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Preliminary Audited Consolidated Results for the year ended 31 December 2017
BELL EQUIPMENT LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1968/013656/06)
("Bell")
Share code: BEL
ISIN: ZAE000028304
PRELIMINARY AUDITED CONSOLIDATED RESULTS FOR THE YEAR ENDED 31 DECEMBER 2017
HIGHLIGHTS
Audited Audited
31 December 31 December
2017 2016
Revenue - Up 13% R6,8bn R6,0bn
NPAT - Up 604% R272,1m R38,6m
HEPS - Up 463% 270c 48c *
Final Dividend - Up 100% 25c -
* Restated
COMMENTARY BY THE CHAIRMAN AND CHIEF EXECUTIVE
OVERVIEW
We are pleased to report to our various stakeholders that Bell Equipment has delivered a solid result for
the year by continuing to build on its strategy for long-term value creation and sustainable growth over
the years ahead. The year has delivered significantly better results than 2016.
Bell Equipment is exposed to a number of economies that performed differently during the year under
review. Our African operations continued to perform poorly because of relatively low mining activity.
Our South African distribution business had a better year as did the European and North American
operations despite extensive movement in the Euro to US Dollar exchange rate which subdued
profitability particularly for our North American operations.
Further steps towards restructuring our underperforming operations in the DRC, Mozambique and
Zambia and reducing the significant losses encountered here over the last few years are beginning to
bear fruit and to contribute to better results.
A decade after the world went through a major economic crisis a mark of revival has now been achieved
with every major economy expanding, and this will positively impact our business. According to the
International Monetary Fund the world economy is expected to grow by between 3% and 4% this year,
up from 2.7% in 2017.
Many milestones have been achieved in the past financial year and these have allowed Bell to confirm
its position as the global specialist in articulated dump trucks.
FINANCIAL
Revenue for 2017 was up 13% to R6,8 billion. Profit after tax increased to R272,1 million, up from the
2016 result of R38,6 million when Bell recorded substantial operating losses of R185,8 million in the Rest
of Africa segment. Headline earnings per share are up from 48 cents per share to a more respectable
270 cents per share.
On average the Rand was stronger in 2017 compared with the 2016 financial year and this impacted
sales and margins negatively and partially offset the benefit of higher sales volumes. The stronger Rand
also contributed to a reduction in foreign expenses when reported in Rand.
With more buoyant global conditions the board took a strategic decision to increase finished product
inventories to respond more rapidly to higher demand across our spectrum of client industries. Current
manufacturing locations and philosophies have inherently longer supply chains than some of our global
competitors, and we had to counter this.
The board has declared a final dividend of 25 cents per share which added to the interim dividend of 20
cents amounts to a total dividend of 45 cents for the year compared to 15 cents in 2016.
OPERATIONS
With a greater portion of our core products now being sold in the Northern Hemisphere, plans have
been confirmed and construction work has begun on expanding our Eisenach-Kindel factory in Germany.
This follows on from the completion of our new European Logistics Centre which came into operation in
June 2017.
Bell continues to invest in critical research and development to ensure that our products remain at the
forefront of innovative design and engineering.
Growth in our South African operations is assured with the global growth in acceptance of the
articulated dump truck concept and product, coupled with the addition of new products for our South
African distribution business. A full line of excavator machines from Kobelco has been launched and Bell
expects to gain a significant share of this business in the local market.
The launch and introduction of the range of Kamaz heavy-duty trucks to the construction and mining
industry in South Africa is a diversification which will allow Bell to compete in the lower cost sector of
this market. Localisation and production of these trucks are likely to begin early in 2019 at the plant in
Richards Bay, bringing with it additional jobs.
Bell continues to be a sizeable employer with approximately 3200 employees worldwide of which
approximately 2500 are located in South Africa. The multiplier effect of our operations in South Africa
with related businesses providing us with both goods and services is significant, with over 1000 South
African companies working together with Bell to produce, service and distribute our products across the
world.
SUSTAINABILITY
Risks associated with the sustainability of the group are managed through our strategic planning
process, directly involving the board. We are currently focused on growing our global volumes and
capturing a greater volume of the annuity income associated with our machinery life cycle.
With increased currency volatility and the impact it has on our competitiveness we are also aggressively
driving initiatives to reduce both operational and product costs.
