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RAC
RAC
RAC - RACEC Group Limited - Provisional condensed consolidated audited results
for the year ended 30 September 2011
RACEC GROUP LIMITED
Incorporated in the Republic of South Africa
(Registration number: 1998/006153/06)
Share code: RAC ISIN: ZAE000105409
("RACEC" or "the Company" or "the Group")
PROVISIONAL CONDENSED CONSOLIDATED AUDITED RESULTS FOR THE YEAR ENDED 30
SEPTEMBER 2011
INTRODUCTION
The 2011 financial year has seen a substantial restructuring of the Group`s
operations. This was in response to the fact that along with the challenging and
changing economic environment, certain of the Group`s operations have not
performed well.
The Group has taken the decision to concentrate on its core competency as a rail
focused entity, an industry in which we have operated successfully for more than
55 years.
This restructuring saw the incorporation of the overhead rail electrification
into the profitable operations of rail construction and maintenance and the
disposal of the loss making elements of the Group`s electrical reticulation
business and the manufacturing operations.
In addition to the above restructuring the Group is well advanced in
negotiations with an additional BEE investor as announced on SENS on 15 December
2011. This, when successful, will not only see the Group being a black owned
enterprise, but will significantly strengthen the Group`s statement of financial
position and cash position. This will enable the Group to take full advantage of
the anticipated growth opportunities within the rail sector. We anticipate this
being concluded early in January 2012.
FINANCIAL PERFORMANCE
The trading results reflect the results of the continuing operations of the
Group. The losses in relation to the discontinued operations and the losses
associated with the disposal of the discontinued operations are reflected as
discontinued on the face of the statement of comprehensive income.
On a like-for-like basis, comparing the performance of the continuing operations
with the 2010 performance, the Group`s revenue in 2011 increased by R68.5
million (2010: increased by R60.0 million), representing an increase of 44%
(2010: increase of 61.6%).
While the Group`s total loss after tax was R60.5 million (2010: profit after tax
- R12.9 million), including the results of the disposed non-core subsidiaries,
investment impairments and write-offs in relation to the disposal of these
businesses, the profit after tax for the continuing operations was R12.5 million
(2010: R0.5 million).
The growth in the continuing operations has been driven by profitable operations
of the rail business on opportunities in both the local market and in Africa.
The discontinued businesses saw a significant turn of fortune during the 2011
financial year when compared to 2010, with losses from the discontinued
operations totalling some of R35.1 million (2010: profit R12.4 million). There
have been several factors contributing to this loss:
- Greenbro (Pty) Ltd and GreenGlo (Pty) Ltd - The manufacturing operations
experienced an extremely tough year with reduced throughput in its
factories and a protracted legal dispute with its previous Managing
Director for fraud and mismanagement. Despite new management and the
Group`s efforts, significant damage was done to this business which
resulted in the generator manufacturing facilities being closed and the
rotto moulding operations being sold to a third party.
- RACEC Electrification (Pty) Ltd, RACEC Power (Pty) Ltd and Northern
Electric (Cape) (Pty) Ltd - These businesses also saw a significant
reduction in activity and major margin pressure. As a result, the decision
was taken to include the overhead track electrification business within the
Rail construction and maintenance business and to sell the remaining
operations to the existing management team.
The restructuring and disposals have all been completed and the Group`s
directors are confident that the remaining operations are well positioned to
take advantage of not only the significant opportunities that exist in the rail
construction and maintenance sector, both within South Africa and the rest of
Africa, but also the additional cost savings in the restructured Group.
OPERATIONAL PERFORMANCE AND PROSPECTS
We have already delivered on key achievements on contracts brought in by RACEC
Rail. The continuing success of operations in the rest of Africa, specifically
the rail construction project in Sierra Leone, has given us capacity and
confidence in our ability to operate in the rest of Africa. We have won further
contracts in East Africa and are currently investigating opportunities, among
others, in Mozambique, Ghana, Guinea, Kenya, Tanzania and Sudan. We have
increased our local order book, specifically in the Northern Cape region and we
were re-awarded the universal sleeper replacement contract for Transnet.
