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BIACSA
BIACSA - Airports Company South Africa - Executive Summary
Airports Company South Africa (ACSA)
Financial Statements of the year ended 31 March 2011 as required by clause
7.21 of the JSE Debt Listing Requirements
Dated: 30 March 2012
Executive Summary
Leading up to the 2010 FIFA World Cup, Airports Company South Africa
completed its R17 billion infrastructure capacity development and improvement
programme. An important component of this colossal task was to ensure that
there was a smooth and hassle-free transfer to new infrastructure, together
with its immediate and effective operation.
The massive level of capital expenditure since 2006 has caused a structural
shift in the financial position. These investments have also been financed
largely through debt. Gearing (net debt to equity) equalled 62 percent as of
31 March 2011, an improvement when compared to 64 percent in the previous
year.
In line with the considerable increase in investments, the Group applied for
an increase in tariffs to enable the business to finance the substantial
increase in financing and operational costs associated with the completed
infrastructure. Unfortunately, the promulgated tariffs were much lower than
expected, resulting in a significant shortfall in earnings to offset the
appreciable increase in costs, mainly for depreciation and financing.
The Group continued to drive initiatives to enhance shareholder value through
maximisation of non-aeronautical income in line with the additional asset
base and through operational efficiency. However, the sizeable increase in
operating capacity, coupled with the additional 2010 FIFA World Cup
expenditure, has increased the operating requirements of the Group.
Furthermore, the Group`s ability to vary costs to match the traffic profile
is limited due to the regulated requirements of some of the key activities
within the Group`s network of airports. Lastly, the substantial tariff
increases related to utilities, such as water and electricity, as well as
rates and taxes, continue to erode the already constrained reserves of the
Group.
The challenges above were a serious test of the resilience of the Group and
we firmly believe that our commitment to sustainable, long-term business
practices ensured that we emerged unscathed from this period of turbulence.
In the 2011 financial year, the economic value added by the group is
testament to our ongoing commitment to create value for all our stakeholders.
The value added is the measure of wealth the Group has created in its
operations by `adding value` to the cost of services and goods. The statement
below summarises the total wealth created and shows how it was shared by
employees and other parties who contributed to its creation. Also set out
below is the amount retained and re-invested in the group for the replacement
of assets and the further development of operations.
GROUP
VALUE ADDED
Value added by operations 3 318 222 2 525 882
Sales of goods and services 4 658 239 3 530 825
Less cost of goods and services provided (1 340 017) (1 004 943)
Value added by investing activities 198 504 948 286
TOTAL VALUE ADDED 3 516 726 3 479 9933
VALUE DISTRIBUTED
Distributed to employees (714 163) (674 440)
Distributed to providers of capital - finance costs
(1 567 325) (1 420 832)
Distributed to government (38 692) (116 796)
Value reinvested (1 417 076) (367 139)
Depreciation and amortisation (1 445 228) (1 077 449)
Capitalised interest (28 687) (687 766)
Deferred taxation (535) 22 544
TOTAL DISTRIBUTIONS (3 737 256) (2 579 207)
VALUE RETAINED
Income utilised/(retained) in the business
220 530 (900 786)
TOTAL RETAINED FOR INVESTMENT
TOTAL VALUE DISTRIBUTED AND RETAINED (3 516 726) (3 479 993)
Business Review
ACSA`s ability to create and sustain value will continue to receive the
necessary focus, thus ensuring that the Company realises a sustainable
increase in value for our stakeholders.
Revenue
ACSA has two sources of revenue: aeronautical and non-aeronautical. The
former is derived from regulated income such as passenger service, aircraft
landing and parking charges. The latter comes from commercial activities.
Driven by an increase in traffic, the Group experienced solid revenue streams
from both aeronautical and non-aeronautical activities.
Aeronautical Revenue
The increase in aeronautical revenue is primarily due to the annual tariff
increase of 33 percent, complemented by the increase in overall traffic.
