Wrap Text
Reviewed Provisional Consolidated Results for the year ended 31 March 2018
HOSKEN CONSOLIDATED INVESTMENTS LIMITED
Incorporated in the Republic of South Africa
Registration number: 1973/007111/06
Share code: HCI
ISIN: ZAE000003257
("HCI" or "the company" or "the group")
REVIEWED PROVISIONAL CONSOLIDATED RESULTS
for the year ended 31 March 2018
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Reviewed Audited
31 March 31 March
2018 2017
R'000 R'000
ASSETS
Non-current assets 61 902 246 61 845 515
Property, plant and equipment 24 913 188 25 127 835
Investment properties 9 587 532 8 510 174
Goodwill 4 700 758 4 785 158
Interest in associates and joint ventures 1 719 947 1 454 782
Other financial assets 1 324 206 1 275 663
Intangibles 18 691 786 19 605 686
Deferred taxation 487 352 379 252
Operating lease equalisation asset 96 628 80 393
Long-term receivables 380 849 626 572
Current assets 8 090 494 8 563 616
Inventories 939 711 955 733
Programme rights 870 674 866 244
Other financial assets 18 317 38 333
Trade and other receivables 2 478 554 2 541 697
Taxation 59 433 101 431
Bank balances and deposits 3 723 805 4 060 178
Disposal group assets held for sale 329 473 126 632
Total assets 70 322 213 70 535 763
EQUITY AND LIABILITIES
Equity 35 661 005 36 119 875
Equity attributable to equity holders of the parent 15 273 850 15 755 603
Non-controlling interest 20 387 155 20 364 272
Non-current liabilities 24 864 963 22 868 060
Deferred taxation 7 595 270 8 081 558
Long-term borrowings 16 275 305 13 999 138
Operating lease equalisation liability 242 094 254 740
Provisions 249 247 278 496
Other 503 047 254 128
Current liabilities 9 691 070 11 543 748
Trade and other payables 3 036 220 3 210 411
Current portion of borrowings 3 857 154 5 194 588
Taxation 171 331 124 115
Provisions 394 672 335 905
Bank overdrafts 2 033 702 2 396 036
Other 197 991 282 693
Disposal group liabilities held for sale 105 175 4 080
Total equity and liabilities 70 322 213 70 535 763
Net asset carrying value per share (cents) 17 785 17 897
CONDENSED CONSOLIDATED INCOME STATEMENT
Reviewed Audited
31 March 31 March
% 2018 2017*
change R'000 R'000
Revenue 14 960 540 14 310 035
Net gaming win 8 841 724 8 805 745
Income 3.0% 23 802 264 23 115 780
Expenses (17 516 637) (16 580 970)
EBITDA (3.8%) 6 285 627 6 534 810
Depreciation and amortisation (1 397 887) (1 377 634)
Operating profit 4 887 740 5 157 176
Investment income 304 490 266 792
Finance costs (1 797 766) (1 606 475)
Share of profits/(losses) of associates and joint ventures 102 967 (74 752)
Gain on bargain purchase - 81 764
Investment surplus 134 030 88 663
Fair value adjustments of investment properties (72 604) 941 655
Impairment reversals 40 653 -
Asset impairments (951 938) (25 134)
Fair value adjustments of financial instruments (23 690) -
Impairment of goodwill and investments (103 897) (33 159)
Profit before taxation (47.5%) 2 519 985 4 796 530
Taxation (441 132) (1 066 537)
Profit for the year from continuing operations 2 078 853 3 729 993
Discontinued operations (102 470) (455 516)
Profit for the year 1 976 383 3 274 477
Attributable to:
Equity holders of the parent 939 749 1 237 909
Non-controlling interest 1 036 634 2 036 568
1 976 383 3 274 477
* Restated
CONDENSED CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME
Reviewed Audited
31 March 31 March
2018 2017
R'000 R'000
Profit for the year 1 976 383 3 274 477
Other comprehensive income:
Items that may subsequently be reclassified to profit or loss
Foreign currency translation differences (192 785) (230 431)
Reclassification of foreign currency differences on disposal (1 448) (253 799)
Cash flow hedge reserve (54 906) (92 005)
Available-for-sale financial asset revaluations 3 401 (10 879)
Items that may not subsequently be reclassified to profit or loss
Revaluation of land and buildings 42 413 -
Actuarial gains on post-employment benefit liability 11 073 580
Total comprehensive income 1 784 131 2 687 943
Attributable to:
Equity holders of the parent 803 795 805 310
Non-controlling interest 980 336 1 882 633
1 784 131 2 687 943
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Reviewed Audited
31 March 31 March
2018 2017
R'000 R'000
Balance at the beginning of the year 36 119 875 32 928 450
Share capital and premium
Treasury shares released 32 179 18 571
Shares repurchased (377 261) (1 727 194)
Current operations
Total comprehensive income 1 784 131 2 687 943
Equity-settled share-based payments 13 509 13 084
Acquisition of subsidiaries 1 536 2 914 131
Disposal of subsidiaries 7 688 (319 422)
Effects of changes in holding (770 728) 478 583
Dividends (1 149 924) (874 271)
Balance at the end of the year 35 661 005 36 119 875
RECONCILIATION OF HEADLINE EARNINGS
Reviewed Audited
31 March 2018 31 March 2017
% Gross Net Gross Net
change R'000 R'000 R'000 R'000
Earnings attributable to equity holders
of the parent (24.1%) 939 749 1 237 909
Gain on bargain purchase - - (81 764) (35 463)
Impairment of goodwill 31 299 13 415 3 958 1 552
Loss on disposal of business assets - - 503 629 113 178
Gains on disposal of property (63 600) (49 354) - -
Losses on disposal of plant and equipment 2 910 2 450 5 660 1 575
Impairment of property, plant and equipment 111 124 47 024 7 655 1 788
Foreign currency translation reserve recycled (1 448) (686) (253 799) (216 292)
Losses from disposal/part disposal of subsidiary 13 704 7 633 405 186 391 839
Impairment of associates and joint arrangements 72 598 31 237 29 286 11 989
Reversal of impairment of assets (77) (46) - -
Profits on disposal of intangible assets (70 430) (55 370) - -
Impairment of intangible assets 831 028 286 374 8 281 2 639
Recycle of fair value reserves relating to
available-for-sale financial instruments - - (46 250) (20 060)
Profits on disposal of investment property - - (36 339) (7 973)
Fair value adjustment to investment property 72 604 (2 820) (941 655) (258 748)
Impairment of non-current assets held for sale 1 307 617 - -
Insurance claim for capital assets (30) (18) - -
Remeasurements included in equity-accounted
earnings of associates and joint arrangements (60 371) (56 663) 82 992 82 077
Headline profit (10.9%) 1 163 542 1 306 010
Basic earnings per share (cents)
Earnings (19.0%) 1 062.91 1 312.99
Continuing operations 1 151.47 1 593.47
Discontinued operations (88.56) (280.48)
Headline earnings (5.0%) 1 316.04 1 385.22
Continuing operations 1 388.88 1 357.29
Discontinued operations (72.84) 27.93
Weighted average number of shares in issue ('000) 88 412 94 282
Actual number of shares in issue at the end of
the year (net of treasury shares) ('000) 85 882 88 034
Diluted earnings per share (cents)
Earnings (18.7%) 1 056.23 1 298.47
Continuing operations 1 144.24 1 575.85
Discontinued operations (88.01) (277.38)
Headline earnings (4.5%) 1 307.76 1 369.90
Continuing operations 1 380.14 1 342.28
Discontinued operations (72.38) 27.62
Weighted average number of shares in issue ('000) 88 972 95 336
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
Reviewed Audited
31 March 31 March
2018 2017
R'000 R'000
Cash flows from operating activities 2 842 768 3 337 138
Cash generated by operations 6 795 004 7 275 484
Net finance costs (1 596 864) (1 429 302)
Changes in working capital (237 466) (531 924)
Taxation paid (968 276) (970 155)
Dividends paid (1 149 630) (1 006 965)
Cash flows from investing activities (2 773 743) (3 202 455)
