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JSE
JSE
JSE - JSE Limited - Reviewed condensed consolidated interim financial
statements for the six months ended 30 June 2011 and special dividend
declaration
JSE LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 2005/022939/06)
Share Code: JSE
ISIN Code: ZAE000079711
REVIEWED CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE SIX
MONTHS ENDED 30 JUNE 2011 AND SPECIAL DIVIDEND DECLARATION
Introduction
Market uncertainty, which dampened investor appetite as global sovereign debt
concerns lingered, cast a shadow over the six months to 30 June 2011. In this
climate, and given the impact of volatility and volumes on JSE revenues, the
Group performed better than in 2010. It remains focused on delivering its
major strategies in a time of rapid change in the exchange industry.
Financials
Revenue increased by 7% to R667.9 million for the six months (H1 2010: R623.3
million) boosted by solid performances from the cash equities, commodities
derivatives and currency derivatives markets. All divisions contributed
revenue increases. Other income decreased by 2%, mainly owing to lower income
from the Investor Protection Funds.
Personnel costs fell by 11% primarily as a result of the deployment of staff
to capital projects resulting in their salary costs being capitalised, as well
as the first tranche of the 2006 Long Term Incentive Scheme for key staff
fully vesting at end-2010 and therefore not being expensed in H1 2011. Other
expenses were largely in line with H1 2010. An amount of R7.9 million was
incurred as a result of the issue of 156 536 options to the JSE Empowerment
Fund Trust. These options had been forfeited by the original black
shareholders in terms of the rules of the Black Shareholder Retention Scheme.
The Group`s consolidated effective tax rate for the six months to 30 June 2011
was 31% (H1 2010: 33%).
As a result of the revenue growth, reduced operating costs and a lower
effective tax rate, profit for the period climbed by 22% to R253.8 million
during the period (H1 2010: R207.6 million).
Strategy
In the first six months, the JSE has:
- completed the integration of the interest rate market trading platforms so
that there is now a single platform for the trading of interest rate products;
- delivered the first phase of the remote disaster recovery site; and
- made good progress in implementing the new state-of-the-art data centre,
which is scheduled to be completed before year-end.
Testing of the new equities back office system (including equities clearing
and settlement and surveillance systems) is progressing. Implementation has
been delayed to 2012 to give the JSE and its equities members more time for
readiness testing. As the system will be implemented in 2012, the depreciation
of the system will only start in 2012.
Work on replacing the existing cash equities trading platform with the faster
and more efficient system proceeds according to plan. Implementation will be
during 2012.
The equity derivatives team has worked hard to encourage trading of single
stock futures (SSF) on the central order book. The growth in the use of the
central order book for SSF means we are now also focusing on the technology
required to sustain this growth.
We are making slow progress on developing a strategy to grow the interest rate
market and believe we are getting close to the time when a definitive position
needs to be taken on the way forward. During the period, the JSE implemented a
single trading rule book for the interest rate market as well as a unified set
of Debt Listings Requirements. Together, these simplify the listing and
trading of bonds and bond derivatives on a single trading platform.
Revenue streams
Issuer services: A combination of annual and new equity listing fees, as well
as interest rate issuances, accounted for much of the 6% revenue rise to R48.8
million (H1 2010: R45.8 million). Though there is a listings pipeline,
potential new issuers remain hesitant about the current economic environment.
This is in line with the experience of other World Federation of Exchanges
members. During the period, five listings occurred (H1 2010: six). Eight
delistings (H1 2010: 10) took place, five after offers to shareholders, two
owing to liquidations and one owing to failure to comply with JSE Listings
Requirements.
Equity market: The number and value of equity trades grew strongly in Q1 2011
(over Q1 2010) but dipped in Q2, recovering in June. In total, the number of
trades climbed 5% and value traded 4% in H1 2011 (over H1 2010). As a result,
equity trading revenues rose by 5% to R172.6 million (H1 2011: R164.8
million). Risk management, clearing and settlement revenues and revenues from
the JSE`s back office system, which equities members are mandated to use, rose
by 10% and 11% respectively, owing to increased transaction volumes. In total,
equities revenue rose by 8% to R371.7 million (H1 2010: R344.5 million).
