2006A N N UA L R E P O R T
SECTION 1
Chairman’s report Page 2 - 3
Business philosophy
A Broader perspective
Financial performance
Board functioning
Conclusion
SECTION 2
Asset manager’s report page 4 -7
Introduction
Keydifferences
Portfolio overview
Financialoverview
Futureprospects
SECTION 3
Reportof the independentauditors page 9
Statementof directors' responsibility page 10
Directors’ report page 11 -14
Consolidatedbalancesheet page 16
Consolidated incomestatement page 17
Consolidatedstatementof changes inequity page 18
Companystatementof change inequity page 19
Consolidatedcash flow statement page 20
Accountingpolicies page 21 -25
Notes to theconsolidated financial statements page 26 -51
Countryof Incorporation SouthAfrica
Natureof business Propertydevelopmentand investmentholdingcompany
Directors BF VanNiekerk -Chairman LLS VanderWatt -ChiefExecutiveOfficer
GJOosthuizen -ExecutiveDirector NFJHaasbroek -Non-ExecutiveDirector
PTredoux -Non-ExecutiveDirector
RegisteredOffice Building A,GlenwoodOffice Park, 41SpriteAvenue,FaerieGlen,0043,Pretoria,SouthAfrica
BusinessAddress OberonStreet,GlenfieldOffice Park, MertechBuilding, FaerieGlen,0042,Pretoria,SouthAfrica
PostalAddress PostnetSuite205,PrivateBag X20009,Garsfontein,0042,Pretoria,SouthAfrica
Bankers Nedbank Limited InvestecBank Limited StandardBank Limited FirstRandBank Limited
Auditors TAG IncorporatedCharteredAccountants (S.A.)RegisteredAuditors
Secretary TSmith
Company registration 1997/000543/06
ATTACQ ANNUAL REPORT - 2006
TA B L E O F C O N T E N T S
FOR THE YEAR ENDED 30 JUNE, 2006FRANCOIS VAN NIEKERK
Chairman
2
At the conclusion of the first financial year of the restructured
Attacq Property Fund Ltd, this report is presented on behalf of
the board of Attacq to inform shareholders and other
stakeholders of the company's results and of all matters
relevant to sustained future performance.
In a short 12 year period the Atterbury Property Group
established a formative presence in the SA property industry.
Adding the Attacq Property Fund to Atterbury's extensive and
diversified national group structure accentuates not only a new
growth dimension but goes to the very core of our prolonged
business success. This and other introductory aspects are
dealt with hereunder.
The Atterbury group's business philosophy has a participative
premise in four distinct directions:
The establishment of Attacq stems from one of the core
values of the overall Atterbury business approach - a
value seen to represent one of the company's major
success differentials. From the outset the focus had been
on the best possible personnel and then specifically
individuals with such personal calibre and entrepreneurial
make-up as to show interest in a partnering relationship
with meaningful ownership rather than mere
employment.
During the past fiscal period a major restructure of the
group's development subsidiaries - being its central
business focus - was done to further improve and expand
substantive staff shareholding. The restructure basically
opened an opportunity to consolidate and effectively
utilize related business assets in a second property fund
which would complement Attfund whilst furthering certain
objectives of broader diversification.
The Atterbury business model is firmly based on a
predilection to work with partners. The successful
blending of complementary inputs not only optimizes
project outcome but distributes risk and augments the
1. BUSINESS PHILOSOPHY
1.1 Sharing with our team
1.2 Sharing with partners
development of longer term business relationships with
like-minded organisations. Much of the group's success
is attributable to an extensive array of business partners
and Attacq will follow the same approach.
Along with the above core focus of spreading wealth
amongst associates and working mostly with business
partners, it had also been a growing need to include the
wider community in sharing the benefits of Atterbury's
business progress. Consequently a highly successful
private share placement resulted in currently 174 Attacq
shareholders. The enthusiastic investor participation is
welcomed as a significant step in the company's general
advance and can well be expected to enhance Attacq's
role and contribution within the Atterbury group.
Especially in developing economies like South Africa, the
propensity of the capitalist approach to disproportionately
favour the few should, at minimum, influence the social
conscience of business in general. Since inception
Atterbury had an active social orientation and the group is
extensively involved in community upliftment and
development. Funding is mostly through shareholding
allocated to in-house social trusts.
In this context a community beneficial trust is the biggest
single shareholder in Attacq and 39.1% of all business
proceeds will, therefore, be applied directly to funding a
wide variety of community beneficial programs.
Attacq will follow the above participative business
philosophy and subscribe to the Atterbury credo of
with its subtext of also
for all South Africans.
By way of introduction and to gain a wider perspective, the
Attacq board members and other associates were asked their
individual views on Attacq, its heritage and its future:
creating better places creating
better lives
1.3 Sharing with investors
1.4 Sharing with SA communities
2. A BROADER PERSPECTIVE
Sec t i on 1 CHA IRMAN’S REPORT
EXECUTIVE DIRECTORS
NON-EXECUTIVE DIRECTORS
OTHER ASSOCIATES
CA(SA),
"The Atterbury team takes
particular pride in being recognised
amongst the best in the SA property
industry. Our objective with Attacq is the
same - to achieve accepted prominence
amongst property investment funds by
the focused application of our proven
skills and through certain innovative
initiatives for which we are currently
positioning ourselves”.
BEng(Mech),
“Atterbury established an exceptional
base of physical and non-physical
assets. The formation of Attacq
enhances our corporate ability to better
utilise these strengths toward our main
task of optimising shareholder value”.
BSc, MBA,
“The enthusiastic dedication of the
young professionals at work in Attacq
is inspiring and brings to mind the
phrase “
CA(SA)
“The formation of Attacq created an
exciting opportunity for shareholders to
capitalize on the Atterbury Group's
unique expertise and ability to optimize
shareholder value”.
CA(SA), MCom,
“Our business is unusually blessed with
solid progress over 10 years. It is a
good feeling to enjoy the industry
respect brought on not only by our
achievements but more particularly by
our business approach of unquestioned
honesty and integrity”.
Louis van der Watt;
Gideon Oosthuizen;
Neno Haasbroek;
Pierre Tredoux;
Talana Smith;
Atterbury founder, group
CEO and Attacq CEO.
executive director of
Attacq, MD of Atterbury
Investment Managers
and trustee of Mergon Trust.
executive director of
Attfund and CEO of
Sycom Property Unit Trust.
what the mind can conceive
man can achieve”
, former CEO of
Deloitte Consulting and
experienced strategic and
financial advisor.
Chairman of Atterbury Property Holdings.
Atterbury Group CFO
and Attacq company secretary.
Piet Jordaan;
Ken Reynolds;
Wouter de Vos;
BSc(Hons), TRP(SA),
“Atterbury progressed from being merely
to becoming t because the
company has the ability to attract and
retain a team of really top people. It is
our collective desire to take Atterbury to
the next level; being . This is
the legacy on which the Attacq Property
Fund was established”.
“Attacq comes from a solid base with a
strong investment portfolio. The staff's
expertise and deal making ability
promise great things going forward”.
“Over an extended period we observed
Atterbury's establishment of its unique
business branding together with a
formidable personal and professional
reputation. I expect this legacy to live
on through Attacq”.
During this first year of operations, the
Attacq Property Fund and its subsidiary
companies posted a net profit after tax
of R370m. The profit figure is largely
represented by the investment portfolio's
assessed increase in book value. In
recent years - and in line with fiscal
requirements - it had become the
accepted norm in the property industry
to reflect the fair value by which the
property holdings increased or
decreased during the year.
For the year to 30 June, 2006 the
Attacq Group's asset base grew
threefold from R600m to R1,8 billion
mostly through the acquisition of
Attfund shares. Attacq is a 44%
shareholder in Attfund and Attfund
shares currently represent some 70%
of Attacq's portfolio.
The Attacq portfolio valuation is based
on the accepted Attfund share price
and on a fair value for the buildings
carried at R441m and an average
capitalisation rate of 9,17%. The board
considers the valuation realistic and
moderate. Another differential favouring
a conservative approach is the overall
fund gearing of only 20.5%.
one of the first Atterbury employees and
current MD of Atterbury Special
Projects.
good grea
exceptional
Divisional Director of Nedbank Property
Finance.
Head of Investec Private Bank, Northern
Region.
3. FINANCIAL PERFORMANCE
The Attacq share price increased by
47.8% from an issue price of R2,76 to
R4,08 as at 30 June, 2006. In line with
the company's shorter term growth
objectives no dividend was declared.
The Atterbury Property Group's unusual
growth at first depended largely on
Louis van der Watt's entrepreneurial flair
and focussed business brilliance, but of
late increasingly on the development of
organisational capacity where high-
calibre individuals are enabled to
replicate and enhance the original
success differentials and business
values which had become an Atterbury
hallmark.
Atterbury's exceptional growth is backed,
inter alia, by dynamic flexibility and
reactive timing skills. Also by a
pronounced ability to constantly re-
engineer itself to preserve and enhance
organisational effectiveness amidst rapid
growth. This includes the acceptance of
administrative disciplines such as a
proper functioning board of directors.
The Attacq board is an established unit
enjoying a constructive interrelationship
with management. The prime objective
is to promote and conserve the best
interest of all Attacq shareholders and to
fully comply with both the letter and
spirit of all fiscal and other requirements.
The board is the focal point of corporate
governance application and as such
accountable to shareholders and other
stakeholders for the performance and
affairs of the company.
Much is expected of Attacq. Given the
proud legacy of the Atterbury Group
and the personal talent and dedicated
enthusiasm of the Attacq CEO, Louis
van der Watt and his team, this
expectation is fully justified.
Francois van Niekerk
Chairman
4. BOARD FUNCTIONING
5. CONCLUSION
3
Sec t i on 1 CHA IRMAN’S REPORT (con t i nued )
4
INTRODUCTION
KEY DIFFERENTIATORS
The Executive Directors take great pride in offering this first
Annual Report to the shareholders of the Attacq Property Fund.
It was thought appropriate to introduce the report with pertinent
comments on the background to the Fund’s formation and its
continued close association with the Atterbury Property Group
[“Atterbury”].
Atterbury was formed in 1995 and established itself over the
past twelve years as one of the leading property development
companies in South Africa. During 2002/2003, in conjunction
with our valued associates in Attfund Limited, Atterbury
participated in the formation of Attfund as co-developer and
shareholder. By the end of the 2006 financial year, this legacy
of collaboration had manifested in a significant asset for
Atterbury in the form of a 44% shareholding in Attfund.
In addition to the purely share-based Attfund asset, an ever-
increasing number of new office buildings were developed that,
once again, were of investment grade quality and offered its
owners long term value. As Attfund intensified its own focus on
regional shopping centers and secure office parks, Atterbury
identified the opportunity to start another property fund that
could complement Attfund. Attacq takes a slightly wider
investment approach across essentially four types of property
assets: commercial office buildings, large retail (by way of its
Attfund interests), smaller convenience retail and, in future,
industrial property.
In line with the management team’s inclination to seek out
opportunities where hidden upside can be realised, the Fund
set its sights on using its balance sheet to make strategic
acquisitions that would further strengthen the asset mix. The
name of the fund, Attacq Property Fund, was therefore
specifically chosen to give voice to the strategic intent of
enabling Atterbury to make clever acquisitions.
The Attacq Property Fund’s management team has set itself
the challenge of following a slightly different approach than
what the other funds in the market typically apply.
For instance, shareholders can expect that acquisitions will
often be made directly from Atterbury; which enjoys the status
as being nominated as the preferred developer to Attacq.
Atterbury will however remain an independent property
developer and will continue its own core business in the same
fashion as had been practiced with great success to date. This
pipeline of property projects from Atterbury provide Attacq with
a key differentiator, as assets would typically be acquired at an
early stage in the investment maturity cycle. This enables
Attacq to enjoy strong capital appreciation over the first 2-3
years.
Shareholders can however also expect the Fund to identify
assets for acquisition that were developed by outside parties.
Such assets would both complement the “in-house”
developments and offer good long term value. This dual
strategy will quickly widen the asset base and allow for
sustained, stable long term growth across a wide spectrum of
property classes.
Another means of ensuring that Attacq outperforms the
industry benchmark set by the listed property sector is by
taking calculated risks. By offering its balance sheet as surety
for approved development projects, Attacq will obtain a 25%
stake in such developments at cost. Close collaboration with
the property development company ensures that the risk of
participation in the actual development is mitigated. The
management of the Fund is very closely integrated with the
management and decision making processes of the property
developer.
The success recipe of Atterbury's past property development
performances will be continued; the Fund will benefit from the
pipeline of new property developments and play a pivotal role
during the financing phase.
Atterbury has built a sound reputation of collaboration and
partnership amongst its peers in property development circles.
It has been successful in difficult negotiations by ensuring that
deals are fair and profitable for both Atterbury and the
counterparty. This ethos will be transposed to Attacq, in a
manner that will allow external parties to expect the utmost of
good faith when, for instance, receiving Attacq shares as
settlement for an asset sold to Attacq.
Attacq has the almost unique characteristic of having its asset
management company owned by the major shareholders in
the Fund. This ensures a “Return on Equity” approach being
adopted by the management team as opposed to a
conventional fee-earning incentive where no real risk is taken.
The focus is therefore much more on optimizing shareholder
LOUIS VAN DER WATT
Chief Executive Officer
of Attacq
Sec t i o n 2 A S SET MANAGER’S REPORT
value; fees are rather considered a necessity, required to attract
and retain the appropriate skills to execute the task at hand.
And, as a final introductory comment, it deserves mentioning
that Atterbury has throughout its existence displayed a flair for
doing deals quickly and decisively. This culture has also been
adopted by Attacq. The owner-managed approach allows for
quick decision making that will be balanced with good
corporate governance.
Ultimately, we believe that this is one of Attacq's key
differentiators - its ability to move quickly and decisively whilst
recognizing the increased responsibility of carefully managing
the ever-increasing assets on behalf of a growing investor
community.
Property valuations were performed by an independent valuer
A de Wet (B. Proc. LLB (UP), Nat Dip in Real Estate (Unisa))
who is associated with Roode & Associates. Universally
accepted valuation practices are consequently followed and
matched with recent experience in the location and category of
the assets that needed to be valued for this reporting period.
For the individual buildings under scrutiny, the income yield
based on the values determined during the valuation process is
on average 9,17%. The Board is of the opinion that the
valuations are moderate to conservative, and welcome the
principle of remaining prudent, especially in light of the period
of high volatility that had been experienced in the listed
property sector in the period immediately preceding the
valuation process.
For this reporting period Attacq has essentially two types of
assets: firstly, directly held buildings that are mainly of
commercial nature, and secondly, its holding of 44% in Attfund
Limited (and thus, effectively, exposure to large shopping malls).
The following buildings were reported on up to June 2006:
Situated on the corner of Middle and Veale Streets in Brooklyn,
Pretoria, this 2,910 m office building is fully let with only 14% of
leases expiring within the next 12 months. Rentals achieved are
satisfactory and on par with the Brooklyn business node, which
is considered to be one of the most sought-after areas in
Pretoria. Small upgrades to facilities and signage have been
conducted. The asset is valued at R26 million.
Situated on Waterkloof Road at the junction with Crown Street
in Waterkloof, this convenience shopping center of 6,576 m
2
2
PORTFOLIO OVERVIEW
Property valuation approach and effective yield
Key Assets
Brooklyn Gardens
Waterkloof Corner
was the subject of a major re-vamp that served to improve the
image and tenant satisfaction levels, especially as far as the
improvements to the parking facilities are concerned.
Vacancies are low at 2,5% and 92% of leases expire beyond 12
months into the future. The asset is valued at R65 million.
Situated on the south-eastern corner of the busy Charles Street
/ Brooklyn Road intersection, this 1,927 m Grade A office
building is fully let with none of the leases expiring within the
next 12 months. The property and its counterpart Lord Charles
form a picturesque visual unit that has transformed the
crossing into a business destination. The asset is valued at
R26,9 million.
Lord Charles was completed during the latter part of the
reporting period and tenant leasing had barely started by June
2006. Subsequent to year-end (by end October 2006), this
4,066 m office park has only 343 m rentable space left and is
expected to perform on budget for the year ending June 2007.
The asset is valued at R46,7 million.
This brand new single-tenant office building of 4,817 m is set
to become a landmark in the vicinity of the busy Atterbury Road
off-ramp in Menlo Park, Pretoria. The Investec office for their
Northern Region holds a ten year lease over the building. The
asset is valued at R77,6 million.
When Brooklyn Square (adjacent to Brooklyn Mall in Middle
Street) was acquired during the latter half of 2005, the center
was performing under potential and both rental income and
vacancy figures were below par for the area. The center of
13,118 m has, since the start of Atterbury's involvement,
reduced its vacancy levels to 1%. It is foreseen that the center
will undergo a significant series of improvements which will
increase the value in the long run, however, in the short term
rental agreements are purposefully negotiated for shorter
periods and as such the center remains a slightly higher risk
asset. Within the next 12 month period, 25% of the leases will
expire. The asset is valued at R127 million.
The financial results reflect the income stream of Building G
(part of the DTI Campus on Nelson Mandela Road in the CBD
of Pretoria). Income is earned from 3 Government Department
tenants which hold 15 year leases. However, the bare
dominium rights to this property are not owned by Attacq
Property Fund and the asset does not contribute to the net
asset value of the Fund.
Other assets as reflected in the financial statements are not
considered part of the core portfolio and are not specifically
mentioned here. Future developments will results in these
assets either developing into investment grade buildings, or
being disposed of.
2
2 2
2
2
Lady Brooks
Lord Charles
Investec Regional Head Office, Pretoria
Brooklyn Square
Other
5
TALANA
SMITH
LUCILLE
LOUW
Executive Directors of Atterbury Investment Managers
GIDEON
OOSTHUIZEN
Sec t i on 2 AS SET MANAGER’S REPORT (con t i nued )
The table summarises the key assets by value and income
yield at these values.
Brooklyn Gardens 26,145,533 10%
Waterkloof Corner 65,867,932 8,9%
Lady Brooks 26,947,910 8,8%
Lord Charles 46,720,824 8,2%
Investec Regional Office 77,638,298 9,1%
Brooklyn Square 129,790,979 9,7%
A transaction involving three buildings (Great Westerford in
Rondebosch, Shell House in the Cape Town CBD, and
Hampton Office Park in Bryanston) was concluded during the
reporting period, but the actual legal transfer of ownership
would only be concluded by October / November 2006. These
assets are therefore not included in the financial statements but
will have a significant effect on the portfolio and will be fully
reported on in the next annual report.
