• + 1. Revenue
    December 2015 December 2014
    Rm 52 weeks 52 weeks
    Sales  18.9
    Dividends received  726.3  1,319.8
    Management and administration fees received  42.9  23.1
     788.1  1,342.9
  • + 2. Operating profit before interest
    December 2015 December 2014
    Rm 52 weeks 52 weeks
    Other income comprises:
    Foreign exchange gain  1.7  0.2
    Charges to operating profit includes:
    Share-based payment expense  13.8  2.9
    Contribution to pension scheme  0.5  1.3
  • + 3. Net finance income
    December 2015 December 2014
    Rm 52 weeks 52 weeks
       
    Finance costs
    Interest on Group loans  (0.7)
    Finance income
    Interest on Group loans  3.0  6.6
    Interest from Banks  0.1
    Interest other  0.1
     3.2  6.6
    Net finance income  2.5  6.6
  • + 4. Taxation
    December 2015 December 2014
    Rm 52 weeks 52 weeks
    Current year
    South African normal taxation
     – Current taxation  2.9  2.6
     – Deferred taxation  0.8  (1.1)
    Total  3.7  1.5
    % December 2015 December 2014
    The rate of taxation is reconciled as follows:
    Standard corporate taxation rate  28.0  28.0
    Exempt income  (27.3)  (27.9)
    Other  (0.2)
    Effective rate  0.5  0.1
  • + 5. Interest in subsidiaries
      Rm December 2015 December 2014
     
      Interest in subsidiaries
      Capensis Investments 241 Proprietary Limited  698.0  698.0
      Game Discount World (Mauritius) Limited  0.1  0.1
      Massbuild Proprietary Limited  296.2  296.2
      Masscash Holdings Proprietary Limited  82.2  82.2
      Massmart International Holdings Limited  81.4  81.4
      Unison Risk Management Alliance Proprietary Limited  13.3
      Tiradeprops 60 Proprietary Limited  5.0  5.0
      Tiradeprops 66 Proprietary Limited  5.0  5.0
       1,181.2  1,167.9
    Rm December 2015 December 2014
    Amounts owing by subsidiaries
    Imagegate Limited  8.8  6.9
    Massbuild Proprietary Limited  81.7  828.3
    Masscash Holdings Proprietary Limited  1,439.6  807.8
    Massmart Management and Finance Company Proprietary Limited  12.1
    Micawber 269 Proprietary Limited  14.2  11.5
    Mystic Blue Trading 62 Proprietary Limited  200.0  200.0
    Fresh Food Direct Proprietary Limited (previously The Fruit Spot Proprietary Limited)  27.6  3.2
    Wild Developments Proprietary Limited  122.5  122.5
     1,894.4  1,992.3
      Rm   December 2015 December 2014
         
      Amounts owing to subsidiaries
      Massmart Management and Finance Company Proprietary Limited  (168.3)
      Game Discount World (Mauritius) Limited  (0.1)
      Masstores Proprietary Limited  (563.9)  (581.9)
      The Drop Inn Group of Liquor Supermarkets Proprietary Limited  (2.7)  (2.7)
      Tiradeprops 60 Proprietary Limited  (5.9)  (5.9)
      Tiradeprops 66 Proprietary Limited  (5.9)  (5.9)
       (746.7)  (596.5)
     
    The loan with Massmart Management and Finance Company Proprietary Limited is unsecured, bears interest at a variable rate linked to the South African (SA) prime overdraft rate, and is payable or receivable on demand. The rest of the loans are unsecured, interest free and are payable on demand.
  • + 6. Property, plant and equipment
    Rm Cost Accumulated depreciation and impairment Net book value
     
    December 2015  
    Owned assets
    Motor vehicles  3.3  (0.4)  2.9
     
    Total property, plant and equipment  3.3  (0.4)  2.9
    Reconciliation of property, plant and equipment
    December 2015 Opening net book value Additions Depreciation Closing net book value
    Rm
    Owned assets
    Motor vehicles  3.3  (0.4)  2.9
    Total property, plant and equipment  3.3  (0.4)  2.9
    The Company has reviewed the residual values and useful lives at year end. No significant adjustment resulted from such review in the current financial year.
  • + 7. Other financial assets
               
       
               
      Rm   December 2015   December 2014
               
      Loans and receivables        
      Employee Share Trust Loans to the Executive Directors and other employees of Massmart Holdings Limited:1        
      Balance at the beginning of the year    13.1    36.5
      Advanced during the year    0.4    0.9
      Repayments    (0.8)    (9.2)
      Less included in other current financial assets (note 9)      (15.1)
           12.7    13.1
               
      Available-for-sale investments        
      Investment in listed shares    0.9    1.0
           0.9    1.0
               
           13.6    14.1
               
      1The Employee Share Trust Loans to Executive Directors and other employees 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. 186,377 (December 2014: 481,045) shares with a market value of R19,234,106 (December 2014: R69,236,807) have been pledged.
      For more information on the recognition and measurement of these loans and receivables, and these available-for-sale investments refer to note 16 and note 17 of the Group Annual Financial Statements.
  • + 8. Deferred taxation
    Rm December 2015 December 2014
    The major movements during the year are analysed as follows:
    Asset at the beginning of the year  3.0  1.9
    Charge to the Income Statement for the year  (0.8)  1.1
    Charge to Other comprehensive income for the year1
    Asset at the end of the year  2.2  3.0
    The major components of deferred taxation are analysed as follows:
    Other temporary differences  2.2  3.0
     2.2  3.0
    1Value is less than R100,000.
  • + 9. Other current financial assets
                         
                         
                         
      Rm             December 2015   December 2014
                         
      Employee Share Trust Loans to the Executive Directors and other employees of Massmart Holdings Limited      15.1
                       15.1
                         
      For more information on the terms and conditions of the Share Trust Loans, refer to note 7.
      The current portion in the prior year relates to Grant Pattison’s loan, which was transferred to current upon his resignation.
  • + 10. Issued capital
                         
         
            Share capital   Share premium
      Rm     December 2015   December 2014   December 2015   December 2014
                         
      Authorised                  
      500,000,000 (December 2014: 500,000,000) ordinary shares of 1 cent each    5.0    5.0    
      20,000,000 (December 2014: 20,000,000) non-redeemable cumulative non-participating preference shares of 1 cent each    0.2    0.2    
      18,000,000 (December 2014: 18,000,000) ‘A’ convertible redeemable non-cumulative participating preference shares of 1 cent each    0.2    0.2    
      4,000,000 (December 2014: 4,000,000) ‘B’ convertible redeemable non-cumulative participating preference shares of 1 cent each        
                         
      Issued                  
      217,136,334 (December 2014: 217,118,072) ordinary shares of 1 cent each    2.2    2.2    675.1    733.4
      2,840,483 (December 2014: 2,858,745) ‘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 2013          217,109,044    2.2    743.3
      Shares issued in terms of the Massmart Black Scarce Skills Trust        9,028    
      Ordinary shares issued – December 2014          217,118,072    2.2    743.3
      Treasury shares          (194,765)      (9.9)
      Ordinary shares issued excluding treasury shares – December 2014        216,923,307    2.2    733.4
                         
      Balance at December 2014          217,118,072    2.2    733.4
      Shares issued in terms of the Massmart Black Scarce Skills Trust        18,262    
                 217,136,334    2.2    733.4
      Treasury shares          (575,563)      (58.3)
      Ordinary shares issued excluding treasury shares – December 2015        216,560,771    2.2    675.1
                         
      Ordinary shares, which have a par value of 1 cent, carry one vote per share and carry the right to dividends.
                         