Equity derivatives market: Equity derivative revenue climbed 5% to R55.9
million (H1 2010: R53.3 million) as a 4% dip in the number of contracts
traded was countered by a 12% rise in value traded. The market faces strong
competition for single stock derivatives from over the counter products. Most
growth occurred in index derivatives and bespoke products.
Currency derivatives market: Currency derivatives revenue climbed 44% to R7.2
million during the period (H1 2010: R5.0 million) owing to a 96% growth in
contracts traded and 88% in value traded. This growth is attributable to a
change in billing model to encourage more trade, an increase in number of
instruments and the introduction of bespoke, on-market products.
Commodity derivatives: Revenue grew 15% to R23.6 million (H1 2010: R20.6
million) owing to increased trade (61% in value terms and 17% in number of
contracts), in a context of rising agricultural prices. Local maize and wheat
derivatives continue to make up most trade in this market, but the trade of
foreign-referenced instruments continues to rise. These instruments are
offered under license from the CME Group, the world`s largest derivatives
exchange. During the period, the market introduced a wheat contract
referencing pricing from the CME Group.
Interest rate market: , secondary trade rose by 36% in nominal value,
resulting in 16% revenue growth to R19.0 million (H1 2010: R16.4 million).
Information products sales: Despite a contraction in data sales to existing
clients locally and internationally, revenue grew 4% to R61.1 million (R58.7
million) as the team continued to attract new international clients.
Prospects
Revenue projections are not possible in the stock exchange industry, given the
dependence on trading volumes in all the markets. Expenses are expected to
increase from 2012 as a result of depreciation charges starting once the
Group`s major systems have been implemented next year. The JSE continues to
focus on growing all of its markets, diversifying revenue streams and
implementing strategic goals.
Capital structure
At 30 June 2011, the JSE had no long-term borrowings and R1 006 million in
cash reserves (2010: R906 million). The Exchange analyses its capital
requirements in a number of categories:
- first, to ensure a smoothly operating stock exchange, the JSE sets aside
sufficient cash to fund four months of operations;
- second, as the JSE guarantees all central order book equities trades, it
sets aside sufficient cash to ensure settlement of qualifying transactions;
- third, the JSE must be in a position to maintain infrastructure and meet
capital needs for expansion, so we set aside a portion of cash to fund these
types of outflows; and
- fourth, the cash component of the Investor Protection Funds comprises R118
million of the total (2010: R118 million).
On the basis of this assessment, the Board has determined how much cash we
need to retain and revisits this regularly.
Cash dividend declaration
Given that the JSE is coming to the end of large capital expenditure in
respect of its System Replacement Project, the directors of the JSE have
considered the adequacy of the cash balances and consider that there are
balances surplus to our current needs.
In light of this, the Board has declared a special dividend amounting to R200
million gross of taxes. This amounts to a net dividend of 210 cents per share.
The salient dates for the payment of the dividend are as follows:
To be released on SENS on Tuesday, 16 August 2011
Last date to trade JSE shares cum dividend Friday, 2 September 2011
JSE shares trade ex dividend Monday, 5 September 2011
Record date for purposes of determining the Friday, 9 September 2011
registered holders of JSE shares to participate
in the dividend at close of business on
Date of payment of dividend Monday, 12 September 2011
Share certificates may not be dematerialised or rematerialised from Monday, 5
September 2011 to Friday, 9 September 2011, both days inclusive.
Note: Percentage changes in the above are calculated on full number and not
the rounded numbers which appear in the text.
