Aveng Limited : - Unaudited Group results for the si

> AEG 201402250001A
> Unaudited Group results for the six months ended 31 December 2013
>
> AVENG LIMITED
> (?Aveng?, ?the Company?, ?the Group? or ?Aveng Group?)
> (Incorporated in the Republic of South Africa)
> (Registration number: 1944/018119/06)
> ISIN: ZAE000111829
> Share code: AEG
> Unaudited Group results for the
> six months ended 31 December 2013
>
> Key features
> - Revenue
> improved by 11% to R27,6 billion (2012: R24,9 billion)
> - 18% increase
> in the Mining two-year order book from June 2013
> - Net operating earnings
> down by 8% to R503 million (2012: R544 million)
> - 22% increase in the Construction and Engineering:
> South Africa and Rest of Africa two-year order book from June 2013
> - Net cash position
> stable at R2,4 billion
> - Headline earnings per share
> decreased by 21% to 82,1 cents (2012: 104,5 cents)
> - Net finance expenses
> R83 million (2012: net finance earnings R12 million)
>
> Interim condensed consolidated statement of financial position
> as at 31 December 2013
> 31 December 31 December 30 June
> 2013 2012* 2013
> (Unaudited) (Unaudited) (Audited)
> Note Rm Rm Rm
> ASSETS
> Non-current assets
> Investment property 7 71 - 71
> Property, plant and equipment 7 6 864 6 812 6 789
> Goodwill arising on consolidation 1 443 1 400 1 425
> Intangible assets** 7 222 163 184
> Equity-accounted investments 219 91 144
> Available-for-sale investments 72 147 70
> Deferred tax assets 1 379 1 011 1 347
> 10 270 9 624 10 030
> Current assets
> Inventories 2 903 2 625 2 780
> Trade and other receivables 2 920 1 858 2 655
> Amounts due from contract customers 8 10 387 9 258 10 397
> Cash and bank balances 6 5 619 5 263 4 551
> 21 829 19 004 20 383
> TOTAL ASSETS 32 099 28 628 30 413
> EQUITY AND LIABILITIES
> Equity
> Share capital and share premium 1 388 1 435 1 388
> Other reserves 996 767 802
> Retained earnings 11 411 11 017 11 103
> Equity attributable to equity-holders of the parent 13 795 13 219 13 293
> Non-controlling interests 10 13 12
> 13 805 13 232 13 305
> Liabilities
> Non-current liabilities
> Borrowings and other liabilities 1 738 1 289 1 312
> Deferred tax liabilities 385 255 319
> Provisions 9 1 166 1 091 1 105
> 3 289 2 635 2 736
> Current liabilities
> Borrowings and other liabilities 830 161 219
> Taxation payable 181 161 210
> Trade and other payables 9 405 7 083 9 052
> Provisions 9 1 552 1 183 1 924
> Amounts due to contract customers 8 2 352 3 665 2 367
> Bank overdrafts 6 685 508 600
> 15 005 12 761 14 372
> TOTAL LIABILITIES 18 294 15 396 17 108
> TOTAL EQUITY AND LIABILITIES 32 099 28 628 30 413
>
> * Comparatives have been amended, as detailed in the Change in disclosure note, refer to note 3.
> ** Includes computer software and intangible assets with indefinite useful lives.
>
>
>
> Interim condensed consolidated statement of comprehensive earnings for the six months ended 31
> December 2013
> Six months Six months Year
> ended ended ended
> 31 December 31 December 30 June
> 2013 2012* % 2013
> (Unaudited) (Unaudited) change (Audited)
> Note Rm Rm Rm
> Revenue 27 654 24 987 11 51 704
> Cost of sales 1 (25 681) (22 852) 12 (48 233)
> Gross earnings 1 973 2 135 (8) 3 471
> Operating expenses 2 (1 551) (1 619) (4) (2 844)
> Operating earnings before other gains and losses 422 516 (18) 627
> Other gains and losses 3 2 50 -
> Operating earnings after other gains and losses 425 518 (18) 627
> Earnings from available-for-sale investments 34 42 (19) 41
> Share of earnings / (losses) from equity-accounted investments 44 (16) (12)
> Net operating earnings 503 544 (8) 656
> Finance earnings 57 66 (14) 132
> Finance and transaction expenses (140) (54) 159 (162)
> Earnings before taxation 420 556 (24) 626
> Taxation 5 (113) (159) (29) (167)
> Earnings for the period 307 397 (23) 459
>
> Items that may be subsequently recycled to earnings:
> Exchange differences on translating foreign operations 192 164 17 196
> Movement in insurance and other reserves 1 ** (2)
> Other comprehensive earnings for the period 193 164 18 194
> Total comprehensive earnings for the period 500 561 (11) 653
>
> * Comparatives have been amended, as detailed in the Change in disclosure note, refer to note 3.