The expansion of our European manufacturing capacity will allow better flexibility, quicker
responsiveness to improve our customer experience and support our penetration in the Northern
Hemisphere.
We recognise the importance of a sustainable business and along with our geographic product and
industry diversity we have built sustainability into the different facets of our operations.
CORPORATE GOVERNANCE
Our commitment to being a good corporate citizen pervades our total approach to the business and we
endeavour to act in a responsible, balanced and commercially sensible manner.
We are ever conscious of the impact on the environment and we continue to measure and mitigate
these risks.
Bell is committed to the highest standards of corporate governance. Details of governance structures
and the extent to which we apply relevant principles of corporate governance, including the King IV
Report on Corporate Governance and regulatory requirements, are provided in the integrated annual
report.
TRANSFORMATION
Without a sense of purpose Bell would not be able to achieve its full potential which has to include a
role and involvement within our local community and its environment, developing a well-trained and
diverse workforce as well as providing the retraining and opportunities that our employees and our
business need to adjust to an increasingly automated world within an emerging and new South African
economy.
Following the conclusion of the BBBEE ownership transaction in Bell Equipment Sales South Africa
Limited, our South African distribution business, in 2017, our customers in South Africa now benefit
from procuring from a 30% black woman owned entity.
Furthermore, the South African entities are committed to continued focus on the other elements of the
BBBEE scorecard.
OUTLOOK
The political changes which took place in South Africa towards the end of 2017 have improved local
sentiment and along with improved macroeconomic conditions we believe that all our African
operations should deliver significantly better results in 2018.
Improved business sentiment in the South African market will hopefully drive the many infrastructure
projects proposed by government.
Most major equipment markets are expected to see growth this year with global construction and
mining machinery markets expected to increase by between 10% and 15%.
The North American market for articulated dump trucks disappointed over the last 2 to 3 years with a
decline in volumes. A turning point seems to have been reached in the fourth quarter of 2017 and the
order book at this time suggests a somewhat stronger year for this very important market for Bell.
BOARD CHANGES
The Board has appointed Leon Goosen, the current chief executive designate, as the chief executive and
Gary Bell will step down from his role as chief executive with effect from 1 June 2018. Gary will remain
with the group, having been appointed as the non-executive chairman of the board effective 1 June 2018.
In compliance with the King IV requirements, John Barton will assume the role of lead independent non-
executive director to ensure adherence to good governance principles. The board acknowledges his
valuable chairmanship during the 3 years of his tenure.
On behalf of the board, I would like to thank Gary for his exemplary service, dedication and commitment
to the Company since 1971. The board looks forward to Gary's continued contribution as the non-
executive chairman. The Company will continue to benefit from his industry experience and intimate
knowledge of Bell.
We congratulate Leon on his appointment as chief executive and are confident that he, together
with senior management, will continue to grow and build the Bell core business and deliver the right
outcomes for the group and its stakeholders.
APPRECIATION
On behalf of the board we thank our executive management and our 1-BELL Team for their considerable
efforts and for steering the business through the past year. We also thank our stakeholders for their
support and our fellow board members for their guidance and ongoing commitment.
The past year has seen us reach a number of new milestones to propel the group into the next stage of
growth with increased contributions from new products and new markets in 2018. We would like to
thank everyone for their hard work and dedication and congratulate them on what has been a
significantly better year for Bell Equipment.
