Wrap Text
Unaudited Interim Results for the six months ended 31 December 2018
SUPER GROUP LIMITED
(Incorporated in the Republic of South Africa)
Registration number 1943/016107/06
Share code SPG
ISIN ZAE000161832
("Super Group" or "the Group" or "the company")
UNAUDITED INTERIM RESULTS for the six months ended 31 December 2018
RESULTS AT A GLANCE
For the six months ended 31 December 2018
8%
up
R19.4 billion
Revenue
13%
Up
R1.3 billion
Operating profit
15%
Up
176 cents
EPS
12%
Up
174 cents
HEPS
6%
Up
R1.8 billion
Operating cash flow
7%
Up
R28.91
NAV per share
Since 30 June 2018
INTRODUCTION
Super Group reported an excellent set of results for the six months ended 31 December 2018 given the challenging economic
climate and political uncertainties in the various countries in which the Group operates. The results were mainly attributable to
the ongoing strong performance by the commodities businesses within Supply Chain Africa, as well as Digistics on the back of
a number of new Quick Service Restaurant (QSR) contracts.
The mining commodity industry in Africa experienced another exceptional period with good volume growth.
With the exception of Digistics, the consumer businesses within Supply Chain Africa were adversely
impacted by the low growth in the South African economy. Supply Chain Europe's business was severely impacted by
the requirement for the European Original Equipment Manufacturers (OEMs) to submit all their vehicles to the Worldwide
Harmonised Light Vehicle Test Procedure (WLTP) from September 2018, as a consequence of the knock-on effect of the historic
diesel controversies and the implementation of the Diesel Euro 6 Emissions Standard.
Fleet Africa performed well on the back of increased ad hoc volumes on existing contracts. SG Fleet delivered a
disappointing set of results mainly due to a lacklustre novated lease market as a result of the decline in new vehicle sales.
Dealerships SA again outperformed the National Association of Automobile Manufacturers of South Africa (NAAMSA) statistics.
The new Mercedes-Benz agency model had a significant impact on sales across South Africa coupled with the overall
decline in luxury vehicle sales. Dealerships UK's Ford and Kia dealerships gained market share despite the uncertainty around
Brexit and overall decline in new vehicle sales in the United Kingdom (UK).
Super Group reported revenue and operating profit from its non-South African businesses of 49% (December 2017: 46%) and
50% (December 2017: 62%), respectively. The average Rand exchange rate for the period weakened against the Pound Sterling
(GBP), US Dollar (USD) and the Euro (EUR) but strengthened against the Australian Dollar (AUD).
Super Group listed its SPG004 senior unsecured notes, in terms of the company's Domestic Medium-Term Note (DMTN)
Programme dated 22 October 2013, on 27 September 2018 to the value of R450 million.
During the six months ended 31 December 2018, Super Group's effective shareholding in SG Fleet increased to 57.5% from 57.0%
at 30 June 2018. The increase in the Group's shareholding in SG Fleet resulted from Super Group taking up 3 958 732 shares in
the Dividend Reinvestment Plan that SG Fleet had (which was at $3.69 per share, a total of $14.6 million), and then the Group
acquired an additional 974 shares for $2,443. The Group acquired an 80.0% interest in Cargo Works, a specialist overnight cargo
business, for R49.5 million effective 2 July 2018, and the results of this business are included in the Supply Chain Africa business
segment. Dealerships SA acquired Rola Motors effective 1 October 2018 for R1.1 million.
Effective 3 July 2018, Super Group announced that its long-term national scale rating was upgraded by S&P to zaAAA from zaAA
and its short-term national scale rating was maintained at zaA1+.
FINANCIAL PERFORMANCE
Group revenue increased by 8.2% to R19.4 billion (December 2017: R18.0 billion) primarily due to the significant volume increase
in the Supply Chain Africa's commodities businesses, SG Coal, Legend and African Logistics as well as its QSR logistics
business, Digistics.
Operating profit before capital items income of R14.2 million (December 2017: R6.4 million capital items expense), increased by
11.1% to R1 284.2 million from R1 155.7 million in the comparable prior period. The capital items income mainly relates to the
sale of Supply Chain Africa trucks. Operating profit increased by 13.0% to R1 298.4 million (December 2017: R1 149.2 million),
resulting in the Group's operating profit margin improving from 6.4% to 6.7%.
Net finance costs increased by 6.3% to R179.5 million (December 2017: R168.9 million). The average interest rate paid on
borrowings was 6.0% (December 2017: 5.7%) and the average interest rate earned on cash was 3.0% (December 2017: 3.0%).
Profit before tax is R1 118.8 million (December 2017: R980.3 million), an increase of 14.1%.
Earnings per share (EPS) and headline earnings per share (HEPS) increased by 15.2% to 176.3 cents (December 2017: 152.9
cents) and 12.1% to 173.8 cents (December 2017: 155.1 cents), respectively.
Total assets increased by 4.0% for the six months ended 31 December 2018 to R29.7 billion from R28.5 billion at 30 June 2018.
The Group's return on net operating assets (RNOA), after tax, is 12.3% (December 2017: 12.0%) with the Group's weighted
average cost of capital (WACC) being 9.5% (December 2017: 8.6%).
Super Group's net debt position at 31 December 2018 is R3 062.0 million, an increase of R208.1 million, resulting in the net debt
to equity ratio being 25.2% compared to 25.1% at 30 June 2018. The net asset value per share increased by 6.9% from R27.05
at 30 June 2018 to R28.91 at 31 December 2018.
Operating cash flow increased by 5.9% for the period to R1 787.3 million (December 2017: R1 688.1 million). Super Group
invested R1.0 billion in net additions and acquisitions to ensure future growth for the Group.
DIVISIONAL REVIEW
SUPPLY CHAIN
SUPPLY CHAIN AFRICA
Six months ended Six months ended Year ended
Change 31 December 31 December 30 June
R'000 % 2018 2017 2018
Revenue 27.2 5 923 226 4 656 626 9 484 107
EBITA 74.1 479 092 275 170 681 659
EBITA margin 8.1% 5.9% 7.2%
Operating profit 78.9 468 658 261 950 654 618
Operating profit margin 7.9% 5.6% 6.9%
Profit before tax 81.2 437 523 241 403 607 645
EBITA: Earnings before interest, tax and amortisation of purchase price allocation intangibles.
Supply Chain Africa's results are attributable to the excellent performances by the commodities businesses, namely SG Coal,
Legend and African Logistics, as well as Digistics, having secured meaningful new QSR contracts. The consumer-facing and
other supply chain operations delivered disappointing results given the severe trade and economic headwinds faced by these
industries in Southern Africa.
