TIDMMIK
MEIKLES LIMITED
ABRIDGED AUDITED FINANCIAL STATEMENTS FOR THE YEARED 31 MARCH 2019
CHAIRMAN'S STATEMENT
It gives me pleasure to present the Chairman's Report for the financial year
ended 31 March 2019.
FINANCIAL OVERVIEW
There were significant developments in the operating environment during the
year under review. The main highlights impacting the financial statements are
as follows:-
* Year on year inflation was 66.8% at the end of March 2019.
* In October 2018, Reserve Bank of Zimbabwe ("RBZ"), through a Monetary
Policy announcement separated bank accounts into RTGS FCA and Nostro FCA
and maintained the exchange rate between them at 1:1.
* Government promulgated Statutory Instruments ("SI") 32 & 33 of 2019 that
introduced RTGS Dollar ("RTGS$") as legal tender in Zimbabwe. SI 33 of 2019
prescribes the manner in which certain balances in the financial statements
should be treated as a consequence of the recognition of the RTGS$ as a
currency in Zimbabwe.
* RBZ issued Exchange Control Directive RU 28 of 2019 on 22 February 2019
introducing an interbank market for trading RTGS$ against other foreign
currencies. The opening exchange rate was set at 2.5 RTGS$ to one United
States Dollar ("US$").
The functional currency of the Group changed in the current year to RTGS$ from
US$ in the previous years as a consequence of the above. The Group also changed
its presentation currency to RTGS$. Financial statements for the year ended 31
March 2019 are presented in RTGS$. Comparative financial information was
translated to RTGS$ using an exchange rate of 1:1. The Group opted to comply
with the requirements of SI 33 of 2019 and the treatment of foreign currency
denominated transactions does not fully comply with International Accounting
Standard ("IAS") 21 - "The Effects of Changes in Foreign Exchange Rates".
GROUP FINANCIAL PERFORMANCE
Despite the changes in the economic environment during the year under review,
the Group performed well.
Revenue grew from RTGS$524.9 million in 2018 to RTGS$791.6 million in the year
under review.
Group earnings before interest, taxation, depreciation and amortisation
("EBITDA") for continuing operations increased to RTGS$101.5 million from
RTGS$40.6 million in the financial year to 31 March 2018.
Profit for the year grew to RTGS$66.0 million (2018: RTGS$8.2 million).
Total comprehensive income for the year increased to RTGS$118.3 million, (2018:
RTGS$8.2 million), of which RTGS$106.2 million was attributable to owners of
the parent and the remaining balance of RTGS$12.1 million for minority
shareholders.
Segmental contributions to the Group's financial performance is set out in note
7 of these abridged audited financial statements.
REVIEW OF OPERATIONS
Supermarkets - trading as TM Pick n Pay
Revenue increased by 53.2% over the previous year. EBITDA increased to
RTGS$69.0 million from RTGS$34.5 million in the previous comparative year.
Profit for the year is after a provision for exchange losses on foreign
currency denominated liabilities accumulated prior to the introduction of the
RTGS$ commonly referred as "legacy debt" of RTGS$23.9 million.
Increase in revenue and profit was achieved through growth in units sold and
inflation induced price increases, however the segment was continuously
competitive in its pricing policies.
A new branch was opened in Victoria Falls in March 2019 and upgrades of more
branches have commenced.
Agriculture
EBITDA rose to RTGS$31.7 million from RTGS$10.3 million in the previous year.
From November 2018, international bulk tea export prices that had remained firm
at an average US$1.68/kg up to October 2018 started to decline by between 10%
and 15% due to oversupply by Kenya. The segment's annual made tea production of
10,171 tonnes was commendable. Made tea production during the year ended 31
March 2018 was 10,601 tonnes.
