• + Accounting policies and critical accounting judgements and key sources of estimation uncertainty
    NOTES TO THE ANNUAL FINANCIAL STATEMENTS
    Accounting policies and critical accounting judgements and key sources of estimation uncertainty
    With the exception of the accounting policies relevant to the basis of consolidation, the accounting policies and standards and interpretations issued are in line with the Massmart Group accounting policies. Refer to note 1 and note 3 in the Group Financial Statements. The accounting policy of the Company is to hold investments in subsidiaries at cost less impairment.
    Details of critical accounting judgements and key sources of estimated uncertainty are disclosed in note 2 of the Group Financial Statements, where relevant.
  • + 1. Revenue
    1. Revenue
    December 2018 December 2017
    Rm 52 weeks 53 weeks
    Dividends received   1,160.2   815.2
    Management, sales and administration fees received   46.3   38.1
      1,206.5   853.3
  • + 2. Operating profit before interest
    2. Operating profit before interest
    December 2018 December 2017
    Rm 52 weeks 53 weeks
    Other income comprises:
    Share scheme gain   40.1
    Reversal of loan impairment1   918.8
    Sundry income   7.5   1.1
    Operating profit includes:
    Share-based payment expense   6.7   4.9
    Contribution to pension scheme   0.7   0.6
    Foreign exchange (profit)/loss   (0.8)   0.2
    Investment impairment   7.4   10.0
    1The ‘Reversal of loan impairment’ relates to a Group Loan that was previously written-off against share premium being settled in the prior financial year.
  • + 3. Net finance income
    3. Net finance income
    December 2018 December 2017
    Rm 52 weeks 53 weeks
       
    Finance costs
    Interest on Group loans   (0.9)
    Finance income
    Interest on Group loans   9.7   19.8
    Interest from Banks   0.1
      9.7   19.9
    Net finance income   8.8   19.9
  • + 4. Taxation
    4. Taxation
    December 2018 December 2017
    Rm 52 weeks 53 weeks
    Current year
    South African normal taxation
     – Current taxation – Current year   4.1   7.4
     – Current taxation – Prior year   0.7
     – Deferred taxation   2.0   0.2
    Total   6.1   8.3
    % December 2018 December 2017
    The rate of taxation is reconciled as follows:
    Standard corporate taxation rate   28.0   28.0
    Exempt income   (27.5)   (27.8)
    Other   0.3
    Effective rate   0.5   0.5
  • + 5. Interest in subsidiaries
             
    5. Interest in subsidiaries
             
    Rm   December 2018   December 2017
             
    Investment in subsidiaries        
    Capensis Investments 241 Proprietary Limited   698.0   698.0
    Game Discount World (Mauritius) Limited1    
    Massbuild Proprietary Limited   289.4   289.4
    Masscash Holdings Proprietary Limited   81.2   81.2
    Massmart International Holdings Limited   81.4   81.4
    Unison Risk Management Alliance Proprietary Limited   13.3   13.3
        1,163.3   1,163.3
             
    Rm   December 2018   December 2017
             
    Amounts owing by subsidiaries        
    Imagegate Limited     6.6
    Massbuild Proprietary Limited     7.9
    Masscash Holdings Proprietary Limited   2,974.7   2,437.1
    Massmart Management and Finance Company Proprietary Limited     161.8
    Masstores Proprietary Limited   203.7   141.4
    Game Discount World (Mozambique)   1.1   1.0
    Fresh Food Direct Proprietary Limited   54.8   54.8
    Wild Developments Proprietary Limited   197.8   197.8
        3,432.1   3,008.4
             
             
    Rm   December 2018   December 2017
             
    Amounts owing to subsidiaries        
    Massmart Management and Finance Company Proprietary Limited   (39.0)  
        (39.0)  
             
    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 receivable on demand. The rest of the loans are unsecured, interest free and are receivable or payable on demand.
     
             
    1Value is less than R100,000.        
             