SUPPLY CHAIN EUROPE
Six months ended Six months ended Year ended
Change 31 December 31 December 30 June
R'000 % 2018 2017 2018
Revenue (6.0) 1 512 015 1 608 404 3 103 273
EBITA (28.5) 76 215 106 639 214 758
EBITA margin 5.0% 6.6% 6.9%
Operating profit (46.6) 33 396 62 579 134 479
Operating margin 2.2% 3.9% 4.3%
Profit before tax (71.2) 10 629 36 893 84 918
Supply Chain Europe's results of SG inTime, a Time-critical Delivery Services company, including Ader, were negatively impacted
by the introduction of the WLTP regulations. All new passenger cars and light commercial vehicles, across 28 European Union
(EU) countries, have to submit these vehicles for the WLTP test effective September 2018, which resulted in severe backlogs
and declines in vehicle production volumes. The WLTP as well as the implementation of the Diesel Euro 6 Emissions Standard,
all contributed to the sharp fall in automotive parts volumes. The number of transports done by SG inTime declined by 19% and
the number of kilometres driven declined by 18% for the period under review.
In addition, the diesel escalation clauses have largely mitigated the impact of the diesel price increases in the previous period,
resulting in SG inTime achieving a higher gross profit margin. Unfortunately, the reduction in volumes has resulted in the operating
margin declining. The shortage of subcontractors in Germany continues to create cost pressures.
FLEET SOLUTIONS
FLEET AFRICA
Six months ended Six months ended Year ended
Change 31 December 31 December 30 June
R'000 % 2018 2017 2018
Revenue (0.3) 314 697 315 552 621 300
Operating profit 2.9 63 176 61 425 116 997
Operating profit margin 20.1% 19.5% 18.8%
Profit before tax 10.3 60 186 54 570 108 146
Fleet Africa delivered a pleasing set of results despite the loss of the Polokwane FML contract, where a decision was taken to
insource the fleet management. Fleet Africa managed to secure additional ad hoc volumes on existing contracts which largely
offset the loss of the above contract and contributed to the higher operating profit margin reported for the period under review.
SG FLEET
Six months ended Six months ended Year ended
Change 31 December 31 December 30 June
R'000 % 2018 2017 2018
Revenue 59.0 2 543 009 1 599 657 3 163 135
EBITA (7.2) 488 862 526 873 1 073 587
EBITA margin 19.2% 32.9% 33.9%
Operating profit (7.7) 455 204 493 047 1 008 781
Operating profit margin 17.9% 30.8% 31.9%
Profit before tax (8.8) 409 337 448 787 923 554
SG Fleet's results, in AUD-terms, were negatively impacted by a contraction in economic growth which is placing the consumer
under pressure. The economy has been affected by declining GDP figures because of a slowdown in consumer spending, a
slowing housing market, tightening of money lending and the severe drought currently being experienced. As a result, the overall
six-month 11.5% decline in private new vehicle sales volumes in Australia also had a significant impact on the results.
Due to the change in revenue recognition on vehicle disposals (IFRS 15), there is a slight disparity in the figures reported by
SG Fleet and Super Group. The comparable operating profit margin decreased from 18.6% to 17.9% due to the weakness in the
novated lease market.
For the full set of interim results refer to www.sgfleet.com
DEALERSHIPS
DEALERSHIPS SA
Six months ended Six months ended Year ended
Change 31 December 31 December 30 June
R'000 % 2018 2017 2018
Revenue (17.2) 4 155 880 5 016 721 9 356 603
Operating profit (3.9) 160 503 167 007 322 621
Operating profit margin 3.9% 3.3% 3.4%
Profit before tax (2.9) 116 524 120 029 231 004
Dealerships SA reported a pleasing set of results notwithstanding the continued subdued trading environment and again
outperformed the NAAMSA market statistics. As indicated at year-end, the change in Mercedes-Benz's business model
and an overall decline in Luxury segment volumes has impacted revenue and profitability of these dealerships for the period
under review.
Dealerships SA acquired the Rola Motors' Mercedes-Benz and Fuso Commercial Vehicle dealership in Somerset West in the
Western Cape effective 1 October 2018 and now exclusively represents the two brands in the greater Cape Town area. In addition
to the above, the division closed the Fiat Chrysler Alfa dealership in Century City at the end of December 2018.
Dealerships delivered a marginal growth of 0.1% in new vehicle sales volumes (excluding dealerships closed) and a decline of
13.0% in used vehicle volumes for the period under review. The new vehicle volumes outperformed the NAAMSA dealer market,
which reported a decrease of 2.5% in new vehicle sales for the six months ended 31 December 2018. The Parts and Services
business continued to perform well and grew its contribution to overall dealership profitability. The main reason for the increase
in operating profit margin from 3.3% to 3.9% was a result of the elimination of gross revenue of R518 million on the Mercedes-
Benz agency model.
DEALERSHIPS UK
Six months ended Six months ended Year ended
Change 31 December 31 December 30 June
R'000 % 2018 2017 2018
Revenue 4.6 4 985 102 4 764 855 9 925 263
EBITA 4.2 118 731 113 971 232 472
EBITA margin 2.4% 2.4% 2.3%
Operating profit 4.2 115 979 111 321 227 282
Operating profit margin 2.3% 2.3% 2.3%
Profit before tax 5.5 67 213 63 691 132 862
Dealerships UK reported a solid set of results despite a challenging economic environment and the uncertainty regarding
Britain's exit from the EU. While the overall UK new vehicle market reported a decline of 7.5% in volumes over the prior period,
Ford and Kia managed to increase their market share from 11.3% to 11.7% and 3.9% to 4.3%, respectively, in the six months
under review.
The new vehicle sales department in Dealerships UK reported a decline of 9.9% in volumes and 9.4% in contribution largely
attributable to a decline in privilege business. Pleasingly these businesses reported a significant improvement in used vehicle
contribution despite a decline of 6.5% in used vehicle volumes.
The parts and service department continued to perform well and in a similar vein to South Africa, grew its contribution to overall
dealership profitability mainly on the back of very positive growth in parts revenue and contribution.
SERVICES
The Services segment includes the Corporate and the Mauritius operations. The Services segment performed well on the back
of the solid performance by Treasury together with other recoveries.
PROSPECTS
Super Group remains resolute in its strategy of being an innovative, integrated mobility solutions company. Technology and service
efficiencies remain integral to growing and expanding the Group's core businesses both organically and through acquisitions.
Supply Chain Africa is expecting to continue to benefit from the positive commodities cycle with the consumer-facing and
other supply chain businesses remaining under severe pressure due to declining consumer spending and the uncertain political
environment leading up to the National Election. Fleet Africa, despite the depressed FML tender environment, is well positioned
in terms of its Broad-based Black Economic Empowerment (B-BBEE) credentials. The ongoing impact of corruption in the public
sector, and state-owned enterprises being under severe financial strain are concerns faced by this business, however, this
business is aspirational of growth in an anti-corruptive environment. Dealerships SA's performance should be adequate, despite
the negative NAAMSA trends.