JR Barton GW Bell
Independent non-executive chairman Chief executive
SUMMARISED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
as at 31 December 2017 Audited Audited
31 December 31 December
R'000 2017 2016
ASSETS
Non-current assets 1 111 406 1 029 444
Property, plant and equipment 691 429 704 295
Intangible assets 224 766 216 419
Investments 574 568
Interest-bearing long-term receivables 92 774 16 964
Deferred taxation 101 863 91 198
Current assets 4 246 208 3 477 504
Inventory 3 047 119 2 427 921
Trade and other receivables 778 555 751 672
Current portion of interest-bearing long-term receivables 96 053 56 546
Prepayments 51 912 21 828
Other financial assets 13 139 5 641
Current taxation assets 9 179 29 601
Cash and bank balances 250 251 184 295
TOTAL ASSETS 5 357 614 4 506 948
EQUITY AND LIABILITIES
Capital and reserves 2 988 602 2 758 247
Stated capital (Note 5) 232 244 232 139
Non-distributable reserves 530 281 553 298
Retained earnings 2 214 236 1 972 810
Attributable to owners of Bell Equipment Limited 2 976 761 2 758 247
Non-controlling interest 11 841 -
Non-current liabilities 351 819 321 787
Interest-bearing liabilities 113 183 103 175
Repurchase obligations and deferred leasing income 1 243 2 034
Deferred income 106 568 84 083
Long-term provisions and lease escalation 42 074 47 781
Deferred taxation 88 751 84 714
Current liabilities 2 017 193 1 426 914
Trade and other payables 1 094 742 759 463
Current portion of interest-bearing liabilities 215 414 51 268
Current portion of repurchase obligations and deferred leasing income 746 763
Current portion of deferred income 94 171 82 903
Current portion of provisions and lease escalation 60 825 69 562
Other financial liabilities 20 272 952
Current taxation liabilities 25 675 15 615
Bank overdrafts and borrowings on call 505 348 446 388
TOTAL EQUITY AND LIABILITIES 5 357 614 4 506 948
SUMMARISED CONSOLIDATED STATEMENT OF PROFIT OR LOSS
for the year ended 31 December 2017
Audited Audited
R'000 2017 2016
Revenue 6 766 586 6 002 341
Cost of sales (5 328 636) (4 604 486)
Gross profit 1 437 950 1 397 855
Other operating income 221 431 168 448
Expenses (1 226 135) (1 418 055)
Profit from operating activities (Note 2) 433 246 148 248
Net interest expense (Note 3) (29 888) (32 557)
Profit before taxation 403 358 115 691
Taxation (131 308) (77 072)
Profit for the year 272 050 38 619
Profit for the year attributable to:
- Owners of Bell Equipment Limited 260 209 37 472
- Non-controlling interest 11 841 1 147
Earnings per share (basic)(cents) (Note 4) 273 39
Earnings per share (diluted)(cents) (Note 4) 273 39
SUMMARISED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND
OTHER COMPREHENSIVE INCOME
for the year ended 31 December 2017
Audited Audited
R'000 2017 2016
Profit for the year 272 050 38 619
Other comprehensive loss
Items that may be reclassified subsequently to profit or loss:
Exchange differences arising during the year (22 311) (221 639)
Exchange differences on translating foreign operations (23 744) (210 970)
Exchange differences on foreign reserves 1 433 (10 669)
Items that may not be reclassified subsequently to profit or loss: (3 124) 17 340
Surplus arising on revaluation of properties 258 24 300
Taxation relating to revaluation of properties (3 382) (6 960)
Other comprehensive loss for the year, net of taxation (25 435) (204 299)
Total comprehensive income (loss) for the year 246 615 (165 680)
Total comprehensive income (loss) attributable to:
- Owners of Bell Equipment Limited 234 774 (166 827)
- Non-controlling interest 11 841 1 147
SUMMARISED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the year ended 31 December 2017
Attributable to owners of Bell Equipment Limited
Non- Non- Total
Stated distributable Retained controlling capital and
R'000 capital reserves earnings Total interest reserves
Balance at 31 December 2015 - Audited 230 567 752 269 1 957 219 2 940 055 7 361 2 947 416
Total comprehensive (loss) income for the year - (204 299) 37 472 (166 827) 1 147 (165 680)
Transfer to retained earnings relating to expired share options - (3 220) 3 220 - - -
Decrease in equity-settled employee benefits reserve relating to
forfeited share options - (702) - (702) - (702)
Share options exercised 1 572 - - 1 572 - 1 572
Increase in statutory reserves of foreign subsidiaries - 9 250 (9 250) - - -
Dividends paid - - (14 273) (14 273) - (14 273)
Transactions with non-controlling interest - - (1 578) (1 578) (8 508) (10 086)
Balance at 31 December 2016 - Audited 232 139 553 298 1 972 810 2 758 247 - 2 758 247
Total comprehensive (loss) income for the year - (25 435) 260 209 234 774 11 841 246 615
Transfer between reserves - (172) 172 - - -
Transfer to retained earnings relating to expired share options - (107) 107 - - -
Increase in equity-settled employee benefits reserve - 498 - 498 - 498
Share-based payment relating to BBBEE ownership transaction - 2 199 - 2 199 - 2 199
Share options exercised 105 - - 105 - 105
Dividends paid - - (19 062) (19 062) - (19 062)
Balance at 31 December 2017 - Audited 232 244 530 281 2 214 236 2 976 761 11 841 2 988 602
SUMMARISED CONSOLIDATED STATEMENT OF CASH FLOWS
for the year ended 31 December 2017
Audited Audited
R'000 2017 2016
Cash generated from operations before working capital changes 665 069 406 005
Cash utilised in working capital (533 369) (208 338)
Cash generated from operations 131 700 197 667
Net interest paid (29 635) (32 377)
Taxation paid (112 262) (76 951)
Net cash (utilised in) generated from operating activities (10 197) 88 339
Purchase of property, plant and equipment and intangible assets (135 842) (135 453)
Proceeds on disposal of property, plant and equipment and intangible assets 7 975 908
(Increase) decrease in interest-bearing long-term receivables (9 303) 17 155
Net cash utilised in investing activities (137 170) (117 390)
Interest-bearing liabilities raised 247 316 45 959
Interest-bearing liabilities repaid (73 996) (56 642)
Proceeds from share options exercised 105 1 572
Payments to non-controlling interest - (10 086)
Dividends paid (19 062) (14 273)
Net cash generated from (utilised in) financing activities 154 363 (33 470)
Net cash inflow (outflow) 6 996 (62 521)
Net bank overdrafts and borrowings on call at beginning of the year (262 093) (199 572)
Net bank overdrafts and borrowings on call at end of the year (255 097) (262 093)
Comprising:
Bank overdrafts and borrowings on call (505 348) (446 388)
Cash and bank balances 250 251 184 295
Net bank overdrafts and borrowings on call at end of the year (255 097) (262 093)
SUMMARISED NOTES TO THE PRELIMINARY AUDITED CONSOLIDATED RESULTS
for the year ended 31 December 2017
31 December 31 December
R'000 2017 2016
1 ACCOUNTING POLICIES
The consolidated financial statements, from which these summarised consolidated financial
statements have been derived, have been prepared in accordance with International
Financial Reporting Standards (IFRS) and the policies and methods of computation are
consistent with those applied to the previous year, except for the adoption of amended
standards and the changes as described below. The consolidated financial statements have
been prepared on the historical cost basis, except for the revaluation of properties and financial
instruments.
The group has adopted all of the amended standards relevant to its operations and effective
for annual reporting periods beginning 1 January 2017. The adoption of these amended
standards and interpretations has not had any significant impact on the amounts reported in
the financial statements and in this preliminary report.
In the current period the group corrected a calculation error in the group's December 2016
headline earnings per share. Details of this prior period correction are disclosed in note 11.
These summarised consolidated financial statements are prepared in accordance with the
requirements of the JSE Limited's Listings Requirements for preliminary reports and the
requirements of the Companies Act in South Africa applicable to summarised financial
statements. The Listings Requirements require preliminary reports to be prepared in accordance
with the framework concepts and the measurement and recognition requirements of IFRS,
the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee,
Financial Pronouncements as issued by the Financial Reporting Standards Council and the
information at a minimum as required by IAS 34 Interim Financial Reporting. The preparation
of this preliminary report and consolidated financial statements from which these results
are summarised was supervised by the Group Finance Director, KJ van Haght CA (SA).
2 PROFIT FROM OPERATING ACTIVITIES
Profit from operating activities is arrived at after taking into account:
Income
Currency exchange gains 156 361 388 753
Deferred warranty income 81 423 50 764
Decrease in warranty provision 9 087 -
Import duty rebates 84 612 65 020
Net surplus on disposal of property, plant and equipment and intangible assets 3 038 26
Reversal of impairment loss recognised on rental assets 1 942 -
Expenditure
Amortisation of intangible assets 33 240 33 229
Amounts written off as uncollectible 13 618 33 898
Auditors' remuneration - audit and other services 9 739 10 772
BBBEE share-based payment charge 2 199 -
Consulting fees 27 844 33 270
Currency exchange losses 157 426 419 694
Depreciation of property, plant and equipment 152 902 110 985
Impairment loss recognised on revaluation of buildings 2 597 -
Impairment loss recognised on rental assets - 8 262
Increase in warranty provision - 14 060
Operating lease charges 116 456 127 370
Research expenses (excluding staff costs) 46 298 35 501
Severance pay 8 684 9 739
Staff costs (including directors' remuneration) 1 272 171 1 203 963
3 NET INTEREST EXPENSE
Interest expense 43 350 48 174
Interest income (13 462) (15 617)
Net interest expense 29 888 32 557
4 EARNINGS AND NET ASSET VALUE PER SHARE
Basic earnings per share is arrived at as follows:
Profit for the year attributable to owners of Bell Equipment Limited (R'000) 260 209 37 472
Weighted average number of ordinary shares in issue ('000) 95 307 95 159
Earnings per share (basic) (cents) 273 39
Diluted earnings per share is arrived at as follows:
Profit for the year attributable to owners of Bell Equipment Limited (R'000) 260 209 37 472
Fully converted weighted average number of shares ('000) * 95 454 95 289
Earnings per share (diluted) (cents) 273 39
* The number of shares has been adjusted for the effect of the dilutive potential ordinary
shares relating to the unexercised options in the group's share option scheme.
Headline earnings per share is arrived at as follows:
Profit for the year attributable to owners of Bell Equipment Limited (R'000) 260 209 37 472
Net surplus on disposal of property, plant and equipment and intangible assets (R'000) (3 038) (26)
Taxation effect of net surplus on disposal of property, plant and equipment and
intangible assets (R'000) 237 7
Impairment loss recognised on revaluation of buildings (R'000) 2 597 -
Taxation effect of impairment loss recognised on revaluation of buildings (R'000) (909) -
Impairment loss in respect of property, plant and equipment rental assets (R'000) (restated**) - 8 262
Reversal of impairment loss in respect of property, plant and equipment rental assets (R'000) (1 942) -
Headline earnings (R'000) 257 154 45 715
Weighted average number of ordinary shares in issue ('000) 95 307 95 159
Headline earnings per share (basic) (cents) (restated**) 270 48
Diluted headline earnings per share is arrived at as follows:
Headline earnings calculated above (R'000) (restated**) 257 154 45 715
Fully converted weighted average number of shares ('000) 95 454 95 289
Headline earnings per share (diluted) (cents) (restated**) 269 48
** Refer to restatement of December 2016 headline earnings per share in note 11.
Net asset value per share is arrived at as follows:
Total capital and reserves (R'000) 2 988 602 2 758 247
Number of shares in issue ('000) 95 307 95 297
Net asset value per share (cents) 3 136 2 894
5 STATED CAPITAL
Authorised
100 000 000 (2016: 100 000 000) ordinary shares of no par value
Issued
95 306 885 (2016: 95 296 885) ordinary shares of no par value 232 244 232 139
The increase in issued share capital relates to 10 000 (2016: 150 000) share options
exercised at an average share price of R10,48 per share.
6 CAPITAL EXPENDITURE COMMITMENTS
Contracted 60 089 13 228
Authorised, but not contracted 282 774 88 508
Total capital expenditure commitments 342 863 101 736
7 SUMMARISED SEGMENTAL ANALYSIS
Operating
R'000 Revenue profit (loss) Assets Liabilities
December 2017
South African sales operation 2 991 387 159 513 1 516 718 1 369 180
South African manufacturing and logistics operation 4 376 792 223 581 3 408 012 1 795 870
European operation 2 324 683 84 913 1 010 515 587 383
Rest of Africa operation 618 845 (70 000) 421 968 405 072
North American operation 1 151 199 49 980 233 896 170 066
All other operations - (83 267) 2 040 945 113 310
Inter-segmental eliminations * (4 696 320) 68 526 (3 274 440) (2 071 869)
Total 6 766 586 433 246 5 357 614 2 369 012
December 2016
South African sales operation 2 731 470 115 347 1 093 956 699 513
South African manufacturing and logistics operation 3 334 624 80 506 2 858 072 1 278 889
European operation 2 180 950 60 801 1 074 298 694 993
Rest of Africa operation 799 706 (185 805) 624 312 511 340
North American operation 665 612 49 810 266 720 198 098
All other operations - (163 390) 1 117 089 239 591
Inter-segmental eliminations (3 710 021) 190 979 (2 527 499) (1 873 723)
Total 6 002 341 148 248 4 506 948 1 748 701
* Inter-segmental eliminations above relate to the following:
i) Revenue - the elimination of intra-group sales transactions, mainly sales
from the South African manufacturing and logistics operation, to the distribution
operations.
ii) Operating profit (loss) - the elimination of profit (loss) on intra-group
transactions, mainly sales transactions from the South African manufacturing
and logistics operation to the distribution operations, where the inventory has
not yet been on-sold by the distribution operations to a third party at year-end.
iii) Assets and liabilities - the intra-group transactions result in intra-group
receivables and payables balances and furthermore intra-group loans are in
place between certain group operations. These are eliminated on consolidation.
R'000 31 December 31 December
8 CONTINGENT LIABILITIES 2017 2016
8.1 The group has assisted customers with the financing of equipment purchased
through a financing venture with WesBank, a division of FirstRand Bank Limited.
In respect of the different categories of financing provided by WesBank, the group
carries certain credit risks. These are considered to be financial guarantee contracts.
The group is liable for all credit risks and therefore the full balance due to WesBank
by default customers with regard to Bell-backed deals and a portion of the credit
risk and a portion of the balance due to WesBank by default customers with regard to
Bell-shared risk deals. In terms of the Bell-shared risk deals the group's exposure
is calculated as a percentage of the net selling price of the equipment.
At year-end the group's credit risk exposure to WesBank under Bell-backed deals
for which the group carries all the credit risk totalled 176 091 144 688
At year-end the group's credit risk exposure to WesBank under Bell-shared risk
deals for which the group carries a portion of the credit risk totalled 1 872 2 682
In the event of default, the equipment financed would be recovered and it is
estimated that on re-sale the equipment would presently realise the following
towards the above liabilities 228 782 249 936
(50 819) (102 566)
Less: impairment of cash collateral (1 549) -
Net contingent liability - -
The group has entered into similar shared risk arrangements with various other
institutions. These arrangements are first-loss undertakings and the group's exposure
remains fixed until the capital is repaid. These are considered to be financial
guarantee contracts.
At year-end the group's credit risk exposure to these financial institutions totalled 6 123 3 146
In the event of default, the equipment financed would be recovered and it is
estimated that on re-sale the equipment would presently realise the following
towards the above liability 7 935 1 413
(1 812) 1 733
Less: provision for non-recovery - (1 797)
Net contingent liability - -
Where customers are in arrears with these financial institutions and there is a shortfall
between the estimated realisation values of equipment and the balances due by the
customers to these financial institutions, an assessment of any additional security is
done and a provision for any residual credit risk is made on a deal-by-deal basis.
8.2 The residual values of certain equipment sold to financial institutions have been
guaranteed by the group. The group's exposure is limited to the difference between
the group's guaranteed amount and the financial institution's predetermined estimate.
In the event of a residual value shortfall on this equipment, the group would be exposed
to a maximum amount of 41 952 8 469
Net contingent liability 41 952 8 469
The transactions described in note 8.2 above relate to sales transactions to financial
institutions which lease the equipment to customers for an agreed lease term. In certain
cases, the group has a remarketing agreement with the institution for the disposal of the
equipment returned after the lease term, but in all instances the group's risk is limited to
the residual value risk described above.
9 RELATED PARTY TRANSACTIONS
Information regarding significant transactions with related parties is presented below.
Transactions are carried out on an arms length basis.
Shareholders
John Deere Construction and Forestry Company
- sales 22 101 17 302
- purchases 594 738 392 769
- amounts owing to 136 858 57 020
- amounts owing by 5 144 3 664
Enterprises over which directors and shareholders are able to exercise
significant influence and/or in which directors and shareholders have
a beneficial interest
Ario Properties Limited
- property purchase commitment 51 537 -
10 FINANCIAL INSTRUMENTS
Categories of financial instruments included in the statement of financial position:
- Loans and receivables at amortised cost comprising interest-bearing long-term
receivables, trade and other receivables and cash and bank balances.
The directors consider that the carrying amount of loans and receivables at amortised
cost approximates their fair value.
- Financial liabilities at amortised cost comprising interest-bearing liabilities, trade
and other payables and bank overdrafts and borrowings on call.
The directors consider that the carrying amount of financial liabilities at amortised
cost approximates their fair value.
- Financial assets and liabilities carried at fair value through profit or loss include
forward foreign exchange contracts and fair value is determined based on a Level 2
fair value measurement. Level 2 fair value measurements are those derived from
inputs other than quoted prices. The fair value of these contracts is based on
observable forward exchange rates at year-end from an independent provider of
financial market data.
- Available for sale financial asset comprising an unlisted equity investment at cost
for which a reliable fair value could not be determined.
