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BLUE LABEL INTEGRATED ANNUAL REPORT 2015
FINANCIAL DIRECTOR’S REPORT
CONTINUED
loans granted, R53 million to capital expenditure
and R20 million to the settlement of contingent
purchase considerations for RMCS and Panacea
Mobile. The above funds applied to investing
activities were partially offset by proceeds received
of R95 million on the disposal of Ukash.
After applying R19 million to the acquisition of
treasury shares and a dividend payment of
R187 million to shareholders and non-controlling
interests, the balance of cash on hand amounted
to R788 million.
Although cash on hand declined by R402 million,
inventory of R1.4 billion is a highly liquid commodity.
FORFEITABLE SHARE SCHEME
Forfeitable shares totalling 2 937 836 (2014:
2 782 541) were issued to qualifying employees.
During the period 419 998 (2014: 1 074 880) shares
were forfeited and 3 819 409 (2014: 3 629 922)
shares vested.
DIVIDEND NUMBER 6
The Group’s current dividend policy is to declare an
annual dividend. On 18 August 2015, the board
approved a gross ordinary dividend (number 6)
of 31 cents per ordinary share (26.35 cents per
ordinary share net of dividend withholding tax) for
the year ended 31 May 2015. This dividend of
R209 097 803, inclusive of withholding tax, equates
to a 2.62 cover on headline earnings. The dividend
for the year ended 31 May 2015 has not been
recognised in the financial statements as it was
declared after this date.
LITIGATION UPDATE
The arbitration proceedings between APSN and
the former subsidiary of Telkom SA SOC Limited
(Telkom), Multi-Links Telecommunications Limited
(Multi-Links) have been settled.
The litigation action in the High Court of South
Africa between Telkom and Multi-Links, on the one
hand, and Blue Label, Africa Prepaid Services,
APSN and certain individuals, on the other, has
been settled.
In terms of the settlement agreement all claims and
counterclaims have been withdrawn and all of the
parties have agreed that they will have no further
claims against one another arising out of the
disputes forming the subject of both the arbitration
proceedings and the action, including any claims
for costs.
APPRECIATION
I wish to express my gratitude to the Group’s finance
team for their professional input and dedication.
Dean Suntup
Financial Director
23 October 2015