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STEERS HOLDINGS LIMITED
UNAUDITED RESULTS FOR THE SIX MONTHS ENDED 31 AUGUST 1998 CAUTIONARY ANNOUNCEMENT AND DIVIDEND DECLARATION
TURNOVER +43,95% PROFIT AFTER TAX +35,42% EARNINGS PER SHARE +34,62% (FULLY DILUTED) CONSOLIDATED INCOME STATEMENT
SIX MONTHS ENDED YEAR ENDED 31 AUGUST 28 FEBRUARY 1998 1997 % 1998
R000'S R000'S CHANGE R000'S TURNOVER 85 861 59 646 43,95 137 468 OPERATING PROFIT 7 255 6 879 5,47 14 442 NET INTEREST AND FOREX GAIN 929 384 700
PROFIT BEFORE TAXATION 8 184 7 263 12,68 15 142 TAXATION 2 075 2 752 5 209 PROFIT AFTER TAXATION 6 109 4 511 35,42 9 933 ATTRIBUTABLE TO OUTSIDE
SHAREHOLDERS - 14 (27)
ATTRIBUTABLE PROFIT 6 109 4 525 35,01 9 906 ORDINARY DIVIDENDS 2 320 2 320 4 640 RETAINED SURPLUS 3 789 2 205 5 266 EARNINGS PER SHARE 10,5 8,4 25,0 17,48 DIVIDEND PER SHARE 4,0 4,0 8,0 NUMBER OF SHARES IN
ISSUE ("N'S & ORDS") 58 005 200 58 005 200 58 005 200 NUMBER OF SHARES IN ISSUE WEIGHTED
AVERAGE ("N'S & ORDS") 58 005 200 53 610 606 56 647 170 NET ASSET VALUE PER
SHARE 78,9 62,7 25,84 68,46 CONSOLIDATED BALANCE SHEET CAPITAL EMPLOYED
SHAREHOLDERS' FUNDS 45 818 36 345 39 709 LONG-TERM LIABILITIES 25 973 1 696 24 057 71 791 38 041 63 766 EMPLOYMENT OF CAPITAL
FIXED ASSETS AND TRADEMARKS 45 164 18 716 44 244 OTHER 7 280 - 1 401 DEFERRED TAXATION 13 (325) 13
CURRENT ASSETS 43 157 33 622 38 458 TOTAL ASSETS 95 614 52 013 84 116 CURRENT LIABILITIES 23 823 13 972 20 350 71 791 38 041 63 766 CONSOLIDATED CASH FLOW STATEMENT OPERATING PROFIT BEFORE
WORKING CAPITAL CHANGES 9 780 7 799 17 374 WORKING CAPITAL CHANGES (484) (4 014) (6 202) CASH GENERATED BY OPERATIONS 9 296 3 785 11 172 NET INTEREST AND FOREX 929 384 700
TAXATION PAID (1 705) (1 530) (5 128) DIVIDENDS PAID (2 400) (2 103) (4 369) NET CASH INFLOW FROM
OPERATING ACTIVITIES 6 120 536 2 375 CASH FLOW FROM INVESTING
ACTIVITIES (6 735) (3 941) (11 007) CASH FLOW FROM FINANCING
ACTIVITIES (338) 12 483 13 743 INCREASE IN CASH RESOURCES (953) 9 078 5 111 CASH RESOURCES AT BEGINNING
OF YEAR 7 128 2 017 2 017 CASH RESOURCES AT END
OF PERIOD 6 175 11 095 7 128 COMMENTS
THE GROUP ACHIEVED RESULTS AHEAD OF THE BUDGET SET FOR THE HALF YEAR. THE EARNINGS GROWTH SURPASSED THE BUDGETED INCREASE OF 30% TO RECORD AN INCREASE OVER THE PREVIOUS HALF-YEAR OF 35%. THE SIX MONTHS TO COME ARE TRADITIONALLY THE STRONGER TRADING MONTHS IN THE YEAR AND WITH THE EXPECTED STORE ROLL OUT PROGRAMME FOR THE YEAR MEETING ITS TARGET, THIS WILL FURTHER AFFECT PROFITS POSITIVELY.
THE GROUP WAS VERY PROUD TO HAVE OPENED ITS 250TH STEERS OUTLET DURING THE REPORTING PERIOD AS WELL AS THE 50TH DEBONAIRS OUTLET AND NOW HAS MORE THAN 300 OUTLETS BETWEEN THESE TWO BRANDS.