Attacq's interest in Attfund Limited forms, especially for this
reporting period, a major part of the financial value of the total
portfolio. On 30 June 2006 Attacq owned 16,536 822 Attfund
shares at R75,91 per share, bringing the value of the
investment held by Attacq to R1,255 billion.
Quoting from the Attfund annual report, the Attfund “portfolio
now consists of 11 high-end, low-risk properties. Retail
property consists of 89% by area of the Fund and 87% by
income of the Fund's gross property income by 30 June 2006
with offices making up the balance.” The Attacq Board is of the
opinion that the Attfund portfolio is still fairly conservatively
valued when the quality of the assets and the strength of the
underlying fundamentals are considered. Furthermore, market
trends based on recent transactions involving similar assets
indicate that new benchmarks in terms of the capitalization
rates at which transactions are occurring, specifically for
regional shopping centers, are being set. Attfund's assets still
have a reasonable safety margin between the income yield on
its valuations and the capitalization rate that might be achieved
if its assets were to be sold in the open market.
For more detail, we refer the Attacq shareholder to the Attfund
annual report for its year ended June 2006, a copy of which
can be requested from Attacq's offices for your convenience.
The following graphs are a summary of the Attacq Property
Fund's assets (by value) displayed by geographic distribution,
as well as by asset type. Both directly held assets and Attfund
assets (regarded on a see-through basis) were considered for
this graph.
PROPERTY MARKET VALUE INCOME YIELD
Post-year end transfers
Attfund Shares
FINANCIAL OVERVIEW
Due to the fact that this reporting period is the first reflection on
the financial performance since the formation of the Fund, the
practice of comparison with previous years' performance is not
deemed sensible. Furthermore, many of the assets and
companies evident in the notes to the financial statements are
of historical origin (bearing in mind that Attacq Property Fund
Limted was formerly Atterbury Property Holdings (Pty) Ltd, the
Atterbury development group holding entity).
The following concise summary therefore serves to highlight
only pertinent information from the financial statements that
should provide the Attacq shareholder with a clear view of what
the Fund is worth and how the main financial risks are being
mitigated.
The gross value of assets on 30 June 2006 is comprised of
directly held buildings to the value of R441,3 million, Attfund
shares worth R1,255 billion, and other financial assets which
brings the total gross value of the Fund to R1,792 billion.
Gross rental income on the directly held properties is R34,3
million for the period. This figure only includes rental income
from completion date or acquisition date of the property into
the Fund. Net income before taxation was R429,7 million, which
includes a fair value adjustment of R302,7 million as well as
R116.8 million income from associates being Attfund.
The total amount of liabilities on 30 June 2006, including the
deferred tax provision for future capital gains tax and the
current portion of borrowings is R439.8 million. With Attacq's
total borrowings being R361 million and the non-current assets
R1,765 billion, the gearing is set at 20.5%. Attacq's effective
gearing is 50.2% when taking into account Attfund's gearing of
42,19%.
The board has set a guideline that between 60% and 70% of
Attacq debt has to be fixed. The table below indicates the
levels of debts fixed and the average cost of funding:
The hedging of interest rate risk is an ongoing area of focus for the
asset managers and specific attention is constantly given to this
aspect. New transactions, most notably the acquisitions of Great
Westerford, Shell House and Hampton Office Park, are designed
to improve the fixed interest ratio to meet the guideline.
6
Fixed loans 180,089,287 10,87% 50,94%
Prime-linked
Loans
(prime 12%) 173,427,677 10.67% 49,06%
353,516,964 10.77% 100%
TOTAL AVG %
INTEREST RATE
Se c t i o n 2 A S SET MANAGER’S REPORT (con t i nued )
GAUTENG
80%
WESTERN
CAPE
20%
GEOGRAPHIC
RETAIL
80%
OFFICES
20%
TYPE
Share Price
Shareholding
FUTURE PROSPECTS
The Net Asset Value for the Attacq Property Fund is R 869,7
million. The number of issued shares at on 30 June 2006 is
213,043,586, which implies a share price on financial year-end of
R4,08 per share.
The shareholding in the Fund is summarised by way of
grouping shareholders into four types:
• Community Beneficiary Organizations
• Founding Shareholders of Atterbury
• Other Atterbury group holding entities, which includes
shares held by personnel
• Other Private Investors
The shareholding reflected in the financial statements of 30 June
2006 does not include the 94,826,922 Attacq shares issued to
Mergon Trust subsequent to year end for the 5,803,045 Attfund
shares bought from Mergon Trust. The analysis of shareholders
reflect the position as at year end as well as the position after
the additional Attacq shares were issued to Mergon Trust.
As mentioned earlier, shareholders can look forward to the
inclusion of Great Westerford, Shell House and Hampton Office
Park, totalling some 65,000 m in rentable space. By the next2
reporting period these assets will be reflected in the financial
statements and the improvements that are planned to extract
more value out of the assets will be reported on.
Subsequent to year end a transaction has been concluded on
the property to be known as Centurion Gate, whereby Attacq
has already contracted to become the eventual owner of the
property which will be developed during the current reporting
period. Shareholder can expect further report on this asset
during the 2007/2008 financial year.
In order to improve the Fund's exposure to smaller
convenience retail space, Attacq will acquire a 20% stake in the
newly formed Retail Africa Property Fund (“RAP Fund”). The
transaction will be effective as from 1 September 2006. Key
properties underlying the investment are Steenberg Village in
Cape Town, Featherbrook on the West Rand, Kingfisher on the
East Rand and Sanridge in Midrand. RAP Fund has 8
properties upon inception and the developers Retail Africa will
likely be adding 9 more assets to the RAP Fund portfolio in the
foreseeable future. This acquisition is set to increase Attacq's
exposure in convenience shopping malls.
In addition to the above, the Fund is seeking to expand
strategically towards owning an industrial portfolio and some
international exposure as well. Discussions are at an early
stage, but the goal has been set to have some progress within
this current financial year, and shareholders can therefore look
forward to seeing a change in the portfolio make-up by the
advent of the next reporting period.
In conclusion, the executive directors and the asset
management team remain excited about the prospects that the
commercial property market offers investors in this country.
Sound economic policy and disciplined implementation has
laid the foundation for a prolonged period of economic growth,
which is the most important factor underpinning our conviction
that the demand for our products will remain high during the
immediately foreseeable future. We shall continue to take
decisions that protect our cash flow, ensure long term value
and, probably the most important factor in our own minds,
stocking the portfolio with assets that make us proud owners,
because we firmly believe that a beautiful building in the right
area remains the best possible risk mitigation measure an
asset manager can implement.
Yours sincerely,
Louis van der Watt Gideon Oosthuizen
Chief Executive Officer: Managing Director:
Attacq Property Fund Atterbury Investment Managers
7
COMMUNITY
12.1%
ATTERBURY
GROUP
25.8% FOUNDERS
48.4%
OTHER
INVESTORS
13.7%
BEFORE
OTHER
INVESTORS
9.5%
ATTERBURY
GROUP
17.9%COMMUNITY
39.1%
FOUNDERS
33.5%
AFTER
Section 3
Report of the independent auditors page 9
Statement of directors' responsibility page 10
Directors’ report page 11 - 14
Consolidated balance sheet page 16
Consolidated income statement page 17
Consolidated statement of changes in equity page 18
Company statement of change in equity page 19
Consolidated cash flow statement page 20
Accounting policies page 21 - 25
Notes to the consolidated financial statements page 26 - 51
FINANCIALS
TA B L E O F C O N T E N T S
To the shareholders of Attacq Property Fund Limited and its subsidiaries
We have audited the consolidated financial statements of Attacq Property Fund Limited and its subsidiaries set out on pages 10 to 51
for the year ended 30 June 2006. These consolidated financial statements are the responsibility of the Group's directors. Our
responsibility is to express an opinion on these consolidated financial statements based on our audit.
We conducted our audit in accordance with statements of International Standards on Auditing. Those standards require that we plan
and perform the audit to obtain reasonable assurance that the financial statements are free of material misstatement. An audit includes
examining on a test basis, evidence supporting the amounts and disclosure in the financial statements. An audit also includes
assessing the accounting policies used and significant estimates made by management, as well as evaluating the overall financial
statement presentation.
We believe that our audit provides a reasonable basis for our opinion.
In our opinion the financial statements present fairly, in all material respects, the financial position of the Group at 30 June 2006 and the
results of its operations and cashflows for the year then ended in accordance with South African Standards of Generally Accepted
Accounting Practice, and in the manner required by the Companies Act in South Africa.
Without qualifying our opinion above, we draw your attention to note 2 in the financial statements, which indicates that the Group
rectified its deviation from Generally Accepted Accounting Practice of the previous year during the year under review.
We have performed certain accounting and secretarial duties up until conversion of the Company to a public company, with the written
consent of all the shareholders.
TAG Incorporated Per: P Lombard
Chartered Accountants (SA) Pretoria
Registered Auditors 22 November 2006
SCOPE
OPINION
EMPHASIS OF MATTER
ACCOUNTING AND SECRETARIAL DUTIES
9
Sec t i on 3 AUDIT REPORT
Section 3 AUDIT REPORT ATTACQ
While operating risk cannot be fully eliminated, the Group
endeavours to minimise it by ensuring that appropriate
infrastructure, controls, systems and ethical behaviour are
applied and managed within predetermined procedures and
constraints.
The directors are of the opinion, based on the information and
explanations given by management, that the system of internal
control provides reasonable assurance that the financial
records may be relied on for the preparation of the
consolidated financial statements. However, any system of
internal financial control can provide only reasonable, and not
absolute, assurance against material misstatement or loss.
The directors have reviewed the Group's cash flow forecast for
the year to 30 June 2007 and, in the light of this review and the
current financial position, they are satisfied that the Group has
or has access to adequate resources to continue in operational
existence for the foreseeable future.
The consolidated financial statements set out on pages 9 - 51,
which have been prepared on the going concern basis, were
approved by the board on 22 November 2006 and were signed
on its behalf by:
P Tredoux BF van Niekerk
The directors are required by the South African Companies Act,
1973, to maintain adequate accounting records and are
responsible for the content and integrity of the consolidated
financial statements and related financial information included
in this report. It is their responsibility to ensure that the
consolidated financial statements fairly present the state of
affairs of the Group as at the end of the financial year and the
results of its operations and cash flows for the period then
ended, in conformity with South African Statements of
Generally Accepted Accounting Practice. The external auditors
are engaged to express an independent opinion on the
consolidated financial statements.
The consolidated financial statements are prepared in
accordance with South African Statements of Generally
Accepted Accounting Practice and are based upon appropriate
accounting policies consistently applied and supported by
reasonable and prudent judgements and estimates.
The directors acknowledge that they are ultimately responsible
for the system of internal financial controls established by the
Group and places considerable importance on maintaining a
strong control environment. To enable the directors to meet
these responsibilities, the board sets standards for internal
control aimed at reducing the risk of error or loss in a cost
effective manner. The standards include the proper delegation
of responsibilities within a clearly defined framework, effective
accounting procedures and adequate segregation of duties to
ensure an acceptable level of risk. These controls are
monitored throughout the Group and all employees are
required to maintain the highest ethical standards in ensuring
the Group's business is conducted in a manner that in all
reasonable circumstances is above reproach. The focus of risk
management in the Group is on identifying, assessing,
managing and monitoring all known forms of risk across the
Group.
10
Sec t i on 3 D IRECTORS ’
RESPONSIB IL IT IES
A N D A P P R OVA L
Section 3 DIRECTORS' RESPONSIBILITIES AND APPROVAL ATTACQ
The directors submit their report for the year ended 30 June
2006. A further report from the asset manager and a chairman's
report will also be included with the financial statements.
• The principal activities of the Group is property holding
and development through the ownership of investment
properties held by, and developments undertaken by
its subsidiaries or development partners.
• The main geographical areas where business is carried
on are Gauteng and Western Cape.
• There were no changes in the nature of the Group
during the year of assessment, other than the stripping
out of any direct operational activities and transferring
all such activities to the asset manager. Atterbury
Investment Managers (Pty) Ltd was appointed as the
asset manager of the Attacq Group. The details of the
appointment is clearly stated in the asset management
agreement.
• Net profit of the Group was R362,433,785 (2005:
R113,924,427), after deducting taxation of R58,878,632
(2005: R30,303,867)
• Attacq entered into purchase agreements with the
Momentum Group, whereby the Great Westerford
Offices, Hampton Office Park and Shell House were
bought for a total purchase price of R450 million. If
transfers take place after 30 June 2006, the purchase
price will escalate with 1% per month on such portion
of the price still outstanding until all transfers are
completed. The payment of the purchase price is
structured in such a manner that R190 million is paid
directly to Momentum Group on transfer and the
balance is payable in 5,5 year's time, with a fixed
interest rate of 12% applicable to the outstanding
balance.
FirstRand Bank Limited funded the transaction.
Atterbury Investment Managers (Pty) Ltd (Attvest) are
taking over R130 million of the outstanding price (debt)
and Attacq is issuing 34,497,435 ordinary R0.0001
1. REVIEW OF OPERATIONS
MAIN BUSINESS AND OPERATIONS
2. EVENTS SUBSEQUENT TO THE YEAR END
11
Sec t i on 3 D IRECTORS ’ REPORT
shares as consideration. The effect of these shares were not
taken into account when calculating the share price, since
they were only issued after year end.
• Attacq acquired a 20% interest in Retail Africa Property
Fund (RAPfund Limited), a property loan stock
company focusing on smaller retail shopping centres
of 15,000 square meters or less. The estimated
purchase price is R36 million.
• Attacq bought an office block in the Centurion Gate
Development directly from the developer. The
completion date of the building is set to be in March
2008. Attacq is in the process of concluding a 7 year
lease with a listed entity to take up the space of the
building.
• The Group issued 94,826,922 shares to Mergon Trust
as consideration for the 5,803,045 Attfund Limited
shares bought. The consideration price for this
transaction was R70 per Attfund share.
At the financial year end the directors' direct and indirect
interest in the Group's issued shares were as follows:
Ordinary shares
- Directly 13,886,759 150,000 - -
- Indirectly 96,376,990 270,000 12,913,572 130,000
The company's authorised share capital was 1,000,000
ordinary shares of R0.01 each. On 9 June 2006 a special
resolution was passed to authorise the increase of the
authorised share capital to 5,000,000 ordinary par value shares
of R0.01 each. The 5,000,000 ordinary par value shares were
then sub-divided into 500,000,000 ordinary par value shares of
R0.0001. During the year under review 117,435,935 ordinary
par value shares were issued.
2006 2005 2006 2005
3. DIRECTORS' INTEREST IN SHARES
4. AUTHORISED AND ISSUED SHARE CAPITAL
Beneficial Non-beneficial
R0.0001 R0.01 R0.0001 R0.01
Shares shares shares shares
Section 3 DIRECTORS' REPORT ATTACQ
The share price at year end is calculated at R4.08 per share.
The calculation is based on a net equity value of R869,7 million
and 213,043,586 issued shares.
According to the records of the Group, the only shareholders
registered as holding five percent or more of the Group's
shares at 30 June 2006, other than the shares held directly and
indirectly by directors are the following:
TTA Shares (Pty) Ltd
Atterbury Property
2006 2005
Atterbury Trust 12,726,832 100,000
11,310,621 100,000
Holdings (Pty) Ltd 16,027,253 -
On 31 January 2006 a special resolution was passed to
authorise the buyback of 13,700 ordinary shares of R0.01 par
value for a total consideration of R1,720,000.
Number of shares
R0.0001 shares R0.01 shares
12
5. FURTHER SPECIAL RESOLUTIONS
On 1 June 2006 a special resolution was passed to change the
Holding Company's name from Atterbury Property Holdings
(Pty) Ltd to Attacq Property Fund (Pty) Ltd.
On 30 June 2006 a special resolution was passed to convert
the company into a public company: Attacq Property Fund
Limited.
6. SUBSIDIARIES AND ASSOCIATE COMPANIES
Direct subsidiaries and associates
Subsidiaries
Name and nature of business Effective % held Shares
Issued Capital 2005 2005
Interactive Trading 800 (Pty) Ltd 100 100 65 100 65Investment company
Atterbury Property Johannesburg (Pty) Ltd 100 100 75 100 75(formerly known as Atterbury CityDevelopments (Pty) Ltd)Development company
Riverport Trading 143 (Pty) Ltd 100 51 67 51 67Property investment company
Atterbury Property Investments (Pty) Ltd 100 100 70 100 70Investment company
Nieuw Pivot Investments (Pty) Ltd 100 - 60 - 60Property investment company
Atterbury Property Cape Holdings (Pty) Ltd 10,000 100 66 10,000 6,625Investment company
Atterbury Property Holdings (Pty) Ltd 7,500 - 100 - 7,500(formerly known as AtterburyProperty (Pretoria) (Pty) Ltd)Development and investment company
Attstore (Pty) Ltd 100 75 75 75 75Property investment company
Lady Brooks (Pty) Ltd 1,000 100 51 1,000 510Property investment company
Lord Charles & Lady Brooks Office ParkHoldings (Pty) Ltd 1,000 100 100 1,000 1,000Property investment company
Erf 321 Hatfield Beleggings (Pty) Ltd 1,000 100 51 1,000 510Investment company
Atterbury Attfund Investments (Pty) Ltd 10,000 100 100 10,000 10,000Investment company
Highgrove Property Holdings (Pty) Ltd 1 100 - 1 -Investment company
Attcorn Property Holdings (Pty) Ltd 940 100 44 940 415Investment company
2006 2006
Sec t i on 3 D IRECTORS ’ REPORT (con t i nued ) AT TA CQ
6. SUBSIDIARIES AND ASSOCIATE COMPANIES (continued)
Direct subsidiaries and associates (continued)
Associates
Indirect subsidiaries and associates
Subsidiaries
Associates
Name and nature of business Effective % held Shares
Issued Capital 2005 2005
Parkdev (Pty) Ltd 100 - 50 - 50(formerly known as Atterbury PropertyManagement (Pty) Ltd)Operating company
Attfund Limited 38,361,952 44 17 16,536,822 6,829,374Property investment company
National Formatt Property Commercial (Pty) Ltd 100 - 50 - 50Operating company
Top Coat Property Investments 5 (Pty) Ltd 400 - 50 - 200Investment company
Atterbury Wedge (Pty) Ltd 100 - 50 - 50Property investment company
Atterbury Property One (Pty) Ltd 100 - 100 - 100(formerly known as Clearwater Dealership (Pty) Ltd)Investment company
Atterbury Parkdev Consortium (Pty) Ltd 100 - 48 - 64Investment company
Atterbury Property Cape (Pty) Ltd 90 - 67 - 60Development and investment company
Aldabri 96 (Pty) Ltd 100 100 52 100 80Property investment company
Razorbill Properties 91 (Pty) Ltd 100 100 65 100 100Investment company
Ile Plaisance (Pty) Ltd 1,000 - 43 - 650Development company
Brooklyn Square (Pty) Ltd 9,174,653 100 - 9,174,653 -Property investment company
Attcorn Property Gauteng (Pty) Ltd 100 100 44 100 100Development company
Atterbury Property Developments (Pty) Ltd 100 - 44 - 100(formerly known as Attcorn Property Cape (Pty) Ltd)Development company
Attpower Developments (Pty) Ltd 2 - 33 - 1Development company
Class A Trading (Pty) Ltd 100 - 33 - 50Development company
Erf 81 Lynwood (Pty) Ltd 100 - 22 - 33Development company
Leman Trading 2 (Pty) Ltd 100 - 17 - 50Development company
Mandela Development Corridor (Pty) Ltd 1,000 - 35 - 600Development company
Shock Proof Investments 23 (Pty) Ltd 100 - 33 - 50Development company
Bella Rosa Development (Pty) Ltd 100 - 22 - 33Development company
Superstrike Investments (Pty) Ltd 100 - 30 - 45Investment company
Rodgers Real Estate (Pty) LtdDevelopment company 100 - 33 - 50
25,736,142 6,858,862
2006 2006
13
Sec t i on 3 D IRECTORS ’ REPORT (con t i nued ) AT TA CQ
7. FIXED ASSETS
8. DIVIDENDS
9. DIRECTORS
10. SECRETARY
During the year the following developments were completed
and transferred to investment properties or buildings were
bought and brought into the commercial operations:
Lord Charles Office Park
Investec Pretoria Branch office
Brooklyn Square
Building G - DTI Campus
McCarthy Dealership
The following properties were disposed of:
Attstore
Brooklyn Park
The dividends declared and paid to members during the period
are as reflected in the attached statement of change in equity.
