| Mon 24 May 2010, 17:46 | | IRA - Infrasors - Reviewed Condensed Group Consolidated Results For The Year |
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IRA
IRA
IRA - Infrasors - Reviewed Condensed Group Consolidated Results For The Year
Ended 28 February 2010
INFRASORS HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 2007/002405/06)
Share code on the JSE: IRA ISIN: ZAE000101507
("Infrasors", "the Company" or "the Group")
Reviewed Condensed Group Consolidated Results
For the year ended 28 February 2010
CONDENSED GROUP STATEMENT OF COMPREHENSIVE INCOME
Represented*
Reviewed Audited
year ended year ended
28 February 28 February
2010 2009
Notes R000`s R000`s
Continuing operations
Revenue 211 479 217 829
Profit from operating activities 34 870 42 134
Depreciation and amortisation (7 673) (6 504)
Net finance costs (4 723) 587
Profit before tax and separately
disclosed items 22 474 36 217
Fair value adjustments 3 39 127 -
Profit before taxation 61 601 36 217
Income tax expense (8 759) (8 135)
Profit for the year from continuing operations 52 842 28 082
Discontinued operations
(Loss)/profit for the year from
discontinued operations 4 (22 800) 1 996
Profit for the year 30 042 30 078
Other comprehensive income
Net gain on revaluation of property,
plant and equipment 3 6 150 -
Total comprehensive income for the year 36 192 30 078
Earnings/(loss) per share (cents) 5 17.4 17.0
Diluted 17.4 17.0
From continuing operations 30.6 15.9
Diluted 30.6 15.9
From discontinued operations (13.2) 1.1
Diluted (13.2) 1.1
*The 2009 results contain certain amounts that have been reclassified to
conform with the current period`s discontinued operations presentation, in
accordance with International Financial Reporting Standards ("IFRS").
CONDENSED GROUP STATEMENT OF FINANCIAL POSITION
Reviewed Audited
as at as at
28 February 28 February
2010 2009
Notes R000`s R000`s
Non-current assets 491 728 454 172
Property, plant and equipment 280 695 288 672
Mineral rights 72 500 72 500
Goodwill 4 - 16 949
Investments 7 000 7 000
Investment property 3 56 780 -
Deferred tax 3 001 171
Other financial assets 71 752 68 880
Current assets 84 776 111 970
Inventories 17 092 16 240
Cash resources 22 610 51 200
Other current assets 45 074 44 530
Assets of discontinued operation 12 983 -
Total assets 589 487 566 142
Capital and reserves 395 823 359 631
Share capital and premium 247 715 247 715
Revaluation reserve 3 6 150 -
Retained income 141 958 111 916
Non-current liabilities 139 039 156 308
Borrowings 70 287 98 809
Environmental rehabilitation provision 13 657 14 030
Deferred taxation 55 095 43 469
Current liabilities 50 351 50 203
Borrowings 17 941 17 167
Taxation payable 1 1 976
Other current liabilities 32 409 31 060
Liabilities of discontinued operations 4 274 -
Total equity and liabilities 589 487 566 142
Net asset value per share (cents) 6 228.8 207.9
Net number of shares in issue (000`s) 172 978 172 978
CONDENSED GROUP STATEMENT OF CASH FLOWS
Reviewed Audited
year ended year ended
28 February 28 February
2010 2009
R000`s R000`s
Cash flows from operations 38 635 57 101
Dividends paid - (21 208)
Interest paid (9 846) (9 987)
Interest received 2 969 10 174
Taxation paid (5 518) (10 722)
Cash flows from operating activities 26 240 25 358
Cash flows from investing activities (30 416) (58 406)
Cash flows from financing activities (24 410) 24 523
Net decrease in cash and cash equivalents (28 586) (8 525)
Cash and cash equivalents at the beginning of
the year 51 200 59 725
Cash and cash equivalents at the end of the year 22 614 51 200
Continuing operations
Cash and cash equivalents at the end of the year 22 610 51 643
Discontinued operations
Cash and cash equivalents at the end of the year 4 (443)
GROUP STATEMENT OF CHANGES IN SHAREHOLDERS` EQUITY
Reviewed Audited
year ended year ended
28 February 28 February
2010 2009
R000`s R000`s
Share capital 865 865
Balance at the beginning of the period 865 888
Treasury shares acquired by subsidiary - (23)
Share premium 246 850 246 850
Balance at the beginning of the period 246 850 251 327
