INTEGRATED
REPORT 2019
Summarised consolidated financial results
Statement of profit and loss and other comprehensive income
for the year ended 31 August 2019
| 2019 | 2018 | |
| Figures in Rand | '000 | '000 |
| Revenue | 1 959 292 | 638 893 |
| Cost of sales | (1 400 019) | (440 935) |
| Gross Profit | 559 273 | 197 958 |
| Other operating income | 10 046 | 3 293 |
| Other operating gains/losses | (44 434) | (7 321) |
| Goodwill impairment | - | (4 957) |
| Equity-settled share-based payment expense | - | (11 809) |
| Listing costs expensed | - | (6 831) |
| Other operating expenses | (562 230) | (199 536) |
| Finance income | 322 856 | 226 954 |
| Finance costs | (10 918) | (1 754) |
| Loss from equity-accounted investments | (1 608) | - |
| Profit before taxation | 272 985 | 195 997 |
| Income tax expense | (91 186) | (48 040) |
| Profit for the year | 181 799 | 147 957 |
| Other comprehensive income: | ||
| Items that will not subsequently be reclassified to profit or loss: | ||
| Gains on property revaluation | 221 | - |
| Total items that will not subsequently be reclassified to profit or loss net of tax | 221 | - |
| Items that will subsequently be reclassified to profit or loss: | ||
| Exchange differences on translating foreign operations | (250) | (28) |
| Income tax relating to items that may be reclassified | 32 | - |
| Total items that will subsequently be reclassified to profit or loss | (218) | (28) |
| Other comprehensive income for the year net of taxation | 3 | (28) |
| Total comprehensive income for the year | 181 802 | 147 929 |
| Profit attributable to: | ||
| Owners of AYO | 150 599 | 144 286 |
| Non-controlling interest | 31 200 | 3 671 |
| 181 799 | 147 957 | |
| Total comprehensive income attributable to: | ||
| Owners of AYO | 150 602 | 144 258 |
| Non-controlling interest | 31 200 | 3 671 |
| 181 802 | 147 929 | |
| Earnings per share (cents) | ||
| Basic earnings per share (cents) | 43.76 | 47.20 |
Statement of financial position
at 31 August 2019
| 2019 | 2018 | |
| Figures in Rand | '000 | '000 |
| ASSETS Non-current assets | ||
| Property, plant and equipment | 102 776 | 7 169 |
| Goodwill | 131 152 | 35 248 |
| Intangible assets | 79 828 | 17 743 |
| Investment in joint ventures | 33 | 33 |
| Loans to related party companies | 108 562 | 1 989 |
| Loans receivable | 156 764 | - |
| Investments | 24 619 | - |
| Other financial assets | 12 355 | 6 890 |
| Finance lease receivables | 350 | - |
| Operating lease asset | 110 | - |
| Deferred tax | 36 913 | 3 710 |
| 653 462 | 72 782 | |
| Current assets | ||
| Inventories | 178 991 | 12 378 |
| Loans receivable | 17 199 | - |
| Trade and other receivables | 584 491 | 183 222 |
| Other financial assets | 12 242 | 93 390 |
| Finance lease receivables | 669 | - |
| Current tax receivable | 2 329 | 662 |
| Cash and cash equivalents | 3 680 216 | 4 308 698 |
| 4 476 137 | 4 598 350 | |
| Total assets | 5 129 599 | 4 671 132 |
| Equity and liabilities Equity | ||
| Stated capital | 4 444 410 | 4 444 410 |
| Reserves | (30 470) | 11 777 |
| Retained income | (77 458) | (7 501) |
| Equity attributable to shareholders of AYO | 4 336 482 | 4 448 686 |
| Non-controlling interest | 134 392 | 20 294 |
| 4 470 874 | 4 468 980 | |
| Liabilities Non-current liabilities | ||
| Other financial liabilities | 797 | - |
| Derivatives | 3 934 | - |
| Finance lease liabilities | 2 853 | 575 |
| Employee benefit obligation | 6 665 | - |
| Deferred income | 11 244 | - |
| Contingent consideration liability | 37 549 | - |
| 63 042 | 575 | |
| Current liabilities | ||
| Trade and other payables | 443 836 | 132 925 |
| Loans from related party companies | 20 863 | - |
| Loans from shareholders | - | 5 001 |
| Other financial liabilities | 38 500 | 1 133 |
| Finance lease liabilities | 12 683 | 389 |
| Operating lease liability | - | 47 |
| Deferred income | 18 589 | - |
| Current tax payable | 24 124 | 41 636 |
| Provisions | 26 094 | 15 390 |
| Dividend payable | 5 093 | - |
| Contingent consideration liability | 4 795 | - |
| Bank overdraft | 1 106 | 5 056 |
| 595 683 | 201 577 | |
| Total liabilities | 658 725 | 202 152 |
| Total equity and liabilities | 5 129 599 | 4 671 132 |
Statement of cash flows
for the year ended 31 August 2019
| 2019 | 2018 | |
| Figures in Rand | '000 | '000 |
| Cash flows from operating activities | ||
| Cash receipts from customers | 1 950 208 | 306 388 |
| Cash paid to suppliers and employees | (2 000 528) | (365 319) |
| Cash generated from operations | (50 320) | (58 931) |
| Finance income | 285 644 | 215 243 |
| Finance costs | (6 466) | (2 220) |
| Dividend income | 3 021 | - |
| Tax paid | (117 794) | (16 735) |
| Net cash from operating activities | 114 085 | 137 357 |
