Telkom SA SOC Limited
Integrated Report 2017
For the year ended 31 March 2017
Financial statements
Directors’
report
To the members of Telkom SA SOC Limited
The directors have pleasure in submitting the annual financial statements of the group for the year ended
31 March 2017.
Nature of business
Telkom is an integrated communications and information technology service provider for South Africa.
Financial results
Profit for the year ended 31 March 2017 was R3 854 million (March 2016: R2 321 million) representing basic earnings per share of 738.8 cents per share (March 2016: 432.4 cents per share) and headline earnings per share of 721.1 cents per share (March 2016: 323.0 cents per share). Full details of the financial position and results of the group are set out in the accompanying company and group annual financial statements.
Dividends
Interim ordinary dividend number 19 of 131.23874 cents per share declared payable on Monday, 5 December 2016 to shareholders recorded in the register of the group at close of business on Friday, 2 December 2016.
Final ordinary dividend number 20 of 290.75253 cents per share (March 2016:270 cents per share) declared payable on Monday, 3 July 2017 to shareholders recorded in the register of the group at close of business on Friday, 30 June 2017.
Subsidiaries, associates and other investments
Particulars of the material subsidiaries of the group are set out in note 40 of the accompanying group annual financial statements.
The attributable interest of the group in the after tax earnings of its subsidiaries for the year ended 31 March 2017 was:
| Report | 2017 R million |
Restated 2016 |
||||||||
| Aggregate amount of profit after taxation | 1 199 | 400 |
Share capital
Details of the authorised unissued share capital of the company as at 31 March 2017 are contained in note 22 of the accompanying annual financial statements.
Share repurchase
In April 2016 Telkom purchased 4 109 101 shares from the market through Rossal No 65 (Pty) Limited for the purpose of the employee share plan.
Borrowing powers
Telkom’s directors may mortgage or encumber Telkom’s property or any part thereof and issue debentures, whether secured or unsecured, whether outright or as security for debt, liability or obligation of Telkom or any third party. For this purpose the borrowing powers of Telkom are unlimited, but are subject to the restrictive financial covenants as well as specific restrictive clauses in the current funding arrangements.
Capital expenditure and commitments
Details of the company and group’s capital commitments on property, plant and equipment as well as intangible assets are set out in note 36 of the accompanying group annual financial statements.
Events subsequent to reporting date
Events subsequent to the reporting date are set out in note 42 of the accompanying group annual financial statements.
Directorate
The following changes occurred in the composition of the board of directors from 1 April 2016 to the date of this report:
Appointment
| H Touré | 19 October 2016 |
Resignations
| RN Ntjeke (Ntshingila) | 3 November 2016 |
| T Skweyiya (Dingaan) | 10 May 2017 |
The board of directors at the date of this report is as follows:
JA Mabuza (Chairman)
SN Maseko (Group chief executive officer)
DJ Fredericks (Group chief financial officer)
SL Botha
GW Dempster
N Kapila
I Kgaboesele
KT Kweyama
KW Mzondeki
F Petersen-Lurie
RG Tomlinson
LL von Zeuner
Dr H Touré
Details of each director may be found in our integrated report.
Directors’ interest
At 31 March 2017, the following directors held a beneficial interest in the shares of Telkom SA
Executive
| SN Maseko | 52 520 |
| DJ Fredericks | 48 711 |
Non-executive
| JA Mabuza | 26 000 |
| I Kgaboesele | 12 000 |
| KW Mzondeki | 267 |