| |
2006
US$m |
2005 US$m |
|
|
|
|
|
|
| 4 |
FINANCE COSTS |
|
|
|
|
Interest on shareholder’s loan |
1,2 |
0,6 |
|
Interest paid other |
|
1,1 |
0,3 |
|
Debt restructuring cost |
0,1 |
1,6 |
| |
Total finance
costs |
|
2,4 |
2,5 |
|
Finance cost includes the following related
party transactions: |
|
|
|
| |
–
Interest paid to associates |
1,2 |
0,6 |
| 5 |
CAPITAL ITEMS |
|
|
|
| 5.1 |
Currency hedge cost |
|
(2,2) |
(4,1) |
|
Comprises the net fair value
adjustment associated with the group’s policy of
hedging the majority of its net tangible assets of its
foreign entities into its presentation currency,the US
Dollar. |
|
|
|
|
|
|
|
| 5.2 |
Fair value adjustment to financial
liability |
(1,4) |
(7,1) |
|
Represents the change in fair value of the
financial liability arising from the sale of a 26% share
of Brait South Africa Limited. |
|
|
|
| 5.3 |
Profit on disposal of interest in
subsidiary |
2,9 |
– |
|
During the year the group introduced new
strategic partners to Bayport reducing Brait’s effective
economic interest to 41,66%. |
|
|
|
| 5.4 |
Profit on disposal of property,buildings
and fittings |
2,8 |
– |
|
The group sold its Johannesburg property
and buildings, including fittings,situated at 9 Fricker
Road, Illovo and,in terms of the conditions of the sale,entered
into a five-year renewable operating lease agreement. |
|
|
|
| 5.5 |
Realisation of translation adjustment |
(0,2) |
– |
|
As a result of partial repayments on Rand
denominated loans to group companies. |
|
|
|
| |
Total
capital items |
|
1,9 |
(11,2) |
|
|
|
|
|
|
| 6 |
TAXATION |
|
|
|
| 6.1 |
Income tax expense |
|
|
|
|
Luxembourg |
|
– |
– |
|
Foreign expense |
|
2,3 |
1,5 |
|
Deferred taxation (refer note
15) |
|
|
|
– Current year expense/(credit) |
0,4 |
(1,0) |
| |
Total
income tax expense |
2,7 |
0,5 |
|
The group has reconciled its income tax
to the income tax rate applicable to the holding company
for the year ended 31-Mar 2006. In the jurisdiction that
the holding company is registered, the income tax rate
is zero, as other forms of taxation are applied. |
|
One of the group’s subsidiaries, Brait
South Africa Ltd, has STC credits amounting to US$34,8
million available for set off against future dividend
payments. |
| 6.2 |
Tax reconciliation |
|
|
|
|
Taxation of foreign operations is calculated
at the rates prevailing in the respective jurisdictions. |
|
The tax expense for the year is reconciled
to the profit per the income statement as follows: |
| |
|
2006
US$m |
% |
2005
US$m |
% |
| |
Profit before
taxation |
52,4 |
|
34,8 |
|
|
Tax at the Luxembourg income tax rate |
– |
– |
– |
– |
|
Non-deductible expenses |
5,1 |
10 |
43,5 |
125 |
|
Non-taxable income |
(7,2) |
(14) |
(36,7) |
(105) |
|
Capital gains |
0,5 |
1 |
– |
– |
|
Deferred tax assets not raised/utilised |
0,2 |
– |
1,0 |
2 |
| |
Tax differential (0%
vs 35%) |
4,1 |
8 |
(7,3) |
(21) |
| |
Tax expense |
2,7 |
|
0,5 |
|
| |
Effective tax rate
% for the year |
|
5 |
|
1 |
|
|
|
|
|
|
|
