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. |