For and on behalf of the Board
HJ Borkum RM Loubser
Chairman Chief Executive Officer
16 August 2011
CONSOLIDATED INTERIM STATEMENT OF COMPREHENSIVE INCOME
for the six months ended 30 June 2011
JSE Group
Six months ended Year ended
30 June 30 June 31 Dec
2011 2010 2010
Note (reviewed) (reviewed) (audited)
R`000 R`000 R`000
Revenue 7 667 948 623 301 1 255 148
Other income 20 785 21 102 50 267
Personnel expenses (134 864) (150 871) (338 098)
Other expenses (240 923) (242 340) (541 087)
Profit before net 312 946 251 192 426 230
finance income
Finance income 437 795 536 987 1 027 947
Finance costs (395 741) (493 337) (940 957)
Net finance income 42 054 43 650 86 990
Share of profit of 15 053 14 225 26 446
equity accounted
investees (net of income
tax)
Profit before tax 370 053 309 067 539 666
Income tax expense (116 228) (101 508) (161 659)
Profit for the period 253 825 207 559 378 007
Other comprehensive loss
Net change in fair value (2 320) (7 865) 29 660
of available-for-sale
financial assets
Net change in fair value (8 612) (9 229) (31 893)
of available-for-sale
financial assets
reclassified to profit
or loss
Income tax on other - - -
comprehensive loss
Other comprehensive loss (10 932) (17 094) (2 233)
for the period, net of
income tax
Total comprehensive 242 893 190 465 375 774
income/(loss) for the
period
Profit attributable to:
Owners of the Exchange 253 825 207 559 378 007
Profit for the period 253 825 207 559 378 007
Total comprehensive
income/(loss)
attributable to:
Owners of the Exchange 242 893 190 465 375 774
Total comprehensive 242 893 190 465 375 774
income/(loss) for the
period
Earnings per share
Basic earnings per share 299.0 244.1 445.5
(cents)
Diluted earnings per 8 294.4 240.4 438.4
share (cents)
CONSOLIDATED INTERIM STATEMENT OF COMPREHENSIVE INCOME (CONTINUED)
for the six months ended 30 June 2011
Investor Protection Funds*
Six months ended Year ended
30 June 30 June 31 Dec
2011 2010 2010
(reviewed) (reviewed) (audited)
R`000 R`000 R`000
Revenue - - -
Other income 10 603 11 299 36 082
Personnel expenses - - -
Other expenses (3 950) (7 599) (15 334)
Profit before net 6 653 3 700 20 748
finance income
Finance income 3 707 4 393 8 886
Finance costs - - -
Net finance income 3 707 4 393 8 886
Share of profit of - - -
equity accounted
investees (net of income
tax)
Profit before tax 10 360 8 093 29 634
Income tax expense - - -
Profit for the period 10 360 8 093 29 634
Other comprehensive loss
Net change in fair value (2 320) (7 865) 29 660
of available-for-sale
financial assets
Net change in fair value (8 612) (9 229) (31 893)
of available-for-sale
financial assets
reclassified to profit
or loss
Income tax on other - - -
comprehensive loss
Other comprehensive loss (10 932) (17 094) (2 233)
for the period, net of
income tax
Total comprehensive (572) (9 001) 27 401
income/(loss) for the
period
Profit attributable to:
Owners of the Exchange 10 360 8 093 29 634
Profit for the period 10 360 8 093 29 634
Total comprehensive
income/(loss)
attributable to:
Owners of the Exchange (572) (9 001) 27 401
Total comprehensive (572) (9 001) 27 401
income/(loss) for the
period
Earnings per share
Basic earnings per share 12.2 9.5 34.9
(cents)
Diluted earnings per 12.0 9.4 34.4
share (cents)
*Investor Protection Funds comprises the JSE Guarantee Fund Trust, JSE
Derivatives Fidelity Fund Trust and BESA Guarantee Fund Trust (the "Trusts").
The JSE maintains these Trusts for investor protection purposes as required
under the Securities Services Act 36, of 2004. The JSE is required to
consolidate the Trusts into the results of the Group in terms of International
Financial Reporting Standards (IFRS). However, as these Trusts are legally
separate from the JSE, neither the JSE nor its shareholders have any right to
the net assets of these Trusts on winding up. In certain limited
circumstances, the JSE is entitled to the income and surplus assets of the
Trusts. For enhanced understanding, the Trusts have been shown separately,
(before intercompany adjustments), although, for compliance with IFRS, the
results form part of the Group financial statements.
