Notes to the consolidated annual financial statements

for the year ended 30 September

		2008	2007	2006
		Rm	Rm	Rm
12.	Discontinued operations and assets classified as held for sale
	Following the decision to dispose of the Car rental Scandinavia
	business and the unbundling of Coatings, these segments have
	been classified as discontinued in the current year and prior years
	have been restated accordingly.
	Results from discontinued operations are as follows:
	Revenue	1 900	10 502	12 016
	Operating profit	81	2 094	2 421
	Fair value adjustments on financial instruments	(3)	5	5
	Finance costs	(91)	(174)	(140)
	Income from investments	13	79	82
	Profit before exceptional items		2 004	2 368
	Exceptional items	(335)	(72)	(3)
	(Loss)/profit before taxation	(335)	1 932	2 365
	Taxation	(7)	(721)	(834)
	(Loss)/profit after taxation	(342)	1 211	1 531
	Income from associates and joint ventures	5	21	22
	Net (loss)/profit of discontinued operations before loss on disposal	(337)	1 232	1 553
	Profit/(loss) on disposal of discontinued operations before taxation*	168	(150)	(185)
	Realisation of translation reserve	201	87
	Taxation effect of disposal	(43)	3	29
	Net profit/(loss) on disposal of discontinued operations after taxation	326	(60)	(156)
	(Loss)/profit from discontinued operations per income statement	(11)	1 172	1 397
	Included in the (loss)/profit from discontinued operations
	are the following non-trading items:
	(Loss)/profit on sale of properties and investments	(2)	29	(5)
	Profit/(loss) on sale of plant and equipment (excluding rental assets)
	and intangible assets		1	(3)
	Net impairment of goodwill	(363)	(150)
	Net impairment of other assets and costs to sell	(2)	(98)	(156)
	The cash flows from discontinued operations are as follows:
	Cash flows from operating activities	289	550	1 861
	Cash flows from investing activities	689	32	(2 028)
	Cash flows from financing activities	(553)	(610)	234
	* Based on disposal prices agreed with external parties

	Total			Rental fleets,
	Held	Car rental		leasing and
	for sale	Scandinavia¹	Subaru²	other assets³
	Rm	Rm	Rm	Rm
The major classes of assets and liabilities classified as held for sale are as follows:
2008
Property, plant and equipment	342	62	3	277
Intangible assets	11	9	2
Vehicle rental fleet	2 102	2 102
Inventories	117		117
Trade and other receivables	521	471	50
Deferred taxation assets	11		11
Finance lease receivables	13			13
Tax overpaid	8	7	1
Cash balances	31	29	2
Assets classified as held for sale	3 156	2 680	186	290
Trade and other payables – short and long-term	(464)	(435)	(29)
Other non-interest-bearing liabilities	(176)	(165)	(11)
Interest-bearing liabilities	(1 356)	(1 280)	(76)
Total liabilities associated with assets classified as held for sale	(1 996)	(1 880)	(116)
Net assets classified as held for sale	1 160	800	70	290
	Total		Rental fleets,
	Held	Scientific	leasing and
	for sale	Laboratory⁴	other assets³
	Rm	Rm	Rm
2007
Property, plant and equipment and intangibles	662	212	450
Goodwill	260	260
Vehicle rental fleet	12		12
Inventories	231	231
Trade and other receivables	260	260
Deferred taxation assets	9	9
Finance lease receivables	13		13
Assets classified as held for sale	1 447	972	475
Trade and other payables	(174)	(174)
Other non-interest-bearing liabilities	(36)	(36)
Total liabilities associated with assets classified as held for sale	(210)	(210)
Net assets classified as held for sale	1 237	762	475

	Total	Rental fleets,		Handling	Cement	Coatings
	Held	leasing and		leasing	Afripack	Australia
	for sale	other assets³	Steel tube⁵	assets⁶	division⁷	restructuring⁸
	Rm	Rm	Rm	Rm	Rm	Rm
2006
Property, plant and equipment and
intangibles	815	248	241	250	52	24
Investment in associates	5		5
Vehicle rental fleet	1	1
Inventories	353		330		23
Trade and other receivables	328		295		27	6
Cash on hand	27				27
Finance lease receivables	1 467			1 467
Assets of disposal group held for sale
before impairment loss	2 996	249	871	1 717	129	30
Impairment loss on write-down to
fair value	(156)		(156)
Assets classified as held for sale after
impairment losses	2 840	249	715	1 717	129	30
Interest-bearing liabilities	(642)		(42)	(597)	(3)
Trade and other payables – short and
long-term	(419)		(305)		(106)	(8)
Total liabilities associated with assets
classified as held for sale	(1 061)		(347)	(597)	(109)	(8)
Net assets classified as held for sale	1 779	249	368	1 120	20	22

	1.	A decision has been taken to sell the Car rental Scandinavian business. A plan has been formulated and an agreement has been signed between Barloworld and merchant bankers authorising the latter to seek buyers for the business. The sale of the business is expected to take place by September 2008. The net book value of encumbered rental assets amounts to R849 million.
	2.	An agreement has been signed to sell 50% of the company shareholding in Subaru Southern Africa (Pty) Limited to Japan’s Toyota Tsusho Corporation with effect on 1 November 2008. In terms of IFRS5 Non-current Assets Held for Sale and Discontinued Operations, the assets held in Subaru have been classified as held for sale. The sale will result in Subaru becoming a joint venture which will no longer be consolidated by the group.
	3.	Rental assets become available for sale on an ongoing basis as and when they are removed from rental fleets.
	4.	The Scientific Laboratory group of businesses was sold to Nova Capital Management, the specialist acquirer of private equity and corporate portfolios, for R1 077 million (GBP75 million) in December 2007. The Scientific Melles Griot division was sold for R348 million (GBP24 million) in July 2007.
	5.	The disposal of the steel tube segment for R426 million was concluded on 1 December 2006.
	6.	The disposal of Handling leasing assets in the UK was concluded in November 2006 for a gross consideration of R1 684 million before settling the borrowings related to the assets.
	7.	During the 2004 financial year, PPC sold 75% of its share in Afripack (Pty) Limited (Afripack) to a black empowerment and management consortium. The purchase price was funded via PPC’s subscription to redeemable preference shares and cash proceeds. Afripack continued to be consolidated into the group results, in terms of IAS 27 (Revised) Consolidated and Separate Financial Statements as PPC management continued to have effective control of Afripack until the preference shares were redeemed in October 2006. Due to the preference share redemption, Afripack has been consolidated as an asset classified as held for sale in line with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations.
	8.	The Coatings restructuring in 2006 related to the planned disposal of the Bristol stores in Australia. A significant part of the Coatings Australia business was subsequently sold to PPG in June 2007 for R258 million (AU$42 million).

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