             
  • + 6. Property, plant and equipment
       
    6. Property, plant and equipment
    Rm Cost Accumulated depreciation and impairment Net book value
     
    December 2018  
    Owned assets
    Motor vehicles   3.3   (2.4)   0.9
     
    Total property, plant and equipment   3.3   (2.4)   0.9
    Rm Cost Accumulated depreciation and impairment Net book value
    December 2017
    Owned assets
    Motor vehicles   3.3   (1.8)   1.5
    Total property, plant and equipment   3.3   (1.8)   1.5
    Reconciliation of property, plant and equipment
    December 2018 Opening net book value Depreciation Closing net book value
    Rm  
         
    Owned assets  
    Motor vehicles   1.5   (0.6)   0.9  
     
    Total property, plant and equipment   1.5   (0.6)   0.9  
         
     
    December 2017 Opening net book value Depreciation Closing net book value  
    Rm  
     
    Owned assets  
    Motor vehicles   2.2   (0.7)   1.5  
     
    Total property, plant and equipment   2.2   (0.7)   1.5  
     
    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
             
    7. Other financial assets
             
    Rm   December 2018   December 2017
             
    Financial assets at amortised cost        
    Employee Share Trust Loans to the Executive Directors and other employees of Massmart Holdings Limited:1        
    Balance at the beginning of the year     11.9     12.7
    Advanced during the year       0.3
    Repayments     4.5     (1.1)
    Less included in other current financial assets    
          7.4     11.9
             
    OCI financial assets        
    Investment in listed shares     1.1     1.1
          1.1     1.1
             
          8.5     13.0
             
    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. 105,448 (December 2017: 166,465) shares with a market value of R10,861,144 (December 2017: R23,228,526) have been pledged.
             
    For more information on the recognition and measurement of these financial assets at amortised cost, and these OCI financial assets refer to note 14 and note 15 of the Group Annual Financial Statements.
             
             
  • + 8. Deferred taxation
    8. Deferred taxation
    Rm December 2018 December 2017
    The major movements during the year are analysed as follows:
    Asset at the beginning of the year   10.4   8.4
    Charge to the Income Statement for the year   (2.0)   (0.2)
    Charge directly to equity   (0.1)   2.3
    Charge to Other comprehensive income for the year1   (0.1)
    Asset at the end of the year   8.5   10.4
    The major components of deferred taxation are analysed as follows:
    Other temporary differences2   8.5   10.4
      8.5   10.4
    1Value is less than R100,000.
    2Other temporary differences include share-based payments, provisions and other insignificant timing differences.
  • + 9. Issued capital
                       
               
    9. Issued capital
           
          Share capital   Share premium
    Rm     December 2018   December 2017   December 2018   December 2017
                       
    Authorised                  
    500,000,000 (December 2017: 500,000,000) ordinary shares of 1 cent each     5.0     5.0    
    20,000,000 (December 2017: 20,000,000) non-redeemable cumulative non-participating preference shares of 1 cent each     0.2     0.2    
    18,000,000 (December 2017: 18,000,000) ‘A’ convertible redeemable non-cumulative participating preference shares of 1 cent each     0.2     0.2    
    4,000,000 (December 2017: 4,000,000) ‘B’ convertible redeemable non-cumulative participating preference shares of 1 cent each        
                       
    Issued                  
    217,179,142 (December 2017: 217,145,489 ) ordinary shares of 1 cent each     2.2     2.2     1,520.9     1,580.0
    2,797,675 (December 2017:2,831,328) ‘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 2016           217,136,334     2.2     644.1
    Shares issued in terms of the Massmart Black Scarce Skills Trust         9,155    
    Ordinary shares issued – December 2017           217,145,489     2.2     1,562.9
    Treasury shares           (872,824)       17.1
    Ordinary shares issued excluding treasury shares – December 2017         216,272,665     2.2     1,580.0
                       
    Balance at December 2017           217,145,489     2.2     1,580.0
    Shares issued in terms of the Massmart Black Scarce Skills Trust         33,653    
    Ordinary shares issued – Decemver 2018           217,179,142       1,580.0
    Treasury shares           (1,177,645)       (59.1)
    Ordinary shares issued excluding treasury shares – December 2018         216,001,497     2.2     1,520.9
                       
    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                  
                       
    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 2013 financial year.            
               
