• + 1. Revenue
    1. Revenue
    December 2014 December 2013
    Rm 52 weeks 53 weeks
    Dividends received  1,319.8  1,686.6
    Management and administration fees received  23.1  20.7
     1,342.9  1,707.3
  • + 2. Operating profit
    2. Operating profit
    December 2014 December 2013
    Rm 52 weeks 53 weeks
    Other income includes:
    Foreign exchange profit  0.2  1.4
    Ongoing cellular income -  14.6
    Charges to operating profit includes:
    Share-based payment expense  2.9  7.2
    Contribution to pension scheme  1.3  1.2
  • + 3. Net finance income
    3. Net finance income
    December 2014 December 2013
    Rm 52 weeks 53 weeks
       
    Finance costs
    Interest on Group loans -  (1.0)
    Finance income
    Interest on Group loans  6.6  2.1
    Interest from Banks - -
     6.6  2.1
    Net finance income  6.6  1.1
  • + 4. Taxation
    4. Taxation
    December 2014 December 2013
    Rm 52 weeks 53 weeks
    Current year
    South African normal taxation
     – Current taxation  2.6  6.5
     – Deferred taxation  (1.1)  (2.1)
    Withholding taxation 1 -  0.3
    Total  1.5  4.7
    1The withholding tax relates to interest and dividends paid by foreign controlled entities.
    % December 2014 December 2013
    The rate of taxation is reconciled as follows:
    Standard corporate taxation rate  28.0  28.0
    Exempt income  (27.9)  (27.8)
    Disallowable expenditure -  0.1
    Effective rate  0.1  0.3
  • + 5. Interest in subsidiaries
    5. Interest in subsidiaries
    Rm December 2014 December 2013
    Interest in subsidiaries
    Capensis Investments 241 (Pty) Ltd  698.0  698.0
    Game Discount World (Mauritius) Ltd  0.1  0.1
    Massbuild (Pty) Ltd  296.2  296.2
    Masscash Holdings (Pty) Ltd  82.2  82.2
    Massmart International Holdings Ltd  81.4  81.4
    Tiradeprops 60 (Pty) Ltd  5.0  5.0
    Tiradeprops 66 (Pty) Ltd  5.0  5.0
     1,167.9  1,167.9
    Details of net shares at cost can be found in note 37 in the Group Financial Statements.
    Rm December 2014 December 2013
    Amounts owing by subsidiaries
    Imagegate Ltd  6.9  6.5
    Massbuild (Pty) Ltd  828.3  1,176.2
    Masscash Holdings (Pty) Ltd  807.8  83.2
    Massmart Management and Finance Company (Pty) Ltd  12.1  145.3
    Micawber 269 (RF) (Pty) Ltd  11.5 -
    Mystic Blue Trading 62 (Pty) Ltd  200.0  200.0
    The Fruit Spot (Pty) Ltd  3.2 -
    Wild Developments (Pty) Ltd  122.5 -
     1,992.3  1,611.2
    The loan to Massmart Management and Finance Company (Pty) Ltd bears interest at a variable rate linked to the prime overdraft rate, and is payable on demand. The rest of the loans are unsecured, interest free and are payable on demand.
    Rm December 2014 December 2013
    Amounts owing to subsidiaries
    Capensis Investments 241 (Pty) Ltd -  (1.0)
    Game Discount World (Mauritius) Ltd  (0.1)  (0.1)
    Masstores (Pty) Ltd  (581.9)  (589.2)
    The Drop Inn Group of Liquor Supermarkets (Pty) Ltd  (2.7)  (2.7)
    Tiradeprops 60 (Pty) Ltd  (5.9)  (5.9)
    Tiradeprops 66 (Pty) Ltd  (5.9)  (5.9)
     (596.5)  (604.8)
    These loans are unsecured, interest free and are payable on demand.

