Introduction
The group continues to comply with International Financial Reporting Standards (IFRS) including the interpretations issued by the International Financial Reporting Interpretations Committee (IFRIC), the listing requirements of the JSE Limited (JSE) and in all material respects with the code of corporate practice and conduct published in the King II report on corporate governance. 

As accounting standards become more technical and complex, we have focused on additional disclosure and clearer explanations to aid the reader’s understanding of the group’s financial performance. Accordingly, the group has early adopted both IFRS 8 – Operating Segments and IFRIC 11 – IFRS 2 Share-based payment – Group and Treasury Share Transactions. The group’s accounting policies have been applied consistently to the periods presented in the consolidated financial statements, with the only changes being the early adoption of IFRS 8 and IFRIC 11 and a change in accounting polices for Common control transactions – premiums and discounts arising on subsequent purchases from or sales to minority interest in subsidiaries.

This review aims to provide a clearer view of the group’s performance for the year ended 30 June 2007. The review is not comprehensive and should be read in conjunction with the annual financial statements on pages 84 to 221, and the chairman and chief executive’s statements on pages 10 to 17.

Performance
The group’s operating model characterised by selective participation in geographical areas, currencies, funding structures, supply chain participation and investments in the household goods and automotive markets again produced good results.

We are pleased with the 25% increase in headline earnings per share, bringing the five-year compound growth rate to 18%. Revenue from continuing operations increased by 13% to R34,2 billion, resulting in a five-year compound growth rate of 33%, and the five-year compound EBITDA growth rate is 33%. Operating margins increased year-on-year to 9,4% (2006: 8,6%).