The directors of the Group during the accounting period and up
to the date of this report were as follows:
NFJ Haasbroek RSA
GJ Oosthuizen RSA Appointed 20 July 2006
P Tredoux RSA
LLS van der Watt RSA
BF van Niekerk RSA
The Group had no secretary during the year. TAG Incorporated
did the secretarial work with the permission of the shareholders
•
•
•
•
•
•
•
R 33,594,986
R 56,392,004
R 82,634,997
R 29,877,907
R 3,711,900
R 15,000,000
R 47,000,000
14
up until the date that the Group received confirmation from
CIPRO that the conversion to a public company was received
and processed.
In future, the secretarial function will be performed in-house.
T Smith was appointed as company secretary of the Group.
TAG Incorporated will continue in office in accordance with
section 270(2) of the Companies Act.
The Group accounted for rental income and expenditure based
on the contractual values in previous financial years. IAS 17 par
28 and 44 require lessors to account for lease income and
expenditure on the straight line basis. This deviation from
Generally Accepted Accounting Practices has been rectified
during the 2006 financial year and comparative figures restated
as referred to in note 2 of the financial statements.
BF van Niekerk
Pretoria
22 November 2006
11. AUDITORS
12. PREVIOUS DEVIATION FROM GENERALLY
ACCEPTED ACCOUNTING PRACTICES
Sec t i on 3 D IRECTORS ’ REPORT (con t i nued ) AT TA CQ
Company Group
2006 2005 2006 2005
Notes R R R R
1,372,914,898 270,907,148 1,737,266,572 565,782,306
- - 13,877,390 -
9,339,457 1,982,540 40,657,776 34,241,333
1,382,254,355 272,889,688 1,791,801,738 600,023,639
746,056,412 207,404,974 869,661,844 230,408,986
- - 9,739,965 79,270,805
189,355,071 49,282,012 384,166,551 233,922,607
446,842,872 16,202,702 528,233,378 56,421,241
636,197,943 65,484,714 912,399,929 290,343,848
1,382,254,355 272,889,688 1,791,801,738 600,023,639
Property, plant and equipment 3 - 3,339,502 23,427 17,457,044
Investment properties 4 56,836,708 - 441,289,032 166,198,698
Goodwill 5 - - 12,008,907 7,123,477
Investment in subsidiaries 6 365,273,464 141,928,511 - -
Investment in associates 7 861,064,136 777,005 1,255,310,158 5,436,310
Investments 8 4,344,807 85,973,090 4,344,807 336,418,069
Loans to subsidiaries, associates and joint ventures 9 69,529,299 37,220,240 - 30,220,027
Loans to shareholders 10 1,540,073 - 2,005,586 -
Straight line debtor 1,963,142 - 7,310,817 931,802
Other financial assets 11 12,363,269 1,668,800 14,973,838 1,996,879
Non-current assets held for sale 13
Inventory 14 - - 21,851,546 14,912,148
Trade and other receivables 5,596,720 772,070 10,404,974 14,139,261
Loans receivable 1,054,523 1,210,470 1,054,523 1,210,470
Cash and cash equivalents 2,688,214 - 7,346,733 3,979,454
Issued capital 15 314,084,948 3,312,989 314,084,948 3,312,989
Non-distributable reserve - - 56,615,912 -
Distributable reserve 431,971,464 204,091,985 498,960,984 227,095,997
Loans from shareholders 10 5,301,714 476,383 5,994,219 3,946,432
Other financial liabilities 16 65,481,934 7,591,580 297,931,107 183,446,457
Deferred tax 12 78,882,196 28,108,165 78,720,541 43,259,051
Loans from shareholders 10 413,210,289 - 413,210,289 -
Taxation 19,909,296 7,909,522 23,277,205 12,392,587
Trade and other payables 8,175,881 2,204,080 31,143,190 29,952,031
Current portion of borrowings 16 547,406 - 55,585,857 7,974,124
Bank overdraft 5,000,000 6,089,100 5,016,837 6,102,499
Loans to subsidiaries, associates and joint ventures 9 39,689,227 13,105,884 1,520,684 3,270,667
ASSETS
Non-current Assets
Current Assets
Total Assets
EQUITY AND LIABILITIES
Equity
Minority Interest
Liabilities
Non-Current Liabilities
Current Liabilities
Total Liabilities
Total Equity and Liabilities
Section 3 CONSOLIDATED ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2006 ATTACQ
CONSOLIDATED BALANCE SHEET
16
Company Group
2006 2005 2006 2005
Notes R R R R
Gross revenue - - 27,154,160 31,506,310
Cost of revenue - - (4,731,709) (1,583,254)
Rental income 2,194,206 - 30,346,901 -
Rental income - straight line adjustment 1,963,142 - 4,014,011 -
Other income 25,565,143 - 21,953,325 13,086,390
Fair value adjustments 357,712,271 121,182,810 302,702,551 202,861,161
Operating costs (7,632,064) (1,306,565) (45,894,062) (32,072,187)
Operating profit is stated after:
Profit on disposal of property, plant and equipment - - - 3,816
Profit on disposal of subsidiaries 280,660 - 7,471,016 -
Profit on disposal of investments 547,644 - 547,644 -
Fair value adjustments 357,712,271 121,182,810 302,881,378 202,861,161
- Investment properties 4 26,958,801 - 117,329,081 50,427,229
- Investments 330,753,470 121,182,810 185,552,297 152,433,932
Excess of acquirer's interest in the net fair value
of acquiree's identifiable assets, liabilities and
contingent liabilities over cost - - 13,465,621 14,014,376
Loss on disposal of property, plant and equipment - - 407,784 -
Loss on disposal of investment properties - - 63,888 72,608
Loss on disposal of subsidiaries - - 345,979 7,254,927
Loss on disposal of associates 525,190 - - -
Loss on disposal of investments - - 5,597,115 187,340
Equity ceded to minorities on buy-back of shares - - - 327,349
Auditors' remuneration 96,106 90,735 298,241 203,880
Audit fee 41,200 42,171 193,329 89,936
Other services 54,906 48,564 104,912 113,944
Depreciation
Property, plant and equipment 3 - - 199,236 287,251
Lease rentals - - 1,622,640 3,268,246
Premises - - 1,574,372 3,233,930
Equipment - - 48,268 34,316
Income / (Loss) from associates 20 - (1,549,048) 116,774,018 427,399
Investment income 21 3,404,144 3,400,226 5,413,983 3,101,567
Finance costs 22 (4,318,721) (2,097,662) (27,990,493) (18,043,464)
Taxation 19 (68,439,844) (17,497,016) (58,878,632) (30,303,867)
Minority interest - - (8,430,268) (55,055,628)
- - 22,422,451 29,923,056
379,802,698 119,876,245 335,545,177 213,798,420
378,888,121 119,629,761 429,742,685 199,283,922
310,448,277 102,132,745 370,864,053 168,980,055
310,448,277 102,132,745 362,433,785 113,924,427
Gross profit
Operating profit
Income
Expenditure
Profit after taxation
Profit before taxation
Profit attributable to ordinary shareholders
Section 3 CONSOLIDATED ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2006 ATTACQ
CONSOLIDATED INCOME STATEMENT
17
Fair
valu
ead
justm
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Sh
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Sh
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9,7
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40,4
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9,9
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-35,7
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172,8
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2,2
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-16,2
05,5
45
230,4
08,9
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21,3
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314,0
63,6
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56,6
15,9
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109,8
46,2
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32,4
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152,8
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29,3
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Cap
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9,9
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(59
2,1
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)-
Net
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the
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17
0,0
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,96
91
70
,04
6,9
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Min
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0,7
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5,6
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20
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9,0
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Tra
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1,4
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-P
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(8,0
00
,00
0)
(8,0
00
,00
0)
Sh
are
bu
y-
back
(35
0)
(69
9,6
50
)(7
00
,00
0)
Issu
eo
fsh
are
cap
ital
11
,73
93
11
,46
0,2
20
31
1,4
71
,95
9To
talch
an
ges
11
,38
93
10
,76
0,5
70
56
,61
5,9
12
74
,05
0,5
20
(17
2,8
72
,64
4)
11
6,1
10
,41
81
52
,89
72
54
,42
3,7
95
63
9,2
52
,85
8
No
te(s
)1
5
56
,20
1,8
57
11
2,5
40
(56
,31
4,3
97
)-
realis
ed
-2
00
6
Bala
nce
at
01
Ju
ly2
00
4
Bala
nce
at
01
Ju
ly2
00
5
Bala
nce
at
30
Ju
ne
20
06
Section 3 CONSOLIDATED ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2006 ATTACQ
CONSOLIDATED STATEMENT OF CHANGE IN EQUITY
18
Fair
valu
ead
justm
en
t
Sh
are
cap
ital
Sh
are
Su
bsid
iari
es
Inve
stm
en
tIn
ve
stm
en
tsS
hare
of
pro
fit
Sh
are
of
Dis
trib
uta
ble
Tota
l
pre
miu
mp
rop
ert
ies
of
asso
cia
tes
pro
fit
of
rese
rve
s
join
tve
ntu
res
RR
RR
RR
RR
R
9,7
80
4,0
16,0
20
48,1
46,1
24
-28,3
30,6
38
3,6
04,8
54
-28,0
40,1
24
112,1
47,5
40
9,9
15
3,3
03,0
74
118,8
42,5
90
-50,1
62,2
98
2,5
79,4
16
3,5
60,1
18
28,9
47,5
63
207,4
04,9
74
21,3
04
314,0
63,6
44
225,8
63,1
66
23,0
49,7
75
-1,9
15,8
16
3,7
13,0
15
177,4
29,6
92
746,0
56,4
12
Cap
italg
ain
sra
tech
an
ge
ad
justm
en
t2
83
,21
31
64
,04
02
1,2
05
(46
8,4
58
)-
Net
pro
fit
for
the
year
10
2,1
32
,74
51
02
,13
2,7
45
Tra
nsfe
rto
fair
valu
ead
justm
en
t-
20
05
83
,68
1,7
11
33
,33
7,2
16
4,1
63
,88
1(1
21
,18
2,8
08
)-
Cap
italg
ain
sta
xo
nfa
irvalu
ead
justm
en
t-
20
05
(11
,59
0,6
40
)(4
,83
3,8
96
)5
02
,40
5(6
03
,76
3)
16
,52
5,8
94
-S
hare
inp
rofits
/(lo
sses)
ofasso
cia
te-
20
05
(1,5
49
,04
8)
1,5
49
,04
8-
Fair
valu
ead
justm
en
tre
alis
ed
-2
00
5(1
,91
7,7
20
)(7
,99
4,9
70
)9
,91
2,6
90
-C
ap
italg
ain
sta
xo
nfa
irvalu
ead
justm
en
tre
alis
ed
-2
00
52
39
,90
21
,15
9,2
70
(1,3
99
,17
2)
-D
ivid
en
ds
paid
(6,1
62
,50
0)
(6,1
62
,50
0)
Sh
are
bu
y-
back
(11
5)
(1,1
49
,88
5)
(1,1
50
,00
0)
Issu
eo
fsh
are
cap
ital
25
04
36
,93
94
37
,18
9To
talch
an
ges
13
5(7
12
,94
6)
70
,69
6,4
66
-2
1,8
31
,66
0(1
,02
5,4
38
)3
,56
0,1
18
90
7,4
39
95
,25
7,4
34
Net
pro
fit
for
the
year
31
0,4
48
,27
73
10
,44
8,2
77
Tra
nsfe
rto
fair
valu
ead
justm
en
t-
20
06
12
9,2
64
,50
82
6,9
58
,80
12
01
,31
0,1
35
17
8,8
27
(35
7,7
12
,27
1)
-C
ap
italg
ain
sta
xo
nfa
irvalu
ead
justm
en
t-
20
06
(18
,74
3,3
54
)(3
,90
9,0
26
)(2
9,1
89
,97
0)
(25
,93
0)
51
,86
8,2
79
-F
air
valu
ead
justm
en
tre
alis
ed
-2
00
6(4
,09
4,2
44
)(6
,93
1,0
61
)1
1,0
25
,30
5-
Cap
italg
ain
sta
xo
nfa
irvalu
ead
justm
en
tre
alis
ed
-2
00
65
93
,66
51
,00
5,0
04
(1,5
98
,66
9)
-S
ince
acq
uis
itio
nre
serv
es
realis
ed
(25
2,9
73
,14
4)
(77
6,1
40
)2
53
,74
9,2
84
-C
ap
italg
ain
sta
xo
nsin
ce
acq
uis
itio
nre
serv
es
realis
ed
36
,61
6,7
38
11
2,5
40
(36
,72
9,2
78
)-
Div
iden
ds
paid
(82
,56
8,7
98
)(8
2,5
68
,79
8)
Sh
are
bu
y-
back
(35
0)
(69
9,6
50
)(7
00
,00
0)
Issu
eo
fsh
are
cap
ital
11
,73
93
11
,46
0,2
20
31
1,4
71
,95
9To
talch
an
ges
11
,38
93
10
,76
0,5
70
10
7,0
20
,57
62
3,0
49
,77
5(5
0,1
62
,29
8)
(66
3,6
00
)1
52
,89
71
48
,48
2,1
29
53
8,6
51
,43
8
No
te(s
)1
5
Bala
nce
at
01
Ju
ly2
00
4
Bala
nce
at
01
Ju
ly2
00
5
Bala
nce
at
30
Ju
ne
20
06
Section 3 CONSOLIDATED ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2006 ATTACQ
COMPANY STATEMENT OF CHANGE IN EQUITY
19
Company Group
2006 2005 2006 2005
Notes R R R R
Cash generated from operating activities 27.1 20,971,322 764,457 21,801,241 31,088,855
Investment income 3,404,144 3,400,226 5,413,983 3,101,567
Finance costs (4,318,721) (2,097,662) (27,990,493) (18,043,464)
Equity income from associates - 1,915,815 - 4,280,422
Dividends paid (30,062,020) (6,162,500) (38,062,020) (6,162,500)
Taxation paid (5,666,039) - (6,966,442) (898,579)
Proceeds of disposal of subsidiaries 27.3 4,382,660 1,420,000 4,382,660 1,133,192
Proceeds of disposal of associates 251,400 - 252,300 -
Proceeds of disposal of investments 27.4 7,061,562 8,262,500 7,061,562 9,112,500
Proceeds of disposal of property, plant & - - - 277,535
Proceeds of disposal of investment property - - 62,000,000 2,627,392
Subsidiaries acquired 27.2 (31,500,625) (1,003,989) (31,500,625) -
Property, plant & equipment acquired - (3,339,502) (76,525,101) (17,860,728)
Investment properties acquired (26,538,403) - (30,238,405) (91,925,024)
Loans receivable / repaid during the year 155,947 10,683,343 537,071 79,530
Investment in associates - (1,507,760) - (5,340,856)
Investments acquired - (15,088,102) - (15,088,102)
Capital raised / (redeemed) 23,521,716 (712,811) 23,521,716 (712,811)
Loans raised 58,437,760 11,144,965 58,685,468 129,326,429
Loans from group companies 31,408,134 - 34,955,029 3,270,667
Loans to group companies (47,731,523) (9,367,716) (1,980,683) (27,179,961)
Cash at the beginning of the period (6,089,100) (4,400,364) (2,123,045) (3,209,109)
Cash acquired with subsidiaries - - 444,580 -
Cash disposed with subsidiaries - - (1,338,900) -
(15,671,314) (2,179,664) (45,803,731) 13,366,301
(46,187,459) (573,510) (64,030,538) (116,984,561)
65,636,087 1,064,438 115,181,530 104,704,324
3,777,314 (1,688,736) 5,347,261 1,086,064
(2,311,786) (6,089,100) 2,329,896 (2,123,045)
Expenditure to maintain operating capacity
Expenditure to expand operating capacity
equipment
Cash flow from operating activities
Net cash (utilised in) / from operating activities
Cash flow from investing activities
Net cash from investing activities
Cash flow from financing activities
Net cash from financing activities
Total cash movement for the period
Total cash at end of the period
20
Section 3 CONSOLIDATED ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2006 ATTACQ
CONSOLIDATED CASH FLOW STATEMENT
1. PRESENTATION OF FINANCIAL STATEMENTS
1.1 INVESTMENT PROPERTY
1.2 PROPERTY, PLANT AND EQUIPMENT
Fair value
The consolidated financial statements are prepared in
accordance with South African Standards of Generally
Accepted Accounting Practice and the Companies Act of South
Africa. The consolidated financial statements have been
prepared under the historical cost convention as modified by
the revaluation of certain property, plant and equipment,
marketable securities and investment properties where
appropriate.
Accounting policies are consistent with that of the previous
year, except as stated in note 2.
Investment properties are those properties which are held for
rental revenue generation or capital appreciation, other than
owner occupied properties.
Investment property is recognised as an asset when, and only
when, it is probable that the future economic benefits that are
associated with the investment property will flow to the
enterprise, and the cost of the investment property can be
measured reliably.