> ** Amounts less than R1 million.
> 1 Cost of sales includes depreciation of R508 million (2012: R602 million).
> 2 Operating expenses includes depreciation of R56 million (2012: R60 million) and amortisation of R20 million (2012: R24 million).
> The total depreciation, amortisation and impairment expense included in the statement of comprehensive earnings amounts to R584 million (2012: R686 million).
>
>
> Interim condensed consolidated statement of comprehensive earnings for the six months ended 31
> December 2013 (continued)
> Six months Six months Year
> ended ended ended
> 31 December 31 December 30 June
> 2013 2012 % 2013
> (Unaudited) (Unaudited) change (Audited)
> Rm Rm Rm
> Earnings for the period attributable to:
> Equity-holders of the parent 308 394 (22) 466
> Non-controlling interests (1) 3 (7)
> 307 397 (23) 459
> Other comprehensive earnings
> for the period attributable to:
> Equity-holders of the parent 193 167 16 193
> Non-controlling interests - (3) 1
> 193 164 18 194
> Total comprehensive earnings for the period attributable to:
> Equity-holders of the parent 501 561 (11) 659
> Non-controlling interests (1) * (6)
> 500 561 (11) 653
>
> Determination of headline earnings for the period:
> Earnings for the period attributable to 308 394 (22) 466
> equity-holders of the parent
> Adjusted for (net of tax):
> Profit on sale of property, plant and equipment (1) (2) (50) (1)
> Impairment of property, plant and equipment - - 1
> Headline earnings 307 392 (22) 466
>
> Results per share (cents)
> Earnings 82,4 105,0 (22) 124,6
> Headline earnings 82,1 104,5 (21) 124,6
> Diluted earnings 76,6 98,0 (22) 115,9
> Diluted headline earnings 76,3 97,5 (22) 115,9
> Dividend - - -
>
> Number of shares (millions)
> In issue 389,8 389,8 389,8
> Weighted average 373,9 375,2 373,9
> Diluted weighted average 402,1 402,1 402,1
> *Amounts less than R1 million.
>
>
>
> Interim condensed consolidated statement of cash flows
> for the six months ended 31 December 2013
> Six months Six months Year
> ended ended ended
> 31 December 31 December 30 June
> 2013 2012* 2013
> (Unaudited) (Unaudited) (Audited)
> Rm Rm Rm
> Cash retained from operating activities
> Cash retained from operations 425 518 627
> Depreciation and impairment 564 662 1 181
> Amortisation 20 24 50
> Non-cash items and other movements (455) 55 540
> Cash generated by operations 554 1 259 2 398
> Changes in working capital
> Increase in inventories (123) (158) (313)
> Increase in trade and other receivables and amounts due
> from contract customers (255) (1 191) (3 127)
> Increase in trade and other payables and amounts due
> to contract customers 338 587 1 256
> Cash generated by operating activities 514 497 214
> Finance earnings 57 59 126
> Finance and transaction expenses paid (140) (58) (164)
> Taxation paid (107) (302) (464)
> Cash inflow / (outflow) from operating activities 324 196 (288)
> Investing activities
> Property, plant and equipment purchased (271) (222) (459)
> - expansion
> - replacement (320) (560) (925)
> Acquisition of investment property - - (71)
> Acquisition of intangible assets (58) - (29)
> Changes in equity-accounted and available-for-sale
> investments (31) (2) (38)
> Proceeds from sale of property, plant and equipment 144 25 165
> Proceeds from sale of intangible assets - - 2
> Cash outflow on acquisition of subsidiary - - (9)
> Proceeds from sale of available-for-sale investment - - 80
> Dividend earnings 34 42 41
> Cash outflow from investing activities (502) (717) (1 243)
> Operating free cash outflow (178) (521) (1 531)
> Financing activities with equity-holders
> Shares repurchased - - (47)
> Dividends paid - (242) (242)
> Financing activities with debt holders
> Proceeds from borrowings (net of loans advanced) 1 037 523 603
> Net increase / (decrease) in cash and cash equivalents
> before foreign exchange movements on cash 859 (240) (1 217)
> Foreign exchange movements on cash 124 135 308
> Cash and cash equivalents at beginning of year** 3 951 4 860 4 860
> Cash and cash equivalents at end of year** 4 934 4 755 3 951
> Borrowings, excluding bank overdrafts 2 568 1 450 1 531
> Net cash position 2 366 3 305 2 420
>
> * Comparatives have been amended, due to the changes detailed in note 3.