      ‘B’ convertible redeemable non-cumulative participating preference shares            
                         
      Balance at December 2013             `
      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    
      Net shares issued in terms of the Massmart BEE transaction        2,858,745    
      Shares converted to ordinary shares        (18,262)    
      Balance at December 2015          2,840,483    
                         
      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 2015, executives and senior employees have options of 7,673,705 (December 2014: 8,773,054) ordinary shares of which 2,289,364 (December 2014: 4,303,031) 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 29 of the Group Annual Financial Statements. The share-based payment reserve relates to the executive directors, refer to note 36 in the Group Financial Statements, for details of the Directors interest in the Company’s shares.
      During the current financial year, 0.9 million shares (0.4% of average shares in issue) were bought in the market by the Massmart Holdings Limited Executive Share Trust at an average price of R148.88 totalling R135.5 million.
      During the prior financial year, 0.6 million shares (0.3% of average shares in issue) were bought in the market were by the Massmart Holdings Limited Executive Share Trust at an average price of R128.22 totalling R73.7 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.

     

  • + 11. Other reserves
    Rm December 2015 December 2014
     
      Balance at the beginning of the year  20.4  17.5
      Treasury shares  1.4  (0.3)
      Share-based payment expense  13.8  2.9
      Revaluation of listed investments  (0.1)  0.3
       35.5  20.4
    Reconciliation of the treasury share reserve
    Balance at the beginning of the year  (0.1)  0.2
    Movement on treasury shares  1.4  (0.3)
     1.3  (0.1)
    Reconciliation of the share-based payment reserve
    Balance at the beginning of the year  19.4  16.5
    Share-based payment expense related to Massmart Holdings Limited Employee Share Trust  13.8  2.9
     33.2  19.4
    Reconciliation of the available-for-sale investment
    Balance at the beginning of the year  1.1  0.8
    Revaluation of listed investments to market value  (0.1)  0.3
     1.0  1.1
    The Group introduced a new Employee Share Incentive Scheme in the 2013 financial year. The share-based payment reserve arises on the granting of share options, referred to as the Employee Share Option Scheme, and retention share grants and performance share awards, referrred to as the Employee Share Incentive Plan, 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 Incentive Plan 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.
  • + 12. Cross-suretyships and promissory notes
    Rm December 2015 December 2014
    Cross-suretyships under banking and other financial facilities  10,865.6  9,003.1
     10,865.6  9,003.1
    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 R1.3 billion (December 2014: R0.7 billion) to the Company and fellow Group companies.
    ABSA Bank has provided shared facilities amounting to R3.8 billion (December 2014: R3.2 billion) to the Company and fellow Group companies.
    Nedbank has provided shared facilities amounting to R2.5 billion (December 2014: R2.0 billion) to the Company and fellow Group companies.
    Gross cross-suretyships to the value of R0.6 billion (December 2014: 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 R1.3 billion (December 2014: 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 (December 2014: 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 (December 2014: R0.6 billion) have been lodged as security by and between the Company and fellow Group companies with Ivuzi Investments (RF) Ltd.
    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 Citibank.
    At the reporting date the Massmart Group was net cash positive.
  • + 13. Notes to the statement of cash flows
               
     
          December 2015   December 2014
    Rm   52 weeks   52 weeks
               
    13.1 Cash outflow from trading activities        
    Profit before taxation    745.9    1,322.5
    Adjustment for:        
    Depreciation    0.4  
    Finance costs    0.7  
    Finance income    (3.2)    (6.6)
    Dividends received    (726.3)    (1,319.8)
    Share-based payment expense    13.8    2.9
    Treasury share acquisitions    (25.0)    (6.3)
    Other non-cash movements    (31.9)    (3.6)
         (25.6)    (10.9)
    13.2 Working capital movements        
    (Decrease)/increase in trade and other payables    (2.9)    2.7
    (Increase)/decrease in trade and other receivables    (12.8)    7.3
         (15.7)    10.0
    13.3 Dividends paid        
    Shareholder for dividends    8.5  
    Dividends declared to shareholders    (914.1)    (914.0)
           (905.6)    (914.0)
               
    13.4 Taxation paid        
    Amounts owing at the beginning of the year    (6.6)    (7.1)
    Amounts charged to the Income Statement    (3.7)    (1.5)
    Deferred taxation    0.8    (1.1)
    Amounts owing at the end of the year    4.1    6.6
         (5.4)    (3.1)
             
    13.5 Other investing activities        
    Other financial assets    15.5    8.0
             
    13.6 Net acquisition of treasury shares        
    Share trust losses    (23.6)    (27.4)
             
    Other non-cash movements includes the share premium on shares issued in the period, other reserve movements and the fair value adjustment on the listed investments.     

