1. These condensed financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting, using accounting policies that are in line with IFRS and consistently applied to prior periods, except for IFRS 3 Business Combinations, IFRS 8 Operating Segments, IAS 1 Presentation of Financial Statements, IAS 23 Borrowing Costs and IAS 27 Consolidated and Separate Financial Statements which were implemented during the period in accordance with the transitional provisions.
2. During the period under review, no Massmart shares were bought in the market. In the prior period the total share buyback (including shares bought in the market by the Share Trust) was 0,7 million at an average price of R80,49 totalling R56,3 million.
3. The impairment of assets in the prior period relates to impairment of computer software in Shield.
4. Security costs relating to properties in Masscash have been reallocated from ‘Other operating costs’ to ‘Occupancy costs’ in December 2008 (R15,8 million) and June 2009 (R34,9 million), in line with the Group’s accounting policy.
5. The Massmart BEE transaction, which came into operation in October 2006, gave rise to an IFRS 2 Share-based Payment charge of R39,1 million (2008: R30,6 million). The ‘A’ and ‘B’ preference shares have been issued to the Thuthukani Trust and the Black Scarce Skills Trust respectively.
6. The ‘A’ preference shareholders dividend amount of R13,5 million (2008: R11,8 million) represents the final cash dividend of 100,5 cents paid to all Thuthukani participants. In the prior period, the Thuthukani dividend was equivalent to 75% of the ordinary dividend, and for the current period it is equivalent to 100%.
7. The profit on assets classified as held for sale in the prior period relates to the cash sale of the Massdiscounters’ retail debtors’ book effective from 30 June 2008, immediately after closing the 2008 financial year.
8. Other non-current liabilities and provisions include the lease smoothing liability of R471,6 million (2008: R464,6 million).
9. The net asset value of the businesses acquired during the period was R36,2 million (2008: R12,9 million) on the date of acquisition.
10. In the prior year the June 2009 figure was incorrectly disclosed as R9 959,6 million.
11. Related party transactions include private aircraft, used from time to time, in the normal course of business by Massmart and its divisions and hired from competitively selected charter companies, two of which operate aircraft indirectly beneficially owned by Mr MJ Lamberti.
12. Due to Christmas trading, Massmart’s earnings are weighted towards the six months to December.
13. These results have been reviewed by independent external auditors, Deloitte & Touche, and their unmodified review opinion is available for inspection at the registered office. The review was performed in accordance with ISRE 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity.