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 The Sharenet Daily 
Tuesday, 05 May 2015 - 20:00
 
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Seed Weekly - Clicks Group Ltd

The Clicks Group Ltd is a healthcare retail and supply group, listed on the JSE in the Food and Drug Retailers sector. The Clicks retail stores are known and loved by SA’s consumers and the Group enjoys around 18% of the retail pharmacy market share.

History

The first Clicks store was opened in Cape Town in 1968, with a listing on the JSE following in 1979 at a market capitalisation of R 10m. Legislation at the time prevented corporate ownership of pharmacies, so Clicks operated as a drugstore without drugs, selling only off-the-shelf medication.

By 1983 the group operated 44 stores, with turnover exceeding R 100m, and these numbers increased to 155 and R 500m by 1991. In 1992 Clicks acquired Musica, SA’s leading retail music brand at the time and launched the successful ClubCard loyalty programme in 1995.

In 1998 the Group expanded to Australia, purchasing the Priceline chain of stores and also acquiring House and Price Attack in the next few years. By 2003 the group had 191 franchise stores in Australia, but the whole of New Clicks Australia was sold to a consortium of private equity investors in 2004.

Legislation was passed in 2003 that enabled Clicks to finally open dispensaries inside existing Clicks stores, which the Group has done very successfully over the next 12 years.

Operations

The Group’s brands include the well-loved Clicks retail stores and pharmacies, The Body Shop and Musica. The Group also operates United Pharmaceutical Distributors (UPD), a wholesale distribution company supplying to Clicks pharmacies, hospitals and independent pharmacies.

The Group’s retail brands have a combined footprint of 632 stores, including 26 in Namibia, Botswana, Swaziland, and Lesotho. The Group has set a longer term target of 600 Clicks stores in SA alone, and aims to open 24 new stores and 20 new pharmacies in this financial year.

Latest Financial Results

Clicks recently released its interim results for the six months ended 28 February 2015. Group turnover increased by 14.1% to R10.7bn, with Clicks turnover up 10.5% and UPD turnover up 20.7%.

Operating margin remained stable compared to the previous period at 6.0%, with the margin for retail operations at 7.3% far exceeding the margin of 2.3% on distribution operations. Retail operations accounted for 83% of Group profits.

Diluted HEPS increased by 12.8% to 177.6 cents, while management also increased the interim dividend by 22.4% to 65.5 cents per share.

Retail operating expenses increased by 11.5% due to increased investment in stores, staff and advertising costs. Sales growth of 10.5% in Clicks stores was driven by innovative, value-driven promotions, with promotions comprising 29% of total sales.

The Body Shop managed to increase turnover by 12.2%, and has expanded to 47 standalone stores as well as outlets in 92 Clicks stores. Musica managed to increase sales by 2.4%, and increased market share in all product categories due to competitors closing down.

Turnover in the UPD distribution business increased by 20.7%, driven by volume growth of 24.3% and growth of 56.1% in turnover from channels other than Clicks, hospitals and independent pharmacies. UPD managed to increase its wholesale market share from 25.4% to 26.2%.

Outlook and Fundamentals

Clicks’ management acknowledges that the South African consumer remains under pressure, and this is expected to remain unchanged through the second half of the financial year. The Group’s value proposition and re-launched ClubCard incentive is expected to ensure continued growth. A record amount of R 379m is allocated for capital expenditure for this financial year.

At a PE of 24 and DY of 2.3%, Clicks does not look particularly attractive compared to the JSE’s numbers of 19.2 and 2.8% respectively. However, the share price is starting to show some strong momentum, with a 48% return over the past 12 months.

Clicks is not included in the Value or Momentum building blocks comprising the Seed Equity Fund at the moment, but if strong price and earnings momentum continues it may be included in the Momentum building block portfolio.

Kind regards,

Cor van Deventer

www.seedinvestments.co.za
info@seedinvestments.co.za
021 914 4966

Tue, 05 May 2015
Top News
[IMAGE]
ArcelorMittal's South African unit will cut second-quarter production by 6 percent at its Newcastle plant due to slack demand from its domestic market, it said on Tuesday.  Full story

[IMAGE]
Local markets On Tuesday, the JSE All Share had edged down 0.12% as gains in resources and gold miners failed to offset losses in other sectors.  Full story
U.S. investigators were looking into claims by the Islamic State militant group that it was behind a failed attack on a Texas exhibit of cartoons of the Prophet Mohammad in which two gunmen were killed, but officials said on Tuesday they doubted the group's direct involvement.  Full story
A second suspected human trafficking camp has been discovered in southern Thailand, police said on Tuesday, following a search of a mountainside where 26 bodies were found in shallow graves at the weekend.  Full story
National Front founder Jean-Marie Le Pen disowned his daughter and party leader Marine on Tuesday after she suspended him from the far-right French movement, saying he hoped she would lose the 2017 presidential election.  Full story
 
Markets
Long-term U.S. Treasury yields hit their highest level of 2015 on Tuesday as investors reassessed the chances of a September interest rate hike. . .  Full story
Gold rose one percent on Tuesday as the dollar paused and global shares fell ahead of U.S. non-farm payroll data later in the. . .  Full story
Hong Kong shares closed at their lowest in two weeks on Tuesday, with the tumble led by listed Chinese enterprises, as investors took. . .  Full story
China stocks suffered their biggest loss in nearly four months on Tuesday as investors dumped shares ahead of a fresh wave of initial. . .  Full story

Australian shares gave up early gains to end almost flat on Tuesday as investors wondered whether the easing cycle might now be over. . .  Full story
Global equity markets rose on Monday, lifted by the biggest gain in U.S. factory orders in eight months and solid manufacturing data in. . .  Full story
Gold climbed 1 percent on Monday, buoyed by weak Chinese factory data and earlier dollar weakness, lifting prices above the prior session's six-week. . .  Full story
Hong Kong shares ended almost flat on Monday, as data shows that China's factories suffered their fastest drop in activity for a year. . .  Full story
SA Business
Miner and commodity trader Glencore reported weaker than expected first quarter output at some of its mining assets, with production of its top earner, copper, down 9 percent due to lower. . .  Full story
Zimbabwe plans to import 700,000 tonnes of the staple maize grain to plug a deficit after bad weather affected the crop from the current farming season, state radio reported on Tuesday.. . .  Full story
South Africa's rand was stable against the dollar early on Tuesday and was expected trade in a narrow range for most of the session given a dearth of market moving data.. . .  Full story

ArcelorMittal's South African unit will cut second-quarter production by 6 percent at its Newcastle plant due to slack demand from its domestic market, it said on Tuesday.. . .  Full story
Company News
Further to the joint announcement issued on 10 March 2015, security holders of both Vukile and Synergy are informed that all. . .  Full story
Operating profit from the various sugar operations is expected to total approximately R806 million for the year (2014: R908 million), a. . .  Full story
Dangote Flour Mills Plc ("DFM") released results for the half year ended 31 March 2015 on the Nigerian Stock Exchange on. . .  Full story
In terms of paragraph 3.9 of the JSE Listings Requirements, immediately after an issuer acquires knowledge of any material price sensitive. . .  Full story

Further to the announcements of 6 November 2014, 17 December 2014 and 30 January 2015, regarding the finalisation of a sale and purchase agreement (˘SPA÷) with Blackspear Capital ("Blackspear") for the disposal of the Mooiplaats Colliery for R250 million and the subsequent extension of the SPA until 30 April 2015, Coal announced that as a result of current commodity market conditions, the Company and Blackspear have agreed an extension to the SPA, on a non-exclusive basis, for Blackspear. . .  Full story
Company Results
Revenue for the interim period shot up to R808.2 million (R269.3 million). Operating profit jumped to R406.1 million (R126.7 million). Profit. . .  Full story
Revenue for the interim period rose to R278.7 million (2013: R273.2 million). Gross profit lowered to R16.3 million (2013: R25.4 million),. . .  Full story
Income for the year increased to R84.6 million (2014: R56.8 million). Operating profit for the year jumped to R69.9 million (2014:. . .  Full story
Net interest income grew to R448 million (R395 million). Profit attributable to equity holders slumped to R177 million (R775 million), Furthermore,. . .  Full story
World Markets (Spot Prices)
NameTimeRPMove% Move
JSE Overall17:0054574.99-64.87-0.12%
JSE Top 4017:0048312.41-130.80-0.27%
JSE Gold17:001352.3112.600.94%
JSE Financial17:0046202.82-43.49-0.09%
JSE Industrial17:0076553.71-397.40-0.52%
JSE Indust 2517:0068024.53-489.55-0.71%
JSE Resource17:0046140.46620.811.36%
DJ Futures19:5817900.00-95.00-0.53%
DJ Ind19:5817976.68-93.72-0.52%
SP 50019:582096.28-18.21-0.86%
Nasdaq19:584947.65-69.28-1.38%
FTSE 10017:266937.87-48.08-0.69%
DAX18:0811327.68-292.17-2.51%
CAC4018:084974.07-107.90-2.12%
Nikkei01/0519531.6311.620.06%
Shanghai09:284298.71-181.75-4.06%
Hang-Seng06:2827841.29-397.45-1.41%
All Ords08:485816.20.300.01%
NZSE 5007:485787.7920.710.36%
NameTimeRPMove% Move
Gold $19:591193.495.280.44%
Gold R19:5814281.90-39.01-0.27%
Gold R/kg19:5845922535470.78%
Silver $19:5916.5320.11900.73%
Platinum $19:591144.702.200.19%
Palladium $19:59793.4312.331.58%
R18617:118.10.040.50%
R20417:067.17-.15-1.98%
R20717:067.57.040.53%
Brent Crude19:5868.021.572.36%
Rand / Dollar19:5911.9639-0.0884-0.73%
Rand / Pound19:5518.1566-0.0490-0.27%
Rand / Euro19:5513.4039-0.0393-0.29%
Rand / NZD19:589.0584-0.0253-0.28%
Rand / AUD19:559.51920.06730.71%
Yen / Dollar19:59119.9170-0.2290-0.19%
Euro / Dollar19:550.8927-0.0040-0.45%
Dollar / Euro19:591.11920.00440.40%
Pound / Dollar19:550.6580-0.0032-0.48%

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The JSE Today

Trading Statistics
DateAdv.Decl.Unch.ActivesVolumeValueTradesOrders
05/05/201520716458429239,814,011R15,347,052,9662279351967246
04/05/201519718058435198,575,336R14,685,347,725241983957327
30/04/201521117863452253,254,688R21,827,455,5952969302081518
29/04/201512722854409258,311,176R20,624,531,9722949662058985
28/04/201519119854443287,648,509R20,697,040,760307914809333
* Includes all listed instruments on the JSE
Major Moves Up
SharenameSaleMove% MoveVolume
1 KUMBAIO  18411171110.25.%1301923
2 EASTPLATS  16801258.04.%3144
3 BRIMSTON  17001257.94.%100
4 MAZOR  13097.44.%500000
5 ASTRAPAK  405256.58.%203119
6 EXXARO  106316446.45.%750336
7 LONMIN  27821636.22.%1503665
8 ASCEN_A  650386.21.%280
9 CROOKES  69004006.15.%8
10 REUNERT  65003665.97.%1644315
11 OMNIA  171989685.96.%121912
12 CONDUIT  270155.88.%43562
13 ANGLOPLAT  3499717505.26.%485704
14 GRINDROD  1688835.17.%1963449
15 RAUBEX  1955955.11.%149220
16 OCEANA  114005505.07.%49259
17 ADVTECH  1070504.90.%490921
18 ASSORE  120905404.68.%404756
19 RBPLAT  54412404.61.%84078
20 MIXTEL  345154.55.%22700