Treasury shares acquired by subsidiary - (4 477)
Revaluation reserve 6 150 -
Balance at beginning of period - -
Revaluation of property, plant and equipment
included in total comprehensive income 6 150 -
Retained earnings 141 958 111 916
Balance at the beginning of the period 111 916 103 312
Dividends paid (dividends paid per share 12 cents) - (21 208)
Deferred taxation on rehabilitation investments - (266)
Profit for the year included in total
comprehensive income 30 042 30 078
Balance at end of the period 395 823 359 631
SEGMENTED CONSOLIDATED RESULTS
Sand Aggregate Bricks
R000`s R000`s R000`s
28 February 2010
Turnover from external customers 73 817 133 232 -
Inter-segment revenues - - -
Net profit before tax 13 858 20 210 -
Additions to non-current assets 12 749 21 325 -
28 February 2009
Turnover from external customers 90 733 116 485 32 499
Discontinued operations - - 32 499
Continuing operations 90 733 116 485 -
Inter-segment revenues - - -
Discontinued operations - - -
Continuing operations - - -
Net profit before tax 22 332 19 127 4 196
Discontinued operations - - 4 196
Continuing operations 22 332 19 127 -
Additions to non-current assets 29 900 11 530 2 532
Other Total
R000`s R000`s
28 February 2010
Turnover from external customers - 207 049
Inter-segment revenues 11 772 11 772
Net profit before tax 27 533 61 601
Additions to non-current assets 117 34 191
28 February 2009
Turnover from external customers - 239 717
Discontinued operations - 32 499
Continuing operations - 207 218
Inter-segment revenues 7 400 7 400
Discontinued operations 200 200
Continuing operations 7 200 7 200
Net profit before tax (6 666) 38 989
Discontinued operations (1 424) 2 772
Continuing operations (5 242) 36 217
Additions to non-current assets 1 658 45 620
MANAGEMENT COMMENTARY
DEFINITION OF TERMS
Terms used in the following announcement have the following meanings:
(i) F2009 - means the financial 12 months ended 28 February 2009;
(ii) F2010 - means the financial 12 months ended 28 February 2010;
(iii) F2011 - means the financial 12 months ending 28 February 2011; and
(iv) PPE - means Property, plant and equipment.
Infrasors
Infrasors is a South African holding company, mining and beneficiating a spread
of base minerals for industry and construction.
The principal Infrasors subsidiaries are:
- Lyttelton Dolomite, which is involved in mining and beneficiating dolomite
and limestone, metallurgical and construction aggregate, sand and powders for
the industrial, coal mining and construction sectors. This is conducted through
its Lyttelton Dolomite Centurion and Marble Hall mines;
- Delf Sand, which undertakes mining and beneficiation (washing, sizing, drying
and transporting) of high grade silica sand for the glass, foundry industry,
tile adhesive market, building, construction and the leisure sectors. This is
being conducted through its Delf Sand mine and its new facility, Delf Tongaat,
currently being established in KwaZulu-Natal;
- to be developed as an extension to the current Delf Sand operation is the
Pienaarspoort Silica Quartz mine. This is a hard rock silica quartz mining
project with the beneficiation of a high grade silica aggregate and sand for
the iron and steel, glass, filter and leisure industries; and
- corporate head office, which is responsible for strategy, risk management and
administration. It is also the provider of shared services across common
business functions such as finance, IT and human resources, centralised
procurement, capital expenditure, growth and replacement projects.
Financial review
Revenue for the period under review was R211.5 million (F2009: R217.8 million),
profit from continuing operating activities was R34.9 million (F2009: R42.1
million), a decrease of R7.2 million.
The profit before taxation for continuing operations for the period under
review, was R61.6 million (F2009: R36.2 million), which included adjustments to
fair value of R39.1 million. The analysis of turnover and profit before tax on
a segmented basis is detailed herein.
