Notes to the Company financial statements

for the year ended 30 June

    R million   2014   2013  
  10.   BORROWINGS      
    Non current      
    Redeemable preference shares   –   417  
    Term Facility   719   –  
    V&A loan   255   264  
      974   681  
    Current      
    Overdraft   2   9  
    Total borrowings   976   690  
    All borrowings are unsecured.      
         
    The fair value of borrowings approximate their carrying values except for the V&A loan which has a fair value of R245 million (2013: R258 million). The fair value has been determined on a discounted cash flow basis using a discount rate of 9% (2013: 9%).  

The carrying amounts of the borrowings are denominated in Rand.  
The borrowings are repayable over the following periods:  
   
    Less than 6 months   2   9  
    6 months – 1 year   –   –  
    1 – 2 years   176   –  
    2 – 3 years   185   417  
    3 – 4 years   114   –  
    4 years and onwards   499   264  
      976   690  
    The following are the contractual undiscounted maturities of financial liabilities (including principal and interest payments) presented in Rands:  
    R million   On demand  
or not  
exceeding  
6 months  
More than  
6 months  
but not  
exceeding  
1 year  
More than  
1 year  
but not  
exceeding  
2 years  
More than  
2 years  
but not  
exceeding  
5 years  
More than  
5 years  
    2014            
    Borrowings   30   30   239   570   526  
    Bank overdraft   2   –   –   –   –  
    Accounts payable and accruals   276   –   –   –   –  
      308   30   239   570   526  
    2013            
    Borrowings   29   29   60   538   401  
    Bank overdraft   9   –   –   –   –  
    Accounts payable and accruals   247   –   –   –   –  
      285   29   60   538   401  
    R million   2014   2013  
    Interest rates      
    Year end interest and dividend rates as follows:      
    Redeemable preference shares   –   6.5%  
    Term facilities   3.6%   –  
    V&A loan   8.3%   8.3%  
    Overdraft   7.0%   6.5%  
    Weighted average   6.0%   6.4%  
    As at 30 June 2014, interest rates on 78% (2013: 38%) of the Company’s borrowings were fixed. 100% (2013: 100%) of these fixed borrowings were for periods longer than 12 months. The interest rates other than on the V&A loan, approximate those currently available to the Group in the market.  

A change of 1% in interest rates at the reporting date would have (decreased)/increased profit before tax by the amounts shown below. This analysis assumes that all other variables remain constant. The analysis is performed on the same basis as for 2013.  

   
    Increase of 1%   (4)  (8) 
    Decrease of 1%   4   8  
   
A register of non current loans is available for inspection at the registered office of the Company.  
The Company’s borrowings are not restricted by its memorandum of incorporation.