SA Retail Sales Update

• Retail sales growth slowed in March to 2.8% y/y, from 3.9% y/y (revised from 3.8% y/y), but grew at a slightly faster pace than the 2.4% y/y expected by market consensus.
• On a seasonally adjusted basis, month on month retail sales fell 0.9%. Compared to the first quarter of last  year, retail sales increased 3.0% in Q1.13.
• Virtually all of the main categories of retailers registered an increase in sales growth in March with the largest contribution of 1.4%, to headline retail sales of 2.8% y/y, stemming from general dealers. The only category in which sales volumes fell was in household furniture, appliance and equipment and this deducted 0.3% from headline sales.
• Developments in the retail space in Q1.13 suggest that household finances have been under some strain on the back of rising inflation during Q1.13 coupled with deleveraging by consumers. While current growth in unsecured credit, at 27% y/y, is fairly strong, the rate has been slowing since the start of the year. Moreover, there is a potential for a further gradual slowing in unsecured credit growth as regulators and lenders have adopted a more cautious stance. This is likely already contributing to dampening retail sales growth somewhat.
• In terms of the implications for monetary policy, it is likely that the SARB will keep interest rates unchanged at next week’s MPC meeting. It can be expected that the SARB will continue to highlight the risks to growth prospects but until there is a meaningful deterioration in both domestic and offshore economic conditions it is likely that the SARB will hold off on further interest rate cuts at this stage.
• There are a number of considerations which support a no change interest rate verdict. Since the beginning of the year, the rand has depreciated and should this trajectory be sustained, the impact will feed through to inflation with a lag of 12 – 18 months. With interest rates at historic lows a rate cut of 25bpt would only be beneficial at the margin. With a number of developed and emerging market economies resuming monetary easing, a similar move by the SARB could undermine the carry trade and impact bond flows. This would be undesirable in light of the deficits on the trade and current accounts, which are being primarily financed by portfolio flows that can easily be reversed. 

Source: Investec

Equity Snapshot - 16 May 2013

Wayne Hook - CEO, Spar: Tops liquor stores star performer for Spar. “I think everyone is scrapping for market share, stores are opening all over the show and so ja, I think it’s all round tough trading at the moment. But for us we still believe in our independent retail model, the guys [are] out there with their livelihoods on the line and really doing a good job for us despite the tough times.”

PPC revenue up 8%: Interim dividend of 38 cents per share declared.

• Improvement in South African and Zimbabwean cement sales 
• Cash generated from operations up 20% 
• Normalised earnings per share increased by 4% 
• Tangible progress with our rest of Africa expansion strategy 
• Technical issues at Dwaalboom resolved
• Interim dividend of 38 cents per share (2012: 38 cents per share)

Richemont FY HEPS up 30%: The Board has proposed a dividend of CHF 1.00 per share.

• Sales increased by 14 % to Euro 10 150 million and by 9 % on a constant currency basis
• Solid growth across segments, regions and channels
• Operating profit increased by 18 % to Euro 2 426 million
• Operating margin gained 80 basis points to reach 23.9 %
• Profit for the year rose by 30 % to Euro 2 005 million
• Cash flow from operations of Euro 1 944 million
• Proposed dividend of CHF 1.00 per share

Sovereign Food FY HEPS up 10%: Dividend per share of 19 cents declared.

• Headline earnings per share up 10% to 74,5 cents
• EBITDA margin of 9,2%
• Dividend per share of 19,0 cents declared
• Net asset value per share up 10% to 808 cents

Lonmin workers return to work: There are channels to be followed - Mathunjwa. Striking workers at the Lonmin platinum mine in Marikana in the North West resolved to return to work immediately on Wednesday. Association of Mineworkers and Construction Union (Amcu) president Joseph Mathunjwa held a meeting with the workers and told them to return to work. "There are channels to be followed... go back to work so that your enemies will not take advantage of this situation," Mathunjwa told the workers gathered at nearby Wonderkop stadium. Miners would start reporting for work for the 6pm shift on Wenesday night, he said.