> ** Cash and cash equivalents is calculated by deducting Bank overdrafts from Cash and bank balances.
>
>
> Notes to the interim condensed consolidated financial statements
>
> 1. Corporate information
>
> The interim condensed consolidated financial statements of the Group for the six months ended
> 31 December 2013 (?interim results?) were authorised for issue in accordance with a resolution
> of the directors on 19 February 2014.
>
> Aveng Limited is a limited liability company incorporated and domiciled in the Republic of South
> Africa whose shares are publicly traded. The Group operates in the construction, engineering and
> mining environment and as a result the revenue is not seasonal in nature, but is influenced by
> the nature and execution of the contracts currently in progress. Refer to the commentary below
> for a more detailed report on the performance of the different operating segments within the Group.
>
> 2. Basis of preparation and accounting policy
>
> The interim results have been prepared on the historical cost basis, except for certain financial
> assets which are measured at fair value.
>
> The accounting policies used in the preparation of these results are consistent in all material
> respects with those used in the Group's audited annual financial statements as at 30 June 2013.
> The interim financial statements have been prepared in accordance with IAS 34 Interim Financial
> Statements and the Listings Requirements of the JSE Limited. The accounting policies adopted are
> consistent with those of the previous year, except for the adoption of new and revised Standards
> and Interpretations that become effective during this reporting period. The external auditors have
> not reviewed the financial results for the six months ended 31 December 2013.
>
> The interim results do not include all the information and disclosures required in the annual
> financial statements, and should be read in conjunction with the Group's audited annual financial
> statements as at 30 June 2013.
>
> The interim financial results have been prepared under the supervision of the acting Group
> Financial Director, Mr HJ Verster.
>
> The Group has adopted the following new and revised Standards and Interpretations (issued by the
> International Financial Reporting Interpretation Committee) of the IASB that became effective on
> or after 1 July 2013.
>
> Standards
> IFRS 7 Financial Instruments: Disclosure (Amendment)
> IFRS 10 Consolidated Financial Statements
> IFRS 11 Joint Arrangements
> IFRS 12 Disclosure of Interests in Other Entities
> IFRS 13 Fair Value Measurements
> IAS 16 Property, Plant and Equipment (Improvement)
> IAS 19 Employee Benefits (Revised)
> IAS 27 Separate Financial Statements (Revised)
> IAS 28 Investment in Associates and Joint Ventures (Revised)
> IAS 34 Interim Reporting (Improvement)
>
> The adoption of these Standards and Interpretations did not have a material effect on the
> Group's interim results and related disclosures.
>
> In addition, the following Standards and Interpretations have been issued but are not yet effective.
> Standard Subject Effective date
> IFRS 9 Financial Instruments 1 January 2015
> IFRS 10 Consolidated Financial Statements: Amendments for investment entities 1 January 2014
> IFRS 12 Disclosure of Interests in Other Entities: Amendments for investment entities 1 January 2014
> IAS 19 Employee Benefits (Amendment) 1 July 2014
> IAS 27 Separate Financial Statements: Amendments for investment entities 1 January 2014
> IAS 32 Financial Instruments: Presentation (Amendment) 1 January 2014
> IAS 36 Impairment of Assets (Amendment) 1 January 2014
> IAS 39 Financial Instruments: Recognition and Measurement (Amendment) 1 January 2014
>
> The Group does not intend to early adopt any of the above Standards and Interpretations.