CONDENSED CONSOLIDATED INTERIM STATEMENT OF CHANGES IN EQUITY
for the six months ended 30 June 2011
Attributable to owners of the Exchange
Non-
distribu- Shares
Share Share table BBBEE pending
capital premium reserve reserve allotment
Group R`000 R`000 R`000 R`000 R`000
Balance at 8 514 162 779 10 058 160 192 -
31 December 2009
Total - - - - -
comprehensive
income for the
period
Transactions with (48) (32 121) - (137) -
owners of the
Exchange,
recognised
directly in
equity
Balance at 8 466 130 658 10 058 160 055 -
30 June 2010
(reviewed)
Balance at 8 514 162 779 10 058 160 192 -
31 December 2009
Total - - - - -
comprehensive
income for the
year
Transactions with (48) (32 121) - (311) -
owners of the
Exchange,
recognised
directly in
equity
Balance at 8 466 130 658 10 058 159 881 -
31 December 2010
Total - - - - -
comprehensive
income for the
year
Transactions with 25 (22 541) - 5 455 16 607
owners of the
Exchange,
recognised
directly in
equity
Balance at 8 491 108 117 10 058 165 336 16 607
30 June 2011
CONDENSED CONSOLIDATED INTERIM STATEMENT OF CHANGES IN EQUITY (CONTINUED)
for the six months ended 30 June 2011
Total
Exchange Investor
JSE LTIS and Pro-
2010 Retained subsi- tection Total
reserve earnings diaries Funds equity
Group R`000 R`000 R`000 R`000 R`000
Balance at - 903 367 1 244 910 359 814 1 604 724
31 December
2009
Total - 199 282 199 282 (8 817) 190 465
comprehensive
income for the
period
Transactions 1 711 (163 332) (193 927) - (193 927)
with owners of
the Exchange,
recognised
directly in
equity
Balance at 1 711 939 317 1 250 265 350 997 1 601 262
30 June 2010
(reviewed)
Balance at - 903 367 1 244 910 359 814 1 604 724
31 December
2009
Total - 348 373 348 373 27 401 375 774
comprehensive
income for the
year
Transactions 6 244 (107 790) (134 026) (55 368) (189 394)
with owners of
the Exchange,
recognised
directly in
equity
Balance at 6 244 1 143 950 1 459 257 331 847 1 791 104
31 December
2010
Total - 243 280 243 280 (387) 242 893
comprehensive
income for the
year
Transactions 6 050 (174 871) (169 275) (1 463) (170 738)
with owners of
the Exchange,
recognised
directly in
equity
Balance at 12 294 1 212 359 1 533 262 329 997 1 863 259
30 June 2011
CONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION
as at 30 June 2011
JSE Group
As at As at As at
30 June 30 June 31 Dec
2011 2010 2010
(reviewed) (reviewed) (audited)
R`000 R`000 R`000
Assets
Non-current assets 990 011 918 730 943 010
Property and equipment 130 113 84 222 113 272
Intangible assets 478 868 439 009 423 039
Investments in equity accounted 83 946 82 795 95 017
investees
Other investments 212 227 228 701 218 034
Derivative financial instruments 814 2 520 3 015
Due from JSE Empowerment Fund Trust 14 294 13 315 13 910
Deferred taxation 69 749 68 168 76 723
Current assets 16 703 969 16 184 162 16 223 383
Trade and other receivables 213 977 172 928 187 379
Income tax receivable 76 875 34 064 61 783
Amounts due from related parties 5 333 1 763 -
Margin and collateral deposits 15 402 135 15 069 020 14 927 891
Cash and cash equivalents 1 005 649 906 387 1 046 330
Total assets 17 693 980 17 102 892 17 166 393
Equity and liabilities
Total equity 1 863 259 1 601 262 1 791 104
Non-current liabilities 151 838 204 965 170 630
Finance lease 340 2 046 1 279
Employee benefits 34 559 75 241 46 105
Deferred taxation 3 935 5 380 4 757
Operating lease liability 60 366 71 857 65 562
Deferred income 51 530 49 391 51 847
Due to SAFEX members 1 108 1 050 1 080
Current liabilities 15 678 883 15 296 665 15 204 659
Trade and other payables 189 540 169 097 174 155
Employee benefits 75 203 53 106 94 113
Operating lease liability 12 006 5 442 8 500
Due to group entities - - -
Margin and collateral deposits 15 402 134 15 069 020 14 927 891
