Notes

Basis of preparation

The interim report has been prepared in accordance with the framework concepts and the measurement and recognition requirements of International Financial Reporting Standards (IFRS), the AC 500 standards as issued by the Accounting Practices Board or successor, Schedule 4 of the Companies Act, No. 61 of 1973 (as amended) and complies with the disclosure requirements of IAS 34: Interim Financial Reporting. The condensed consolidated financial statements have been prepared under the historical cost convention, except for the revaluation of certain investments and investment property.

The accounting policies used in the preparation of these results are in accordance with IFRS and consistent in all material respects with those used in the audited annual financial statements for the year ended 30 June 2010.

This interim report has not been reviewed or audited by the Group’s auditors.

Exceptional items

	31 December	31 December	30 June
R millions	2010	2009	2010
Property fair value adjustments	-	-	101
Impairment of contract current assets	(410)	-	-
Contract completion expenses	(385)	-	-
Exceptional (loss)/profit	(795)	-	101

Loss from discontinued operations

During the current financial year the Group took a decision to discontinue with its steel melt shop and reinforcing bar rolling mills. The Group is also in a process of exiting from its property development activities undertaken by Clough as well as disposing of its interest in its crane hire and steel reinforcing bar trading operations in the Middle East.

	31 December	31 December	30 June
R millions	2010	2009	2010
Revenue	570	643	2 034
(Loss)/earnings before interest and depreciation	(396)	(19)	31
Depreciation	(5)	(22)	(46)
Loss before interest and taxation	(401)	(41)	(15)
Net interest expense	(8)	(17)	(19)
Taxation	83	20	18
Loss from discontinued operations	(326)	(38)	(16)
Non-controlling interest relating to discontinued	30	4	2
operations	30	4	2
Cash flows from discontinued operations include the following:
Cash flow from operating activities	(94)	152	199
Cash flow from investing activities	(34)	(74)	(119)
Cash flow from financing activities	(34)	(164)	(292)
Net decrease in cash and cash equivalents	(162)	(86)	(212)

Reconciliation of headline earnings

	31 December	31 December	30 June
R millions	2010	2009	2010
(Loss)/earnings attributable to owners of the parent	(636)	576	1 098
Property fair value adjustments	-	-	(101)
Profit on disposal of subsidiaries	(16)	-	(10)
(Profit)/loss on disposal of property, plant and equipment	(13)	5	(7)
Impairment of property, plant and equipment	181	13	7
Other	-	-	1
Non-controlling interest effects on adjustments	(2)	-	4
Taxation effects on adjustments	(39)	-	13
Headline (loss)/earnings	(525)	594	1 005
Adjustments for discontinued operations:
Loss from discontinued operations	326	38	16
Non-controlling interest	(30)	(4)	(2)
Impairment of property, plant and equipment	(181)	-	-
Other	(9)	-	-
Non-controlling interest effects on adjustments	8	-	-
Taxation effects on adjustments	43	-	-
Headline (loss)/earnings from continuing operations	(368)	628	1 019

Note: Headline earnings excluding exceptional items was calculated by excluding exceptional items expense of R795 million (June 2010: R101 million income) and tax effect thereon of R34 million (June 2010: R14 million).