| Cash flows from investing activities | ||
| Acquisition of property, plant and equipment | (31 775) | (4 636) |
| Proceeds from disposal of property, plant, equipment | 14 425 | 58 |
| Acquisition of intangible assets | (19 937) | (2 230) |
| Sale of intangible assets | 93 | - |
| Proceeds from disposal of subsidiary | 1 203 | (314) |
| Acquisition of subsidiaries, net of cash acquired | (112 306) | - |
| Loans advanced to related party companies | (103 547) | 3 029 |
| Other loans advanced | (169 670) | (108) |
| Purchase of investments at fair value | (90 659) | - |
| Amounts advanced to acquire other financial assets | (809 366) | (63 832) |
| Amounts repaid from other financial assets | 901 226 | - |
| Funds held in Trust | (101 294) | - |
| Proceeds from assets held for sale | - | 827 |
| Costs incurred on internally generated intangible assets | - | (3 823) |
| Finance lease assets receipts | 7 135 | - |
| Net cash to investing activities | (514 472) | (71 029) |
| Cash flows from financing activities | ||
| Loan from shareholder repaid | (5 000) | - |
| Proceeds from loans from shareholders loan | - | 6 950 |
| Proceeds on share issue | - | 4 338 594 |
| Transaction costs related to share issue | - | (78 314) |
| Dividends paid | (221 108) | (17 646) |
| Dividends paid to minorities | (2 520) | - |
| Payments for contingent consideration arrangements | (4 460) | - |
| Repayment of other financial liabilities | (1 133) | (4 583) |
| Repayment of loans from group companies | - | (77 424) |
| Finance lease repayments | (10 254) | (1 384) |
| Loan received from related party companies | 20 330 | - |
| Net cash from financing activities | (224 145) | 4 166 193 |
| Total cash movement for the year | (624 532) | 4 232 521 |
| Cash at the beginning of the year | 4 303 641 | 71 120 |
| Total cash at the end of the year | 3 679 109 | 4 303 641 |
Statement of changes in equity
for the year ended 31 August 2019
Stated capital | Share premium | Total share capital | Foreign currency translation reserve | Revaluation reserve | NCI put options reserve |
|
| Figures In Rand | '000 | '000 | '000 | '000 | '000 | '000 |
| Balance at 1 September 2017 | 850 | 183 280 | 184 130 | (4) | - | - |
| Total comprehensive income for the year | - | - | - | (28) | - | - |
| Profit for the year | - | - | - | - | - | - |
| Total other comprehensive income for the year | - | - | - | (28) | - | - |
| Issue of shares | 4 338 594 | - | 4 338 594 | - | - | - |
| Capitalised listing costs | (78 314) | - | (78 314) | - | - | - |
| Equity-settled share-based payment | - | - | - | - | - | - |
| Dividends | - | - | - | - | - | - |
| Disposal of subsidiary | - | - | - | - | - | - |
| Balance at 1 September 2018 | 4 261 130 | 183 280 | 4 444 410 | (32) | - | - |
| Total comprehensive Income for the year | - | - | - | (218) | 221 | - |
| Profit for the year | - | - | - | - | - | - |
| Total other comprehensive income for the year | - | - | - | (218) | 221 | - |
| Transfer between share premium and share capital | 9 835 | (9 835) | - | - | - | - |
| Derecognition relating to sale of business | - | - | - | - | - | - |
| Raising of NCI put option liabilities | - | - | - | - | - | (14 795) |
| Dividends | - | - | - | - | - | - |
| Business combination | - | - | - | - | - | - |
| Changes in ownership of acquisition of minorities | - | - | - | - | - | - |
| Balance at 31 August 2019 | 4 270 965 | 173 445 | 4 444 410 | (250) | 221 | (14 795) |
Share-based payment reserve | Changes in ownership reserve | Total reserves | Retained income | Total attributable to shareholders of AYO | Non-controlling interests | Total equity |
| '000 | '000 | '000 | '000 | '000 | '000 | '000 |
| - | - | (4) | (151 787) | 32 339 | 34 752 | 67 091 |
| - | - | (28) | 144 286 | 144 258 | 3 671 | 147 929 |
| - | - | - | 144 286 | 144 286 | 3 671 | 147 957 |
| - | - | (28) | - | (28) | - | (28) |
| - | - | - | - | 4 338 594 | - | 4 338 594 |
| - | - | - | - | (78 314) | - | (78 314) |
| 11 809 | - | 11 809 | - | 11 809 | - | 11 809 |
| - | - | - | - | - | (17 646) | (17 646) |
| - | - | - | - | - | (483) | (483) |
| 11 809 | - | 11 777 | (7 502) | 4 448 686 | 20 294 | 4 468 980 |
| - | - | 3 | 150 599 | 150 602 | 31 200 | 181 802 |
| - | - | - | 150 599 | 150 599 | 31 200 | 181 799 |
| - | - | 3 | - | 3 | - | 3 |
| - | - | - | - | - | - | - |
| - | - | - | 10 | 10 | (384) | (374) |
| - | - | (14 795) | - | (14 795) | - | (14 795) |
| - | - | - | (223 681) | (223 681) | (3 730) | (227 411) |
| - | - | - | - | - | 101 172 | 101 172 |
| - | (27 455) | (27 455) | 3 115 | 24 340 | (14 160) | (38 500) |
| 11 809 | (27 455) | (30 470) | (77 058) | 4 336 482 | 134 392 | 4 470 874 |