Total equity and liabilities 17 693 980 17 102 892 17 166 393
CONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION (CONTINUED)
as at 30 June 2011
Investor Protection Funds
As at As at As at
30 June 30 June 31 Dec
2011 2010 2010
(reviewed) (reviewed) (audited)
R`000 R`000 R`000
Assets
Non-current assets 212 224 228 698 218 032
Property and equipment - - -
Intangible assets - - -
Investments in equity accounted - - -
investees
Other investments 212 224 228 698 218 032
Derivative financial instruments - - -
Due from JSE Empowerment Fund Trust - - -
Deferred taxation - - -
Current assets 118 169 119 002 116 075
Trade and other receivables 603 719 4 035
Income tax receivable - - -
Amounts due from related parties - - -
Margin and collateral deposits - - -
Cash and cash equivalents 117 566 118 283 112 040
Total assets 330 393 347 700 334 107
Equity and liabilities
Total equity 329 812 347 049 331 847
Non-current liabilities - - -
Finance lease - - -
Employee benefits - - -
Deferred taxation - - -
Operating lease liability - - -
Deferred income - - -
Due to SAFEX members - - -
Current liabilities 581 651 2 260
Trade and other payables 301 324 581
Employee benefits - - -
Operating lease liability - - -
Due to group entities 280 327 1 679
Margin and collateral deposits - - -
Total equity and liabilities 330 393 347 700 334 107
CONDENSED CONSOLIDATED INTERIM STATEMENT OF CASH FLOWS
for the six months ended 30 June 2011
JSE Group
Six months ended Year ended
30 June 30 June 31 Dec
2011 2010 2010
(reviewed) (reviewed) (audited)
R`000 R`000 R`000
Net cash inflow/(outflow) from 232 640 216 871 419 960
operating activities
Net cash (used in)/from investing (69 993) (65 976) (95 993)
activities
Net cash used in financing (201 284) (165 305) (195 637)
activities
Net (decrease)/increase in cash and (38 637) (14 410) 128 330
cash equivalents
Cash and cash equivalents at 1 046 330 920 797 920 796
beginning of period
Effect of exchange rate (2 044) - (2 796)
fluctuations on cash held
Cash and cash equivalents at end of 1 005 649 906 387 1 046 330
period
CONDENSED CONSOLIDATED INTERIM STATEMENT OF CASH FLOWS (CONTINUED)
for the six months ended 30 June 2011
Investor Protection Funds
Six months ended Year ended
30 June 30 June 31 Dec
2011 2010 2010
(reviewed) (reviewed) (audited)
R`000 R`000 R`000
Net cash inflow/(outflow) from 3 502 1 037 (1 793)
operating activities
Net cash (used in)/from investing 3 487 2 972 51 163
activities
Net cash used in financing (1 463) (1 836) (53 440)
activities
Net (decrease)/increase in cash and 5 526 2 173 (4 070)
cash equivalents
Cash and cash equivalents at 112 040 116 110 116 110
beginning of period
Effect of exchange rate - - -
fluctuations on cash held
Cash and cash equivalents at end of 117 566 118 283 112 040
period
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
for the six months ended 30 June 2010
1. Reporting entity#
JSE Limited (the "Company", the "JSE" or the "Exchange") is a company
domiciled in the Republic of South Africa. The condensed consolidated
interim financial statements of the Company as at and for the six months
ended 30 June 2011 comprise the Company and its subsidiaries (together
referred to as the "Group") and the Group`s interests in associates. The
JSE is licensed as an exchange in terms of the Securities Services Act,
No 36 of 2004.
The Group currently consists of the Company, its subsidiary companies
(Safex Clearing Company (Pty) Limited, JSE Trustees (Pty) Limited, BESA
Limited, BESA Investments (Pty) Limited and BondClear Limited), special
purpose entities JSE Guarantee Fund Trust, JSE Derivatives Fidelity Fund
Trust and BESA Guarantee Fund Trust and its interests in associated
companies (Strate Limited and Indexco Managers Limited).
