Notes to the Group financial statements

for the year ended 30 June

    R million   2014   2013  
  24.   PROVISIONS      
    Balance at beginning of year:      
    Progressive jackpots   40   38  
    Ster Century guarantee   8   5  
      48   43  
    Created during the year:      
    Progressive jackpots   –   146  
    Ster Century guarantee   –   3  
    Restructure provision   112   –  
      112   149  
    Utilised/settled during the year:      
    Progressive jackpots   (22)  (144) 
    Ster Century guarantee   (8)  –  
      (30)  (144) 
    Balance at end of year:      
    Progressive jackpots   18   40  
    Ster Century guarantee   –   8  
    Restructure provision   112   –  
      130   48  
    Restructure provision  
During the current year the Group embarked on a section 189 and 189A of the Labour Relations Act restructuring process as part of the initiatives to improve operational performance. The process is still ongoing and has taken longer than expected due to extensive but constructive consultation with the unions and affected parties. The process is expected to be completed in the first half of the next financial year. R53 million has already been paid out during the financial year and a provision of R112 million has been raised for employees who have accepted early retirement and voluntary retrenchment. The liability is calculated based on the current remuneration level as well as years of employment. This brings the total cost relating to the restructure to R165 million (refer to note 3). 
 
Progressive jackpots  
This is the provision for wide area progressives. The full provision is expected to be utilised within the next financial year.