Export earnings from the new crops being macadamia nuts, avocadoes and coffee
grew by 96% from US$2.3 million in the prior year to US$4.5 million in the year
ended 31 March 2019. As a percentage of total exports, the new crops
contributed 25% up from 13% in the prior year. The contribution of the new
crops to the segment's export earnings is expected to increase to 60% within
three years as these crops reach maturity. In September 2018, Tanganda Tea
Company Limited received the Confederation of Zimbabwe Industries (CZI)
Exporter of The Year Award.
Pick n Pay South Africa opened shelf space to Tanganda's packed tea brands
during the last quarter of fiscal year 2018. The endorsement by Pick n Pay
South Africa will assist our efforts to penetrate the South African tea market.
With anticipated growth in packed tea sales to the regional market, the segment
invested in a new world-class IMA tagless tea-bagging machine. The machine
arrived from Italy in March 2019 and was successfully installed. Export
earnings from tea are poised to grow through higher prices from increased
exports to the regional market.
Effects of both the hailstorm of January 2019 and Cyclone Idai of March 2019
have been mitigated by special silviculture on affected macadamia plantations,
our investment in microjet irrigation systems and US$ denominated insurance
cover. Tea was not affected by the phenomenon. The monetary value of damage
caused by Cyclone Idai to standalone structures such as toilets, irrigation
equipment covering 30 hectares of macadamia plantations and 5 hectares of
macadamia trees was quantified at RTGS$222,343.
The segment contributed labour and machinery to repair some of the damaged
infrastructure in Chipinge. In addition, Tanganda also assisted affected
communities in both Manicaland and Manica provinces of Zimbabwe and Mozambique
respectively with food and water supplies.
Hospitality
EBITDA for continuing operations increased to RTGS$8.5 million in the current
year from RTGS$3.6 million in the previous year.
Meikles Hotel now requires substantial modernisation of guest facilities as
well as electro mechanical and plumbing infrastructure to restore it to a
5-star property by international standards. Initial forecasts suggests up to
US$30 million needs to be spent on the hotel. The Group does not consider that
it is in a position to commit the necessary funds to the hotel and it is best
for the future of the hotel to place its development in the hands of skilled
international operators. Processes to dispose of the hotel are in progress,
hence the financial statements reflect the hotel as an asset held for sale. The
Company will be seeking the approval of its shareholders for the proposed
disposal at an Extraordinary General Meeting to be convened at a future date.
A refurbishment programme for The Victoria Falls Hotel will commence during the
last quarter of fiscal year 2019 after our peak season. Funding for these works
has already been secured.
Department stores and properties
The EBITDA loss in the department stores segment reduced to RTGS$2.7 million
from RTGS$4.2 million in the previous year.
The influx of cheap imports by several sections of society created a tough
trading environment for the department stores segment. The Group will not
commit additional resources to resuscitate this segment in its current form but
will focus on developing the commercial real estate properties that the retail
stores used to occupy.
Security Services
Meikles Guard Services continues to provide security services to both Group
companies and to certain third parties. It is anticipated that further third
party contracts will be secured.
MEIKLES FOUNDATION
During the year under review, Meikles Foundation continued to work closely with
Group entities in raising funds to help disadvantaged members of society. TM
Pick n Pay remained the key partner in fundraising efforts through its
sponsorship from funds raised at the Charity Golf Day. Rainbow Children's Home
received a substantial donation from the proceeds of the Charity Golf Day. The
objective of the Home is to allow disadvantaged children with no relatives or
friends in Harare, a welcoming, clean home with healthy sustaining food, to
recover from their chemotherapy treatment before their journey home.
Meikles Foundation partnered with three other institutions in a pilot project
utilising the existing soccer teams within the prison system in Harare to
assist Zimbabwe Prisons with their programme of rehabilitation. The project was
granted permission to film the events and the various participating prisons to
create a video clip which will be aired locally and internationally shining a
light on the Zimbabwe Prison system.