11 PRIOR PERIOD RESTATEMENT
Restatement relating to the calculation of the December 2016 headline earnings per share
During the JSE proactive monitoring process it was identified that the impairment loss recognised
in respect of the group's property, plant and equipment rental assets had not been added back
in the calculation of headline earnings per share in the December 2016 results.
This calculation error has been corrected and the impact on the group's December 2016
headline earnings per share is as follows:
As previously
reported Adjustment Restated
Headline earnings per share (basic) (cents)
Headline earnings per share is arrived at as follows:
Profit for the year attributable to owners of Bell Equipment Limited (R'000) 37 472 - 37 472
Net surplus on disposal of property, plant and equipment and intangible assets (R'000) (26) - (26)
Taxation effect of net surplus on disposal of property, plant and equipment and intangible
assets (R'000) 7 - 7
Impairment loss in respect of property, plant and equipment rental assets (R'000) - 8 262 8 262
Headline earnings (R'000) 37 453 8 262 45 715
Weighted average number of ordinary shares in issue during the period ('000) 95 159 95 159 95 159
Headline earnings per share (basic) (cents) 39 9 48
Headline earnings per share (diluted) (cents)
Headline earnings as recalculated above (R000) 37 453 8 262 45 715
Fully converted weighted average number of shares ('000) 95 289 95 289 95 289
Headline earnings per share (diluted) (cents) 39 9 48
12 SUBSEQUENT EVENTS
No fact or circumstance material to the appreciation of this report has occurred between
31 December 2017 and the date of this report.
13 INDEPENDENT AUDITOR'S REPORT
These summarised consolidated financial statements for the year ended 31 December 2017
have been audited by Deloitte & Touche, who expressed an unmodified opinion thereon.
The auditor also expressed an unmodified opinion on the consolidated financial statements
from which these summarised consolidated financial statements were derived.
A copy of the auditor's report on the summarised consolidated financial statements and of the
auditor's report on the consolidated financial statements are available for inspection at
the company's registered office, together with the consolidated financial statements.
The auditor's report does not necessarily report on all of the information contained in this
announcement. Shareholders are therefore advised that in order to obtain a full
understanding of the nature of the auditor's engagement they should obtain a copy of the
auditor's report together with the accompanying financial information from the issuer's
registered office.
Any reference to future financial performance, included in this announcement, has not been
reviewed or reported on by the company's auditors.
14 CASH DIVIDEND DECLARATION
Notice is hereby given that the directors have declared a gross final cash dividend
of 25 cents per ordinary share for the year ended 31 December 2017, payable
to ordinary shareholders in accordance with the timetable below.
The net final dividend is 20 cents per share for ordinary shareholders who are
not exempt from dividends tax. The dividend withholding tax rate is 20 per cent.
The dividend has been declared from income reserves.
The company's income tax reference number is 9022169206.
The issued share capital at the declaration date is 95 306 885 ordinary shares.
The salient dates for the dividend will be as follows:
Last day of trade to receive a dividend Tuesday, 3 April 2018
Shares commence trading "ex" dividend Wednesday, 4 April 2018
Record date Friday, 6 April 2018
Payment date Monday, 9 April 2018
Share certificates may not be dematerialised or rematerialised
between Wednesday, 4 April and Friday, 6 April 2018, both days inclusive.
By order of the board
14 March 2018
Directors
Non-executive
JR Barton* (Chairman), AJ Bell, DH Lawrance*,
HR van der Merwe*, ME Ramathe*, R Naidu*
*Independent
Appointed: R Naidu and ME Ramathe were appointed as directors
on 20 March 2017.
Retired: TO Tsukudu retired on 21 August 2017.
Resignation: B Harie resigned on 27 November 2017.
Executive
GW Bell (Group Chief Executive), A Goordeen (Alternate),
L Goosen (Chief Executive Designate), KJ van Haght (Group Finance Director)
Appointed: A Goordeen was appointed as alternate director
on 27 November 2017.
Company Secretary
D McIlrath
Registered Office
13 - 19 Carbonode Cell Road, Alton, Richards Bay,
3900
Transfer Secretaries
Link Market Services South Africa Proprietary Ltd,
19 Ameshoff Street, Johannesburg, 2001
Sponsor
Investec Bank Ltd
100 Grayston Drive, Sandown, Sandton, 2196
Release date: 16 March 2018
www.bellir.co.za
Date: 16/03/2018 02:58:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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