Investment property is initially recognised at cost. Transaction
costs are included in the initial measurement.
Costs include costs incurred and costs incurred subsequently
to add to, or to replace a part of, or service a property. If a
replacement part is recognised in the carrying amount of the
investment property, the carrying amount of the replaced part is
derecognised.
Subsequent to initial measurement investment property is
measured at fair value.
A gain or loss arising from a change in fair value is included in
net profit or loss for the period in which it arises.
The cost of an item of property, plant and equipment is
recognised as an asset when:
• it is probable that future economic benefits associated with
the item will flow to the company, and
• the cost of the item can be measured reliably.
Costs include costs incurred initially to acquire or construct an
item of property, plant and equipment and costs incurred
subsequently to add to, replace part of, or service it. If a
replacement cost is recognised in the carrying amount of an
item of property, plant and equipment, the carrying amount of
the replaced part is derecognised.
Property, plant and equipment are carried at cost less
accumulated depreciation and any impairment losses.
Depreciation is provided on all property, plant and equipment
other than freehold land, to write down the cost, less residual
value, by equal instalments over their useful lives as follows:
The gain or loss arising from the derecognition of an item of
property, plant and equipment is included in profit or loss when
the item is derecognised. The gain or loss arising from the
derecognition of an item of property, plant and equipment is
determined as the difference between the net disposal
proceeds, if any, and the carrying amount of the item.
Subsidiaries are those entities over whose financial and
operating policies the Group has control so as to obtain the
benefits from their activities.
The Group financial statements include the assets, liabilities,
income and expenses and cash flows of the holding company
and its subsidiaries. The results of the subsidiaries are included
from the effective date of
On acquisition, the Group recognises the subsidiary's
identifiable assets, liabilities and contingent liabilities at fair
value, except for assets classified as held-for-sale, which are
recognised at fair value less costs to
Inter-company balances and transactions and any resulting
unrealised gains and losses are eliminated in preparing the
group financial statements.
acquisition.
sell.
1.3 INVESTMENT IN SUBSIDIARIES
Item Useful life
• Furniture and fittings 6 years
• Office equipment 5 years
• Computer equipment 3 years
• Other fixed assets 5 years
• Computer software 2 years
• Signage 10 years
Sec t i o n 3 A CCOUNT ING POL IC IES
21
1.3 INVESTMENT IN SUBSIDIARIES (continued)
1.4 INVESTMENT IN JOINT VENTURES
1.5 INVESTMENT IN ASSOCIATES
The accounting policies of the subsidiaries are consistent with
those of the holding
Joint ventures are those entities over which the Group has joint
control established by a contractual agreement.
An investment in a joint venture, where the interests are in the
operations of the joint venture, is accounted for using the
equity method, except when the asset is classified as held-for-
sale. Under the equity method, the investment in a joint venture
is initially recognised at cost and the carrying amount is
increased or decreased to recognise the Group's share of the
profits or losses of the investee after acquisition date. The use
of the equity method is discontinued from the date of which the
Group ceases to have joint control over, or have significant
influence in, a jointly controlled
An investment in a joint venture where joint control is
maintained over the assets of the joint venture, is accounted
for using the proportionate consolidation method. The use of
the proportionate consolidation method is discontinued from
the date on which the Group ceases to have joint control over,
or have significant influence in, a jointly controlled entity.
Associates are all entities over which the Group has significant
influence but not control. Significant influence is defined as
having between 20% and 50% of the shareholding and voting
rights.
An investment in an associate is accounted for using the equity
method, except when the asset is classified as held-for-sale.
Under the equity method, the investment is initially recognised
at cost and the carrying amount is increased or decreased to
recognise the Group's share of the profits or losses of the
investee after acquisition date. The use of the equity method is
discontinued from the date the Group ceases to have signi-
ficant influence over an associate.
Impairment losses are deducted from the carrying amount of
the investment in
Distributions received from the associates reduce the carrying
amount of the
Profits and losses resulting from transactions with associates
are recognised only to the extent of unrelated investors' interest
in the associate.
The excess of the Group's interest of the net fair value of an
associate's identifiable assets, liabilities and contingent
liabilities over the cost is accounted for as goodwill, and is
included in the carrying amount of the
The excess of the Group's share of the net fair value of an
associate's identifiable assets, liabilities and contingent
liabilities over the cost is excluded from the carrying amount of
the investment and is instead included in the profit for the
period in which the investment is
company.
entity.
associate.
investment.
associate.
acquired.
1.6 FINANCIAL INSTRUMENTS
1.6.1 INITIAL RECOGNITION
1.6.2 SUBSEQUENT MEASUREMENT
1.6.3 GAINS AND LOSSES
The Group classifies financial instruments, or their component
parts, on initial recognition as a financial asset, a financial
liability or an equity instrument in accordance with the
substance of the contractual arrangement.
Financial assets and financial liabilities are recognised on the
Group's balance sheet when the Group becomes party to the
contractual provisions of the instrument.
Financial assets and liabilities are recognised initially at fair
value. In the case of financial assets or liabilities not classified
at fair value through profit and loss, transaction costs that are
directly attributable to the acquisition or issue of the financial
instruments are added to the fair value.
Assets carried at fair value: the change in fair value shall be
recognised in profit or loss or in equity, as appropriate.
After initial recognition financial assets are measured as
follows:
• loans and receivables and held-to-maturity investments are
measured at amortised cost using the effective interest rate
method;
• investments in equity instruments that do not have a
quoted market price in an active market and whose fair
value cannot be reliably measured, are measured at cost;
• other financial assets, including derivatives, at fair value,
without any deduction for transaction costs which may
incur on sale or other disposal.
After initial recognition financial liabilities are measured as
follows:
• financial liabilities at fair value through profit or loss,
including derivatives that are liabilities, are measured at fair
value.
• other financial liabilities are measured at amortised cost
using the effective interest rate method.
A gain or loss arising from a change in a financial asset or
liability is recognised as follows:
• a gain or loss on a financial asset or liability classified as at
fair value through profit or loss is recognised in profit or
loss.
• a gain or loss on an available-for-sale financial asset is
recognised directly in equity, through the statement of
changes in equity, until the financial asset is derecognised,
at which time the cumulative gain or loss previously
recognised in equity is recognised in profit or loss.
• financial assets and financial liabilities carried at amortised
cost: a gain or loss is recognised in profit or loss when the
financial asset or financial liability is derecognised or
impaired, and through the amortisation process.
Sec t i o n 3 A CCOUNT ING POL IC IES (con t i nued )
22
ATTACQ
1.6 FINANCIAL INSTRUMENTS (continued)
1.6.4 LOANS TO / (FROM) GROUP COMPANIES
1.6.5 TRADE AND OTHER RECEIVABLES
1.6.6 TRADE AND OTHER PAYABLES
1.6.7 CASH AND CASH EQUIVALENTS
1.6.8 BANK OVERDRAFTS AND BORROWINGS
These include loans to holding companies, fellow subsidiaries,
subsidiaries, joint ventures and associates and are recognised
initially at fair value plus direct transaction costs.
Subsequently these loans are measured at amortised cost
using the effective interest rate method, less any impairment
loss recognised to reflect irrecoverable amounts.
On loans receivable an impairment loss is recognised in profit
or loss when there is objective evidence that it is impaired. The
impairment is measured as the difference between the
investment’s carrying amount and the present value of
estimated future cash flows discounted at the effective interest
rate computed at initial recognition.
Impairment losses are reversed in subsequent periods when
an increase in the investment’s recoverable amount can be
related objectively to an event occurring after the impairment
was recognised, subject to the restriction that the carrying
amount of the investment at the date the impairment is
reversed shall not exceed what the amortised cost would have
been had the impairment not been recognised.
Trade receivables are measured at initial recognition at fair
value, and are subsequently measured at amortised cost using
the effective interest rate method. Appropriate allowances for
estimated irrecoverable amounts are recognised in profit or
loss when there is objective evidence that the asset is
impaired. The allowance recognised is measured as the
difference between the asset's carrying amount and the
present value of estimated future cash flows discounted at the
effective interest rate computed at initial recognition.
Trade payables are initially measured at fair value, and are
subsequently measured at amortised cost, using the effective
interest rate method.
Cash and cash equivalents comprise cash on hand and
demand deposits, and other short-term highly liquid
investments that are readily convertible to a known amount of
cash and are subject to an insignificant risk of change in value.
These are initially and subsequently recorded at fair value.
Bank overdrafts and borrowings are initially measured at fair
value, and are subsequently measured at amortised cost,
using the effective interest rate method. Any difference
between the proceeds (net of transaction costs) and the
settlement or redemption of borrowings is recognised over the
term of the borrowings in accordance with the Group's
accounting policy for borrowing costs.
1.7 TAX
Current tax assets and liabilities
Deferred tax liabilities and assets
Current tax for current and prior periods is, to the extent
unpaid, recognised as a liability. If the amount already paid in
respect of current and prior periods exceeds the amount due
for those periods, the excess is recognised as an asset.
Current tax assets and liabilities for the current and prior
periods are measured at the amount expected to be recovered
from or paid to the tax authorities, using the tax rates (and tax
laws) that have been enacted or substantively enacted by the
balance sheet date.
A deferred tax liability is recognised for all taxable temporary
differences, except to the extent that the deferred tax liability
arises from:
• goodwill for which amortisation is not deductible for tax
purposes; or
• the initial recognition of an asset or liability in a transaction
which:
• is not a business combination; and
• at the time of the transaction, affects neither accounting
profit nor taxable profit (tax loss).
A deferred tax liability is recognised for all taxable temporary
differences associated with investments in subsidiaries,
branches and associates, and interests in joint ventures, except
to the extent that both of the following conditions are
satisfied:
• the parent, investor or venturer is able to control the timing
of the reversal of the temporary difference; and
• it is probable that the temporary difference will not reverse
in the foreseeable future.
A deferred tax asset is recognised for all deductible temporary
differences to the extent that it is probable that taxable profit
will be available against which the deductible temporary
differences can be utilised, unless the deferred tax asset arises
from the initial recognition of an asset or liability in a transaction
that:
• is not a business combination; and
• at the time of the transaction, affects neither accounting
profit nor taxable profit (tax loss).
A deferred tax asset is recognised for the carry forward of
unused tax losses to the extent that it is probable that future
taxable profit will be available against which the unused tax
losses can be utilised.
Deferred tax assets and liabilities are measured at the tax rates
that are expected to apply to the period when the assets are
realised or the liability is settled, based on tax rates (and tax
• the initial recognition of goodwill; or
laws) that have been enacted or substantively enacted by the
balance sheet date.
Sec t i o n 3 A CCOUNT ING POL IC IES (con t i nued )
23
ATTACQ
1.7 TAX (continued)
1.8 INVENTORIES
1.9 SHARE CAPITAL AND EQUITY
Deferred tax liabilities and assets
Deferred tax on fair value adjustment arising from use is raised
at normal rates being 29%.
Deferred tax on fair value adjustment arising through realisation
is raised at the inclusion rate of 50% of normal tax rates being
14.5%.
Current and deferred taxes are recognised as income or an
expense and included in profit or loss for the period, except to
the extent that the tax arises from:
• a transaction or event which is recognised, in the
same or a different period, directly in equity, or
• a business combination.
Current tax and deferred taxes are charged or credited directly
to equity if the tax relates to items that are credited or charged,
in the same or a different period, directly to equity.
Inventories are measured at the lower of cost and net realisable
value.
Net realisable value is the estimated selling price in the
ordinary course of business less the estimated costs of
completion and the estimated costs necessary to make the
sale.
The cost of inventories comprise of all costs of purchases,
costs of conversion and other costs incurred in bringing the
inventories to their present location and condition.
When inventories are sold, the carrying amount of those
inventories are recognised as an expense in the period in
which the related revenue is recognised. The amount of any
write-down of inventories to net realisable value and all losses
of inventories are recognised as an expense in the period the
write-down or loss occurs. The amount of any reversal of any
write-down of inventories, arising from an increase in net
realisable value, are recognised as a reduction in the amount of
inventories recognised as an expense in the period in which
the reversal occurs.
An equity instrument is any contract that evidences a residual
interest in the assets of an entity after deducting all of its
liabilities.
If the Group acquires its own equity instruments, those
instruments are deducted from equity. No gain or loss is
recognised in profit or loss on the purchase, sale, issue or
cancellation of the Group's own equity instruments.
Consideration paid or received shall be recognised directly in
equity.
Tax expense
Sec t i on 3 ACCOUNT ING POL IC IES (con t i nued )
24
ATTACQ
• the amount of revenue can be measured reliably;
• it is probable that the economic benefits associated with
the transaction will flow to the Group;
• the stage of completion of the transaction at the balance
sheet date can be measured reliably; and
• the cost incurred for the transaction and the costs to
complete the transaction can be measured reliably.
When the outcome of the transaction involving the rendering of
services cannot be estimated reliably, revenue shall be
recognised only to the extent of the expenses recognised that
are recoverable.
Service revenue is recognised by reference to the stage of
completion of the transaction at balance sheet date. Stage of
completion is determined by services performed to date as a
percentage of total services to be performed.
Revenue is measured at the fair value of the consideration
received or receivable and represents the amounts receivable
for goods and services provided in the normal course of
business, net of trade discounts and volume rebates, and value
added tax.
Interest is recognised, in profit or loss, using the effective
interest rate method.
Dividends are recognised, in profit or loss, when the Group's
right to receive payment has been established.
Service fees included in the price of the product are recog-
nised as revenue over the period during which the service is
performed.
Borrowing costs that are directly attributable to the acquisition,
construction or production of a qualifying asset are capitalised
as part of the cost of that asset until such time as the asset is
ready for its intended use. The amount of borrowing costs
eligible for capitalisation is determined as follows:
• actual borrowing costs on funds specifically borrowed for
the purpose of obtaining qualifying assets less any
temporary investment of those borrowings.
• weighted average of the borrowing costs applicable to the
entity on funds generally borrowed for the purpose of
obtaining a qualifying asset. The borrowing costs
capitalised do not exceed the total borrowing costs
incurred.
The capitalisation of borrowing costs commences when:
• expenditure for the asset has occurred;
• borrowing costs have been incurred, and
• activities that are necessary to prepare the assets for its
intended use or sale are in progress.
Capitalisation is suspended during extended periods in which
active development is interrupted.
Capitalisation ceases when substantially all the activities
necessary to prepare the qualifying asset for its intended use
or sale are complete.
All other borrowing costs are recognised as an expense in the
period in which they are incurred.
1.13 BORROWING COSTS
Sec t i on 3 ACCOUNT ING POL IC IES (con t i nued )
1.10 LEASES
1.10.1 OPERATING LEASES - LESSOR
1.10.2 OPERATING LEASES - LESSEE
1.11 GOODWILL
1.12 REVENUE
A lease is classified as a finance lease if it transfers
substantially all the risks and rewards incidental to ownership.
A lease is classified as an operating lease if it does not transfer
substantially all the risks and rewards incidental to ownership.
Operating lease income is recognised as income on the
straight line basis over the lease term.
Initial direct costs incurred in negotiating and arranging
operating leases are added to the carrying amount of the
leased asset and recognised as an expense over the lease
term on the same basis as the lease income.
Income for leases is disclosed under revenue in the income
statement.
Operating lease payments are recognised as an expense on a
straight line basis over the lease term. The difference between
the amounts recognised as an expense and the contractual
payments are recognised as an operating lease asset. This
liability is not discontinued.
Any contingent rent is expensed in the period it is incurred.
Goodwill is initially measured at cost, being the excess of a
business combination over the Group's interest of the net fair
value of the identifiable assets, liabilities and contingent
liabilities.
Subsequently goodwill, acquired in a business combination, is
carried at cost less any accumulated impairment.
The excess of the Group's interest in the net fair value of the
identifiable assets, liabilities and contingent liabilities over the
cost of the business combination is immediately recognised in
profit or loss.
Revenue from the sale of goods is recognised when all the
following conditions have been satisfied:
• the Group has transferred to the buyer the significant risks
and rewards of ownership of the goods;
• the Group retains neither continuing managerial
involvement to the degree usually associated with owner-
ship nor effective control over the goods sold;
• the amount of revenue can be measured reliably;
• it is probable that the economic benefits associated with
the transaction will flow to the Group; and
• the costs incurred or to be incurred in respect of the
transaction can be measured reliably.
When the outcome of a transaction involving the rendering of
services can be estimated reliably, revenue associated with the
transaction is recognised by reference to the stage of
completion of the transaction at the balance sheet date. The
outcome of a transaction can be estimated reliably when all the
following conditions are satisfied:
25
ATTACQ
Company Group
2006 2005 2006 2005
R R R R
(931,802)
43,123,939
:
Previously stated - - - 167,130,500Adjustment - - -
- - -
Previously stated - - -
Adjustment - - - 135,112
- - -
Previously stated - - - -
Adjustment - - - 931,802
- - -
Previously stated - - - -
Adjustment - - - 913,802
- - -
Previously stated - - - 51,359,031
Adjustment - - - (931,802)
- - -
Previously stated - - - 30,168,764
Adjustment - - - 135,112
- - -
.
166,198,698
43,259,051
931,802
913,802
50,427,229
30,303,876
2. CHANGES TO ACCOUNTING POLICIES
Balance sheet
Investment property
Deferred tax
Straight line debtor
Income statement
Straight line rentals
Fair value adjustments on investment properties
Taxation
Section 3 CONSOLIDATED FINANCIAL STATEMENTS ATTACQ
NOTES TO THE CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
ANNUAL
26
The annual financial statements have been prepared in
accordance with South African Statements of Generally
Accepted Accounting Practice on a basis consistent with the
prior year except for:
IAS 17 Leases.
In previous years the Group accounted for leases as lessor
and lessee on the contractual basis. This constituted a
deviation from Generally Accepted Accounting Practices.
The Group amended its accounting policies to rectify this.
Leases are henceforth accounted for on the straight line
basis over the contractual period.
No adjustment were shown for the pre 30 June 2005 figures
as there were no companies in the group that needed IAS 17
adjustments prior to 30 June 2005.