     

  • + 14. Related parties
                             
       
                             
      Rm   Dividends received   Management and administration fees   Interest received   Dividends paid   Interest paid
                             
      December 2015                      
      Income Statement transactions between related parties are as follows                    
      – Massbuild Proprietary Limited      238.1        
      – Masscash Holdings Proprietary Limited    58.6        
      – Game Discount World (Mozambique)          
      – Masstores Proprietary Limited      411.2    42.9      
      – Massmart Management & Finance Company Proprietary Limited        3.0      0.7
      – Massmart Black Scarce Skills Trust    0.3        
      – Main Street 830 Proprietary Limited          479.3  
             708.2    42.9    3.0    479.3    0.7
                             
      December 2014                      
      Income Statement transactions between related parties are as follows                    
      – Massbuild Proprietary Limited      447.6        
      – Masscash Holdings Proprietary Limited    270.0        
      – Game Discount World (Mozambique)          
      – Masstores Proprietary Limited    602.2    23.1      
      – Massmart Management & Finance Company Proprietary Limited        6.6    
      – Main Street 830 Proprietary Limited          479.3  
             1,319.8    23.1    6.6    479.3  
                             
                             
      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 and paid 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 34, note 35 and note 36 in the Group Financial Statements with regards to Directors’ emoluments and interest of directors in the Company’s Share Incentive Schemes respectively.
  • + 15. 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 2015
    Financial Assets
    Loans and receivables  12.7  9.2  9.2
    – Employee share trust loans  12.7  9.2  9.2
      Available- for- sale financial instruments  0.9  0.9  0.9
    – Investment in listed shares  0.9  0.9  0.9
     13.6  10.1  0.9  9.2
    There were no transfers between the fair value categories during the December 2015 financial year.    
    The financial assets and financial liabilities have been presented based on an analysis of their respective natures, characteristics and risks.
    The carry value of the financial instruments disclosed as current assets and current liabilities equate to their fair value due to their short term nature.
    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  28.2  23.7  23.7
    – Employee share trust loans  28.2  23.7  23.7
      Available- for- sale financial instruments  1.0  1.0  1.0
    – Investment in listed shares  1.0  1.0  1.0
     29.2  24.7  1.0  23.7
    There were no transfers between the fair value categories during the December 2014 financial year.    
    The financial assets and financial liabilities have been presented based on an analysis of their respective natures, characteristics and risks.
    The carry value of the financial instruments disclosed as current assets and current liabilities equate to their fair value due to their short term nature.
    Fair value measurement and valuation techniques for level 2 financial instruments
    Type of financial instrument Fair value at December 2015 (Rm) Valuation technique Significant inputs
    Financial Assets
    Loans and receivables  9.2
    Employee share trust loans  9.2 DCF Market interest rate
     9.2
    Type of financial instrument Fair value at December 2014 (Rm) Valuation technique Significant inputs
    Financial Assets
    Loans and receivables  23.7
    Employee share trust loans  23.7 DCF Market interest rate
     23.7
    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 Method 2 of the expected present value technique in terms of IFRS 13 Fair Value Measurement.
  • + 16. Financial Instruments
                                 
    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 in note 10 and note 11 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 2015                    
    Non-current assets  13.6      12.7    0.9    1,186.3  
    – Investment in subsidiaries                  1,181.2  
    – Property, plant and equipment          2.9  
    – Other financial assets  13.6      12.7    0.9    
    – Deferred taxation          2.2  
    Current assets  1,917.8      1,917.8      
    – Trade and other receivables    16.5      16.5      
    – Amounts owing by subsidiaries    1,894.4      1,894.4      
    – Cash on hand and bank balances    6.9      6.9      
                                 
