TIDMTHL
RNS Number : 2814W
Tongaat Hulett Limited
13 November 2017
Tongaat Hulett Limited
Registration No: 1892/000610/06
JSE share code: TON
ISIN: ZAE000096541
INTERIM RESULTS FOR THE SIX MONTHSED 30 SEPTEMBER 2017
-- Revenue of R8,118 billion (2016: R8,503 billion) - 4,5%
-- Operating profit of R1,471 billion (2016: R1,350 billion) +9,0%
-- Headline earnings of R661 million (2016: R631 million) +4,8%
-- Operating cash flow (before working capital) of R2,447
billion
(2016: R2,317 billion)
-- Interim dividend of 100 cents per share (2016: 100 cents per
share)
COMMENTARY
The results for the half-year ended 30 September 2017 show a 9%
increase in operating profit to R1,471 billion. The sugar
operations have seen the beginning of the production volume
recovery after the drought conditions of the previous two years.
This benefit was offset by the impact of lower world sugar prices
and a period of high imports into South Africa. The starch
operations experienced the carry over effect, into the first half
of the year, of maize costs at import parity as a result of the
previous season's drought, concurrently with lower co-product
revenues. Tongaat Hulett benefitted from its portfolio approach,
with land conversion and development activities showing a
considerable increase compared to the prior period.
The various sugar operations generated total operating profit of
R835 million (2016: R825 million), as follows.
The Zimbabwe sugar operating profit increased to R358 million
(2016: R251 million). Local market sugar sales increased, including
volumes for refined white sugar. Sugar production is expected to be
lower than last year due to the impact of low dam levels in 2016
that led to restricted irrigation in the key growing period for
this season's crop. The current half-year results include the
higher milling portion of the division of proceeds, which was
adjusted late in the 2016/17 year as part of an ongoing
process.
The Mozambique sugar operating profit improved to R232 million
(2016: R219 million). The business benefitted from the appropriate
level of protection against imports in the local market, improved
sugar distribution and availability in more remote areas, at the
same time as there being pressure on local sales due to the tighter
general economic conditions. The positive impact on cane valuations
from price increases in the first half of last year was not
repeated in the first half of this year. Production volumes have
started recovering from a period of restricted irrigation levels as
a result of low dam levels.
The South African sugar operations, including various downstream
activities, produced operating profit of R211 million (2016: R306
million). The local market has seen a period of high imports into
South Africa while there was a gap in duty protection, which has
subsequently been resolved. Sugar production is recovering after
the drought which impacted the past two years and Tongaat Hulett is
expected to increase its share of total industry production to some
26% in 2017/18 (22% in the prior season). Export sales reflect an
increase in volumes and are simultaneously being impacted by the
lower world price. Voermol animal feeds continues to make an
important contribution, with increased sales volumes.
The starch and glucose operation recorded an operating profit of
R240 million (2016: R306 million). Margins were negatively impacted
in this half-year by maize costs which were at import parity levels
following the drought of the previous season. The large current
season maize crop has subsequently seen maize costs reduce
significantly, close to export parity, with the benefit beginning
to flow through in the latter part of the first six months.
Co-product revenues have been under pressure. A recovery in local
market sales volumes has started as a result of the replacement of
customers' imports with local production, together with ongoing
market development for modified starches and powdered glucose.
Land development activities in this period led to the sale of 35
developable hectares for integrated affordable neighbourhoods in
the newly launched Umhlanga Hills and Marshall Dam in Cornubia,
which will yield over 2 500 well-located affordable homes. Other
sales concluded will unlock urban amenities in Umhlanga Hills and
Bridge City (6 hectares), high intensity mixed use in Umhlanga
Ridgeside and Umhlanga Ridge Town Centre (4 hectares), retirement
in Ridgeside (17 hectares) and a new tertiary education campus at
Sibaya (6 hectares). These sales, totaling 68 developable hectares
(2016: 19 hectares), led to operating profit of R441 million (2016:
R269 million) being recorded. Profitability per hectare is in line
with anticipated ranges communicated previously.