Comparative figures have been restated. The aggregate
effect for the year ended 30 June 2005 is as follows:
Company
2006 2005
Cost/ Accumulated Carrying Cost/ Accumulated Carrying
Valuation depreciation value Valuation depreciation value
R R R R R R
Total - - - 3,339,502 - 3,339,502
Company
2006 Carrying Acquisitions Disposals/ Depreciation Carrying
value at transfers value at
beginning of end of the
the year year
R R R R R
3,339,502 - (3,339,502) - -
R R R R R
- 3,339,502 - - 3,339,502
Land and buildings - - - 3,339,502 - 3,339,502
Furniture and fittings - - - - - -
Office equipment - - - - - -
Computer equipment - - - - - -
Computer software - - - - - -
Signage - - - - - -
Motor vehicles - - - - - -
The carrying value of property, plant and equipment can be reconciled as follows:
Land and buildings 3,339,502 - (3,339,502) - -
Furniture and fittings - - - - -
Office equipment - - - - -
Computer equipment - - - - -
Computer software - - - - -
Signage - - - - -
Motor vehicles - - - - -
Land and buildings - 3,339,502 - - 3,339,502
Furniture and fittings - - - - -
Office equipment - - - - -
Computer equipment - - - - -
Computer software - - - - -
Motor vehicles - - - - -
2005 Carrying Acquisitions Disposals/ Depreciation Carrying
value at transfers value at
beginning of end of the
the year year
3. PROPERTY, PLANT AND
EQUIPMENT
27
Section 3 CONSOLIDATED FINANCIAL STATEMENTS ATTACQ
NOTES TO THE CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
ANNUAL
28
Group
2006 2005
Cost/ Accumulated Carrying Cost/ Accumulated Carrying
Valuation depreciation value Valuation depreciation value
R R R R R R
Total 29,404 (5,977) 23,427 18,052,150 (595,106) 17,457,044
Group
2006 Carrying Acquisitions Disposals/ Depreciation Carrying
value at transfers value at
beginning of end of the
the year year
R R R R R
17,457,044 76,608,789 (93,843,170) (199,236) 23,427
R R R R R
13,203,731 17,860,728 (13,320,164) (287,251)
Land and buildings - - - 16,885,832 - 16,885,832
Furniture and fittings - - - 596,090 (326,010) 270,080
Office equipment - - - 112,653 (66,321) 46,332
Computer equipment - - - 261,352 (144,858) 116,494
Computer software - - - 30,435 (24,759) 5,676
Signage 29,404 (5,977) 23,427 - - -
Motor vehicles - - - 165,788 (33,158) 132,630
The carrying value of property, plant and equipment can be reconciled as follows:
Land and buildings 16,885,832 76,440,659 (93,326,491) - -
Furniture and fittings 270,080 138,726 (248,974) (159,832) -
Office equipment 46,332 - (42,607) (3,725) -
Computer equipment 116,494 - (89,984) (26,510) -
Computer software 5,676 - (2,484) (3,192) -
Signage - 29,404 - (5,977) 23,427
Motor vehicles 132,630 - (132,630) - -
Land and buildings
Furniture and fittings 311,010 174,908 (70,052) (145,786) 270,080
Office equipment 41,736 77,646 (43,039) (30,011) 46,332
Computer equipment 98,222 146,374 (71,655) (56,447) 116,494
Computer software 4,466 23,752 (5,107) (17,435) 5,676
Motor vehicles - 254,068 (83,866) (37,572) 132,630
2005 Carrying Acquisitions Disposals/ Depreciation Carrying
value at transfers value at
beginning of end of the
the year year
17,457,044
12,748,297 17,183,980 (13,046,445) - 16,885,832
3. PROPERTY, PLANT AND
EQUIPMENT (continued)
Company Group
2006 2005 2006 2005
R R R R
- 3,339,502 - 16,885,832
Land and buildings consist of:
Portion 469 (a portion of portion 433) of the Farm Elandspoort 357 - 3,339,502 - 3,339,502
Erven 1084 & 1166 Marshall Town - - - 378,422
Portion 4 of Erf 757, Menlo Park - - - 9,900,113
Erf 504, Brooklyn - - - 3,267,795
Land and buildings are encumbered as per note 16.
Section 3 CONSOLIDATED FINANCIAL STATEMENTS ATTACQ
NOTES TO THE CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
ANNUAL
Company Group
2006 2005 2006 2005
R R R R
Balance at beginning of the year - - 166,198,698 13,500,000
Additions - - 128,498,650 104,971,469
Transfers 29,877,907 - 93,326,491 -
Disposals - - (64,063,888) (2,700,000)
Net gain from fair value adjustment 26,958,801 - 117,329,081 50,427,229
Reconciled as follows:
Cost 29,877,907 - 289,941,797 111,320,217
Fair value adjustment 26,958,801 - 151,347,235 54,878,481
Investment properties consist of:
Balance at beginning of the year - - 15,000,000 13,500,000
Net gain from fair value adjustment - - - 409,075
Additions - - 63,888 1,090,925
Disposals - - (15,063,888) -
Balance at end of the year - - - 15,000,000
Cost - - - 10,139,673
Fair value adjustments - - - 4,860,327
- - - 15,000,000
Balance at beginning of the year - - - -
Transfer from property, plant and equipment 3,339,502 - 3,339,502 -
Additions 26,538,405 - 26,538,405 -
Net gain from fair value adjustment 28,921,943 - 28,921,943 -
Straight line rental adjustment against fair value (1,963,142) - (1,963,142) -
Balance at end of the year 56,836,708 - 56,836,708 -
Cost 29,877,907 - 29,877,907 -
Fair value adjustments 28,921,943 - 28,921,943 -
Straight line rental adjustment against fair value (1,963,142) - (1,963,142) -
56,836,708 - 56,836,708 -
Balance at beginning of the year - - 19,601,100 -
Net gain from fair value adjustment - - 6,450,000 6,700,000
Additions - - - 13,000,000
Straight line rental adjustment against fair value - - (33,133) (98,900)
Balance at end of the year - - 26,017,967 19,601,100
Cost - - 13,000,000 13,000,000
Fair value adjustments - - 13,150,000 6,700,000
Straight line rental adjustment against fair value - - (132,033) (98,900)
- - 26,017,967 19,601,100
Balance at beginning of the year - - 47,000,000 -
Net gain from fair value adjustment - - - 16,000,000
Additions - - - 31,000,000
Disposals - - (47,000,000) -
Balance at end of the year - - - 47,000,000
Cost - - - 31,000,000
Fair value adjustments - - - 16,000,000
- - - 47,000,000
Balance at beginning of the year - - 9,477,654 -
Net gain from fair value adjustment - - 651,259 -
Additions - - 384,241 9,514,500
Straight line rental adjustment against fair value - - 36,846 (36,846)
Balance at end of the year - - 10,550,000 9,477,654
Balance at end of the year 56,836,708 - 441,289,032 166,198,698
Total value 56,836,708 - 441,289,032 166,198,698
4. INVESTMENT PROPERTIES
Fair value
Attstore
Reconciled as follows:
Building G, DTI Campus
Reconciled as follows:
Brooklyn Gardens ("Aldabri")
Reconciled as follows:
Brooklyn Park ("Aldabri")
Reconciled as follows:
FNB House ("Aldabri")
29
Section 3 CONSOLIDATED FINANCIAL STATEMENTS ATTACQ
NOTES TO THE CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
ANNUAL
Balance at end of the year - - 77,023,374 -
Company Group
2006 2005 2006 2005
R R R R
Cost - - 9,898,741 9,514,500
Straight line rental adjustment against fair value - - - (36,846)
Fair value adjustments - - 651,259 -
- - 10,550,000 9,477,654
Balance at beginning of the year - - 52,897,073 -
Net gain from fair value adjustment - - 12,299,781 20,040,187
Additions - - 100,218 33,459,813
Straight line rental adjustment against fair value - - (429,364) (602,927)
Balance at end of the year - - 64,867,708 52,897,073
Cost - - 33,560,031 33,459,813
Straight line rental adjustment against fair value - - (1,032,291) (602,927)
Fair value adjustments - - 32,339,968 20,040,187
- - 64,867,708 52,897,073
Balance at beginning of the year - - - -
Net gain from fair value adjustment - - 2,138,100 -
Additions - - 3,711,900 -
Straight line rental adjustment against fair value - - (189,023) -
Balance at end of the year - - 5,660,977 -
Cost - - 3,711,900 -
Straight line rental adjustment against fair value - - (189,023) -
Fair value adjustments - - 2,138,100 -
- - 5,660,977 -
Balance at beginning of the year - - 20,222,871 -
Net gain from fair value adjustment - - 6,468,999 8,209,769
Transfer from property, plant and equipment - - - 12,206,231
Additions - - 65,001 -
Straight line rental adjustment against fair value - - (214,809) (193,129)
Balance at end of the year - - 26,542,062 20,222,871
Cost - - 12,271,232 12,206,231
Straight line rental adjustment against fair value - - (407,938) (193,129)
Fair value adjustments - - 14,678,768 8,209,769
- - 26,542,062 20,222,871
Balance at beginning of the year - - 2,000,000 -
Disposals - - (2,000,000) -
Additions - - - 2,000,000
Balance at end of the year - - - 2,000,000
Cost - - - 2,000,000
- - - 2,000,000
Balance at beginning of the year - - - -
Net gain from fair value adjustment - - 13,155,015 -
Transfer from property, plant and equipment - - 33,594,985 -
Straight line rental adjustment against fair value - - (55,202) -
Balance at end of the year - - 46,694,798 -
Cost - - 33,594,985 -
Straight line rental adjustment against fair value - - (55,202) -
Fair value adjustments - - 13,155,015 -
- - 46,694,798 -
Balance at beginning of the year - - - -
Net gain from fair value adjustment - - 21,257,996 -
Transfer from property, plant and equipment - - 56,392,004 -
Straight line rental adjustment against fair value - - (626,626) -
4. INVESTMENT PROPERTIES (continued)
(continued)FNB House (”Aldabri”)
Reconciled as follows:
Waterkloof Corner ("Aldabri")
Reconciled as follows:
McCarthy Dealership ("Aldabri")
Reconciled as follows:
Lady Brooks
Reconciled as follows:
Admiral Island
Reconciled as follows:
Lord Charles and Lady Brooks Office Park
Reconciled as follows:
Investec Pretoria Branch offices
30
Section 3 CONSOLIDATED FINANCIAL STATEMENTS ATTACQ
NOTES TO THE CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
ANNUAL
Fair value adjustments - - 21,257,996 -
- - 77,023,374 -
Balance at the end of the year 28,187,871 18,547,092 - -
Company Group
2006 2005 2006 2005
R R R R
Cost - - 56,392,004 -
Straight line rental adjustment against fair value - - (626,626) -
Balance at beginning of the year - - - -
Net gain from fair value adjustment - - 30,000,000 -
Additions - - 97,634,997 -
Straight line rental adjustment against fair value - - (539,559) -
Balance at end of the year - - 127,095,438 -
Cost - - 97,634,997 -
Straight line rental adjustment against fair value - - (539,559) -
Fair value adjustments - - 30,000,000 -
- - 127,095,438 -
Valuations are based on open market value for existing use.
The properties have been mortgaged as per note 16.
Carrying value at the beginning of the year - - 7,123,477 (181)
Additions - - 4,885,430 7,123,477
- - - 181
Cost 101,696,707 3,522,019 - -
Net gain from fair value adjustment 263,576,757 138,406,492 - -
Balance at the beginning of the year 6,148,799 5,308,745 - -
Disposals (7,500) - - -
Net (loss)/gain from fair value adjustments (6,141,299) 840,054 - -
Balance at the end of the year - 6,148,799 - -
Balance at the beginning of the year 43,399,650 27,328,229 - -
Disposals (4,094,306) (1,917,770) - -
Additions 19,293,286 - - -
Net gain from fair value adjustments 35,583,282 17,989,191 - -
Balance at the end of the year 94,181,912 43,399,650 - -
Balance at the beginning of the year 18,547,092 10,000,725 - -
Net gain from fair value adjustments 9,640,779 8,546,367 - -
56,836,708 - 441,289,032 166,198,698
Carrying value at the end of the year - - 12,008,907 7,123,477
Balance at the end of the year 365,273,464 141,928,511 - -
4. INVESTMENT PROPERTIES (continued)
Investec Pretoria Branch offices (continued)
Reconciled as follows:
Brooklyn Square shopping centre
Reconciled as follows:
Atterbury Property Holdings (Pty) Ltd
Atterbury Property Cape Holdings (Pty) Ltd
Atterbury Attfund Investments (Pty) Ltd
5. GOODWILL
6. INVESTMENT IN SUBSIDIARIES
Fair value
31
The effective date of the revaluations was 30 June 2006. The
revaluations were performed by an independent valuer, A de
Wet (B.Proc.LLB (UP), Nat Dip in Real Estate (Unisa)). A de
Wet is not connected to the company and has recent
experience in location and category of the investment
property being valued.
Building G, DTI Campus, was however revalued by the
directors of the company based on the fair market value.
Excess of acquirer's interest in the net fair value of acquiree’s
identifiable assets, liabilities and contingent liabilities over
cost
Section 3 CONSOLIDATED FINANCIAL STATEMENTS ATTACQ
NOTES TO THE CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
ANNUAL
Balance at the beginning of the year 4,690,241 2,416,979 - -
Additions 5,342,851 - - -
Net gain from fair value adjustments 890,182 2,273,262 - -
Balance at the end of the year 10,923,274 4,690,241 - -
Balance at the beginning of the year 3,189,828 1,000 - -
Additions 3,064,247 - - -
Disposals - (490) - -
Net gain from fair value adjustments 5,776,965 3,189,318 - -
Balance at the end of the year 12,031,040 3,189,828 - -
Balance at the beginning of the year 1,000 1,000 - -
Net gain from fair value adjustments 10,473,242 - - -
Balance at the end of the year 10,474,242 1,000 - -
Balance at the beginning of the year 3,003,902 2,689,733 - -
Net (loss)/gain from fair value adjustments (54,310) 314,169 - -
Balance at the end of the year 2,949,592 3,003,902 - -
Balance at the beginning of the year 75 75 - -
Additions 2,130,314 - - -
Balance at the end of the year 2,130,389 75
Balance at the beginning of the year 5,633,256 - - -
Additions 11,266,502 1,003,989 - -
Net gain from fair value adjustments 9,241,060 4,629,267 - -
Balance at the end of the year 26,140,818 5,633,256 - -
Balance at the beginning of the year 60 60 - -
Disposals (60) - - -
Balance at the end of the year - 60 - -
Balance at the beginning of the year - - - -
Additions 18,943,206 - - -
Net gain from fair value adjustments 12,421,498 - - -
Balance at the end of the year 31,364,704 - - -
Balance at the beginning of the year - - - -
Additions 100 - - -
Net gain from fair value adjustments 20,133 - - -
Balance at the end of the year 20,233 - - -
Balance at the beginning of the year - - - -
Additions 253,215 - - -
Balance at the end of the year 253,215 - - -
Balance at the beginning of the year - - - -
Additions 7,798,571 - - -
Net gain from fair value adjustments 3,057,934 - - -
Balance at the end of the year 10,856,505 - - -
Balance at the beginning of the year - - - -
Transferred from associates 940 - - -
Company Group
2006 2005 2006 2005
R R R R
- -
Balance at the end of the year 940 - - -
6. INVESTMENT IN SUBSIDIARIES (continued)
Erf 321 Hatfield Beleggings (Pty) Ltd
Lady Brooks (Pty) Ltd
Lord Charles & Lady Brooks Office Park Holdings (Pty) Ltd
Attstore (Pty) Ltd
Atterbury Property Johannesburg (Pty) Ltd
Interactive Trading 800 (Pty) Ltd
Nieuw Pivot Investments (Pty) Ltd
Highgrove Property Holdings (Pty) Ltd
Autumn Star Trading 597 (Pty) Ltd
Attcorn Property Gauteng (Pty) Ltd
Aldabri 96 (Pty) Ltd
Attcorn Property Holdings (Pty) Ltd
32
Section 3 CONSOLIDATED FINANCIAL STATEMENTS ATTACQ
NOTES TO THE CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
ANNUAL
Company Group
2006 2005 2006 2005
R R R R
Total value 365,273,464 141,928,511 - -
Balance at the beginning of the year 67 67 - -
Additions 1,360,161 - - -
Disposals (33) - - -
Net gain from fair value adjustments 7,753,982 - - -
Balance at the end of the year 9,114,177 67 - -
Balance at the beginning of the year 57,314,541 11,414,457 - -
Additions 28,728,952 - - -
Net gain from fair value adjustments 40,601,059 45,900,084 - -
Balance at the end of the year 126,644,552 57,314,541 - -
Cost 861,064,136 865 1,138,536,140 3,046,478
Share of retained profits since acquisition - 776,140 116,774,018 2,389,832
Balance at the end of the year 861,064,136 777,005 1,255,310,158 5,436,310
Balance at the beginning of the year 415 100 415 -
Additions 525 315 525 515
Transfer to subsidiaries (940) - (940) -
Disposals - - - (100)
Balance at the end of the year - 415 - 415
Balance at the beginning of the year 251,145 1,496,648 251,145 1,496,648
Disposals (251,145) - (251,145) -
Share of retained profits for the year - (1,245,503) - (1,245,503)
Balance at the end of the year - 251,145 - 251,145
Balance at the beginning of the year 190,889 50 190,889 -
Disposals (190,889) - (190,889) -
Share of retained profits for the year - 190,839 - 190,889
Balance at the end of the year - 190,889 - 190,889
Balance at the beginning of the year 100 - 100 29
Additions/(Disposals) (100) 100 (100) (29)
Balance at the end of the year - 100 - -
Balance at the beginning of the year - - 33 33
Disposals - - (33) -
Balance at the end of the year - - - 33
Balance at the beginning of the year - - 2,693,066 2,682,684
Disposals - - (2,693,066) -
Share of retained profits for the year - - - 10,382
Balance at the end of the year - - - 2,693,066
Balance at the beginning of the year 197,371 50 197,371 50
Disposals (197,371) - (197,371) -
Share of retained profits for the year - 197,321 - 197,321
Balance at the end of the year - 197,371 - 197,371
Balance at the beginning of the year - - 40 -
Disposals - - (40) -
Additions - - - 40
Balance at the end of the year - - - 40