Further, the increase in international traffic, coupled with a better air
traffic movements mix during the World Cup period, has resulted in higher
yields. The year-to-date revenue differential between the proposed economic
regulatory tariff increase of 40,7 percent and the 33 percent actually
granted is approximately R141 million.
Traffic Analysis
ACSA has experienced an upswing in total departing passengers for the period
under review, with year-on-year traffic showing a positive increase of six
percent compared to the previous year. This improvement in traffic is
attributable to the global economic recovery (i.e. the increase in disposable
income and improvement in the global real GDP rate) and most certainly to the
2010 FIFA World Cup.
The value of South Africa as a destination, coupled with our exceptional
infrastructure, has attracted a number of new users to our airports.
In the year under review, Virgin Australia, Jet Airways, Fly Kumba, Zambezi
Airlines and Thai Airways all introduced flights through O.R. Tambo
International. It is difficult to quantify the traffic related to the World
Cup, however, both passenger numbers and air traffic movements increased by
approximately four percent during the period of the tournament.
Non-aeronautical Revenue
The Commercial Services Division is responsible for generating revenue from
non-aeronautical income. This is achieved through retail and advertising
concessions, car parks, property leases, management contracts and consultancy
fees derived from Airports Company South Africa`s airport management
expertise.
Non-aeronautical revenue continues to play a vital role in ACSA`s success. In
the year under review, this revenue contributed 48 percent (2010: 52 percent)
of Group revenue and grew by 22 percent (2010: 7 percent) to R2 228 billion
(2010: R1 829 billion).
Retail
Retail revenue, adjusted for straight-lining of lease income of R20 million
(2010: R11 million), grew by 19 percent (2010: 9 percent) to R704 million
(2010: R594 million) This growth of R110 million is attributable to the
annual rental escalation in ongoing leases, the positive spend during the
World Cup, higher rental margins received from new tenders, and was offset by
lower top-up rentals.
Trading conditions were difficult, with the spend per passenger at O.R. Tambo
International airside, duty-free mall decreasing in South African Rand terms.
The strengthening of the Rand against UK, US and European currencies also had
a negative influence.
However, in line with the global economic recovery, as well as the additional
capacity created through the completion of infrastructure expansion, with
King Shaka International contributing an additional 3 000m2 and about 2
500m2 at Cape Town International, resulted in the revenue per passenger
increasing from R36 to R42. Further, the FIFA World Cup contributed an
estimated R80 million to the total revenue, although the actual number of
visitors was considerably less than had been predicted.
The introduction of Emirate`s direct flights from Luanda to Dubai resulted in
the high-spending Angolans no longer passing through our airports, thereby
impacting on retail income.
The growth in retail income is mainly attributable to the increase in rental
margin from Big Five Duty Free, annual rental escalations, the improved
visibility of duty-free stores and an improved retail offering at O. R. Tambo
International.
Further contributions were from longer trading hours during the World Cup
period, as well as allowing retailers to place merchandise outside their
lease-line in front of the shops.
The installation of TV screens in the Food Court at Cape Town International
helped increase trade.
With retail infrastructure now complete, the future outlook will be primarily
focused on increasing turnover by improving tenant mix, reviewing and
improving passenger flows to better integrate with retail layouts and to
improve customer satisfaction on product offering through price, customer
service and convenience.
Trends in the past five years
Category 2007 2008 2009 2010 2011 CAGR*
Retail Income (SA Rand, millions)
364 446 534 595 701 18%
Departing Passengers (000)
16 460 18 199 16 795 16 511 17 506 2%
Average Retail Area (m2)
23 559 25 059 28 297 30 841 35 277 11%
Income per Passenger
R22,10 R24,50 R31,78 R36,02 R40,20 16%
* CAGR: Compound Annual Growth Rate
Lettable space (m2) as at 31 March 2011
Airport Int Airside* Dom,Airside** Landside Total
O.R. Tambo International
11 236 1 060 8 283 20 579
Cape Town International
2 311 1 598 4 872 8 781
King Shaka International
576 1 057 4 219 5 852
National Airport - 150 3 218 3 368
Total 14 123 3 865 20 592 38 580
*International Airside
**Domestic Airside
Convenience will be enhanced through the recent launch of `Click, Buy, Fly`,
a web platform allowing passengers to purchase duty-free, on-line, prior to
departing. In addition, the introduction of purchasing duty-free goods on
departure and collecting them on arrival is being pursued.
