To view the PDF file, sign up for a MySharenet subscription.

STEINHOFF INTERNATIONAL AUDITED RESULTS

Release Date: 04/09/2000 17:05
Code(s): SHF
Wrap Text
STEINHOFF INTERNATIONAL HOLDINGS LTD

AUDITED RESULTS FOR THE TWELVE MONTHS ENDED 30 JUNE 2000 AN INTEGRATED GLOBAL LIFESTYLE SUPPLIER THAT MANUFACTURES, WAREHOUSES AND DISTRIBUTES HOUSEHOLD GOODS - ATTRIBUTABLE INCOME UP 139% - HEADLINE EARNINGS PER SHARE UP 93% - DIVIDENDS PER SHARE UP 45% CONSOLIDATED INCOME STATEMENT FOR THE YEAR ENDED 30 JUNE 2000
AUDITED AUDITED PRO FORMA
10 MONTHS 12 MONTHS 12 MONTHS
ENDED ENDED ENDED
30/06/99 30/06/00 30/06/99
NOTE 1 %
R'000 R'000 R'000 CHANGE
2 757 491 REVENUE 4 594 086 3 215 597 43 OPERATING EARNINGS BEFORE PROFIT ON DISPOSAL
265 687 OF FIXED ASSETS 535 485 291 929 83 PROFIT ON DISPOSAL OF - FIXED ASSETS 26 586 EARNINGS BEFORE DEPRECIATION, INTEREST
265 687 AND TAXATION 562 071 291 929 93
(49 099) DEPRECIATION (77 001) (57 750) 33 EARNINGS BEFORE INTEREST
216 588 AND TAXATION 485 070 234 179 107
(26 565) NET FINANCE CHARGES (50 276) (43 085) 17 EARNINGS BEFORE
190 023 TAXATION 434 794 191 094 128
(8 182) TAXATION (16 091) (11 517) 40
181 841 EARNINGS AFTER TAXATION 418 703 179 577 133 SHARE OF ASSOCIATED COMPANIES' RETAINED 2 195 INCOME 13 276 2 437 ATTRIBUTABLE TO OUTSIDE (1 421) SHAREHOLDERS 732 (811) INCOME ATTRIBUTABLE
182 615 TO SHAREHOLDERS 432 711 181 203 139 NUMBER OF SHARES IN
773 392 ISSUE ('000) 804 552 773 392 4 WEIGHTED AVERAGE NUMBER OF SHARES
662 839 IN ISSUE ('000) 785 043 662 839 18 ATTRIBUTABLE INCOME
182 615 (R'000) 432 711 181 203 139 HEADLINE EARNINGS
182 615 (R'000) 406 125 181 203 124 EARNINGS PER SHARE
28 (CENTS) 55 27 104 HEADLINE EARNINGS
28 PER SHARE (CENTS) 52 27 93 DIVIDEND PER SHARE
6,2 (CENTS) 9,0 6,2 45
NOTE 1: COMPARATIVES ARE BASED ON FIGURES EXTRACTED FROM THE AUDITED ANNUAL REPORT FOR THE TEN MONTHS ENDED 30 JUNE 1999 AND MANAGEMENT ACCOUNTS FOR JULY 1998 AND AUGUST 1998 PRIOR TO THE COMPANY BEING LISTED. STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2000 SHARE NON-DISTRI-
CAPITAL BUTABLE DISTRIBUTAL
AND PREMIUM RESERVES RESERVES TOTAL R'000 R'000 R'000 R'000 BALANCE AT BEGINNING
OF PERIOD 1 477 892 18 722 173 526 1 670 140 CURRENT YEAR ASSOCIATED
COMPANY INCOME 13 580 (13 580) 0 ASSOCIATED COMPANY PRIOR
YEAR RELEASE (608) 608 0 EARNINGS ATTRIBUTABLE TO
SHAREHOLDERS 432 711 432 711 NON-DISTRIBUTABLE RESERVE ARISING ON ACQUISITION
OF SUBSIDIARIES 6 170 6 170 INCREASE IN FOREIGN CURRENCY
TRANSLATION RESERVE 1 923 1 923 GOODWILL WRITTEN OFF
AGAINST SHARE PREMIUM (13 510) (13 510) DIVIDENDS PAID (13 364) (13 364) ISSUE OF SHARES 119 396 119 396 BALANCE AT END OF PERIOD 1 583 778 39 787 579 901 2 203 466 ABRIDGED CONSOLIDATED BALANCE SHEET AT 30 JUNE 2000