Operating cash flow (before working capital movements) was
R2,447 billion compared to R2,317 billion in the first six months
of last year. The half-year reflects a R2,500 billion absorption of
cash in working capital (2016: R1,256 billion), with a greater than
normal mid-season increase in sugar stock levels. Sugar cane root
planting has been accelerated following the end of the drought.
Capex and root planting costs totaled R818 million (2016: R677
million). The land conversion and developments cash flow includes
both proceeds being received and development expenditure related
payments being made. The considerable positive net cash flow
anticipated this year is expected to be in the second half of the
year. In total, there has been a net cash outflow (before dividend
payments) of R1,451 billion (2016: R207 million outflow). Tongaat
Hulett's net debt at the mid-year was R6,5 billion (2016: R5,5
billion). Finance costs of R413 million (2016: R408 million) were
commensurate with the borrowings levels during the period and the
prevailing interest rates.
Taking all of the aforementioned into account, headline earnings
for the half-year amounted to R661 million (2016: R631 million). An
interim dividend of 100 cents per share has been declared (2016:
100 cents per share).
LOOKING AHEAD
Tongaat Hulett is poised for a positive earnings and cash flow
period ahead with its well positioned asset base and benefitting
from the multiple strategic actions completed to date and
ongoing.
Increasing Returns from the Sugar Asset Base - Recovering Cane
Yields, Growing Sugar Production, Utilising Existing Capacity, with
Low Incremental Costs
The decrease in costs achieved over the past four years was
equivalent to some R1,45 billion in real terms. The ongoing cost
reduction process is particularly focused on bought-in goods,
services, transport, marketing, salaries and wages, from cane
growing to the delivery of sugar to customers. The nature of sugar
milling and cane growing is such that there is a high proportion of
fixed costs. Unit costs of sugar production will reduce further
with the benefit of future volume increases. Tongaat Hulett's
marginal cost of additional sugar production currently averages
some US$101 per ton from own cane and US$247 per ton from third
party cane. Average realisations, ex-mill, based on current
regional and EU market dynamics, off a world market price of some
15 US cents per pound, are approximately US$341 per ton.
Weather and growing conditions over the previous two years (i.e.
2015/16 and 2016/17) masked the substantial progress that is being
made with intensive agricultural improvement programmes, increased
hectares under cane, irrigation efficiencies and power reliability.
The existing sugar cane footprint, the agricultural improvement
programmes and the completion of the few new planting partnership
initiatives currently underway are likely to result in future
production of more than 1 600 000 tons of sugar (2016/17: 1 056 000
tons), given regular growing conditions. Tongaat Hulett's intention
is to continue to initiate all cane related opportunities so as to
fully utilise its installed milling capacity of more than 2 000 000
tons per annum. Some 25 000 hectares of new cane land have been
planted, mainly in communal areas, in South Africa over the past
five years.
Total sugar production for 2017/18 is expected to be between 1
161 000 tons and 1 209 000 tons, compared to 1 056 000 tons in
2016/17. The good rainfall of the 2016/17 summer in the coastal
areas of KwaZulu-Natal was positive for the 2017/18 crop yield. The
2017/18 crop in Zimbabwe and Mozambique will continue to be
impacted, to varying extents, by the reduced irrigation and limited
replanting that was necessary during 2016. The current dam levels,
following the good rains at the end of 2016 into 2017, are
providing full irrigation during 2017/18 leading to a significant
crop recovery by 2018/19. Total sugar production is expected to
recover to between some 1 403 000 and 1 510 000 tons in
2018/19.