Cash of R38.6 million (F2009: R57.1 million) was generated by operations, prior
to net finance cost of R6.9 million (F2009: net finance income R0.2 million)
and taxation paid of R5.5 million (F2009: R10.7 million), before outflow of
investments of R30.4 million (F2009: R58.4 million), and outflow of financing
activities of R24.4 million (F2009: inflow R24.5 million).
Capital expenditure of R34.2 million (F2009: R45.6 million) was incurred in the
year under review, reflecting an ongoing investment by the Group in plant
infrastructure and development of mineral reserves.
Salient capital expenditure items at Lyttelton Dolomite Centurion mine included
the refurbishment of the primary crusher, the installation and commissioning of
an additional aggregate sizing plant (Lunar plant) and mine development. At
Marble Hall capital expenditure included the refurbishment of the primary
crusher and mine development.
Delf Sand continued with refurbishment of the older sand driers and began with
the establishment of its facility in KwaZulu-Natal. Delf Sand incurred capital
expenditure in furthering the development of the Pienaarspoort Silica Quartz
mining asset and also in the preparation of the Cullinan mining asset.
The capital expenditure was made up as follows for the period under review:
Reviewed Audited
year ended year ended
28 February 28 February
2010 2009
R000`s R000`s
2010 2009
R000`s R000`s
Lyttelton Dolomite 21 325 11 530
Delf Sand 10 818 24 400
Pienaarspoort 1 931 5 500
Corporate office 117 1 658
Continuing operations 34 191 43 088
Discontinued operations
Infrabric - 2 532
Total 34 191 45 620
Operational review
Health and Safety
The Group`s Occupational Health and Safety initiative towards a "Zero Harm"
philosophy continued to gain momentum with the appointment of a Group Health,
Safety and Environment Manager.
An unwavering drive was taken towards improving safety procedures and systems
on all three mines. Regrettably two lost time injuries occurred, one at
Infrabric brick plant and the other at Marble Hall mine, however frequency
rates, which are calculated using the industry standard Lost Time Injury
Frequency Rate ("LTIFR") per 200 000 hours worked, indicate improvement in
Health and Safety awareness on all three mines compared to the previous year.
The current LTIFR for the Group is 0.24.
Lyttelton Dolomite Centurion and Marble Hall mines
Lyttelton Dolomite produced 951 022 tons of dolomite from the Lyttelton
Dolomite Centurion mine during the year under review (F2009: 922 863 tons), an
increase of 28 159 tons (3.1%). At the Marble Hall mine, production amounted to
251 379 tons (F2009: 204 999 tons) of limestone, an increase of 46 380 tons
(22.6%).
As part of the pit expansion programme to open up and develop the southern and
western portions of the Centurion mine, over-burden was removed, totalling 288
460 tons (F2009: 188 133 tons), which forms part of the pit`s future expansion
of its mining area. Similarly pit expansion activities at Marble Hall mine,
resulted in over-burden removal totaling 73 901 tons (F2009: 71 594 tons).
Lyttelton`s turnover was R133.2 million for the period under review (F2009:
R116.5 million). Lyttelton`s profit before tax was R20.2 million
(F2009: R19.1 million), an increase of 5.8%.
The primary crusher at Lyttelton Dolomite Centurion mine required refurbishment
which was conducted over a three week period and resulted in higher than
expected repair and maintenance costs. The new aggregate sizing plant (Lunar
plant) was successfully built and commissioned in February 2010 providing
additional capacity and flexibility in its operations.
The management team has been bolstered by the appointment of a new managing
director and restructuring of the production team during the last quarter of
the year. This will result in improved efficiencies and enhanced sales being
achieved. Due to the demand cycles the sales mix of products tended to be
inversely correlated as the metallurgical market volumes returned and
construction aggregate demand flattened.
Delf Sand mine
Delf Sand sold 269 330 tons of silica in the period under review (F2009: 337
130 tons), a reduction of 67 800 tons (20.1%).
Delf Sand`s turnover was R73.8 million (F2009: R90.7 million), and contributed
R13.9 million (F2009: R22.3 million) to Group profit before tax , a reduction
of 37.7%.
