Directors’ report

The directors have pleasure in presenting their report and audited financial statements for the year ended June 30 2009.

Nature of business

The Company is an investment holding company with subsidiaries operating in the services, trading and distribution industries. Details of the Group’s activities are included in our Group in brief.

Financial reporting

The directors are required by the Companies Act of South Africa to produce financial statements, which fairly present the state of affairs of the Company and the Group as at the end of the financial year and the profit or loss for that financial year, in conformity with International Financial Reporting Standards (IFRS) and the Companies Act of South Africa.

The financial statements as set out in this report have been prepared by management in accordance with IFRS and the Companies Act of South Africa, and are based on appropriate accounting policies, which are supported by reasonable and prudent judgements and estimates.

The directors are of the opinion that the financial statements fairly present the financial position of the Company and of the Group as at June 30 2009 and the results of their operations and cash flows for the year then ended.

The directors are satisfied that the Group has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the directors continue to adopt the going-concern basis in preparing the financial statements.

Declaration by the audit committee

The audit committee believes that it has complied with its terms of reference as established by the board of directors and is satisfied that the external auditors were independent of the Group from July 1 2008 to the date of this report. The board of directors is responsible for the annual financial statements, accounting policies, valuations, estimates and judgements, going concern, risk management and internal controls statements. The audit committee believes all of these have been appropriately addressed.

Acquisitions and disposals

The Group made several small acquisitions during the year. Refer to 11.