|1.||These condensed financial statements have been prepared
in accordance with the framework concepts and the
measurement and recognition requirements of International
Financial Reporting Standards (IFRS), the requirements of
the Companies Act 71 of 2008 and the AC 500 standards
as issued by the Accounting Practices Board or its
successor. These condensed financial statements contain
the information as per IAS 34 Interim Financial Reporting,
using accounting policies that have been consistently
applied to prior years.
|2.||During the current year, the only Massmart shares acquired
in the market were by the Massmart Employee Share Trusts
where 2.1 million shares (1.0% of average shares in issue)
were bought at an average price of R131.60 totalling
R273.9 million. During the prior year, the Massmart
Employee Share Trusts acquired 1.2 million shares
(0.6% of average shares in issue) at an average price of
R114.44 totalling R137.2 million.
|3.||The impairment of assets in the current year relates to
the impairment of certain acquired goodwill in Masscash.
The impairment of assets in the prior year relates to the
impairment of computer software in Builders Warehouse
due to an IT upgrade and the impairment of fixed assets in
Game due to a fire in the Benoni store.
|4.||Foreign exchange movements relating to the cost of
stock have been reallocated from ‘Foreign exchange loss’
to ‘Cost of sales’ in June 2010 (R76.6 million), in line
with the Group’s accounting policy. Water and electricity
charges have been reallocated from ‘Other operating costs’
to ‘Occupancy costs’ in June 2010 (R88.4 million) in line
with the Group’s accounting policy.
|5.||The Massmart BEE transaction, which came into operation
in October 2006, gave rise to an IFRS 2 Share-based
Payment charge of R64.7 million (2010: R69.7 million).
The acceleration IFRS 2 Share-based Payment charge as
a result of the Walmart Transaction totalled R22.8 million,
(included in the R70.1 million in note 6 below). The ‘A’ and
‘B’ preference shares were issued to the Thuthukani Trust
and the Black Scarce Skills Trust respectively.
|6.||The Walmart Transaction costs are made up as follows:
|Accelerated share-based payment charge||70.1|
|7.||The preference shareholders’ dividend amount of
R38.4 million (2010: R46.5 million) represents the
2010 final cash dividend of 134 cents and the 2011
interim cash dividend of 252 cents paid to all Thuthukani
beneficiaries. The Thuthukani dividend was equivalent to
100% of the ordinary dividend for the current and prior
|8.||Other non-current liabilities and provisions include the lease
smoothing liability of R414.3 million (2010: R422.8 million).
|9.||The net asset value of the businesses acquired during the
year was R46.0 million (2010: R188.9 million) on the date
|10.||Included in current assets and current liabilities in the
Statement of Financial Position are two amounts of
R1,093.6 million each. These amounts represent the net
cash proceeds held in the three Massmart Employee Share
Trusts, and the corresponding liability to the beneficiaries,
as a result of the Walmart Transaction. The cash was
distributed to beneficiaries shortly after 26 June 2011.
The Massmart Employee Share Trusts are consolidated
with the Group results. In the Statement of Cash Flows, the
two amounts have been contra’d in the Cash inflow from
|11.||The increase in share premium is a result of Walmart
acquiring Massmart shares arising from the conversion of
51% of the vested and unvested share options held by
beneficiaries of the Massmart Employee Share Trusts. This
resulted in 9,751,231 new ordinary shares being issued
and net cash of R481.6 million being received.
|12.||Related party transactions include private aircraft, used
from time to time, in the normal course of business by
Massmart and its Divisions and hired from competitively
selected charter companies, two of which operate aircraft
indirectly beneficially owned by Mr MJ Lamberti.
|13.||There are no material post balance sheet events. Two conditional acquisitions, Fruitspot and Rhino Cash & Carry, have been filed with the Competition Commission whose findings are expected to be issued in September or October 2011.|
|14.||These results have been reviewed by independent external auditors, Deloitte & Touche, and their unmodified review report is available for inspection at the registered office. The review was performed in accordance with JSE Limited Listings Requirements and ISRE 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity. The preparation of the Group’s condensed consolidated reviewed results was supervised by the Chief Financial Officer, Guy Hayward, BCom, CTA, CA(SA).|