     

  • + 6. Other financial assets

     

    6. Other financial assets
    Rm December 2014 December 2013
    Employee Share Trust Loans to the Executive Directors and members of the Executive Committee of Massmart Holdings Limited:1
    Balance at the beginning of the year  36.5  38.3
    Advanced during the year  0.9  0.8
    Repayments  (9.2)  (2.6)
    Less included in other current financial assets (note 8)  (15.1) -
     13.1  36.5
    Listed investments
    Investment in listed shares  1.0  0.7
     1.0  0.7
     14.1  37.2
    1The Employee Share Trust Loans to Executive Directors and members of the Executive Committee of the Company are non-interest bearing and are secured by the underlying ordinary shares in Massmart Holdings Limited. The loans are repayable 10 years after the grant date. Recourse is not limited to these shares and should shares sold to repay these loans be insufficient to recover the balance outstanding, the unrecovered portion remains a debt due and payable. 481,045 (December 2013:664,795) shares with a market value of R69,236,807 (December 2013: R90,139,554) have been pledged.
    For more information on the recognition and measurement of these loans and receivables, and these available-for-sale financial assets refer to note 15.

     

  • + 7. Deferred taxation
    7. Deferred taxation
    Rm December 2014 December 2013
    The major movements during the year are analysed as follows:
    Asset/(liability) at the beginning of the year  1.9  (0.2)
    Charge to profit or loss for the year  1.1  2.1
    Asset at the end of the year  3.0  1.9
    The major components of deferred taxation are analysed as follows:
    Other temporary differences  3.0  1.9
     3.0  1.9
  • + 8. Other current financial assets
    8. Other current financial assets
    Rm December 2014 December 2013
    Employee Share Trust Loans to the Executive Directors and members of the Executive Committee of Massmart Holdings Limited  15.1 -
     15.1 -
    For more information on the terms and conditions of the share trust loans, refer to note 6.
    The current portion relates to the resignation of Grant Pattison.

     

  • + 9. Issued capital
    9. Issued capital
    Share capital Share premium
    Rm December 2014 December 2013 December 2014 December 2013
    Authorised
    500,000,000 (December 2013: 500,000,000) ordinary shares of 1 cent each  5.0  5.0 - -
    20,000,000 (December 2013: 20,000,000) non-redeemable cumulative non-participating preference shares of 1 cent each  0.2  0.2 - -
    18,000,000 (December 2013: 18,000,000) ‘A’ convertible redeemable non-cumulative participating preference shares of 1 cent each  0.2  0.2 - -
    4,000,000 (December 2013: 4,000,000) ‘B’ convertible redeemable non-cumulative participating preference shares of 1 cent each - - - -
    Issued
    217,118,072 (December 2013: 217,109,044) ordinary shares of 1 cent each  2.2  2.2  733.4  743.3
    2,858,745 (December 2013: 2,867,773) ‘B’ convertible redeemable non-cumulative participating preference shares of 1 cent each - - - -
    Number of Share capital Share premium
    shares Rm Rm
    Ordinary shares
    Balance at December 2012  216,910,195  2.2  752.1
    Shares issued in terms of the Massmart Black Scarce Skills Trust  198,849 - -
    Ordinary shares issued – December 2013  217,109,044  2.2  752.1
    Treasury shares  (86,221) -  (8.8)
    Ordinary shares issued excluding treasury shares – December 2013  217,022,823  2.2  743.3
    Balance at December 2013  217,109,044  2.2  743.3
    Shares issued in terms of the Massmart Black Scarce Skills Trust  9,028 -  0.9
     217,118,072  2.2  744.2
    Treasury shares  (194,765) -  (10.8)
    Ordinary shares issued excluding treasury shares – December 2014  216,923,307  2.2  733.4
    Ordinary shares, which have a par value of 1 cent, carry one vote per share and carry the right to dividends.
    ‘A’ convertible redeemable non-cumulative participating preference shares
    Balance at December 2012  9,395,053  0.1 -
    Shares redeemed in accordance with the provisions of the Memorandum of Incorporation  (9,395,053)  (0.1) -
    Balance at December 2013 - - -
    Balance at December 2014 - - -
    There are no ‘A’ convertible redeemable non-cumulative participating preference shares in issue as the residual shares were automatically redeemed on the vesting of the Massmart Thuthukani Empowerment Trust scheme, in terms of the Trust Deed in the prior financial year. On 1 October 2012, the final conversion for the beneficiaries took place.
    ‘B’ convertible redeemable non-cumulative participating preference shares
    Balance at December 2012 - - -
    Net shares issued in terms of the Massmart BEE transaction  3,066,622 - -
    Shares converted to ordinary shares  (198,849) - -
    Balance at December 2013  2,867,773 - -
    Net shares issued in terms of the Massmart BEE transaction  2,867,773 - -
    Shares converted to ordinary shares  (9,028) - -
    Balance at December 2014  2,858,745 - -
    B’ convertible redeemable non-cumulative participating preference shares, which have a par value of 1 cent, are held in the Massmart Black Scarce Skills Trust. These shares carry one vote per share, which are cast by the trustees, and do not carry the right to dividends. On election of the beneficiary, the shares will convert to ordinary shares on a one-for-one basis and will rank pari passu with all ordinary shares then in issue.
    Share options granted under the Massmart Holdings Limited Employee Share Trust
    At December 2014, executives and senior employees have options of 8,773,054 (December 2013: 9,723,039) ordinary shares of which 4,303,391 (December 2013: 6,649,943) are unvested.
    Share options granted under the employee share incentive scheme carry no rights to dividends and no voting rights. Additional information of the Employee Share Incentive Scheme can be found in note 30. The Share Based Payment Reserve relates to only the executive directors, refer to note 36 in the Group Financial Statements.
    During the current financial year, the only shares bought in the market by the Massmart Holdings Limited Executive Share Trust where 0.6 million shares (0.3% of average shares in issue) at an average price of R128.22 totalling R73.7 million.
    During the prior financial year, the only shares bought in the market were by the Share Trust where 1.2 million shares (0.6% of average shares in issue) were bought at an average price of R186.76 totalling R223.0 million.
    The directors have the authority, until the next annual general meeting, to issue the ordinary shares of the Company up to a maximum of 5% of the shares already issued.

