Consolidated annual financial statements Group statement of changes in equity for the year ended 28 February 2015

 

Share capital US$’000

Share premium US$’000

Foreign currency translation reserve US$’000

Non-
distri-
butable reserves US$’000

Share- based payments reserve US$’000

Distri-
butable
reserves US$’000

Equity attributable to equity holders
of 
the parent US$’000

Non-
controlling interest US$’000

Total equity US$’000

Balance at 1 March 2013

218

160 602

(7 507)

25 292

(826)

687 654

865 433

51 578

917 011

Total comprehensive income/(expense) recognised for the year

(33 482)

2 421

584

53 359

22 882

1 980

24 862

Profit attributable to the owners of the parent

55 780

55 780

55 780

Profit attributable to the non-controlling interest

8 520

8 520

Translation of equity loans

12 700

12 700

12 700

Tax on translation of equity loans

(3 301)

(3 301)

(3 301)

Gain/loss reclassified to profit and loss on disposal of foreign operation

(566)

(566)

(566)

Exchange differences arising on translation to presentation currency

(42 315)

584

(41 731)

(6 540)

(48 271)

Transfers and other items

2 421

(2 421)

Translation of share capital and share premium

(39)

(28 797)

28 836

New share issues

5

22 541

22 546

22 546

Capital distributions

(31 594)

(31 594)

(4 327)

(35 921)

Acquisitions of additional interests from non-controlling interests

(2 009)

(2 009)

5 659

3 650

Recognition of put option liability

(1 864)

(1 864)

(1 864)

Derecognition of put option liability

131

131

131

Disposals of additional interests from non-controlling interests

(265)

(265)

(2 022)

(2 287)

Transfers within classes of equity

488

(689)

(201)

(201)

Equity-settled deferred purchase consideration

(3 333)

(3 333)

(3 333)

Share-based payments

(109)

(109)

(109)

Balance at 28 February 2014

184

122 752

(40 989)

49 697

(351)

740 324

871 617

52 868

924 485

Total comprehensive income/(expense) recognised for the year

(62 034)

(276)

(765)

74 089

11 014

6 099

17 113

Profit attributable to the owners of the parent

73 772

73 772

73 772

Profit attributable to the non-controlling interest

14 856

14 856

Translation of equity loans

(5 279)

(5 279)

(5 279)

Tax on translation of equity loans

1 480

1 480

1 480

Exchange differences arising on translation to presentation currency

(58 235)

(765)

(59 000)

(8 757)

(67 757)

Transfers and other items

(276)

317

41

41

Translation of share capital and share premium

(15)

(9 885)

9 900

New share issues

4

21 243

21 247

21 247

Capital distributions to shareholders

*

(17 226)

(17 226)

(17 226)

Dividends to non-controlling interests

(26 066)

(26 066)

Dividend to shareholders

2

9 827

(16 060)

(6 231)

(6 231)

Acquisitions of additional interests from non-controlling interests

(2 284)

(8 339)

(10 623)

9 210

(1 413)

Disposals of additional interests from non-controlling interests

(803)

(803)

(512)

(1 315)

Share-based payments

1 855

1 855

1 855

Balance at 28 February 2015

175

126 711

(105 307)

50 179

739

798 353

870 850

41 599

912 449

* Less than US$1 000.

Non-distributable reserves relate to the translation of share capital and share premium of the parent company, the recognition of the minority put option liabilities and reserves recognised in the recording of changes in holdings of subsidiaries.

Foreign currency translation reserve includes the translation of subsidiaries and the parent company into presentation currency.

The Group issues equity-settled and cash-settled share-based incentives to certain employees. Equity-settled share-based payments are measured at fair value at the date of grant. The fair value determined at the grant date of the equity-settled share-based payments is expensed on a straight-line basis over the vesting period, based on the Group’s estimate of the shares that will eventually vest.

A liability equal to the portion of services received is recognised at the current fair value determined at each reporting date for cash-settled share-based payments.

Fair value adjustments on put option liabilities of US$0.3 million (FY14: US$2.4 million) were transferred from non-distributable reserves to distributable reserves.

SCRIP DISTRIBUTIONS WITH CASH DIVIDEND ALTERNATIVE – FY15

The Company paid an interim scrip distribution with cash dividend alternative of 88 ZAR cents (approximately 8 US cents) to shareholders on 1 December 2014. The number of scrip distribution shares to which each shareholder became entitled (to the extent that such shareholder had not elected to receive the cash dividend) was determined by reference to the ratio that 88 ZAR cents bore to the volume weighted average price of an ordinary Datatec share traded on the JSE during the 30-day trading period ending on Thursday, 13 November 2014, which was 5 378 ZAR cents, ie 1.63630 scrip distribution shares for every 100 ordinary shares held.

The result of the shareholder election in relation to the cash dividend alternative to the scrip distribution was that 2 018 910 new ordinary shares were issued on 1 December 2014 to shareholders who did not elect to receive the cash dividend in respect of all or part of their shareholding, resulting in a capitalisation of the distributable retained profits of the Company of ZAR108.6 million. The proportion of the Company’s total shares which received the scrip distribution was 61.8%. Shareholders holding 76 189 934 ordinary shares elected to receive the gross cash dividend of 88 ZAR cents per ordinary share resulting in a total gross cash dividend of ZAR67.0 million which was paid out of the distributable retained profits of the Company. The proportion of the Company’s total shares which received the cash dividend was 38.2%.

The Board has declared a final scrip distribution with cash dividend alternative of 108 ZAR cents (approximately 9 US cents) in relation to the financial year ended 28 February 2015 which will be payable to shareholders on the Register on 17 July 2015.  The number of scrip distribution shares to which each shareholder will became entitled (to the extent that such shareholder has not elected to receive the cash dividend) will be determined by reference to the ratio that 108 ZAR cents bore to the volume weighted average price of an ordinary Datatec share traded on the JSE during the 30-day trading period ending on Thursday, 2 July 2015.

CAPITAL DISTRIBUTIONS – FY14

For the previous financial year ended February 2014 the Group paid an interim capital distribution to shareholders of 80 ZAR cents (approximately 8 US cents) per share on 2 December 2013 and a final capital distribution of 93 ZAR cents (approximately 9 US cents) per share on 21 July 2014, making a total capital distribution to shareholders for the financial year ended 28 February 2014 of 173 ZAR cents (approximately 17 US cents).