Selected Explanatory Notes to the summary Audited Financial Statements

1

Basis of preparation

 

The summarised financial statements for the year ended 31 August 2012 have been prepared in accordance with the recognition and measurement principles of International Financial Reporting Standards (“IFRS”), the presentation and disclosure requirements of IAS 34 Interim Financial Reporting, the AC 500 Standards as issued by the Accounting Practices Board, the requirements of the South African Companies Act and the JSE Listings Requirements. The accounting policies and methods of computation applied in the preparation of the summarised financial statements are in accordance with IFRS and are consistent with those applied in the preparation of the annual financial statements for the year ended 31 August 2011.

The summarised financial statements do not contain all the information and disclosures required in the annual financial statements.

The summarised financial statements have been extracted from the audited group annual financial statements upon which KPMG Inc. has issued an unqualified report. The audited group annual financial statements are available for inspection at the registered office of the company.

2

Accounting policies

 

The accounting policies and methods of computation applied in the preparation of these summary financial statements are consistent with those applied in the preparation of the group’s annual financial statements for the year ended 31 August 2011.

3

Revenue

    2012
R’000
2011
R’000
  Turnover 15 436 947 14 135 948
  Financial income 5 876 8 235
  Other income 800 554 688 935
  Distribution and logistics fees 413 741 361 324
  Rental income 207 401
  Cost recoveries and other 386 606 327 210
       
    16 243 377 14 833 118
   

4

Share capital

    2012
R’000
2011
R’000
  Authorised    
  600 million (2011: 600 million) ordinary shares of one cent each 6 000 6 000
  50 million (2011: 50 million) “A” ordinary shares of one cent each 500 500
  Issued ordinary shares    
  2012: 276.123 million (2011: 270.652 million) ordinary shares of one cent each and 29.153 million (2011: 29.153 million) “A” ordinary shares of one cent each 3 054 2 999

    Ordinary 
shares 
000 
“A” ordinary 
shares 
000 
2012 
000 
2011 
000 
  Reconciliation of total number of shares in issue to net number of shares in issue        
  Total number of shares in issue at the end of the year 276 123  29 153  305 276  299 805 
  Treasury shares held at the end of the year (23 081) (29 153) (52 234) (46 846)
  Net number of shares in issue at the end of the year 253 042  –  253 042  252 959 
           
        2012 
R’000 
2011 
R’000 
  Of the shares in issue, the group holds the following treasury shares:        
           
  Shares held by a subsidiary – 22.886 million (2011: 17.197 million) ordinary shares of one cent each – cost     925 972  697 405 
           
  Shares held by the Share Trust – 0.195 million (2011: 0.495 million) ordinary shares of one cent each – cost     1 700  5 374 
           
  Shares held by the Clicks Group Employee Share Ownership Trust – 29.153 million (2011: 29.153 million) “A” ordinary shares of one cent each – cost     291  291 
        927 963  703 070 
   
 

No ordinary shares were cancelled during the year (2011: 20 343 271 shares of one cent each held by a subsidiary were cancelled).

The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the company.

In respect of the company’s shares held by entities within the group, all voting rights are suspended until those shares are reissued.

The unlisted “A” ordinary shares have the same rights and rank pari passu with the ordinary shares in all respects except for distribution rights.

The holders of “A” ordinary shares are entitiled to an annual distribution equal to 10% of the cumulative distribution declared in relation to an ordinary share in a financial year.

5

Reconciliation of segmental operating profit

    2012 
R’000 
2011 
R’000 
  Business unit segmental operating profit 1 011 328  937 590 
  Loss on disposal of property, plant and equipment (6 578) (6 250)
  Financial income 5 876  8 235 
  Financial expense (52 272) (41 861)
  Profit before taxation 958 354  897 714