     

  • + 10. Other reserves
    10. Other reserves
    Rm December 2014 December 2013
    Balance at the beginning of the year  17.5  12.5
    Treasury shares  (0.3)  (2.2)
    Share-based payment expense  2.9  7.2
    Revaluation of listed investments  0.3 -
     20.4  17.5
    Reconciliation of the treasury share reserve
    Balance at the beginning of the year  0.2  2.4
    Movement on treasury shares  (0.3)  (2.2)
     (0.1)  0.2
    Reconciliation of the share-based payment reserve
    Balance at the beginning of the year  16.5  9.3
    Share-based payment expense related to Massmart Holdings Limited Employee Share Trust  2.9  7.2
     19.4  16.5
    Reconciliation of the listed investments reserve
    Balance at the beginning of the year  0.8  0.8
    Revaluation of listed investments to market value  0.3 -
     1.1  0.8
    The Group introduced a new share incentive scheme in the prior financial year. The share-based payment reserve arises on the granting of share options, referred to as the Employee Share Option Scheme, and share awards, referred to as the Employee Share Award Scheme, to employees under the Employee Share Incentive Schemes of the Group. Details of the Employee Share Incentive Schemes can be found in note 29 in the Group Financial Statements. The share-based payment valuation of the Employee Share Option Scheme was performed by Alexander Forbes. The share-based payment valuation of the Employee Share Award Scheme was performed using a valuation system acquired by the Group with the necessary model inputs having been determined by management. Management derived these inputs through consultation with various financial institutions, and they are representative of the market data available for Massmart Holdings Limited’s share at the reporting date.