AUDITED AUDITED
30/06/00 30/06/99
R'000 R'000 CAPITAL EMPLOYED
ORDINARY SHAREHOLDERS' INTEREST 2 203 466 1 670 140
OUTSIDE SHAREHOLDERS' INTEREST 16 733 17 336
DEFERRED TAXATION 9 830 8 096
LONG-TERM LIABILITIES 203 375 117 253
2 433 404 1 812 825 EMPLOYMENT OF CAPITAL
FIXED ASSETS 1 522 783 1 297 231
INVESTMENTS AND LOANS 260 293 45 664
CURRENT ASSETS 2 387 624 1 545 734
TOTAL ASSETS 4 170 700 2 888 629
CURRENT LIABILITIES 1 737 296 1 075 804
- NET INTEREST-BEARING 438 248 231 181
- OTHER 1 299 048 844 623
2 433 404 1 812 825
NUMBER OF SHARES IN ISSUE ('000) 804 552 773 392 TANGIBLE NET ASSET VALUE PER SHARE
(CENTS) 274 216
GEARING RATIO (NET) (%) 29 21 ABRIDGED GROUP CASH FLOW STATEMENT FOR THE YEAR ENDED 30 JUNE 2000
AUDITED AUDITED
12 MONTHS 10 MONTHS
ENDED ENDED
30/06/00 30/06/99
R'000 R'000 OPERATING PROFIT BEFORE WORKING
CAPITAL CHANGES 429 328 226 563
NET CHANGES IN WORKING CAPITAL (407 814) (151 819)
CASH GENERATED FROM OPERATIONS 21 514 74 744
NET FINANCE COSTS (50, 276) (26 565) DIVIDENDS PAID (8 472)
TAXATION (9 560) 33 NET CASH (OUTFLOW)/INFLOW FROM
OPERATING ACTIVITIES (46 794) 48 212 NET CASH OUTFLOW FROM INVESTING
ACTIVITIES (539 330) (493 407) NET CASH INFLOW FROM FINANCING
ACTIVITIES 745 193 646 332 NET INCREASE IN CASH AND CASH
EQUIVALENTS 159 069 201 137 EFFECTS OF EXCHANGE RATE CHANGES ON
CASH AND CASH EQUIVALENTS (6 124) (63 237) CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD 137 900 CASH AND CASH EQUIVALENTS - END OF
PERIOD 290 845 137 900 COMMENTARY RESULTS
THE YEAR UNDER REVIEW HAS BEEN A CHALLENGING ONE FOR THE GROUP. THE IMPACT OF OUR CONSOLIDATION, ORGANIC GROWTH AND NEW INITIATIVES HAS PROVIDED RESULTS EXCEEDING EXPECTATIONS.
GROUP REVENUE GREW BY 43% FOR THE YEAR ENDED 30 JUNE 2000. THIS SIGNIFICANT GROWTH WAS ACHIEVED BY THE SMOOTH INTEGRATION OF CORNICK/AFCOL IN AFRICA, THE ACQUISITION OF KLOSE IN GERMANY AND NEW PRODUCTION FACILITIES COMING ON STREAM IN POLAND. OPERATING INCOME, BEFORE PROFIT ON THE SALE OF FIXED ASSETS AND FINANCE COSTS, INCREASED BY 96% TO R458 MILLION (1999: R234 MILLION).
OPERATING MARGIN IMPROVED TO 10% FOR THE PERIOD UNDER REVIEW. THIS ACHIEVEMENT, WITHIN 22 MONTHS OF LISTING, EXCEEDED THE GROUP'S STATED TARGET OF 10% WITHIN THREE YEARS FROM THE TIME OF LISTING.
FINANCE CHARGES INCREASED BY R7 MILLION TO FUND THE INCREASED WORKING CAPITAL REQUIREMENTS AND THE COST OF ACQUISITIONS MADE IN EUROPE. FOREIGN LONG-TERM DEBT IS DENOMINATED IN DEUTSCHE MARK AT VERY FAVOURABLE INTEREST RATES. INCOME ATTRIBUTABLE TO SHAREHOLDERS INCREASED BY 139% TO R433 MILLION (1999:R181 MILLION).