Business combinations and disposals (109 923) 230 635
Investments acquired (425 581) (1 592 425)
Dividends received 116 156 63 387
Decrease in loans and receivables 69 944 359 869
Intangible assets
- Additions (59 744) (32 788)
- Disposals 85 004 -
Investment properties
- Additions (924 105) (617 768)
- Disposals 27 811 166 806
Property, plant and equipment
- Additions (1 681 145) (1 854 710)
- Disposals 127 840 74 539
Cash flows from financing activities (11 176) 1 060 825
Ordinary shares issued and treasury shares released 26 616 8 078
Ordinary shares repurchased (377 261) (438 070)
Other liabilities raised 908 5 756
Transactions with non-controlling shareholders (748 810) (930 813)
Net funding raised 1 087 371 2 415 874
Increase in cash and cash equivalents 57 849 1 195 508
Cash and cash equivalents
At the beginning of the year 1 673 363 520 432
Foreign exchange differences (9 713) (42 577)
At the end of the year 1 721 499 1 673 363
Bank balances and deposits 3 723 805 4 060 178
Bank overdrafts (2 033 702) (2 396 036)
Cash in disposal groups held for sale 31 396 9 221
Cash and cash equivalents 1 721 499 1 673 363
SEGMENTAL ANALYSIS
31 March 2018 31 March 2017*
Net gaming Net gaming
Revenue win Revenue win
R'000 R'000 R'000 R'000
Media and broadcasting 2 196 250 - 2 303 112 -
Gaming and hotels** 6 067 285 8 841 724 5 748 169 8 805 745
Transport 1 808 472 - 1 682 964 -
Properties 503 354 - 469 615 -
Mining 1 202 161 - 1 093 957 -
Branded products and manufacturing*** 3 158 125 - 3 010 187 -
Other 24 893 - 2 031 -
Total 14 960 540 8 841 724 14 310 035 8 805 745
EBITDA
31 March
2018 2017*
R'000 R'000
Media and broadcasting 195 876 428 075
Gaming and hotels** 5 057 644 5 068 557
Transport 462 135 447 851
Properties 246 175 225 234
Mining 311 517 244 452
Branded products and manufacturing*** 95 420 242 445
Other (83 140) (121 804)
Total 6 285 627 6 534 810
Profit before tax
31 March
2018 2017*
R'000 R'000
Media and broadcasting (21 278) 248 790
Gaming and hotels** 1 967 850 4 018 672
Transport 333 832 331 566
Properties 126 307 265 257
Mining 361 722 142 212
Branded products and manufacturing*** (596) 148 583
Other (247 852) (358 550)
Total 2 519 985 4 796 530
Headline earnings
31 March
2018 2017
R'000 R'000
Media and broadcasting 16 519 97 773
Gaming and hotels** 1 028 882 1 006 680
Information technology - 4 970
Transport 224 839 230 134
Beverages - 16 483
Properties 64 850 63 094
Mining 168 791 105 958
Branded products and manufacturing*** (19 949) 41 064
Other (320 390) (260 146)
Total 1 163 542 1 306 010
* Restated
** Non-casino gaming operations' results reclassified to the gaming and hotels segment in the
current and prior year
*** Vehicle component manufacture operations' results reclassified to the branded products and
manufacturing segment in the current and prior year
NOTES AND COMMENTARY
BASIS OF PREPARATION AND ACCOUNTING POLICIES
The results for the year ended 31 March 2018 have been prepared in accordance with International
Financial Reporting Standards ("IFRS"), the disclosure requirements of IAS 34, the SAICA Financial
Reporting Guides as issued by the Accounting Practices Committee, the requirements of the
South African Companies Act, 2008, and the Listings Requirements of the JSE Limited. The accounting
policies applied by the group in the preparation of these condensed consolidated financial statements
are consistent with those applied by the group in its consolidated financial statements for the year
ended 31 March 2017. As required by the JSE Limited Listings Requirements, the group reports
headline earnings in accordance with Circular 2/2015: Headline Earnings as issued by the
South African Institute of Chartered Accountants.
These financial statements were prepared under the supervision of the financial director,
Mr TG Govender, B.Compt (Hons).
DISCONTINUED OPERATIONS AND DISPOSAL GROUPS HELD FOR SALE
Media and broadcasting
The Board of eMedia Investments resolved to exit certain of its offshore and local non-core
operations during the financial year ended 31 March 2015. Further local non-core operations have
been reclassified to discontinued operations in the current year and the prior year results restated
for these. The results of these operations, which are included in the media and broadcasting
segment, are included in discontinued operations in the current and prior year. Assets of
R263 million (31 March 2017: R54 million) and liabilities of R105 million (31 March 2017:
R2 million) in disposal groups held for sale in the statement of financial position relate to
these non-core operations.
Branded products and manufacturing
Deneb Investments resolved to rationalise the operations of Bergriver Textiles, all but the
Gauteng-based business of Seartec and its branded sporting goods' international activities during
the year. The results of these operations, which are included in the branded products and
manufacturing segment, have been reclassified to discontinued operations in the current year and
the prior year results restated for these.
Property, plant and equipment to the value of R1 million is held as disposal group assets held
for sale.
Other
During March 2017 the group contracted to dispose of subsidiaries Jacaranda Royal Casino,
VSlots Lesotho and VSlots Swaziland. The disposals were concluded in June 2017 and the results of
these businesses included in discontinued operations in the current and prior years.
Gaming and hotels
The assets acquired by Tsogo Sun Holdings upon the acquisition of Hospitality Property Fund
included properties held for sale and are consequently included in disposal group assets held for
sale. The carrying value of these properties totalled R66 million at 31 March 2018.
The results of discontinued operations were as follows (R'million):
eMedia non-core Niveus gaming Deneb textiles, automation
operations assets and branded goods operations
Losses after tax (13) (8) (81)
Beverages
The group disposed of its interest in the business operations of La Concorde (previously
KWV Holdings), included in the beverages segment in the prior year. The results of these operations
were accordingly included in discontinued operations in the prior year.
Media and broadcasting and Other
The group's Australian based subsidiary, HCI Investments Australia, was disposed of during the
prior year and the results of its operations were accordingly included in discontinued operations
in the prior year.
Information technology
During the prior year the group disposed of its information technology operations (Syntell).
The results of these operations were included in discontinued operations in the prior year in the
income statement.
DISPOSALS
The group disposed of the following businesses during the current year:
- Jacaranda Royal Casino, VSlots Lesotho and VSlots Swaziland, effective June 2017, for an
aggregate consideration of R24 million and at an aggregate loss of R18 million.
- Lalela Music and etv Botswana, effective June and September 2017, respectively, for total
proceeds of R6 million, at an aggregate gain of R5 million.
BUSINESS COMBINATIONS
Branded products and manufacturing
Effective 31 December 2017 the group acquired 100% and 60% of the shares in New Just Fun Group and
Oops Global SA, respectively, for a total consideration of R100 million. Goodwill of R35 million
arose on acquisition, for which the purchase price allocation is provisional. New Just Fun Group
is a local distributor of toys from leading toy brands. Oops Global SA is a company based in
Switzerland, which specialises in the design, conception and sale of toys for children from birth
to the age of five.
NOTES AND COMMENTARY TO THE RESULTS
GROUP INCOME STATEMENT AND SEGMENTAL ANALYSIS
Revenue increased by 3.0% to R23 802 million
EBITDA decreased by 3.8% to R6 286 million
Profit before tax decreased by 47.5% to R2 520 million
Headline earnings decreased by 10.9% to R1 164 million
Headline earnings per share from continuing operations increased by 2.3% to 1 389 cents per share
Media and broadcasting
Revenue in respect of media and broadcasting includes only revenue from eMedia in the current and
prior years as revenue from Sunshine Coast Radio in Australia is included in discontinued operations
in the prior year. eMedia recorded a decrease in revenue of 5% against the backdrop of a 27%
decrease in licence revenue, for eNCA and the five channels provided to DSTV combined, due to the
implementation of the new licence agreement. A 5% increase in advertising revenue was recorded in
a difficult television advertising environment. Property and facility and content revenue decreased
by a combined 15%. EBITDA contributed decreased by 54% and is all attributable to eMedia.
