| Wed 6 Sep 2006, 7:27 | | Primedia Limited - Audited Report for the year end |
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PMA PMAP PMN
PMA
Primedia Limited - Audited Report for the year ended 30 June 2006
Primedia Limited
Incorporated in the Republic of South Africa
Registration number 1993/003355/06
Share code PMA & ISIN ZAE000035119
Share code PMN & ISIN ZAE000035127
Share code PMAP & ISIN ZAE000080529
("Primedia" or "the company" or "the group")
HIGHLIGHTS
Revenue up 23% to R2.4 billion
EBITDA up 28% to R531.4 million
PBIT up 31% to R461.0 million
Adjusted HEPS* up 32% to 125 cents
Cash generated from operations up 23% to R480.4 million
Free cash flow per share up 32% to 135 cents
Shareholder distributions per share up 52% to 85 cents
100% of adjusted headline earnings returned to shareholders
*Excluding IFRS 2 BEE ownership transaction expense
Condensed consolidated income statement
% Restated
R"000 change 2006 2005
Revenue from continuing operations 23 2 387 210 1 937 769
Operating profit before
depreciation ("EBITDA") 28 531 449 415 039
Depreciation and amortisation
of software (70 412) (61 839)
Operating profit before
amortisation of other
intangibles, share option
expense, unrealised
foreign exchange and exceptional
items ("PBIT") 31 461 037 353 200
Amortisation of other intangible assets (4 045) (13)
Share option expense (7 570) (3 906)
Net unrealised foreign
exchange (losses)/gains (5 200) 117
Exceptional items (87 863) 16 368
Operating profit (3) 356 359 365 766
Net finance costs (47 523) (47 334)
Share of associated companies" profits - 457
Profit before tax (3) 308 836 318 889
Income tax expense (102 055) (87 377)
Profit for the year from
continuing operations 206 781 231 512
Profit for the year from
discontinued operations 204 148
Profit for the year (11) 206 985 231 660
Attributable to:
Primedia Limited"s ordinary shareholders 182 177 214 320
Primedia Limited"s preference
shareholders 1 629 -
Minority interest 23 179 17 340
206 985 231 660
Earnings per share attributable
to ordinary shareholders (cents)
- Basic 81 96
- Diluted basic 78 94
ADDITIONAL INFORMATION
% Restated
R"000 change 2006 2005
Determination of headline earnings
Profit for the year attributable
to ordinary shareholders 182 177 214 320
Net loss/(profit) on disposal
of property, plant and equipment 105 (206)
Exceptional items: non-headline earnings (10 594) (2 805)
Impairment of assets and equity
investments 3 308 578
Profit on disposal of assets and
investments (13 902) (3 063)
Write back of costs previously written off - (320)
Tax effect of non-headline earnings items 1 688 95
Headline earnings 173 376 211 404
Number of shares ("000)
- Issued 225 975 221 748
- Weighted average 225 891 223 032
- Diluted weighted average 232 299 228 494
Headline earnings per share (cents)
- Adjusted headline (excluding
- IFRS 2 BEE ownership expense) 32 125 95
- Headline 77 95
- Diluted headline 75 93
Net asset value per share (cents) 259 199
Restated
R"000 2006 2005
Exceptional items
Non-headline items above 10 594 2 805
IFRS 2 expense relating to
BEE ownership transaction (108 398) -
Reversal of loan impairment 4 700 14 910
Profit on disposal of listed
investment and intellectual property 4 430 -
Charitable donation - (3 000)
Other 811 1 653
Gross exceptional items (87 863) 16 368
Condensed consolidated balance sheet
Restated
R"000 2006 2005
ASSETS
Property, plant and equipment 315 724 306 085
Goodwill and intangible assets 653 326 441 633
Other investments and loans 12 361 25 543
Deferred tax asset 116 944 124 025
Non-current assets 1 098 355 897 286
Inventories 59 307 51 767
Trade and other receivables 443 967 405 789
Bank balances and cash 60 740 4 368
Assets classified as held for sale 15 071 -
Current assets 579 085 461 924
TOTAL ASSETS 1 677 440 1 359 210
EQUITY AND LIABILITIES
Share capital and premium 214 953 274 717
Reserves 360 251 136 725
Minority interest 9 637 30 780
Total equity 584 841 442 222
Long-term borrowings 138 961 241 276
Long-term provisions 20 099 22 699
Deferred tax liability 77 689 65 580
Non-current liabilities 236 749 329 555
