Six-year review

    2016 2015 2014 2013 2012 2011
IN US DOLLAR (US$’000)               
Revenue    6 454 782  6 443 536  5 688 054  5 246 667  5 033 394  4 302 972 
Continuing operations    6 401 171  6 421 646  5 464 474  5 063 855  4 940 164  4 293 955 
Acquisitions    53 611  21 890  223 580  182 812  93 230  9 017 
Operating profit before interest, taxation depreciation and amortisation (“EBITDA”)   162 110  206 393  175 265  185 538  190 191  142 181 
Operating profit before goodwill and intangible adjustment/impairment    110 606  157 758  127 530  141 373  150 644  104 976 
WestconGroup*    62 212  100 207  67 447  98 200  120 360  91 277 
Logicalis    56 430  74 165  67 523  54 697  42 609  31 340 
Consulting*    1 245  2 362  1 041  2 081  3 331  (764)
Corporate and other holdings    (13 378) (19 590) (13 210) (14 314) (17 502) (15 886)
Head office foreign exchange gain/(loss)   4 097  614  4 729  709  1 846  (991)
Profit before taxation    88 434  140 162  101 796  127 247  137 971  78 178 
Profit after taxation    48 478  88 628  64 300  85 084  89 069  45 940 
Attributable profit    39 949  73 772  55 780  78 077  80 846  41 893 
Headline profit    40 016  73 674  62 083  78 071  80 188  44 020 
Capital distribution and dividends to shareholders    (22 200) (33 286) (31 594) (32 394) (36 383) (21 713)
Non-current assets    766 142  701 809  673 650  661 324  574 970  515 590 
Current assets    2 616 800  2 572 773  2 318 374  2 028 740  1 823 437  1 481 342 
Equity attributable to equity holders of the parent    830 366  870 850  871 617  865 433  823 369  727 702 
Non-controlling interests    39 054  41 599  52 868  51 578  56 059  42 677 
Non-current liabilities    112 645  103 710  94 131  84 324  66 083  91 102 
Current liabilities    2 400 877  2 258 423  1 973 408  1 688 729  1 452 896  1 135 451 
Net cash inflow/(outflow) from operating activities    68 018  115 400  (34 434) 241 664  32 942  (100 897)
Net cash outflow from investing activities    (119 289) (51 477) (59 127) (119 405) (55 476) (46 000)
Net cash outflow from financing activities    (33 407) (36 025) (16 358) (46 058) (64 067) (15 036)
Cash net of short-term borrowings    (132 685) (22 101) (41 770) 73 316  1 813  83 219 
Cash net of short and long-term borrowings    (205 398) (87 124) (86 740) 47 621  (20 454) 48 120 
IN US CENTS                
Headline earnings per share    19  37  32  41  43  24 
Underlying earnings per share    32  42  36  43  48  38 
Basic earnings per share    19  37  28  41  43  23 
Net asset value per share    397  428  442  448  439  392 
Tangible net asset value per share    115  159  170  175  197  178 
Distribution per share (US cents)   17  17  17  17  16  13 
    2016 2015 2014 2013 2012 2011
RATIOS               
Return on capital employed    12.1%  16.8%  13.6%  15.5%  17.6%  13.3% 
Return on invested capital    6.5%  10.8%  9.4%  11.5%  13.3%  12.6% 
Return on average shareholders’ equity    7.8%  9.5%  8.1%  9.8%  11.5%  10.0% 
Net debt-to-equity ratio    0.25:1  0.10:1  0.10:1  (0.06):1  0.02:1  (0.07):1 
Current ratio    1.1:1  1.1:1  1.2:1  1.2:1  1.3:1  1.3:1 
EBITDA margin    2.5%  3.2%  3.1%  3.5%  3.8%  3.3% 
Operating profit margin    1.7%  2.4%  2.2%  2.7%  3.0%  2.4% 
Interest cover    5.9  9.4  7.0  6.9  8.7  8.8 
Percentage change in SA Consumer Price Index    7.0  3.9  5.9  5.9  6.1  3.7 
STOCK EXCHANGE PERFORMANCE               
Total number of shares traded (’000)   149 707  79 850  54 038  79 044  60 176  104 059 
Total number of shares traded as a percentage of total shares    72.3%  40.0%  27.5%  41.4%  32.4%  56.6% 
Total value of shares traded (R’million)   8 901  4 335  2 888  3 832  2 337  3 494 
Prices (cents)              
Closing    4 648  6 005  4 701  4 871  4 500  3 576 
High    8 088  6 290  6 138  5 768  4 510  3 848 
Low    3 820  4 601  4 270  4 199  3 252  2 720 
Market capitalisation (R’million)   9 735  12 227  9 268  9 405  8 448  6 637 
P/E ratio (underlying earnings)   11  13  13  13  13  13 
SHARES ISSUED               
Issued (million)   209  204  197  193  188  186 
Weighted average (million)   206  199  197  191  186  184 
EMPLOYEES               
Number of employees at the end of the year    8 681  8 248  7 627  6 586  5 611  4 836 
Average number of employees    8 465  7 938  7 107  6 099  5 224  4 481 
Operating profit per average employee (US$’000)   13  20  18  23  29  23 
Gross assets per employee (US$’000)   390  397  392  408  427  413 
EXCHANGE RATES               
Rand/US$ statement of comprehensive income translation rate    13.7  11.0  10.1  8.4  7.3  7.2 
Rand/US$ statement of financial position translation rate    16.2  11.7  10.7  8.8  7.5  7.0 

Notes:

Tangible net asset value per share is calculated using net asset value exclusive of intangible assets, goodwill and capitalised development costs and the number of shares in issue at the end of the financial period.

Return on capital employed is calculated using operating profit before intangible and goodwill adjustment/impairment and the average of opening and closing capital employed. Capital employed is calculated using total shareholder funds plus all long-term liabilities including amounts due to vendors of a long-term nature but excluding deferred tax liabilities and liability for share-based payments.

Return on invested capital is calculated using net operating profit after tax and average invested capital. Net operating profit after tax is calculated using operating profit before intangible and goodwill adjustment/impairment to which amortisation of acquired intangible assets is added back, and is tax effected at the normalised effective tax rate. Invested capital is calculated using total shareholder funds plus long-term liabilities and short-term interest-bearing liabilities less cash and cash equivalents.

Return on average shareholders’ equity is calculated using underlying‡ earnings and the average of opening and closing equity attributable to the equity holders of the parent.

Debt, for the purposes of the debt-to-equity ratio, includes all long-term liabilities including the short-term portion of long-term debt but excluding deferred tax liabilities, amounts due to vendor and liability for share-based payments. Net debt includes cash and cash equivalents.

Ratios referring to operating profit use operating profit before goodwill and intangible adjustment/impairment.

Interest cover is calculated using EBITDA over finance cost.

The SA Consumer Price Index is sourced from Statistics South Africa.

Detailed segmental information is set out in Note 32 of the consolidated annual financial statements.

Excluding impairments of goodwill and intangible assets, profit or loss on sale of investments and assets, amortisation of acquired intangible assets, unrealised foreign exchange movements, acquisition-related adjustments, fair value movements on acquisition-related financial instruments, restructuring costs and the taxation effect on all of the aforementioned.

*The results of Intact have been included in WestconGroup from FY15 and in the Consulting division in preceding periods.