                       
    ‘B’ convertible redeemable non-cumulative participating preference shares            
                       
    Balance at December 2016           2,840,483    
    Shares converted to ordinary shares         (9,155)    
    Balance at December 2017           2,831,328    
    Shares converted to ordinary shares         (33,653)    
    Balance at December 2018           2,797,675    
                       
    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 2018, executives and senior employees have options of 4,234,937 (December 2017: 5,466,854) ordinary shares of which 134,782 (December 2017: 134,782) are unvested.
    Share options granted under the Employee Share Incentive Schemes carry no rights to dividends and no voting rights. Additional information of the Employee Share Incentive Schemes can be found in note 27.
    During the current financial year, 1.9 million shares (0.9% of average shares in issue) were bought in the market by the Massmart Holdings Limited Executive Share Trust at an average price of R127.85 totalling R246.1 million.
    During the prior financial year, 1.5 million shares (0.7% of average shares in issue) were bought in the market by the Massmart Holdings Limited Executive Share Trust at an average price of R127.21 totalling R195.6 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 2018   December 2017
               
    Balance at the beginning of the year     51.2     41.8
    Treasury shares     (1.3)     (0.9)
    Share-based payment expense     6.7     9.9
    Revaluation of listed investments     (0.1)     0.4
            56.5     51.2
               
    Reconciliation of the treasury share reserve        
    Balance at the beginning of the year     1.3     2.2
    Movement on treasury shares     (1.3)     (0.9)
              1.3
               
    Reconciliation of the share-based payment reserve        
    Balance at the beginning of the year     48.7     38.8
    Share-based payment expense related to Massmart Holdings Limited Employee Share Trust     6.7     9.9
            55.4     48.7
               
    Reconciliation of the OCI financial asset.        
    Balance at the beginning of the year     1.2     0.8
    Revaluation of listed investments to market value     (0.1)     0.4
            1.1     1.2
               
    The Group introduced an 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, referred 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 27 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 shares at the reporting date.
               
               
  • + 11. Trade and other payables
    11. Trade and other payables    
               
    Rm December 2018 December 2017
    Payroll accruals   5.5
    Value Added Taxation   4.0   11.1
    Sundry payables and other accruals   1.4   20.5
      5.4   37.1
         
     ‘Sundry payables and other accruals’ comprises other sundry creditor accruals and shareholders for dividends.
  • + 12. Cross-suretyships and promissory notes
             
    12. Cross-suretyships and promissory notes
             
    Rm   December 2018   December 2017
             
    Cross-suretyships under banking and other financial facilities   10,206.1   11,487.3
        10,206.1   11,487.3
             
             
    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 (December 2017: R0.7 billion) to the Company and fellow Group companies.
    ABSA Bank has provided shared facilities amounting to R3.5 billion (December 2017: R3.6 billion) to the Company and fellow Group companies.
    Nedbank has provided shared facilities amounting to R2.0 billion (December 2017: R2.0 billion) to the Company and fellow Group companies.
    Gross cross-suretyships to the value of R Nil (December 2017: 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 R2.8 billion (December 2017: R3.0 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 2017: 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 R Nil (December 2017: R0.2 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 R Nil (December 2017: R0.4 billion) have been lodged as security by and between the Company and fellow Group companies with Citibank.
    Gross cross-suretyships to the value of R0.5 billion (December 2017:R0.5 billion) have been lodged as security by and between the Company and fellow Group companies with BNP.
             
             
  • + 13. Notes to the statement of cash flows
    13. Notes to the statement of cash flows
    December 2018 December 2017
    Rm 52 weeks 53 weeks
       
    13.1 Cash (outflow)/inflow from trading activities
    Profit before taxation   1,180.6   1,788.6
    Adjustment for:
    Depreciation   0.6   0.7
    Reversal of loan impairment   (918.8)
    Investment impairment   7.4   10.0
    Finance costs   0.9
    Finance income   (9.7)   (19.9)
    Dividends received   (1,160.2)   (815.2)
    Share-based payment expense   6.7   4.9
    Treasury share acquisitions   (53.7)   (40.1)
    Other non-cash movements   2.4   0.8
      (25.0)   11.0
    13.2 Working capital movements
    Decrease in trade and other payables   (31.7)   (14.2)
    Decrease in trade and other receivables   15.7   17.8
      (16.0)   3.6
    13.3 Dividends paid
    Shareholder for dividends   (0.8)   (0.2)
    Dividends declared to shareholders   (735.6)   (653.2)
      (736.4)   (653.4)
    13.4 Taxation paid
    Amounts owing at the beginning of the year   (16.9)   (9.8)
    Current tax   (4.1)   (8.1)
    Amounts (receivable)/owing at the end of the year   (2.1)   1.0
      (23.1)   (16.9)
    13.5 Net acquisition of treasury shares
    Share trust losses   11.7   (33.7)
    Other non-cash movements includes foreign exchange movements and other reserve movements.
  • + 14. Related parties
                           