Great Basin's Dippenaar reunites with Village's Swanepoel: JOHANNESBURG (MINEWEB) - Bernard Swanepoel and Ferdi Dippenaar, the pair behind the creation and growth of Harmony Gold as a major gold miner during the late 1990’s, have joined up again with Dippenaar’s appointment as the managing director of Village Main Reef’s gold assets, a company where Swanepoel is the current CEO. The reunification would see Swanepoel and Dippenaar working side-by-side in executive capacities for the first time since the latter left Harmony in 2005 to pursue his own interests and listed Great Basin Gold – one of SA mining’s biggest failures in recent times – the year thereafter.

Source: 28E Capital (Pty) Ltd

Equity Snapshot - 15 May 2013

A brief glance at Afrimat: Its results, the Infrasors acquisition and where management is taking the company. Afrimat released its annual 13 results last week, reporting revenue up 34% to R1.3bn (FY 12: R1bn) and headline earnings per share growth of 23% to 76.9cps (FY 12: 62.6cps). The Group produced excellent cash generation and still has a very comfortable balance sheet. The Clinker Group’s results were consolidated for the full FY 13 period adding revenues of R285m (FY 12: Rnil) and PAT of R47m (FY 12: Rnil) to the Group's results.

Gas game-changer for SA: Dames: Gas infrastructure is also cost-effective - Dames. Gas can be a "game-changer" for South Africa in the power sector, Eskom CEO Brian Dames said on Tuesday. He said Eskom was particularly aware of the deficit in access to electricity, and that there was a growing role for gas in the country and in the sub-Saharan region. "It is a lot less carbon intensive than fossil fuels, and some of the cleanest fossil fuel," he told delegates at the African Utility Week conference in Cape Town.

Work at all shafts halted: Lonmin: Shares open 5% lower. JOHANNESBURG - Workers at the South African operations of platinum producer Lonmin (JSE:LON) have gone on a wildcat strike, the company said on Tuesday, halting work across its operations and reigniting fears of deadly unrest that hit the industry last year. The platinum belt city of Rustenburg is a potential flashpoint with tensions running high with job cuts and wage talks looming. One of Lonmin's operations were the hotspot of last year's strikes, where 34 workers were killed by police in a single day at its Marikana operation in August.

India’s on Life Healthcare’s radar: And plans to add 1 000 beds in SA over the next few years. South Africa’s second-largest private hospital owner by market value, Life Healthcare Group Holdings (JSE:LHC), will seek expansion opportunities in India and Africa to respond to slower profit growth. Net income increased 15% to R790 million in the six months through March, compared with a 25% gain a year earlier, the Johannesburg-based company said in a statement on Tuesday. Paid patient days rose 1.5%, compared with 6% in 2012. Life Healthcare will pay a half-year dividend of 54 cents a share, an increase of 20%.

Other highlights from the results:

• Paid patient days (PPDs): +1.5%
• Revenue: +7.0% to R5 638 million
• Operating profit: +12.7% to R1 361 million
• Normalised earnings per share: +14.5% to 71.3 cents

PIC would prefer SA buyer for Adcock: Following its non-binding proposals received last week. The Public Investment Corp., the biggest shareholder in takeover target Adcock Ingram, would prefer a South African company to buy the country’s largest supplier of hospital goods. “Shareholder returns have to be balanced with social returns and what is important for South Africa at large,” PIC Chief Investment Officer Dan Matjila said. “Health is an important priority in terms of its social impact and a local player would also help drive Adcock’s empowerment objectives.” PIC, which has a 14% stake in Adcock, oversees the pension funds of South African government workers. Adcock’s empowerment objectives refer to the country’s aim to ensure greater black ownership in all companies that had little or none under apartheid.

Cosatu to march against e-tolls, again: Vows to have 'a total shutdown. 'Cosatu has vowed to take to Gauteng's highways later this month and shut them down to protest against e-tolling and labour brokers. The union federation had held discussions with both the Gauteng and national governments in an attempt to persuade them to ban labour brokers and scrap e-tolls, Congress of SA Trade Unions Gauteng secretary Dumisani Dakile said on Tuesday. "We have also had discussions with the African National Congress in an attempt to deal with these two central issues, and these discussions have not yielded any positive outcomes thus far."He said many members of the ANC in state and government and members of society supported Cosatu in its campaign against these two issues.