Delf Sand experienced decline in the foundry off-take volumes which fell
sharply at the beginning of the year and remained depressed for much of the
year. Overall the sales volume to the foundry market was down by 36% compared
to F2009. Likewise golf and leisure markets decreased during this period by
53%. The mine was able to successfully enter the tile adhesive market and has
become a recognised supplier of quality silica sand. The volume supplied into
the tile adhesive market has seen a healthy increase of 28% compared to the
previous year.
Refurbishment of the existing sand drying plants were carried out during the
year ensuring that the Delf Sand operation is able to meet the demands of both
the foundry and tile adhesive markets, when full market demand is restored.
As part of the plans to increase Delf Sand`s national footprint, construction
of the KwaZulu-Natal facility at Tongaat has commenced. This will serve the
local foundry and tile adhesive markets and will concurrently provide a
superior service to customers in that region.
Infrabric
Infrabic was discontinued as an operation on 30 November 2009. Prior to its
closing down, Infrabric contributed R9.5 million (F2009: R32.5 million) to
Group turnover. The decrease in turnover was a result of weak market conditions
and the planned discontinuation of the operation.
The decision to discontinue the operation was approved by the board for the
following reasons:
low sales due to the depressed building and construction sectors;
low levels of available ash dump supply at the operations site in Kempton
Park; and
expected high future rental increases.
As a result of the discontinuation of the brick plant, goodwill was impaired by
R16.9 million and PPE was impaired by R6.0 million.
Mining assets, mining licenses and mineral reserves
New order mining rights have been granted and executed for the alluvial Delf
Sand mine and the Pienaarspoort Silica Quartz mine, which includes the alluvial
Pienaarspoort deposit. Currently all the mining rights are in the process of
being registered.
The Lyttelton Dolomite Centurion and Marble Hall mines new order mining right
conversion applications were submitted to the DMR before the May 2009 deadline.
New order prospecting right applications have been submitted in respect of the
Cullinan property and the southern extensions to the existing Marble Hall mine.
A small scale mining permit was granted and executed for a portion of the farm
bordering the Cullinan property. The permit is in the process of being
registered.
Further drilling of the Delf S and ore body is currently being undertaken and
an increase in the reserve is anticipated.
Outlook - Infrasors Group
The products and services supplied by the Infrasors Group broadly form part of
the industrial minerals supply chain and are directly and immediately affected
by overall demand in the base minerals and manufacturing economy. Consequently
Infrasors was directly and immediately affected by the demand slump which
manifested in F2009 and continued in F2010. Infrasors is equally
well-positioned to respond to the anticipated gradual upturn expected.
The anticipated end of the recession in the South African economy and the
lessening of global financial instability have resulted in the demand for
Infrasors products beginning to increase. The latter is particularly noticeable
with key clients in base metals industrial applications.
Capital expenditure projects and plant refurbishments have been designed to
expand production and reduce unit costs per ton mined and beneficiated at
Lyttelton Dolomite and Delf Sand. These have been implemented enabling greater
tonnage throughput per month once the economic recovery takes off.
Outlook - Lyttelton Dolomite
Lyttelton Dolomite Centurion mine - due to the management restructuring and the
commissioning of the new Lunar aggregate plant - the mine is well-positioned to
increase throughput and to focus on driving down unit costs. The mine has seen
a slow recovery of demand for its metallurgical sales after the slowdown in
off-take from the steel industries during F2009. Recent high sales of
construction aggregate due to infrastructural development is anticipated to
taper off. Powder markets remain liquid with high levels of orders received.
Marble Hall mine - operations continued efficiently at the mine. Sales have
been increasing steadily with higher off-take for metallurgical grade aggregate
having been secured for the year ahead and powder sales continue to have a
positive outlook . The mine is well-positioned to supply product utilised in
clean air initiatives with regard to power generation.
Outlook - Delf Sand
Delf Sand mine - a slow increase in foundry volumes has been experienced within
its core clients.
This trend is expected to continue and strengthen in the year ahead. The mine
is working closely with its tile adhesive customers to ensure that their
capacity and quality needs are met in this relatively new market. Volume
off-take in this sector is expected to remain steady for the year ahead.