>
> Contracting revenue
>
> The Group uses the percentage-of-completion, surveys of work performed and completion of a
> physical proportion of the contract work methods in accounting for its construction contracts. Use of these
> methods requires the Group to estimate the construction services and activities performed to date
> as a proportion of the total services and activities to be performed and apply judgment on the
> contract progress and outstanding risks.
>
>
> 3. Change in disclosure
>
> Background
>
> As part of the Group's financial reporting improvement initiatives, the structure, format and
> presentation of disclosures in the interim condensed consolidated financial statements were reviewed.
> This resulted in the reallocation of certain comparative amounts as well as the introduction of
> certain changes in terminology.
>
> The initiative is an ongoing programme targeting the most appropriate disclosure and presentation
> practices, to best serve the interests of the Group's stakeholders.
>
> The resulting reallocations had no earnings or loss impact on the interim condensed consolidated
> financial statements, and as such the reallocations are not regarded as having had a quantitatively
> nor qualitatively material effect on the information presented.
>
> Reallocations affecting the 2012 comparatives:
>
> The reallocations for the 2012 comparative amounts are as follows:
>
> Interim condensed consolidated statement of financial position
> An amount of R77 million gross carrying amount and R67 million accumulated depreciation (net
> carrying amount R10 million), relating to computer software was reallocated from property, plant and
> equipment to intangible assets.
>
> Goodwill amounting to R1 400 million in 2012 was reallocated from ?Goodwill and other intangible
> assets? to a separately disclosed line item, ?Goodwill arising on consolidation?.
>
> Amounts due from contract customers of R9 258 million in 2012 was reallocated from ?Trade and
> other receivables? to a separately disclosed line item, ?Amounts due from contract customers?.
>
> An amount of R3 665 million in 2012 was reallocated from ?Trade and other payables? to a
> separately disclosed line item, ?Amounts due to contract customers?.
>
> The 31 December 2012 comparative information was not recorded to the same granular level as was
> recorded for the six months ended 31 December 2013 and for the year ended 30 June 2013, and therefore
> may not be in a manner consistent with management's current categorisation practice, which in turn is
> based upon judgemental interpretations on a contract-by-contract and case-by-case basis. The exclusion
> of the disclosure of this information, for the six months ended 31 December 2012 does not have a
> quantitatively nor qualitatively material effect on the Group"s interim results.
>
> Other provisions of R234 million in 2012 were reallocated from ?Accruals? (part of Trade and other
> payables) to the separately disclosed line item ?Provisions?. Furthermore, the ?Provisions? line
> item was reclassified to reflect the current and non-current portions of provisions raised.
>
> Interim condensed consolidated statement of comprehensive earnings
>
> The Group now includes the disclosure of ?Cost of sales? and ?Gross earnings? on the interim
> condensed consolidated statement of comprehensive earnings. This disclosure was not previously included
> in the interim report and resulted in the disclosure of R22 852 million relating to cost of sales and
> R2 135 million relating to gross earnings.
>
> Depreciation of R602 million directly attributable to cost of sales was previously disclosed as
> part of the ?Depreciation? line item for 2012. This was reallocated to ?Cost of sales?.
>
> Depreciation of R60 million previously disclosed as part of the ?Depreciation? line item for 2012.
> This was reallocated to ?Operating expenses?.
>
> Amortisation of R24 million previously disclosed as part of the ?Amortisation? line item for 2012.
> This was reallocated to ?Operating expenses?.
>
>
> Notes to the interim condensed financial statements
>
> The disclosure in the segment report, note 4, has been extensively expanded, including the
> disclosure of total revenue (being internal and external revenue) per operating segment and the separate
> disclosure of the elimination of internal revenue, resulting in total external revenue for the Group.
> Refer to note 4.
