Audited condensed results for the year ended 30 June 2012

Notes to the condensed consolidated financial statements



Basis of preparation

The condensed consolidated financial statements have been prepared in accordance with the recognition and measurement criteria of International Financial Reporting Standards (IFRS) and its interpretations adopted by the International Accounting Standards Board (IASB) in issue and effective for the Group at 30 June 2012 and the AC 500 standards issued by the Accounting Practices Board or its successor. The results are presented in accordance with IAS 34 – Interim Financial Reporting and comply with the Listings Requirements of the JSE Limited and the Companies Act of South Africa, 2008. These financial statements do not include all the information required for full annual financial statements and should be read in conjunction with the consolidated financial statements as at and for the year ended 30 June 2011.

These condensed consolidated financial statements were approved by the board of directors on 21 August 2012.

Accounting policies

The accounting policies adopted and methods of computation used in the preparation of the condensed consolidated financial statements are in terms of IFRS and are consistent with those of the annual financial statements for the year ended 30 June 2011, except where the Group has adopted new or revised accounting standards.

New accounting standards

The Group adopted accounting standards and interpretations that became applicable during the current reporting period. None of these have had a significant impact on the Group’s accounting policies and methods of computation, and there is therefore no impact in the current and prior year results.

Core earnings

The Group reports a core earnings number which excludes significant non-operational items of income and expenditure from reported headline earnings.

Discontinued operations

Discontinued operations are immaterial to the Group. Their results are included in continuing operations in the income statement and under Head Office and Eliminations on the segment report. The impact on the trading result is insignificant and fair value adjustments of R112 million have been included in exceptional items.

Subsequent events

In terms of the Ukhamba black economic empowerment transaction, 1 131 910 deferred ordinary shares have converted to ordinary shares with effect from 1 July 2012. These shares will be listed on the Johannesburg Securities Exchange.

Audit opinion

The auditors, Deloitte & Touche, have issued their opinion on the Group’s annual financial statements for the year ended 30 June 2012. The audit was conducted in accordance with International Standards on Auditing. They have issued an unmodified audit opinion. A copy of their audit report is available for inspection at the company’s registered office, and is incorporated in the full annual financial statements. Any reference to future performance included in this announcement has not been reviewed or reported on by the company’s auditors.

Preparer of financial statements

These condensed consolidated financial statements have been prepared under the supervision of R Mumford CA(SA) and have been audited in terms of section 29 (1) of the Companies Act of South Africa, 2008.

Operational segmental reporting

For management purposes, the Group is organised into five major operating divisions – Logistics, Car Rental and Tourism, Distributorships, Automotive Retail and Financial Services. These divisions are the basis on which the Group reports its primary segment information.

The principal services and products of each of these divisions are as follows:

Logistics – provides complete logistics solutions including transportation, warehousing, inland waterway shipping, container handling and related value-added services.

Car Rental and Tourism – vehicle rental operations span the domestic corporate and leisure sectors as well as inbound tourists, with extensive support services. Tourism operations include inbound tour operations and niche tourism services.

Distributorships – this segment imports and distributes a range of passenger, commercial vehicles, automotive products, industrial equipment, motorcycles and light aircraft.

Automotive Retail – consists of a large network of motor vehicle and commercial vehicle dealerships in South Africa and represents most of the major original equipment manufacturers (OEM’s). It also manufactures and sells caravans and canopies.

Financial Services – comprises insurance operations which are focused on a range of short-, medium- and long-term insurance and assurance products that are predominantly associated with the automotive market, the sale of warranty and maintenance products, income from joint ventures on the sale of financial services, cell captive arrangements and factoring of premium finance operations.