Generally, throughout the terminals, signage and way finding will be further
enhanced by the introduction of digital retail directory kiosks at all the
international airports. In addition, these will be used to advertise the
extensive offerings available. Smartphones represent a powerful commercial
opportunity by targeting passengers and this will be possible through
passengers downloading information at the airport.
Car Parking
Car parking revenue increased by 24 percent to R409 million (2010: R331
million). It was anticipated that long-term, business demand-driven parking
would suffer during the World Cup, but it was expected that this would be
compensated for by an increase in short-stay parkers; unfortunately this did
not materialise.
Parking numbers at O.R. Tambo International were adversely affected by the
opening of the Gautrain, causing an estimated monthly reduction in income of
approximately R2 million.
All airports achieved parking revenue growth in excess of 20 percent in a
stressed global economy where most major airports are reflecting revenue
growth in non-aeronautical activities of less than five percent.
Parking bay provision
Structured Shaded Open Total
O.R. Tambo International Airport
10 100 3 500 1 400 15 000
Cape Town International Airport
5 800 1 400 - 7 200
King Shaka International Airport
1 500 3 000 - 4 500
National Airports - 730 1 800 2 530
Totals 17 400 8 630 3 200 29 230
ACSA`s superior parking performance is due to judicious tariff re-
structuring, an improvement in the product/pricing mix and improved revenue
control. In addition, public awareness campaigns in respect of bay
availability, competitive pricing and choice have improved customer
perceptions of parking options and ease of use.
Car rental
Car rental revenue grew by 10 percent (2010: 2 percent) to R145 million
(2010: R132 million) after adjusting for straight lining of leases totalling
R14 million (2010: R2 million), due largely to the additional capacity
created and taken up across all airports.
The combination of local businesses not travelling during the World Cup
period, and World Cup demand not meeting expectations, had a negative effect
on car hire results. Car rental revenues are being impacted by travellers
using the Gautrain, and this loss of business will increase with the
commissioning of the remainder of the rail network. The introduction of
Gauteng toll roads will result in users reviewing their transport options.
Gross revenue earned by car rental operators continues to be under pressure
with passengers opting for lower category vehicles and a reduction in the
length of rentals for cars rented by foreign inbound passengers due the
strong South African Rand. Lower prices charged by operators in order to
improve vehicle utilisation affected turnover negatively.
Advertising
In the financial year under review, ACSA`s advertising revenue increased by
46 percent to R228 million (comprising the smoothing of leases to the value
of R5 million and income of R223 million) when compared to R156 million in
2010.
This phenomenal growth is due to the increased infrastructure following the
upgrading of Cape Town International Airport and the commissioning of King
Shaka International Airport.
ACSA was successful in excluding the airports from FIFA advertising
jurisdiction, which generated a variety of advertising opportunities for
advertisers that were not FIFA commercial affiliates. Furthermore, the World
Cup created huge interest in airport advertising from FIFA commercial
sponsors and attracted brands such as Coca-Cola, MTN and VISA. Income was
further boosted by leveraging new areas for advertising and selling directly
at premium rates during the tournament period.
The World Cup drove advertising innovation, firstly by creating specific
zones or area of dominance for each brand where their visibility was almost
exclusive. VISA created a brand zone around the air-bridges, being the first
brand visible to all arrivals on the apron. Coca-Cola created innovation
around their brand colour red by rolling out a Red Carpet in the
International Arrival area at O. R. Tambo International, giving the soccer
fans a red carpet welcome to South Africa. This was coupled with a joint
ACSA/Coca-Cola branded can of Coke given to all arriving international
passengers. Brand SA came to the party by branding the O. R. Tambo taxis in
the colours of the South African flag to make them truly South African
passenger carriers.