DIVID
In view of the Group's financial results for the year ended 31 March 2019, the
board declared a final dividend of 7.67 RTGS cents per share, bringing the
total dividend for the year to 8.87 RTGS cents. The final dividend will amount
to RTGS$20.02 million. A full dividend announcement will be published
separately in due course.
STRATEGY AND OUTLOOK
The Group has commenced trading in the new financial year on a more favourable
basis relative to the comparable period of the previous financial year, in
terms of revenue and profit. Post year end, the exchange rate between RTGS$ and
US$ moved significantly impacting favourably on the Group's exporting segments.
Consequently, the Group now has an ability to eliminiate all short term
borrowings and creditors in arrears from operating cash flows. In this regard
shareholders should also consider sums to be realised from the sale of Meikles
Hotel, and the additional planned funding initiaves set out below.
The Group will interact more closely with its majority shareholder. It is
believed that such interaction will accelerate progress towards unlocking
shareholder value. The Group will benefit from the provision of both local and
international investment funds for the use of Group expansion and financial
security.
The forward commercial environment will be challenging. The board recognises
that additional skills at board level in the Holding Company and at board
level in Group companies will be required to ensure the Group responds to
challenges and meets the stringent requirements that will emanate from the
investment funding that will be sourced from the efforts of the majority
shareholder.
Shareholders are advised that this essential part of the Group restructuring
process is to be progressed with urgency. It follows that this process will be
accompanied by an assessment, followed by required implementation of future
requirements for operational skills in the Group.
APPRECIATION
I would like to extend my appreciation to our customers for their continued
support and to our shareholders and regulatory authorities for their support
and guidance. I would also like to extend my thanks and appreciation to fellow
Board members, management and staff for their dedication and commitment.
JRT Moxon
Executive Chairman
15 July 2019
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEARED 31 MARCH 2019
31 March 31 March
2019 2018
Notes RTGS$ 000 RTGS$ 000
CONTINUING OPERATIONS
Revenue 7 791,620 524,935
Net operating costs (703,426) (497,611)
Operating profit 88,194 27,324
Investment income 44 271
Finance costs (8,635) (8,640)
Net exchange losses (7,529) (466)
Loss recognised on discounting Treasury Bills - (6)
Fair value adjustments on biological assets 9,433 1,336
Profit before tax 81,507 19,819
Income tax expense (16,670) (11,533)
Profit for the year from continuing operations 64,837 8,286
DISCONTINUED OPERATIONS
Profit / (loss) for the year from discontinued operations 10 1,121 (92)
PROFIT FOR THE YEAR 65,958 8,194
Other comprehensive income, net of tax
Items that may be reclassified subsequently to profit or
loss:
Exchange gain on translation of foreign operation 61,970 -
Fair value loss on financial assets classified at fair (9,600) -
value through other comprehensive income
Reclassification adjustment arising from disposal of - 47
available-for-sale financial assets
Income tax relating to items that may be reclassified - -
subsequently to profit or loss
Other comprehensive income for the year, net of tax 52,370 47
TOTAL COMPREHENSIVE INCOME FOR THE YEAR 118,328 8,241
Profit / (loss) for the year attributable to:
Owners of the parent 53,827 (829)
Non-controlling interests 12,131 9,023
65,958 8,194
Total comprehensive income / (loss) attributable to:
Owners of the parent 106,197 (782)
Non-controlling interests 12,131 9,023
118,328 8,241
Earnings / (loss) per share in cents
Basic earnings / (loss) per share from continuing and 20.99 (0.32)
discontinued operations