Germany, SG inTime's home-base, is dealing with several issues, including the WTLP and the Diesel Euro 6 Emissions Standard,
with all new vehicles in the EU having to fulfil the Euro 6 threshold values for nitrogen oxide and particle emissions by September
2019. These regulations are creating a short supply of new vehicles and together with the protracted Brexit negotiations,
uncertainties remain significant in the immediate future.
SG Fleet is expecting an improvement in the second half in the line with the previous year.
Dealerships UK sees the main threat to the business is the uncertainty surrounding a possible economic downturn in the
near future as a result of Brexit. The downturn in the UK economy could also see a further shift away from new to used vehicle
sales without a Brexit deal.
Despite the lack of business confidence in South Africa and slowing global economic growth, together with the myriad of
regulatory changes faced by the majority of Super Group's offshore businesses, a reasonable financial performance is expected
for the remainder of the year mainly on the back of a continuing strong African commodities environment and new business in
the South African consumer-facing businesses.
No interim dividend for the six months ended 31 December 2018 has been declared.
On behalf of the Board
P Vallet P Mountford
Chairman of the company Chief Executive Officer
Sandton
25 February 2019
The Unaudited Interim Results and presentation to the investor community will be available on the Group's website after 16:00 on
Monday, 25 February 2019. Copies of the full announcement are available on request from Nigel Redford, Company Secretary,
nigel.redford@supergrp.com. The Group's website is www.supergroup.co.za.
Any forward-looking information is the responsibility of the directors and has not been reviewed or reported on by the company's
External Auditor.
BASIS OF PREPARATION AND ACCOUNTING POLICIES
The Condensed Consolidated Financial Statements for the period ended 31 December 2018 were prepared in accordance with
the requirements of the JSE Limited (JSE) Listings Requirements for preliminary reports and the requirements of the Companies
Act of South Africa. The JSE Listings Requirements require preliminary reports to be prepared in accordance with the framework
concepts and the measurement and recognition requirements of International Financial Reporting Standards (IFRS) and the
SAICA Financial Reporting Guides as issued by the Accounting Practices Committee and Financial Pronouncements as issued
by the Financial Reporting Standards Council and to also, as a minimum, contain the information required by IAS 34 - Interim
Financial Reporting.
The accounting policies applied in the preparation of the Condensed Consolidated Financial Statements are in terms of IFRS and
are consistent with those applied in the previous Consolidated Financial Statements. The definitions of capital items, EBITA and
related adjustments are included in the accounting policies in the June 2018 Annual Financial Statements. The new standards
IFRS 9 - Financial instruments and IFRS 15 - Revenue became effective for the first time in Super Group's financial year that
commenced 1 July 2018.
IFRS 15 provides a single comprehensive model for revenue recognition based on the satisfaction of the performance obligations
and additional disclosures in respect of revenue. IFRS 9 replaces the "incurred loss" model in IAS 39 with a forward-looking
"expected credit loss" (ECL) model. Impairment is measured using a 12-month ECL method unless the credit risk on a financial
instrument has increased significantly since initial recognition in which case the lifetime ECL method is adopted.
These new standards were adopted using the cumulative effect method resulting in the retrospective adjustment of R10 236 000
being recognised directly in equity with no restatement of the comparative period presented. The only material impact in the
current period was an increase in Revenue of R972 441 000 in the SG Fleet segment with no material impact on Gross Profit,
Operating Profit or Profit Before Tax. This significant impact is due to the requirement to gross up the end of lease income as
revenue and show the corresponding expense as end of lease cost of sale.
If the prior year results were restated, an increase in revenue of R1 028 450 000 would be reflected on the Statement of
Comprehensive Income with no material impact on Gross Profit, Operating Profit or Profit Before tax. The effect on the Statement
of Financial Position as at 30 June 2018 would be an immaterial decrease in prepayments, deferred tax and contract liabilities.
Standards effective for reporting periods starting on or after 1 July 2019:
- IFRS 16 - Leases
- IFRIC 23 - Uncertainty over Income Tax Treatments
IFRS 16 - Leases replaces IAS 17 - Leases, introduced changes to lessee accounting, in particular, the requirement to recognise
leases currently classified as operating leases on balance sheet. The standard requires a lessee to recognise a right-of-use asset,
representing its rights to use the underlying lease asset, and a lease liability representing its obligation to make lease payments,
with certain exceptions for short-term leases or leases of low-value assets, on the Condensed Consolidated Statement of
Financial Position. The initial assessment indicates that the present value of operating rental commitments disclosed in note 9 of
the salient features to be recorded as a financial liability with a corresponding capitalised non-current asset on the Condensed
Consolidated Statement of Financial Position. The related amortised finance cost and non-current asset depreciation will be
recorded in the Condensed Consolidated Statement of Comprehensive Income, replacing the operating lease expenses currently
recognised. The Group plans to adopt IFRS 16 - Leases on 1 July 2019, using the modified retrospective approach. Therefore,
the cumulative effect of adopting this standard will be recognised as an adjustment to retained earnings with no restatement of
the comparable period presented.
The Board's initial view on the other standard not yet effective is that the impact is not expected to be material.
The Condensed Consolidated Financial Statements are presented in Rand, which is the company's functional currency and the
Group's presentation currency, rounded to the nearest thousand.
These results have been compiled under the supervision of the Chief Financial Officer, Colin Brown, CA(SA), BCompt (Hons),
MBL.
