Commentary  strip  Review of operations  strip  Corporate governance  strip  Sustainability report  strip  Annual financial statements  strip  
Home Search this site    Print this page Email us       

      
 

Notes to the consolidated annual financial statements
  for the year ended 30 September
   
 
   
2008  
2007  
2006  
   
Rm  
Rm  
Rm  
7. Long-term financial assets
 
  
 
  Listed investments at fair value
160  
332  
10  
  Unlisted investments at fair value
47  
28  
37  
  Non-current portion of preference shares*
 
 
2  
  Investment in Portland Holdings Limited
  
  
291  
  Bills and leases discounted with recourse and repurchase obligations
110  
104  
7  
  Pension fund assets (note 17)
 
6  
5  
  Other receivables
175  
119  
136  
  Other derivatives
47  
53  
76  
  Other non-current loans and deposits
4  
5  
8  
  Barloworld Share Purchase Scheme
25  
39  
25  
   
568  
686  
597  
  Per category:
 
  
  
  Financial assets at fair value through profit or loss
 
  
  
  – Designated as such at initial recognition
160  
332  
0  
  – Held for trading items
36  
41  
34  
  Available-for-sale financial assets
47  
28  
47  
  Loans and receivables
313  
267  
178  
  Derivative assets designated as effective hedging instruments
12  
12  
42  
  Other assets
  
6  
296  
   
568  
686  
597  
  Per business segment:
 
  
  
  Continuing operations
 
  
  
  – Equipment
17  
14  
8  
  – Automotive
43  
7  
48  
  – Handling
162  
116  
41  
  – Logistics
16  
3  
3  
  – Corporate and other
330  
529  
93  
  Total continuing operations
568  
669  
193  
  Discontinued operations
 
  
  
  – Cement
 
  
388  
  – Coatings
 
17  
13  
  – Scientific
 
  
3  
  Total discontinued operations
 
17  
404  
  Total per balance sheet
568  
686  
597  
  * Preference shares
 
  
  
  The investment in preference shares is encumbered as per notes
 
  
  
  15 and 30. The short-term portion of the investments was
 
  
  
  transferred to trade and other receivables (note 10).
 
  
  
   
 
  
  
  Unlisted preference shares at amortised cost (note 38)
2  
100  
  Transferred to trade and other receivables (note 10)
  
(98) 
  Unbundling of Cement
(2) 
  
  Non-current portion of preference shares
  
  
2  
  Available-for-sale investments (note 38)
  
  
  Listed investments opening balance
10  
8  
  Fair value adjustment in current year
  
2  
  Impairment of investments~
(10) 
  
  Fair value of listed investments
0  
0  
10  
  Unlisted investments opening balance
28  
37  
36  
  Additions and other movements
20  
24  
1  
  Impairment of investments@
(2) 
  
  
  Unbundling of Cement
(27) 
  
  Fair value adjustment in current year
1  
(6) 
  
  Fair value of unlisted investments
47  
28  
37  
  Investment in Portland Holdings Limited
  
  
291  
  Other listed investments
  
  
  PPC shares^
160  
332  
  
  Valuation of shares:
  
  
  Market value – listed investments
160  
332  
10  
  Directors’ valuation of unlisted investments
47  
28  
37  
  Directors’ valuation of Portland Holdings Limited
  
291  
  Total fair value
207  
360  
338  
  Barloworld Share Purchase Scheme
Included are loans to executive directors for the purchase of shares amounting to R7.7 million (2007: R8.6 million; 2006: R17 million). The loans are secured by pledge of the shares and are repayable within 10 years of granting of the option or within nine months of death or immediately on ceasing to be an employee, except in the case of retirement. Interest rates vary in accordance with the terms and provisions of the trust deed and range from 8.85% to 12% (2007: 4.39% to 10%, 2006: 3.17% to 8.5%).

Investment in Portland Holdings Limited (Porthold)
The results of Porthold, a wholly owned Zimbabwean subsidiary of Pretoria Portland Cement Company Limited (PPC) have not been consolidated in the group results for the year ended 30 September 2006 and for the period to unbundling of PPC as at 16 July 2007.

There were significant constraints impacting on the normal operation of Porthold and the board concluded that management did not have the ability to exercise effective control over the business. In view of the circumstances, the results of Porthold continued to be excluded from the group results until unbundling of PPC and were accounted for on a fair value investment basis.

The summarised results of Porthold, adjusted for hyperinflation and converted back to rands, were:  
 
2006  
 
Rm  
Revenue
409.5  
Operating profit
30.3  
Loss before taxation
(34.0) 
Taxation
(2.6) 
Loss after taxation
(31.4) 
Total assets
972.0  
Total liabilities
322.9  
Exchange rate (Z$: Rand)
34  
Movement in the inflation index for the year (%)
1 024  
The effect of not consolidating Porthold – increase in earnings per share (cents)
10.9  
~ In 2007 these listed investments were impaired. Previously the investments were retained at pound sterling carrying value due to uncertainty in determining appropriate Zimbabwean dollar exchange rate to arrive at a realistic market value. See note 38 for details of these listed investments.

@ The impairment occurred in Car rental Scandinavia.

^  PPC shares
   The investment is held by Barloworld for the commitment to deliver PPC shares to the option holders following the unbundling of PPC. Refer to note 34.4 for details.