Basic earnings / (loss) per share from continuing 20.55 (0.29)
operations
Diluted earnings / (loss) per share from continuing and 19.67 (0.30)
discontinued operations
Diluted earnings / (loss) per share from continuing 19.26 (0.27)
operations
Headline earnings per share from continuing and 21.43 0.08
discontinued operations
Headline earnings per share from continuing operations 20.99 0.12
Diluted headline earnings per share from continuing and 20.09 0.05
discontinued operations
Diluted headline earnings per share from continuing 19.68 0.08
operations
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2019
31 March 31 March
2019 2018
Notes RTGS$ 000 RTGS$ 000
ASSETS
Non-current assets
Property, plant and equipment 172,267 175,267
Investment property 236 239
Investment in Mentor Africa (Pty) Limited 50,778 20,046
Biological assets 2,905 1,299
Intangible assets 124 124
Other financial assets 31,847 11,815
Deferred tax 9,111 121
Total non-current assets 267,268 208,911
Current assets
Inventories 100,163 43,870
Trade and other receivables 40,471 17,341
Biological assets - produce on bearer plants 11,178 2,810
Other financial assets 9 59
Cash and bank balances 33,006 34,175
184,827 98,255
Assets held for sale 10 30,032 -
Total current assets 214,859 98,255
Total assets 7 482,127 307,166
EQUITY AND LIABILITIES
Capital and reserves
Share capital 2,611 2,562
Share premium 3,925 1,469
Other reserves 64,929 12,559
Retained earnings 131,914 82,854
Equity attributable to equity holders of the parent 203,379 99,444
Non-controlling interests 48,999 36,241
Total equity 252,378 135,685
Non-current liabilities
Borrowings 12,244 17,309
Deferred tax 25,617 19,189
Total non-current liabilities 37,861 36,498
Current liabilities
Trade and other payables 140,368 79,010
Borrowings 51,520 55,973
Total current liabilities 191,888 134,983
Total liabilities 7 229,749 171,481
Total equity and liabilities 482,127 307,166
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEARED 31 MARCH 2019
Share Share Other Attributable Non-controlling Total
capital premium reserves Investments Retained to owners of interests
revaluation earnings parent
RTGS RTGS RTGS RTGS RTGS RTGS RTGS RTGS
$ 000 $ 000 $ 000 $ 000 $ 000 $ 000 $ 000 $ 000
2019
Balance at 1 April 2018 - 2,562 12,559 99,444 36,241 135,685
as previously stated 1,469 - 82,854
Change in accounting policy - - - - (1,694) (1,694) - (1,694)
- note 11
Balance at 1 April 2018 - 2,562 1,469 12,559 - 81,160 97,750 36,241 133,991
restated
Profit for the year - - - - 53,827 53,827 12,131 65,958
Issue of shares - scrip 49 2,456 - - - 2,505 - 2,505
dividend
Other comprehensive income - - 61,970 (9,600) - 52,370 - 52,370
for the year
Dividend paid - ordinary - - - - (3,073) (3,073) - (3,073)
shareholders
Non-controlling interests - - - 627 627
arising from Mopani
Property Development - - -
(Private) Limited
Balance at 31 March 2019 2,611 3,925 74,529 (9,600) 131,914 203,379 48,999 252,378
2018
Balance at 1 April 2017 2,538 1,316 12,559 (47) 83,683 100,049 28,591 128,640
(Loss) / profit for the - - - - (829) (829) 9,023 8,194
year
Issue of shares 24 153 - - - 177 - 177
Other comprehensive income - - - 47 - 47 - 47
for the year
Dividend paid - minority - - - - - - (1,715) (1,715)
shareholders
Non-controlling interests - - - 342 342
arising from Mopani
Property Development - - -
(Private) Limited
Balance at 31 March 2018 2,562 1,469 12,559 - 82,854 99,444 36,241 135,685
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEARED 31 MARCH 2019
31 March 31 March
2019 2018
RTGS$ 000 RTGS$ 000
Cash flows from operating activities
Profit before tax - continuing operations 81,507 19,819
- discontinued operations 1,121 (39)
82,628 19,780
Adjustments for:
- Depreciation and impairment of property, 14,376 13,311
plant and equipment and investment property
- Net interest 8,591 8,415
* Dividend income - (53)
- Net exchange losses 7,031 468
- Profit on disposal of operation - (768)
- Fair value adjustments on biological assets (9,433) (1,336)
* Loss recognised on discounting Treasury - 6
Bills
- Loss on disposal of property, plant and 59 1,545
equipment
Operating cash flow before working capital 103,252 41,368
changes
Increase in inventories (56,293) (9,403)
Increase in trade and other receivables (11,522) (3,627)
Increase in trade and other payables 34,088 11,895
Cash generated from operations 69,525 40,233
Income taxes paid (18,038) (6,447)
Net cash generated from operating activities 51,487 33,786
Cash flows from investing activities
Payment for property, plant and equipment (41,870) (17,717)
Proceeds from disposal of property, plant and 355 350
equipment
Proceeds from sale of Treasury Bills and coupon - 3,075
interest
Net movement in service assets 51 (89)
Net movement in other investments 11 847
Net movement on biological assets (540) 241
Net cash flow on disposal of subsidiary - 1,060
Investment income 42 208
Net cash used in investing activities (41,951) (12,025)
Cash flows from financing activities
Net (decrease) / increase in interest bearing (9,518) 7,064
borrowings
Non-controlling interests arising from Mopani 627 519
Property Development (Private) Limited
Finance costs (8,635) (8,640)
Dividend paid - ordinary shareholders (568) -
Dividend paid - non-controlling interests - (1,715)
Net cash used in financing activities (18,094) (2,772)
Net (decrease) / increase in cash and bank (8,558) 18,989
balances
Cash and bank balances at the beginning of the 34,175 15,637
year
Net effect of exchange rate changes on cash and 5,743 (451)
bank balances
Translation of foreign entity 1,646 -
Cash and bank balances at the end of the year 33,006 34,175
NOTES TO THE ABRIDGED AUDITED FINANCIAL STATEMENTS
1. Basis of preparation
The abridged audited financial statements are prepared from statutory records
that are maintained under the historical cost basis except for biological
assets and certain financial instruments which are measured at fair value.
Historical cost is generally based on the fair value of the consideration given
in exchange for assets. These abridged financial statements are presented in
RTGS$, which is the Group's new functional currency.
2. Change in functional and presentation currency
Both the functional and presentation currency changed to RTGS$ in the year
ended 31 March 2019 from US$ in prior years. The change in both functional and
presentation currency was necessitated by significant developments in the
economic environment in Zimbabwe. In February 2019, Government of Zimbabwe
issued Statutory Instrument "SI" 33 of 2019, which directed that certain assets
and liabilities that were in US$ before 20 February 2019 be deemed to be
denominated in RTGS$ at a rate of 1:1 to US$. The Group opted to comply with
the requirements of SI 33 of 2019 and translated assets and liabilities from
US$ to RTGS$ at an exchange of 1:1 with the exception of balances in Nostro
FCAs, foreign creditors and debtors at the date of change. Foreign currency
denominated transactions were translated at 1:1 in the Statement of Profit or
loss and Other Comprehensive Income from the beginning of the financial year up
to 21 February 2019 and at the ruling interbank exchange rate thereafter. SI 33
of 2019, restricted full compliance with IAS 21 and the guidance issued by the
Public Accountants and Auditors Board.
3. Statement of compliance
While full compliance with International Financial Reporting Standards
("IFRS"); International Accounting Standards ("IAS"); and the International
Financial Reporting Interpretations Committee ("IFRIC") interpretations was
achieved in previous reporting periods, only partial compliance was achieved
for the year ended 31 March 2019 as a result of non-compliance with IAS 21 as
set out in note 2. These abridged financial results do not include all the
information and disclosures required to comply with IFRS and should be read in
conjunction with the Group's consolidated financial statements as at 31 March
2019 available at the Company's registered office.