Our track record places us as a favoured construction contractor, thus much of
the current work is new construction or the rehabilitation of existing works.
Construction contracts can equate to good margins but can come with a high risk.
We plan to balance that by diversifying our rail construction offering to
include maintenance annuity contracts in the mechanised rail business. Transnet
appears to be welcoming a third player in that space and we believe that with
our expertise and the fact that we will be a black-owned rail focused business,
we will be in a strong position to be that player.
The current split on construction versus annuity contracts is 90/10 and we plan
to reach a 50/50 split over the next three to five years. In addition to not
relying on a single contract, we do not want to rely on a single country and
plan to achieve a local versus regional revenue split of 50/50.
RACEC Rail`s order book is looking good. More than 80% of the 2011 revenue is
already secured for 2012. While there are further opportunities available for
the Group, we are in the fortunate position of being able to select which
contracts provide the best return.
Our staff is our most valued asset and their well being and development is of
great importance to us. As a Group we are committed to creating opportunities
for our staff through training and promotion from within wherever possible.
RACEC places a high value on the health and safety of its staff and on the
environment in which they and our communities operate. We therefore believe that
their right to safe working conditions is non-negotiable. In addition, we ensure
that our work is conducted in an environmentally responsible manner.
PROVISIONAL FINANCIAL STATEMENTS
During the course of the 2009 financial year the Group sold 25% of its share
capital to its BEE investor Solethu Civils Holdings (Pty) Ltd for a total for
R45 million and a further 9% during the course of 2010 by way of a rights issue,
raising an additional R10 million.
We are required in terms of SIC 12 to consolidate the results of Solethu Civils
Holdings (Pty) Ltd ("Solethu Civils"). The impact of this consolidation results
in R35.2 million of our equity being disclosed as treasury shares and reflected
as shareholders loans on the statement of financial position. The following
provisional condensed consolidated financial statements reflect the following:
- The unaudited statement of comprehensive income and the statement of
financial position excluding the SIC 12 consolidation. Management feels
that these results give a clearer indication of the underlying operations
as they exclude the SIC 12 consolidation and fair value adjustments; and
- The audited statement of comprehensive income, the statement of financial
position, the statement of cash flows and the statement of changes in
equity including the SIC 12 consolidation.
EXCLUDING THE SIC 12 CONSOLIDATION OF SOLETHU CIVILS:
PROVISIONAL CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Unaudited
year Unaudited
ended year
30 ended
September 30
2011 September
R`000 2010
R`000
Revenue 225 982 157 447
Cost of sales (162 930) (110 686)
Gross profit 63 052 46 761
Other income 123 604
Other expenses (35 665) (30 196)
Net profit before investment revenue, finance 27 510 17 169
costs and taxation
Investment revenue 1 185 1 704
Finance costs (4 593) (6 198)
Profit before taxation 24 102 12 675
Taxation (7 703) (8 530)
Profit for the period 16 399 4 145
Discontinued operations:
(Loss)/Profit for the year from discontinued (35 055) 12 420