THE RELATIVELY LOW EFFECTIVE TAX CHARGE IS DUE MAINLY TO THE GROUP'S FAVOURABLE TAX DISPENSATIONS IN CENTRAL EUROPE. THE EFFECTIVE TAX RATE IS NOT ANTICIPATED TO CHANGE MATERIALLY IN THE FORESEEABLE FUTURE.
EARNINGS PER SHARE INCREASED BY 104% TO 55 CENTS (1999: 27 CENTS) WHILE HEADLINE EARNINGS PER SHARE INCREASED BY 93% TO 52 CENTS (1999: 27 CENTS). REVIEW OF OPERATIONS
THE RATIONALISATION OF STEINHOFF AFRICA'S BUSINESS UNITS WITH THOSE OF CORNICK/AFCOL HAS BEEN SUCCESSFULLY INTEGRATED. STEINHOFF EUROPE IS NOW STRUCTURED INTO THREE FOCUSED DIVISIONS, NAMELY UPHOLSTERY, CASE GOODS AND EXPORTS.
THE GROUP'S MAIN ACTIVITY AS AN INTEGRATED GLOBAL LIFESTYLE SUPPLIER IS NOW FOCUSED ON MANUFACTURING & WHOLESALING AND DISTRIBUTION. THE RELATIVE
CONTRIBUTION TO GROUP TURNOVER AND EARNINGS IS AS FOLLOWS:
CONTRI CONTRI-
EUROPE BUTION AFRICA BUTION TOTAL
RM % RM % RM
REVENUE 2 676 58 1 919 42 4 595
EARNINGS 238 55 195 45 433
AN AVERAGE EXCHANGE RATE OF R3,25: 1DM (1999 R3,41:1DM) WAS USED TO TRANSLATE FOREIGN CURRENCY INCOME AND EXPENDITURE INTO SOUTH AFRICAN RAND.
R576 MILLION (1999: R305 MILLION) OF AFRICA'S TURNOVER WAS EXPORTED TO EUROPE AND THE USA, AMOUNTING TO APPROXIMATELY 30% OF ITS ACTIVITIES. THERE ARE OPPORTUNITIES TO SUBSTANTIALLY INCREASE THESE EXPORTS IN THE YEARS AHEAD. CORPORATE ACTIVITY
THE GROUP HAS CONCLUDED AND IMPLEMENTED A NUMBER OF SIGNIFICANT TRANSACTIONS DURING THE YEAR UNDER REVIEW.
STEINHOFF EUROPE ACQUIRED THE KLOSE COLLECTION IN GERMANY WHICH INCLUDED THREE MODERN, HIGH-TECH FACTORIES IN POLAND. THIS ACQUISITION WILL EXPAND THE GROUP'S CASE GOODS PRODUCTION CAPABILITIES THROUGHOUT EUROPE. DURING JANUARY 2000, KLOSE HUNGARY, A SPECIALIST CHAIR FACTORY, WAS ALSO ACQUIRED. THIS ACQUISITION REPLACES THE CAPACITY LOST THROUGH THE CLOSURE OF BOMA IN ITALY.
STEINHOFF UK ACQUIRED FULL CONTROL OF SPEARHEAD FURNITURE IN THE UNITED KINGDOM (UK). SPEARHEAD FURNITURE IS OUR UK DISTRIBUTION COMPANY. WE ALSO ACQUIRED MACK-LINE FURNITURE. THESE ACQUISITIONS WILL ENHANCE OUR TRADING CAPABILITY IN THE UK.
STEINHOFF EUROPE EXERCISED ITS OPTION TO ACQUIRE FOUR POLISH UPHOLSTERY FACTORIES, RESULTING IN SUBSTANTIALLY INCREASING OUR UPHOLSTERY OUTPUT. STEINHOFF'S MARKET SHARE WITHIN THE EUROPEAN COMMUNITY CONTINUES TO GROW. STEINHOFF POLAND ACQUIRED PRUDNIK FROM THE POLISH GOVERNMENT IN WHAT WAS ONE OF THE LAST PRIVATISATION DEALS. WE EXPECT A MEANINGFUL CONTRIBUTION TO OPERATING PROFITS FROM PRUDNIK IN THE COMING YEAR.