4. Audit opinion
These abridged financial results should be read in conjunction with the
complete set of financial statements for the year ended 31 March 2019, which
have been audited by Deloitte & Touche Chartered Accountants (Zimbabwe) in
accordance with International Standards on Auditing. The auditors issued an
adverse opinion on the financial statements for non-compliance with IAS 21. The
audit report includes a section on Key Audit Matters. The Key Audit Matters are
on valuation of expected credit losses on financial assets and valuation of
investment in Mentor Africa (Pty) Limited. The auditor's report is available
for inspection at the Company's registered address.
5. Accounting policies
Accounting policies and methods of computation applied in the preparation of
these abridged financial statements are consistent, in all material respects,
with those used in the prior year, except for the adoption of IFRS 9 at the
beginning of the currenct financial year, which resulted in changes in
accounting policies to financial assets and liabilities.
6. Going concern
The Directors assess the ability of the Group to continue in operational
existence in the foreseeable future at each reporting date. As at 31 March
2019, the Directors have assessed the Group's ability to continue operating as
a going concern and believe that the preparation of these financial statements
on a going concern basis is still appropriate.
7. Segment information
31 March 31 March
2019 2018
Revenue - Continuing operations RTGS$ 000 RTGS$ 000
Supermarkets 747,338 487,822
Agriculture 37,015 28,847
Hotels 9,101 7,651
Departmental stores# 792 2,105
Corporate* (2,626) (1,490)
791,620 524,935
EBITDA - Continuing operations
Supermarkets 69,010 34,514
Agriculture? 31,743 10,289
Hotels 8,531 3,594
Departmental stores# (2,698) (4,216)
Corporate* (5,107) (3,570)
101,479 40,611
Segment assets
Supermarkets 204,081 126,701
Agriculture 120,763 85,582
Hotels 54,930 46,966
Departmental stores# 20,285 24,517
Corporate* 82,068 23,400
482,127 307,166
7. Segment information (continued)
31 March 31 March
2019 2018
Segment liabilities RTGS$ 000 RTGS$ 000
Supermarkets 108,112 56,148
Agriculture 33,385 32,779
Hotels 26,761 23,515
Departmental stores# 18,102 29,031
Corporate* 43,389 30,008
229,749 171,481
*Intercompany transactions and balances have been eliminated from the corporate
amounts. Corporate also includes other subsidiaries that are immaterial to
warrant separate disclosure.
? Prior year EBITDA is after adding back RTGS$1.25 million loss on disposal of
coffee bearer plants, which were uprooted to pave way for macadamia trees.
#Prior year numbers for the wholesale segment have been re-presented under
Department stores.
EBITDA figures are before group management fees.
31 March 31 March
2019 2018
8. Other information RTGS$ 000 RTGS$ 000
Capital commitments authorised by the Directors but not contracted 118,836 23,583
for
Group's share of capital commitments of joint operations 12,191 3,000
9. Net borrowings
Non-current borrowings 12,244 17,309
Current borrowings 51,520 55,973
Total borrowings 63,764 73,282
Cash and cash equivalents (33,006) (34,175)
Net borrowings 30,758 39,107
Comprising:
Secured 56,622 57,505
Unsecured 7,142 15,777
63,764 73,282
The weighted average cost of borrowings for the year was 13.18% per annum
(2018: 13.39% per annum).
9.1 Summary of borrowing arrangements
(ii) RTGS$2.0 million which bears interest at 8.4% per annum with final
repayment on 31 March 2021.
(iii) RTGS$0.8 million which bears interest at 11% per annum, with final
repayment on 30 September 2019.
(iv) RTGS$3.0 million which bears interest at 15.5% per annum with final
repayment on 31 December 2019.
(v) RTGS$2.3 million which bears interest at 11% per annum with final repayment
on 31 December 2019.
(vi) RTGS$3.2 million which bears interest at 11% per annum with final
repayment on 31 July 2021.