>
>
> Terminology changes
> Statement of financial position
> New terminology used Previously used terminology
> Retained earnings Distributable reserves
> Borrowings and other liabilities Borrowings
>
> Statement of comprehensive earnings
> New terminology used Previously used terminology
> Earnings Profit/income
> Finance earnings Finance income
> Finance and transaction expenses Finance and transaction costs
>
> Statement of changes in equity
> New terminology used Previously used terminology
> Retained earnings Distributable reserves
> Earnings Profit/income
>
> Statement of cash flows
> New terminology used Previously used terminology
> Finance earnings Finance income
> Finance and transaction expenses Finance and transaction costs
>
>
> 4. Segment information
>
> The Group has determined four reportable segments that are largely organised and managed
> separately according to the nature of products and services provided.
>
> These operating segments are components of the Group:
> a) that engage in business activities from which they earn revenues and incur expenses; and
> b) whose operating results are regularly reviewed by the Group's chief operating decision makers
> to make decisions about resources to be allocated to the segments and assess their performance.
>
> Segment assets exclude Goodwill arising on consolidation, Intangible assets, Equity-accounted
> investments, Available-for-sale investments, Deferred tax assets and Cash and bank balances.
>
> Segment liabilities exclude Borrowings and other liabilities, Deferred tax liabilities, Taxation
> payable and Bank overdrafts.
>
> The Group's operating segments for the year are categoried as follows:
> 1. Construction and Engineering
> 1.1 Construction and Engineering: South Africa and Rest of Africa
> This operating segment comprises Aveng Grinaker-LTA and Aveng Engineering.
> 1.2 Construction and Engineering: Australasia and Asia*
> This operating segment comprises McConnell Dowell.
>
> 2. Mining
> This operating segment comprises Aveng Moolmans and Aveng Mining Shafts & Underground.
>
> 3. Manufacturing and processing
> This operating segment comprises Aveng Manufacturing and Aveng Steel.
>
> 4. Administration and Eliminations
> This operating segment comprises concessions, corporate services, corporate-held investments including
> properties, and consolidation eliminations.
>
> * The Construction and Engineering: Australasia and Pacific operating segment has been renamed
> to Construction and Engineering: Australasia and Asia.
>
> 4. Segment information (continued)
>
>
>
> Construction and
> Engineering: Manu- Adminis-
> South Africa facturing tration
> December 2013 and the Rest Australasia and and
> Rm of Africa* and Asia Mining Processing* Eliminations Total
>
> External revenue 4 104 14 933 3 459 5 026 132 27 654
> Internal revenue 53 - 2 239 (294) -
> Gross revenue 4 157 14 933 3 461 5 265 (162) 27 654
> Operating (loss) / earnings before
> other gains and losses (336) 165 295 162 136 422
> Other gains and losses - - - - 3 3
> Operating (loss) / earnings after
> other gains and losses (336) 165 295 162 139 425
> Earnings from available-for-sale
> investments 1 - - - 33 34
> Share of earnings / (losses) from
> equity-accounted investments 1 26 - - 17 44
> Net operating (loss) / earnings (334) 191 295 162 189 503
> Net finance (expense) / earnings
> (finance earnings less finance
> and transaction expenses) (12) (34) (15) 2 (24) (83)
> (Loss) / earnings before taxation (346) 157 280 164 165 420
> Taxation 102 (45) (95) (52) (23) (113)
> (Loss) / earnings for the period (244) 112 185 112 142 307
> Investments** 9 135 4 - 143 291
> Segment assets (note 1) 3 157 8 348 4 230 5 906 1 504 23 145
> Segment liabilities (note 2) 2 470 7 489 1 801 1 905 810 14 475
> Capital expenditure*** 57 151 197 124 120 649
> Depreciation and impairment 46 203 231 73 11 564
> Amortisation 7 - - 6 7 20
> * Aveng Steel Fabrication (?ASF?), Aveng Manufacturing Automation & Control Solutions (?A&CS?) and Aveng Manufacturing
> Facades business units are now reported under the Manufacturing and Processing segment, compared to the Construction and
> Engineering: South Africa and Rest of Africa segment in the prior year. Comparatives have been adjusted.
> ** Consists of equity-accounted investments and available-for-sale investments.
> ***Segment capital expenditure includes intangible asset expenditure of R58 million.
