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STEERS HOLDINGS LIMITED
TURNOVER +44,6%
EARNINGS PER SHARE 22,7%
ATTRIBUTABLE PROFIT +32,2%
DIVIDEND PER SHARE 9 CENTS
AUDITED RESULTS FOR THE YEAR ENDED 28 FEBRUARY 1999 AND DIVIDEND DECLARATION
THE GROUP'S AUDITED FINANCIAL RESULTS FOR THE TWELVE MONTHS ENDED 28 FEBRUARY
1999 ARE AS FOLLOWS:
CONSOLIDATED INCOME STATEMENT
1999 1998 %
R000'S R000'S CHANGE
TURNOVER 198 837 137 468 44,6
OPERATING PROFIT 18 804 14 442 30,2
NET INTEREST RECEIVED 560 700
PROFIT BEFORE TAXATION 19 364 15 142 27,9
TAXATION 6 381 5 209
PROFIT AFTER TAXATION 12 983 9 933 30,7
ATTRIBUTABLE TO OUTSIDE SHAREHOLDERS 114 (27)
ATTRIBUTABLE PROFIT 13 097 9 906 32,2
ORDINARY DIVIDENDS 5 425 4 640
RETAINED SURPLUS 7 672 5 266
EARNINGS PER SHARE 21,45 17,48 22,7
DIVIDEND PER SHARE 9,0 8,0 12,5
NUMBER OF SHARES IN ISSUE ACTUAL 62 088 106 58 005 200
NUMBER OF SHARES IN ISSUE
WEIGHTED AVERAGE 61 046 952 56 647 170
NET ASSET VALUE PER SHARE 86,70 68,46 26,6
CONSOLIDATED BALANCE SHEET
CAPITAL EMPLOYED
SHAREHOLDER'S FUNDS 53 828 39 709
DEFERRED TAX 454 -
LONG - TERM LIABILITIES 15 335 24 057
69 817 63 766
EMPLOYMENT OF CAPITAL
FIXED ASSETS AND TRADEMARKS 57 484 44 244
OTHER 5 468 1 401
DEFERRED TAX - 13
CURRENT ASSETS 43 231 38 458
TOTAL ASSETS 106 183 84 116
CURRENT LIABILITIES 36 566 20 350
69 617 63 766
CONSOLIDATED CASH FLOW STATEMENT
OPERATING PROFIT BEFORE WORKING
CAPITAL CHANGES 23 324 17 374
WORKING CAPITAL CHANGES (5 055) (6 202)
CASH GENERATED BY OPERATIONS 18 269 11 172
NET INTEREST RECEIVED 560 700
TAXATION PAID (6 844) (5 128)
DIVIDENDS PAID (4 382) (4 369)
NET CASH INFLOW FROM OPERATING
ACTIVITIES 7 603 2 375
CASH FLOW FROM INVESTING ACTIVITIES (21 827) (11 007)
CASH FLOW FROM FINANCING ACTIVITIES 4 890 13 743
INCREASE IN CASH RESOURCES (9 334) 5 111
CASH RESOURCES AT BEGINNING OF YEAR 7 128 2 017
CASH RESOURCES AT END OF YEAR (2 206) 7 128
STEERS REGISTERED OFFICE
478 JAMES CRESCENT
HALFWAY HOUSE
MIDRAND, 1685
TRANSFER OFFICE
COMPUTERSHARE SERVICES LIMITED
40 COMMISSIONER STREET
4TH FLOOR, EDURA HOUSE
JOHANNESBURG, 2001
DECLARATION OF DIVIDEND
NOTICE IS HEREBY GIVEN THAT A FINAL DIVIDEND NO. 13 OF 5 CENTS PER ORDINARY
SHARE AND 5 CENTS PER "N" ORDINARY SHARE HAS BEEN DECLARED FOR THE YEAR ENDED
28 FEBRUARY 1999 TO ALL SHAREHOLDERS REGISTERED ON 11 JUNE 1999. THE DIVIDEND
WILL BE PAYABLE ON OR ABOUT THE 18 JUNE 1999.