9.2 Breach of loan covenants
During the course of the current year, the Group was in default on some of its
loan covenants with lenders. These defaults arose as a result financial
difficulties facing some of the Group's components. The affected lenders had
called on the loans but the Group managed to renegotiate new payment agreements
with these lenders by 31 March 2019. Details of the revised loan expiry dates
are as disclosed in note 9.1 above.
10. Discontinued operations
Meikles Hotel
The Directors of the Company resolved to dispose of the entire Meikles Hotel
property, plant and equipment. Meikles Hotel is a division within the Group's
hospitality segment, Meikles Hospitality (Private) Limited. As at the reporting
date, sale agreements had been concluded in principle subject to approval by
shareholders of the Company and regulatory authorities. Processes to procure
approvals requisite to the transaction had commenced by 31 March 2019. The
expected proceeds of sale exceed the carrying amount of the related net assets
and, accordingly, no impairment losses were recognised. The assets to be
disposed have been classified as held for sale on the consolidated statement of
financial position. The summary of the profit / (loss) position from the
discontinued operation and the non-current assets held for sale have been shown
below.
10. Discontinued operations (continued)
Meikles Financial Services
As reported in the prior year, the Company disposed of Tuscarora Investments
(Private) Limited (trading as Meikles Financial Services), which carried out
the Group's financial services operations. The proceeds of sale exceeded the
carrying amount of the related net assets and, accordingly, no impairment
losses were recognised. The disposal of the financial services operations is
consistent with the Group's long-term policy to focus its activities on its
main segments, namely retail, agriculture, hospitality, wholesaling and
security services. The results of the discontinued operations included in
profit for the period are as set out below.
The prior year comparative financial information from discontinued operation
have been re-presented to include the operation classified as discontinued in
the current period.
31 March 31 March
2019 2018
RTGS$ 000 RTGS$ 000
Profit / (loss) for the period from discontinued operation
Revenue 14,585 9,995
Net fees and commission income - 297
Net operating costs (14,658) (11,453)
Other operating income 696 349
Operating profit / (loss) 623 (812)
Investment income - 11
Interest expense - (4)
Exchange gains / (losses) 498 (2)
Profit on disposal of operation - 768
Profit / (loss) before tax 1,121 (39)
Taxation - (53)
Profit / (loss) for the year from discontinued operations 1,121 (92)
Cash flows from discontinued operation
Net cash inflows from operating activities 3,104 4,035
Net cash flows from investing activities (306) 71
Net cash outflows from financing activities (1,317) (3,913)
Net cash flows from discontinued operation 1,481 193
Analysis of assets to be disposed of 31 March
2019
RTGS$ 000
Non-current assets
Property, plant and equipment 30,032
Net assets to be disposed of 30,032
11. Change in accounting policy - IFRS 9 adjustments
The Group has adopted IFRS 9 as issued by the IASB in July 2014 with a date of
transition of 1 April 2018, which resulted in changes in accounting policies
and adjustments to the amounts and disclosures in these abridged consolidated
financial statements. The Group did not early adopt any of IFRS 9 components in
previous periods.
The adoption of IFRS 9 has resulted in changes in accounting policies for
recognition, classification and measurement of financial assets and financial
liabilities as well as impairment of financial assets. IFRS 9 also
significantly amends other standards dealing with financial instruments such as
IFRS 7 Financial Instruments Disclosure.
As permitted by the transitional provisions of IFRS 9, The Group elected not to
restate comparative figures. Any adjustment to the carrying amounts of
financial assets and liabilities at the date of transition were recognised in
the opening retained earnings.
Below is the reconciliation of retained earnings at 1 April 2018 to show the
effects of adopting IFRS 9:
Retained
earnings
RTGS$'000 RTGS$'000
Balance at 1 April 2018 - as 82,854
previously stated
Decrease in trade and other (638)
receivables
Decrease in other financial (1,203)
assets
Increase in deferred tax 147
(1,694)
Balance at 1 April 2018 - 81,160
restated
END
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