The domestic markets in countries where Tongaat Hulett produces
sugar remain a key focus area. In Mozambique, a 90 000 ton sugar
refinery is under construction at the Xinavane sugar mill, for
commissioning in the second half of 2018, the production from which
will replace imported industrial white sugar. In Zimbabwe,
operational optimisation at the Triangle refinery has increased
production of refined sugar suitable for domestic industrial
markets. Growth is expected in consumption per capita, off a low
base, particularly in Mozambique, supported by distribution,
industrialisation and marketing initiatives. Tongaat Hulett has the
leading sugar brands in South Africa, Zimbabwe, Botswana and
Namibia. There has been significant success in Zimbabwe and
Mozambique with the required protection from imports, with
Government support, given the high rural job impact of these
industries and being in line with international norms. In South
Africa, the current import tariff level is the lowest in the
region. The proposed tax in South Africa on sugar sweetened
beverages, its timing and its potential socio-economic impact are
being assessed. Dialogue between the sugar industry, Government and
organised labour has led to the formation of a Task Team with a
mandate to work on avenues
of Government support for the sugar industry, such as
strengthening the tariff mechanism, grower support schemes and a
fuel ethanol programme.
Tongaat Hulett has key market positions in both the region
(southern and eastern Africa) and the EU. It is developing and
expanding its positions in regional deficit markets, where a
premium is earned over world market prices as well as broadening
its footprint in key value-add markets in the EU where it continues
to enjoy preferential access.
The price of raw sugar in the world market, having traded in a
wide range of some 14,0 to 23,8 US cents per pound in the 12 months
to March 2017, has come under pressure over the past six months
from emerging forecasts for a global supply surplus in the 12
months to September 2018. Of late, it is trading around 14,8 US
cents per pound. In the medium term, there continue to be concerns
of the ability of global supply to match demand at prevailing price
levels. Global sugar consumption is predicted to continue to grow
at a rate of some 1,8% per annum, with most of this growth coming
from low per capita consumption developing countries.
Tongaat Hulett is focused on unlocking opportunities to grow its
animal feeds offering, ethanol production and electricity
generation to extract maximum value from sugar cane in all
countries of operation.
Starch and Glucose - More Competitive Maize and Better Local
Volume Prospects
The starch and glucose operation is well positioned and focused
on growing its sales volume, as it consolidates gains from
replacement of imports in the coffee/creamer and other sectors,
with continued enhancement of its product mix and developing
opportunities which have been identified and targeted for growth
through exports. Working together with customers, further
opportunities are being targeted for growth through customer
exports. Market development to increase the production of
value-added modified starches is progressing. This is all
underpinned by further improving the use of the available capacity
and the efficiency of operations.
The second six months of 2017/18 will see an improvement in
operating margins as the starch operation benefits from maize
prices closer to export parity levels following the record maize
harvest of 16,7 million tons in the 2017/18 season (2016/17: 7,8
million tons). The growth in sales volumes experienced in the first
half of the year is expected to accelerate in the second half of
the year, supported by the replacement of imported contracts with
local production, improving local market demand, new market
development and export market growth, all of which are benefitting
from the lower maize prices. The combination of the improved volume
and margin outlook with the ongoing focus on costs and operating
efficiencies is expected to see a considerable improvement in
operating profit for the second six months.
Increasing the Impetus of Land Development from a Solid
Platform
Collaboration with many stakeholders continues to yield
progress, consolidating the platform for increased momentum in the
broad-based value to be created through land development. A
detailed update of the land portfolio is available on the
www.tongaat.com website.
Over the past three years 322 developable hectares have been
sold through land development projects, generating substantial
social and economic benefits in the area north of Durban. Sales
expected over the next five years are in the range of some 630 to 1
179 hectares, coming from 3 315 hectares of prime developable land
near Durban and Ballito out of the portfolio of some 7 641
developable hectares. Some 3 593 hectares have been approved for
release from agriculture (Act 70 of 1970 approvals) and 1 246
hectares have EIA approval for development. Significant progress
has been made in consolidating and formalising collaboration with
key stakeholders including clients, communities near current and
proposed developments and local and provincial authorities.
Planning processes are expected to open up new development areas
around King Shaka International Airport, around Ballito and at
Ntshongweni west of Durban. The focus on unlocking demand drivers
is achieving a step up in momentum in targeted market sectors and
with key clients. A number of large-scale infrastructural projects
in the region are progressing well and approaching completion.
Transactions are being pursued that are structured to unlock
particular demand drivers and deliver transformation of ownership
and participation in the real estate value chain.