The commissioning of King Shaka International Airport afforded the
opportunity of introducing larger, high-impact advertising sites, coupled
with segmentation of the terminal into advertising zones. This was
exceptionally well received by the advertising market.
The long-term objective of the portfolio is revenue enhancement through
digital migration and establishment of brand zones. The establishment of
zones will result in the creation of exclusivity and premium revenues. The
portfolio will also engage in aggressive marketing of the airports as the
brand-positioning place of choice. This campaign will assist in creating
local and international awareness, and will attract more spend at the
airports.
Property revenue
The Group, excluding the straight lining of leases of R44 million, (2010: R33
million), grew by 31 percent to R538 million (2010: R411 million). It is
particularly pleasing to record such double digit growth in a currently
depressed and introspective market.
The opening of King Shaka International Airport has been a major contributor
to growth because of the increase in rentable area and the new accommodation
that enabled new leases to be negotiated at improved rentals. The new 303-
room City Lodge Hotel at O.R. Tambo International and the Road Lodge Hotels
at Port Elizabeth and Bloemfontein International Airports opened their doors
on time for the World Cup. The full effect of their turnover rentals will be
realised in the next financial year.
It is generally agreed that the outlook for the property industry is not
bullish in the short- to medium-term. This advises the decision to
concentrate on maximising the existing portfolio by retaining good tenants
through lease renewals, cutting arrears, reducing vacancies and upgrading
aging buildings. Efforts will also be placed on bringing enabled land to
market. Despite owning extensive tracts of land, optimal value is only
derived by offering the market land that is zoned, serviced and with all the
necessary legislative approvals (such as an EIA) in place.
The relocation to King Shaka International Airport posed a major challenge
over how best to utilise the old Durban International Airport site to
accommodate the holding costs of rates, security and maintenance. Various
initiatives, such as the parking of new vehicles by Toyota, have been
explored to cover these costs. The site holds considerable strategic value
and deliberations to finalise its disposal may take some time.
Airport Management Services
Following discussions between the governments of the Democratic Republic of
the Congo (DRC) and South Africa, ACSA was requested to submit a proposal for
partnership in the modernisation of the DRC`s three major airports. Those
under consideration are Kinshasa, Lubumbashi and Mbuji Mayi. Several other
airport investment opportunities were evaluated for viability.
During the current financial year, Airport Management Solutions participated
in an airport bid for a 25-year concession in respect of Madinah
International Airport in Saudi Arabia. The bid was however abandoned shortly
after successful prequalification and issue of transaction documents owing to
inter alia restrictive timelines and onerous investment commitments, creating
a marginal project at best from a viability perspective.
The division continued to forge partnerships with various airport authorities
on the African continent. These included a visit by senior executives from
the Federal Airports Authority of Nigeria and another by technical
specialists from Uganda Civil Aviation Authority.
ACSA is exploring the establishment of a wholly owned subsidiary that will
pursue airport investment and technical advisory opportunities beyond South
Africa. Investment opportunities consist of concessions and management
contracts, mainly in the emerging markets. The rationale for this approach is
to increase the organisational agility required to secure opportunities,
provide a comprehensive investment mandate and allocate more resources to
reflect the increasing importance of income diversification. It is also
necessary to address pertinent economic regulatory issues and to minimise
exposure to the financial position. This strategy will yield positive results
in the medium-term to long-term.
Mumbai International Airport
Mumbai International Airport experienced impressive traffic growth in the
last financial year, with more than 29 million passengers travelling through
the airport, a 14 percent growth over the previous year. The increase in
cargo handled increased by an impressive 36 percent to 340 000 tonnes.
Revenue increased over the previous financial year by 18,3 percent and this
was accompanied by a concerted effort to manage expenses such that profit
after tax increased by 48 percent to approximately R552 million. The 10
percent profit after tax attributable to ACSA, on its equity contribution of
approximately R150 million, is R55 million.