R55 million was expensed in respect of the SES-5 satellite contract, which will not recur,
and R68 million in programming rights were written off. The decrease in EBITDA is further
attributable to the decrease in subscription revenue and a R24 million reduction in foreign
exchange gains on foreign creditors. Profit before tax decreased by R270 million following
impairments of goodwill and investments in associates of R95 million.
Gaming and hotels
The bingo and limited payout operations of Niveus Investments were acquired by Tsogo Sun effective
end of November 2017. Due to this amalgamation of the group's gaming operations, the results of
Niveus Investments' previously held bingo and limited payout operations have been incorporated
into those of Tsogo Sun in the gaming and hotels segment for the current and prior years.
Revenue in respect of gaming and hotels increased by 6%. Overall net gaming win was stagnant,
with casino gaming win decreasing by 2%. SA hotel revenue grew by 8%, aided by additional revenue
from Hospitality Property Fund following its inclusion for an additional five months in the current
year. Significant decreases in revenue were recorded in Montecasino (2.5%), and Silverstar (6.7%),
impacted by the opening of Time Square casino in Menlyn and the general weak trading environment.
EBITDA decreased by 0.2%, with reduced profits in casino gaming largely off-set by an increase in
SA hotels and alternative gaming. Profit before tax decreased by 51%. Included in the prior year
results were certain positive non-recurring items totalling R910 million and detailed in the prior
year results. In the current year the group recognised impairment charges on the carrying values of
casino licences and properties recognised upon the acquisition of Tsogo Sun in August 2014.
The casino licences were valued at R19 billion at that time, as compared to a carrying value of
R4 billion by Tsogo Sun. The weak economic environment in certain areas where the group's casino
licences are situated necessitated the reassessment of forecasts and the consequent valuations
performed at the time of the acquisition, resulting in these impairments. The total
impairment amount is R823 million in respect of casino licences in Mbombela (Emnotweni),
Emalahleni (The Ridge), East London (Hemingways), Welkom (Goldfields) and Newcastle (Blackrock).
The group further recognised R98 million in impairments of property, plant and equipment,
significantly in respect of items demolished at Suncoast casino and building shells at
The Ridge casino in Emalahleni. A downward revaluation of investment properties in the amount
of R191 million related to HPF investment properties. Contribution to headline earnings increased
by 2% to R1 029 million, including the Group's limited payout and bingo operations. This includes
an effective share of a deferred tax liability reversal following the sale of certain hotel
properties to HPF. Excluding the effect of this reversal, it results in a decrease in contribution
to headline earnings of approximately 11%.
Net gaming win from Vukani increased by 7% and other alternative gaming by 25% in the current year.
The number of active machines in Vukani has increased by 6% to 5 894 and average GGR per machine by
8% to R22 167. The number of electronic bingo terminals increased by 15% to 2 900 during the period.
Transport
Golden Arrow Bus Services ("GABS"), part of the newly established and recently listed Hosken
Passenger Logistics and Rail Group ("HPL&R"), managed to increase revenue by 8%, aided by a subsidy
increase and the Metro Rail inefficiencies experienced during January to March of 2018. EBITDA
increased by 3% only, significantly impacted by higher bus driver overtime wage rates. Certain provisions
in respect of staff remuneration were reversed in the current year, off-setting the higher wages.
Headline earnings in respect of GABS decreased by 2%, following the effect of the 27% non-controlling
interest arising on the restructure of the group's interest in GABS.
Properties
Properties' revenue increased by 7% due to new development revenue from Whale Coast Village Mall,
The Palms, the Makro PE premises and Shell House, with annual escalations in the rest of the
portfolio off-set slightly by a reduction in revenue in the Gallagher Estate exhibition business.