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Major Moves Down
SharenameSaleMove% MoveVolume
1 Alaris  249-69-21.70.%20191
2 ERIN  6000-700-10.45.%1023
3 TRUSTCO  360-25-6.49.%93038
4 EQSTRA  360-23-6.01.%439912
5 THARISA  525-33-5.91.%6438
6 CSG  168-10-5.62.%1900
7 HUGE  330-19-5.44.%119500
8 TIMES  2150-100-4.44.%151
9 AME  8650-350-3.89.%1
10 CAPCO  7200-270-3.61.%714650
11 HULAMIN  670-25-3.60.%128187
12 AQUARIUS  168-6-3.45.%1809460
13 DIAMONDCP  180-6-3.23.%24380
14 TORRE  440-14-3.08.%184194
15 PNR-FOODS  18380-520-2.75.%97189
16 ROCKCASTL  3279-92-2.73.%1759618
17 BLACKSTAR  1401-39-2.71.%22192
18 RMIH  4620-127-2.68.%1326570
19 BATS  65000-1773-2.66.%280859
20 PALLINGHT  375-10-2.60.%148305

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New Highs
SharenameSaleHighMove% MoveVolume
1 ASCEN_A  650650386.21.%280
2 CONDUIT  270275155.88.%43562
3 ADVTECH  10701085504.90.%490921
4 WILDRNESS  56656650.89.%1000
5 ACCELERAT  70570550.71.%34756
6 CITYLDG  15450157981000.65.%57929
7 DCENTRIX  4304500.109282
8 HOLDSPORT  53955700-55-1.01.%1056644

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New Lows
SharenameSaleLowMove% MoveVolume

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Index Summary
Index NameRPMove% Move
Top 4048,312.41-130.80-0.27%
Industrial76,553.71-397.40-0.52%
Mid Cap75,835.50529.730.70%
Small Cap62,142.13267.270.43%
Resource 2046,140.46620.811.36%
Industrial 2568,024.53-489.55-0.71%
Financial 1517,594.54-23.81-0.14%
Financial & Ind. 3073,337.68-422.78-0.57%
All Share54,574.99-64.87-0.12%
Oil & Gas 32,592.231269.834.05%
Mining 27,871.08384.481.40%
Gold Mining1,352.3112.600.94%
Platinum Mining34.111.253.80%
GENERAL MINING8,138.4993.581.16%
Oil & Gas Producers 17,524.24682.764.05%
Basic Materials 25,691.49235.720.93%
Chemicals 24,660.23-3.94-0.02%
Forestry & Paper 40,054.61-626.11-1.54%
Industrial Metals 10,616.03684.686.89%
Industrials 47,153.07585.391.26%
General Industrials 166.821.921.16%
Consumer Goods 66,179.27-1022.45-1.52%
Automobiles & Parts 8,344.53-4.53-0.05%
Household Goods523.2220.37%
Health Care 10,258.46-111.04-1.07%
Beverages 214.77-5.02-2.28%
Index NameRPMove% Move
Food Producers 8,973.30-26.23-0.29%
Personal Goods 1,073.67-12.29-1.13%
Consumer Services 16,609.8395.540.58%
General Retailers 84,259.22706.050.85%
Travel & Leisure 6,745.1574.941.12%
Media 403.621.710.43%
Support Services 2,930.4224.280.84%
Telecommunications 11,740.93-108.35-0.91%
Financials 46,202.82-43.49-0.09%
Banks 83,854.59280.160.34%
Non-life Insurance 58,879.73433.870.74%
Life Insurance 44,027.47141.480.32%
General Financial 4,372.92-41.29-0.94%
Technology 63,023.31242.180.39%
SHARIAH TOP40 3,877.69130.32%
FTSE/JSE SHARIAH ALL4,121.71160.38%
COAL MINING13,439.458146.45%
FTSE JSE Fledgling 6,887.73-8-0.11%
FTSE/JSE Alt X 1,330.6880.58%
SA LISTED PROPERTY 654.74-0.05%
CAPPED PROPERTY 561.54-0.56%
RESOURCE 25,296.343491.40%
DIVIDEND PLUS243.7931.31%
FTSE/JSE RAFI 4010,437.62260.25%
Capped Top 4025,816.08-64-0.25%
Capped All Share27,681.43-33-0.12%
JSE TABACO 8,305.86-227-2.66%

