notes

1	Basis of preparation
	The abridged group financial statements comply with IAS 34 Interim Financial Reporting. Accounting policies used in the abridged group financial statements are the same as those used to prepare the group annual financial statements, which have been prepared in compliance with International Financial Reporting Standards (IFRS) and the South African Companies Act (No. 71 of 2008, as amended).
2	Earnings per share
	The difference between earnings per share and diluted earnings per share is due to the impact of unexercised options under the group’s share incentive schemes.
3	Property, plant and equipment and intangible assets
	During the 26 weeks to 25 December 2011, the group acquired property, plant and equipment at a cost of R331m (2010: R221m) and acquired intangible assets (including goodwill and reacquired rights) at a cost of R358m (2010: R144m).
4	Acquisition of franchise operations
	The group continues to wind down its South African franchise operations, acquiring 25 stores in the current period.
	Fair value of assets acquired at the date of acquisition Rm Property, plant and equipment 10 Reacquired rights 193 Deferred tax liability (55) Goodwill arising on acquisition 113 Consideration 261 Accrual – prior period 43 Cash outflow 304
	The goodwill of R113m is supported by the growth and synergies expected to accrue from the acquisitions. From the dates of acquisition, these 25 franchise stores have contributed an additional R79m of revenue and R41m of profit before tax to the group. The directors consider that, on a pro-forma basis, had the acquisition of the acquired franchisees been effective from the beginning of the period, the revenue of the group for the period would have been R118m higher, and profit before tax would have been R62m higher.
5	Issue and repurchase of shares
	9 298 259 (2010: 851 827) shares totalling R285m (2010: R21m) were repurchased from the market. 8 836 665 (2010: Nil) shares totalling R329m (2010: Nil) were purchased from the market in the current period and allocated to employees on settlement of share-based payments. In the prior period, 3 500 331 ordinary shares totalling R28m were issued in terms of the group’s executive incentive schemes.
6	Contingent liabilities
	Group companies are party to legal disputes and investigations that have arisen in the ordinary course of business. Whilst the outcome of these matters cannot readily be foreseen, the directors do not expect them to have any material financial effects.
7	Borrowing facilities
	Unutilised banking facilities amount to R2 607m (2010: R2 463m). There is no limit in the Memorandum of Incorporation on the group’s authority to raise interest-bearing debt.
8	Related party transactions
	The group entered into related party transactions during the period, the substance of which are similar to those explained in the group’s 2011 Integrated Report.
9	Events subsequent to the reporting date
	Agreements to purchase a further 9 franchise stores totalling R122m are effective from dates subsequent to this report.
10	Approval of interim financial statements
	The interim financial statements were approved by the board of directors on 15 February 2012.
11	Unaudited results
	These results have not been reviewed or audited. These summary financial statements have been prepared under the supervision of the group finance director, Norman Thomson CA(SA).