Trade, other payables and provisions 612 347 475 208
Bank overdraft and short-term borrowings 233 624 112 225
Liabilities associated with
assets classified as held for sale 9 879 -
Current liabilities 855 850 587 433
TOTAL EQUITY AND LIABILITIES 1 677 440 1 359 210
Condensed consolidated cash flow statement
Restated
R"000 2006 2005
Cash generated from operations 480 373 389 850
Net finance costs (43 422) (30 845)
Dividends paid to minorities (94) -
Tax paid (73 765) (69 365)
Net cash inflow from
operating activities 363 092 289 640
Net acquisition of subsidiaries
and investments (109 031) (206 613)
Minority interests acquired (9 595) (191 568)
Net additions to property,
plant, equipment and software (70 775) (86 604)
Net cash outflow from
investing activities (189 401) (484 785)
Distribution to shareholders (166 878) (103 289)
Net proceeds from issue of shares 138 762 29 060
Net share acquisitions by
The Primedia Trust (105 727) (29 106)
Net borrowings (repaid)/raised (99 863) 225 008
Net cash (outflow)/inflow
from financing activities (233 706) 121 673
Net decrease in cash
and cash equivalents (60 015) (73 472)
Exchange rate adjustments 2 390 1 064
Cash and cash equivalents
at beginning of year (6 411) 65 997
Cash and cash equivalents
at end of year (64 036) (6 411)
Condensed statements of changes in shareholders" equity
Share capital Minority
R"000 and premium Reserves interest Total
GROUP
Balance at 1 July 2004
as previously
reported 351 362 (34 203) - 317 159
IFRS adjustments - 12 328 40 12 368
SA GAAP adjustment - (10 739) - (10 739)
Balance at 1 July 2004
as restated 351 362 (32 614) 40 318 788
Net (loss)/income
recognised directly
in equity (73) (22 197) 21 968 (302)
Shares issued during
the year 29 133 - - 29 133
Net distribution
to shareholders (103 289) - - (103 289)
Movement in treasury
shares (2 416) (26 690) - (29 106)
Profit for the year - 214 320 17 340 231 660
Share option expense - 3 906 - 3 906
Minority interest
acquired - - (8 568) (8 568)
Balance at 30 June
2005
as restated 274 717 136 725 30 780 442 222
Net (loss)/income
recognised directly
in equity (11 240) (1 965) 4 449 (8 756)
Share issue expenses (11 240) - - (11 240)
Recovery of share
premium previously
written off - (3 894) 4 449 555
Translation
reserve movement - 1 929 - 1 929
Shares issued
during the year 150 002 - - 150 002
Net distribution
to shareholders (166 878) - - (166 878)
Movement in
treasury shares (35 679) (70 048) - (105 727)
Profit for the year - 183 806 23 179 206 985
Share option expense 4 031 3 335 204 7 570
BEE ownership
transaction expense - 108 398 - 108 398
Acquisition of
minority interests - - (48 081) (48 081)
Dividends declared
to minorities - - (894) (894)
Balance at 30 June
2006 214 953 360 251 9 637 584 841
SEGMENT REPORT
% Restated
R"000 change 2006 2005
Revenue
Advertising 21 1 146 817 950 288
Content 22 1 140 374 933 827
New media sectors 76 947 33 467
One to one marketing 63 174 62 726
Discontinued operation (40 102) (42 539)
2 387 210 1 937 769
PBIT
Advertising 32 395 308 298 761
Content 17 87 596 74 950
New media sectors 2 251 2 785
One to one marketing 3 786 2 095
Discontinued operation (227) (652)
Central (27 677) (24 739)
461 037 353 200
Segment result
Advertising 388 932 293 951
Content 88 151 89 384
New media sectors (708) 2 073
One to one marketing 3 567 2 251
Discontinued operation (227) (652)
Central (123 356) (21 241)
356 359 365 766
CAPITAL EXPENDITURE, COMMITMENTS AND CONTINGENCIES
Restated
R"000 2006
2005
Future capital commitments 108 014 96 870
Financial commitments 50 941 42 468
Future lease payments 343 040 355 144
Contingent liabilities 210 211 214 184
Indemnities received (202 258) (155 994)
7 953 29 422
Notes
BASIS OF PREPARATION AND ACCOUNTING POLICIES
The annual financial statements have been prepared in accordance with
International Financial Reporting Standards (IFRS) and IAS 34. The group is
reporting under IFRS for the first time for the year ended 30 June 2006 and
comparative figures previously published under SA GAAP have been restated to the
equivalent basis under IFRS. The effective date of the transition to IFRS is 1
July 2004.