operations
Loss from disposal of discontinued operations (37 936) -
(Loss)/Profit for the year (56 592) 16 565
Attributable to:
Equity holders of the parent (55 785) 16 694
Non-controlling interest - discontinued (807) (129)
operations
(56 592) 16 565
Other comprehensive (loss)/income:
- Deferred tax on revaluation through disposal - 251
of discontinued operations
- Revaluation of property, plant and equipment - 336
- Deferred tax on revaluation of property, - (94)
plant and equipment
- Foreign currency translation differences 49 6
Total comprehensive (loss)/income for the year (56 543) 17 064
Attributable to:
Equity holders of the parent (55 736) 17 193
Non-controlling interest - discontinued (807) (129)
operations
(56 543) 17 064
(LOSS)/EARNINGS PER SHARE (CENTS)
Basic (33.7) 13.2
Diluted basic (31.2) 12.8
Headline (7.2) 13.8
Diluted headline (6.7) 13.5
Unaudited
year Unaudited
ended year
30 ended
September 30
2011 September
R`000 2010
R`000
From continuing operations (cents)
Basic 9.9 4.5
Diluted basic 9.2 4.4
Headline 10.1 5.2
Diluted headline 9.3 5.0
From discontinued operations (cents)
Basic (43.6) 8.6
Diluted basic (40.3) 8.4
Headline (17.3) 8.6
Diluted headline (16.0) 8.4
Weighted average number of ordinary shares in 165 585 145 795
issue (`000)*
Fully diluted weighted average number of 178 993 149 642
ordinary shares in issue (`000)**
*Excludes treasury shares
** Treasury shares considered to have dilutive potential
PROVISIONAL CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Unaudited Unaudited
as at as at
30 30
September September
2011 2010
R`000 R`000
ASSETS
Non-current assets 66 555 70 680
- Property, plant and equipment 54 978 55 631
- Investment property 351 351
- Intangible assets 1 125 10 314
- Loans and receivables 8 839 -
- Loans to shareholders 1 200 -
- Loans to related parties 62 -
- Deferred tax assets - 4 384
Current assets 110 957 147 463
- Inventories 41 692 31 020
- Trade and other receivables 43 755 97 237
- Loans and receivables 4 385 -
- Derivative financial instruments - 28
- Tax receivable 103 97
- Cash and cash equivalents 17 569 19 081
- Assets classified as held for sale 3 453 -
Total assets 177 512 218 143
EQUITY AND LIABILITIES
Capital and reserves 34 325 94 035
- Equity attributable to equity holders of the 34 325 94 161
parent
- Non-controlling interest - (129)
Non-current liabilities 16 965 16 015
- Other financial liabilities 9 916 7 244
- Share based payments 2 085 2 911
- Deferred tax liabilities 4 964 5 860
Current liabilities 126 222 108 093
- Loans from shareholders 6 739 12 513
- Other financial liabilities 6 257 12 828
- Current tax payable 7 639 6 894
- Trade and other payables 73 606 54 494
- Bank overdraft 30 936 21 364
- Liabilities directly associated with assets 1 045 -
classified as held for sale
Total equity and liabilities 177 512 218 143
Net asset value per share (cents) 21.7 70.8
Net tangible asset value per share (cents) 21.0 63.0
Total number of ordinary shares in issue 157 892 133 027
(`000)*
*Excludes treasury shares
INCLUDING THE SIC 12 CONSOLIDATION OF SOLETHU CIVILS:
PROVISIONAL CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Audited Audited
year year
ended ended
30 30
September September
2011 2010
R`000 R`000
Revenue 225 982 157 447
Cost of sales (162 930) (110 686)
Gross profit 63 052 46 761
Other income 123 604
Other expenses (35 673) (30 196)
Net profit before investment revenue, finance 27 502 17 169
costs and taxation
Investment revenue 622 433