>
> Construction and
> Engineering: Manu- Adminis-
> South Africa facturing tration
> December 2012 (Unaudited) and the Rest Australasia and and
> Rm of Africa* and Asia Mining Processing* Eliminations** Total
>
> External revenue 3 650 12 761 3 793 4 781 2 24 987
> Internal revenue 93 - - 172 (265) -
> Gross revenue 3 743 12 761 3 793 4 953 (263) 24 987
> Operating (loss) / earnings
> before other gains and losses (40) 195 390 76 (105) 516
> Other gains and losses (14) - - - 16 2
> Operating (loss) / earnings
> after other gains and losses (54) 195 390 76 (89) 518
> Earnings from available-for-sale
> investments 1 - - - 41 42
> Share of earnings / (losses) from
> equity-accounted investments (17) - - - 1 (16)
> Net operating (loss) / earnings (70) 195 390 76 (47) 544
> Net finance earnings / (expenses)
> (finance earnings less finance
> and transaction expenses) 12 (2) (12) 8 6 12
> (Loss) / earnings before taxation (58) 193 378 84 (41) 556
> Taxation 17 (53) (121) (22) 20 (159)
> (Loss) / earnings for the period (41) 140 257 62 (21) 397
> Investments 66 138 1 - 33 238
> Segment assets (note 1) 3 082 6 759 4 579 5 604 529 20 553
> Segment liabilities (note 2) 2 298 6 825 2 033 1 289 577 13 022
> Capital expenditure 5 181 453 142 1 782
> Depreciation and impairment 49 210 321 73 9 662
> Amortisation 5 - - 5 14 24
> * Aveng Steel Fabrication (?ASF?), Aveng Manufacturing Automation & Control Solutions (?A&CS?) and Aveng Manufacturing
> Facades business units are now reported under the Manufacturing and Processing segment, compared to the Construction
> and Engineering: South Africa and Rest of Africa segment in the prior year. Comparatives have been adjusted.
> ** Comparatives have been adjusted as concessions is reported under the Administration and Eliminations operating segment,
> compared to the Construction and Engineering: South Africa and rest of Africa segment in the 2012 year. Comparatives have
> been adjusted.
> *** Consists of equity-accounted investments and available-for-sale investments.
>
>
> Construction and
> Engineering: Manu- Adminis-
> South Africa facturing tration
> June 2013 (Audited) and the Rest Australasia and and
> Rm of Africa* and Asia Mining Processing* Eliminations Total
>
> External revenue 7 239 26 749 7 435 10 146 135 51 704
> Internal revenue 219 - - 409 (628) -
> Gross revenue 7 458 26 749 7 435 10 555 (493) 51 704
> Operating (loss) / earnings
> before other gains and losses (895) 644 707 235 (64) 627
> Other gains and losses - - - - - -
> Operating (loss) / earnings
> after other gains and losses (895) 644 707 235 (64) 627
> Earnings from available-for-sale
> investments - - - - 41 41
> Share of earnings / (losses) from
> equity-accounted investments (1) (5) 2 - (8) (12)
> Net operating (loss) / earnings (896) 639 709 235 (31) 656
> Net finance earnings / (expense)
> (finance earnings less finance and
> transaction expenses) 31 (23) (31) 2 (9) (30)
> (Loss) / earnings before taxation (865) 616 678 237 (40) 626
> Taxation 346 (157) (236) (79) (41) (167)
> (Loss) / earnings for the period (519) 459 442 158 (81) 459
> Investments** 6 107 3 - 98 214
> Segment assets (note 1) 3 428 8 149 4 285 6 310 520 22 692
> Segment liabilities (note 2) 2 861 7 087 1 580 1 975 945 14 448
> Capital expenditure*** 45 384 615 306 134 1 484
> Depreciation and impairment 93 402 581 97 8 1 181
> Amortisation 11 - - 10 29 50
> * Aveng Steel Fabrication (?ASF?), Aveng Manufacturing Automation & Control Solutions (?A&CS?) and Aveng Manufacturing
> Facades business units are now reported under the Manufacturing and Processing segment, compared to the Construction and
> Engineering: South Africa and Rest of Africa segment in the prior year. Comparatives have been adjusted.
> ** Consists of equity-accounted investments and available-for-sale investments.
> *** Segment capital expenditure includes intangible asset expenditure of R29 million.