The redevelopment of the airport, currently estimated to cost R16 billion, is
scheduled to be completed by the end of 2013 and will enable the airport to
accommodate 45 million passengers per annum. The funding plan anticipates
ACSA providing further equity in the order of R60 million for the completion
of the project.
ACSA has now been involved in the management of the airport for five years.
Experience in modernising airports whilst they are in operation has been
invaluable in enabling ACSA to provide support with the upgrading of existing
terminal buildings, the development of a new terminal and with the extremely
demanding strengthening and resurfacing of runways and construction of new
taxiways and aprons.
Operating expenses
Total operating expenses increased to R2 053 million, mainly due to
inflationary increases, costs associated with the additional capacity created
and the preparation for the 2010 FIFA World Cup. Further, the combination of
abnormal increases in utilities, information technology, customer care (World
Cup costs), outsourced services, repairs and maintenance, personnel and
security costs, together resulted in a significant increase in operational
costs.
The Group continues to focus on managing discretionary expenses in order to
mitigate the financial challenges of constrained income. Despite these
challenges, the Group has managed to minimise the overall operational costs
increase to be significantly lower than the increase in the key drivers.
Financing costs
Total interest for the period was R1 506 million, compared to R673 million
(the 2010 interest amount is after capitalisation of interest of R688
million) in the same period last year. The Group continued to focus on
reducing credit spreads through interest rate derivatives and the
diversification of the sources of funding. EBITDA interest coverage remains
constrained at 1,74 times.
Financial position
Total assets for the Group increased by R1,2 billion. The increase is largely
driven by the revaluation of investment property in line with the Group`s
accounting policy.
The additions to property, plant and equipment for the period under review
were R505 million (2010: R5 218 million). The decrease is in line with the
reduced capital expenditure programme and savings realised through the
delivery of the infrastructure.
Total liabilities increased by R542 million, which is attributable to
additional short-term borrowings (commercial paper) in the current financial
year. In addition, there is an increase in the net value of derivative
financial instruments of approximately R405 million. The Group entered into
interest rate swaps of approximately R3,5 billion to hedge the interest rate
movements. The Group borrowings were raised at the time when interest rates
where significantly higher (during the global economic crisis) and, as a
result, a considerable portion of the borrowings was floating to take
advantage of future reduction in interest rates. The interest rate swaps were
entered into following the substantial decline in interest rates (i.e. during
September 2009 to March 2010). However, further unexpected interest rate
reductions were effected subsequently in order to improve the domestic
growth. This has resulted in the substantial increase in the unrealised fair
value loss.
The average cost of borrowings for the period under review is estimated at
9,2 percent, a decrease from 2010`s 9,75 percent.
Cash flow
The Group received cash from customers of R4 579 million and paid suppliers
an amount of R2 814 million. This resulted in cash generated from operations
of R1 765 million.
The net cash outflow from financing activities is R999 million after taking
into account interest paid of R1 466 million and net debt raised of R467
million.
Outlook
The Group has created a solid asset base over the last four years, which,
coupled with the investment made in across-the-board personnel development,
has presented a great opportunity for value creation into the future.
Accordingly, ACSA will continue to focus on embedding its customer focus
approach and stakeholder engagement drive, putting energy and effort towards
ensuring that the existing infrastructure is well maintained and optimised to
deliver value by placing emphasis on long-term business sustainability and
business excellence.
In the short-term, the Company recognises the need for an improvement in its
financial position and credit metrics. There is no immediate need for
infrastructure delivery in the medium-term, however, the Group will monitor
the demand and need for capacity to ensure that a responsible and timely
delivery of infrastructure will be delivered in line with growth
expectations.
Economic regulations
In anticipation of the next Permission, which is due to commence on 1 April
2013, the Department of Transport has developed a roadmap to address the
shortcomings in the current regulatory framework, as well as the formulation
and promulgation of regulations to support the purposes and intentions of the
Airports Company and Air Traffic and Navigation Services Acts. The roadmap
also aims to develop a suitable funding model for both of the regulated
entities.
