| Thu 29 Aug 2002, 0:00 | | Wooltru Limited - Audited Group Results For The Ye |
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WOOLTRU LIMITED - AUDITED GROUP RESULTS FOR THE YEAR ENDED 30 JUNE 2002
Wooltru Limited
(Registration number: 1936/008278/06)
Audited group results for the year ended 30 June 2002
Share Code: WLO ISIN Code: ZAE000007993
Share Code: WLN ISIN Code: ZAE000008744
Share Code: WLOP ISIN Code: ZAE000008009
Share Code: WLP1 ISIN Code: ZAE000008017
UNBUNDLING
In September 2000, the board resolved to unbundle Wooltru`s listed investments
in specie to its shareholders, dispose of its non-listed investments and wind up
the company. The listed investments consisted of shares in Massmart Holdings
Limited ("Massmart"), Truworths International Limited ("Truworths") and
Woolworths Holdings Limited ("Woolworths").
The unlisted investments consisted of the CNA group, Topics, an extensive
portfolio of investment and development properties, loans to be recovered from
the Wooltru 1982 Executive Share Purchase Trust ("Share Purchase Trust"),
inthebag, an online internet shopping company selling Woolworths foods, Wooltru
Insurance Brokers and a 331/3% holding in Affinity Logic, a company supplying IT
systems and services to group companies.
The unbundling process has turned out to be extremely complex and has taken
longer than originally anticipated. By November 2000 it became apparent that
this was not going to be a "technical exercise". The severing of inter-group
relationships that had been created over many years proved difficult and time
consuming. In particular, certain property lease guarantees, with a face value
of close to R2 billion, had to be unwound before the unbundling of the listed
investments could be contemplated.
Another factor critical to the unbundling proved to be the post-unbundling
liquidity of Wooltru, especially its ability to fund its on-going commitments
until final voluntary liquidation. Group borrowings, which peaked at R550
million in February 2001, had to be covered through the disposal of non-listed
investments, without having to resort to the sale of any listed investments.
This has generated R750 million in the process.
Within the unbundling period, the introduction of Capital Gains Tax from 1
October 2001 brought additional challenges, particularly in relation to the
unbundling process, which created uncertainty that influenced the timing of the
unbundling.
However, all of these hurdles were eventually negotiated so that at a combined
general meeting of Ordinary shareholders, "N" Ordinary shareholders and
cumulative preference shareholders of Wooltru held on 10 June 2002, a special
resolution was adopted whereby a distribution in specie of Wooltru`s entire
holding in Massmart shares, Truworths shares and Woolworths shares to the
company`s Ordinary and "N" Ordinary shareholders was agreed. This distribution
duly took place on 26 June 2002.
With this distribution, the principal objective of the Wooltru unbundling was
successfully concluded. Assets with a market value of R4,1 billion were released
to shareholders in Wooltru which, at that date, had a residual market value of
R135,2 million. Not only did the unbundling unlock the discount inherent in the
Wooltru share price in relation to the underlying value of the Massmart,
Truworths and Woolworths shares held, but also enabled shareholders to assess
the value of the remaining assets of Wooltru.
INVESTMENT UPDATE
Shareholders are again reminded that the value of Wooltru is no longer primarily
related to its earnings potential but is a function of the net realisable value
of its remaining assets. The board accordingly considers it more relevant to
shareholders for the focus of this report to be on the value of the remaining
assets in Wooltru and the anticipated costs to be incurred, and liabilities to
be settled, before Wooltru can finally be wound up.
Wooltru`s remaining assets comprise properties, shares and loans related to the
Share Purchase Trust, cash, and amounts due to Wooltru relating to the sale of
CNA, Wooltru`s position in relation to which is explained more fully below.
Property
Property holdings, as at 26 August 2002, were valued by the directors at R22,0
million. Of this amount, signed sales agreements for R18,4 million have been
entered into and the properties in question are at various stages in the
transfer process. All transfers are expected to be completed, and payments
received, by 31 December 2002.
The unsold properties consist of prime office land in Bellville, Cape, and the
office building in Cape Town being used as the Wooltru head office. The sale of
both properties is currently under discussion with potential buyers.
Share Purchase Trust
Although the Share Purchase Trust was scheduled to continue until 2010, in order
to facilitate the Wooltru unbundling, agreements have been concluded with all
participants that will enable the Trust to be terminated at the end of September
2002.
The Share Purchase Trust has three components to it:
(i) Staff held shares: This represents shares sold to participants at market
values on various dates where there are commensurate loans due to the Share
Purchase Trust in payment for those shares. The agreement in place with this
class of participants is that they will repay to the Trust the lower of loan
value outstanding or market price of the shares held by them under the share
scheme as at the date of surrender which date shall not be later than 30
September 2002. This arrangement is consistent with past practice.
It is expected that the Share Purchase Trust will recover R24,1 million from
this component based on weighted average prices of Wooltru, Wooltru "N",
Massmart, Truworths and Woolworths shares as at 26 August 2002. This will result
in an under-recovery of R0,2 million in relation to the loan value.
(ii) Shares held under option: This represents shares that are the subject of
options at pre-determined prices, corresponding to the market prices of the
shares at the date the options were granted. This component will realise the
lower of the exercise price or share price, which at 26 August, is expected to
contribute R14,1 million to the Share Purchase Trust.
(iii) Trust held shares: These are surplus shares held in the Share Purchase
Trust where members have left the employ of Wooltru or have surrendered their
entitlements to the Trust for whatever reason. Value of this component, as at 26
August, was estimated to be R33,4 million.
In summary, the value of the Share Purchase Trust in its entirety as at the
ruling prices on 26 August 2002, totals R71,6 million. In order to assist
shareholders in valuing this major Wooltru investment in relation to market
movement of the share prices, the three components are tabled below:
Loan Current Number of shares
value/ market
exercise value
price (Rands)
(Rands)
Wooltru Wooltru Massmart Truworths Woolworths
Ordinary "N"
Ordinary
Staff held shares and shares held under option - (i) & (ii) above
98 700 271 235 16 800 2 839 16 159 28 936
9 000 000 14 530 627 1 500 000 253 515 782 775 1 293 630
55 350 145 301 9 000 1 521 8 656 15 501
1 702 925 2 229 157 230 125 38 890 120 088 198 461
7 410 000 9 667 175 1 000 000 169 016 521 850 862 420
3 740 475 3 850 597 397 500 67 181 207 434 342 811
15 000 000 14 530 627 1 500 000 253 515 782 775 1 293 630
1 688 400 1 627 434 100 800 17 035 96 953 173 619
37 000 39 630 2 000 336 3 154 3 442
90 000 72 641 4 500 760 4 328 7 750
Trust held shares - (iii) above
Nil 2 342 695 1 087 150 583 843 1 812 994 2 999 289
Cash balances
As at 26 August 2002, cash balances on hand amounted to R140,1 million.
The value of Wooltru`s remaining assets being property sold and to be sold, the
claims against the Share Purchase Trust and cash balances on hand at 26 August
2002, therefore total R233,7 million.
Estimated cash outflows
Estimated outflows to the date of the final winding up, or voluntary
liquidation, of Wooltru, which is expected to be by 31 December 2003, are
budgeted at R77,9 million. Some of these will be offset by interest that will be
earned on cash balances and which has not been accounted for. Should the cash on
hand be invested until the final voluntary liquidation of Wooltru, in December
2003, interest of approximately R27,0 million could be earned.
The key components for which cash outflows have been budgeted are as follows:
Property related 11,9
Jet Park lease guarantee unwind 19,5
Capital Gains Taxation 20,7
Post-retirement benefits 5,0
Advisors 7,1
Employment costs (1) 15,5
Administration costs (2) 6,0
Tax refund (9,3)
Preference share redemption 1,5
Total 77,9
(1) This figure includes a residual amount of R9,4 million for unbundling
payments due to Executive Directors.
(2) This figure includes listing costs, audit fees, tax consulting, travel,
communication and VAT.
CNA
It is common knowledge that the main operating companies in the CNA group have
been placed in provisional liquidation. Wooltru is still owed R73,8 million
from the sale, in February 2001, of Consolidated News Agencies Holdings (Pty)
Limited ("CNA Holdings") to Gordon Kay & Associates (Pty) Ltd ("GKA"). This
amount was due at the end of May 2002 and remains outstanding.
It has been secured by a pledge of 51% of the shares in CNA Holdings, together
with a similar pledge of shares in Consolidated News Agencies (Pty) Limited and
Central News Agency (Pty) Limited, the two main trading companies. An amount of
R20 million has, in addition, been personally guaranteed by Messrs Tony Kay and
Mark Gordon.
The recoverability of the outstanding claim for R73,8 million depends on the
final result of the liquidation. No recovery value has been attributed to the
Wooltru claim in the Investment update reflected earlier in this report.
Wooltru`s claim will, however, be pursued with the liquidators.
There has been considerable speculation in the media surrounding the structure
of the financing by GKA of the purchase of CNA. The board believes that the sale
transaction, from Wooltru`s perspective, was with the assistance of its legal
and other advisors validly structured. An enquiry in terms of the Companies Act
has been requested by a CNA creditor to probe the transaction and subsequent
events. Certain Wooltru executives have been asked to give evidence at this
enquiry.
GROUP RESULTS
The results of the group are not easily compared with the results of prior
years. In the current year the results of CNA, Wooltru Insurance Brokers and
inthebag are not included, whilst Topics is included until 31 March 2002 and
Affinity Logic until 31 May 2002. In addition, the rental base of the property
portfolio has been reduced through the realisation of properties and the
proceeds from these realisations have been added to the group cash balance.
The contribution to group headline earnings from Massmart, Truworths and
Woolworths increased by 51,7% to R486,6 million, in line with the strong
performance by each of these companies. The other discontinuing operations
(Topics, Affinity Logic, Properties, inthebag, Wooltru Insurance Brokers and
CNA) net loss has reduced from R192,7 million to R11,0 million. The losses
attributable to Wooltru Limited increased from R40,1 million to R44,7 million.
BOARD CHANGES
Once the decision was taken by shareholders to approve the distribution by
Wooltru of its remaining investments in Massmart, Truworths and Woolworths,
Messrs Mark Lamberti, Michael Mark and Simon Susman resigned from the board of
Wooltru Limited. Their experience and counsel has been of immense value over
many years and the board extends its appreciation to them for their loyal
contribution to the activities of the group.
PROSPECTS
It is not possible to predict what impact the issues surrounding CNA may have on
the timing of the proposed voluntary liquidation of Wooltru itself. Should the
liquidation of the CNA companies proceed to finalisation without any calls upon
Wooltru, it is expected that the Wooltru group will be finally wound up within
the next sixteen months. Once certainty has been reached, the board will
consider whether to declare any further interim dividends. On the winding up of
Wooltru the preference shares will be redeemed and all remaining cash will be
distributed to shareholders.
WOOLTRU STAFF
The circumstances facing Wooltru since September 2000 have been unique. Every
component of the asset or liability, both intrinsic and peripheral, had to be
recognized and addressed. Many big and small issues vied for attention. The
steady professional hand of John Rabb, the managing director, was, and is, the
influence that made an extremely complex potpourri of urgencies capable of
rational solution. The board of directors would like to thank him and his team
for the excellent manner in which they have acquitted themselves in achieving
the unbundling and distribution of Wooltru`s listed assets. This distribution
would not have been possible without the realisation of the non-listed assets
which created the liquidity in Wooltru that allowed the distribution of the
listed assets to take place. The final stage of the unbundling will see the
conversion to cash of the remaining non-listed assets followed by a distribution
to shareholders. The managing director has committed himself to oversee this
final stage.
The audited group results were approved by the directors on 27 August 2002.
JB Rabb JD Newton
Managing director Finance director
Directorate and administration
Wooltru Limited (Registration number: 1936/008278/06)
Chairman: L A Tager*
Directors: J B Rabb (Managing), D M Lubner*, J D Newton, J C van der Horst*
* Non-executive
Company secretary: R J McWilliams
Registered office: 5 Corporation Street, Cape Town 8001, South Africa
Postal address: PO Box 671, Cape Town 8000, South Africa
Website: http://www.wooltru.co.za
Transfer secretaries:
Computershare Investor Services Limited
8th Floor, 11 Diagonal Street, Johannesburg 2001, South Africa
PO Box 1053, Johannesburg 2000, South Africa
Transfer Secretaries (Pty) Limited
Shop 12, Kaiserkrone Centre, Post Street Mall, Windhoek, Namibia
PO Box 2401, Windhoek, Namibia
Income statement
Audited
Year ended 30 June
2002 2001
Restated
Notes Rm Rm
Revenue 3 2 396,9 2 887,1
Continuing operations 22,5 37,9
Discontinuing operations 2 374,4 2 849,2
Cost of sales (1 099,7) (1 334,2)
Gross profit 1 297,2 1 552,9
Continuing operations 22,5 37,9
Discontinuing operations 1 274,7 1 515,0
Depreciation and amortisation (65,4) (86,8)
Occupancy costs (193,1) (266,1)
Employment costs (370,1) (494,7)
Other operating costs (232,1) (560,6)
Profit from operations 436,5 144,7
Continuing operations (29,7) (2,3)
Discontinuing operations 466,2 147,0
Finance costs (19,8) (75,2)
Continuing operations (19,6) (58,8)
Discontinuing operations (0,2) (16,4)
Share of associates and joint
venture profit 4 323,2 207,7
Continuing operations - -
Discontinuing operations 323,2 207,7
Net profit before exceptional items 739,9 277,2
Exceptional items 5 (325,4) (167,3)
Continuing operations (118,9) (108,7)
Discontinuing operations (206,5) (58,6)
Net profit before taxation 414,5 109,9
Taxation (189,1) (72,8)
Continuing operations (22,6) (0,4)
Discontinuing operations (166,5) (72,4)
Net profit after taxation 225,4 37,1
Minority interests (133,7) (108,8)
Continuing operations (0,1) (0,1)
Discontinuing operations (133,6) (108,7)
Net profit/(loss) attributable to
ordinary shareholders 91,7 (71,7)
Continuing operations (190,9) (170,3)
Discontinuing operations 282,6 98,6
Number of shares issued (millions) 475,9 475,9
Weighted average number of shares (millions) 475,9 472,3
Earnings/(loss) per share (cents) 19,3 (15,2)
Diluted earnings/(loss) per share (cents) 17,9 (15,9)
Headline earnings per share (cents) 6 90,5 18,6
Headline loss per share from
continuing operations (cents) 6 (9,4) (8,5)
Dividend per share (cents) 15,0 -
Cash flow statement
Audited
Year ended 30 June
2002 2001
Restated
Rm Rm
Cash flow from operating activities
Cash generated from operations 250,5 22,9
Net investment income 198,7 124,7
Taxation paid (195,6) (101,3)
Dividends paid (106,6) (64,3)
Net cash inflow/(outflow) from operations 147,0 (18,0)
Cash flow from investing activities
Net investment in property, plant
and equipment (32,9) (5,7)
Net investment in subsidiaries and businesses (159,3) (11,1)
Net loans and other investments 114,8 (39,7)
Proceeds from the sale of CNA 94,8 -
Payment to Affinity Logic on behalf of CNA (20,0) -
Net proceeds from the disposal
of Affinity Logic 40,3 -
Proceeds from discontinued
operation - Sportsgirl 5,3 15,0
Proceeds on restructuring of
profit guarantees - 60,0
Net cash inflow from
investing activities 43,0 18,5
Cash flow from financing activities
Shares issued 20,3 45,0
Shares repurchased (66,8) -
Long-term borrowings repaid - (325,2)
Net cash outflow from financing activities (46,5) (280,2)
Net increase/(decrease) in cash and
cash equivalents 143,5 (279,7)
Net cash and cash equivalents of
subsidiary/associate no longer consolidated - 83,7
Cash and cash equivalents at beginning
of period 19,9 215,9
Cash and cash equivalents at
end of period 163,4 19,9
Balance sheet
Audited
as at 30 June
2002 2001
Restated
Notes Rm Rm
Assets
Non-current assets 5,4 2 249,4
Property, plant and equipment 5,0 344,9
Investment in associates 4 & 8 - 1 503,2
Other investments 8 - 57,7
Loans 0,4 340,6
Deferred tax - 3,0
Current assets 250,4 1 458,4
Inventories 16,5 255,1
Trade and other receivables 69,0 841,5
Bank balances and cash equivalents 164,9 361,8
Total assets 255,8 3 707,8
Equity and liabilities
Equity 170,4 2 775,5
Ordinary shareholders` interest 168,9 2 359,0
Preference share capital 1,5 1,5
Minority interests - 415,0
Non-current liabilities 0,1 168,0
Long-term liabilities: interest-free - 14,9
Retirement benefit obligations - 30,0
Deferred tax 0,1 123,1
Current liabilities 85,3 764,3
Short-term liabilities: interest-bearing 1,5 282,5
Trade, other payables and provisions 74,9 367,4
Amount owing to associate and joint venture - 59,4
Taxation - net 8,9 55,0
Total equity and liabilities 255,8 3 707,8
Net asset value per share (cents) 35 496
Statement of changes in ordinary shareholders` interest
Audited
Year ended 30 June
2002 2001
Restated
Notes Rm Rm
Ordinary shareholders` interest 2 359,0 2 559,6
Changes in accounting policies
prior year adjustment 7 - (37,1)
Movements for the period:
Share capital and share premium
on issue of shares and distribution
in specie (650,6) 40,6
Recognised gains and losses
Accumulated loss (843,7) (187,5)
Change in accounting policy 7 43,3 -
Net profit/(loss) attributable to
ordinary shareholders 91,7 (71,7)
Distribution to ordinary shareholders (1 659,7) (43,6)
Net unrealised gains on hedging
instruments 7,1 -
Transfer from/(to) non-distributable
reserves 673,9 (72,2)
Non-distributable reserves (695,8) (16,6)
Change in accounting policy 7 (43,3) -
Exchange difference on translation
of foreign entities 39,9 9,1
Revaluation of trademark (15,5) -
Disposal of subsidiary (3,0) -
Revaluation of land and buildings - (18,0)
Sale of land and buildings - (79,9)
Transfer (to)/from accumulated loss (673,9) 72,2
Ordinary shareholders` interest
at end of period 168,9 2 359,0
Notes
1. The basis of preparation of the financial information complies with South
African Generally Accepted Accounting Practice and the accounting policies used
are consistent with those applicable for the 30 June 2001 financial statements
other than those mentioned in note 7.
2. The shares in Massmart, Truworths International and Woolworths have been
distributed in specie to the shareholders. The investment in Topics, Affinity
Logic, inthebag, Wooltru Insurance Brokers and the major portion of the land and
buildings have been disposed of during the period. All of the above have
therefore been disclosed as discontinuing operations. Continuing operations now
consist of Wooltru head office and Wooltru Finance.
2002 2001
Rm Rm
3. Revenue
Sales, royalties and franchise fees 2 200,7 2 702,4
Interest income 110,8 116,6
Property development 56,4 -
Dividends received 10,2 8,7
Rental 16,3 44,4
Other 2,5 15,0
2 396,9 2 887,1
4. Share of associates and joint venture profit
includes dividends received from
associates of 102,7 77,1
5. The exceptional items relate to:
Disposal of Topics (135,1) -
Provision for CNA proceeds (73,8) -
CNA disposal price adjustment 14,8 -
Early realisation of CNA proceeds guarantee (5,5) -
Reversal of CNA cost provision 1,2 -
Massmart promissory note unwind (34,1) -
Disposal of inthebag 18,2 -
Disposal of Affinity Logic 18,0 -
Disposal of Wooltru Insurance Brokers (3,4) -
Profit on sale of land and buildings 17,7 75,5
Unbundling expenses (8,5) (7,6)
Unwind of lease agreement suretyships (1,3) -
Reversal of/(provision for) impairment
of loan to share incentive scheme trust 34,3 (34,3)
Distribution from share incentive scheme trust (9,7) -
Property developments impairment (4,1) (13,5)
Impairment of assets (2,2) (8,6)
Distribution from discontinuing
operation - Sportsgirl 5,3 15,0
Net (decrease)/increase in attributable
shareholders` funds on issue and
repurchase of shares by subsidiaries
and associates (41,5) 182,0
Onerous contracts (19,5) (1,4)
Termination of IT contract - (90,9)
Closure of Constantia Greetings, a
division of CNA - (30,2)
Loss on disposal of CNA - (162,6)
Restructuring of profit guarantees - (35,0)
Provision against loan to joint venture - (25,6)
Restructuring of operations - (9,6)
Loss on disposal of JFK - (2,2)
Payment in respect of Ivano - (2,5)
Restraint of trade - (1,0)
Other - (1,4)
(229,2) (153,9)
Share of associates and joint venture
exceptional items
Discontinuance of Country Road`s
US operation (52,4) -
Net insurance proceeds received on assets
destroyed in the Makro Woodmead fire
and the CCW Maseru riots 10,8 -
Restructuring of operations (3,2) -
Impairment of assets (16,8) (5,4)
Disposal of listed investment (2,2) -
Loss on disposal of Sip `n Save (2,9) -
Bad debt relating to VAT settlement (4,5) -
Goodwill impairment (23,1) -
Onerous contract (2,4) -
Distribution from share incentive scheme trust 1,1 -
Provision for impairment of loan to share
incentive scheme trust (1,2) -
IT asset impairment - (6,0)
Other 0,6 (2,0)
(325,4) (167,3)
Taxation (20,7) 17,9
Minorities (3,4) (15,1)
(349,5) (164,5)
6. Headline earnings per share are
calculated as follows:
Net profit/(losses) attributable to
ordinary shareholders 91,7 (71,7)
Net exceptional items (note 5) 349,5 164,5
Reversal of property development
impairment in exceptional items (4,1) (13,5)