The accounting policies used in the preparation of the annual financial
statements are consistent with those applied in the previous financial period,
except as disclosed below:
IFRS 2 Share based payments
In accordance with the provisions of this standard, the group now recognises
the fair value of share options granted to employees as an expense in the
income statement, with a corresponding credit to equity. The group has
extended the scope of IFRS 2 to include the group"s black economic empowerment
initiative and consequently, the fair value of the 8 000 000 shares issued at
par to Mineworkers" Investment Company (Pty) Limited has been expensed in the
income statement.
IAS16 Property, plant and equipment
Residual values and useful lives of assets were re-assessed and where
applicable, restated as required by IAS 16. In terms of the transitional
election made under IFRS 1, certain items of property, plant and equipment
were recognised at deemed cost, being the fair value on 1 July 2004.
SA GAAP adjustments
An adjustment was made in terms of SA GAAP to reduce the carrying value of
deferred tax assets previously raised against equity.
None of the above adjustments mentioned above have any impact on the group"s
cash flow or minority interests.
The income statement and balance sheet impact are as follows:
R"000 Assets Liabilities Equity
1 July 2004
As previously reported 990 452 (673 293) (317 159)
IAS 16 Property,
plant and equipment 12 912 (584) (12 328)
Minority interest - 40 (40)
SA GAAP adjustment (10 739) - 10 739
R"000 Profit Assets Liabilities Equity
1 July 2005
As previously reported (232 912) 1 374 928 (967 729) (407 199)
IFRS 2
Share-based payments 3 906 - - -
IAS 16 Property,
plant and equipment (2 654) 16 973 (1 991) (14 982)
IFRS 3
Business combinations - 1 048 (1 048) -
Minority interest - (23 000) 53 780 (30 780)
SA GAAP adjustment - (10 739) - 10 739
(231 660) 1 359 210 (916 988) (442 222)
COMMENTARY
OVERVIEW
Primedia is extremely proud to have produced another excellent set of results
for the year ended 30 June 2006. The group"s current composition and momentum
should ensure that shareholders are rewarded with consistent and above average
returns, and excellent cash distributions. The group is underpinned by a
strong management team with good strategic insight into the media industry,
great innovation and entrepreneurship.
STRATEGIC REVIEW
A benchmarked, world-class strategy drives Primedia"s performance. The group
continues to track global media trends and monitor best practices. Primedia"s
watching brief allows it to be ahead of the curve in identifyin g global
opportunit ies that are appropriat e to the local media market place, in order
to lead the market and maximise shareholde r returns.
The most outstanding element of Primedia"s strategy is the group"s leadership
of the South African "out of home" media spectrum. Primedia"s reach is
pervasive and includes listening to radio in the car, billboards, commuter
media, airport advertising, shopping mall media, wash room advertising, in-
store media and cinema advertising.
As the world inevitably becomes more digitally centric, Primedia"s out of home
media presence is assuming far greater importance to its clients and
advertisers. Using digital technology to enhance existing traditional delivery
channels (thereby increasing revenue and reducing distribution costs) enables
Primedia to capitalise on global trends and opportunities from the digital
world, which also includes the increasing consumption of digital media by
consumers.
2006 strategic priorities
At the beginning of the 2006 financial year, the group outlined five key
strategic priorities for the short to medium term, namely:
Increased patronage of filmed entertainment by black consumers;
Increased patronage (frequency) of filmed entertainment by traditional
audiences;
The achievement of critical mass for Primedia Unlimited Advertising;
Unlocking value from the group"s sport assets; and
Establishing a greater proportion of earnings from content.
The group can report on a very satisfactory 2006 fiscal.
With regard to the first two priorities, following resolution of Ster-
Kinekor"s product supply problems in November 2005, excellent progress has
been made at the Ster-Kinekor Junction sites, where cinema ticket prices have
been lowered significantly. Black consumer attendances across Ster-Kinekor"s
cinemas now stands at an impressive 36% (2005: 14%) and revenue at Ster-
Kinekor Junction sites has increased by 42% subsequent to the resolution of
the product supply problems and as compared to the corresponding prior period.
Taking into account the slower rate of revenue growth at the Ster-Kinekor
Classic sites, Ster-Kinekor Theatres" overall revenue has increased by 20%
over the same period.
