Blue Label Telecoms Integrated Annual Report 2016

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For the year ended 31 May 2016
BLUE LABEL INTEGRATED ANNUAL REPORT 2016
84
Notes
Share
capital
R’000
Share
premium
R’000
Treasury
shares
R’000
Retained
earnings
R’000
Balance as at 31 May 2014 * 4 012 359 (66 527) 2 222 685
Net profit for the year — — — 577 617
Other comprehensive loss — — — —
Total comprehensive income — — — 577 617
Treasury shares purchased 6 — — (19 131) —
Equity compensation benefit scheme shares vested — — 17 187 —
Equity compensation benefit movement — — — —
Share of equity movement in associates — — — —
Associate disposed — — — 3 081
Dividends declared — — — (182 117)
Transaction with non-controlling interest reserve
movement — — — —
Non-controlling interest acquired — — — 1 292
Non-controlling interest disposed of — — — —
Balance as at 31 May 2015 * 4 012 359 (68 471) 2 622 558
Net profit for the year — — — 691 590
Other comprehensive income — — — —
Total comprehensive income — — — 691 590
Treasury shares purchased 6 — — (23 052) —
Equity compensation benefit scheme shares vested — — 21 676 —
Equity compensation benefit movement — — — —
Share of equity movement in associates — — — —
Dividends declared — — — (209 098)
Balance as at 31 May 2016 * 4 012 359 (69 847) 3 105 050
* Less than R1 000.
1 The restructuring reserve arose as a result of the restatement of Group comparatives, as required in terms of the principles of predecessor
accounting. This reserve represents the difference between the fair value of the entities under the Group’s control and their respective net
asset values, as at the assumed restructure date of 1 June 2006.
2 The non-distributable reserve arose as a result of BLT’s share of share premium issued by associate companies pre-2010.
3 The transactions with non-controlling interest reserve relates to the excess payments over the carrying amounts arising on transactions with
non-controlling shareholders as these are treated as equity participants.
4 This relates to the Group’s movement in equity compensation benefit (refer to note 5.2) as well as the Group’s share of the movement in
equity compensation benefit of associate companies (refer to note 2.1).
5 The share-based payment reserve relates to a BEE transaction concluded by Cigicell Proprietary Limited, a subsidiary of BLT. In September
2009 Ventury Proprietary Limited sold 26% of its stake in Cigicell Proprietary Limited to Sangrilor Proprietary Limited. The Group previously
did not recognise this disposal and accounted for Cigicell Proprietary Limited as a wholly owned subsidiary until the purchase consideration
was settled by Sangrilor Proprietary Limited. The purchase consideration was settled through the declaration of dividends by Cigicell
Proprietary Limited on 1 April 2015. On this date the share-based payment reserve was released to retained earnings. The Group accounted
for this sale on that date.
GROUP STATEMENT OF CHANGES IN EQUITY