     

  • + 11. Cross-suretyships and promissory notes
    11. Cross-suretyships and promissory notes
    Rm December 2014 December 2013
    Cross-suretyships under banking and other financial facilities  9,003.1  7,403.1
     9,003.1  7,403.1
    Banking facilities incorporate, amongst others, letters of credit, forward exchange contracts and electronic fund transfers. These facilities have been secured by cross-suretyships between Group companies.
    First National Bank has provided shared facilities amounting to R0.7 billion to the Company and fellow Group companies.
    ABSA Bank has provided shared facilities amounting to R3.2 billion to the Company and fellow Group companies.
    Nedbank has provided shared facilities amounting to R2 billion to the Company and fellow Group companies.
    Gross cross-suretyships to the value of R0.6 billion have been lodged as security by and between the Company and fellow Group companies with Walmart.
    Gross cross-suretyships to the value of R0.4 billion have been lodged as security by and between the Company and fellow Group companies with Inkotha Investments Limited.
    Gross cross-suretyships to the value of R1.1 billion have been lodged as security by and between the Company and fellow Group companies with Standard Bank.
    Gross cross-suretyships to the value of R0.5 billion have been lodged as security by and between the Company and fellow Group companies with Investec.
    Gross cross-suretyships to the value of R0.6 billion have been lodged as security by and between the Company and fellow Group companies Ivuzi Investments (RF) Ltd.
    At the reporting date the Massmart Group was net cash positive.
  • + 12. Notes to the statement of cash flows
    12. Notes to the statement of cash flows
    Rm December 2014 December 2013
    12.1 Cash inflow from trading
    Profit before taxation  1,322.5  1,697.4
    Adjustment for:
    Finance costs -  1.0
    Finance income  (6.6)  (2.1)
    Dividends received  (1,319.8)  (1,686.6)
    Share-based payment expense  2.9  7.2
    Other non-cash movements  (9.9)  (14.1)
     (10.9)  2.8
    12.2 Working capital movements
    Increase in trade and other payables  2.7  1.0
    Decrease in trade and other receivables  7.3 -
     10.0  1.0
    12.3 Dividends paid
    Cash dividends paid to shareholders  (914.0)  (913.4)
    12.4 Taxation paid
    Amounts owing at the beginning of the year  (7.1)  (0.9)
    Amounts charged to the income statement  (1.5)  (4.7)
    Deferred taxation  (1.1)  (2.1)
    Amounts owing at the end of the year  6.6  7.1
    Cash amounts paid  (3.1)  (0.6)
    12.5 Other investing activities
    Other financial assets  8.0  (31.4)
    12.6 Net acquisition of treasury shares  (27.4)  (121.8)
    Share trust losses
  • + 13. Related parties
    13. Related parties
    Rm Dividends received Management Fees received Interest received Dividends paid Interest paid
    December 2014
    Income Statement transactions between related parties are as follows
    - Massbuild (Pty) Ltd  447.6 - - - -
    - Masscash Holdings (Pty) Ltd  270.0 - - - -
    - Game Discount World (Mozambique) - - - - -
    - Masstores (Pty) Ltd  602.2  23.1 - - -
    - Massmart Management & Finance Company (Pty) Ltd - -  6.6 - -
    - Main Street 830 (Pty) Ltd - - -  479.3 -
     1,319.8  23.1  6.6  479.3 -
    December 2013
    Income Statement transactions between related parties are as follows
    - Massbuild (Pty) Ltd  337.3 - - - -
    - Masscash Holdings (Pty) Ltd  339.7 - - -
    - Game Discount World (Mozambique)  1.9 - - - -
    - Masstores (Pty) Ltd  897.0  20.7 - - -
    - Massmart Management & Finance Company (Pty) Ltd - -  2.1 -  0.9
    - Main Street 830 (Proprietary) Ltd - - -  479.3 -
    - The Massmart Thuthukani Empowerment Trust  31.6 - - - -
     1,607.5  20.7  2.1  479.3  0.9
    Additional information can be found in note 1 for dividends and management fees received in the Company Financial Statements.
    Additional information can be found in note 3 for interest received in the Company Financial Statements.
    Additional information can be found in note 5 for loans to and from related parties in the Company Financial Statements.
    Additional information can be found in note 35 and note 36 in the Group Financial Statements with regards to Directors’ emoluments and interest of directors in the Company’s share scheme.