On the back of targeted acquisitions, the financial objective originally set
to attain critical mass at Primedia Unlimited Advertising was an annualised
PBIT of R20 million. Although the division fell marginally short of this
financial objective, much progress has been made, which will translate into
significantly improved results for 2007.
Unlocking the value of the group"s sports assets is a medium to long-term
focus. In particular, satisfactory progress has been made in positioning
Primedia as the preferred media partner to corporate South Africa for the FIFA
2010 World Cup. The recent acquisitions of an 80% stake in Powerview and a 70%
stake in Warwick Sports Marketing by Primedia Sport are both relevant in this
regard.
Content businesses currently contribute approximately 20% of the group"s
operating profit. The group"s medium to long-term objective is to generate
between 30% and 40% of its operating profit from content, which is a less
cyclical earnings driver, although the actual achievement of this target
remains a significant challenge, given the fact that the advertising
businesses continue to grow robustly. Key to the achievement of this strategy
is increasing the size of the group"s existing content businesses, and
diversification into new areas. The improved performance of Ster-Kinekor
Theatres will assist in the achievement of greater scale from the existing
portfolio, while the purchase of a controlling stake in eXactmobile and the
establishment of Primedia Education will assist in achieving greater
diversification.
During 2006, the group achieved organic and innovative growth in operating
profit of 24%. In addition, during and subsequent to the year-end, the group
made a number of earnings enhancing acquisitions, including the bolt-on
acquisitions of:
GMR (Comutanet);
Indiza Media (Primedia Outdoor);
Powerview and Warwick Sports Marketing* (Primedia Sport);
365 Digital (iafrica.com); and
An additional 14% of 94.7 Highveld Stereo (Primedia Broadcasting).
Investments into new, high growth scalable media sectors were also made,
namely:
The Letter Corporation (washroom advertising);
Moving Tactics (campus media);
X/Procure (on-line procurement for the pharmaceutical industry and exclusive
advertising channel);
Merchint* (digital advertising at point of purchase);
eXactmobile* (mobile content); and
Icon Media* (wrap around shopping cart advertising).
The full impact of all these acquisitions will be felt in the 2007 fiscal.
*Acquisitions subsequent to 30 June 2006.
2007 strategic priorities
The group"s key strategic priorities for 2007 are largely a continuation of
2006 strategies, and include the following
Accelerated expansion into new media sectors, with an increased exposure to
content based media;
Realising the full benefit of Ster-Kinekor Theatres" low price ticket
strategy and thereby positioning the company for sustainable growth. This
objective will also enable the group to increase its earnings contribution
from content; and
Continued focus on unlocking the value of the group"s sports assets,
following the shift in the world"s focus from the FIFA 2006 Soccer World Cup
to the event to be hosted by South Africa in 2010.
The group"s growth strategies will also continue to be a major focus, as will
the increase in the scale of many of our businesses.
FINANCIAL RESULTS
Revenue increased by 23% to R2.4 billion. EBITDA rose 28% to R531.4 million.
PBIT increased by 31% to R461.0 million with operating margins increasing
17.9% to 19.0%. Adjusted HEPS calculated excluding the once-off IFRS 2 expense
relating to the BEE issue of shares to Mineworkers Investment Company (Pty)
Limited increased by 32% to 125 cents. The IFRS charge for this transaction
amounted to R108.4 million which is equal to 48 cents per share, with the
result that HEPS reduced by 19% to 77 cents per share.
Particularly pleasing was the group"s continued strong cash generation of
R304.4 million in after-tax free cash flow, which is equal to 135 cents per
share (2005: 102 cents). This exceeded the adjusted headline earnings
(excluding once-off BEE costs) of R281.8 million by 8%. Shareholders received
a total return of R289.9 million during the year through distributions to
shareholders of R166.9 million and share purchases of R123.0 million by the
group share trust, which represented approximately 100% of the group"s
adjusted headline earnings.
The group"s balance sheet was strengthened through the raising of R150 million
in permanent preference share capital which was earmarked for acquisitions, of
which R142.8 million was spent during the year. The balance sheet remains
soundly structured with year-end net debt nearly twice covered by EBITDA and
fully covered by this year"s after-tax free cash flow.
Divisional review
Advertising
This division once again produced stellar results with all major businesses
performing exceptionally well and revenue increasing by 21% to R1.1 billion.
PBIT increased by 32% to R395.3 million and PBIT margins increased to 35% from
31%. Primedia Broadcasting remains the division"s biggest contributor
delivering R255.6 million in PBIT, an improvement of 33%.
