Sharenet Sites 
Sharenet Sites
AOO/AON/AOVP - African & Overseas Enterprises Limited - Reviewed results for the year ended 30 June 2010 African & Overseas Enterprises Limited (Incorporated in the Republic of South Africa) (Registration number 1947/027461/06) Share codes: AOO - AON - AOVP ISIN: ZAE000000485 - ZAE000009718 - ZAE000000493 REVIEWED RESULTS FOR THE YEAR ENDED 30 JUNE 2010 HIGHLIGHTS: - OPERATING PROFIT UP 36.9% - HEADLINE EARNINGS UP 26.5% - STRONG BALANCE SHEET COMMENTARY The principal operating subsidiary Rex Trueform Clothing Company Limited reports as follows: "The group has produced a robust performance in the adverse economic conditions which persisted throughout the 2010 financial year. In the group`s interim report for the half-year to December 2009 it was anticipated that the depressed retail conditions would continue and that the achievement of sales and profit targets would remain challenging. In line with expectations revenue was down 2.4% on last year. The group has however met the challenge regarding performance, an improvement of 35.6% in group operating profit having been achieved. Earnings continued to benefit significantly from the Duty Credit Certificate Scheme during the past year. The use of duty credit certificates will phase out during the coming year. A lower level of interest earned and a slightly higher effective tax rate diluted the full effect of the operating profit improvement on earnings. Headline earnings per share improved by 24.5% to 154.5 cents per share. Earnings per share increased by 19.2% to 150.0 cents per share. Retail Queenspark delivered a pleasing performance, particularly in the second six months during which operating profit improved substantially over the previous year. The turnover growth of 0.4% in the first half of the year was followed by a more difficult second half where turnover decreased by 2.6% on last year. Turnover was down 1.2% for the full year to June 2010. There were significant increases in costs due to the addition of new stores, rental escalations and increased electricity charges. Operating profit improved by 38.6% over last year to R44.4 million. This was largely due to improved margins achieved through better product sourcing and less mark-downs. The ratio of operating profit to turnover improved to 9.6% compared to 6.9% achieved last year. Manufacturing The manufacturing operation in Atlantis experienced a difficult first six months of the year during which production levels were reduced to match the lower demand. This plant produced a much improved performance during the second half of the year during which it delivered a positive return. Prospects Four new retail stores were opened by Queenspark during last year. The full benefit of these together with store refurbishments and relocations will reflect in performance in the coming year. Queenspark`s seasonal ranges currently in stores are receiving a high level of acceptance. Turnover for the first eight weeks of the new financial year was more than 13% improved on last year." Dividend The board is recommending to shareholders that the dividend on the ordinary and `N` ordinary shares be increased to 28 cents per share. In terms of the Articles of Association, the 6% cumulative participating preference shares carry the right to receive an additional 0.5% dividend for every completed 1.25% dividend in excess of 2.5% declared on ordinary shares in any one financial year. Preference shareholders will therefore be entitled to an extra dividend of 21.5% (43 cents per share) which will be included in the half-yearly payment in December 2010. Shareholders will be asked to consider, and if deemed fit, approve the directors` dividend recommendation at the annual general meeting of the company to be held on 17 November 2010. An announcement detailing the terms of the dividend declaration will be made immediately following the annual general meeting. Signed on behalf of the board ML Krawitz (Chairman) PE Shub (Chief Executive Officer) Cape Town 7 September 2010 STATEMENT OF COMPREHENSIVE INCOME Consolidated (R`000) 2010 2009
(Reviewed) (Audited) Revenue 490 750 502 787 Turnover 480 850 491 023 Cost of sales (221 915) (274 748) Gross profit 258 935 216 275 Employment costs (83 322) (70 997) Occupancy costs (62 683) (53 325) Depreciation and amortisation (13 754) (12 248) Other operating costs (64 598) (55 155) Rental income 128 408 Royalties 995 1 118 Operating profit 35 701 26 076 Dividends received 16 23 Finance income 8 761 10 215 Finance expenses (359) (446) Profit before taxation 44 119 35 868 Income tax expense (14 806) (11 422) Profit for the period 29 313 24 446 Other comprehensive income Net change in fair value for available-for-sale financial assets (146) - Total comprehensive income for the period 29 167 24 446 Profit attributable to: Ordinary and `N` ordinary shareholders 15 613 12 936 Preference shareholders 138 138 Equity holders of the parent 15 751 13 074 Non-controlling interest 13 562 11 372 Profit for the period 29 313 24 446 Total comprehensive income attributable to: Ordinary and `N` ordinary shareholders 15 532 12 936 Preference shareholders 138 138 Equity holders of the parent 15 670 13 074 Non-controlling interest 13 497 11 372 Total comprehensive income for the period 29 167 24 446 Reconciliation of headline earnings Attributable earnings 15 613 12 936 Loss/(profit) on disposal of plant and equipment 510 (192) Headline earnings 16 123 12 744 Headline earnings per share (cents) 141.6 111.9 Earnings per share (cents) 137.1 113.6 Proposed dividend per share (cents) 28.0 25.0 Dividend cover (based on headline