Negotiations with prospective buyers are ongoing and currently
involve some 135 developable hectares with profit potential in
excess of R1,5 billion over time. These include diverse demand
drivers, primarily in the growth corridor north of Durban.
Increasing interest is also being expressed in the areas of
Ntshongweni to the west of Durban and the airport region.
Conclusion
Tongaat Hulett is a proactive and resilient organisation working
in collaboration with all its stakeholders in a focused,
constructive, mutual value-adding and developmental manner. It has
operations in six countries in SADC, significant sugar cane and
maize processing facilities, a unique land conversion platform, a
sizeable animal feeds thrust and possibilities to further grow
ethanol and electricity generation.
Overall, there is a positive outlook for the 2017/18 full year
and into 2018/19, with earnings growth and cash flow momentum
expected.
For and on behalf of the Board
Bahle Sibisi Peter Staude
Chairman Chief Executive Officer
Amanzimnyama
Tongaat, KwaZulu-Natal
9 November 2017
DIVID DECLARATION
Notice is hereby given that the Board has declared an interim
gross cash dividend (number 180) of 100 cents per share for the
half-year ended 30 September 2017 to shareholders recorded in the
register at the close of business on Friday 2 February 2018.
The salient dates of the declaration and payment of this interim
dividend are as follows:
Last date to trade ordinary shares
"CUM" dividend Tuesday 30 January 2018
Ordinary shares trade "EX" dividend Wednesday 31 January 2018
Record date Friday 2 February 2018
Payment date Thursday 8 February 2018
Share certificates may not be dematerialised or re-materialised,
nor may transfers between registers take place between Wednesday 31
January 2018 and Friday 2 February 2018, both days inclusive.
The dividend is declared in the currency of the Republic of
South Africa. Dividends paid by the United Kingdom transfer
secretaries will be paid in British currency at the rate of
exchange ruling at the close of business on Tuesday 30 January
2018.
The dividend has been declared from income reserves. A net
dividend of 80 cents per share will apply to shareholders liable
for the local 20% dividend withholding tax and 100 cents per share
to shareholders exempt from paying the dividend tax. The issued
ordinary share capital as at 9 November 2017 is 135 112 506 shares.
The company's income tax reference number is 9306/101/20/6.
For and on behalf of the Board
M A C Mahlari
Company Secretary
Amanzimnyama
Tongaat, KwaZulu-Natal
9 November 2017
Income Statement
Condensed consolidated Unaudited Unaudited Audited
6 months 6 months 12 months
to to to
30 September 30 September 31 March
Rmillion 2017 2016 2017
-------------------------------------------- --------------------------- --------------------------- -----------------------
Revenue 8 118 8 503 17 915
--------------------------- --------------------------- -----------------------
Operating profit 1 471 1 350 2 333
Net financing costs
(note 1) (413) (408) (810)
Profit before tax 1 058 942 1 523
Tax (note 2) (267) (255) (428)
Profit for the period 791 687 1 095
--------------------------- --------------------------- -----------------------
Profit attributable
to:
Shareholders of
Tongaat Hulett 724 639 983
Minority (non-controlling)
interest 67 48 112
791 687 1 095
--------------------------- --------------------------- -----------------------
Earnings per share
(cents)
Basic 628.5 553.7 853.6
Diluted 628.5 553.7 853.6
--------------------------------------------------------------------------------------------------------
Headline earnings
attributable to
Tongaat Hulett shareholders
(note 3) 661 631 982
--------------------------- --------------------------- -----------------------
Headline earnings
per share (cents)
Basic 573.8 546.7 852.7
Diluted 573.8 546.7 852.7
Dividend per share
(cents) 100.0 100.0 300.0
Currency conversion
Rand/US dollar closing 13.46 13.96 13.38
Rand/US dollar average 13.21 14.60 14.09
Rand/Metical average 0.21 0.25 0.22
Rand/Euro average 15.03 16.29 15.45
US dollar/Euro average 1.14 1.12 1.10
Segmental Analysis
Condensed consolidated Unaudited Unaudited Audited
6 months 6 months 12 months
to to to
30 September 30 September 31 March