Delf Tongaat - the new processing and distribution facility in KwaZulu-Natal
will play a key role in servicing the KwaZulu-Natal foundry and tile adhesive
sectors as it gains market share. This is in line with Delf Sand`s initiative
to expand its footprint to cover national silica markets.
Pienaarspoort Silica Quartz mine - with the mining licence having been granted
and executed, initial work will go into the bulk sample and securing sufficient
off-take agreements. Electrical supply of 1MVA to the mine is in the process of
being commissioned. Upon successful implementation of the mine plan, the
crushing and screening plant will be established.
NOTES TO THE CONDENSED CONSOLIDATED REVIEWED FINANCIAL STATEMENTS
1. Significant accounting policies
Infrasors is a company domiciled in South Africa. The condensed consolidated
reviewed financial statements of Infrasors for the year ended 28 February 2010
comprise the Company and its subsidiaries (together referred to as the
"Group").
The condensed consolidated reviewed financial statements were authorised for
issue by the directors on 21 May 2010.
1.1 Basis of preparation
The reviewed condensed consolidated results have been prepared in accordance
with the framework concepts and the measurement and recognition requirements of
the International The reviewed condensed consolidated results have been
prepared in accordance with the framework concepts and the measurement and
recognition requirements of the International Financial Reporting Standards
("IFRS") and containing information required by the International Accounting
Standards 34 - Interim Financial Reporting ("IAS 34"), the AC 500 Standard and
in the manner required by the Companies Act and the JSE Limited Listings
Requirements. The condensed consolidated reviewed financial statements do not
include all of the information required for full financial statements and
should be read in conjunction with the consolidated annual financial statements
for the year ended 28 February 2010. The Company envisages posting the annual
reports around the end of June 2010.
The estimates and underlying assumptions are reviewed on an ongoing basis.
Revisions to accounting estimates are recognised in the period in which the
estimate is revised if the revision affects only that period or in the period
of the revision and future periods if the revision affects both current and
future periods.
The accounting policies have been applied consistently by Group companies and
have been applied consistently to all periods presented in these condensed
consolidated reviewed financial statements.
2. Review of results
Mazars has signed an unqualified review opinion on the condensed consolidated
financial statements, as required by the JSE Limited. These financial
statements have been approved by the board and condensed for the purposes of
this report. The auditor review opinion is available for inspection at the
Company`s registered office.
3. Investment property adjustments
It is the intention of the Group to establish a township development and sell
off the land which has been classified as Investment property for capital
profits. The property was previously classified as - Land within the Group`s
statement of financial position, and was within the mining area.
Infrasors, through its wholly-owned subsidiary Delf Sand (Proprietary) Limited
("Delf"), is the owner of Portion 55 of the Farm Pienaarspoort 339 JR ("P.55"),
measuring in extent some 501 hectares ("the property").
Delf historically mined alluvial silica on the property and has explored and
established the mining area for the proposed Pienaarspoort Silica Quartz
crushing operation in the north eastern portion of the property. Alluvial
silica mining operations on the southern eastern portion of the property began
winding down in October 2009.
Consequently, with effect from 1 November 2009, this portion of land was
transferred from PPE Land used for mining purposes to PPE: Land
At 1 November 2009 the land was independently valued at R17.5 million resulting
in a gross revaluation of R7.2 million (less deferred tax of R1.0 million
resulting in a net revaluation of R6.2 million) on the historic cost of R10.4
million which was transferred to a revaluation reserve in anticipation of the
transfer of land from PPE to Investment properties.
Subsequently, the Infrasors board has commissioned a town planning feasibility
study by Hunter Theron Inc (Town and Regional Planners) with a view to
establishing a township on the property. The purpose of the study was to
ascertain if it is feasible to establish a township.
The township establishment process consists of three consecutive phases, these
being:
Phase I - assessment phase;
Phase II - preparation of the township development framework plan; and
Phase III - township establishment process.
Phase I has been completed and the consolidated findings of the town planners,
together with other consultants (land surveyors, conveyancers, geologists,
electrical engineer, civil engineer, traffic engineer and environmentalist)
have been submitted to Infrasors and are summarised below.
Summary of the development potential of Portion 55
P.55 consists of 501 hectares of which 152 hectares have development potential.
