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1. |
Basis of preparation
The results have been prepared in accordance with,
and comply with, International Financial Reporting
Standards (“IFRS”) and the South African
Companies Act No 61 of 1973, as amended.
The accounting policies applied in the preparation
of these results are consistent with those detailed
in the pre-listing statement issued by AF Pref on
10 July 2007. There have been no new standards or
interpretations, which have had a material effect
on the results.
AF Pref did not trade prior to its acquisition of
an associate investment in AFEH on 26 July 2007.
Thus, there are no income statement and cash flow
comparative figures for the prior reporting period. |
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2. |
Earnings
attributable to ordinary shareholders and preference
shareholders
The economic rights to return of capital and dividends
for ordinary and preference shareholders are detailed
in section 5 of the pre-listing statement issued
by AF Pref on 10 July 2007. |
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31
March
2008
Rm |
3. |
Reconciliation of headline earnings
per ordinary share Basic earnings and headline earnings
per ordinary share are both nil as a result of the
preferential economic rights of preference shareholders
(refer pre-listing statement of AF Pref). |
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| 4. |
Reconciliation of
headline earnings per preference share |
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Earnings attributable to preference shareholders
(IAS 33 earnings) |
(44) |
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Adjusting items: |
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Equity accounted share of capital gains net of
impairment charges of |
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associate (IAS 31) |
(10) |
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Equity accounted share of discontinued operation
of associate (IAS 31) |
6 |
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Tax effect of above adjustment |
(2) |
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Headline earnings attributable to preference shareholders |
(50) |
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Weighted average number of preference shares in
issue (mills) |
100 |
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Headline earnings per preference
share (cents) |
(50) |
| 5. |
Investment in associate |
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Investment in AFEH: |
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Cost |
1,121 |
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Equity accounted results for the
period |
(44) |
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Carrying value in balance sheet |
1,077 |
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Directors’ valuation of
associate |
1,121 |
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The directors are of the opinion that their
value of the investment in AFEH of R1,121 million
is appropriate. The trading results of the underlying
Alexander Forbes group for the current year were
in line with those expected at the effective date.
The equity accounted loss in the current year can
be largely attributed to one-off costs resulting
from the acquisition of the Alexander Forbes group
and a non-cash amortisation charge of intangible
assets arising from the business combination. The
consolidated results of AFEH are available to all
shareholders of AF Pref and are published in a
separate announcement.
Review opinion
Our auditors, PricewaterhouseCoopers Inc, have
reviewed the abridged financial information
in this report for the period ended 31 March
2008. A copy of their unqualified review report
is available upon request. |
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