Revenue and traffic trends
Traffic volumes for the airport network are projected to grow by five to
eight percent, both in the number of passengers and in aircraft movements.
The projected increase is driven largely by the expected growth in the South
African economy, as well as expected global economic recovery. A slight
improvement in the consumer sentiment is also anticipated, due to the
economic recovery, with a resultant increase in spend per passenger at our
airports. The remodelling of our retail stores, and the consequent additional
capacity, gives us an opportunity to explore and grow this area of our
business. The Group also expects to capitalise on its property portfolio, as
well as other non-aeronautical revenue streams, such as advertising revenue,
on the back of the projected economic growth.
Financial overview
Group revenue is expected to grow by at least 26 percent in the next
financial year as a result of the expected increase in traffic volume, as
well as the promulgated tariff increase of approximately 34,8 percent. This
will contribute positively towards the Group`s financial performance and
result in positive earnings.
Whilst the Group is expected to return to positive earnings in the next
financial year, it is envisaged that it will take approximately two years
before it is able to earn an appropriate commercial return, in line with the
anticipated risks of the business. The key credit metrics, including the
gearing ratio, are expected to be normalised within the set threshold by the
end of March 2013. The Group is committed to maintain these metrics within
the set threshold, going forward.
Although there are still a number of issues to be addressed, in terms of the
development of an appropriate economic regulatory framework, significant
progress has been achieved in resolving the policy issues, which have created
uncertainty for the investors over the past five years. ACSA fully supports
the Department of Transport`s roadmap to address the fundamental issues
within the economic regulatory framework to ensure predictability, certainty
and balance of risks and rewards as ACSA progresses.
Financial Statements for the year ended 31 March 2011
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
For the year ended 31 March 2011
GROUP COMPANY
31 Mar 2011 31 Mar 2010 31 Mar 2011 31 Mar 2010
Note R`000 R`000 R`000 R`000
ASSETS
Non-current assets 27 357 913 26 587 912 26 135 050 25 368 290
Property, plant and equipment
6 21 589 594 23 268 429 21 548 984 23 225 425
Investment property
8 4 669 802 2 433 438 3 814 692 1 630 483
Intangible assets 7 301 273 110 993 300 724 110 118
Investment in subsidiaries
9 - - 288 285 256 289
Investment in joint ventures
10 - - *- -*
Investments in associates
11 647 129 661 327 32 250 32 250
Other receivables 12 150 115 113 725 150 115 113 725
Current assets 1 798 667 1 303 266 1 684 592 1 219 642
Inventories 13 916 908 - -
Derivative financial instruments
26 163 235 - 163 235 -
Trade and other receivables
14 955 635 868 361 942 766 869 026
Cash and cash equivalents
15 678 881 433 997 578 591 350 616
Total assets 29 156 580 27 891 178 27 819 642 26 587 932
EQUITY AND LIABILITIES
Equity
Share capital 16 500 000 500 000 500 000 500 000
Share premium 16 250 000 250 000 250 000 250 000
Other reserves 18 821 638 (28 513) 891 079 (20 860)
Treasury share reserve
17 (44 024) (44 024) - -
Retained earnings 8 070 624 8 290 669 7 404 226 7 713 751
Total equity attributable to equity holders
9 598 238 8 968 132 9 045 305 8 442 891
Debentures 19 6 000 6 000 - -
Total equity 9 604 238 8 974 132 9 045 305 8 442 891