The potential of the site according to the Phase I feasibility study is as
follows:
Development area
- Developable area: 152.0 ha
- Roads 20%: +/-30.0 ha
- Remainder: 122.0 ha
Development split
- Residential 85%: 103.0 ha
- Alternative uses 15%: 19.0 ha
Residential split
- Freehold 70%: 72.0 ha
- Medium density 15%: 15.5 ha
- High density 15%: 15.5 ha
Residential potential
- Freehold erven: 2 520 erven
- Medium density: 775 units
- High density: 1 240 units
Total potential: 4 535 unit erven
Alternative uses/potential
- Business/Commercial/Offices/Industrial
- 15% (19.0 ha)
- Floor area ratio @ 0.6
Total development potential therefore 114 000 mSquared developable floor area.
General
The aforesaid is a theoretical calculation and should be regarded as such.
Final calculations can only be made once a detailed layout plan has been
compiled. Various aspects can influence the potential of the study and
therefore further detailed studies are required in this regard to accurately
determine the potential of the site. Pursuant to the Phase I assessment phase
of the "Township Establishment Feasibility Study", Infrasors appointed an
independent valuator to provide a market valuation of the property, based on a
"willing, able and informed seller and willing, able and informed buyer" market
value methodology.
The independent valuation of P.55 at 28 February 2010, taking into account the
land suitable for development based on a willing, able and informed buyer and a
willing, able and informed seller in an arm`s length negotiation, amounts to
R56.8 million which results in a fair value adjustment of R39.1 million.
Reviewed Audited
year ended year ended
28 February 28 February
2010 2009
R000`s R000`s
Original cost of land included in PPE 10 384 -
Revaluation of land 7 151 -
Revaluation reserve 6 150 -
Deferred tax on revaluation of land 1 001 -
Carrying value of PPE land transferred to
Investment properties 17 535 -
Costs capitalised to Investment properties 118 -
Fair value adjustment on Investment properties 39 127 -
Investment property: Fair value on 28 February
2010 56 780 -
4. Discontinued operations
Infrabric (Proprietary) Limited ("Infrabric"), ceased operations in November
2009 due to the depletion of the ash dump supply used in the production of
bricks at the operation`s location and the downturn in the brick market,
resulting in the operation becoming no longer viable. Consequently Infrabric`s
goodwill has been impaired by R16.9 million, and its plant and equipment, which
include the brick plants and mobile equipment, and has been impaired by R6.0
million.
Reviewed Audited
year ended year ended
28 February 28 February
2010 2009
R000`s R000`s
Revenue 9 477 32 499
Impairment write-down of goodwill (16 949) -
Impairment write-down of PPE (5 996) -
Other net operating profit from discontinued
operations 145 1 996
(Loss)/profit from discontinued operations (22 800) 1 996
Cash flow attributable to operating activities 2 297 (1 457)
Cash flow attributable to investing activities 1 910 (2 136)
Cash flow from financing activities (3 760) 3 256
Cash flow attributable to discontinued
operations 447 (337)
5. Earnings per share ("EPS")
EPS is based on the Group`s profit for the year ended 28 February 2010, divided
by the weighted average number of shares in issue during the 12-month period.
Weighted
average
2010 number of 2010
Net shares in Earnings
profit issue per share
R000`s 000`s Cents
Continued operations
Earnings per share 52 842 172 978 30.6
Diluted earnings per share 52 842 172 978 30.6
Discontinued operations
Earnings per share (22 800) 172 978 (13.2)
Diluted earnings per share (22 800) 172 978 (13.2)
Total operations
Earnings per share 30 042 172 978 17.4
Diluted earnings per share 30 042 172 978 17.4
Weighted
average
2009 number of 2009
Net shares in Earnings
profit issue per share
R000`s 000`s Cents
Continued operations
Earnings per share 28 082 177 131 15.9
Diluted earnings per share 28 082 177 131 15.9
Discontinued operations
Earnings per share 1 996 177 131 1.1
Diluted earnings per share 1 996 177 131 1.1
Total operations
Earnings per share 30 078 177 131 17.0
Diluted earnings per share 30 078 177 131 17.0
Headline earnings per share ("HEPS") reconciliation:
Basic and diluted
HEPS is based on the Group`s headline earnings divided by the weighted average
number of shares in issue during the year ended 28 February 2010.
Weighted
average 2010
2010 number of Headline
Net shares in earnings
profit issue per share
R000`s 000`s Cents
Net profit 30 042
Sale of assets 3
Impairments -
Discontinued operations 23 383
Investment property
adjustments (39 127)
Tax effect on headline
adjustments 10 832
Headline earnings per share 25 133 172 978 14.5
From continuing operations 24 673 172 978 14.2
From discontinued operations 460 172 978 0.3
Weighted
average 2009
2009 number of Headline
Net shares in earnings
profit issue per share
R000`s 000`s Cents
Net profit 30 078
Sale of assets (93)
Impairments 1 446
Discontinued operations -
Investment property
adjustments -
Tax effect on headline
adjustments (379)
Headline earnings per share 31 052 177 131 17.5
From continuing operations 29 056 177 131 16.4
From discontinued operations 1 996 177 131 1.1
6. Net asset value ("NAV") per share
The NAV per share is the value of the Group`s assets, less the sum of the value
of its liabilities, divided by the number of shares in issue.
Reviewed Audited
year ended year ended
28 February 28 February
2010 2009
Ordinary share capital and reserves (R000`s) 395 823 359 631
Total number of shares in issue (net of
treasury shares) (000`s) 172 978 172 985
NAV per share (cents) 228.8 207.9
Ordinary share capital and reserves (R000`s) 395 823 359 631
Mineral rights (72 500) (72 500)
Goodwill - (16 949)
Tangible net asset value 323 323 270 182
Total number of shares in issue (net of
treasury shares) (000`s) 172 978 172 985
Tangible NAV per share (cents) 186.9 156.2
7. Dividends
The directors have elected not to declare a dividend for the year ended 28
February 2010 in view of the current economic climate and the need for prudent
capital preservation.
8. Related party transactions
Reviewed Audited
year ended year ended
28 February 28 February
2010 2009
R000`s R000`s
Purchases between fellow subsidiary companies
Delf Sand purchases from Pienaarspoort 3 917 4 330
Delf Sand rentals from Delf Dredging 30 -
Delf Sand purchased assets from Infrabric 2 881 -
Lyttelton Dolomite purchased assets from Infrabric 567 -
Purchases from related parties are made at
normal market prices.
Management fees paid to Infrasors
Management fees were paid for services rendered
in the areas of administrative and
technical services 11 205 7 400
Payment is applied on the time apportionment basis.
Interest paid by subsidiaries to holding company
Infrabric - 1 093
Delf Sand 567 685
Contributions made to the Infrasors
Environmental Rehabilitation Trust
Lyttelton Dolomite 937 852
Delf Sand 434 -
Dividends received by subsidiary company
Infrasors Management Services - 132
Rent paid to Whirlprops 35 (Proprietary) Limited
Infrasors 550 475
9. Directorate and administration
Directors and executive officers
Trevor Robinson (Director and Chief Executive Officer)
Frans Liebenberg (Chief Operating Officer)
Marius Potgieter (Financial Director)
Stephen Courtney (Commercial Director)
Popo Molefe (Non-executive Director and Chairman of the Board)
Chris Boulle (Non-executive Director)
Mochele Noge (Non-executive Director)
Dereck Alexander (Non-executive Director)
David Nabarro*
(appointed 3 November 2010) (Non-executive Director and Deputy Chairman)
Kerry Colley (Company Secretary)
Apart from David Nabarro all of the above directors are South African and
resident in South Africa.
* British
Sponsor
Sasfin Capital
A division of Sasfin Bank Limited
Legal Advisers and Attorneys
HR Levin Attorneys Notaries and Conveyancers
Auditors
Mazars
Transfer Secretaries
Link Market Services South Africa (Proprietary) Limited
On behalf of the board
P Molefe (Chairman)
T Robinson (Chief Executive Officer)
VISIT US AT www.infrasors.co.za
"INFRASTRUCTURE BY INFRASORS"
Date: 24/05/2010 17:46:45 Produced by the JSE SENS Department.
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