6. INVESTMENT IN SUBSIDIARIES (continued)
Riverport Trading 143 (Pty) Ltd
Atterbury Property Investments (Pty) Ltd
Attcorn Property Holdings (Pty) Ltd
Parkdev (Pty) Ltd
Atterbury Wedge (Pty) Ltd
Atterbury Property One (Pty) Ltd
Erf 81 Lynnwood (Pty) Ltd
Mandela Development Corridor (Pty) Ltd
National Formatt Property Commercial Consultants (Pty) Ltd
Bella Rosa Development (Pty) Ltd
7. INVESTMENT IN ASSOCIATES
Fair value
33
Section 3 CONSOLIDATED FINANCIAL STATEMENTS ATTACQ
NOTES TO THE CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
ANNUAL
Company Group
2006 2005 2006 2005
R R R R
Balance at the beginning of the year - - 5 -
Disposals - - (5) -
Additions - - - 5
Balance at the end of the year - - - 5
Balance at the beginning of the year - - 50 -
Disposals - - (50) -
Additions - - - 50
Balance at the end of the year - - - 50
Balance at the beginning of the year - - 50 -
Disposals - - (50) -
Additions - - - 50
Balance at the end of the year - - - 50
Balance at the beginning of the year - - 50 50
Disposals - - (50) -
Balance at the end of the year - - - 50
Balance at the beginning of the year - - 1,966,111 45
Disposals - - (1,966,111) -
Additions - - - 1,966,066
Balance at the end of the year - - - 1,966,111
Balance at the beginning of the year - - - -
Transfer from other investments 861,064,136 - 649,171,662 -
Share of retained profits for the year - - 116,774,018 -
Additions - - 489,364,478 -
Balance at the end of the year 861,064,136 - 1,255,310,158 -
Balance at the beginning of the year 137,085 2,744,604 137,085 2,744,604
Share of retained losses for the year - (2,607,519) - (2,607,519)
Disposals (137,085) - (137,085) -
Balance at the end of the year - 137,085 - 137,085
The Group’s proportionate interest in associates:
Attcorn Property Holdings (Pty) Ltd - 42%
Parkdev (Pty) Ltd (formerly Atterbury Property Management (Pty) Ltd) - 50%
Atterbury Wedge (Pty) Ltd - 50%
Atterbury Property One (Pty) Ltd - 100%
Erf 81 Lynnwood (Pty) Ltd - 22%
Mandela Development Corridor (Pty) Ltd - 35%
National Formatt Property Commercial Consultants (Pty) Ltd - 50%
Bella Rosa Development (Pty) Ltd - 22%
Attpower Development (Pty) Ltd - 33%
Shock Proof Investments 23 (Pty) Ltd - 33%
Class A Trading (Pty) Ltd - 33%
Rodgers Real Estate (Pty) Ltd - 33%
Superstrike Investments (Pty) Ltd - 33%
Attfund Limited 44% -
The Group's share of the results of its associates and its share of the assets and liabilities are as follows:
Attfund Limited 2,335,866,280 2,334,757,154 173,971,600 469,218,200
Total value 861,064,136 777,005 1,255,310,158 5,436,310
2006 2005
% %
7. INVESTMENT IN ASSOCIATES (continued)
Attpower Developments (Pty) Ltd
Shock Proof Investments 23 (Pty) Ltd
Class A Trading (Pty) Ltd
Rodgers Real Estate (Pty) Ltd
Superstrike Investments (Pty) Ltd
Attfund Limited
Top Coat Property Investments 5 (Pty) Ltd
Proportion Owned
Name Assets Liabilities Revenue Profit
34
Section 3 CONSOLIDATED FINANCIAL STATEMENTS ATTACQ
NOTES TO THE CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
ANNUAL
(1,676,755)
Company Group
2006 2005 2006 2005
R R R R
Cost 2,100 23,215,141 2,100 77,466,410
Fair value adjustment 4,342,707 62,757,949 4,342,707 258,951,659
Balance at the beginning of the year 75,245,697 41,704,935 313,925,989 172,086,942
Additions 593,814,380 6,350,000 161,290,984 6,350,000
Disposals (9,306,076) (8,323,209) (9,306,076) (9,869,501)
Net gain from fair value adjustment 201,310,135 35,513,971 183,260,765 145,358,548
Transfer to associates (861,064,136) - (649,171,662) -
Balance at the end of the year - 75,245,697 - 313,925,989
Balance at the beginning of the year 50 50 50 50
Disposals (50) - (50) -
Balance at the end of the year - 50 - 50
Balance at the beginning of the year 4,311,363 16 4,311,363 16
Additions - 5,988,102 - 5,988,102
Disposals (4,311,363) - (4,311,363) -
Net loss from fair value adjustment - (1,676,755) -
Balance at the end of the year - 4,311,363 - 4,311,363
Balance at the beginning of the year - - 11,764,687 6,676,427
Transfer to other financial assets - - (13,877,390) -
Net gain from fair value adjustment - - 2,112,703 5,088,260
Balance at the end of the year - - - 11,764,687
Balance at the beginning of the year 4,163,880 - 4,163,880 -
Net gain from fair value adjustment 178,827 4,163,880 178,827 4,163,880
Balance at the end of the year 4,342,707 4,163,880 4,342,707 4,163,880
Balance at the beginning of the year 2,250,000 - 2,250,000 -
Additions 150 2,750,000 150 2,750,000
Disposals (2,250,150) - (2,250,150) -
Net loss from fair value adjustments - (500,000) - (500,000)
Balance at the end of the year - 2,250,000 - 2,250,000
Balance at the beginning of the year 2,100 2,100 2,100 2,100
Balance at the end of the year 2,100 2,100 2,100 2,100
The Group held investments in the following companies:
Attfund Limited - 16.6%
Carty Carvenience (Pty) Ltd - 25.0%
Gosforth Park Holdings (Pty) Ltd - 12.5%
Rainprop (Pty) Ltd 1.5% 1.5%
Infotech (Pty) Ltd - 4.0%
Rainprop Development & Construction Joint Venture - 32.5%
Balance at the end of the year 4,344,807 85,973,090 4,344,807 336,418,069
2006 2005
% %
Unlisted
8. INVESTMENTS
Unlisted shares at fair value
Attfund Limited
Carty Carvenience (Pty) Ltd
Gosforth Park Holdings (Pty) Ltd
Erf 321 Hatfield Beleggings (Pty) Ltd
(right to receive rental income)
Rainprop Development & Construction Joint Venture
Infotech (Pty) Ltd
Rainprop (Pty) Ltd
Proportion Owned
35
Section 3 CONSOLIDATED FINANCIAL STATEMENTS ATTACQ
NOTES TO THE CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
ANNUAL
Company Group
2006 2005 2006 2005
R R R R
Non-current assets 1,540,073 - 2,005,586 -
Current liabilities (413,210,289) - (413,210,289) -
Non-current liabilities (5,301,714) (476,383) (5,994,219) (3,946,432)
- Atterbury Property Cape (Pty) Ltd - 12,358,916 - -
- Attstore (Pty) Ltd (3,717,352) 1,481,078 - -
- Atterbury Attfund Investments (Pty) Ltd 14,744 6,783 - -
- Lord Charles & Lady Brooks Office Park Holdings (Pty) Ltd 18,492,150 3,397,629 - -
- Atterbury Property Johannesburg (Pty) Ltd 16,368,431 5,038,254 - -
- Riverport Trading 143 (Pty) Ltd (98,714) 1,934,835 - -
- Nieuw Pivot Investments (Pty) Ltd - 1,657,743 - -
- Interactive Trading 800 (Pty) Ltd (8,808,657) 5,632,831 - -
- Atterbury Parkdev Consortium (Pty) Ltd - 160,895 - -
- Erf 321 Hatfield Beleggings (Pty) Ltd 870,447 811,893 - -
- Atterbury Property Investments (Pty) Ltd 10,913 2,190 - -
- Lady Brooks (Pty) Ltd (304,356) (268,906) - -
- Atterbury Property Cape Holdings (Pty) Ltd 1,056,463 (1,871,432) - -
- Atterbury Property Holdings (Pty) Ltd - (5,549,719) - -
- Atterbury Investment Managers (Pty) Ltd - (638,941) - -
- Aldabri 96 (Pty) Ltd (22,168,495) (1,506,219) - -
- Attcorn Property Gauteng (Pty) Ltd 176,788 - - -
- Autumn Star Trading 597 (Pty) Ltd (3,070,969) - - -
- Highgrove Property Holdings (Pty) Ltd 28,144,592 - - -
- Attcorn Property Holdings (Pty) Ltd 4,394,771 - - -
- Rainprop Development & Construction Joint Venture (1,520,684) (3,077,002) (1,520,684) (3,077,002)
- Atterbury Wedge (Pty) Ltd - 311,286 - 311,286
- Top Coat Property Investments 5 (Pty) Ltd - (4,469) - (4,469)
- Attcorn Property Holdings (Pty) Ltd - 4,383,725 - 4,383,725
- Shockproof Investments 23 (Pty) Ltd - - - 15,864,703
- Atterbury Property One (Pty) Ltd - 1,382 - -
- Attcorn Property Gauteng (Pty) Ltd - 40,400 - 392,977
- Attpower Developments (Pty) Ltd - - - 6,838,979
- Bella Rosa Development (Pty) Ltd - - - 2,275,938
- Superstrike Investments (Pty) Ltd - 400 - 400
- Atterbury Property Developments (Pty) Ltd - (5,911) - (5,911)
- Rodgers Real Estate (Pty) Ltd - - - 152,019
- National Formatt Property Commercial Consultants (Pty) Ltd - (183,285) - (183,285)
The loans from or to subsidiaries/associates bear no interest,
are unsecured and have no fixed terms of repayment, except
as noted below:
The following loans bear interest at prime:
- Attstore (Pty) Ltd
- Autumn Star Trading 597 (Pty) Ltd
- Riverport Trading 143 (Pty) Ltd
- Atterbury Trust (5,301,714) - (5,301,714) -
- The BNF Trust (6,066,852) - (6,066,852) (1,156,683)
- LLS van der Watt - (476,383) - (476,383)
- Deut 28 Trust - - (692,505) -
- Belsize Trust (930,287) - (930,287) -
- Village Trust 1,540,073 - 2,005,586 -
- Mergon Trust (406,213,150) - (406,213,150) (2,313,366)
The loans bear no interest, have no fixed terms of repayment
and are unsecured.
The following loans bear interest at prime:
- Atterbury Trust
- Village Trust
Non-current assets 69,529,299 37,220,240 - 30,220,027
Non-current liabilities (39,689,227) (13,105,884) (1,520,684) (3,270,667)
9. LOANS TO/(FROM) SUBSIDIARIES, ASSOCIATES AND
JOINT VENTURES
10. LOANS TO/(FROM) SHAREHOLDERS
Subsidiaries
Joint ventures
Associates
36
Section 3 CONSOLIDATED FINANCIAL STATEMENTS ATTACQ
NOTES TO THE CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
ANNUAL
Zwelinzima Holdings (Pty) Ltd 262,500 - 262,500 -
- - 13,877,390 -
Company Group
2006 2005 2006 2005
R R R R
Association for People with Disabilities 87,500 87,500 87,500 87,500
Atterbury Trust - 290,238 - 290,238
Carty Carvenience (Pty) Ltd - 725,000 - 725,000
Atterbury Property Holdings (Pty) Ltd 3,431,500 - 3,431,500 -
Atterbury Property One (Pty) Ltd 5,474,315 - 5,474,315 -
DH Booysen - - 872,257 -
Emerald Trust 2,637,592 - 2,637,592 -
Circlevest Properties (Pty) Ltd - - 1,738,312 352,577
Rainprop (Pty) Ltd 258,587 279,064 258,587 279,064
Village Trust - 24,498 - -
WDB Investment Holdings (Pty) Ltd 211,275 262,500 211,275 262,500
- Atterbury Property Holdings (Pty) Ltd
- Atterbury Property One (Pty) Ltd
- Emerald Trust
- Rainprop (Pty) Ltd
- Advance receipts - - (9,440) (123,277)
- Assessed losses - - (13,193,909) (2,066,049)
- Prepayments - - (49,472) 130,548
- Wear and Tear allowance - - 389,158 127,883
- Straight line debtor 569,311 - 1,662,621 -
- Other - - - 270,223
- Pre-production interest - - 1,221,313 -
- Bad debt allowance - - - (3,262)
- CGT on fair value adjustments 78,312,885 28,108,165 88,700,270 44,956,761
- Reversal of intercompany profit on sale of Attfund Ltd
shares 14/10/2003 - - - (33,775)
Other investments
Work-in-progress: Mapungubwe Development - - 8,945,805 -
Work-in-progress: College House Development - - 12,905,741 -
Unsold stands, - - - 14,912,148
The work-in-progress consists of the following:
. - - 21,851,546 -
Total other financial assets 12,363,269 1,668,800 14,973,838 1,996,879
78,882,196 28,108,165 78,720,541 43,259,051
- - 21,851,546 14,912,148
The balance comprises:
11. OTHER FINANCIAL ASSETS
12. DEFERRED TAX
13. NON-CURRENT ASSETS HELD FOR SALE
14. INVENTORY
Deferred tax liability
37
The loans are unsecured and indefinite. Unless specified, the
loans bear no interest except the loans below which bear
interest at prime:
The group is in the process of selling its right to receive
income from Erf 321 Hatfield Beleggings (Pty) Ltd.
Mapungubwe development: Consisting of Erven 1084 and
1166 Marshall Town. The erven is being developed in luxury
apartments known as "Mapungubwe Luxury Apartments"
situated in the financial district of Johannesburg. College
House development: Consisting of Erf 4687 Johannesburg.
The erven is being developed into residential estates.
Pledged as security for long term liabilities refer note 16.
Section 3 CONSOLIDATED FINANCIAL STATEMENTS ATTACQ
NOTES TO THE CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
ANNUAL
Company Group
2006 2005 2006 2005
R R R R
- - - 262,985
- - - 1,854,594
- - - 12,794,569
The unsold stands are:
500,000,000 Ordinary shares of R0.0001 50,000 10,000 50,000 10,000
9,915 9,780 9,915 9,780
Share buy-back (350) (115) (350) (115)
Issue of share capital 11,739 250 11,739 250
Ordinary 21,304 9,915 21,304 9,915
Share premium 314,063,644 3,303,074 314,063,644 3,303,074
- - 48,474,013 31,689,334
- - - 5,204,794
- - 3,041,309 -
- - - 18,637,600
- - 43,628,044 -
- - 21,851,546 14,912,148
Total issued shares 21,304 9,915 21,304 9,915
314,084,948 3,312,989 314,084,948 3,312,989
Interactive Trading 800 (Pty) Ltd
14. INVENTORY (continued)
15. ISSUED CAPITAL
16. OTHER FINANCIAL LIABILITIES
Authorised
Reconciliation of issued shares in R-value issued:
Issued
Held at amortised costs
Investec Bank Limited
38
The La Verona project on the consolidated erf, comprising erf
12515 and 12516 (Stands 1 & 7). As a result of the restruc-
turing of the Group, the development is no longer undertaken
by the Group.
The Ile Plaisance (Pty) Ltd project comprising of Erven 581,
2359 and 2057 Laaiplek at Port Owen. As a result of the
restructuring of the Group, the development is no longer
undertaken by the Group.
Secured loans bearing interest at between 9% and 12.52%,
repayable in the next 64 months, in structured, balloon
payments. Secured by Cession and pledge of:
2,957,143 Attfund Limited shares held by Interactive Trading
800 (Pty) Ltd and
Suretyship by Attacq Property Fund Limited of R5,750,000
Subsequent to the restructuring of the Group, the loan no
longer forms part of the Group's liabilities.
Secured loan bearing interest at prime -1% per annum,
repayable within one year. Secured as follows:
257,143 Attfund Limited shares held by Attacq Property Fund
Limited and
Joint and several suretyship by LLS van der Watt limited to
R6,000,000
Subsequent to the restructuring of the Group, the loan no
longer forms part of the Group's liabilities.
Secured loan bearing interest at prime -1.5% per annum,
repayable from 30 June 2006 for a period of 10 years.
Secured as follows:
Mortgage bond over Erf 757/4 Menlo Park Joint and several
suretyship by Attacq Property Fund Limited limited to
R19,095,000.
Joint and several suretyship by Village Trust limited to
R9,405,000
Atterbury Property Cape (Pty) Ltd
Autumn Star Trading 597 (Pty) Ltd
Ile Plaisance (Pty) Ltd
Riverport Trading 143 (Pty) Ltd
The 286,956,420 unissued ordinary shares are under the
control of the directors in terms of resolution of members
passed at the last annual general meeting. This authority
remains in force until the next annual general meeting.
Section 3 CONSOLIDATED FINANCIAL STATEMENTS ATTACQ
NOTES TO THE CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
ANNUAL
58,777,461 - 58,777,461 -
- - - 8,476,934
The loan was repaid during the financial year.
6,473,596 5,888,960 6,473,596 5,888,960
- - 13,049,266 14,000,000
- - 67,614,327 78,542,781
- - 15,073,787 -
- - 65,545,105 -
Company Group
2006 2005 2006 2005
R R R R
Attacq Property Fund Limited
Attstore (Pty) Ltd
Attacq Property Fund Limited
Lady Brooks (Pty) Ltd
Aldabri 96 (Pty) Ltd
Lord Charles & Lady Brooks Office Park Holdings (Pty) Ltd
Brooklyn Square (Pty) Ltd
16. OTHER FINANCIAL LIABILITIES (continued)
FirstRand Bank Limited
Nedbank Limited
Standard Bank Limited
39
Mortgage bond bearing interest between 9.25% - 9.33%.
Repayable in amounts between R196,253 - R449,315 in
periods between 104 - 176 months. Secured as follows:
Mortgage bond registered over long-term notarial lease of
and and Building G, situated on Portion 469 (a portion of
Portion 433) of the farm Elandspoort.
Cession of rental income and any right, title or interest under
any lease entered into.
Secured loan bearing interest at prime -1% per annum,
monthly repayments consist of interest only. A balloon
payment is due April 2008. Secured by 261,700 Attfund
Limited shares pledged.
Secured loan bearing interest at prime -1.25% per annum.
The repayment terms state that for the first 24 months after
completion of the development interest will be repayable and
that the total loan is repayable within 10 years after
completion. Secured as follows:
Bond over Erf 380 and Erf 381, Brooklyn
Limited suretyship from the following entities:
Attacq Property Fund Limited to the amount of R9,533,810
Mergon Trust to the amount of R3,336,190 and
BNF Trust to the amount of R1,430,000
Secured loan bearing interest at between 9.75% and 10.84%
per annum, repayable in instalments of between R248,215
and R405,815.
Secured as follows:
Bond over:
Erf 767 Brooklyn known as Brooklyn Gardens
Erf 420 Nieuw Muckleneuk known as Waterkloof Corner
Erf 499 Lynwoodridge known as FNB House
Erf 326/7; 325/1; 325/RE; 1029/RE; 1029/1; 59/2 and portion 1
(remaining extent) of Erf 60 Arcadia
Joint and several suretyship by:
Attacq Property Fund Limited to the amount of R45,738,000
Village Trust to the amount of R27,442,800
BNF Trust to the amount of R6,307,416
Mergon Trust to the amount of R12,257,784
Secured loan bearing interest at between 9.66% and 9.8% per
annum, repayable between 24 and 48 months in instalments
of between R65,835 and R65,782. Secured as follows:
Bond over Erf 504, 505 and 506/1 Brooklyn
Joint and several suretyship by Attacq Property Fund Limited
to the amount of R35,759,000.
