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Integrated Report 2016
ANNUAL FINANCIAL STATEMENTS
(continued)
DIRECTORS’ REPORT
The directors have pleasure in submitting their report to shareholders, together with the audited annual financial statements for the year
ended 30 June 2016 which are set out from page 76.
PRINCIPAL ACTIVITIES AND BUSINESS REVIEW
The Adcock Ingram Group is a leading South African healthcare Group, operating in three geographical areas, namely Southern Africa, Rest of
Africa and India.
The Southern African business consists of four principal divisions:
•
A Consumer division selling a range of products mainly through FMCG retailers.
•
An Over the Counter (OTC) division selling a range of OTC products that can be purchased without a prescription, mainly through pharmacies.
•
A Prescription division selling a range of branded and generic prescription products.
•
A Hospital products and services division.
BUSINESS COMBINATIONS
ACQUISITIONS
No material acquisitions were concluded in the current or prior year under review.
DISCONTINUED OPERATIONS
The board decided to dispose of the Group’s Indian operating subsidiary as well as dispose of the controlling stake in the Ghanaian subsidiary.
These operations have been treated as held-for-sale and are reflected in the financial statements as discontinued operations.
SHARE CAPITAL
Details of the authorised and issued share capital are set out in note 18 to the annual financial statements and in the statement of changes
in equity.
During the year under review, the number of shares in issue increased by 6 700 (2015: 96 600) ordinary shares to meet the obligations of the
Adcock Ingram Holdings Employee Share Trust (2008).
Details of ordinary treasury shares held by Group entities are as follows:
30 June
2016
30 June
2015
Adcock Ingram Limited
4 285 163
4 285 163
Mpho ea Bophelo Trust
5 168 592*
688 000
Blue Falcon Trading 69 Proprietary Limited
–
1 883 000
* Held indirectly
The change in ordinary treasury shares held by the Mpho ea Bophelo Trust and Blue Falcon Trading 69 Proprietary Limited, is due to the
modification of the BEE scheme (refer to Annexure B).
DIVIDENDS TO SHAREHOLDERS
POLICY
The board intends to declare a distribution on at least an annual basis, which it currently envisages will be covered between two to three times
by headline earnings.
INTERIM AND FINAL
An interim dividend of 50 cents per share was declared and paid in relation to the six-month period ended 31 December 2015. A final dividend
of 54 cents per share was declared following the results of the year ended 30 June 2016.
No interim dividend was declared in relation to the six-month period ended 31 December 2014. A final dividend of 81 cents per share was
declared following the results of the year ended 30 June 2015 by the directors.