Condensed Consolidated
Statement of Comprehensive Income
Six-month Six-month
period ended period ended Year ended
31 December 31 December 30 June
2018 2017 2018
Unaudited Unaudited Audited
R'000 R'000 R'000
Revenue 19 441 603 17 966 337 35 662 856
Depreciation and amortisation (excluding amortisation of Purchase
Price Allocation (PPA) intangibles) (454 366) (424 066) (857 232)
Operating expenditure - excluding capital items (17 613 375) (16 292 845) (32 154 348)
Operating expenditure - capital items 14 156 (6 432) (38 450)
EBITA 1 388 018 1 242 994 2 612 826
Amortisation of PPA intangibles (89 663) (93 756) (177 316)
Operating profit 1 298 355 1 149 238 2 435 510
Finance costs (257 175) (230 410) (467 196)
Interest received and income from equity-accounted investees 77 668 61 516 136 727
Profit before income tax 1 118 848 980 344 2 105 041
Income tax expense (320 101) (271 595) (612 848)
Profit for the period 798 747 708 749 1 492 193
Profit for the period attributable to:
Non-controlling interests (NCI) 160 050 165 100 340 612
Equity holders of Super Group 638 697 543 649 1 151 581
798 747 708 749 1 492 193
Other comprehensive income (OCI)
Item which will be reclassified to profit or loss: 68 206 (159 428) 231 438
Translation adjustment 70 568 (160 403) 226 711
Effective portion of hedge (3 692) 1 342 6 171
Tax effect of effective portion of hedge 1 330 (367) (1 444)
Items which will not be reclassified to profit or loss: - - 59 299
Revaluation of land and buildings - - 73 987
Tax effect of revaluation of land and buildings - - (14 688)
Other comprehensive income for the period 68 206 (159 428) 290 737
Total comprehensive income for the period 866 953 549 321 1 782 930
Total comprehensive income for the period attributable to:
Non-controlling interests 165 999 129 905 391 109
Equity holders of Super Group 700 954 419 416 1 391 821
866 953 549 321 1 782 930
RECONCILIATION OF HEADLINE EARNINGS
Profit attributable to equity holders of Super Group 638 697 543 649 1 151 581
Capital items after tax and NCI (refer to note 8 in salient features) (8 887) 7 489 41 142
Headline earnings for the period 629 810 551 138 1 192 723
Earnings per share (cents)
Basic 176.3 152.9 320.8
Diluted 175.9 152.4 319.9
Headline earnings per share (cents)
Basic 173.8 155.1 332.2
Diluted 173.5 154.5 331.3
Condensed Consolidated
Statement of Financial Position
31 December 31 December 30 June
2018 2017 2018
Unaudited Unaudited Audited
R'000 R'000 R'000
ASSETS
Non-current assets 16 532 947 15 093 989 15 923 564
Property, plant and equipment 5 708 270 4 654 858 5 152 668
Investment property 151 000 149 800 151 000
Full maintenance lease assets 1 577 518 1 508 157 1 563 248
Intangible assets 1 303 571 1 311 135 1 327 523
Goodwill 7 490 107 7 114 078 7 434 221
Investments and other non-current assets 289 818 209 457 271 805
Deferred tax assets 12 663 146 504 23 099
Current assets 13 169 255 10 975 040 12 623 598
Inventories 3 840 749 3 796 476 4 179 607
Trade receivables 3 849 963 3 273 604 3 710 572
Sundry receivables 1 805 383 1 321 406 1 382 149
Cash and cash equivalents 3 673 160 2 583 554 3 351 270
Total assets 29 702 202 26 069 029 28 547 162
EQUITY AND LIABILITIES
Capital and reserves
Capital and reserves attributable to equity holders of Super Group 10 478 918 9 050 340 9 798 236
Non-controlling interests 1 671 585 1 447 124 1 578 889
Total equity 12 150 503 10 497 464 11 377 125
Non-current liabilities 6 596 077 5 756 941 6 245 750
Fund reserves 485 787 511 202 497 876
Non-controlling interest put options and other non-current liabilities 217 526 245 516 317 466
Full maintenance lease borrowings 312 324 543 270 512 935
Interest-bearing borrowings 4 923 927 3 737 897 4 310 029
Provisions 72 735 69 000 65 496
Deferred tax liabilities 583 778 650 056 541 948
Current liabilities 10 955 622 9 814 624 10 924 287
Non-controlling interest put option 39 553 - -
Full maintenance lease borrowings 524 140 328 017 338 460
Interest-bearing borrowings 974 772 1 296 081 1 043 781
Trade and other payables 9 083 689 7 913 470 9 080 580
Income tax payable 43 266 40 717 92 911
Provisions 290 202 236 339 368 555
Total equity and liabilities 29 702 202 26 069 029 28 547 162
Condensed Consolidated
Statement of Cash Flows
Six-month Six-month
period ended period ended Year ended
31 December 31 December 30 June
2018 2017 2018
Unaudited Unaudited Audited
R'000 R'000 R'000
Operating cash flow 1 787 299 1 688 143 3 776 728
Working capital outflow (293 190) (241 267) (109 599)
Cash generated from operations 1 494 109 1 446 876 3 667 129
Finance costs paid (253 819) (212 441) (465 894)
Interest received 76 899 62 140 132 990
Income tax paid (331 104) (286 680) (612 330)
Dividends paid to non-controlling interests (122 741) (128 679) (237 081)
Net cash generated from operating activities 863 344 881 216 2 484 814
Cash flows from investing activities
Additions to property, plant and equipment (833 429) (579 660) (1 178 701)
Additions to full maintenance lease assets (342 441) (233 087) (569 757)
Additions to intangible assets (50 818) (30 459) (74 645)
Proceeds on disposal of property, plant and equipment 97 991 101 550 223 936
Proceeds on disposal of full maintenance lease assets 162 671 134 298 289 039
Long-term receivable loan granted (15 000) (2 748) (57 578)
Long-term receivable loan repaid 2 193 - 2 181
Net acquisition of businesses (net of cash acquired) (41 673) (459 776) (455 901)
Other investing activities (2 547) - (477)
Net cash outflow from investing activities (1 023 053) (1 069 882) (1 821 903)
Cash flows from financing activities
Share issues net of expenses - 497 150 497 150
Cash outflow on share movements (178) (1 050) (34 029)
Change in ownership in subsidiaries 3 245 (540 005) (751 439)
Interest-bearing borrowings raised 2 216 945 668 816 1 163 138
Full maintenance lease borrowings raised 403 499 264 666 342 157
Interest-bearing borrowings repaid (1 719 189) (393 444) (776 230)
Full maintenance lease borrowings repaid (427 742) (387 596) (526 396)
Net cash inflow/(outflow) from financing activities 476 580 108 537 (85 649)
Net increase/(decrease) in cash and cash equivalents 316 871 (80 129) 577 262
Net cash and cash equivalents at beginning of the year 3 351 270 2 727 133 2 727 133
Effect of foreign exchange on cash and cash equivalents 5 019 (63 450) 46 875
Cash and cash equivalents at end of the period 3 673 160 2 583 554 3 351 270
Consolidated Interim
Statement of Changes in Equity
Share Non-
Stated Other Retained buyback controlling Total
capital reserves earnings reserve Total interest equity
R'000 R'000 R'000 R'000 R'000 R'000 R'000
Balance at 30 June 2017 - Audited 3 256 491 847 874 4 452 645 (201 196) 8 355 814 1 499 521 9 855 335
Other comprehensive income - (124 233) - - (124 233) (35 195) (159 428)
Translation adjustment - (124 772) - - (124 772) (35 631) (160 403)
Effective portion of hedge - 742 - - 742 600 1 342
Tax effect of effective portion of hedge - (203) - - (203) (164) (367)
Profit for the period - - 543 649 - 543 649 165 100 708 749
Total comprehensive income for the period - (124 233) 543 649 - 419 416 129 905 549 321
Realisation of revaluation reserve through depreciation - (58) 58 - - - -
Bookbuild shares issued for cash(1) 500 000 - - - 500 000 - 500 000
Share issue expenses (2 850) - - - (2 850) - (2 850)
Share-based payment reserve movement - - 19 948 - 19 948 1 994 21 942
Share options exercised - South Africa - - (68 323) - (68 323) (74) (68 397)
Share options exercised - Australia - - (11 033) - (11 033) (9 728) (20 761)
B-BBEE good leaver options exercised(2) - - (1 050) - (1 050) - (1 050)
Movement in treasury shares - - - 68 397 68 397 - 68 397
Dividends paid to NCI - - - - - (128 679) (128 679)
Deferred tax recorded directly in equity on movement in options - - 7 396 - 7 396 133 7 529
NCI put option movement - - 115 416 - 115 416 - 115 416
Transactions with equity partners - increase in shareholding - - (363 779) - (363 779) (178 817) (542 596)
Transactions with equity partners - decrease in shareholding - - 10 988 - 10 988 117 191 128 179
NCI recognised in respect of subsidiary acquired - - - - - 15 678 15 678
Balance at 31 December 2017 - Unaudited 3 753 641 723 583 4 705 915 (132 799) 9 050 340 1 447 124 10 497 464
Other comprehensive income - 364 473 - - 364 473 85 692 450 165
Translation adjustment - 303 100 - - 303 100 84 014 387 114
Effective portion of hedge - 2 669 - - 2 669 2 160 4 829
Tax effect of effective portion of hedge - (595) - - (595) (482) (1 077)
Revaluation of land and buildings - 73 987 - - 73 987 - 73 987
Tax effect of revaluation of land and buildings - (14 688) - - (14 688) - (14 688)
Profit for the period - - 607 932 - 607 932 175 512 783 444
Total comprehensive income for the period - 364 473 607 932 - 972 405 261 204 1 233 609
Realisation of revaluation reserve through depreciation - 4 (4) - - - -
Share-based payment reserve movement - - 22 470 - 22 470 3 454 25 924
Share options exercised - South Africa - - (1 595) - (1 595) 74 (1 521)
Share options exercised - Australia - - 526 526 464 990
B-BBEE good leaver options exercised(2) - - (793) - (793) - (793)
Movement in treasury shares - - - (30 665) (30 665) - (30 665)
Dividends paid to NCI - - - - - (108 402) (108 402)
Deferred tax recorded directly in equity on movement in options - - (15 542) - (15 542) (214) (15 756)
NCI put option movement - - (12 401) - (12 401) - (12 401)
Transactions with equity partners - increase in shareholding - - (171 932) - (171 932) (39 502) (211 434)
Transactions with equity partners - decrease in shareholding - - (14 577) - (14 577) 14 577 -
NCI recognised in respect of subsidiary acquired - - - - - 110 110
Balance at 30 June 2018 - Audited 3 753 641 1 088 060 5 119 999 (163 464) 9 798 236 1 578 889 11 377 125
Other comprehensive income - 62 257 - - 62 257 5 949 68 206
Translation adjustment - 63 616 - - 63 616 6 952 70 568
Effective portion of hedge - (2 124) - - (2 124) (1 568) (3 692)
Tax effect of effective portion of hedge - 765 - - 765 565 1 330
Profit for the period - - 638 697 - 638 697 160 050 798 747
Total comprehensive income for the period - 62 257 638 697 - 700 954 165 999 866 953
Realisation of revaluation reserve through depreciation - (106) 106 - - - -
Share-based payment reserve movement - - 25 878 - 25 878 2 319 28 197
Share options exercised - South Africa - - (7 688) - (7 688) - (7 688)
Share options exercised - Australia - - (1 888) - (1 888) (1 394) (3 282)
B-BBEE good leaver options exercised(2) - - (178) - (178) - (178)
Movement in treasury shares - - - 7 688 7 688 - 7 688
Dividends paid to NCI - - - - - (141 612) (141 612)
Deferred tax recorded directly in equity on movement in options - - (5 462) - (5 462) - (5 462)
NCI put options movement - - 4 499 - 4 499 - 4 499
Transacions with equity partners - increase in shareholdings(3) - - 44 642 - 44 642 125 018 169 660
Transacions with equity partners - decrease in shareholdings(3) - - (81 875) - (81 875) (65 669) (147 544)
NCI recognised in respect of subsidiary acquired(3) - - - - - 12 383 12 383
IFRS 9 and IFRS 15 adjustment - - (5 888) - (5 888) (4 348) (10 236)
Balance at 31 December 2018 - Unaudited 3 753 641 1 150 211 5 730 842 (155 776) 10 478 918 1 671 585 12 150 503
(1)A bookbuild is an offer of shares to selected investors of the company.
(2)A good leaver is an employee who participated in the Broad-Based Black Economic Empowerment Scheme whose employment was terminated due to their death, retrenchment or sale of the
subsidiary or business whom employed the participant.
(3)Refer to business combinations note.