Non-current liabilities 16 171 645 15 685 697 15 412 531 14 925 446
Interest bearing borrowings
22 14 266 707 14 704 336 13 577 231 14 028 653
Retirement benefit obligations
20 137 106 105 043 137 106 105 043
Derivative financial instruments
26 610 013 46 945 610 013 46 945
Deferred income 21 77 367 79 524 77 367 79 524
Deferred income tax liabilities
23 1 080 452 749 849 1 010 814 665 281
Current liabilities 3 380 697 3 231 349 3 361 806 3 219 595
Trade and other payables
24 909 136 1 800 155 893 346 1 790 901
Interest bearing borrowings
22 2 340 762 1 305 692 2 339 262 1 304 193
Provisions 25 65 742 66 257 65 694 66 257
Derivative financial instruments
26 61 849 56 381 61 849 56 381
Current income tax liability
1 553 1 001 - -
Deferred income 21 1 655 1 863 1 655 1 863
Total liabilities 19 552 342 18 917 046 18 774 337 18 145 041
Total equity and liabilities
29 156 580 27 891 178 27 819 642 26 587 932
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the year ended 31 March 2011
GROUP COMPANY GROUP
Note 2011 2010 2011 2010
R`000 R`000 R`000 R`000
Revenue 27 4 658 239 3 530 825 4 514 839 3 378 089
Other operating income
28 11 072 821 333 11 066 821 316
Employee benefit expenses
30 (714 163) (674 440) (694 599) (655 087)
Depreciation and amortisation expense
6 & 7 (1 445 228) (1 077 449) (1 439 651) (1 072 636)
Other operating expenses
31 (1 340 017) (1 004 943) (1 288 499) (950 770)
Operating profit 1 169 903 1 595 326 1 103 156 1 520 912
Fair value gains/(losses)
29 98 760 (62 685) 46 784 (83 155)
Share of profit of equity accounted associate
11 56 075 135 832 - -
Net finance expense
32 (1 506 041) (673 435) (1 435 102) (604 959)
Finance income 32 597 59 631 29 814 58 160
Finance expenses (1 567 325) (1 420 832) (1 493 603) (1 347 562)
Finance expenses capitalised
28 687 687 766 28 687 684 443
(Loss)/Profit before tax (181 303) 995 038 (285 162) 832 798
Income tax expense 33 (39 227) (94 252) (24 363) (73 946)
(Loss)/Profit for the year
(220 530) 900 786 (309 525) 758 852
Other comprehensive income for the year, net of tax
850 635 (7 304) 911 939 (2 930)
Gain on revaluation of investment property
1 283 391 - 1 283 391 -
Actuarial losses on defined benefit post
retirement medical aid liability
20 (16 809) (4 070) (16 809) (4 070)
Foreign currency translation differences
(85 145) (6 075) - -
Income tax relating to components of other
comprehensive income (330 802) 2 841 (354 643) 1 140
Total comprehensive income for the year
630 105 893 482 602 414 755 922
(Loss)/Profit attributable to owners of the parent
(220 530) 900 786 (309 525) 758 852
Total comprehensive income attributable to owners
of the parent 630 105 893 482 602 414 755 922
Earnings per share
Basic (cents) (4 464) 18 233
Diluted (cents) (4 464) 18 233
CONSOLIDATED STATEMENT OF CASH FLOWS
For the year ended 31 March
GROUP COMPANY
Note 2011 2010 2011 2010
R`000 R`000 R`000 R`000
CASH FLOWS FROM OPERATING ACTIVITIES
Cash receipts from customers
4 579 333 3 578 829 4 449 460 3 408 506
Cash paid to suppliers and employees
(2 814 558)(2 194 734) (2 765 651) (2 071 964)
Cash generated from operations
38.1 1 764 775 1 384 095 1 683 809 1 336 542
Income tax paid 38.2 (21 467) (275 632) (16 800) (269
146)
Dividends received - 14 542 - 14 542
Interest received 32 598 45 089 29 814 43 618
Net cash inflow from operating activities
1 775 906 1 168 094 1 696 823 1 125
556
CASH FLOWS FROM INVESTING ACTIVITIES
Increase in investments (31 663) (71 592) - (32 250)
Loans granted to subsidiaries
- (31 994) (5 889)
Proceeds on disposal of property, plant and equipment
4 123 981 959 4 123 981 959
Additions to property, plant and equipment and investment