               
    14. Related parties
                           
                           
    Rm   Dividends received   Management, sales and administration fees   Interest received   Dividends paid   Interest paid
                           
    December 2018                      
    Income Statement transactions between related parties are as follows                    
    – Masscash Holdings Proprietary Limited     253.0        
    – Masstores Proprietary Limited         46.3      
    – Massmart Management & Finance Company Proprietary Limited         9.7       0.9
    – Massbuild South Africa Proprietary Limited     897.2                
    – Unison Risk Management Alliance Proprietary Limited     10.0        
    – Main Street 830 Proprietary Limited           375.2  
            1,160.2     46.3     9.7     375.2     0.9
                           
    December 2017                      
    Income Statement transactions between related parties are as follows                    
    – Masscash Holdings Proprietary Limited     128.0        
    – Masstores Proprietary Limited       665.0     38.1      
    – Massmart Management & Finance Company Proprietary Limited         19.8    
    – Unison Risk Management Alliance Proprietary Limited     10.0        
    – Main Street 830 Proprietary Limited           342.5  
    – Tiradeprops 60 Proprietary Limited     6.1        
    – Tiradeprops 66 Proprietary Limited     6.1        
            815.2     38.1     19.8     342.5  
                           
    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 33 and note 34 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
                               
           
    15. Fair Value
                               
    Fair value hierarchy
                               
    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:
    Financial instruments in the Statement of Financial Position        
                               
    Rm     Total Carrying Amount   Total Fair Value   Level 1   Level 2   Level 3    
                               
    December 2018                        
    Financial Assets                        
    Financial assets at amortised cost   7.4   5.9     5.9      
    OCI Financial Assets   1.1   1.1   1.1        
                               
          8.5   7.0   1.1   5.9      
                               
    There were no transfers between the fair value categories during the December 2018 financial year.    
    The financial assets and financial liabilities have been presented based on an analysis of their respective natures, characteristics and risks.
    The carrying 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 2017                        
    Financial Assets                        
    Loans and receivables   11.9   8.7     8.7      
    – Employee share trust loans   11.9   8.7     8.7      
    Available-for-sale financial instruments   1.1   1.1   1.1        
    – Investment in listed shares   1.1   1.1   1.1        
                               
          13.0   9.8   1.1   8.7      
                               
    There were no transfers between the fair value categories during the December 2017 financial year.    
    The financial assets and financial liabilities have been presented based on an analysis of their respective natures, characteristics and risks.
    The carrying 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 2018 (Rm)   Valuation technique   Significant inputs        
                         
                             
    Financial Assets                      
                               
    Financial Assets at amortised cost   5.9                
    Employee share trust loans   5.9   DCF   Market interest rate        
                               
              5.9                
                               
    Type of financial instrument     Fair value at December 2017 (Rm)   Valuation technique   Significant inputs        
                         
                               
    Financial Assets                      
                               
    Loans and receivables   8.7                
    Employee share trust loans   8.7   DCF   Market interest rate        
                               
              8.7                
                               
    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
                                           
                       
    16. 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 in 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   Financial assets at amortised cost   OCI financial asset   Non-financial instruments            
                                           
    December 2018                              
    Non-current assets 8.5     7.4   1.1   1,172.7            
    – Investment in subsidiaries           1,163.3            
    – Property, plant and equipment         0.9            
    – Other financial assets 8.5     7.4   1.1              
    – Deferred taxation         8.5            
    Current assets 3,440.3     3,440.3     2.1            
    – Trade and other receivables   8.2     8.2                
    – Amounts owing by subsidiaries   3,432.1     3,432.1                
    – Taxation           2.1            
                                           
    Total assets     3,448.8     3,447.7   1.1   1,174.8            
                                           
    Current liabilities 39.8   39.8       4.6            
    – Trade and other payables   0.8   0.8       4.6            
    – Amounts owing to subsidiary     39.0   39.0                  
                                           
    Total liabilities     39.8   39.8       4.6            
                                           
    Rm         Financial instrument   Liability at amortised cost   Loans and receivables   Available-for-sale financial instruments   Non-financial instruments            
                                           
                                           
    December 2017                              
    Non-current assets 13.0     11.9   1.1   1,175.2            
    – Investment in subsidiaries         1,163.3            
    – Property, plant and equipment         1.5            
    – Other financial assets   13.0     11.9   1.1              
    – Deferred taxation         10.4            
                                           