Rmillion 2017 2016 2017
-------------------------- ------------- ------------- ----------
REVENUE
Sugar
Zimbabwe 2 063 2 371 4 399
Swaziland 162 124 236
Mozambique 1 191 1 325 1 723
South Africa 2 004 2 197 6 405
------------- ------------- ----------
Sugar operations -
total 5 420 6 017 12 763
Starch operations 1 993 2 114 4 172
Land Conversion and
Developments 705 372 980
Consolidated total 8 118 8 503 17 915
------------- ------------- ----------
OPERATING PROFIT
Sugar
Zimbabwe 358 251 504
Swaziland 34 49 69
Mozambique 232 219 308
South Africa 211 306 390
------------- ------------- ----------
Sugar operations -
total 835 825 1 271
Starch operations 240 306 510
Land Conversion and
Developments 441 269 641
Centrally accounted
and consolidation items (39) (42) (74)
BEE IFRS 2 charge and
transaction costs (6) (8) (15)
Consolidated total 1 471 1 350 2 333
------------- ------------- ----------
FURTHER ANALYSIS OF
SUGAR OPERATING PROFIT
Sugar operations -
before cane valuations 1 308 1 184 1 128
Zimbabwe 580 557 748
Swaziland 61 47 67
Mozambique 394 288 168
South Africa 273 292 145
------------- ------------- ----------
Cane valuations - income
statement effect (473) (359) 143
Zimbabwe (222) (306) (244)
Swaziland (27) 2 2
Mozambique (162) (69) 140
South Africa (62) 14 245
------------- ------------- ----------
Sugar operations -
after cane valuations 835 825 1 271
Zimbabwe 358 251 504
Swaziland 34 49 69
Mozambique 232 219 308
South Africa 211 306 390
------------- ------------- ----------
Statement of Financial Position
Condensed consolidated Unaudited Unaudited Audited
31
30 September 30 September March
Rmillion 2017 2016 2017
--------------------------------------------------- ------------------------------ ------------------------------- --------
ASSETS
Non-current assets
Property, plant and 13
equipment 14 184 13 478 688
Long-term receivable 649 592 619
Goodwill 388 393 382
Intangible assets 409 290 366
Investments 30 25 28
------------------------------ ------------------------------- --------
15
15 660 14 778 083
12
Current assets 17 002 14 590 871
Inventories 6 139 4 889 2 949
Growing crops (note
4) 2 137 2 083 2 549
Trade and other receivables 5 137 5 059 4 632
Cash and cash equivalents 3 589 2 559 2 741
------------------------------ ------------------------------- --------
27
TOTAL ASSETS 32 662 29 368 954
------------------------------ ------------------------------- --------
EQUITY AND LIABILITIES
Capital and reserves
Share capital 135 135 135
Share premium 1 544 1 544 1 544
BEE held consolidation
shares (621) (640) (642)
Retained income 9 525 8 779 9 044
Other reserves 1 095 587 700
------------------------------ ------------------------------- --------
10
Shareholders' interest 11 678 10 405 781
Minority (non-controlling)
interest 2 038 1 968 1 957
------------------------------ ------------------------------- --------
12
Equity 13 716 12 373 738
Non-current liabilities 8 408 7 973 8 296
Deferred tax 2 483 2 606 2 537
Long-term borrowings 5 127 4 547 4 975
Provisions 798 820 784
------------------------------ ------------------------------- --------
Current liabilities 10 538 9 022 6 920
Trade and other payables
(note 5) 4 682 4 605 3 598
Short-term borrowings 4 976 3 542 2 546
Non-recourse equity-settled
BEE borrowings 602 620 623
Tax 278 255 153
------------------------------ ------------------------------- --------
27
TOTAL EQUITY AND LIABILITIES 32 662 29 368 954
------------------------------ ------------------------------- --------
--------------------------------------------------------------------------------------------
Number of shares (000)
135
- in issue 135 113 135 113 113
- weighted average 115
(basic) 115 189 115 414 158
- weighted average 115
(diluted) 115 189 115 414 158
Statement of Changes in Equity
Condensed consolidated Unaudited Unaudited Audited
6 months 6 months 12 months
to to to
30 September 30 September 31 March
Rmillion 2017 2016 2017
---------------------------- ------------- ------------- ----------
Balance at beginning
of period 10 781 13 273 13 273
Total comprehensive
income for the period 1 161 (2 787) (2 324)
Retained income 724 639 1 012
Movement in hedge
reserve (6) (6) (5)
Foreign currency
translation 443 (3 420) (3 331)