Finance costs (7 885) (8 596)
Profit before taxation 20 239 9 006
Taxation (7 762) (8 480)
Profit for the period 12 477 526
Discontinued operations
(Loss)/Profit for the year from discontinued (35 055) 12 420
operations
Loss from disposal of discontinued operations (37 936) -
(Loss)/Profit for the year (60 514) 12 946
Attributable to:
Equity holders of the parent (59 707) 13 075
Non-controlling interest - discontinued (807) (129)
operations
(60 514) 12 946
Other comprehensive (loss)/income:
- Deferred tax on revaluation through disposal - 251
of discontinued operations
- Revaluation of property, plant and equipment - 336
- Deferred tax on revaluation of property, - (94)
plant and equipment
- Foreign currency translation differences 49 6
Total comprehensive (loss)/income for the year (60 465) 13 445
Attributable to:
Equity holders of the parent (59 658) 13 574
Non-controlling interest - discontinued (807) (129)
operations
(60 465) 13 445
(LOSS)/EARNINGS PER SHARE (CENTS)
Basic (56.3) 12.4
Diluted basic (33.4) 8.7
Headline (15.0) 13.3
Diluted headline (8.9) 9.4
Audited Audited
year year
ended ended
30 30
September September
2011 2010
R`000 R`000
From continuing operations
Basic 11.8 0.5
Diluted basic 7.0 0.4
Headline 12.1 1.4
Diluted headline 7.2 1.0
From discontinued operations
Basic (68.0) 11.9
Diluted basic (40.3) 8.4
Headline (27.1) 11.9
Diluted headline (16.0) 8.4
Weighted average number of ordinary shares in 106 104 105 730
issue (`000)*
Fully diluted weighted average number of 178 993 149 642
ordinary shares in issue (`000)**
*Excludes treasury shares
** Treasury shares considered to have dilutive potential
SEGMENTAL REPORT
Analysis per reportable Administrative Rail Consolid- Total
segment investment construc- ating R`000
and plant hire tion entries
R`000 R`000 R`000
Audited - year ended 30
September 2011
Revenue - external - 225 982 - 225 982
Revenue - intersegment 17 518 14 - 17 532
Profit/(Loss) before tax 6 461 23 494 (9 716) 20 239
Total assets 79 608 110 722 - 190 330
Audited - year ended 30
September 2010
Revenue - external 270 157 177 - 157 447
Revenue - intersegment 16 253 - - 16 253
(Loss)/Profit before tax (218) 22 970 (13 746) 9 006
Total assets - 54 051 77 713 - 131 764
continuing operations
Geographical analysis South Africa Outside Consolid- Total
R`000 South ating R`000
Africa entries
R`000 R`000
Audited - year ended 30
September 2011
Revenue - external 139 345 86 637 - 225 982
Revenue - intersegment 6 325 - - 6 325
Profit/(Loss) before tax 23 383 6 571 (9 715) 20 239
Total assets 117 555 72 775 - 190 330
Audited - year ended 30
September 2010
Revenue - external 101 836 55 611 - 157 447
(Loss)/Profit before tax (15 837) 24 843 - 9 006
Total assets - 100 513 31 251 - 131 764
continuing operations
An operating segment is a component of the Group that engages in business
activities which may earn revenues and incur expenses and whose operating
results are regularly reviewed by the Group`s chief operating decision maker
(this being the RACEC board of directors), in order to allocate resources and
assess performance and for which discrete financial information is available.
Operating segments, which display similar economic characteristics and have
similar products, services, customers, methods of distribution and regulatory
environments are aggregated for reporting purposes.
Segments were identified and grouped together using a combination of the
products and services offered by the segments and the geographical areas in
which they operate.