2. Statement of compliance#
These condensed consolidated interim financial statements have been
prepared in accordance with International Financial Reporting Standards
(IFRS), IAS 34, Interim Financial Reporting and the AC 500 series
pronouncements issued by the Accounting Practices Board of SAICA as well
as Section 29(e) of the Companies Act (No 71 of 2008). They do not
include all of the information required for full annual financial
statements and should be read in conjunction with the consolidated
financial statements of the Group as at and for the year ended 31
December 2010.
These condensed consolidated interim financial statements were approved
by the Board of Directors on 16 August 2011.
3. Significant accounting policies#
Change in accounting policies
The accounting policies applied by the Group in these condensed
consolidated interim financial statements are the same as those applied
by the Group in its consolidated financial statements as at and for the
year ended 31 December 2010.
4. Comparative figures#
Unless otherwise indicated, comparative figures refer to the six months
ended 30 June 2010.
5. Operating segments#
Information about reportable segments
Equity1 Equity and Commodity Interest
Currency derivatives rate
derivatives market2
R`000 R`000 R`000 R`000 R`000
For the period
ended 30 June 2011
External revenues 418 665 63 127 23 578 25 761
For the period
ended 30 June 2010
External revenues 387 650 58 354 20 573 23 411
For the period
ended 31 December
2010
External revenues 772 885 116 077 47 827 47 745
Information about reportable segments
Infor-
mation Other3 Total
sales
R`000 R`000 R`000
For the period
ended 30 June 2011
External revenues 61 141 75 676 667 948
For the period
ended 30 June 2010
External revenues 58 703 74 610 623 301
For the period
ended 31 December
2010
External revenues 116 727 153 887 1 255 148
1 Comprises equities trading fees, risk management, clearing and settlement
fees, membership fees, issuer services and back-office services (BDA).
2 The interest rate market revenue was remeasured to include R6.7 million
(2010: R7.0 million) of listing fees relating to the bond market.
3 Comprises Funds management and Strate ad valorem fees.
6. Long-term incentive scheme 2010 ("LTIS 2010")#
LTIS 2010 is a long-term incentive scheme, designed to incentivise and
retain selected senior employees of the JSE over rolling three- and four-
year time horizons. All shares awarded under LTIS 2010 are held in
trust and are restricted until all vesting conditions are fulfilled.
Where a participant leaves the employ of the JSE prior to the vesting
dates or the relevant JSE corporate performance metrics are not
achieved, the share awards are forfeited.
During May 2011 the Board approved the second annual allocation under
the rules of the scheme, and granted authority for the LTIS 2010 Trust
to acquire the requisite number of JSE shares in the open market for
allocation to selected senior staff. All individual allocations were
accepted by scheme participants on or about 30 May 2011.
The following assumptions, using Black-Scholes valuation methodology,
were used to calculate the share-based payment value charge of R0.7
million in respect of Allocation 2.
Retention shares Performance shares
Base price (Rand per share) 67.44 67.44
Total number of shares granted 317 500 109 400
Grant date 1 May 10 30 Jun 10
Dividend yield 3.00% 3.00%
Vesting dates:
50% of the shares awarded vest 158 750 54 700
after three years
50% of the shares awarded vest 158 750 54 700
after four years
Members of the JSE`s executive committee, which includes the executive
directors and Company Secretary, have been granted a total of 109 400
retention shares and 109 400 performance shares under Allocation 2.
The share-based payment charge for the period in respect of Allocation 1
(granted in May 2010) amounts to R5.4 million.