ON BEHALF OF THE BOARD
D.H. PAPPADOPOULOS
JOHANNESBURG
6 MAY 1999
COMMENTS
MESSAGE FROM CEO
OUR MISSION AS A GROUP HAS BEEN AND CONTINUES TO BE, BASED ON BUILDING
RESPECTED BRANDS THROUGH QUALITY PRODUCTS, IN AN EFFORT TO MEET OUR CONSUMERS'
NEEDS AND EXPECTATIONS AND DELIVER REASONABLE RETURN ON INVESTMENT THROUGH
SOUND BUSINESS PRINCIPLES TO OUR SHAREHOLDERS. I STRONGLY BELIEVE THAT ONCE
AGAIN WE ARE ABLE TO STAND BY THESE PRINCIPLES AND DELIVER ALL THAT WE INTENDED
FINANCIAL RESULTS
FOR THE FIFTH CONSECUTIVE YEAR SINCE LISTING IN 1994, THE DIRECTORS ARE PLEASED
TO ANNOUNCE GROWTH OF OVER 30% IN ATTRIBUTABLE INCOME FOR THE YEAR ENDED 28
FEBRUARY 1999.
THIS YEARS TURNOVER INCREASED BY 44,6% FROM R137,4 MILLION TO R198,8 MILLION
RESULTING IN A 32,2% INCREASE IN ATTRIBUTABLE PROFIT TO R13,1 MILLION.
EPS INCREASED BY 22,7% TO 21,45 CENTS PER SHARE AFTER TAKING INTO ACCOUNT
ADDITIONAL SHARES ISSUED DURING THE YEAR. THE MAJORITY OF THESE SHARES WERE
ISSUED AS PART PAYMENT FOR THE ACQUISITION OF THE DEBONAIRS PIZZA TRADEMARK AND
THE STEERS KZN LICENCE AGREEMENT.
DIVIDENDS OF 9 CENTS PER SHARE HAVE BEEN DECLARED FOR THE YEAR UNDER REVIEW,
INCREASING THE DIVIDEND COVER SLIGHTLY IN ORDER TO ENABLE THE GROUP TO MEET
IT'S FUTURE COMMITMENTS.
ACQUISITIONS & JOINT VENTURES
THE COMPANY ACQUIRED 100% OF THE ISSUED SHARE CAPITAL OF POUYOUKAS FOODS (PTY)
LTD ON THE 1 SEPTEMBER 1998, A COMPANY INVOLVED IN THE PURCHASE, MANUFACTURE
AND DISTRIBUTION OF HIGH QUALITY HEALTH GOODS AND RELATED PRODUCTS.
DURING THE YEAR, THE GROUP ENTERED INTO A JOINT VENTURE WITH "OCEAN BASKET" TO
DEVELOP A NEW FAST FOOD BRAND OFFERING FISH & SEAFOOD TO THE ENTIRE FAMILY.
"FISHAWAYS" WILL OFFER THE CONSUMER A COMPLETE AND NUTRITIOUS MEAL, AT THE SAME
TIME DELIVERING EXCELLENT VALUE FOR MONEY. THE FIRST "FISHAWAYS" OUTLET IS
EXPECTED TO OPEN SHORTLY, WITH A FURTHER 10 FORECAST FOR THE REMAINDER OF THE
YEAR.
FRANCHISE OPERATIONS
THE LAST TWELVE MONTHS HAVE WITNESS THE SUCCESSFUL OPENING OF 58 NEW STEERS
OUTLETS AND 40 NEW DEBONAIRS PIZZA OUTLETS, GIVING THE GROUP A TOTAL OF 277
STEERS AND 75 DEBONAIRS PIZZA OUTLETS.
EXPANSION INTO AFRICA HAS CONTINUED AT A STRONG RATE, WITH 10 NEW OUTLETS
OPENED DURING THE FINANCIAL YEAR UNDER REVIEW, BRINGING THE TOTAL NUMBER OF
OUTLETS IN AFRICA TO 27 (23 STEERS AND 4 DEBONAIRS PIZZA), 14 NEW STEERS
OUTLETS AND 8 NEW DEBONAIRS PIZZA OUTLETS HAVE BEEN BUDGETED TO OPEN IN AFRICA
FOR THE COMING YEAR. THE GROUPS INTERNATIONAL OPERATIONS NOW CONTRIBUTE 21,5%
OF THE GROUP'S ATTRIBUTABLE PROFIT.