IMF trims sub-Saharan Africa growth outlook to: To 5.7% in 2014.ACCRA - The IMF on Tuesday trimmed its growth outlook for sub-Saharan Africa to 5.4% in 2013 and 5.7%in 2014 but said economic activity was being supported by rising investment and booming extractive industries.The IMF had forecast sub-Saharan Africa's growth at 5.6% and 6.1% respectively in its World Economic Outlook in April."Sub-Saharan Africa will be among the fastest growing places in the world ... second only to developing Asia," Antoinette Sayeh, director of the IMF's Africa department, told journalists in Ghana's capital Accra.

SAA to take delivery of twenty airbus Planes: The aircraft form part of a broader fleet replacement plan - Gigaba. JOHANNESBURG - South Africa's national airline will start taking delivery of twenty Airbus A320 aircraft valued at R10bn in the next quarter, Public Enterprises Minister Malusi Gigaba said on Tuesday. "(The aircraft) form part of a broader fleet replacement plan that aims to address the fuel inefficiency of SAA's current long-haul fleet," Gigaba told parliament.

Source: 28E Capital (Pty) Ltd

Equity Snapshot

Lonmin workers on wildcat strike: The strike appeared to stem from anger over killing of an organiser from rival union.

Workers at the South African operations of platinum producer Lonmin have gone on a wildcat strike, a spokesman for the National Union of Mineworkers said.

"All operations are down at Lonmin," Lesiba Seshoka told Reuters. The strike appeared to stem from anger over the weekend killing of an organiser from rival union Association of Mineworkers and Construction Union.

Coronation H1 HEPS up 88%: Interim dividend per share of 163 cents. Assets under management of R409 billion. Diluted headline earnings per share of 163.4 cents. Interim dividend per share of 163 cents

Stefanutti Stocks FY HEPS down 163%: No final dividend declared. Revenue R9,4 billion. Operating profit R234 million. Current order book R10,0 billion. Headline (loss)/earnings per share down 163% 

AngloGold to stop paying NUM salaries – Venkat: Shareholders grill Venkat over salaries, safety records and HIV policies. JOHANNESBURG - The payments made by South Africa’s major miners towards the salaries of National Union of Mineworkers (NUM) officials were the subject of a lengthy discussion at the annual general meeting (AGM) of AngloGold Ashanti (JSE:ANG) on Monday, after a shareholder called for an immediate end to the practice. An equity holder of the company told Chairman Tito Mboweni that the principle that the group had to contribute to the salaries of union officials, while shareholders had to suffer the consequences of labour violence and strikes, was unbearable. “Why remunerate those leaders? For what?” the shareholder said. “After 30 years I think they should stand on their own feet.”

Competition penalties hit results in construction sector: Raubex and Stefannuti announce multi-million rand fine provisions.

CAPE TOWN - Slowly but surely a picture is emerging of the penalties the construction sector will have to digest with regard to its collusion in pricing and project allocation over the last number of years. Stefannuti Stocks (JSE:SSK) and Raubex (JSE:RBX) were the latest companies to announce possible penalty figures. Stefanutti advised its investors that the proposed penalty is R323m, roughly 3.9% of its 2012 turnover. Raubex, which released results for the year to February on Monday, announced that it has made a provision of R59m, which equates to 1.1% of its turnover in 2012. Prior to this, Basil Read announced that it had provided for a R75m penalty, which equates to 1.36% of its R5.5bn turnover in 2012.

Life Healthcare H1 HEPS up 20%: Interim cash dividend of 54 cents per share. Paid patient days (PPDs): +1,5% Revenue: +7,0% to R5 638 million. Operating profit: +12,7% to R1 361 million. Normalised earnings per share: +14,5% to 71,3 cents. Interim cash dividend: +20% to 54 cents

Stocks rise, but Amplats at almost eight-year low: Amplats, Implats fall over 5%, Richemont up. JOHANNESBURG - South African stocks gained on Monday as investors sought bargains after two previous sessions of decline, but Anglo American Platinum (JSE:AMS) fell heavily again as the market gave a thumbs down to its revised restructuring plan. The blue-chip Top-40 index rose 0.45% to 35,740.30, while the broader All-share index closed 0.44% higher at 40,407.27. Amplats, the world's top platinum producer, fell sharply for a second straight trading day. On Friday, it said it would cut 6,000 South African mining jobs, fewer than half the 14,000 initially proposed, as it tries to restore profits without provoking a backlash from the government and restive unions.