7. Revenue# Six months ended Year ended
30 June 30 June 31 December
2011 2010 2010
(reviewed) (reviewed) (audited)
R`000 R`000 R`000
Equities trading fees 172 637 164 826 324 576
Risk management, 102 305 92 895 188 943
clearing and settlement
fees
Back-office services 96 590 86 753 177 518
(BDA)
Issuer services 48 798 45 830 85 591
Membership fees 5 055 4 367 8 896
Equity derivatives fees 55 880 53 336 105 950
Currency derivatives 7 247 5 018 10 127
Commodity derivatives 23 578 20 573 47 827
fees
Interest rate market 19 041 16 390 35 106
Information sales 61 141 58 703 116 727
Funds management 22 627 22 454 46 326
Total revenue before 614 899 571 145 1 147 587
Strate ad valorem fees
Strate ad valorem fees 53 049 52 156 107 561
Total revenue 667 948 623 301 1 255 148
8. Headline and diluted
headline earnings per
share#
Six months ended Year ended
30 June 30 June 31 December
2011 2010 2010
(reviewed) (reviewed) (audited)
R`000 R`000 R`000
Reconciliation of
headline earnings:
Profit for the period 253 825 207 559 378 007
attributable to ordinary
shareholders
Adjustments are made to
the following:
(Profit)/loss on (8) 15 12
disposal of property and
equipment
Impairment of intangible - - 23 889
assets
Net realised gains on (8 612) (9 229) (31 893)
disposal of available-
for-sale financial
assets
Headline earnings 245 205 198 345 370 015
Headline earnings per 288.9 233.3 436.1
share (cents)
Diluted headline
earnings per share
Headline earnings 245 205 198 345 370 015
Weighted average number 86 223 545 86 332 465 86 215 531
of ordinary shares
(diluted)
Diluted headline 284.4 229.7 429.2
earnings per share
(cents)
9. Black shareholders` retention scheme#
During June 2011, the options issued in terms of the Black Shareholder
Retention Scheme implemented during 2006 were exercised by qualifying
black shareholders. In addition 156 536 options that had lapsed under
this scheme were reissued to the JSE Empowerment Fund (JEF) at a cost
of R7.9 million to profit or loss. The issue and allotment of the
resulting shares to JEF and some qualifying black shareholders took
place after the reporting date and has been reflected as shares
pending allocation in equity.
10. Contingent liabilities and commitments#
There were no changes to the contingent liabilities and commitments
reported in the consolidated financial statements as at and for the
year ended 31 December 2010 except as noted below.
10.1 Commitments
As at 30 June 2011 the JSE had capital commitments of R28.0 million
for the purchase of assets relating to the data centre and USD0.6
million for the replacement of the equities trading platform.
11. Events after reporting date#
On 1 July 2011, the Group acquired the business of Momentum Managed
Account Platform (Proprietary) Limited ("MOMMAP"), a hedge fund
platform, as a going concern and the entire issued share capital of
Momentum Managed Account Platform Holdings (Proprietary) Limited for a
purchase consideration of R27 499 999 and R1 respectively. This
purchase consideration will be funded from a portion of the cash flows
generated by the platform. MOMMAP will also be party to certain en
commandite partnership agreements, effective from 1 July 2011. The
platform will offer hedge fund investors greater protection by
segregating investors` assets from the hedge fund manager and
monitoring hedge funds` trading activity, thereby ensuring that the
funds remain within the agreed investment mandates.
The MOMMAP assets acquired comprise mainly intellectual property and a
staff complement. The carrying amount attributable to the assets and
liabilities within the business of MOMMAP at the acquisition date was
insignificant.
The fair value attributable to the acquired identifiable assets and
goodwill cannot be reliably determined at the reporting date, 30 June
2011. The financial effects of the above transaction have not been
brought to account at 30 June 2011. The operating results and assets
and liabilities of the Company will be brought to account from 1 July
2011.
Review conclusion
KPMG Inc., the Company`s independent auditor, has reviewed the condensed
consolidated interim financial statements contained in this interim report and
has expressed an unmodified conclusion on the condensed consolidated interim
financial statements. Their review report is available for inspection at the
Company`s registered office.
The condensed consolidated financial results include the consolidated
statement of financial position at 30 June 2011, the consolidated statement of
comprehensive income and the condensed consolidated statements of changes in
equity and cash flows for the six months then ended and selected explanatory
notes. Selected explanatory notes are marked with a #.
JOHANNESBURG STOCK EXCHANGE
1 Exchange Square, 2 Gwen Lane, Sandown, South Africa. Private Bag X991174,
Sandton 2146, South Africa, Sandown
Tel +27 11 520 7000 Fax +27 11 520 8584
Sponsor: RAND MERCHANT BANK (a division of FirstRand Bank Limited)
A full version of this announcement can be found at www.jse.co.za
Date: 16/08/2011 15:25:26 Produced by the JSE SENS Department.
