178) (374)
Interest capitalised to plant and 11 7 17
equipment
(176) (171) (357)
4. Earnings per share and headline
earnings per share
Earnings per share (cents)
(excluding BBBEE IFRS 2 charges
and take-on gain arising from
consolidation of Porthold)
- basic 116,3 105,8 257,3
- diluted 115,6 105,4 256,1
Headline earnings per share
(cents)
- basic 115,0 20,4 169,9
- diluted 114,3 20,3 169,1
Headline earnings per share
(cents) (excluding BBBEE IFRS 2
charges)
- basic 116,0 105,4 256,8
- diluted 115,3 105,0 255,6
Determination of headline
earnings per share (cents)
Earnings per share 115,3 20,7 210,1
Adjusted for:
- Profit on disposal of property, (0,4) (0,5) (0,9)
plant and equipment and
intangible assets
- Taxation on profit on disposal 0,1 0,2 0,2
of property, plant and equipment
and intangible assets
- Take-on gain arising from - - (39,5)
consolidation of Porthold
Headline earnings per share 115,0 20,4 169,9
- BBBEE IFRS 2 charges 1,1 89,2 91,1
(attributable to ordinary
shareholders)
- Taxation on BBBEE IFRS 2 (0,1) (4,2) (4,2)
charges (attributable to ordinary
shareholders)
Headline earnings per share 116,0 105,4 256,8
(excluding BBBEE IFRS 2 charges)
Headline earnings (Rm)
Profit for the period 551 103 1 024
attributable to ordinary
shareholders
Profit on disposal of property, (2) (3) (4)
plant and equipment and
intangible assets
Taxation on profit on disposal of 1 1 1
property, plant and equipment and
intangible assets
Take-on gain arising from - - (193)
consolidation of Porthold
(attributable to ordinary
shareholders)
Headline earnings 550 101 828
BBBEE IFRS 2 charges 5 442 444
(attributable to ordinary
shareholders)
Taxation on BBBEE IFRS 2 charges - (21) (21)
(attributable to ordinary
shareholders)
Headline earnings (excluding 555 522 1 251
BBBEE IFRS 2 charges)
5. Reconciliation of weighted
average number of ordinary shares
in issue (000)
Number of shares in issue 537 612 537 612 537 612
Less: Share buy-back completed in (20 140) (20 140) (20 140)
2008
Less: Shares held by consolidated (37 991) (22 336) (30 185)
BBBEE trusts and funding SPVs
Less: Shares held by consolidated (1 233) - -
Porthold Trust (Private) Limited
Add: Shares issued to the BBBEE 48 558 28 548 38 580
CSG and SBP funding SPVs
Weighted average number of shares 526 806 523 684 525 867
used for cash earnings per share
Less: Shares issued to the BBBEE (48 558) (28 548) (38 580)
CSG and SBP funding SPVs*
Weighted average number of shares 478 248 495 136 487 287
used for basic earnings per share
calculation
Add: Dilutive adjustment for 2 987 1 717 2 342
potential ordinary shares
Weighted average number of shares 481 235 496 853 489 629
used for dilutive earnings per
share calculation
Shares are weighted for the period in which they are entitled to
participate in the profit of the group.
For additional information refer note 8.
* Treated as a separate class of shares for earnings per share
calculations as these shares have restrictions on transferability,
and are subject to a call option by PPC to purchase these shares at
par on 15 December 2016.
Relates to share-based payment grants made to BBBEE trusts and
trust funding SPVs which is treated in a manner similar to an
option.
CSG : Community Service Groups; SBP : Strategic Black Partners; Also
refer notes 8 and 11.
6. Dividend per share (cents)
- final - - 155
- interim 45 45 45
45 45 200
7. Cash earnings per share (cents)
- basic 112,2 101,4 328,6
Cash earnings per share is
calculated using cash available
from operations divided by the
weighted average number of shares
in issue for the period (refer
note 5).
8. Share capital and premium
Issued share capital
Ordinary shares
478 331 529 (March 2009 and 48 52 52
September 2009: 517 471 989)
ordinary shares in issue at
beginning of the period
Nil (March 2009 and September - (4) (4)
2009: 37 991 204) treasury shares
held by the consolidated BBBEE
trusts and trust funding SPVs*
135 300 (March 2009: Nil and - - -
September 2009: 1 149 256)
treasury shares held by Porthold
Trust (Private) Limited
478 196 229 (March 2009: 479 480 48 48 48
785 and September 2009: 478 331
529) ordinary shares in issue at
end of the period
Other shares
48 557 982 (March 2009 and 5 5 5
September 2009: 48 557 982) other
shares issued to the BBBEE CSG
and SBP funding SPVs
526 754 211 (March 2009: 528 038 53 53 53
768 and September 2009: 526 889
511) shares in issue at end of
the period
Share premium (1 144) (1 123) (1 141)
Balance at beginning of the (1 141) 63 63
period
Adjustment for treasury shares - (1 186) (1 186)
held in respect of the BBBEE
transaction*
Treasury shares held by - - (18)
consolidated Porthold Trust
(Private) Limited
Additional shares purchased by (3) - -
consolidated Porthold Trust
(Private) Limited
Total issued share capital and (1 091) (1 070) (1 088)
premium
Net of treasury shares
* In terms of IFRS SIC Interpretation 12 (Consolidation - Special
Purpose Entities), The PPC Black Managers Trust, The Current PPC
Team Trust, The Future PPC Team Trust, The PPC Black Independent Non-
executive Directors Trust and the trust funding SPVs are
consolidated, and as a result, shares owned by the entities are
carried as treasury shares on consolidation.
