LENMED AIR 2019.pdf

Group Financial Results The Group changed its accounting policy for the determination of the carrying amount of land and buildings from the revaluation method to the cost method. The change in accounting policy has been accounted for retrospectively and the comparative statements for 2018 have been restated. This change has resulted in an increase in net profit after tax of R841 971 (2018: R841 971). Refer to note 29 for further information. The Group’s earnings before interest, taxation, depreciation and amortisation (EBITDA) amounted to R446 471 496 (2018: R393 598 308). The Group’s profit before taxation for the year amounted to R228 737 976 (2018 restated: R245 201 330) before deducting taxation of R53 242 690 (2018 restated: R54 389 290), resulting in profit after taxation for the year of R175 495 286 (2018 restated: R190 811 800). Lenmed Investments Limited share of aggregate profits after tax from subsidiaries is R142 759 511 (2018 restated: R158 240 869). The full results of the Group are set out in the attached consolidated annual financial statements. For further commentary please refer to the other reports detailed in the annual integrated report. The annual financial statements of the company are presented separately from the consolidated annual financial statements and were approved by the directors on 28 May 2019, the same date as the consolidated annual financial statements. The company annual financial statements will be made available on request. The consolidated annual financial statements have been prepared in accordance with International Financial Reporting Standards. Statement of responsibility The directors’ statement of responsibility is addressed on the approval page of these consolidated annual financial statements. Authorised and issued share capital No changes were approved or made to the authorised or issued share capital of the company during the year Full details of authorised and issued share capital of the Group is contained in note 17 of these consolidated annual financial statements. Borrowings On behalf of the Group, the directors have established credit facilities with various financial institutions for use by the Company and it’s subsidiary companies. Subsequent to year end the Group increased it’s facility with Rand Merchant Bank from R1,16 billion to R1,567 billion. This increase will supplement the Group’s expansion plans. The directors did not exceed any authorised levels of borrowings as required in the Memorandum of incorporation or the Companies Act during the year under review. Dividends The company’s policy is to pay dividends at the discretion of the directors. No dividends were declared nor paid to ordinary shareholders of Lenmed Investment Limited during the year under review (2018: nil). Directorate The directors of the company during the year and to the date of this report are as follows: Executive directors Mr P Devchand Mr A Devchand Mr V E Firman Non-executive directors Mr M G Meehan Ms B Harie Ms N V Simamane Prof B D Goolab Secretaries The company secretary, Mr W. Somerville, was appointed by the Board. The transfer secretary of the company is Singular Systems (Pty) Ltd. Going Concern The consolidated annual financial statements have been prepared on the basis of accounting policies applicable to a going concern. This basis presumes that funds will be available to finance the operations and that the realisation of assets and settlement of liabilities, contingent obligations and commitments will occur in the ordinary course of business. The directors have reviewed the Group budget and cash flow forecasts and have satisfied themselves that the Group has sufficient borrowing facilities to meet the foreseeable cash requirements. The directors are satisfied that the Group is in a sound net asset position, the budgets and cash flows indicate positive cash flows and earnings for the next 12 months from approval of this report and that it is appropriate to adopt the going concern basis in preparing the Group’s annual financial statements. LENMED ANNUAL INTEGRATED REPORT 2019 89