Operating segments
Services and intercompany
Super Group Supply chain Africa Supply Chain Europe Fleet Africa SG Fleet Dealerships SA Dealerships UK eliminations
Six-month Six-month Six-month Six-month Six-month Six-month Six-month Six-month Six-month Six-month Six-month Six-month Six-month Six-month Six-month Six-month
period period period period period period period period period period period period period period period period
ended ended ended ended ended ended ended ended ended ended ended ended ended ended ended ended
31 December 31 December 31 December 31 December 31 December 31 December 31 December 31 December 31 December 31 December 31 December 31 December 31 December 31 December 31 December 31 December
2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017
Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited
R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000
Revenue 19 441 603 17 966 337 5 923 226 4 656 626 1 512 015 1 608 404 314 697 315 552 2 543 009 1 599 657 4 155 880 5 016 721 4 985 102 4 764 855 7 674 4 522
Depreciation and amortisation (excluding
amortisation of PPA intangibles) (454 366) (424 066) (206 528) (180 222) (9 772) (7 681) (95 187) (90 913) (109 035) (112 978) (10 010) (9 707) (12 491) (13 836) (11 343) (8 729)
Net operating expenditure -
excluding capital items (17 613 375) (16 292 845) (5 251 619) (4 207 485) (1 426 303) (1 493 648) (156 334) (163 214) (1 945 112) (959 289) (3 985 375) (4 830 848) (4 853 880) (4 637 048) 5 248 (1 313)
Operating expenditure - capital items 14 156 (6 432) 14 013 6 251 275 (436) - - - (517) 8 (9 159) - - (140) (2 571)
EBITA 1 388 018 1 242 994 479 092 275 170 76 215 106 639 63 176 61 425 488 862 526 873 160 503 167 007 118 731 113 971 1 439 (8 091)
Amortisation of PPA intangibles (89 663) (93 756) (10 434) (13 220) (42 819) (44 060) - - (33 658) (33 826) - - (2 752) (2 650) - -
Operating profit 1 298 355 1 149 238 468 658 261 950 33 396 62 579 63 176 61 425 455 204 493 047 160 503 167 007 115 979 111 321 1 439 (8 091)
Net finance charges (179 507) (168 894) (31 135) (20 547) (22 767) (25 686) (2 990) (6 855) (45 867) (44 260) (43 979) (46 978) (48 766) (47 630) 15 997 23 062
Profit before tax 1 118 848 980 344 437 523 241 403 10 629 36 893 60 186 54 570 409 337 448 787 116 524 120 029 67 213 63 691 17 436 14 971
Net capex 966 026 607 358 633 102 353 538 18 811 9 263 117 001 29 580 105 966 103 401 61 340 87 324 13 618 11 101 16 188 13 151
As at As at As at As at As at As at As at As at As at As at As at As at As at As at As at As at
31 December 30 June 31 December 30 June 31 December 30 June 31 December 30 June 31 December 30 June 31 December 30 June 31 December 30 June 31 December 30 June
2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018
Unaudited Audited Unaudited Audited Unaudited Audited Unaudited Audited Unaudited Audited Unaudited Audited Unaudited Audited Unaudited Audited
R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000
ASSETS
Non-current assets
Property, plant and equipment 5 708 270 5 152 668 2 870 280 2 383 179 68 302 61 663 902 901 39 499 40 369 893 983 841 114 1 025 686 1 013 424 809 618 812 018
Investment property 151 000 151 000 - - - - - - - - - - - - 151 000 151 000
Full maintenance lease assets 1 577 518 1 563 248 - - - - 936 800 913 768 640 718 649 480 - - - - - -
Intangible assets 1 303 571 1 327 523 55 907 42 563 545 704 570 556 - - 640 390 657 738 171 199 47 161 49 366 14 238 7 101
Goodwill 7 490 107 7 434 221 643 990 641 129 1 912 275 1 863 242 87 822 87 822 3 493 026 3 497 805 545 823 545 823 807 171 798 400 - -
Investments and other non-current assets 289 818 271 805 74 875 74 771 2 928 2 824 - - 2 432 - - - - - 209 583 194 210
Current assets
Inventories 3 840 749 4 179 607 424 107 317 570 527 670 - - 133 016 95 663 1 211 040 1 285 379 2 072 059 2 480 325 - -
Trade receivables 3 849 963 3 710 572 1 712 801 1 492 215 618 258 736 715 191 312 179 121 725 364 778 572 354 896 241 401 256 905 269 244 (9 573) 13 304
Sundry receivables 1 805 383 1 382 149 1 210 659 884 938 25 878 20 785 2 530 9 427 101 740 123 110 16 944 49 180 191 918 114 562 255 714 180 147
Intercompany trade receivables - - 8 929 9 286 - - 66 30 - - 1 264 1 762 - - (10 259) (11 078)
SEGMENT ASSETS 26 016 379 25 172 793 7 001 548 5 845 651 3 173 872 3 256 455 1 219 432 1 191 069 5 776 185 5 842 737 3 024 121 2 964 858 4 400 900 4 725 321 1 420 321 1 346 702
LIABILITIES
Non-current liabilities
Long-term borrowings 5 236 251 4 822 964 823 248 636 413 859 139 874 271 81 361 242 150 1 501 035 1 361 610 200 000 200 000 447 509 885 163 1 323 959 623 357
Non-controlling interest put options and other
non-current liabilities 217 526 317 466 10 008 46 629 137 004 141 282 - - 20 885 16 001 31 755 31 755 - - 17 874 81 799
Fund reserves 485 787 497 876 - - - - 37 497 44 066 448 290 453 810 - - - - - -
Long-term provisions 72 735 65 496 - - 3 326 3 241 - - 69 409 62 255 - - - - - -
Current liabilities
Short-term borrowings 1 498 912 1 382 241 449 168 359 176 286 323 235 596 61 780 297 716 565 402 - - 505 372 137 649 10 774 257 911
Non-controlling interest put option 39 553 - 39 553 - - - - - - - - - - - - -
Trade and other payables and provisions 9 373 891 9 449 135 2 235 029 1 686 860 530 109 599 418 175 537 110 361 1 728 825 1 921 065 1 748 226 1 828 966 2 711 232 3 146 600 244 933 155 865
Intercompany trade payables - - 58 353 36 825 - - 749 1 299 - - - 7 784 - - (59 102) (45 908)
SEGMENT LIABILITIES 16 924 655 16 535 178 3 615 359 2 765 903 1 529 864 1 618 535 530 740 459 656 4 066 160 4 380 143 1 979 981 2 068 505 3 664 113 4 169 412 1 538 438 1 073 024
Net operating assets 15 493 347 14 582 054 4 595 588 4 005 439 2 637 508 2 650 972 1 005 797 1 035 491 3 508 705 3 389 454 1 244 140 1 096 354 1 689 667 1 578 721 811 942 825 623
Business combinations
Nature of Operating Date Interest Purchase
Subsidiaries and businesses acquired business segment acquired acquired (%) price R'000
Cargo Works Proprietary Limited (Cargo Works) Logistics Supply Chain 2 July 2018 80 49 538
Africa
Orbit Helderberg (a division of Rola Motors Dealership Dealership SA 1 October 2018 100 1 100
Proprietary Limited)
Purchase price 50 638
Orbit
Cargo Works Helderberg Total
Net cost on acquisition of businesses R'000 R'000 R'000
Fair value of assets acquired and liabilities assumed at date of acquisition
Assets
Property, plant and equipment (34 674) (1 500) (36 174)
Intangible assets (23 860) - (23 860)
Inventories (238) (19 090) (19 328)
Trade and other receivables (19 019) (2 136) (21 155)
Cash and cash equivalents (8 965) - (8 965)
(86 756) (22 726) (109 482)
Liabilities
Interest-bearing borrowings 8 356 - 8 356
Deferred tax liabilities 7 534 - 7 534
Trade and other payables 7 104 21 226 28 330
Income tax payable 1 841 - 1 841
Provisions - 400 400
24 835 21 626 46 461
Fair value of net assets acquired (61 921) (1 100) (63 021)
Less: Non-controlling interest 12 383 - 12 383
Purchase price (49 538) (1 100) (50 638)
Cash acquired 8 965 - 8 965
Cash outflow (40 573) (1 100) (41 673)
The acquisition of Cargo Works Proprietary Limited will bolster the Supply Chain Africa division. The Group performed a PPA
exercise on Cargo Works whereby intangible assets acquired were separately valued. The valuation, using projected financial
information, led to the recognition of a trade name, customer contracts and relationships of R9.8 million and R14.0 million
respectively.