Secured loan bearing interest at prime, repayable over a
period of 10 years in bulk capital payment of between
R3,153,500 and R11,990,000. Secured as follows:
Bond over Erf 415/RE Nieuw Muckleneuk
Joint and several suretyship by Attacq Property Fund Limited
to the amount of R72,143,025
Section 3 CONSOLIDATED FINANCIAL STATEMENTS ATTACQ
NOTES TO THE CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
ANNUAL
R. de Bruyn - - - 320,000
Company Group
2006 2005 2006 2005
R R R R
Atterbury Property Johannesburg (Pty) Ltd
Attcorn Property Gauteng (Pty) Ltd
Riverport Trading 143 (Pty) Ltd
Executive
- - 14,320,039 -
Circlevest Properties (Pty) Ltd
GC Holtzhausen
Gustav Holtzhausen Family Trust
JA du Toit
Jaleen Family Trust
- - 1,475,404 -
- - - 4,871,410
Property previously financed by Standard Bank Limited, is
now financed by Investec Private Bank Limited.
- - 13,000,000 -
Brunswick Property Investments (Pty) Ltd - - - 15,823,871
Acceleration eMarketing (Pty) Ltd 778,283 1,702,620 778,283 1,702,620
Deut 28 Trust - - - 1,247,134
Attventure (Pty) Ltd - - 1,357,426 -
Finbez Beleggings CC - - 97,973 97,973
P.J.J. van Rensburg - - 35,529 35,529
Parkdev S.A. (Pty) Ltd - - 305,402 2,038,928
Village Trust - - - 2,372,713
VRF Holdings (Pty) Ltd - - 470,000 470,000
The loans have no fixed repayment terms. Unless specified,
the loans bear no interest.
- Acceleration eMarketing (Pty) Ltd Prime -2%
- Parkdev SA (Pty) Ltd Prime
The loan from Acceleration eMarketing (Pty) Ltd is repayable
on demand.
- within one year 5,692,237 - 43,998,206 28,152,695
- in second to fifth year inclusive 27,139,219 - 146,635,707 160,008,984
- later than 5 years 103,334,110 - 184,208,504 214,833,433
Emoluments received
- Other services - - 1,110,840 1,800,068
Non-current liabilities 65,481,934 7,591,580 297,931,107 183,446,457
Current liabilities 547,406 - 55,585,857 7,974,124
136,165,566 - 374,842,417 402,995,112
- - 1,110,840 1,800,068
16. OTHER FINANCIAL LIABILITIES (continued)
Redeemable preference shares
Unsecured liabilities
Value of minimum lease payments due
17. OPERATING LEASE RECEIVABLES
18. DIRECTORS' EMOLUMENTS
40
The 13 redeemable preference shares are redeemable within
the next 12 months at a par value of R1 as well as a premium
per share of R999,999
The long term liability is part of the joint venture as indicated
above. The terms, conditions and security is the same as
above.
Attcorn Property Gauteng (Pty) Ltd and Atterbury Property
Johannesburg (Pty) Ltd are jointly developing the luxury
apartments known as Mapungubwe with Circlevest
Properties (Pty) Ltd. The secured loan is taken out by the
three entities for the development, it bears interest at prime
-1% per annum, repayable before 31 May 2007. Secured as
follows:
Bond over Erf 1084 Marshalls Town and Erf 1166 Marshalls
Town
Joint and several suretyship by the following entities:
Attacq Property Fund Limited for the amount of R33,750,000
and the following companies to the amount of R11,250,000:
Section 3 CONSOLIDATED FINANCIAL STATEMENTS ATTACQ
NOTES TO THE CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
ANNUAL
1,915,815
Company Group
2006 2005 2006 2005
R R R R
Local income tax - recognised in current tax for current periods 7,363,005 2,767,976 9,922,049 3,227,702
Underprovision in prior year - - - 19,906
Total deferred tax 50,774,031 14,054,454 37,260,028 26,045,384
- Current year 50,204,700 14,522,911 35,925,736 26,484,548
- Difference due to straight lining 569,331 - 1,334,292 135,112
- Decrease due to rate change - (468,457) - (574,276)
Charge for the year 10,302,808 674,586 11,696,555 1,010,875
Applicable tax rate 29.0% 29.0%
Adjusted for:
- Non-deductable expenditure - 0.1%
- Fair value adjustments - 50% (13.7%) (14.5%)
- Share of retained profits of associates - 50% - 0.2%
- Tax rate adjustment - (0.4%)
- Loss on sale of investment - 0.1%
- Adjustment of tax base - Atterbury Cape Holdings 2004 - (0.4%)
- Secondary tax on companies 2.8% 0.6%
Net reduction (10.9%) (14.3%)
Effective rate 18.1% 14.7%
Attributable share of retained profit for the year excluding
extraordinary items
Net (loss) / profit for the year - (3,464,863) 116,774,018 (1,488,416)
Less: Dividend paid - 1,915,815 -
Other dividends 116,302 - 116,302 913,934
Interest from subsidiaries, associates and joint ventures 1,300,133 1,915,815 4,041,626 1,757,471
Other interest 1,987,709 1,484,411 1,256,055 430,162
Non-current liabilities 2,093,489 1,374,002 16,271,655 14,694,179
Bank 736,995 518,757 741,023 838,290
Other interest 1,488,237 204,903 10,977,815 2,510,995
Related parties are defined as those entities with which the
Group transacted during the year and in which the following
relationship(s) exist:
• Shareholding
• Directorships
• Management
Transactions between group companies which are eliminated
on consolidation are not disclosed.
Related parties consist therefore of the following parties:
• Parkdev (Pty) Ltd (formerly known as Atterbury Property Management (Pty) Ltd)
• Atterbury Investment Managers (Pty) Ltd
68,439,844 17,497,016 58,878,632 30,303,867
- (1,549,048) 116,774,018 427,399
3,404,144 3,400,226 5,413,983 3,101,567
4,318,721 2,097,662 27,990,493 18,043,464
19. TAXATION
20. SHARE OF ASSOCIATED COMPANIES’
RETAINED PROFIT
21. INVESTMENT INCOME
22. FINANCE COSTS
23. RELATED PARTIES
Major components of the tax expense/income
Current
Deferred
Secondary tax on companies
Reconciliation of the tax expense
Dividend revenue
Relationship
23.
Interest revenue
41
Section 3 CONSOLIDATED FINANCIAL STATEMENTS ATTACQ
NOTES TO THE CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
ANNUAL
23. RELATED PARTIES (continued)
Related party transactions and balances
Purchases from related parties
24. CONTINGENT LIABILITIES
25. CAPITAL COMMITMENTS
• Atterbury Property Holdings (Pty) Ltd
• The BNF Trust
43,000,000 43,000,000 43,000,000 43,000,000
• Mergon Trust
• Attfund Limited
• Atterbury Parkdev Consortium (Pty) Ltd
• Atterbury Property Cape (Pty) Ltd
• Rainprop (Pty) Ltd
• Attventure (Pty) Ltd
Parkdev (Pty) Ltd - 706,996 -
2005 - 117,579 -
Atterbury Investment Managers (Pty) Ltd - 842,835 -
2005 - - -
Atterbury Property Holdings (Pty) Ltd 185,977 1,353,704 3,432,529
2005 107,714 670,602 -
The BNF Trust - 11,958 (6,066,852)
2005 - 119,573 (1,156,683)
Mergon Trust - 23,917 (406,213,150)
2005 - 239,145 (2,313,366)
Atterbury Parkdev Consortium (Pty) Ltd - 3,700,000 -
2005 - - -
Attventure (Pty) Ltd - 91,301 (1,357,426)
2005 - - -
Attfund Limited 180,000 - -
2005 - - -
Atterbury Property Cape (Pty) Ltd 317,238 - -
2005 - - -
Rainprop (Pty) Ltd 42,871 - 258,587
2005 7,888 19,159 279,064
53,996,433 25,511,498 - -
946,668 Shares held by the Group in Attfund Limited were
pledged as security in respect of the obligations towards
Nedbank Limited as per note 16.
The Group's bankers have issued the following guarantees
to creditors:
Brooklyn Square (Pty) Ltd - - 150,000 -
Attacq Property Fund Limited (Building G, joint venture) - - 1,667,792 -
Aldabri 96 (Pty) Ltd - - 165,760 -
Sureties given by the Group:
Years Sales to Purchases/ Balances
services owing by/(to)
2006
2006
2006
2006
2006
2006
2006
2006
2006
2006
from
Company Group
2006 2005 2006 2005
R R R R
Attacq Property Fund Limited
42
Joint surety given in respect of loan funds advanced by
Standard Bank to Atterbury Property Johannesburg (Pty) Ltd,
Attcorn Property Gauteng (Pty) Ltd and Circlevest Properties
(Pty) Ltd as follows:
- Bond amounting to R550,000,000 and an additional amount
of R110,000,000 as additional surety over Erf 134205,
Rondebosch, Cape Town
- Bond amounting to R160,000,000 and an additional amount
of R32,000,000 as additional surety over Erf 160462,
Cape Town
- Bond amounting to R110,000,000 and an additional amount
of R22,000,000 as additional surety over Erf 17, Bryanston
East Ext 5 and Portion 2 of Erf 17, Bryanston East Ext 5
Liability for STC which would arise if Attacq Property Fund
Limited were to distribute their reserves
3,280,319 Shares (2005: 6,211,110 Shares) held by the
Group in Attfund Limited were pledged as security in respect
of the obligations towards Investec Bank Limited as per note
16.
Section 3 CONSOLIDATED FINANCIAL STATEMENTS ATTACQ
NOTES TO THE CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
ANNUAL
30,000,000 - 30,000,000 -
50,840,000 - 50,840,000 -
1,300,000 - 1,300,000 -
5,700,000 - 5,700,000 -
711,000 - 711,000 -
20,000,000 20,000,000 20,000,000 20,000,000
30,000,000 - 30,000,000 -
3,400,000 - 3,400,000 -
9,710,000 - 9,710,000 -
25,000,000 - 25,000,000 -
78,416,000 - 78,416,000 -
6,050,000 - 6,050,000 -
5,750,000 5,750,000 5,750,000 5,750,000
6,000,000 - 6,000,000 -
Company Group
2006 2005 2006 2005
R R R R
25. CAPITAL COMMITMENTS (continued)
43
Joint surety given in respect of loan funds advanced by
Standard Bank Limited to Brooklyn Square (Pty) Ltd as
additional surety over Erf 415, Nieuw Muckleneuk.
Joint surety given in respect of loan funds advanced by First-
Rand Bank Limited to Travenna Development Company (Pty)
Ltd as additional surety over Erf 59, a portion of Erf 78 and
remaining extents of Erf 79 and 433 of Farm Elandspoort No
357 Division JR.
Surety in respect of loan funds advanced by Investec Bank
Limited for the fractional ownership development known as
"Staytus Luxury Lifestyle Collection”
Surety in respect of loan funds advanced by Nedbank Limited
for the mixed use development to be undertaken by Nulane
Investments 40 (Pty) Ltd in Worcester, Western Cape.
Surety in respect of loan funds advanced by Investec Bank
Limited for the mixed use development to be undertaken by
Cape Gannet Properties 142 (Pty) Ltd in Paarl, Western Cape.
Surety in respect of loan funds advanced by Standard Bank
Limited for the "Bella Rosa Lifestyle Village" currently under
development in Tygervalley, Western Cape.
Surety in respect of loan funds advanced by Standard Bank
Limited for the "Kraaibosch Residential Estate" currently
under development in George, Western Cape.
Surety in respect of loan funds advanced by Investec Bank
Limited to Atterbury Property Cape (Pty) Ltd.
Surety in respect of loan funds advanced by Investec Bank
Limited to Atterbury Property Developments (Pty) Ltd for
acquisition and development of "Beau Rivage”
Surety in respect of loan funds advanced by Investec Bank
Limited to Dream Weaver Trading 40 (Pty) Ltd for
development of "Le Chateau”
Surety in respect of loan funds advanced by Investec Bank
Limited to Papillio Investments 40 (Pty) Ltd for acquisition and
development of "Paradise Coast”
Surety in respect of loan funds advanced by Investec Bank
Limited to Mergon Trust for Infotech (Pty) Ltd capital
requirements.
Surety in respect of loan funds advanced by Investec Bank
Limited to Interactive Trading 800 (Pty) Ltd.
Surety in respect of loan funds advanced by Investec Bank
Limited to Autumn Star Trading 597 (Pty) Ltd for proposed
new development in Jefferys Bay, Western Cape.
Section 3 CONSOLIDATED FINANCIAL STATEMENTS ATTACQ
NOTES TO THE CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
ANNUAL
4,622,310 - 4,622,310 -
9,095,000 - 19,095,000 -
9,533,810 - 9,533,810 -
35,759,000 - 35,759,000 -
14,000,000 - 14,000,000 -
36,843,959 - 36,843,959 -
33,750,000 33,750,000 33,750,000 33,750,000
25,102,500 - 25,102,500 -
72,143,025 - 72,143,025 -
45,738,000 45,738,000 45,738,000 45,738,000
30,000,000 - 30,000,000 -
Company Group
2006 2005 2006 2005
R R R R
1
25. CAPITAL COMMITMENTS (continued)
26. RISK MANAGEMENT
44
Surety in respect of loan funds advanced by Investec Bank
Limited to Wattchatt (Pty) Ltd.
Surety in respect of loan funds advanced by Investec Bank
Limited to Riverport Trading 143 (Pty) Ltd in respect of finance
lease agreement of Investec Pretoria Regional Offices.
Surety in respect of loan funds advanced by Investec Bank
Limited to Lady Brooks (Pty) Ltd for the development of the
"Lady Brooks Office Park" situated in Menlo Park, Pretoria.
Surety in respect of loan funds advanced by Investec Bank
Limited to Lord Charles and Lady Brooks Office Park
Holdings (Pty) Ltd for the development of the "Lord Charles
and Lady Brooks Office Park" situated in Menlo Park, Pretoria
Surety in respect of loan funds advanced by FirstRand Bank
Limited to Trevenna Development Company (Pty) Ltd for the
development of the various residential developments
situated in Lynnwood Manor, Pretoria.
Surety in respect of loan funds advanced by Nedbank Limited
to Western Breeze 41 (Pty) Ltd for the development of the
various residential developments situated in Lynnwood
Manor, Pretoria.
Surety in respect of loan funds advanced by Standard Bank
Limited to Attcorn Property Gauteng (Pty) Ltd, Atterbury
Property Johannesburg (Pty) Ltd and Circlevest Properties
(Pty) Ltd for the development of the various residential
developments situated at 1084 Marshalltown and Erf 1166
Marshalltown, Johannesburg.
Surety in respect of loan funds advanced by Standard Bank
Limited to Southern Palace Investments 310 (Pty) Ltd for the
development of residential development known as "Isibaya
House".
Surety in respect of loan funds advanced by Standard Bank
Limited to Brooklyn Square (Pty) Ltd.
Surety in respect of loan funds advanced by Standard Bank
Limited to Aldabri 96 (Pty) Ltd for the acquisition of various
commercial properties.
Joint surety given in respect of loan funds advanced by
Standard Bank Limited to Brooklyn Square (Pty) Ltd as
additional surety over Erf 415, Nieuw Muckleneuk.
The Group's risk management has been disclosed in the
asset management report in the financial statements.