Click here for the Sharenet Index Summary page
Latest Consensus Changes**
CodeCompany NameStatusUpdated
APNASPEN PHARMACARE HLDGSBUY30/04/2015
BATBRAIT S.A.BUY29/04/2015
BVTTHE BIDVEST GROUP LIMITEDHOLD28/04/2015
AQPAQUARIUS PLATINUM LTDBUY28/04/2015
SOLSASOL LIMITEDBUY28/04/2015
Results Expected**
ExpectedCompany NameFin. Date
06/05/2015LODESTONEMarch 2015 (Final)
07/05/2015GFIELDSMarch 2015 (Q)
07/05/2015GFIELDSPMarch 2015 (Q)
07/05/2015NET1UEPSMarch 2015 (Q)
07/05/2015NET1UEPSPMarch 2015 (Q)

Recent Dividends**
Share NameDec-DateLDTPay-DateAmount
OCTODEC04/05/1522/05/1501/06/15ZAR 0.9680
OASIS04/05/1529/05/1508/06/15ZAR 0.5170
RIPLC29/04/1515/05/1505/06/15GBP 0.0160
BLACKSTAR24/04/1508/05/1508/06/15GBP 0.0077
CLICKS23/04/1526/06/1506/07/15ZAR 0.6550
Ex Div**
Share NameDec-DateLDTPay-DateAmount
PSG15/04/1530/04/1511/05/15ZAR 1.4500
TIMESMED02/03/1530/04/1511/05/15ZAR 0.3000
PSG KST09/04/1530/04/1511/05/15ZAR 0.0800
EFFICIENT14/04/1530/04/1511/05/15ZAR 0.0588

Upcoming AGMs**
CodeCompany NameDateStatus
WKFWorkforce Holdings Ltd.05/05/2015Confirmed
GFIGold Fields Ltd.06/05/2015Confirmed
GFPPGold Fields Ltd.06/05/2015Confirmed
ANGAngloGold Ashanti Ltd.06/05/2015Confirmed
ANGAAngloGold Ashanti Ltd.06/05/2015Confirmed