The non-controlling interests have been calculated using the present ownership instruments' proportionate share in the
recognised amounts of the acquiree's identifiable net assets.
The values identified in relation to the acquisitions are provisional as at 31 December 2018.
The acquisition related costs of R0.8 million in respect of these acquisitions are included in profit or loss in the consolidated
statement of comprehensive income.
Cargo Works
Impact of the acquisitions on the results of the Group R'000
From the dates of acquisition, the acquired business contributed:
Revenue 54 865
Profit after tax and amortisation of PPA intangibles(1) 6 235
Attributable profit to equity holders of Super Group(1) 4 988
(1)Excluding acquisition related costs.
Due to the significant integration activities it is not practical to derive a meaningful contribution from Orbit Helderberg.
SG Fleet
Net costs on increase in existing shareholding in subsidiaries R'000
Non-controlling interest (65 669)
Effect of transactions between equity partners on equity (81 875)
(147 544)
Dividend Reinvestment Plan 147 517
Cash outflow (27)
During the period, the Group was issued 3 958 732 shares in SG Fleet as part of a Dividend Reinvestment Plan. In December a
further 974 shares were purchased in SG Fleet.
SG Fleet
Net proceeds on decrease in existing shareholding in subsidiaries R'000
Non-controlling interest 125 018
Effect of transactions between equity partners on equity 44 642
169 660
Dividend Reinvestment Plan (166 388)
Cash inflow 3 272
During the period, share options in SG Fleet were issued and exercised as well as stock issued as part of a Dividend Reinvestment
Plan which diluted the Group's shareholding in SG Fleet.
Salient features
31 December 31 December 30 June
2018 2017 2018
Unaudited Unaudited Audited
R'000 R'000 R'000
1.INTEREST-BEARING BORROWINGS
Australia 1 022 443 1 131 401 1 102 826
Germany 737 155 728 882 755 459
South Africa 2 807 539 1 782 775 2 076 857
United Kingdom 1 209 292 1 261 848 1 299 533
Spain 122 270 114 967 119 135
Mauritius - 14 105 -
5 898 699 5 033 978 5 353 810
2.SHARE STATISTICS
Total issued less treasury shares (000) 362 476 363 110 362 280
Weighted number of shares (000) 362 377 355 450 359 012
Diluted weighted number of shares (000) 363 015 356 660 360 035
Net asset value per share (cents)(1) 2 890.9 2 492.5 2 704.6
(1)Net asset value per share is calculated as the capital and reserves attributable
to equity shareholders of Super Group divided by the total issued less treasury
shares.
3.CAPITAL COMMITMENTS
Authorised but not yet contracted for capital commitments,
excluding full maintenance lease assets. 736 240 472 077 1 058 602
Capital commitments will be funded from normal operating cash
flows and the utilisation of existing borrowings facilities.
4.RELATED PARTY TRANSACTIONS
The Group, in the ordinary course of business, entered into various sales and purchase transactions on an arm's length basis
with related parties.
Certain related parties of subsidiary companies contract with the Group. Sales, purchases and management fees received
amounted to R351 million (December 2017: R14.7 million), R32.1 million (December 2017: R36.5 million) and R8.45 million
(December 2017: R11.2 million) respectively for these services. These transactions were entered into in the normal course of
business under terms and conditions that were no more favourable than those arranged with third parties. Net amounts owing
by related parties was R91.2 million (June 2018: R120.2 million).
The Group utilises Fluxmans Attorneys, a director-related entity, to assist with corporate law advisory services in respect of
various transactions and several other corporate and labour matters. These transactions are performed at an arm's length
basis.
The Group encourages its employees and key management to purchase goods and services from Group companies. These
transactions are generally conducted on terms no more favourable than those entered into with third parties on an arm's length
basis although in some cases nominal discounts are granted. Transactions with key management personnel are conducted on
similar terms. No abnormal or non-commercial credit terms are allowed and no impairments were recognised in relation to any
transactions with key management personnel during the period nor have they resulted in any non-performing debts at period-
end. Similar policies are applied to key management personnel at subsidiary level who are not defined as key management
personnel at Group level.
5.SUBSEQUENT EVENTS
The directors are not aware of other matters or circumstances arising subsequent to the reporting date up to the date of this
report, which will materially affect these results.
6.SIGNIFICANT EVENTS
Acquisition of Cargo Works
The Group acquired a 80% interest in Cargo Works Proprietary Limited effective 2 July 2018 for a purchase consideration of
R49.5 million. The Statement of Financial Position as at 31 December 2018 has been impacted by increases in property, plant
and equipment of R33.7 million, intangible assets of R22.5 million, trade and other receivables of R20.4 million, deferred tax
liability of R8.0 million and trade and other payables of R4.5 million as a result of this acquisition. Trading relating to the six
months ended 31 December 2018 has been included in the Statement of Comprehensive Income.
Raising of unsecured debt notes
The JSE-listed Super Group's SPG004 senior unsecured notes, in terms of its DMTN Programme dated 22 October 2013 on
27 September 2018. The value of the SPG004 issue was R450 million with interest of three-month Johannesburg Interbank
Agreed Rate (JIBAR) plus 200 basis points, coupon rate payable quarterly on 27 March, 27 June, 27 September and
27 December of each year. The maturity date of the issue is 27 September 2023.
Adoption of IFRS 15
The adoption of IFRS 15 resulted in the revenue in SG Fleet increasing by R972 million but there was no material impact on
profit before tax.
Exchange rate movements
The table below reflects the movement in the exchange rates from the prior reporting periods:
31 December 31 December %
2018 2017 Change
Average currency rate to the South African Rand:
Australian Dollar 10.26 10.43 (1.6)
US Dollar 14.18 13.41 5.7
Euro 16.34 15.77 3.6
Pound Sterling 18.35 17.67 3.8
31 December 30 June %
2018 2018 Change
Closing currency rate to the South African Rand:
Australian Dollar 10.13 10.16 (0.3)
US Dollar 14.35 13.72 4.6
Euro 16.45 16.03 2.6
Pound Sterling 18.32 18.11 1.2
The non-South African operations account for 56% (June 2018: 60%) and 56% (June 2018: 63%) of the Group's total assets
and liabilities respectively.
The non-South African operations generated 49% (December 2017: 46%) and 50% (December 2017: 62%) of the Group's
revenue and operating profit respectively.
Hierarchy
Level 2 Level 3
R'000 R'000 Valuation technique
7. FAIR VALUE
Property, plant and equipment - Land, 2 696 018 External valuations were performed on various of the
buildings and leasehold improvements Group's properties in June 2018. The valuation model
considers the present value of net cash flows to be
generated from these properties, taking into account
expected rental growth rate, void period, occupancy
rate, lease incentive costs such as rent-free periods and
Investment properties 151 000 other costs not paid by tenants and the rate per square
metre allocated between showroom, workshop, display
parking and parking. The expected net cash flows are
discounted using risk-adjusted discount rates. Among
other factors, the discount rate estimation considers the
quality of a building and its location (prime vs secondary),
tenant credit quality and lease terms.