     

  • + 14. Fair Value
    14. Fair Value
     
     
      Fair value hierarchy
     
      The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments identified below. The table below reflects ‘Financial instruments’ carried at fair value and those ‘Financial instruments’ that have carrying amounts that differ from their fair values, in the Statement of Financial Position:
     
    Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities
    Level 2: other techniques for which all inputs that have a significant effect on the recorded fair value are observable, either directly or indirectly
    Level 3: techniques that use inputs that have a significant effect on the recorded fair value that are not based on observable market data
    Financial instruments in the Statement of Financial Position
      Rm Total Carrying Amount Total Fair Value Level 1 Level 2 Level 3
     
      December 2014
      Financial Assets
      Loans and receivables  29.2  24.7  1.0  23.7 -
      - Employee share trust loans  28.2  23.7 -  23.7 -
      - Investment in listed shares  1.0  1.0  1.0 - -
     
       29.2  24.7  1.0  23.7 -
     
    There were no transfers between Level 1 and Level 2 fair value categories during the December 2014 financial year, and no transfers into or out of Level 3.
    The financial assets and financial liabilities have been presented based on an analysis of their respective natures, characteristics and risks.
    Financial instruments in the Statement of Financial Position
      Rm Total Carrying Amount Total Fair Value Level 1 Level 2 Level 3
     
      December 2013
      Financial Assets
      Loans and receivables  37.2  28.0  0.7  27.3 -
      - Employee share trust loans  36.5  27.3 -  27.3 -
      - Investment in listed shares  0.7  0.7  0.7 - -
     
       37.2  28.0  0.7  27.3 -
     
    There were no transfers between Level 1 and Level 2 fair value measurements during the December 2013 financial year, and no transfers into or out of Level 3.
    The financial assets and financial liabilities have been presented based on an analysis of their respective natures, characteristics and risks.
      Fair value measurement and valuation techniques for level 2 financial instruments
     
      Type of financial instrument Fair value at December 2014 (Rm) Valuation technique Significant inputs Input 2014  
       
       
      Financial Assets  
       
      Loans and receivables  23.7  
      Employee share trust loans  23.7 DCF Market interest rate  
       
       23.7  
       
      Type of financial instrument Fair value at December 2013 (Rm) Valuation technique Significant inputs Input 2013  
       
       
      Financial Assets  
       
      Loans and receivables  27.3  
      Employee share trust loans  27.3 DCF Market interest rate  
       