    Current assets     3,032.3     3,032.3                
    – Trade and other receivables   23.9     23.9                
    – Amounts owing by subsidiaries   3,008.4     3,008.4                
    – Cash on hand and bank balances                      
                                           
    Total assets     3,045.3     3,044.2   1.1   1,175.2            
                                           
    Current liabilities 20.5   20.5       17.6            
    – Trade and other payables   20.5   20.5       16.6            
    – Taxation           1.0            
    – Amounts owing to subsidiaries                      
                                           
    Total liabilities     20.5   20.5       17.6            
                                           
                                           
    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 2018   Subject to interest rate movement   Non-interest bearing   Total            
    Rm             Fixed   Floating                    
                                           
    Non-current assets       8.5   8.5            
    – Other financial assets       8.5   8.5            
    Current assets             3,440.3   3,440.3            
    – Trade and other receivables       8.2   8.2            
    – Amounts owing by subsidiaries       3,432.1   3,432.1            
                                           
    Total assets       3,448.8   3,448.8            
                                           
    Current liabilities     39.0   0.8   39.8            
    – Trade and other payables       0.8   0.8            
    – Amount owing to subsidiary company     39.0     39.0            
                                           
    Total liabilities     39.0   0.8   39.8            
                                           
    December 2017   Subject to interest rate movement   Non-interest                
    Rm             Fixed   Floating   bearing   Total            
                                           
    Non-current assets       13.0   13.0            
    – Other financial assets       13.0   13.0            
    Current assets     161.8   2,870.5   3,032.3            
    – Trade and other receivables       23.9   23.9            
    – Amounts owing by subsidiaries     161.8   2,846.6   3,008.4            
    – Cash on hand and bank balances                    
                                           
    Total assets     161.8   2,883.5   3,045.3            
                                           
    Current liabilities       20.5   20.5            
    – Trade and other payables       20.5   20.5            
                                           
    Total liabilities       20.5   20.5            
                                           
                                           
    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 8.31% (December 2017: 8.49%), and the variable interest paid was Rnil (December 2017: RNil). If the SA Prime interest rate increased or decreased by 100 basis points (December 2017: increased or decreased by 100 basis points) at year end, the profit for the year would have increased or decreased by R0.1 respectively (December 2017: increased or decreased by R0.2 million 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 2018                                  
    Loans and receivables                            
    Other financial assets   8.5       8.5            
    Trade receivables   8.2       8.2            
    Amounts owing by subsidiaries   3,432.1       3,432.1            
                  3,448.8       3,448.8            
    December 2017                                
    Loans and receivables                            
    Other financial assets   13.0       13.0            
    Trade receivables   23.9       23.9            
    Amounts owing by subsidiaries   3,001.8     6.6   3,008.4            
                  3,038.7     6.6   3,045.3            
                                           
    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 2017: increased or decreased by 10%) at year end, the profit for the year would have increased or decreased by R0.1 million respectively (December 2017: increased or decreased by R0.63 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   Total            
    December 2018                        
    Financial liabilities                        
    Trade and other payables       0.8   0.8            
    Amounts owing to subsidiaries       39.0   39.0            
    Total undiscounted cash flows of the Company’s financial liabilities       39.8   39.8            
    Less: Future finance charges                      
    Total financial liabilities           39.8            
                                           
                                           
                          Repayable   Total            
    Rm                     within 1 year                
    December 2017                        
    Financial liabilities                        
    Trade and other payables       20.5   20.5            
    Total undiscounted cash flows of the Company’s financial liabilities       20.5   20.5            
    Less: Future finance charges                      
    Total financial liabilities           20.5            
                                           
    The effect of discounting on the current financial liabilities are deemed immaterial due to their short-term nature.
                                           
    Analysis of cash flows from financing activities      
    Rm             Opening Balance   Cash flows   Non-Cash   Closing Balance            
    December 2018                        
    Amounts owing to subsidiaries     39.0     39.0            
                                           
    December 2017                        
    Amounts owing to subsidiaries   (504.0)   491.8   12.2              
                                           
    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.            
    The ECL requirements for the intercompany receivables have not had a material impact on the company financial statements as a significant portion of the receivables are with companies that have no history of impairment losses and are profit making.            
                                                       
                                                             

     

  • + 17. Events after the reporting date
    17. Events after the reporting date
    The Directors are not aware of any material event which occurred after the reporting date and up to the date of this report that would impact the financial information disclosed in the Company Financial Statements in the current year.