Telkom appoints Head of Strategy: This enhances the expertise of our leadership team - Maseko. Miriam Altman has been announced as the Head of Strategy of Telkom Group with effect from 1 June 2013. Altman will support the development and execution of Telkom’s strategy and will report directly to the CEO. Dr Altman was an Executive Director at the HSRC from 2002 – 2010, where she played a leading role in its transformation and established its highly influential work on employment. She is a member of the National Planning Commission and will continue to serve on the NPC.

Rand, govt bonds hit by labour tensions: Currency could fall through the year's low of 9.3655. JOHANNESBURG - The rand fell against the dollar and is likely to stay under pressure as the possibility of a violent 'strike season' adds to concerns about South Africa's national accounts deficit. The rand was down 0.53% at 9.1507 to the dollar at 18h37 on Monday, off a 9.0965 close in New York on Friday. It briefly fell to 9.1555 earlier in the session, its weakest level in more than two weeks.

In the short term, investors are wary of a labour union backlash after Anglo American Platinum (JSE:AMS) said last week it would cut 6,000 South African mining jobs, albeit fewer than half the 14,000 initially proposed.

Transnet to shut coal export line for 12 days: To conduct maintenance. JOHANNESBURG - South African logistics group Transnet will suspend the coal export line leading to the Richards Bay terminal for 12 days from May 14 to conduct maintenance, the company said on Monday. Mining companies who use the line to export their coal include Anglo American, BHP Billiton , Exxaro and Xstrata.

Source: 28E Capital (Pty) Ltd

Just an interesting Pic

Bly weg van trust-smouse

Mei 04 2013 Bron: Rapport Sondag Koerant

’n Leser uit Jeffreysbaai het vrae oor sy familietrust.

Hy het dit “op aanbeveling” geskep en hy en sy vrou het jaarliks die maksimum belastingvrye skenkingsbedrag aan die trust oorgemaak wat meestal in effektetrusts belê is. Hy is die trustee en sy vrou en kinders die begunstigdes.

Dis die kern van sy brief.

En dan wil hy weet: Is die trust deel van sy boedel?  Wat is die posisie ten opsigte van belasting op die trust ná sy afsterwe?

Hierdie is vir my tipiese probleme wat kan ontstaan as jy jou ore uitleen aan trustsmouse wat net daarop ingestel is om geld uit jou te maak.

Dié tipe vrae skep op sy beurt by my baie vrae, wat ek nie aan die leser kon vra nie, want hy gee nie ’n telefoonnommer of e-pos in sy brief nie.

Ek vra dit hier sodat lesers dit aan hul “raadgewer” kan vra as hulle met ’n trustvoorstel te doene kry. Waarom, sou my eerste vraag wees, moet die belegging in die familietrust gedoen word – hoekom nie in jou en/of jou vrou se eie naam nie?

Dit kon wees om vir boedelbelastingdoeleindes dié geld uit jou boedel te hou. En dan sou ek wou weet, wie betaal die inkomstebelasting op die opbrengs op die belegging?  Die trust? 

Dan het jy R22 800 per jaar se rentevrystelling gemis. Dit geld net individue, nie trusts nie. Die trust betaal boonop 40% belasting (op die rente en huurinkomste in die belegging) teenoor jou eie koers. En kapitaalwinsbelasting op die verhandeling in aandele  Trusts betaal KWB teen 26% en individue ’n maksimum van net 13,3%.

Ek weet belasting-slimjanne sal sê die opbrengs word toegeken aan begunstigdes en die individu betaal dus belasting in sy naam teen die laer koers (die sogenaamde deurvloeibeginsel).

Dit sou waar kon wees, maar dan is die vraag: Wat is dan die doel van die trust  Sodra geld aan ’n individu toegeken word, verkry hy ’n gevestigde reg daarop. Dit behoort dan nie meer aan die trust nie.