>
>
> 31 December 31 December 30 June
> 2013 2012 2013
> (Unaudited) (Unaudited) (Audited)
> Rm Rm Rm
>
> Note 1 - Reconciliation of segment assets
> Total assets of the Group 32 099 28 628 30 413
> Goodwill arising on consolidation (1 443) (1 400) (1 425)
> Intangible assets (222) (163) (184)
> Equity-accounted investments (219) (91) (144)
> Available-for-sale investments (72) (147) (70)
> Deferred tax assets (1 379) (1 011) (1 347)
> Cash and bank balances (5 619) (5 263) (4 551)
> Segment assets 23 145 20 553 22 692
>
> Note 2 - Reconciliation of segment liabilities
> Total liabilities of the Group 18 294 15 396 17 108
> Borrowings and other liabilities (2 568) (1 450) (1 531)
> Deferred tax liabilities (385) (255) (319)
> Taxation payable (181) (161) (210)
> Bank overdrafts (685) (508) (600)
> Segment liabilities 14 475 13 022 14 448
>
> The Group operates in five principal geographical areas:
> REVENUE
>
> Six months Six months Year
> ended ended ended
> 31 December 31 December 30 June
> 2013 2012 2013
> (Unaudited) (Unaudited) (Audited)
> Rm Rm Rm
>
> South Africa 10 249 9 756 19 164
> Rest of Africa including Mauritius 2 084 2 169 4 984
> Australasia and the Pacific Islands* 13 467 11 753 24 661
> Southeast Asia* 1 577 1 207 2 544
> Middle East and other regions 277 102 351
> 27 654 24 987 51 704
> * Included in the Australasia and the Pacific Islands and Southeast Asia geographical
> segments is revenue derived by various operating segments.
>
>
> SEGMENT ASSETS
>
> 31 December 31 December 30 June
> 2013 2012 2013
> (Unaudited) (Unaudited) (Audited)
> Rm Rm Rm
>
> South Africa 11 869 11 049 11 870
> Rest of Africa including Mauritius 2 497 2 585 2 320
> Australasia and the Pacific Islands 7 360 5 852 7 274
> Southeast Asia 1 033 1 012 989
> Middle East and other regions 386 55 239
> 23 145 20 553 22 692
>
>
> CAPITAL EXPENDITURE
>
> 31 December 31 December 30 June
> 2013 2012 2013
> (Unaudited) (Unaudited) (Audited)
> Rm Rm Rm
>
> South Africa 355 431 776
> Rest of Africa including Mauritius 144 169 257
> Australasia and the Pacific Islands 136 147 327
> Southeast Asia 14 35 57
> Middle East and other regions - - 67
> 649 782 1 484
> Notes to the interim condensed consolidated financial statements (continued)
>
>
> 5. Income tax
>
> Six months Six months Year
> ended ended ended
> 31 December 31 December 30 June
> 2013 2012 2013
> (Unaudited) (Unaudited) (Audited)
> Rm Rm Rm
> Current income tax charge 79 216 432
> Deferred tax 34 (57) (265)
> Income tax expense 113 159 167
> Effective tax rate 26,9% 28,6% 26,7%
>
>
> 6. Cash and cash equivalents
>
>
> 31 December 31 December 30 June
> 2013 2012 2013
> (Unaudited) (Unaudited) (Audited)
> Rm Rm Rm
>
> Cash and bank balances 5 619 5 263 4 551
> Less: Bank overdrafts (685) (508) (600)
> Cash and cash equivalents
> 4 934 4 755 3 951
> Cash and bank balances
> at the end of the period
> include the following cash
> and bank balances that are
> restricted from immediate use:
> Group share of cash held by
> joint operations 1 375 966 935
> Guardrisk Life Fund 48 45 40
> 1 423 1 011 975
>
>
> 7. Property, plant and equipment, Investment property and Intangible assets
> During the six months ended 31 December 2013, the Group acquired assets at a cost of
> R649 million (December 2012: R782 million).