Following PPC gaining effective control of Porthold with effect
from 30 September 2009, the PPC shares owned by Porthold Trust
(Private) Limited have been carried as treasury shares on
consolidation. The trust has purchased an additional 135 300 shares
during the period under review.
9. Group segment analysis
Revenue
Cement 2 943 2 900 5 948
Lime 338 239 544
Aggregates 143 124 296
3 424 3 263 6 788
Less: Inter-segment revenue (3) (2) (5)
Total revenue 3 421 3 261 6 783
EBITDA
Cement 1 169 1 173 2 536
Lime 95 46 121
Aggregates 37 31 84
Other (5) (5) (8)
EBITDA (excluding BBBEE IFRS 2 1 296 1 245 2 733
charges and take-on gain arising
from consolidation of Porthold)
Operating profit
Cement 1 019 1 048 2 263
Lime 80 31 91
Aggregates 31 26 72
Other (5) (5) (8)
Operating profit (excluding BBBEE 1 125 1 100 2 418
IFRS 2 charges and take-on gain
arising from consolidation of
Porthold)
BBBEE IFRS 2 charges (6) (487) (490)
Take-on gain arising from - - 213
consolidation of Porthold
Operating profit 1 119 613 2 141
Assets
Cement 5 412 4 649 5 227
Lime 458 338 392
Aggregates 211 171 196
Other 4 53 4
Total assets 6 085 5 211 5 819
Refer note 10 for further
information relating to Porthold.
10. Consolidation of Portland
Holdings Limited (Porthold)
Property, plant and equipment and - - 510
intangibles
Investment in PPC shares listed - - 18
on Zimbabwe Stock Exchange
Current assets - - 165
Long-term provisions and deferred - - (181)
taxation
Trade and other payables - - (39)
- - 473
Carrying value before - - 260
consolidation
Take-on gain arising from - - 213
consolidation of Porthold
Due to the improvement in the Zimbabwean macroeconomic conditions
following the significant changes announced by the Zimbabwean
government during the 2009 year, the directors of PPC were of the
opinion that the requirements for effective control over Porthold,
in terms of the definition and requirements of IAS 27 (Consolidated
and Separate Financial Statements) were satisfied, and accordingly
Porthold was consolidated from 30 September 2009, the effective
date. The changes made removed many of the distortions that existed
in the Zimbabwean economy, which included unrealistic local market
cement price realisations, not receiving the full benefit of export
proceeds, exchange rate uncertainty and foreign currency
restrictions, shortage of inputs and the effects of extreme
hyperinflation.
The carrying value of the investment in Porthold at the effective
date was R260 million. In terms of International Financial Reporting
Standards (IFRS 3 (revised 2008), Business Combinations) the
effective date fair value of Porthold was determined at R473
million, and the appropriate balance sheet values of Porthold were
included in the PPC consolidated balance sheet from the effective
date. The resultant take-on gain of R213 million was recognised in
the statement of comprehensive income and excluded from headline
earnings.
The impact of the consolidation of Porthold on the group`s results
is:
Earnings and headline earnings 15,7 - -
per share (cents)
Included above is a positive 3.6 cents per share impact following
changes in taxation rates.
11. Borrowings
- Long-term* 1 517 1 517 1 517
- Finance lease liability 41 55 42
- Preference shares 131 152 143
1 689 1 724 1 702
BBBEE funding transaction
935 903 926
Long-term borrowings 2 624 2 627 2 628
Short-term borrowings and short- 1 348 1 237 764
term portion of long-term
borrowings
Total borrowings 3 972 3 864 3 392
* Comprises a bullet loan advanced by the BBBEE CSG and SBP funding
SPVs, bearing interest at a fixed rate of 10,86% p.a. This loan is
repayable on 15 December 2016, with interest payable semi-annually.
Redeemable preference shares bearing semi-annual dividends, with
variable interest rates linked to prime, and fixed rates between
8,34% to 9,37% p.a. with repayment dates varying between 5 - 8
years.
Redeemable preference shares bearing semi-annual dividends, with
variable interest rates linked to prime, and fixed rates between
8,91% and 9,62% p.a. with repayment dates varying between 5 - 8
years, and loans bearing interest, after giving effect to fixed-for-
variable interest rates swaps, at a rate of 11,20% p.a., with
interest and capital repayable on 15 December 2013.
In terms of IFRS, these long-term borrowings have been consolidated
as Pretoria Portland Cement Company Limited has provided guarantees
for funding that had an outstanding balance of R912 million as at 31
March 2010 (March 2009: R862 million and September 2009: R879
million).
The company`s borrowing powers are not restricted.
12. Commitments
- Contracted capital commitments 289 315 189
- Approved capital commitments 428 589 250
Capital commitments 717 904 439
Operating lease commitments 33 35 29
750 939 468
These commitments will be met from existing cash resources and
borrowing facilities available to the group.
13. Post-balance sheet events
There are no post-balance sheet events that may have an impact on
the group`s reported financial position at 31 March 2010.
These results and other information are available on the PPC website:
www.ppc.co.za
Date: 11/05/2010 07:05:24 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.