Stock Exchange News Service
DateTimeHeadline
05/05/201517:30STEINHOFF INTERNATIONAL HOLDINGS LTD - Dealing in securities by a director of a ...
05/05/201517:30ELLIES HOLDINGS LIMITED - Dealings in securities by a director
05/05/201517:15VUKILE PROPERTY FUND LIMITED - Vukiles acquisition of the Synergy management com...
05/05/201517:00TONGAAT HULETT LIMITED - Voluntary Trading Statement for the year ended 31 March...
05/05/201516:48ATTACQ LIMITED - Dealings in securities by associates of directors of Attacq
05/05/201516:45ATTACQ LIMITED - Dealings in securities by a director of Attacq
05/05/201516:30BLUE TITANIUM CONDUIT (RF) LIMITED - New Financial Instrument Listing Announceme...
05/05/201516:30BLUE TITANIUM CONDUIT (RF) LIMITED - New Financial Instrument Listing Announceme...
05/05/201516:25TIGER BRANDS LIMITED - Half year results for Dangote Flour Mills Plc
05/05/201516:18SHOPRITE HOLDINGS LIMITED - Dealings in securities by executive director
05/05/201516:00HOLDSPORT LIMITED - Audited summarised consolidated results for the year ended 2...
05/05/201515:54SG ISSUER - Notification of the publication of Financial Results - SGI002
05/05/201515:53TORRE INDUSTRIES LIMITED - Results of the Set Point General Meeting
05/05/201515:30MR PRICE GROUP LIMITED - Trading statement for the 52 weeks ended 28 March 2015
05/05/201515:10OLD MUTUAL PLC - Form 8.3 Disclosure
05/05/201515:00AFRICAN BANK INVESTMENTS LIMITED - Notice of the passing of a non-executive dire...
05/05/201514:32WORKFORCE HOLDINGS LIMITED - Results of Annual General Meeting
05/05/201514:22EXXARO RESOURCES LIMITED - Dealings by a director of Exxaro in Exxaro shares
05/05/201514:18BAYPORT SECURITISATION (RF) LTD - Financial Statements for the 15 Months Ended 3...
05/05/201514:00MORVEST GROUP LIMITED - Cautionary Announcement
05/05/201513:44TASTE HOLDINGS LIMITED - Notification in terms of Section 122(3) of the Companie...
05/05/201513:42ABSA BANK LIMITED - Interest Rate Reset of - AB08
05/05/201513:39BARCLAYS AFRICA GROUP LIMITED - Barclays Africa Group Ltd-Interest Rate Reset of...
05/05/201513:35OLD MUTUAL PLC - Form 8.3 Disclosure
05/05/201513:21ABSA BANK LIMITED - Absa Bank Interest Rate Resets-ACL118 and ACL120
05/05/201513:20COAL OF AFRICA LIMITED - Appendix 3Z - Final Director's Interest Notice
05/05/201513:15OLD MUTUAL PLC - Form 8.3 Disclosure
05/05/201512:45MONDI LIMITED - Mondi Group - 2014 Final dividend Euro/Sterling exchange rate - ...
05/05/201512:10BIDVESTCO LIMITED - BIDC44 - Full Capital Redemption
05/05/201511:00ESOR LIMITED - Notification in Terms of Section 122(3) of the Companies Act and ...
05/05/201510:43CASHBUILD LIMITED - Disclosure of acquisition of ordinary shares
05/05/201510:41AFROCENTRIC INVESTMENT CORP LIMITED - Dealing in securities by a director of sub...
05/05/201510:30ADCORP HOLDINGS LIMITED - Press release: Adcorp enters into strategic alliance w...
05/05/201510:30DRDGOLD LIMITED - Notice of an acquisition of a beneficial interest in securitie...
05/05/201510:30QUANTUM FOODS HOLDINGS LIMITED - Updated Trading Statement
05/05/201510:10IVUZI INVESTMENTS LIMITED - IVA519 - Full Capital Redemption
05/05/201510:00SATRIX COLLECTIVE INVESTMENT SCHEME - Distribution and re-investment announcemen...
05/05/201509:40INGUZA INVESTMENTS (RF) LIMITED - INGR04 - Full Capital Redemption
05/05/201509:38MASONITE (AFRICA) LIMITED - No change statement and notice of annual general mee...
05/05/201509:25ACCELERATE PROPERTY FUND LTD - Posting of circular relating to the placing of un...
05/05/201509:00NEWFUNDS COLLECTIVE INVEST SCHEME - eRafi-Additional Listing of NewFund eRafi Fi...
05/05/201509:00FERRUM CRESCENT LIMITED - US$12m BFS Financing Agreement with Principle Monarchy...
05/05/201508:50PPC LIMITED - PPC Ltd-Interest Rate Reset of PPC003
05/05/201508:20AFRICAN BANK INVESTMENTS LIMITED - Appointment of Brian Riley as Chief Executive...
05/05/201508:08RHODES FOOD GROUP HOLDINGS LIMITED - Trading Statement
05/05/201508:04REUNERT LIMITED - Trading statement
05/05/201508:02GLENCORE PLC - GLN - First Quarter 2015 Production Report
05/05/201508:00COAL OF AFRICA LIMITED - Mooiplaats Disposal Update
05/05/201508:00BRAIT SE - Trading statement: year ended 31 March 2015
05/05/201508:00PPC LIMITED - Disclosure of Beneficial Interests in Securities
05/05/201507:30SANTOVA LIMITED - Update on acquisition of Masterfreight Internationale Speditio...
05/05/201507:05TRANSACTION CAPITAL LIMITED - Unaudited Financial Results for the half year ende...

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