------------- ------------- ----------
Dividends paid (220) (66) (176)
BEE share-based payment
charge 5 7 13
Share-based payment
charge 8 25 60
Settlement of share-based
payment awards (57) (47) (65)
Shareholders' interest 11 678 10 405 10 781
Minority (non-controlling)
interest 2 038 1 968 1 957
Balance at beginning
of period 1 957 2 152 2 152
Total comprehensive
income for the period 93 (180) (181)
Retained income 67 48 112
Foreign currency
translation 26 (228) (293)
============= ============= ==========
Dividends paid to
minorities (12) (4) (14)
------------- ------------- ----------
Equity 13 716 12 373 12 738
------------- ------------- ----------
Statement of Other Comprehensive Income
Condensed consolidated Unaudited Unaudited Audited
6 months 6 months 12 months
to to to
30 September 30 September 31 March
Rmillion 2017 2016 2017
-------------------------------------- ------------- ------------- ----------
Profit for the period 791 687 1 095
Other comprehensive income 463 (3 654) (3 600)
Items that will not be
reclassified to profit
or loss:
Foreign currency translation 469 (3 648) (3 624)
Actuarial gain on post-retirement
benefits 40
Tax on actuarial gain (11)
Items that may be reclassified
subsequently to profit
or loss:
Hedge reserve (8) (8) (7)
Tax on movement in hedge
reserve 2 2 2
Total comprehensive income
for the period 1 254 (2 967) (2 505)
------------- ------------- ----------
Total comprehensive income
attributable to:
Shareholders of Tongaat
Hulett 1 161 (2 787) (2 324)
Minority (non-controlling)
interest 93 (180) (181)
1 254 (2 967) (2 505)
------------- ------------- ----------
Statement of Cash Flows
Condensed consolidated Unaudited Unaudited Audited
6 months 6 months 12 months
to to to
30 September 30 September 31 March
Rmillion 2017 2016 2017
----------------------------- ------------- ------------- ----------
Operating profit 1 471 1 350 2 333
Surplus on disposal
of property, plant and
equipment (51) (11) (42)
Depreciation 517 589 1 027
Growing crops valuation
and other non-cash items 510 389 (38)
Operating cash flow 2 447 2 317 3 280
Change in working capital (2 500) (1 256) (104)
Cash flow from operations (53) 1 061 3 176
Tax payments (218) (190) (482)
Net financing costs (413) (408) (810)
Cash flow from operating
activities (684) 463 1 884
Expenditure on property,
plant and equipment:
New (109) (95) (423)
Replacement (218) (228) (228)
Cane roots (348) (133) (418)
Major plant overhaul
cost changes (90) (139) 26
Intangible assets (53) (82) (166)
Other capital items 51 7 59
Net cash flow before
dividends and financing
activities (1 451) (207) 734
Dividends paid (232) (70) (190)
Net cash flow before
financing activities (1 683) (277) 544
Borrowings raised 2 568 1 267 680
Non-recourse equity-settled
BEE borrowings (21) 15 18
Settlement of share-based
payment awards (57) (47) (65)
Net increase in cash
and cash equivalents 807 958 1 177
Balance at beginning
of period 2 741 1 877 1 877
Currency alignment 41 (276) (313)
Cash and cash equivalents
at end of period 3 589 2 559 2 741
------------- ------------- ----------
Notes
Condensed consolidated Unaudited Unaudited Audited
6 months 6 months 12 months
to to to
30 September 30 September 31 March
Rmillion 2017 2016 2017
--------------------------------- ------------- ------------- ----------
1. Net financing costs
Interest paid (497) (472) (973)
Interest capitalised 21 16 34
Interest received 63 48 129
(413) (408) (810)
------------- ------------- ----------
2. Tax
Normal (396) (355) (549)
Deferred 129 100 121
(267) (255) (428)
------------- ------------- ----------
3. Headline earnings
Profit attributable
to shareholders 724 639 983
Adjusted for:
Capital profit on
disposal of land and
buildings (52) (8) (12)
Surplus on other
capital items (4)
Surplus on disposal
of property, plant and
equipment (3)
Minority (non-controlling)
interest 1 1
Tax on the above
items (11) 2 14
661 631 982
------------- ------------- ----------
4. Growing crops
Growing crops, comprising standing cane,
is measured at fair value which is determined
using an estimate of cane yields and prices
which are unobservable inputs and, in accordance
with IFRS, categorised as level 3 under
the fair value hierarchy. Changes in fair
value are recognised in profit or loss.