RETAIL PRODUCTS
SALES OF STEERS RETAIL SAUCES INCREASED BY 15,4% TO R15,4 MILLION. AS A RESULTS
OF THE SHORTAGE OF MANUFACTURING CAPACITY THE GROUP COMMISSIONED A NEW
PRODUCTION FACILITY AT A COST OF R1,5 MILLION. THE INCREASED CAPACITY,
TOGETHER WITH INCREASED EXPORT OPPORTUNITIES AND THE CONTRIBUTION EXPECTED FROM
THE POUYOUKAS BRAND, IS EXPECTED TO RESULT IN A SIGNIFICANT GROWTH IN EARNINGS
FROM THE RETAIL OPERATIONS.
PROSPECTS
WITH THE CONTINUED DEMAND FOR NEW FRANCHISE OUTLETS, WE FORESEE - GIVEN NO
MAJOR CHANGES IN THE LOCAL ECONOMY - THAT THE GROUP WILL CONTINUE OVER THE NEXT
THREE YEARS TO GROW AND PRODUCE RESULTS IN LINE WITH THOSE OF THE LAST FIVE
YEARS. THE DECLINE IN INTEREST RATES WILL RESULT IN HIGHER PROFITABILITY AT
STORE LEVEL AND ALSO ENCOURAGE THE DEVELOPMENT OF NEW BUSINESS. WITH NEW EXPORT
INITIATIVES AND THE OPENING OF FRANCHISED OUTLETS IN AFRICA AND OVERSEAS, IT IS
EXPECTED THAT THE GROUP WILL BENEFIT FROM INCREASING POPULARITY OF BOTH THE
STEERS AND DEBONAIRS PIZZA BRANDS AS WELL AS THE STEERS AND POUYOUKAS FOODS
RETAIL PRODUCTS.
YEAR 2000 COMPLIANCE
THE GROUP HAS IMPLEMENTED A YEAR 2000 COMPLIANCE PROGRAMME THROUGHOUT ALL IT'S
OPERATIONS. THE PROGRAMME INVOLVES THE UPGRADING OF ALL HARDWARE, SOFTWARE AND
INFORMATION TECHNOLOGY RELATED PRODUCTS, AS WELL AS DETAILED TESTING THEREOF.
THE COSTS INCURRED TO DATE AND COSTS TO BE INCURRED ARE NOT EXPECTED TO BE
MATERIAL.
MANAGEMENT DOES NOT EXPECT ANY MATERIAL OPERATIONAL DIFFICULTIES TO ARISE AS A
RESULT OF THE PROBLEMS ASSOCIATED WITH THE ADVENT OF THE YEAR 2000.
YEAR 2000 COMPLIANCE TESTING IS EXPECTED TO BE COMPLETED BY JULY 1999.
EVENTS SUBSEQUENT TO YEAR-END
DUE TO THE UNPRECEDENTED SUCCESS AND GROWTH OF DEBONAIRS PIZZA, THE GROUP WAS
ABLE TO FINALISE THE PURCHASE CONSIDERATION FOR THE ACQUISITION OF THE
DEBONAIRS PIZZA TRADEMARK AND THE STEERS KWAZULU NATAL LICENCE AGREEMENT 18
MONTHS AHEAD OF SCHEDULE. ACCORDINGLY, THE TOTAL OUTSTANDING AMOUNT OF R15 838
785 WILL BE PAYABLE IN CASH ON 1 JULY 1999 SHOULD THE RELEVANT PORTION OF THE
OF WARRANTED PROFITS BE MET.
J.L. HALAMANDRES P.HALAMANDARIS
CHIEF EXECUTIVE OFFICER CHAIRMAN
MIDRAND
24 MAY 1999
PRESS RELEASE
STEERS HOLDINGS PRESENT MORE 'TASTY' RESULTS TO SHAREHOLDERS
TODAY, STEERS HOLDINGS LIMITED ANNOUNCED ITS ANNUAL RESULTS - POSTING EARNINGS
ABOVE 30% FOR THE FIFTH CONSECUTIVE YEAR SINCE LISTING IN 1994. RESULTS FOR THE
YEAR ENDED FEBRUARY 1999 SHOW IMPRESSIVE GROWTH ON THE 1998 FIGURES.