THE GROUP'S OPERATING MARGIN AT 8,5% IS IN LINE WITH EXPECTATIONS, WHICH ACCORD CURRENTLY WITH THE GROUP'S BUSINESS MIX.
PROFIT ATTRIBUTABLE TO SHAREHOLDERS INCREASED BY 35% (1997 - R4 525 000) TO R6 108 658 SURPASSING BUDGETED GROWTH BY 5%. EARNINGS PER SHARE ON A FULLY DILUTED BASIS INCREASED SIMILARLY BY 35% TO 10,5C (1997 - 7,8C).
ALL THE BUSINESS AREAS PERFORMED WELL RELATIVE TO THE PREVIOUS SIX MONTHS. THE MAIN CONTRIBUTION TO EARNINGS WAS MADE ALMOST EQUALLY FROM FRANCHISE INCOME AND FROM THE CENTRAL KITCHEN OPERATIONS. FOREIGN EARNINGS FROM EXPORTS AND FROM THE GROUP'S OFFSHORE SUBSIDIARY CONTRIBUTED ONE THIRD OF THIS PERIOD'S EARNINGS. THE KWAZULU NATAL REGIONAL BUSINESS ACQUIRED ON 1 SEPTEMBER 1997, WHICH INCLUDED THE DEBONAIRS BRAND HAS PERFORMED ACCORDING TO BUDGET AND ATTAINED THE EARNINGS WARRANTED FOR THE FIRST TRADING PERIOD. THIS WILL RESULT IN THE LISTING OF ADDITIONAL SHARES IN DECEMBER FOLLOWING THE AUDIT OF THESE RESULTS AND THE JOHANNESBURG STOCK EXCHANGE APPROVAL FOR THE LISTING. CURRENT DEVELOPMENTS & HIGHLIGHTS
HIGHLIGHTS OF THE PERIOD WERE THE SIGNING OF LICENCES BY THE GROUP'S OFFSHORE SUBSIDIARY IN THE FOLLOWING AFRICAN COUNTRIES; ANGOLA, MALAWI, TANZANIA, UGANDA & ZAMBIA. ETHIOPIA FOLLOWED OUTSIDE THIS REPORTING PERIOD. PROSPECTS
WITH THE FIRST SIX MONTHS' STRONG PERFORMANCE AS A BASIS, THERE IS EVERY REASON TO EXPECT THAT THIS PERFORMANCE WILL BE MAINTAINED FOR THE FULL FINANCIAL YEAR. BESIDES BEING ON THE CONSTANT LOOK OUT FOR SUITABLE GROWTH AREAS, MANAGEMENT'S STEADY AND CONSTANT ATTENTION TO THE BASIC BUSINESS OF THE GROUP ENSURES THAT THIS PROVIDES A SOLID FOUNDATION FOR FUTURE GROWTH. CAUTIONARY ANNOUNCEMENT
FOLLOWING ON THE CAUTIONARY ANNOUNCEMENT OF 1 JULY 1998, SHAREHOLDERS ARE ADVISED THAT NEGOTIATIONS ARE IN PROGRESS WHICH, IF SUCCESSFUL, MAY HAVE AN EFFECT ON THE PRICES AT WHICH THE ORDINARY AND "N" ORDINARY SHARES IN STEERS TRADE ON THE JOHANNESBURG STOCK EXCHANGE.
ACCORDINGLY, BOTH ORDINARY AND "N" ORDINARY SHAREHOLDERS ARE ADVISED TO EXERCISE CAUTION IN DEALING IN THEIR SHARES. DECLARATION OF INTERIM DIVIDEND
NOTICE IS HEREBY GIVEN THAT AN INTERIM DIVIDEND NO 12 OF 4C PER ORDINARY SHARE AND 4C PER "N" ORDINARY SHARE HAS BEEN DECLARED ON FRIDAY,
2ND OCTOBER 1998, PAYABLE TO ALL SHAREHOLDERS REGISTERED IN THE BOOKS OF THE COMPANY AS AT CLOSE OF BUSINESS ON 14TH OCTOBER 1998. THE DIVIDEND WILL BE PAYABLE ON OR ABOUT THE 18TH OCTOBER 1998. ON BEHALF OF THE BOARD. D.H. PAPPADOPOULOS JOHANNESBURG 2 OCTOBER 1998 STEERS REGISTERED OFFICE 478 JAMES CRESCENT HALFWAY HOUSE MIDRAND, 1685 TRANSFER OFFICE OPTIMUM REGISTRARS 40 COMMISSIONER STREET 4TH FLOOR, EDURA HOUSE JOHANNESBURG, 2001