Re-inclusion of restructuring costs in
exceptional items (3,2) (4,1)
Re-inclusion of VAT settlement in
exceptional items (4,5) -
Re-inclusion of onerous contract
in exceptional items (2,4) -
Associates` goodwill impairment - 0,3
Associate`s restraint of trade 3,2 -
Loss on sale of moveable assets 0,7 12,5
Headline earnings 430,9 88,0
Headline earnings per share (cents) 90,5 18,6
Headline earnings per share from continuing
operations are calculated as follows:
Headline earnings 430,9 88,0
Headline earnings from
discontinuing operations (475,6) (128,1)
Headline loss from continuing operations (44,7) (40,1)
Headline loss per share from continuing
operations (cents) (9,4) (8,5)
7. In order to comply with AC135 - Investment Property, the group changed its
accounting policies with respect to its investment property and owner occupied
property. Gains and losses arising from a change in fair value of investment
property are now included in net profit or loss for the period in which they
arise. As allowed by AC135 the effect of this adoption is reported as an
adjustment to the opening retained earnings as at 1 July 2001. Owner occupied
property is now reflected at original cost less accumulated depreciation. This
change in accounting policy has been effected retrospectively.
The group, except for Woolworths an associate, changed its policy with respect
to providing for post-retirement medical aid liabilities from one of no
provision to one of full provision as recommended by AC116 - Employee Benefits
in the financial year to June 2001. Woolworths, an associate, has
retrospectively changed its policy in this respect in the current financial
period. These changes in accounting policies have resulted in a prior year
adjustment retrospectively being processed and comparative figures being
restated. The effects are as follows:
2002 2001
Rm Rm
Effect on opening shareholders` interest:
Opening accumulated profit as
previously reported 597,8
Changes in accounting policies
- post retirement benefits (24,2)
- depreciation (12,9)
Opening accumulated profit as restated 560,7
Opening accumulated profit as
previously reported 373,2
Group change in investment property
accounting policy 43,3
Opening accumulated profit as restated 416,5
Opening non-distributable reserves as
previously reported 703,9
Group change in investment property
accounting policy (43,3)
Opening non-distributable
reserves as restated 660,6
Current and comparative period
profit effects:
Changes in accounting policies:
- post retirement benefits (5,3) (3,3)
- depreciation (3,5) (4,2)
- profit on disposal of property - 0,4
Group change in investment property
accounting policy (41,2) -
Consequential impact on exceptional items - 0,7
Net decrease in profits (50,0) (6,4)
8. Investment in associates and other
investments include:
listed investments of - 1 506,8
with a market value of - 2 249,9
and unlisted investments of - 54,1
which the directors value at - 67,8
9. Commitments in respect of capital expenditure:
approved by directors 32,4 104,3
contracted for - 33,9
This relates to the potential purchase of the Jet Park property to unwind the
guarantees in respect of lease agreements of third parties, set out in note 11.
The minimum recoverable value of this property is thereafter estimated at R12,9
million, the difference has been provided for under onerous contracts.
10. Unutilised banking facilities amount to - 2 085,5
There is no limit on the group`s authority to
raise interest-bearing debt.
11. The group leases the majority of its land and buildings and a small amount
of equipment under operating leases. The lease agreements of certain of the
group`s store and related premises provide for a minimum annual rental payment
and additional payments determined on the basis of turnover. At the period end
the group`s future minimum operating lease commitments were as follows:
Expiring within one year 0,2 172.6
Expiring between two and five years 0,1 599,9
Expiring after five years - 1 123,4
Contingent liabilities: guarantees 38,6 1 915,0
The 2002 guarantee falls away if the Jet Park property is purchased for R32,4
million as set out in note 9.
The Massmart promissory notes are reflected in contingent liabilities in 2001.
12. Certain comparative figures have been regrouped and restated.
13. Ernst & Young has provided an unqualified audit opinion which is available
for inspection at the company`s registered office on the June 2002 annual
financial statements, which have been abridged for the purposes of this report.
Date: 29/08/2002 11:26:55 AM Produced by the JSE SENS Department
