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New Clicks Holdings Limited [logo] Reviewed group results for the year end 31 August 2004

Notes

Accounting policies

These reviewed financial results have been prepared in accordance with South African Statements of Generally Accepted Accounting Practice, and the accounting policies used are consistent with those applicable for the 2003 annual financial statements except in the case of accounting for the Share Trust. These results have been reviewed by KPMG Inc. and their unqualified review report is available for inspection at the company's registered office.

The group previously consolidated companies that were controlled by the group. The group now consolidates all entities over whose financial and operating policies the group has the power to exercise control. Consequently, the group now consolidates its Share Trust. The change was effected in order to comply with JSE Securities Exchange Listings Requirements and AC132 - Consolidated financial statements. The change in policy has not been applied retrospectively as the changes required to comparative financial information are not material.

Discontinued operations

It was announced on 5 January 2004 that New Clicks Holdings Limited and its wholly-owned subsidiary New Clicks International Holdings NV ("New Clicks") had entered into an agreement to dispose of New Clicks' interest in New Clicks Australia (Proprietary) Limited ("NCA") to Synapse Holdings (Proprietary) Limited, a company owned by a consortium of private equity funders (the "consortium").

The sale proceeds were Australian $107 million. Out of these proceeds, New Clicks retired certain bank debts and financial lease liabilities as at 28 December 2003, amounting to Australian $19.7 million; and the consortium and NCA redeemed redeemable preference shares held by New Clicks for a redemption consideration of Australian $67.2 million.

New Clicks received Australian $87.3 million as net sales proceeds from the disposal, including the redemption consideration in respect of the preference shares, and a preference dividend of Australian $1.5 million, which was declared and paid prior to the completion date of 13 February 2004. This represents a surplus over the ungeared tangible net assets as at 31 August 2003. These proceeds were received on 17 February 2004, realising a profit on sale of R1.7 million. The profit on sale of R4.4 million reported at interim was adjusted for final expenses of R2.7 million.

The results of the NCA operations were incorporated in the New Clicks results until 31 December 2003, and have been disclosed separately in the income statement as discontinued operations.

With effect from 1 March 2004 the group disposed of its 80% holding in Intercare Managed Healthcare (Proprietary) Limited ("Intercare"). A profit of R0.6 million was realised on the disposal. The results of Intercare were incorporated in the New Clicks results until 29 February 2004, and have been disclosed separately in the income statement as discontinued operations.

Change in comparatives

An amount of R34.7 million has been reallocated from other expenses to gross profit in 2003. This amount relates to discounts granted by New United Pharmaceutical Distributors ("NUPD") which were previously included in operating expenses.

An amount of R69.3 million has been reallocated from loans payable classified as non-current liabilities to loans payable classified as current liabilities in 2003. This amount relates to the current portion of long-term liabilities. The reallocation was necessary in order to correctly reflect the maturity profile of the group's borrowings.

For segmental reporting purposes, Link Investment Trust and NUPD, which were previously reported as separate segments, have been combined into a single segment referred to as NUPD. Comparatives have been restated accordingly.