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 2015.
Nature of business
Telkom is a full service communications provider for South Africa.
Financial results
Profit from continuing operations for the year ended 31 March 2015 was R2 889 million (2014: R3 590 million) representing basic earnings per share from continuing operations of 565.8 cents per share (2014: 703.1 cents per share) and headline earnings per share from continuing operations of 556.0 cents per share (2014: 805.9 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
Ordinary dividend number 17 of 215 cents per share (March 2014: 0 cents) and a special dividend of 30 cents per share on 5 June 2015 payable on Monday, 20 July 2015 to shareholders recorded in the register of the group at close of business on Friday, 17 July 2015.
Subsidiaries, associates and other investments
Particulars of the material subsidiaries of the group are set out in note 42 of the accompanying group annual financial statements.
The attributable interest of the group in the after tax earnings from continuing operations of its subsidiaries for the year ended 31 March 2015 were:
| 2015 R million |
Restated 2014 R million |
||||||
| Aggregate amount of profit after taxation | 32 | 24 | |||||
Share capital
Details of the authorised, issued and unissued share capital of the company as at 31 March 2015, are contained in note 23 of the accompanying group annual financial statements.
Share repurchase
The group did not repurchase any shares during the year under review.
Borrowing powers
In terms of the group’s memorandum of incorporation, Telkom has unlimited borrowing powers subject to the restrictive financial covenants of the TL20 bond, syndicated and term loans.
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 38 of the accompanying group annual financial statements.
Details of the company and group’s capital expenditure on property, plant and equipment as well as intangibles are set out in notes 13 and 14 of the accompanying annual financial statements.
Events subsequent to reporting date
Events subsequent to the reporting date are set out in note 44 of the accompanying group annual financial statements.
Directorate
The following changes occurred in the composition of the board of directors from 1 April 2014 to the date of this report:
Appointments
| DJ Fredericks | 12 September 2014 |
| T Dingaan | 3 December 2014 |
| GW Dempster | 3 December 2014 |
| RG Tomlinson | 3 December 2014 |
| RN Ntshingila | 3 December 2014 |
Resignations
| JH Schindehütte | 8 August 2014 |
| LW Maasdorp | 27 August 2014 |
| Dr CA Fynn | 3 December 2014 |
The board of directors at the date of this report is as follows:
| JA Mabuza (Chairman) |
| SN Maseko (Group chief executive officer) |
| DJ Fredericks (Chief financial officer) |
| SL Botha |
| GW Dempster |
| T Dingaan |
| N Kapila |
| I Kgaboesele |
| K Kweyama |
| KW Mzondeki |
| N Ntshingila |
| F Petersen-Lurie |
| RG Tomlinson |
| LL von Zeuner |
Details of each director may be found on pages pages 36 and 39 of this integrated report.
Directors’ interests
At 31 March 2015, the following directors held a beneficial interest in the shares of Telkom:
Executive
| SN Maseko | 52 520 |
| DJ Fredericks | 5 234 |
Non-executive
| JA Mabuza | 26 000 |
| F Petersen-Lurie | 400 |
| I Kgaboesele | 12 000 |
| KW Mzondeki | 267 |
Details of the company secretary’s business address and the company’s registered office are set out on the inside back cover of this integrated report.