Directors' report

To the members of Telkom SA SOC Ltd

The directors have pleasure in submitting the annual financial statements of the Group for the year ended 31 March 2020.

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 2020 was R608 million (March 2019: R2 831 million) representing basic earnings per share of 121.1 cents per share (March 2019: 561.9 cents per share) and headline earnings per share of 208.1 cents per share (March 2019: 619.2 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

Final ordinary dividend number 26 of 50.08410 cents per share (March 2019: 249.40317 cents per share) declared payable on Monday, 13 July 2020 to shareholders recorded in the register of the Group at close of business on Friday, 10 July 2020.

Subsidiaries, associates and other investments

Particulars of the material subsidiaries of the Group are set out in note 41 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 2020 were:

  2020
Rm		   Restated
2019
Rm		  
Aggregate amount of profit after taxation 1 861   1 360  
Share capital

Details of the authorised, issued and unissued share capital of the Company as at 31 March 2020, are contained in note 24 of the accompanying annual financial statements.

Share repurchases

Telkom purchased 0 shares from the market through Rossal No 65 (Pty) Ltd 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 notes 12, 14 and 37 of the accompanying Group annual financial statements.

Significant events and transactions

Significant events and transactions during the year under review is disclosed on note 42 of the accompanying Group annual financial statements.

Events after the reporting date

Events subsequent to the reporting date are set out in note 43 of the accompanying Group annual financial statements.

Directorate

The following changes occurred in the composition of the Board of directors from 1 April 2019 to the date of this report:

Appointments     Date
KA Rayner     15 July 2019
SP Sibisi     1 April 2019
Resignations     Date
GW Dempster     30 November 2019

The Board of directors at the date of this report is as follows:

  • MS Moloko (Chairperson)
  • SN Maseko (Group Chief Executive Officer)
  • TBL Molefe (Group Chief Financial Officer)
  • SL Botha
  • N Kapila
  • KT Kweyama
  • DD Mokgatle
  • PCS Luthuli
  • KW Mzondeki
  • F Petersen-Cook
  • KA Rayner
  • SP Sibisi
  • RG Tomlinson
  • LL von Zeuner

Details of each director may be found in our integrated report.

Directors’ interest

At 31 March 2020, the following directors held a beneficial interest in the shares of Telkom SA

Executive      
SN Maseko     52 520
TBL Molefe     9 716
Non-executive      
JA Mabuza*     5 531
KW Mzondeki     748

* Resigned on 31 May 2019