earnings) 5.1 4.5 Weighted average number of equity shares on which earnings per share is based (000) 11 387 11 387 Number of equity shares in issue (000) 11 387 11 387 STATEMENT OF FINANCIAL POSITION Consolidated (R`000) 2010 2009 (Reviewed) (Audited) Assets Non-current assets 67 847 60 484 Property, plant and equipment 57 394 47 058 Investment property 3 511 3 511 Intangible assets 2 107 2 720 Investments (unlisted) 576 722 Deferred taxation 4 259 6 473 Current assets 221 826 201 962 Inventories 57 994 68 484 Trade and other receivables 21 026 19 205 Forward exchange contracts 522 - Income tax receivable 627 14 Cash and cash equivalents 141 657 114 259 Total assets 289 673 262 446 Equity and liabilities Capital and reserves 234 874 211 777 Share capital 1 200 1 200 Share premium 6 076 6 076 Other reserves 500 530 Retained earnings 122 299 109 533 Non-controlling interest 104 799 94 438 Non-current liabilities 13 263 11 653 Post-retirement liability 4 122 4 122 Accrued operating lease liability 9 141 7 531 Current liabilities 41 536 39 016 Provisions 560 669 Trade and other payables 40 976 32 578 Forward exchange contracts - 5 642 Income tax payable - 127 Total equity and liabilities 289 673 262 446 ABRIDGED STATEMENT OF CASH FLOWS Consolidated (R`000) 2010 2009
(Reviewed) (Audited) Cash generated by operations 52 149 45 085 Working capital changes 11 316 (2 720) Interest received 8 761 10 215 Interest paid (359) (446) Dividends paid (6 162) (6 162) Dividends received 16 23 Taxation paid (13 332) (9 716) Net cash inflow from operations 52 389 36 279 Additions to property, plant and equipment (25 166) (22 090) Proceeds on disposal of property, plant and equipment 175 859 Net cash outflow from investing activities (24 991) (21 231) Net increase in cash 27 398 15 048 Cash at the beginning of the period 114 259 99 211 Cash at the end of the period 141 657 114 259 STATEMENT OF CHANGES IN EQUITY Consolidated (R`000) 2010 2009 (Reviewed) (Audited) Share capital 1 200 1 200 Share premium 6 076 6 076 Other reserves Opening balance 530 2 896 Share-based payments 51 39 Fair value adjustment for available-for-sale financial assets (81) - Transfer reserve - (2 405) Closing balance 500 530 Retained earnings Opening balance 109 533 97 039 Profit for the period 15 751 13 074 Reserve transferred - 2 405 Dividends (2 985) (2 985) Closing balance 122 299 109 533 Non-controlling interest Opening balance 94 438 86 211 Profit for the period 13 562 11 372 Dividends (3 177) (3 177) Other (24) 32 Closing balance 104 799 94 438 Total capital and reserves 234 874 211 777 SEGMENTAL REPORTING Consolidated (R`000)
2010 2009 (Reviewed) (Audited) Revenue Retail 461 934 467 318 Manufacturing 19 911 24 823 Manufacturing total 21 170 27 192 Less: intersegment sales (1 259) (2 369) Property 128 408 Total segment revenue 481 973 492 549 Dividends received 16 23 Finance income 8 761 10 215 Total revenue 490 750 502 787 Segment operating profit/(loss) Retail 44 409 32 035 Property (202) 507 Manufacturing (2 700) (2 095) Segment profit 41 507 30 447 Group services + (5 806) (4 371) Total segment operating profit 35 701 26 076 Segment depreciation included in operating profit Retail 13 439 11 759 Manufacturing 555 804 Total segment depreciation 13 994 12 563 Segment assets Retail 171 239 180 248 Property 9 236 8 725 Manufacturing 13 580 11 348 Group Services 95 618 62 125 Total segment assets 289 673 262 446 Segment liabilities Retail 46 001 40 638 Property 30 - Manufacturing 3 636 5 724 Group Services 5 132 4 307 Total segment liabilities 54 799 50 669 Segment capital expenditure Retail 25 159 22 087 Property - - Manufacturing 7 3 Total segment capital expenditure 25 166 22 090 + Group services includes corporate costs. OTHER INFORMATION Consolidated (R`000)
2010 2009 (Reviewed) (Audited) Capital commitments Authorised - not contracted for 16 998 16 168 Gross profit margin 53.8% 44.0% Operating profit margin 7.4% 5.3% Retail segment operating profit margin 9.6% 6.9% NOTES 1 Basis of preparation These reviewed results have been prepared in terms of the South African Companies Act of 1973 (as amended), IFRS, IAS 34: Interim Financial Reporting and the JSE Listings Requirements. 2 Accounting policies The accounting policies applied are consistent with those applied in the preparation of the group`s annual financial statements for the year ended 30 June 2009. 3 Review by auditors The financial information has been reviewed by KPMG Inc, whose unqualified review opinion is available for inspection at the company`s registered office. It is anticipated that an unqualified audit opinion will be issued once the detailed financial statements have been finalised. The annual report containing a detailed review of the operations of the company together with the audited financial statements will be posted to shareholders towards the end of September 2010. Directors: ML Krawitz* (Chairman), PE Shub (Chief Executive Officer) (alt ML Krawitz), CEA Radowsky, JC O`Brien, PM Naylor*, RV Orlin*, DS Johnson * non-executive African & Overseas Enterprises Limited (Incorporated in the Republic of South Africa) (Registration number 1947/027461/06) Share codes: AOO - AON - AOVP ISIN: ZAE000000485 - ZAE000009718 - ZAE000000493 Registered office: Rex Buildings, 263 Victoria Road, Salt River, Cape Town, 7925 Secretary: AA Hodgkinson Transfer secretaries: Computershare Investor Services (Pty) Limited 70 Marshall Street, Johannesburg, 2001 Sponsor: Java Capital Websites: www.queenspark.com www.rextrueform.com Date: 08/09/2010 15:03:02 Supplied by www.sharenet.co.za Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.