EBITDA increased by 9%, in line with the increase in revenue. EBITDA gains were somewhat off-set
by an increase in finance charges of R23 million, originating from increased facilities in respect
of the Monte Circle precinct, The Palms and The Point. Headline earnings increased by a reduced
margin of 3% due to the decrease in earnings in the Gallagher Estate exhibition business and
excludes fair value adjustments on investment properties of R28 million, as included in profit
before tax.
Mining
Increased revenue was recorded at the Palesa (1%) and Mbali (24%) Collieries. Sales volumes at the
Palesa Colliery decreased by 1% following an extended closure in April due to a fatality.
In addition, mining contractor inefficiencies resulted in a reduction of 6% in run of mine volumes.
Management have addressed these inefficiencies subsequent to the reporting date. Sales volumes at
the Mbali Colliery increased by 11%. In addition, export sales prices achieved at the Mbali Colliery
were an average of 20% higher than the prior year. EBITDA increased by 27%, significantly as a
result of increased export sales prices and an improvement in gross profit margins. R131 million of
the increase in profit before tax is attributable to the profit on disposal of the Nokuhle mining
rights and associated land and a decrease in depreciation following the full depreciation of the
box cut at the Mbali Colliery in the prior year.
Branded products and manufacturing
Branded products and manufacturing increased revenue by 5%, with growth attributable to their
industrials and branded products divisions. Revenue in Formex increased by 25% following additional
tooling sales and new supply contracts in its pressings division. EBITDA decreased by 61%.
Most business units faced reduced gross margins. Unplanned clearances in the branded products
division followed disappointing trade ahead of the holiday season. Headline earnings includes the
group's share of discontinued operations' losses of R81 million and its share of deferred tax
income of R81 million. Impairments of R13 million are included in discontinued operations' losses
and consequently excluded for headline earnings.
Other
EBITDA losses from other decreased by 32%, significantly as a result of a share-based payment charge
in respect of cash-settled options to directors of Niveus in the prior year not recurring and
rentals received by La Concorde (previously KWV Holdings) following the sale of its operational
assets in the prior year. Losses before tax decreased compared to the prior year. The decrease in
losses is significantly attributable to a decrease of R152 million in equity-accounted losses (to a
profit of R29 million) from the group's 46% interest in Impact Oil and Gas, which entity's equity-
accounted earnings in the current year includes an effective R54 million profit on part disposal of
an exploration licence. Interest at head office increased by 5%. Included in the current year's
losses is R35 million in equity-accounted profits from associates, head office finance costs, and
head office and other overheads of the company, Niveus Investments and La Concorde. Headline earnings
included R20 million profit from HCI Australia (non-media) and R40 million investment income for the
Ithuba funding arrangements in the prior year, both of which are not included in the current year.
Notable items on the consolidated income statement include:
Finance costs increased following an increase in Tsogo Sun finance costs of R160 million and
HCI Properties finance costs of R23 million.
Investment surpluses recognised were in respect of the mining rights and land of the Nokuhle
property sold by HCI Coal.
Fair value adjustments of investment properties consist of R(191) million in respect of HPF
properties, R75 million in respect of HCI Properties and other retail and office buildings,
and R44 million recognised by Deneb Investments on industrial properties.
Impairment reversals of R41 million are in respect of working capital loans advanced to associate
and joint venture investments of Tsogo Sun.
Asset impairments consist significantly of R823 million in respect of casino licences and
R98 million in respect of casino and hotel properties, plant and equipment.
Impairment of goodwill and investments consist significantly of goodwill and investments in
associates impaired by eMedia.
Headline earnings per share decreased by 5.0% with gross headline earnings decreasing 10.9%.
The weighted average number of shares in issue in the prior year of 94 282 000 was reduced to
88 412 000 in the current year due to 16 million shares being repurchased during August 2016.
The 2.7 million share repurchase transacted in the current year was only implemented in March 2018.