       27.3  
       
      Valuation technique Description of valuation technique
     
      Discounted cash flow (DCF) The DCF method involves the projection of a series of cash flows. To this projected cash flow series, an appropriate, market-derived discount rate is applied to establish the present value of the cash flow stream associated with the item. With regards to assets, the fair value is estimated using explicit assumptions regarding the benefits and liabilities of ownership over the asset’s life including an exit or terminal value. To this end, the Company applies Level 2 of the expected present value technique .
  • + 15. Financial Instruments
    15. Financial Instruments
    Capital risk management
    The Company manages its capital to ensure that it will be able to continue as a going concern while maximising the return to stakeholders through the optimisation of the debt and equity balances.
    The capital structure of the Company consists of equity attributable to equity holders of the parent, comprising share capital, share premium, other reserves and retained profit. Additional information can be found on note 9 and note 10 respectively.
    The targeted level of gearing is determined after consideration of the following key factors :
    - the needs of the Company to fund current and future capital expenditure to achieve its stated production growth target; and
    - the desire of the Company to maintain its gearing within levels considered to be acceptable taking into account potential business opportunities and the position of the Company in the business cycle.
    The targeted level of gearing was adequately managed in the current financial year.
    Classification of financial instruments
    Rm Financial instrument Liability at amortised cost Loans and receivables Available-for-sale financial instruments Non-financial instruments
    December 2014
    Non-current assets  14.1 -  13.1  1.0  1,170.9
    - Investment in subsidiaries - - - -  1,167.9
    - Other financial assets  14.1 -  13.1  1.0 -
    - Deferred taxation - - - -  3.0
    Current assets  2,018.1 -  2,018.1 - -
    - Other current financial assets  15.1 -  15.1 - -
    - Trade and other receivables  3.7 -  3.7 - - -
    - Amounts owing by subsidiaries  1,992.3 -  1,992.3 - - -
    - Cash on hand and bank balances  7.0 -  7.0 - - -
    Total assets  2,032.2 -  2,031.2  1.0  1,170.9
    Current liabilities  605.1  605.1 - -  19.1
    - Trade and other payables  8.6  8.6 - -  12.5
    - Taxation - - - -  6.6
    - Amounts owing to subsidiaries  596.5  596.5 - - -
    Total liabilities  605.1  605.1 - -  19.1
    Rm Financial instrument Liability at amortised cost Loans and receivables Available-for-sale financial instruments Non-financial instruments
    December 2013
    Non-current assets  37.2 -  36.5  0.7  1,169.8
    - Investment in subsidiaries - - - -  1,167.9
    - Other financial assets  37.2 -  36.5  0.7 -
    - Deferred taxation - - - -  1.9
    Current assets  1,629.6 -  1,629.6 - -
    - Trade and other receivables  11.0 -  11.0 - -
    - Amounts owing by subsidiaries  1,611.2 -  1,611.2 - -
    - Cash on hand and bank balances  7.4 -  7.4 - -
    Total assets  1,666.8 -  1,666.1  0.7  1,169.8
    Current liabilities  613.4  613.4 - - -  16.9
    - Trade and other payables  8.6  8.6 - - -  9.8
    - Taxation - - - -  7.1
    - Amounts owing to subsidiaries  604.8  604.8 - - - -
    Total liabilities  613.4  613.4 - -  16.9
    Financial risk management
    The Company does not trade in financial instruments, but in the ordinary course of business operations, the Group is exposed to a variety of financial risks arising from the use of financial instruments. These risks include:
    - market risk (comprising interest rate risk and currency risk);
    - liquidity risk; and
    - credit risk.
    The Company has developed a comprehensive risk management process to facilitate, control and monitor these risks. This process includes formal documentation of policies, including limits, controls and reporting structures. The Executive Committee is responsible for risk management activities within the Company.
    Market risk management
    Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. The market risks that the Company is primarily exposed to include interest rate risk and currency risk. Market risk is managed by identifying and quantifying risks on the basis of current and future expectations and ensuring that all trading occurs within defined parameters. This involves the review and implementation of methodologies to reduce risk exposure. The reporting on the state of the risk and risk practices to executive management is part of this process. The processes set up to measure, monitor and mitigate these market risks are described below. There has been no change to the Company’s exposure to market risk or the manner in which it manages and measures the risk since the prior period.
    Interest rate risk management