ATTRIBUTABLE INCOME IS UP 32.2% AND EARNINGS PER SHARE HAVE INCREASED BY 22.7%
ON A TURNOVER INCREASE OF 44.6%. THESE RESULTS REINFORCE MANAGEMENT'S PROMISE
TO RETAIN POSITIVE EARNINGS DESPITE THE CURRENT ECONOMIC CLIMATE. "THE FAST
FOOD MARKET IS HIGHLY COMPETITIVE, PARTICULARLY WITH THE INTRODUCTION OF
INTERNATIONAL BRANDS AND TECHNOLOGY. WE DO NOT VIEW THIS NEW COMPETITION AS A
THREAT, BUT RATHER AS A PLATFORM AGAINST WHICH TO MEASURE OURSELVES. WE HAVE
ESTABLISHED STEERS AS A SUCCESSFUL BRAND AND INVESTORS CAN EXPECT SOLID RETURNS
FROM FUTURE ORGANIC AND STRATEGIC ACQUISITIONAL GROWTH WITHIN A CAREFULLY
DEVISED AND FOCUSED STRATEGY," SAYS JOHN HALAMANDRES, CHIEF EXECUTIVE OFFICER,
STEERS HOLDINGS LIMITED.
THE GROUP HAS ADOPTED A PROVEN FORMULA FOR ITS CONTINUED SUCCESS, INCLUDING
DIVERSIFIED SOURCES OF INCOME, EXTENSIVE MANAGEMENT EXPERIENCE, A HANDS-ON
APPROACH, STRONG SUPPORT OF THE FRANCHISEES AND THE COMBINATION OF AN
ESTABLISHED TOP BRAND IN STEERS WITH A FAST GROWING NON-COMPETITIVE PREMIER
BRAND IN DEBONAIRS PIZZA.
ORGANIC GROWTH AND GROWTH THROUGH COMPLEMENTARY ACQUISITIONS HAS REMAINED A
FOCAL POINT OF THE GROUP'S STRATEGY. IN LINE WITH THE POLICY OF FOCUSSING ON
THE GROUP'S CORE ACTIVITIES, SEVERAL CHANGES TO THE MAKE-UP OF THE GROUP HAVE
BEEN MADE. THESE INCLUDE FINALISING THE TERMS OF ACQUISITION OF DEBONAIRS PIZZA
A YEAR AHEAD OF SCHEDULE AND RELINQUISHING INVOLVEMENT IN THE MIGHTY PIES AND
LONGHORN GROUP BRANDS. IN ADDITION, STEERS HOLDINGS HAS ENTERED INTO A
JOINT-VENTURE WITH OCEAN BASKET TO LAUNCH A HEALTHY, YET TASTY, FISH TAKE-AWAY
BRAND, TO ENSURE THAT WE STAY AHEAD OF COMPETITIVE TRENDS. THE FIRST OF THESE
NEW OUTLETS, FISHAWAYS, IS TO OPEN IN MAY 1999.
HALAMANDRES CONTINUES, "OUR PERFORMANCE OVER THE PAST FINANCIAL YEAR HAS BEEN
EXTREMELY PLEASING. THE STEERS GROUP, WHICH HAS GROWN FROM STRENGTH TO
STRENGTH, IS THE LEADER IN THE SOUTH AFRICAN FAST FOOD INDUSTRY. WE EXPECT TO
CONTINUE THIS GROWTH THROUGH QUALITY PRODUCE, STRATEGIC SITE POSITIONING, FIRST
CLASS SERVICE AND STRONG MARKETING."
AT END FEBRUARY 1999, THE GROUP OPERATED 254 STEERS OUTLETS IN SOUTH AFRICA AND
23 IN AFRICA. DEBONAIRS PIZZA HAD 71 OUTLETS IN SOUTH AFRICA AND 4 IN AFRICA.
IT IS EXPECTED THAT A FURTHER 30 STEERS OUTLETS WILL BE OPENED IN SOUTH AFRICA
AND 14 IN AFRICA DURING THE FORTHCOMING YEAR. DEBONAIRS PIZZA WILL IN TURN OPEN
35 OUTLETS IN SOUTH AFRICA AND 8 IN AFRICA DURING THE FORTHCOMING YEAR.
ENDS
WRITTEN AND DISTRIBUTED BY : ARCAY FINANCIAL COMMUNICATIONS
ON BEHALF OF: STEERS HOLDINGS LIMITED
FURTHER INFORMATION: JANET COPPIN
TEL : 27 11 480 8555
FAX : 27 11 480 8556
CELL : 083 456 3904
E-MAIL : COPPJ@ARCAY.CO.ZA
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