Financial results

The information presented below is an extract from the audited annual financial statements, but is not itself audited. The directors take full responsibility for the preparation of the information presented in this section, and that the information has been correctly extracted from the underlying audited financial statements.

SUMMARISED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AT 30 SEPTEMBER

  2018
Rm
  2017  
Restated*
Rm  
 
ASSETS        
Cash and cash equivalents 900   944    
Tax receivables 17   22    
Trade and other receivables 1 126   687    
Inventories 478   212    
Loans and advances 9 592   8 456    
Purchased book debts 1 374   891    
Other loans receivable 39   41    
Intangible assets 283   247    
Property and equipment 167   150    
Goodwill 1 142   1 135    
Deferred tax assets 224   259    
TOTAL ASSETS 15 342   13 044    
LIABILITIES        
Bank overdrafts 116   136    
Tax payables 5   19    
Trade and other payables 737   554    
Provisions 148   147    
Interest-bearing liabilities 9 817   8 191    
    Senior debt 8 753   7 228    
    Subordinated debt 1 060   963    
    Finance leases 4   –    
Deferred tax liabilities 326   225    
TOTAL LIABILITIES 11 149   9 272    
EQUITY        
Ordinary share capital 1 056   1 056    
Reserves 52   34    
Retained earnings 3 026   2 628    
EQUITY ATTRIBUTABLE TO ORDINARY EQUITY HOLDERS OF THE PARENT 4 134   3 718    
Non-controlling interests 59   54    
TOTAL EQUITY 4 193   3 772    
TOTAL EQUITY AND LIABILITIES 15 342   13 044    
* In terms of IFRS 3: Business Combinations, the provisional accounting applied to the acquisition of Recoveries Corporation was finalised in December 2017. As a result, trade and other payables were reduced by R30 million, with a corresponding reduction in goodwill. The impact on the statement of comprehensive income is negligible.

SUMMARISED CONSOLIDATED INCOME STATEMENT

FOR THE YEAR ENDED 30 SEPTEMBER

  2018 
Rm 
  2017 
Rm 
 
Interest and other similar income  2 154     1 971    
Interest and other similar expense  (1 054)    (964)   
NET INTEREST INCOME  1 100     1 007    
Impairment of loans and advances  (314)    (260)   
RISK-ADJUSTED NET INTEREST INCOME  786     747    
Non-interest revenue  2 377     1 937    
Operating costs  (2 244)    (1 910)   
Non-operating loss  (3)    (3)   
PROFIT BEFORE TAX  916     771    
Income tax expense  (218)    (203)   
PROFIT FOR THE YEAR  698     568    
PROFIT FOR THE YEAR ATTRIBUTABLE TO:             
    Ordinary equity holders of the parent  682     555    
    Non-controlling interests  16     13    
EARNINGS PER SHARE (CENTS)            
Basic earnings per share  111.7     92.8    
Diluted basic earnings per share  110.6     92.2    

SUMMARISED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 30 SEPTEMBER

  2018 
Rm 
  2017 
Rm 
 
PROFIT FOR THE YEAR  698     568    
OTHER COMPREHENSIVE INCOME/(LOSS)            
Movement in cash flow hedging reserve     (8)   
    Fair value gain/(loss) arising during the year     (12)   
    Deferred tax  (1)      
Movement in equity instruments held at fair value  –     (72)   
Exchange (loss)/gain on translation of foreign operations  (14)    15    
TOTAL COMPREHENSIVE INCOME FOR THE YEAR  686     503    
TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO:             
    Ordinary equity holders of the parent  670     490    
    Non-controlling interests  16     13    

SUMMARISED CONSOLIDATED HEADLINE EARNINGS RECONCILIATION

FOR THE YEAR ENDED 30 SEPTEMBER

Headline earnings is equal to profit after tax for the year as there are no headline earnings adjustments required.

  2018
Rm
  2017
Rm
 
Headline earnings 682   555  
Transaction and other acquisition-related costs   22  
CORE HEADLINE EARNINGS 682   577  

SUMMARISED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 30 SEPTEMBER

  Share 
capital 
Rm 
Reserves 
Rm 
Retained 
earnings 
Rm 
  Ordinary 
equity 
holders 
Rm 
Non- 
controlling 
interests 
Rm 
  Total 
equity 
Rm 
 
BALANCE AT 30 SEPTEMBER 2016  510  149  2 285     2 944  34     2 978    
Total comprehensive (loss)/income  –  (65) 555     490  13     503    
    Profit for the year  –  –  555     555  13     568    
    Other comprehensive loss  –  (65) –     (65) –     (65)   
Grant of share appreciation rights and conditional share plans  –  18  –     18  –     18    
Settlement of share appreciation rights  –  (20) (64)    (84) –     (84)   
Transfer to retained earnings  –  (48) 48     –  –     –    
Dividends paid  –  –  (196)    (196) (3)    (199)   
Issue of shares  557  –  –     557  –     557    
Repurchase of shares  (11) –  –     (11) –     (11)   
Non-controlling interests arising on business combinations  –  –  –     –  10     10    
BALANCE AT 30 SEPTEMBER 2017  1 056  34  2 628     3 718  54     3 772    
Total comprehensive (loss)/income  –  (12) 682     670  16     686    
    Profit for the year  –  –  682     682  16     698    
    Other comprehensive loss  –  (12) –     (12) –     (12)   
Grant of share appreciation rights and conditional share plans  –  31  –     31  –     31    
Settlement of share appreciation                            
rights and conditional share plans  –  (1) (4)    (5) –     (5)   
Dividends paid  –  –  (280)    (280) (11)    (291)   
Issue of shares  –  –     –       
Repurchase of shares  (9) –  –     (9) –     (9)   
BALANCE AT 30 SEPTEMBER 2018  1 056  52  3 026     4 134  59     4 193    

SUMMARISED CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 30 SEPTEMBER

  2018 
Rm 
  2017 
Rm 
 
CASH FLOW FROM OPERATING ACTIVITIES        
Cash generated by operations  1 464     1 134    
Income taxes paid  (87)    (51)   
Dividends received from insurance activities  –     115    
Dividends paid  (291)    (199)   
CASH FLOW FROM OPERATING ACTIVITIES BEFORE CHANGES IN OPERATING ASSETS AND LIABILITIES  1 086     999    
INCREASE IN OPERATING ASSETS AND LIABILITIES  (2 057)    (1 852)   
    Loans and advances (1 457)    (1 572)   
    Purchased book debts  (600)    (280)   
CHANGES IN WORKING CAPITAL  (520)    (244)   
    Increase in inventories  (265)    (127)   
    Increase in trade and other receivables  (430)    (223)   
    Decrease/(increase) in other loans receivable     (6)   
    Increase in trade and other payables  173     112    
NET CASH UTILISED BY OPERATING ACTIVITIES  (1 491)    (1 097)   
CASH FLOW FROM INVESTING ACTIVITIES             
Business combinations  (35)    (226)   
Acquisition of property and equipment  (59)    (66)   
Proceeds on disposal of property and equipment     –    
Acquisition of intangible assets  (60)    (70)   
NET CASH UTILISED BY INVESTING ACTIVITIES  (149)    (362)   
CASH FLOW FROM FINANCING ACTIVITIES             
Proceeds from interest-bearing liabilities  5 946     4 164    
Settlement of interest-bearing liabilities  (4 320)    (3 438)   
Repurchase of shares  (9)    (11)   
Issue of shares  –     449    
NET CASH GENERATED FROM FINANCING ACTIVITIES  1 617     1 164    
NET DECREASE IN CASH AND CASH EQUIVALENTS  (23)    (295)   
Cash and cash equivalents at the beginning of the year*  808     1 103    
Effects of exchange rate changes on the balance of cash held in foreign currencies  (1)    –    
CASH AND CASH EQUIVALENTS AT THE END OF YEAR*  784     808    
* Cash and cash equivalents are presented net of bank overdrafts.