    The Company is exposed to interest rate risk because it borrows and invests surplus funds with Massmart Management and Finance (Pty) Ltd through floating rate borrowings to fund its operations. The Company is exposed to interest rate risk through these borrowings.
    The carrying amount of the Group’s financial assets and liabilities at reporting date that are subject to interest rate risk is as follows :
    December 2014 Subject to interest rate movement Non-interest bearing Total
    Rm Fixed Floating
    Non-current assets - -  14.1  14.1
    - Other financial assets - -  14.1  14.1
    Current assets -  19.1  1,999.0  2,018.1
    - Other current financial assets - -  15.1  15.1
    - Trade and other receivables - -  3.7  3.7
    - Amounts owing by subsidiaries -  12.1  1,980.2  1,992.3
    - Cash on hand and bank balances -  7.0 -  7.0
    Total assets -  19.1  2,013.1  2,032.2
    Current liabilities - -  605.1  605.1
    - Trade and other payables - -  8.6  8.6
    - Amounts owing to subsidiaries - -  596.5  596.5
    Total liabilities - -  605.1  605.1
    December 2013 Subject to interest rate movement Non-interest bearing Total
    Rm Fixed Floating
    Non-current assets - -  37.2  37.2
    - Other financial assets - -  37.2  37.2
    Current assets -  152.7  1,476.9  1,629.6
    - Trade and other receivables - -  11.0  11.0
    - Amounts owing by subsidiaries -  145.3  1,465.9  1,611.2
    - Cash on hand and bank balances -  7.4 -  7.4
    Total assets -  152.7  1,514.1  1,666.8
    Current liabilities - -  613.4  613.4
    - Trade and other payables - -  8.6  8.6
    - Amounts owing to subsidiaries - -  604.8  604.8
    Total liabilities - -  613.4  613.4
    Interest rate sensitivity
    The Company is sensitive to the movements in the SA Prime interest rate. The rates of sensitivity represents management’s assessment of the possible change in interest rates. The average interest rate for the Company for the year was 7.20% (December 2013: 6.00%), and the variable interest paid was Nil (December 2013: R1.0 million). If the SA Prime interest rate increased or decreased by 100 basis points (December 2013: increased or decreased by 150 basis points) at year-end, the profit for the year would have increased or decreased by R0.8 million respectively (December 2013: increased or decreased by less than R0.3 million respectively).
    Currency risk management
    All liabilities are ZAR denominated. Foreign-denominated assets are not covered by forward exchange contracts.
    The carrying amount of the Group’s foreign currency denominated monetary assets at reporting date is as follows :
    Rm South African Rand Euro GBP Total
    December 2014
    Loans and receivables
    Other financial assets  29.2 - -  29.2
    Trade receivables  3.7 - -  3.7
    Amounts owing by subsidiaries  1,985.4  0.4  6.5  1,992.3
    Cash on hand and bank balances  7.0 - -  7.0
     2,025.3  0.4  6.5  2,032.2
    December 2013
    Loans and receivables
    Other financial assets  37.2 - -  37.2
    Trade receivables  11.0 - -  11.0
    Amounts owing to subsidiaries  1,604.7 -  6.5  1,611.2
    Cash on hand and bank balances  7.4 - -  7.4
     1,660.3 -  6.5  1,666.8
    Foreign currency sensitivity
    The Company is primarily exposed to the movements in the British pound. The rates of sensitivity represents management’s assessment of the possible change in currency rates. If the British Pound increased or decreased by 10% (December 2013: increased or decreased by 10%) at year-end, the profit for the year would have increased or decreased by less than R0.02 million respectively (December 2013: increased or decreased by less than R0.1 million respectively).
    Liquidity risk management
    Repayable Repayable
    Rm within 1 year 1 – 5 years Total
    December 2014
    Financial liabilities
    Trade and other payables  8.6 -  8.6
    Amounts owing to subsidiaries  596.5 -  596.5
    Total undiscounted cash flows of the Company’s financial liabilities  605.1 -  605.1
    Less: Future finance charges -
    Total financial liabilities  605.1
    Repayable Repayable Total
    Rm within 1 year 1 – 5 years
    December 2013
    Financial liabilities
    Trade and other payables  8.6 -  8.6
    Amounts owing to subsidiaries  604.8 -  604.8
    Total undiscounted cash flows of the Company’s financial liabilities  613.4 -  613.4
    Less: Future finance charges -
    Total financial liabilities  613.4
    Credit risk management
    The carrying amount of the financial assets represents the Company’s maximum exposure to credit risk without taking into consideration any collateral provided. All loans and receivables are considered to be of low credit risk at the end of the current and prior financial year.

     

  • + 16. Events after the reporting date
    16. Events after the reporting date
    The Group’s Financial Director, Ilan Zwarentstein, effectively resigned as the Group Financial Director, from 12 March 2015. However, he has chosen to remain on the Board of directors of Massmart in a non-executive capacity. Johannes (Hans) van Lierop has been appointed the new Chief Financial Officer of Massmart, with effect from 12 March 2015. Additional information can be found in ‘Our Business’.