Advertising"s non-broadcasting businesses which include Primedia Outdoor,
Primedia Instore, Comutanet, Cinemark and Primedia Sport contributed
R139.7 million in PBIT, up 30%.
Content
This division also posted an impressive performance with revenue increasing by
22% to R1.1 billion and PBIT increasing by 17% to R87.6 million. The November
2005 resolution of product supply problems at Ster-Kinekor Theatres assisted
that division to turn in an impressive second half performance. Ster-Kinekor
Theatres" performance was also positively impacted by good cost improvements
due to benefits derived from prior period expenditure on technology and
systems and a 12% increase in overall theatre attendance, to 18.2 million, on
the back of Ster-Kinekor"s low ticket pricing strategy. Ster-Kinekor Games
performed excellently.
Primedia Unlimited - Advertising
Revenue and PBIT more than doubled to R75.1 million and R10.2 million
respectively. The various acquisitions made since the establishment of the
division have been well integrated and bedded down.
Subsequent to year-end, the division concluded the acquisition of a 74% stake
in Icon Media, which owns the exclusive rights to shopping carts that provide
unique wrap around and retail call to action branding for usage in malls and
retail environments. Together with the momentum from the existing businesses,
this should result in a significantly improved performance for 2007.
Primedia Unlimited - Content
This division reported a loss of R7.9 million in the fiscal (2005:
R1.1 million), mainly due to the R4.4 million losses incurred by Book4Golf, the
online golf booking business and a loss of R1.6 million incurred by the video
and DVD business targeted at the township areas. The video and DVD business
has been sold due to the inability to find a sufficient number of suitable
outlet sites. Book4Golf was not considered viable and has been closed.
Once approval has been received from the Competition Commission for the
group"s recent transaction relating to eXactmobile (expected before the end of
December 2006), the Primedia Unlimited Content division should start to
contribute positively to Primedia"s results.
One to one
This division increased its profitability by 81% to R3.8 million with revenue
remaining unchanged at R63 million. The South African based Knowledge Factory
performed exceptionally well. Agreement has been reached to sell UK-based
Database Group and proceeds to Primedia are estimated at R10 million.
Central
The increase in expenses primarily relates to an increase in the group"s
corporate social investment expenditure.
Prospects
The group"s strategic and financial health is excellent.
In the next fiscal, we expect good growth in operating profit due to
anticipated continued organic and innovative growth, the full year
contribution of acquisitions made during the year as well as from recent
acquisitions. Due to an anticipated higher effective tax rate, growth in HEPS
is expected to be lower than the operating profit growth.
The group also anticipates continued good free cash flow generation, which
will continue to support the group"s distribution policy and further
acquisitions in line with the group"s stated strategy.
Given the progress made to date, the group is focused on development plans
through to 2010 and internal targets have been set which, though ambitious,
are achievable.
Perpetual preference shares
The group successfully completed the private placement of additional equity in
the form of R150 million consisting of 1 500 000 non-redeemable, cumulative,
non-participating preference shares (par value of R0.0002) at a subscription
price of R100 per preference share, including premium. The preference shares
were listed on the JSE Limited on Tuesday, 16 May 2006 and the preference
dividend rate is 75% of the prime overdraft rate.
Notice is hereby given that Preference Dividend No. 1 of 317 cents for the
period ending 2 October 2006, has been declared and will be payable to holders
of non-redeemable, cumulative, non-participating preference shares recorded in
the books of the company on Friday, 29 September 2006 as follows:
Last day to trade "cum" the dividend Thursday, 21 September 2006
Shares to commence trading "ex" the dividend Friday, 22 September 2006
Record date Friday, 29 September 2006
Payment will be made on Monday, 2 October 2006
Preference share certificates may not be rematerialised or dematerialised
during the period Friday, 22 September 2006 to Friday, 29 September 2006, both
days inclusive.
Distribution out of share premium
The group"s distribution policy in respect of ordinary and N ordinary shares
is based on a cover of 1.5 to 2.0 times headline earnings excluding the impact
of non-cash items relating to IFRS 2 and unrealised foreign exchange gains or
losses, which in the period amounted to 130 cents. This represents a reduction
in the group"s previous cover of between 1.7 to 2.0 times cover and is in line
with the continued improvement in the group"s performance.
The Board has, in terms of the specific authority granted to directors at the
annual general meeting held on 25 November 2005, resolved to pay a total cash
distribution of 85 cents per share for the year ended 30 June 2006.