GROUP STATEMENT OF FINANCIAL POSITION AND CASH FLOW
Group long-term borrowings at 31 March 2018 comprise central borrowings of R784 million, central
investment property-related borrowings of R1 782 million, borrowings in Tsogo Sun of R12 667 million
and the remainder in other operating subsidiaries. Included in the current portion of borrowings is
R1 666 million central borrowings and R941 million in short-term borrowings in Tsogo Sun.
Current central borrowings of R1 500 million is expected to be refinanced into longer-term borrowings
prior to the end of the new financial year. Bank overdraft facilities include R1 707 million in
Tsogo Sun.
Included in cash flows from investing activities is net expenditure on investment properties of
R896 million and R1 553 million on property, plant and equipment. Included in cash flows from
financing activities is net funding raised during the year of R1 087 million. Transactions with
non-controlling shareholders totalling R749 million include proceeds received in the rights issue
concluded by HPF during the year and payments made by Tsogo Sun to non-controlling shareholders in
respect of the bingo and limited payout gaming operations of Niveus Investments.
Shareholders are referred to the individually published results of eMedia Holdings Limited,
Tsogo Sun Holdings Limited, Niveus Investments Limited, Hosken Passenger Logistics and Rail Limited
and Deneb Investments Limited for further commentary on the media and broadcasting, gaming and
hotels, transport, and branded products and manufacturing operations.
AUDITOR'S REVIEW
These condensed consolidated financial statements for the year ended 31 March 2018 have been reviewed
by Grant Thornton Johannesburg Partnership, who expressed an unmodified review conclusion. A copy of
the auditor's review report is available for inspection at the company's registered office together
with the financial statements identified in the auditor's report.
The auditor's report does not necessarily report on all of the information contained in this
announcement/financial results. 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.
CHANGES IN DIRECTORATE
There were no changes in directorate during the year under review.
DIVIDEND TO SHAREHOLDERS
The directors of HCI have resolved to declare a final ordinary dividend number 57 of 190 cents
(gross) per HCI share for the year ended 31 March 2018 from income reserves. The salient dates for
the payment of the dividend are as follows:
Last day to trade cum dividend Tuesday, 19 June 2018
Commence trading ex dividend Wednesday, 20 June 2018
Record date Friday, 22 June 2018
Payment date Monday, 25 June 2018
No share certificates may be dematerialised or rematerialised between Wednesday, 20 June 2018 and
Friday, 22 June 2018, both dates inclusive.
In terms of legislation applicable to Dividends Tax ("DT") the following additional information
is disclosed:
- The local DT rate is 20%.
- The number of ordinary shares in issue at the date of this declaration is 92 814 648.
- The DT amounts to 38 cents per share.
- The net local dividend amount is 152 cents per share for all shareholders who are not exempt
from the DT.
- Hosken Consolidated Investments Limited's income tax reference number is 9050/177/71/7.
For and on behalf of the board of directors
JA Copelyn TG Govender
Chief Executive Officer Financial Director
Cape Town
23 May 2018
Directors:
JA Copelyn (Chief Executive Officer), TG Govender (Financial Director), Y Shaik, MSI Gani*,
MF Magugu*, NM Mhlangu**, ML Molefi*, VE Mphande* (Chairman), JG Ngcobo*, R Watson*
* Independent non-executive
** Non-executive
Website address:
www.hci.co.za
Company secretary:
HCI Managerial Services Proprietary Limited
Registered office:
Suite 801, 76 Regent Road, Sea Point, Cape Town, 8005
PO Box 5251, Cape Town, 8000
Telephone: 021 481 7560
Telefax: 021 434 1539
Auditors:
Grant Thornton Johannesburg Partnership
@Grant Thornton, Wanderers Office Park, 52 Corlett Drive, Illovo, 2196
Private Bag X10046, Sandton, 2146
Transfer secretaries:
Computershare Investor Services Proprietary Limited
Rosebank Towers, 15 Biermann Avenue, Rosebank, 2196
PO Box 61051, Marshalltown, 2107
Sponsor:
Investec Bank Limited
100 Grayston Drive, Sandton, Sandown, 2196
Date: 23/05/2018 05:41:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
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