Highgrove Property Holdings (Pty) Ltd
Section 3 CONSOLIDATED FINANCIAL STATEMENTS ATTACQ
NOTES TO THE CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
ANNUAL
Company Group
2006 2005 2006 2005
R R R R
20,971,322 764,457 21,801,241 31,088,855
Profit/(loss) before taxation 378,888,121 119,629,761 429,742,685 200,215,724
Investment income (3,404,144) (3,400,226) (5,413,983) (3,101,567)
Finance costs 4,318,721 2,097,662 27,990,493 18,043,464
Depreciation - - 199,236 262,513
Loss/(profit) on disposal of property, plant and equipment - - 407,784 (3,816)
(Profit)/loss on disposal of subsidiaries (280,660) - (7,125,037) 7,254,927
Loss/(profit) on disposal of associates 525,190 - - -
(Profit)/loss on disposal of other investments (547,644) 558,869 5,049,471 187,340
Loss/(profit) on disposal of investment property - - 63,888 72,608
Fair value adjustment to investments (330,753,470) (121,182,810) (185,552,297) (152,433,932)
Fair value adjustment to investment properties (26,958,801) - (117,329,081) (51,359,031)
Non-cash item - straight line debtor (1,963,142) - (4,014,011) -
Transfer of property to inventory - - - 13,046,445
Excess of cost above fair value - - (13,465,621) (14,014,376)
Equity ceded to minorities on buy back of shares - - - 327,349
Equity income from associate - 3,464,863 (116,774,018) 1,488,416
Dividends received from associates - (1,915,815) - (1,915,815)
Decrease/(increase) in inventories - - 21,666,696 (13,865,121)
(Decrease)/increase in accounts receivable (4,824,650) (659,766) (6,754,965) (6,618,760)
Increase/(decrease) in accounts payable 5,971,801 2,171,919 (6,889,999) 33,502,487
Acquired 20% of the company 1 July 2005
Investment Property 128,975,826 - 128,975,826 -
Loans to shareholders 37,396,259 - 37,396,259 -
Straight line debtor 738,674 - 738,674 -
Trade and other receivables 401,459 - 401,459 -
Cash and cash equivalents 1,209,331 - 1,209,331 -
Loans from group companies (43,765,680) - (43,765,680) -
Loans from shareholders (1,988,762) - (1,988,762) -
Other financial liabilities (78,542,781) - (78,542,781) -
Deferred tax (6,316,988) - (6,316,988) -
Current tax payable (40,543) - (40,543) -
Trade and other payables (860,630) - (860,630) -
37,206,165 - 37,206,165 -
Minus: Other shareholders' interest and interest previously
acquired (29,743,510) - (29,743,510) -
7,462,655 - 7,462,655 -
Goodwill on acquisition (excess on acquisition) 335,916 - 335,916 -
Purchase price 7,798,571 - 7,798,571 -
Shares issued 7,798,571 - 7,798,571 -
Net cash purchase price
Acquired 40% of the company 1 July 2005
Loans to shareholders 1,871,432 - 1,871,432 -
Other financial assets 74,174,402 - 74,174,402 -
Trade and other receivables 100 - 100 -
Cash and cash equivalents 42 - 42 -
Deferred tax (9,635,112) - (9,635,112) -
Current tax payable (901,958) - (901,958) -
Trade and other payables (1) - (1) -
65,508,905 - 65,508,905 -
Minus: Other shareholders' interest and interest previously
acquired (42,379,932) - (42,379,932) -
23,128,973 - 23,128,973 -
Goodwill on acquisition (excess on acquisition) (3,835,687) - (3,835,687) -
Purchase price 19,293,286 - 19,293,286 -
Shares issued 19,293,286 - 19,293,286 -
Net cash purchase price - - - -
Aldabri 96 (Pty) Ltd
Atterbury Property Cape Holdings (Pty) Ltd
- - - -
27. NOTES TO THE CASH FLOW STATEMENT
27.1 CASH FLOW FROM OPERATING ACTIVITIES
27.2 SUBSIDIARIES ACQUIRED
Adjustments for:
Change in working capital:
45
Section 3 CONSOLIDATED FINANCIAL STATEMENTS ATTACQ
NOTES TO THE CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
ANNUAL
Company Group
2006 2005 2006 2005
R R R R
Acquired 49% of the company 1 July 2005
Other financial assets 11,764,686 - 11,764,686 -
Trade and other receivables 93,255 - 93,255 -
Cash and cash equivalents 556,852 - 556,852 -
Loans from shareholders (811,893) - (811,893) -
Other financial liabilities (603,502) - (603,502) -
Deferred tax ( 1,395,704) - (1,395,704) -
Trade and other payables (407,145) - (407,145) -
9,196,549 - 9,196,549 -
Minus: Other shareholders' interest and interest previously acquired (4,690,240) - (4,690,240) -
4,506,309 - 4,506,309 -
Goodwill on acquisition (excess on acquisition) 836,542 - 836,542 -
Purchase price 5,342,851 - 5,342,851 -
Shares issued 3,707,284 - 3,707,284 -
Accrual 1,635,567 - 1,635,567 -
Acquired 49% of the company 1 July 2005
Investment Property 20,222,871 - 20,222,871 -
Loans to shareholders 268,906 - 268,906 -
Other financial assets 193,129 - 193,129 -
Trade and other receivables 22,235 - 22,235 -
Cash and cash equivalents 774,443 - 774,443 -
Other financial liabilities (14,000,000) - (14,000,000) -
Deferred tax (921,966) - (921,966) -
Trade and other payables (333,056) - (333,056) -
6,226,562 - 6,226,562 -
Minus: Other shareholders' interest and interest previously acquired (3,161,825) - (3,161,825) -
3,064,737 - 3,064,737 -
Goodwill on acquisition (excess on acquisition) (490) - (490) -
Purchase price 3,064,247 - 3,064,247 -
Shares issued 3,064,247 - 3,064,247 -
Net cash purchase price - - - -
Acquired 25% of the company 1 July 2005
Property, plant and equipment 61,968 - 61,968 -
Investment in subsidiaries 64 - 64 -
Loans to group companies 352,577 - 352,577 -
Other financial assets 3,045,643 - 3,045,643 -
Inventories 378,422 - 378,422 -
Trade and other receivables 404,496 - 404,496 -
Cash and cash equivalents 72,079 - 72,079 -
Loans from shareholders (6,285,388) - (6,285,388) -
Deferred tax 523,300 - 523,300 -
Trade and other payables (27,632) - (27,632) -
(1,474,471) - (1,474,471) -
Minus: Other shareholders' interest and interest previously acquired 1,474,496 - 1,474,496 -
25 - 25 -
Goodwill on acquisition (excess on acquisition) 2,130,289 - 2,130,289 -
Purchase price 2,130,314 - 2,130,314 -
Shares issued 2,130,314 - 2,130,314 -
Net cash purchase price - - - -
Acquired 8% of the company 1 July 2005
Inventories 184,850 - 184,850 -
Trade and other receivables 160,021 - 160,021 -
Cash and cash equivalents 126 - 126 -
Loans from group companies (392,977) - (392,977) -
Loans from shareholders (2,850) - (2,850) -
Deferred tax 15,246 - 15,246 -
Trade and other payables (4,493) - (4,493) -
(40,077) - (40,077) -
Minus: Other shareholders' interest and interest previously acquired 36,855 - 36,855 -
(3,222) - (3,222) -
Goodwill on acquisition (excess on acquisition) 256,437 - 256,437 -
Purchase price 253,215 - 253,215 -
Shares issued 253,215 - 253,215 -
Net cash purchase price - - - -
Erf 321 Hatfield Beleggings (Pty) Ltd
Lady Brooks (Pty) Ltd
Atterbury Property Johannesburg (Pty) Ltd
Attcorn Property Gauteng (Pty) Ltd
27.2 SUBSIDIARIES ACQUIRED (continued)
46
Section 3 CONSOLIDATED FINANCIAL STATEMENTS ATTACQ
NOTES TO THE CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
ANNUAL
Company Group
2006 2005 2006 2005
R R R R
Acquired 56% of the company 1 July 2005
Property, plant and equipment 85,992 - 85,992 -
Investment in subsidiaries 500 - 500 -
Loans to group companies 14,064 - 14,064 -
Other financial assets 2,878,795 - 2,878,795 -
Trade and other receivables 508,516 - 508,516 -
Cash and cash equivalents 40,152 - 40,152 -
Loans from shareholders (4,383,725) - (4,383,725) -
Other financial liabilities (550,000) - ( 550,000) -
Deferred tax 465,897 - 465,897 -
Trade and other payables (411,439) - (411,439) -
(1,351,248) - (1,351,248) -
Minus: Other shareholders' interest and interest previously acquired (415) - (415) -
(1,351,663) - (1,351,663) -
Goodwill on acquisition (excess on acquisition) 1,352,188 - 1,352,188 -
Purchase price 525 - 525 -
Shares issued - - - -
Net cash purchase price 525 - 525 -
Acquired 100% of the company 1 July 2005
Investment in subsidiaries 27,317,156 - 27,317,156 -
Loans to group companies 27,878,417 - 27,878,417 -
Loans from shareholders (61,323,046) - (61,323,046) -
Trade and other payables (5,984,000) - (5,984,000) -
(12,111,473) - (12,111,473) -
Minus: Other shareholders' interest and interest previously acquired 55,368,619 - 55,368,619 -
43,257,146 - 43,257,146 -
Goodwill on acquisition (excess on acquisition) 7,186,060 - 7,186,060 -
Purchase price 50,443,206 - 50,443,206 -
Shares issued 18,943,206 - 18,943,206 -
Net cash purchase price 31,500,000 - 31,500,000 -
Acquired 17% of the company 1 July 2005
Property, plant and equipment 9,900,113 - 9,900,113 -
Trade and other receivables 395,382 - 395,382 -
Cash and cash equivalents 701 - 701 -
Loans from shareholders (3,503,369) - (3,503,369) -
Other financial liabilities (4,871,410) - (4,871,410) -
Deferred tax 57,896 - 57,896 -
Trade and other payables (2,125,057) - (2,125,057) -
(145,744) - (145,744) -
Minus: Other shareholders' interest and interest previously acquired (473,403) - (473,403) -
327,659 - 327,659 -
Goodwill on acquisition (excess on acquisition) 1,032,502 - 1,032,502 -
Purchase price 1,360,161 - 1,360,161 -
Shares issued 1,360,161 - 1,360,161 -
Net cash purchase price - - - -
Acquired 30% of the company 1 July 2005
Investment in subsidiaries 95,765,351 - 95,765,351 -
Trade and other receivables 70 - 70 -
Cash and cash equivalents 41 - 41 -
Loans from shareholders (2,190) - (2,190) -
Deferred tax (13,885,357) - (13,885,357) -
Trade and other payables 1 - 1 -
81,877,916 - 81,877,916 -
Minus: Other shareholders' interest and interest previously acquired (51,451,352) - (51,451,352) -
30,426,564 - 30,426,564 -
Goodwill on acquisition (excess on acquisition) (1,697,612) - (1,697,612) -
Purchase price 28,728,952 - 28,728,952 -
Shares issued 28,728,952 - 28,728,952 -
Net cash purchase price - - - -
Attcorn Property Holdings (Pty) Ltd
Highgrove Property Holdings (Pty) Ltd
Riverport Trading 143 (Pty) Ltd
Atterbury Property Investments (Pty) Ltd
27.2 SUBSIDIARIES ACQUIRED (continued)
47
Section 3 CONSOLIDATED FINANCIAL STATEMENTS ATTACQ
NOTES TO THE CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
ANNUAL
Company Group
2006 2005 2006 2005
R R R R
31,500,625 1,003,989 31,500,625 -
Interactive Trading 800 (Pty) Ltd
Autumn Star Trading 597 (Pty) Ltd
Razorbill Properties 91 (Pty) Ltd
Ile Plaisance (Pty) Ltd
Atterbury Property Cape Holdings (Pty) Ltd
Acquired 15% of the company 1 July 2005 (2005: 5%)
Investment in subsidiaries 73,942,165 38,052,124 73,942,165 -
Other financial assets 143,111,060 143,111,060 143,111,060 -
Trade and other receivables 6,000,000 6,000,000 6,000,000 -
Cash and cash equivalents 68 68 68 -
Loans from group companies (35,890,040) - (35,890,040) -
Loans from shareholders (5,632,831) (5,632,831) (5,632,831) -
Other financial liabilities (35,159,383) (35,159,383) (35,159,383) -
Deferred tax (20,676,333) (20,676,333) (20,676,333) -
Current tax payable (12,161) (12,161) (12,161) -
Trade and other payables (13,017,425) (19,763,014) (13,017,425) -
112,665,120 105,919,520 112,665,120 -
Minus: Other shareholders' interest and interest previously
acquired (100,732,961) (100,621,544) (100,732,961) -
11,932,159 5,295,976 11,932,159 -
Goodwill on acquisition (excess on acquisition) (665,657) (4,291,987) (665,657) -
Purchase price 11,266,502 1,003,989 11,266,502 -
Shares issued 11,266,502 - 11,266,502 -
Net cash purchase price - 1,003,989 - -
Acquired 100% of the company at formation
Goodwill on acquisition (excess on acquisition) 100 - 100 -
Purchase price 100 - 100 -
Shares issued - - - -
Net cash purchase price 100 - 100 -
Acquired 100% of the company at July 2004
Minority interest acquired - - - (13,629,395)
Consideration paid - - - 27,703,589
Goodwill on acquisition - - - (14,074,194)
- - - -
Acquired additional 65% of the company at 30 August 2004 to
own 100% of issued shares.
Minority interest acquired - - - 5,737,864
Consideration paid - - - (12,861,341)
Goodwill on acquisition - - - 7,123,477
- - - -
Total purchase price on acquisition of subsidiaries
Loans to shareholders 1,871,432 - 1,871,432 -
Other financial assets 74,174,402 - 74,174,402 -
Trade and other receivables 100 - 100 -
Cash and cash equivalents 42 - 42 -
Deferred tax (9,635,112) - (9,635,112) -
Current tax payable (901,958) - (901,958) -
Trade and other payables (1) - (1) -
65,508,905 - 65,508,905 -
Interest sold 4,384,046 - 4,384,046 -
Profit/(loss) on sale of investment (2,009,046) - (2,009,046) -
Selling price 2,375,000 - 2,375,000 -
Net cash proceeds 2,375,000 - 2,375,000 -
27.2 SUBSIDIARIES ACQUIRED
27.3 PROCEEDS ON DISPOSAL OF SUBSIDIARIES
(continued)
48
Section 3 CONSOLIDATED FINANCIAL STATEMENTS ATTACQ
NOTES TO THE CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
ANNUAL
27.3 PROCEEDS ON DISPOSAL OF SUBSIDIARIES (continued)
Company Group
2006 2005 2006 2005
R R R R
Atterbury Property Holdings (Pty) Ltd
(formerly known as Atterbury Property (Pretoria) (Pty) Ltd)
Nieuw Pivot Investments (Pty) Ltd
Atterbury Parkdev Consortium (Pty) Ltd
Attcorn Property Gauteng (Pty) Ltd
Investment property 2,023,847 - 2,023,847 -
Property, plant and equipment 367,845 - 367,845 -
Investment in subsidiaries 1,242,268 - 1,242,268 -
Loans to group companies 66,151 - 66,151 -
Inventories 15,605 - 15,605 -
Trade and other receivables 1,186,646 - 1,186,646 -
Cash and cash equivalents (283,379) - (283,379) -
Loans to shareholders (8,048,139) - ( 8,048,139) -
Deferred tax 2,552,638 - 2,552,638 -
Trade and other payables (527,108) - ( 527,108) -
(1,403,626) - (1,403,626) -
Interest sold (1,403,626) - (1,403,626) -
Profit/(loss) on sale of investment 1,411,126 - 1,411,126 -
Selling price 7,500 - 7,500 -
Net cash proceeds 7,500 - 7,500 -
Trade and other receivables 2,477,840 - 2,477,840 -
Cash and cash equivalents (13,399) - (13,399) -
Loans to shareholders (2,486,418) - (2,486,418) -
Deferred tax 2,266 - 2,266 -
Current tax payable 13,497 - 13,497 -
Trade and other payables 1 - 1 -
(6,213) - (6,213) -
Interest sold (3,728) - (3,728) -
Profit/(loss) on sale of investment 3,788 - 3,788 -
Selling price 60 - 60 -
Net cash proceeds 60 - 60 -
Trade and other receivables - - 200,607 -
Cash and cash equivalents - - 56 -
Loans from group companies - - (160,895) -
Loans to shareholders - - (50,166) -
Deferred tax - - 3,044 -
Trade and other payables - - 1 -
- - (7,353) -
Interest sold - - (7,353) -
Profit/(loss) on sale of investment - - 7,353 -
Selling price - - - -
Sold on loan account - - - -
Net cash proceeds - - - -
Inventories - - 184,850 -
Trade and other receivables - - 160,021 -
Cash and cash equivalents - - 126 -
Loans from group companies - - (392,977) -
Loans to shareholders - - (2,850) -
Deferred tax - - 15,246 -
Trade and other payables - - (4,493) -
- - (40,077) -
Interest sold - - (3,222) -
Profit/(loss) on sale of investment - - 256,437 -
Selling price - - 253,215 -
Paid via issue of shares - - 253,215 -
Net cash proceeds - - - -
49
Section 3 CONSOLIDATED FINANCIAL STATEMENTS ATTACQ
NOTES TO THE CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
ANNUAL
27.3 PROCEEDS ON DISPOSAL OF SUBSIDIARIES (continued)
Company Group
2006 2005 2006 2005
R R R R
Total receipts on disposal of subsidiaries 4,382,660 1,420,000 4,382,660 1,133,192
Atterbury Property One (Pty) Ltd
Riverport Trading 143 (Pty) Ltd
Atterbury Property Cape (Pty) Ltd
Lady Brooks (Pty) Ltd
Atterbury Cape Holdings (Pty) Ltd
Loans from group companies (1,382) - (1,382) -
(1,382) - (1,382) -
Interest sold (1,382) - (1,382) -
Profit/(loss) on sale of investment 1,482 - 1,482 -
Selling price 100 - 100 -
Net cash proceeds 100 - 100 -
Investment property 9,900,113 - 9,900,113 -
Trade and other receivables 395,382 - 395,382 -
Cash and cash equivalents 701 - 701 -
Loans to shareholders (3,503,369) - (3,503,369) -
Other financial liabilities (4,871,410) - (4,871,410) -
Deferred tax 57,896 - 57,896 -
Trade and other payables (2,125,057) - (2,125,057) -
(145,744) - (145,744) -
Interest sold (48,581) - (48,581) -
Profit/(loss) on sale of investment 2,048,581 - 2,048,581 -
Selling price 2,000,000 - 2,000,000 -
Net cash proceeds 2,000,000 - 2,000,000 -
Fair value of assets disposed:
Property, plant and equipment - 127,667
Goodwill - 5,376,209
Investment in subsidiary - 10,752,419
Investment in associates - 27,097,977
Investments - 101,946
Deferred tax - 534,256
Inventories - 1,854,594
Trade and other receivables - 793,060
Shareholders' loans - (12,358,916)
Long term liabilities - (19,005,987)
Taxation - (1,179,308)
Trade and other payables - (6,823,490)
Current portion of borrowings - (2,022,678)
- - - 5,247,749
Profit/(loss) on disposal - (5,247,749)
Selling price - - - -
Fair value of assets disposed:
Investment property 7,231,741 14,758,655
Loans receivable 141,797 289,382
Trade and other receivables 137,447 280,504
Deferred tax (5,221) (10,656)
Long term liabilities (6,597,772) (13,464,842)
Trade and other payables (14,688) (29,976)
- 893,303 - 1,823,067
Profit/(loss) on disposal (323,303) (1,252,967)
Selling price - 570,000 - 570,100
Fair value of assets disposed:
Investments 1,518,833 118,246
Loans receivable 93,572 - 93,572
Trade and other receivables 5 - 5
Deferred tax (481,756) - (481,756)
Taxation (45,098) - (45,098)
- 1,085,556 - (315,031)
(Loss)/profit on disposal (235,556) 878,123
Selling price - 850,000 - 563,092
50
Section 3 CONSOLIDATED FINANCIAL STATEMENTS ATTACQ
NOTES TO THE CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
ANNUAL
51
27.4 PROCEEDS ON DISPOSAL OF INVESTMENTS
Company Group
2006 2005 2006 2005
R R R R
Total receipts on disposal of investments 7,061,562 8,262,500 7,061,562 9,112,500
Attfund Limited
Gosforth Park Holdings (Pty) Ltd
Infotech (Pty) Ltd
Carty Carvenience (Pty) Ltd
Cost of investment 9,306,076 8,323,209 9,306,076 10,367,660
Profit/(loss) on disposal 381,029 (60,709) 381,029 (1,255,160)
Selling price 9,687,105 8,262,500 9,687,105 9,112,500
Shares issued (Attfund Limited) 9,687,105 - 9,687,105 -
Cash selling price - 8,262,500 - 9,112,500
Cost of investment 4,311,362 - 4,685,536 -
(Loss)/profit on disposal - - (374,174) -
Selling price 4,311,362 - 4,311,362 -
Shares issued - - - -
Cash selling price 4,311,362 - 4,311,362 -
Cost of investment 2,250,150 - 2,250,150 -
Profit/(loss) on disposal 500,000 - 500,000 -
Selling price 2,750,150 - 2,750,150 -
Shares issued - - - -
Cash selling price 2,750,150 - 2,750,150 -
Cost of investment 50 - 50 -
Profit/(loss) on disposal - - - -
Selling price 50 - 50 -
Shares issued - - - -
Cash selling price 50 - 50 -
Section 3 CONSOLIDATED FINANCIAL STATEMENTS ATTACQ
NOTES TO THE CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
ANNUAL
MertechBuilding
Glenfield Office Park
OberonStreet
FaerieGlen
Pretoria
SouthAfrica