NOTES TO THE COMPANY ANNUAL FINANCIAL STATEMENTS l NOTE 6
    2014 
Rm 
  2013 
Rm 
6. Non-redeemable, non-participating preference shares      
  Non-redeemable, non-participating preference shares at cost 441    441 
  4 540 041 preference shares were issued during the 2007 financial year and are listed on the JSE under specialist securities − preference shares sector.

These shares are entitled to a preference dividend being 82,5% of the prime interest rate. The company is obligated to pay any arrear dividends within five years from the proceeds raised by issuing new ordinary shares within six months prior to such payment. Because of the cumulative nature of these preference shares they are classified as debt with no repayment terms.

The coupon is payable semi-annually on 1 April and 1 October and annually this amounts to R32 million (2013: R32 million) which is included as part of finance cost in profit or loss.