A change in yield of one ton per hectare
on the estimated yield of 75 tons cane per
hectare (30 September 2016: 73 tons per
hectare and 31 March 2017: 76 tons per hectare)
would result in a R28 million (30 September
2016: R31 million and 31 March 2017: R35
million) change in fair value while a change
of one percent in the cane price would result
in a R25 million (30 September 2016: R23
million and 31 March 2017: R32 million)
change in fair value.
5. Trade and other
payables
Included in trade and other payables is
the maize obligation (interest bearing)
of R687 million (30 September 2016: R712
million and 31 March 2017: R509 million).
6. Capital expenditure
commitments
Contracted 282 94 104
Approved 708 152 250
990 246 354
------------- ------------- ----------
7. Operating lease
commitments 82 70 60
------------- ------------- ----------
8. Guarantees and
contingent liabilities 79 129 96
------------- ------------- ----------
9. Basis of preparation
and accounting policies
The condensed consolidated unaudited results
for the half-year ended 30 September 2017
have been prepared in accordance with and
containing the information required by IAS
34 Interim Financial Reporting, the SAICA
Financial Reporting Guides as issued by
the Accounting Practices Committee, Financial
Reporting Pronouncements as issued by the
Financial Reporting Standards Council and
the requirements of the Companies Act of
South Africa. This announcement does not
include the information required pursuant
to paragraph 16A(j) of IAS 34 which is available
on the website, at the registered office
or on request. The report has been prepared
using accounting policies that comply with
IFRS which are consistent with those applied
in the consolidated financial statements
for the year ended 31 March 2017 and were
prepared under the supervision of the Chief
Financial Officer, M H Munro CA (SA). Any
reference to future financial performance
that may be included in this announcement
has not been reviewed and reported on by
the company's auditor.
Tongaat Hulett has adopted all the new or
revised accounting pronouncements as issued
by the IASB which were effective for Tongaat
Hulett from 1 January 2017. The adoption
of these standards had no recognition and
measurement impact on the financial results.
10. Subsequent events
There were no material events between
30 September 2017 and the date of
this report.
CORPORATE INFORMATION
Directorate: C B Sibisi (Chairman), P H Staude (Chief Executive
Officer)*,
S M Beesley, F Jakoet, J John, R P Kupara^, T N Mgoduso, N
Mjoli-Mncube,
M H Munro*, S G Pretorius, T A Salomão +
* Executive directors + Mozambican ^ Zimbabwean
Registered office:
Amanzimnyama Hill Road, Tongaat, KwaZulu-Natal
P O Box 3, Tongaat 4400
Telephone: +27 32 439 4019
Facsimile: +27 31 570 1055
Transfer secretaries:
South Africa:
Computershare Investor Services (Pty) Limited
Telephone: +27 11 370 7700
United Kingdom:
Capita Registrars
Telephone: +44 20 8639 2406
Sponsor: Investec Bank Limited
Telephone: +27 11 286 7000
www.tongaat.com
e-mail: info@tongaat.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR GGGAPGUPMUMW
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