PROVISIONAL CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Audited Audited
as at as at
30 30
September September
2011 2010
R`000 R`000
ASSETS
Non-current assets 77 875 75 374
- Property, plant and equipment 54 978 55 631
- Investment property 351 351
- Intangible assets 1 125 10 314
- Loans and receivables 8 839 -
- Loans to related parties 12 582 4 694
- Deferred tax assets - 4 384
Current assets 112 455 147 614
- Inventories 41 692 31 020
- Trade and other receivables 43 755 97 237
- Loans and receivables 5 883 -
- Derivative financial instruments - 28
- Tax receivable 103 97
- Cash and cash equivalents 17 569 19 232
- Assets classified as held for sale 3 453 -
Total assets 190 330 222 988
EQUITY AND LIABILITIES
Capital and reserves (916) 61 232
- Equity attributable to equity holders of (916) 61 361
the parent
- Non-controlling interest - (129)
Non-current liabilities 45 709 66 176
- Loans from related parties 28 744 50 161
- Other financial liabilities 9 916 7 244
- Share based payments 2 085 2 911
- Deferred tax liabilities 4 964 5 860
Current liabilities 145 537 95 580
- Loans from related parties 25 996 -
- Other financial liabilities 6 257 12 828
- Current tax payable 7 697 6 894
- Trade and other payables 73 606 54 494
- Bank overdraft 30 936 21 364
- Liabilities directly associated with 1 045 -
assets classified as held for sale
Total equity and liabilities 190 330 222 988
Net asset value per share (cents) (0.9) 57.8
Net tangible asset value per share (cents) (1.9) 48.1
Total number of ordinary shares in issue 106 104 106 104
(`000)*
*Excludes treasury shares
PROVISIONAL CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
Audited Audited
year ended year
30 ended
September 30
2011 September
R`000 2010
R`000
Cash flows from operating activities 33 262 10 083
- Cash generated from operations 40 831 11 136
- Interest income 875 2 388
- Finance costs (3 662) (4 165)
- Taxation paid (4 782) 724
Cash flows from investing activities (21 788) (5 258)
- Purchase of property, plant and equipment (24 936) (13 186)
- Proceeds from disposal of property, plant 3 963 8 771
and equipment
- Purchase of intangible assets (782) (843)
- Proceeds from disposal of discontinued (33) -
operations
Cash flows from financing activities (22 741) 1 527
- Repayment of other financial liabilities (15 928) (14 003)
- Advance of other financial liabilities 11 938 11 144
- (Repayment)/Advance of loans by related (8 903) 4 879
parties
- Advance of loans and other receivables (7 079) -
- Net proceeds from share issue - (493)
- Dividends paid (2 769) -
Total cash movement for the year (11 267) 6 352
Cash at the beginning of the year (2 132) (8 497)
Exchange rate movements on cash and cash 32 13
equivalents
Total cash at the end of the year (13 367) (2 132)
PROVISIONAL CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Share capital Treasury Other
and share shares reserves
premium R`000 R`000
R`000
Balance at 30 September 2009 76 298 (45 000) 6 878
Total comprehensive - - (832)
income/(loss)
- Profit for the year - - -
- Realised revaluation - (499)
through depreciation -
- Deferred tax on - 140
revaluation through -
depreciation
- Realised revaluation - - (1 002)
through disposal
- Deferred tax on - 281
revaluation through disposal -
- Revaluation of property, - 336
plant and equipment -
- Deferred tax on - (94)
revaluation of property, -
plant and equipment
- Foreign currency - 6
translation differences -
Share capital issued by the 15 726 - -
company
Share issue expenses (548) - -
Shares issued to - (15 265) -
subsidiaries *
Share premium reduction (21 107) 21 107 -
Non-controlling interest - - -
acquired
Acquisition of remaining - - (431)
equity interest in
subsidiary
Non-controlling interest in - - -
shares issued by subsidiary
Balance at 30 September 2010 70 369 (39 158) 5 615
Total comprehensive loss - - (532)
- Loss for the year - - -
- Realised revaluation - (531)
through depreciation -