Accordingly, notice is hereby given that a final cash distribution out of
share premium of 45 cents per share (2005: 34 cents per share) for the year
ended 30 June 2006, in lieu of dividends, will be awarded to ordinary and N
ordinary shareholders recorded in the register of the company at the close of
business on Friday, 27 October 2006. This represents an increase of 52%
relative to the previous final period.
Last day to trade "cum" the distribution Friday, 20 October 2006
Shares to commence trading "ex" the distribution Monday, 23 October 2006
Record date Friday, 27 October 2006
Payment will be made on Monday, 30 October 2006
Share certificates may not be rematerialised or dematerialised during the
period Monday, 23 October 2006 to Friday, 27 October 2006, both days
inclusive.
In terms of the requirements of the Companies Act 1973, the directors confirm
that after the payment of the distribution, Primedia will be able to pay its
debts as they become due in the ordinary course of business and its
consolidated assets, fairly valued, will exceed its consolidated liabilities
EVENTS SUBSEQUENT TO YEAR-END
Subsequent to year-end, the South African Revenue Services ("SARS") threatened
to issue an assessment in respect of expenditure incurred by the group in order
to acquire the Africa on Air trademarks, which the group claimed as an allowance
in terms of the Income Tax Act. This expenditure was previously allowed as a
deduction by SARS in terms of an assessment, after specific queries to this
effect. At this stage, the quantum of the group"s exposure, if any, cannot be
ascertained with any degree of certainty. However, the group does not believe
that the grounds put forward by SARS for reopening assessments previously
raised, have any legal merit and appropriate steps are being taken to defend the
group"s position.
Events subsequent to year-end
Subsequent to year-end, the South African Revenue Services ("SARS") has
disputed the group"s R317.0 million expenditure incurred on the Africa on Air
trademark which was claimed for tax purposes as allowed by the Income Tax Act
and assessed as a deductable expense by SARS. At this stage, the quantum of the
group"s exposure, if any cannot be ascertained with any degree of certainty.
However, the group does not believe that the grounds put forward by SARS for
reopening assessments previously raised, have any legal merit and appropriate
steps are being taken to defend the group"s position.
Change in directorate
Subsequent to year-end, the South African Revenue Services ("SARS") has
disputed the group"s R317.0 million expenditure incurred on the Africa on Air
trademark which was claimed for tax purposes as allowed by the Income Tax Act
and assessed as deductable expense by SARS. At this stage, the quantum of the
group"s exposure, if any cannot be ascertained with any degree of certainty.
However, the group does not believe that the grounds put forward by SARS for
reopening assessments previously raised, have any legal merit and appropriate
steps are being taken to defend the group"s position. In the event, 42.5% of
any exposure in this regard relating to periods prior to 30 June 2004 would
be recoverable by the group from previous shareholders in Africa on Air.
Mr Kaizer Motaung, a non-executive director, resigned from the Board during
the period. The Board extends its gratitude to Mr Motaung for his contribution
during his tenure.
The Board welcomes Ms Melody Lekota, the group HR executive, who has been
appointed as an executive director of the Board with effect from 9 June 2006.
Transfer of sector on the JSE Limited
The listing of Primedia"s ordinary and N ordinary shares was transferred to
the "Broadcasting and Entertainment" sub-sector of the JSE Limited with effect
from 19 June 2006.
Audit report
The consolidated results and the annual financial statements for the year have
been audited by Deloitte & Touche. Their unqualified reports are available for
inspection at the company"s registered office.
Acknowledgements
We are most grateful to all our stakeholders and, in particular our dedicated
employees, who have enabled our progress.
For and on behalf of the board
AP Nkuna W Kirsh O Ighodaro
Chairman Chief Executive Chief Financial Officer
Sandton
6 September 2006
Directorate
Executive: W Kirsh (CE), O Ighodaro (CFO), FA Gazendam, M Lekota, K Pillay
Non-Executive: AP Nkuna (Chairman), I Kirsh, HM Madima, P Maw
Independent Non-Executive: MJ Bosman, N Canca, HM Khoza, CS Seabrooke,
BJT Shongwe, SV Zilwa
Alternate: Keshan Pillay (alternate to AP Nkuna)
Company secretary: SE Sather
Registered office Transfer secretaries
6th Floor, Primedia Place, 5 Gwen Lane Computershare Investor Services 2004
(Pty) Limited
Sandown 2196 70 Marshall Street, Johannesburg 2001
Date: 06/09/2006 07:28:13 AM Produced by the JSE SENS Department