Prakties is dit terug in die boedel van die begunstigde en vatbaar vir boedelbelasting, skuldeisers en egskeidingseise.

Net een trustee?  Nog meer, net die familie as trustees  Kom ons kyk wat sê die hof. In die saak Landbank vs. Parker het die hof hom ondubbelsinnig uitgespreek teen trusts wat deur die familie beheer word, laat staan nog net een trustee.

’n Onafhanklike trustee is nodig as jy nie jou aan die verkeerde kant van ’n eis, of van Jan Taks, wil bevind nie.

“Is die trust deel van my boedel?” Nie noodwendig nie. ’n Trust wat reg opgestel is en reg bestuur word, moet juis voorkom dat trustbates by jou dood in jou boedel opgeneem word.

My ervaring is dat die meeste trusts nie korrek opgestel is nie. Die talle onlangse hofuitsprake tot die verdriet van trustoprigters ondersteun my siening.

Verder bepaal art. 3(3)(d) van die Boedelbelastingwet (Wet 45 van 1955) dat enige bate waaroor jy kort voor jou dood in staat was om tot jou eie voordeel oor te beskik, in jou boedel opgeneem kan word.

Dit sal dus afhang van hoe jy met hierdie belegging te werk gegaan het. Asof dit jou eie is?  Dan is die kans goed dat dit in jou boedel kan beland.

All you need to know for the 2013 tax season

Who needs to register for income tax?

The South African Revenue Service (SARS) requires everyone who receives employment income, including those below the tax threshold, to register for income tax.

Who is required to submit an income tax return to SARS?

Everyone who earns an income is required to submit a completed and signed income tax return to SARS, unless they meet all of the following requirements (according to SARS’ current practice):

• They earn an income of less than R120 000 for a tax year (i.e. from 1 March to 28 February)

• Their full income is earned from one source (i.e. the Allan Gray Living Annuity)

• Their income does not include any other allowances or deductions

For the 2012/2013 tax year, the taxable income threshold for individuals on which no tax is payable is as follows:

Age Below age 65	R63 556
Age 65 and below 75	R99 056
Age 75 and over	R110 889

Once these thresholds have been exceeded, the specific rates at which individuals are taxed depend on the amount of taxable income received. A year of assessment for an individual consists of twelve months starting from 1 March and ending on the last day of February of the following year.

What is an income tax return?

This is a declaration of income earned and capital gains or losses realised in a tax year (i.e. from 1 March to 28 February). If clients are required to submit an income tax return (see above requirements) they will need to complete and file a tax return each year during SARS’ tax filing period. More information on the filing period and processes is available at www.sars.gov.za.

Dividend Withholding Tax

Dividend Withholding Tax (DWT) came into effect on 1 April 2012. It is a withholding tax that falls outside of the normal tax rules (i.e. the rules that govern the calculation of an individual’s personal income tax return calculation). Dividends are taxable in the hands of the investor for dividends tax purposes, but remain exempt for income tax purposes.

We are required to deduct DWT at the applicable rate (e.g. 15%) from the value of our clients’ dividends and pay it to SARS. The way in which clients complete their income tax return is not affected in any way. They should include all local gross dividends they have received in the ‘exempt dividends’ field on their income tax return.

How will clients receive their tax certificates?

We will send our clients their tax certificates according to their communications preference (i.e. email or post). Alternatively, they can access their tax certificates by calling us 086 111 7625. 

Joint accounts

We issue tax certificates or statements in the name of the joint account holders, but only include the primary account holder’s ID number. Each joint account holder is required to submit the tax certificate to SARS detailing how the investment is split between the account holders.

Taxpayer season

The 2013 taxpayer season will commence on 1 July 2013. The deadlines are as follows:

• 1 July 2013 - 27 September 2013 (for non-provisional and provisional taxpayers who submit their tax returns manually)

• 1 July 2013 - 22 November 2013 (for non-provisional taxpayers who submit their returns via eFiling)

• 1 July 2013 - 31 January 2014 (for provisional taxpayers who submit their returns via eFiling)

Source: Allan Gray