- Deferred tax on - 148
revaluation through -
depreciation
- Realised revaluation - - (275)
through disposal
- Deferred tax on - 77
revaluation through disposal -
- Foreign currency - 49
translation differences -
Share option expenses - - 150
Disposal of controlling - - 889
interest in subsidiaries
Dividends - - -
Balance at 30 September 2011 70 369 (39 158) 6 122
(Continued) Retained Non- Total equity
earnings controlling R`000
R`000 interest
R`000
Balance at 30 September 2009 10 129 69 48 374
Total comprehensive 14 406 (129) 13 445
income/(loss)
- Profit for the year 13 075 (129) 12 946
- Realised revaluation 499 - -
through depreciation
- Deferred tax on (140) - -
revaluation through
depreciation
- Realised revaluation 1 002 - -
through disposal
- Deferred tax on (30) - 251
revaluation through disposal
- Revaluation of property, - - 336
plant and equipment
- Deferred tax on - - (94)
revaluation of property,
plant and equipment
- Foreign currency - - 6
translation differences
Share capital issued by the - - 15 726
company
Share issue expenses - - (548)
Shares issued to - - (15 265)
subsidiaries *
Share premium reduction - - -
Non-controlling interest - (68) (68)
acquired
Acquisition of remaining - - (431)
equity interest in
subsidiary
Non-controlling interest in - (1) (1)
shares issued by subsidiary
Balance at 30 September 2010 24 535 (129) 61 232
Total comprehensive loss (59 126) (807) (60 465)
- Loss for the year (59 707) (807) (60 514)
- Realised revaluation 531 - -
through depreciation
- Deferred tax on (148) - -
revaluation through
depreciation
- Realised revaluation 275 - -
through disposal
- Deferred tax on (77) - -
revaluation through disposal
- Foreign currency - - 49
translation differences
Share option expenses - - 150
Disposal of controlling (889) 936 936
interest in subsidiaries
Dividends (2 769) - (2 769)
Balance at 30 September 2011 (38 249) - (916)
* The shares were issued to the RACEC Employee Share Trust ("the Trust"), RACEC
Employee Share Purchase Scheme ("the Scheme") and Solethu Civils, being special
purpose entities, which are consolidated as part of the Group.
NOTES TO THE PROVISIONAL CONDENSED CONSOLIDATED FINANCIAL RESULTS
1. Statement of compliance
The accounting policies applied in the preparation of these audited
condensed consolidated results, which are based on reasonable judgments and
estimates, are in accordance with International Financial Reporting
Standards, its interpretations adopted by the International Accounting
Standards Board, AC500 as issued by the Accounting Practices Board and are
consistent with those applied in the annual financial statements for the
year ended 30 September 2010. These condensed consolidated financial
statements as set out in this report have been prepared in terms of IAS 34
- Interim Financial Reporting, the South African Companies Act (Act 71 of
2008), as amended, and the Listings Requirements of JSE Limited ("Listings
Requirements").
These provisional financial statements have been prepared under the
supervision of Mr Sean Wilkins CA(SA), the chief financial officer of the
Group.
2. Audit opinion
These provisional condensed consolidated financial results for the year
ended 30 September 2011 have been audited by the Company`s auditor, Grant
Thornton Inc, and have expressed an unqualified audit opinion on the
financial statements. The audit report is available for inspection at the
Company`s registered office.
3. Basis of measurement
These audited condensed financial statements have been prepared on the
historical cost basis, modified for certain items measured at fair value.
4. Discontinued operations
During the 2011 financial year RACEC has disposed of all its Electrical
services segment subsidiaries. RACEC Electrification (Pty) Ltd, RACEC Power
(Pty) Ltd and Northern Electric (Cape) (Pty) Ltd were disposed of on 1
August 2011 and Greenbro (Pty) Ltd and Greenglo Geysers (Pty) Ltd on 30
September 2011.