    Total assets      1,931.4      1,930.5    0.9    1,186.3  
                                 
    Current liabilities  755.3    755.3        22.2  
    – Trade and other payables    8.6    8.6        18.1  
    – Taxation              4.1  
    – Amounts owing to subsidiaries    746.7    746.7        
                                 
    Total liabilities      755.3    755.3        22.2  
                                 
    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  
                                 
                                 
    Financial risk management
                                 
    The Company does not trade in financial instruments, but in the ordinary course of business operations, the Company 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 Proprietary Limited through floating rate borrowings to fund its operations.
                                 
    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 2015   Subject to interest rate movement   Non-interest bearing   Total  
    Rm   Fixed   Floating          
                                 
    Non-current assets        13.6    13.6  
    – Other financial assets        13.6    13.6  
    Current assets                6.9    1,910.9    1,917.8  
    – Trade and other receivables        16.5    16.5  
    – Amounts owing by subsidiaries        1,894.4    1,894.4  
    – Cash on hand and bank balances      6.9      6.9  
                                 
    Total assets      6.9    1,924.5    1,931.4  
                                 
    Current liabilities      168.3    587.0    755.3  
    – Trade and other payables        8.6    8.6  
    – Amounts owing to subsidiaries      168.3    578.4    746.7  
                                 
    Total liabilities      168.3    587.0    755.3  
                                 
    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  
                                 
                                 
    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 7.82 % (December 2014: 7.20%), and the variable interest paid was R0.7 million (December 2014: Nil). If the SA Prime interest rate increased or decreased by 100 basis points (December 2014: increased or decreased by 100 basis points) at year end, the profit for the year would have increased or decreased by R0.8 million respectively (December 2014: increased or decreased by R0.8million respectively).
                                 
                                 
    Currency risk management  
                                 
    All liabilities are South African Rand (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   ZAR   Euro   GBP   Total  
                                 
    December 2015                        
    Loans and receivables                  
    Other financial assets    13.6        13.6  
    Trade receivables    16.5        16.5  
    Amounts owing by subsidiaries    1,885.7    0.5    8.2    1,894.4  
    Cash on hand and bank balances    6.9        6.9  
                   1,922.7    0.5    8.2    1,931.4  
    December 2014                      
    Loans and receivables                  
    Other financial assets    29.2        29.2  
    Trade receivables    3.7        3.7  
    Amounts owing to 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  
                                 
    Foreign currency sensitivity  
    The Company is primarily exposed to the movements in the British Pound (GBP). The rates of sensitivity represents management’s assessment of the possible change in currency rates. If the GBP increased or decreased by 10% (December 2014: increased or decreased by 10%) at year end, the profit for the year would have increased or decreased by R0.82 million respectively (December 2014: increased or decreased by R0.02 million respectively).
                                 
    Liquidity risk management
                                 
    Liquidity risk is the risk that the Company will be unable to meet a financial commitment in any location or currency. This risk is minimised through the holding of cash balances and sufficient available borrowing facilities. In addition, detailed cash flow forecasts are regularly prepared and reviewed so that the cash needs of the Company are managed according to its requirements.
                                 
    The following table details the Company’s contractual maturity for its non-derivative financial liabilities. The table has been compiled based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Company will be required to repay the liability. The cash flows include both the principal and interest payments.
                                 
    Rm   Repayable within 1 year    Repayable
    1 – 5 years
      Total  
    December 2015              
    Financial liabilities              
    Trade and other payables    8.6      8.6  
    Amounts owing to subsidiaries    746.7      746.7  
    Total undiscounted cash flows of the Company’s financial liabilities    755.3      755.3  
    Less: Future finance charges            
    Total financial liabilities            755.3  
                                 
                                 
    Rm   Repayable within 1 year    Repayable
    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  
                                 
    The effect of discounting on the current financial liabilities are deemed immaterial due to their short-term nature.
                                 
    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.