>
>
>
> 8. Amounts due from / (to) contract customers
>
> Six months Year
> ended ended
> 31 December 30 June
> 2013 2013
> (Unaudited) (Audited)
> Rm Rm
>
> Uncertified claims and variations (Underclaims) 1 5 535 4 181
> Progress billings received (Overclaims) 2 (1 852) (1 690)
> Uncertified claims and variations less progress billings received 3 683 2 491
> Contract receivables 3 4 653 6 042
> Retention receivables 4 199 174
> 8 535 8 707
> Amounts received in advance 5 (500) (677)
> Net amounts due from contract customers 8 035 8 030
> Disclosed on the statement of financial position as follows:
> Uncertified claims and variations 5 535 4 181
> Contract and retention receivables 4 852 6 216
> Amounts due from customers (current assets) 10 387 10 397
> Progress billings received (1 852) (1 690)
> Amounts received in advance (500) (677)
> Amounts due to customers (current liability) (2 352) (2 367)
> Net amount due from contract customers 8 035 8 030
>
> 1 Revenue not yet certified - recognised based on percentage of completion/measurement and agreed variations.
> 2 Progress billings are amounts billed for work performed on a contract irrespective of payment from the customer.
> 3 Certified revenue invoiced.
> 4 Retentions are amounts of progress billings that are not paid until the payment conditions specified in the
> contracts are fulfilled or until defects have been rectified.
> 5 Advances are amounts received from the customer before the related work is performed.
>
>
> 9. Provisions
>
>
>
> IFRS 2
> share-based
> payment Employee Leave pay Other
> obligation entitlements benefits provisions Total
>
> Balance as at 30 June 2012 34 978 499 660 2 171
> Reallocated/recognised 10 13 135 252 410
> Utilised - (297) (53) - (350)
> Currency adjustment - 27 16 - 43
> Balance as at 31 December 2012 44 721 597 912 2 274
> Reallocated/recognised 11 235 382 447 1 075
> Utilised - (17) (304) - (321)
> Currency adjustment - 27 (26) - 1
> Balance as at 30 June 2013 55 966 649 1 359 3 029
> Reallocated/recognised 16 (25) 149 231 371
> Utilised (10) (289) (130) (327) (756)
> Currency adjustment - 32 28 - 60
> Interest accretion - 2 3 9 14
> Balance as at 31 December 2013 61 686 699 1 272 2 718
>
>
>
>
> 31 December 31 December 30 June
> 2013 2012 2013
> Disclosed as:
> Non-current provisions 1 166 1 091 1 105
> Current provisions 1 552 1 183 1 924
> 2 718 2 274 3 029
>
>
> 10. Related party transactions
>
> During the interim period Aveng Limited and its subsidiaries, in the ordinary course of business,
> entered into various sale and purchase transactions with equity-accounted investments. There have
> been no significant changes to the nature of related party transactions since 30 June 2013.
> There were no related party transactions with directors or entities in which the directors have a
> material interest.
>
>
> 11. Events after reporting date
>
> Mr HJ Verster was appointed as Group Chief Executive Officer (CEO) effective 11 February 2014. Mr
> Verster has not relinquished his statutory duties in terms of Section 3.84(g) of the JSE Listings
> Requirements and will continue in his capacity as acting Financial Director until a new Financial
> Director is employed.
> The directors are not aware of any matter or circumstance arising since the end of the reporting
> period not otherwise dealt with in the Group's interim condensed results, which significantly affects
> the financial position of the Group at 31 December 2013 or the results of its operations or cash
> flows for the period then ended.
>
>
> 12. Major acquisitions and disposals
>
> There have been no major acquisitions or disposals by the Group during the interim reporting
> period.
>
>
> Interim condensed consolidated statement of changes in equity for the six months ended 31 December
> 2013
>
>
>
> Foreign Equity-settled
> Total currency share-based
> Share Share issued translation payment Insurance
> capital premium capital reserve reserve reserves
> Rm Rm Rm Rm Rm Rm
>
> Six months ended 31 December 2012 (Unaudited)
> Balance at 1 July 2012 19 1416 1435 546 - 56
> Earnings for the period - - - - - -
> Other comprehensive earnings for the period - - - 164 - 1
> Total comprehensive earnings for the period - - - 164 - 1
> Dividends - - - - - -
> Total contributions and distributions recognised
> directly in equity - -
>