2011 2010
R`000 R`000
The results of the discontinued operations for
the year are as follows:
Revenue 108 504 236 723
Cost of sales (104 974) (199 470)
Gross profit 3 530 37 253
Other income 130 706
Other expenses (37 232) (26 682)
Net (loss)/profit before investment revenue,
finance costs and taxation (33 572) 11 277
Investment revenue 939 1 955
Finance costs (919) (743)
(Loss)/Profit before taxation (33 552) 12 489
Taxation (1 503) (69)
Trading (loss)/profit after taxation (35 055) 12 420
Loss from disposal of discontinued operations (37 936)
-
- Gross (37 936) -
- Taxation - -
Net (loss)/profit for the year (72 991) 12 420
(Loss)/Profit attributable to:
Equity holders of the parent (72 184) 12 549
Non-controlling interest (807) (129)
(72 991) 12 420
The major classes of assets and liabilities classified as held for sale are as
follows:
2011 2010
R`000 R`000
Assets
Property, plant and equipment
3 453 -
Assets classified as held for sale
3 453 -
Liabilities
Instalment sale agreement liabilities
1 045 -
Liabilities directly associated with assets
classified as held for sale 1 045 -
Proceeds from the disposal of discontinued operations
2011
R`000
Property, plant and equipment 7 963
Intangible assets 3 478
Inventories 9 448
Trade and other receivables 47 272
Tax receivable 22
Cash and cash equivalents 190
Non-controlling interest 936
Loans from related parties (149)
Deferred tax liabilities (23)
Other financial liabilities (885)
Current tax payable (179)
Trade and other payables (25 116)
Bank overdraft (158)
42 799
Less: Net bank overdraft disposed of (32)
Loss on disposal of subsidiaries (37 936)
Proceeds on disposal 4 831
- Loan account with RACEC Electrification (Pty) Ltd 4 371
- Loan account with Greenbro/Greenglo purchases 493
- Cash flow (33)
5. Reconciliation of (loss)/earnings to headline (loss)/earnings
Continuing Discontinued Total Total
operations operations
2011 2010 2011 2010 2011 2010
R`000 R`000 R`000 R`000 R`000 R`000
Reconciliation
between
earnings and
headline
earnings:
- Profit/(Loss) 526 (72 184) 12 549 (59 707) 13 075
after tax 12 477
- Impairment 289 694 123 42 412 736
losses on
property, plant
and equipment
- Impairment - 25 5 557 32 5 557 57
loss on
intangible
assets
- Loss on 161 621 14 10 175 631
disposal of
property, plant
and equipment
- Profit on - (62) (11) (18) (11) (80)
disposal of
property, plant
and equipment
- Loss on - - 37 936 - 37 936 -
disposal of
subsidiaries
- Tax effect of (126) (360) (158) (9) (284) (369)
adjustments
Headline 12 801 1 444 (28 723) 12 606 (15 922) 14 050
earnings/(loss)
DIVIDENDS
Dividends were paid to shareholders during the financial year ended 30 September
2011 amounting to R4.37 million.
It is the policy of the Group to declare dividends up to a maximum of one-third
of annual profits after tax, subject to working capital requirements and
acquisition activities.
In addition, it is the intention of the Group to periodically consider this
dividend policy, taking into account the prevailing market conditions, the
particular circumstances of the Group and future cash requirements in
determining if it is appropriate to pay dividends.
No dividends have been declared for the year ending 30 September 2011.
DIRECTORATE
During the period under review, Mr Winston Ollewagen retired as an executive
director of RACEC at the annual general meeting held on 3 March 2011.
By order of the Board
M Uys G Harrod
Non-Executive Chairman Chief Executive Officer
23 December 2011
Directors:
M Uys* (Chairman), G Harrod (Chief Executive Officer),
C Harrod*, C Gooden*, S Wilkins (Chief Financial Officer),
B Petersen*, Q Zulu*, S Smithyman**
* Non-executive
** Non-executive and alternate director to Q Zulu
Company secretary:
C van Rensburg
Registered office:
8 Hawkins Avenue, Epping 1, 7460
(PO Box 61, Eppindust, 7475)
Transfer secretaries:
Computershare Investor Services (Proprietary) Limited
(PO Box 61763, Marshalltown, 2107)
Auditors:
Grant Thornton Cape Inc.
(Docex 158, Cape Town)
Designated Adviser:
Merchantec Capital
(PO Box 41480, Craighall, 2024)
These results may be viewed on the Internet on http://www.racec.co.za
Date: 28/12/2011 07:12:47 Produced by the JSE SENS Department.
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