Deferred contingent purchase 60 000 Due to the sale of the GWM business in 2016 and the
consideration receivable - GWM related profit warranties not being met, the amount
receivable is certain as at period-end according to
the purchase agreement and has been assessed as
recoverable.
Deferred contingent purchase 101 832 An obligation exists at acquisition date resulting from the
consideration payable - Legend possibility of the acquiree's aggregate profit after tax for
the three-year period ending 30 June 2019 exceeding
R155 million. The deferred contingent purchase
consideration is calculated by applying 75% to every R1
excess over the R155 million aggregate profit after tax.
The present value of this obligation is determined using
a pre-tax discount rate of 9.25%. The date of payment is
the second business day after the aggregate profit after
tax is agreed.
FEC liabilities 800 The fair values are based on broker quotes. Similar
FEC assets 16 942 contracts are traded in an active market and reflect the
actual transactions in similar instruments.
Legend put option 39 553 This put option is calculated as the fair value of the
business at exercise date of the option, by using a
multiple of the average profit after tax for the preceeding
three years. The present value is determined by using
a pre-tax discount rate of 9.75%. The option can be
exercised on 1 October 2019.
inTime put option 137 004 This put option is calculated as the fair value determined
by using the average audited EBITDA for the three years
preceding the put option exercise date at a price earnings
multiple of 7.5, adjusted for net debt. The present value
has been determined using a pre-tax discount rate of
7.7%. The put option can be exercised from 30 June
2020 to 30 June 2025.
The carrying value of all other financial instruments approximates the fair value of the financial instruments as at
31 December 2018.
Movement in level 3 financial instruments measured at fair value
The following table shows a reconciliation from the opening to closing balances of level 3 financial instruments carried at fair value:
Six-month Six-month
period ended period ended Year ended
31 December 31 December 30 June
2018 2017 2018
Unaudited Unaudited Audited
R'000 R'000 R'000
Property, plant and equipment - Land and buildings and
leasehold improvements
Opening balance 2 589 415 2 120 365 2 120 365
Net additions 54 177 98 709 115 520
Acquisition of businesses 454 190 384 263 820
Revaluation - - 73 987
Other 51 972 (35 254) 15 723
Closing balance 2 696 018 2 374 204 2 589 415
Investment properties
Opening balance 151 000 149 800 149 800
Fair value adjustment recognised in profit and loss - - 1 200
Closing balance 151 000 149 800 151 000
Put option liabilities
Opening balance 177 412 270 784 270 784
Movement through statement of changes in equity (855) (113 641) (93 372)
Exercised - Digistics - (102 665) (102 665)
Exercised - Legend - (18 418) (18 418)
Fair value adjustment (4 499) 5 667 18 068
Foreign currency translation 3 644 1 775 9 643
Closing balance 176 557 157 143 177 412
Financial asset/(liability) - Deferred contingent purchase considerations
31 December 31 December 30 June
2018 2017 2018
Unaudited Unaudited Audited
GWM Legend Total Total Total
R'000 R'000 R'000 R'000 R'000
Opening balance 60 000 (62 488) (2 488) 35 499 35 499
Fair value adjustment
recognised in profit and loss - (39 344) (39 344) (15 815) (37 987)
Closing balance 60 000 (101 832) (41 832) 19 684 (2 488)
Sensitivity analysis
Land and buildings and investment properties
The estimated fair value would increase/(decrease) if:
Occupancy rate was higher/(lower), the rent-free periods were (increased)/decreased, the yield was lower/(higher), rental growth
was higher/(lower) and the floor area was larger/(smaller).
Deferred contingent purchase consideration
The significant assumptions included in the fair value measurement of the deferred contingent purchase consideration for Legend
is based on the projected income that is not observable in the market. The following table shows how the fair value of the Legend
payable would change if the projected earnings assumption was increased by 100bps:
Increase in
Fair value liability
R'000 R'000
Deferred contingent purchase consideration payable - Legend 103 935 2 103
Due to the Group having disposed of GWM, the deferred contingent purchase consideration of R60 million is certain.
Put options
The significant assumption included in the fair value measurement of the put option liabilities relates to the projected income
that is not observable in the market. The following table shows how the fair value of the liabilities would change if the earnings
assumption was increased by 100bps:
Increase in
Fair value liability
R'000 R'000
Legend 39 948 395
inTime 141 390 4 386
Six-month Six-month
period ended period ended Year ended
31 December 31 December 30 June
2018 2017 2018
Unaudited Unaudited Audited
R'000 R'000 R'000
8.CAPITAL ITEMS
Impairment of property, plant and equipment and intangible assets - 3 486 23 818
Impairment of goodwill - 9 155 37 155
Profit on sale of property, plant and equipment (14 156) (8 832) (23 946)
Loss on sale of business - 2 623 2 623
Fair value adjustment to investment property - - (1 200)
Capital items before tax and NCI (14 156) 6 432 38 450
Tax effect of capital items 3 969 1 661 2 329
NCI effect of capital items 1 300 (604) 363
Capital items after tax and NCI (8 887) 7 489 41 142
31 December
2018
Unaudited
R'000
9.OPERATING RENTAL COMMITMENTS
Property 1 540 835
- less than one year 307 946
- one to five years 663 913
- thereafter 568 976
Rental and transport fleet 295 666
- less than one year 81 113
- one to five years 178 044
- thereafter 36 509
Other 28 701
- less than one year 13 767
- one to five years 14 934
- thereafter -
Total rental commitments 1 865 202
- less than one year 402 826
- one to five years 856 891
- thereafter 605 485
Corporate information
Directors
Executive: P Mountford (Chief Executive Officer) and C Brown (Chief Financial Officer)
Non-executive: P Vallet* (Chairman of the company), Dr E Banda*, M Cassim*, V Chitalu*#, J Newbury* and D Rose*
*Independent #Zambian
Company Secretary
N Redford
Registered office
27 Impala Road, Chislehurston, Sandton, 2196
Transfer secretaries
Computershare Investor Services Proprietary Limited
(Registration number 2004/003647/07)
Rosebank Towers, 15 Biermann Avenue, Rosebank, 2196
(PO Box 61051, Marshalltown, 2107)
Sponsor
Investec Bank Limited
(Registration number 1969/094763/06)
100 Grayston Drive, Sandown, Sandton, 2196
Investor Relations
Keyter Rech Investor Solutions CC
(Registration number 2008/156985/23)
5 2nd Road, Hyde Park, 2196
www.supergroup.co.za
Date: 25/02/2019 03:30:00 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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