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Trading Statement for the year ended 30 June 2014
ITALTILE LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 1955/000558/06)
Share code: ITE ISIN: ZAE000099123
(“Italtile” or “the Group”)
TRADING STATEMENT FOR THE YEAR ENDED 30 JUNE 2014
Italtile is currently finalising its results for the year
ended 30 June 2014.
During the year the Group disposed of the following non-core
businesses:
- Cladding Finance Proprietary Limited (“Cladding
Finance”), a niche provider of outsourced debtors’
solutions (disposal effective 30 September 2013);
- The eight store CTM retail operation in Australia via a
facilitated management buyout (disposal effective
31 October 2013). Italtile retained and continues to
manage the Group-owned properties out of which the
operations traded; and
- Allmuss Properties Zambia Limited (“Allmuss Properties
Zambia”), a property holding company (disposal effective
31 December 2013).
The contribution to Group earnings of Cladding Finance and
Allmuss Properties Zambia was immaterial.
Following these disposals, the results of these businesses
have been recorded as discontinued operations in the Group’s
results for the year. Accordingly, the summarised financial
information presented below refers to continuing operations
only.
The Group’s basic earnings per share (“EPS”) will be between
18% and 20% higher and headline earnings per share (“HEPS”)
will be between 23% and 25% higher, compared to the previous
corresponding period being 48.3 cents and 47.4 cents
respectively. HEPS have been adjusted for the post-taxation
impact of the following once-off events:
- Profit of R4.4 million achieved on the sale of property
in South Africa;
- Profit of R4.4 million achieved on the sale of Allmuss
Properties Zambia (referred to above); and
- Impairment of R20 million (2013: R5 million) recorded for
property held in Australia (referred to above).
Both the EPS and HEPS calculations include a R17 million IFRS2
charge, of which R11 million is a once-off charge, related to
an equity-settled staff share incentive scheme implemented
during the year.
Turnover from continuing operations increased by 33%,
including the contribution of nine previously franchised CTM
stores converted to Group-owned stores. Excluding the
contribution from these nine stores, turnover from comparable
Group-owned stores and entities increased by 20%. Average
selling prices were marginally ahead of inflation.
The performance reported in the year is attributable to
improved supply and range of product across the merchandise
categories in the Group’s Italtile, CTM and TopT retail
operations. This was facilitated by the integrated supply
chain, which supported the Group’s policy of “Right product at
the right time, place and price”; good volume growth in tile
sales in the CTM division; and in the context of Rand
weakness, the competitive advantage afforded by consistent
supply of well-priced imported products achieved through long-
standing supplier relationships and underpinned by the Group’s
strong balance sheet.
REVIEW OF RESULTS
The information on which this announcement is based has not
been reviewed or reported on by Italtile's auditors.
PUBLICATION OF RESULTS
The Group's results for the year ended 30 June 2014 are
expected to be published on SENS on or about 21 August 2014.
Johannesburg
7 August 2014
Sponsor
Merchantec Capital
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