Property (505 368)(5 240 614) (502 333)(5 218 795)
Net cash outflow from investing activities
(532 908)(4 330 247) (530 204)(4 274 975)
CASH FLOWS FROM FINANCING ACTIVITIES
Interest bearing borrowings repaid
(3 482 808)(6 286 211) (3 482 808) (6 286 211)
Interest bearing borrowings raised
3 950 000 10 163 177 3 950 000 10 163 177
Interest paid (1 465 763)(1 276 235) (1 405 836) (1 204 960)
Net cash (outflow)/inflow from financing activities
(998 571) 2 600 731 (938 644) 2 672 006
Net foreign currency translation adjustments
457 6 075 - -
Increase/(decrease) in cash and cash equivalents
244 884 (555 347) 227 975 (477 413)
Cash and cash equivalents at beginning of year
433 997 989 344 350 616 828 029
Cash and cash equivalents at end of year
15 678 881 433 997 578 591 350 616
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 31 March 2011
ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT
Share Share Retained Treas Other Total Non-Con Deben TOTAL
Capital premium earnings share resv resv 1 tr int tures
interest
Balance at 1 April 2009
500 000 250 000 7 390 749 (44 024) (22 075)8 074 650 - 6 000 8 080 650
Transactions with owners
Comprehensive income
Profit for the year
- - 900 786 - - 900 786 - - 900 786
Other comprehensive income
- - - - - - -
Actuarial losses on defined benefit
post retirement medical aid liability
- - - - (2 930)(2 930) - - (2 930)
Foreign currency translation
differences
- - - - (4 374)(4 374) - - (4 374)
Transfer to life fund
- - (866) - 866 - - - -
Total comprehensive income
- - 899 920 - (6 438) 893 482 - - 893 482
Balance at 1 April 2010
500 000 250 000 8 290 669 (44 024) (28 513)8 968 132 - 6 000 8 974
132
Transactions with owners
Comprehensive income
Profit for the year
- - (220 530) - - (220 530) - - (220 530)
Other comprehensive income
Actuarial losses on defined benefit
post retirement medical aid liability
, net of tax
- - - - (12 102)(12 102) - - (12 102)
Gain on revaluation of investment
property, net of tax
- - - - 924 042 924 042 - - 924 042
Foreign currency translation
differences, net of tax
- - - - (61 304)(61 304)- - (61 304)
Transfer between reserves
- - 485 - (485) - - - -
Total comprehensive income
- - (220 045) - 850 151 630 106 - - 630 106
Balance at 31 March 2011
500 000 250 000 8 070 624 (44 024) 821 638 9 598 238 - 6 000 9
604 238
COMPANY
Balance at 1 April 2009
500 000 250 000 6 954 899 - (17 930)7 686 969 - - 7 686 969
Transactions with owners
Comprehensive income
Profit for the year
- - 758 852 - - 758 852 - - 758 852
Other comprehensive income
Actuarial losses on defined benefit
post retirement medical aid liability
- - - - (2 930) (2 930) - - (2 930)
Total comprehensive income
- - 758 852 - (2 930) 755 922 - - 755 922
Balance at 1 April 2010
500 000 250 000 7 713 751 - (20 860) 8 442 891 - - 8 442 891
Transactions with owners
Comprehensive income
Profit for the year
- - (309 525) - - (309 525)- - (309 525)
Other comprehensive income
Actuarial losses on defined benefit
post retirement medical aid liability,
net of tax
- - - - (12 102) (12 102) - - (12 102)
Gain on revaluation of investment
property, net of tax
- - - - 924 041 924 041 - - 924 041
Total other comprehensive income
- - - - 911 939 911 939 - - 911 939
Total comprehensive income
- - (309 525) - 911 939 602 414 - - 602 414
Balance at 31 March 2011
500 000 - 250 000 7 404 226 891 079 9 045 305 - - 9 045 305
For further details please refer to the annual report available on the ACSA
website www.acsa.co.za
Date: 30/03/2012 13:45:02 Produced by the JSE SENS Department.
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