STEINHOFF AFRICA OBTAINED A STRATEGIC 10% SHAREHOLDING IN UNITRANS LIMITED THROUGH ACQUISITION OF SHARES FROM MURRAY & ROBERTS LIMITED. AND A FURTHER SUBSCRIPTION OF SHARES.
STEINHOFF AFRICA, THROUGH ROADWAY, FORMED A 50/50 JOINT VENTURE WITH UNITRANS TO FOCUS ALL HOUSEHOLD GOODS LOGISTICS. SPECIALISATION AND CRITICAL MASS ARE EXPECTED TO MAKE THIS ENTITY A HIGHLY EFFICIENT DISTRIBUTION UNIT FOR THE HOUSEHOLD GOODS INDUSTRY LOCALLY.
STEINHOFF AFRICA AND THE ABOVEMENTIONED JOINT VENTURE WITH UNITRANS HAVE INVESTED IN AN E-COMMERCE MARKETPLACE FOR HOUSEHOLD GOODS. THIS IS EXPECTED TO BECOME A MEANINGFUL CONTRIBUTOR TO INCOME IN THE YEARS AHEAD.
STEINHOFF AFRICA DISPOSED OF ITS ENTIRE PROPERTY PORTFOLIO TO AN INSTITUTIONAL INVESTOR, REALISING A CAPITAL PROFIT OF R26,5 MILLION. THE RATIONALE FOR THIS IS THAT THE GROUP WILL EARN A MUCH HIGHER RETURN FROM THE CAPITAL UNLOCKED THROUGH USING THE FUNDS WITHIN THE BUSINESS. PROSPECTS
THE GROUP WILL CONTINUE TO INCREASE ITS MARKET SHARE IN A HIGHLY FRAGMENTED EUROPEAN FURNITURE MARKET AND CAPITALISE ON THE RATIONALISATION OF THE SOUTHERN AFRICAN FURNITURE MARKET.
OUR ENTRY INTO THE UK AND AUSTRALIA PRESENTS FURTHER GROWTH OPPORTUNITIES IN THE COMING YEAR.
OUR STRATEGIC ALLIANCE WITH COMPAREX HOLDINGS LIMITED (A MAJOR INTERNATIONAL IT COMPANY) AND UNITRANS LIMITED (AN ASSOCIATED LOGISTICS GROUP) AS WELL AS OTHER MAJOR INDUSTRY PLAYERS HAS RESULTED IN THE CREATION OF AN ELECTRONIC
MARKETPLACE FOR HOUSEHOLD GOODS. THIS WILL POSITION US AS A FORCE IN THE E-COMMERCE FIELD AND IN THE FULFILMENT OF HOUSEHOLD GOODS DISTRIBUTION. MANAGEMENT IS CONFIDENT THAT THE GROUP WILL CONTINUE TO ACHIEVE ABOVE-AVERAGE EARNINGS GROWTH IN THE COMING YEAR.
CAPITALISATION SHARE AWARD AND DIVIDEND DECLARATION
THE BOARD HAS RESOLVED TO AWARD CAPITALISATION SHARES TO SHAREHOLDERS
REGISTERED AT THE CLOSE OF BUSINESS ON FRIDAY, 6 OCTOBER 2000 ("THE SHARE AWARD"). SHAREHOLDERS WILL BE ENTITLED TO DECLINE THE SHARE AWARD OR ANY PART THEREOF AND INSTEAD ELECT TO RECEIVE A CASH DIVIDEND OF 9 CENTS PER SHARE. THE TERMS OF THE SHARE AWARD WILL BE ANNOUNCED ON MONDAY, 2 OCTOBER 2000 AND DOCUMENTATION RELATING THERETO WILL BE POSTED ON FRIDAY, 13 OCTOBER
2000.ELECTIONS IN RESPECT OF THE CASH DIVIDEND WILL OPEN ON FRIDAY, 13 OCTOBER 2000 AND CLOSE ON FRIDAY, 3 NOVEMBER 2000. APPOINTMENT
APPOINTMENT OF JO GROVE (EXECUTIVE CHAIRMAN OF UNITRANS LIMITED) AS
NON-EXECUTIVE DIRECTOR TO THE BOARD OF STEINHOFF INTERNATIONAL HOLDINGS LIMITED BY ORDER OF THE BOARD SJ GROBLER COMPANY SECRETARY 4 SEPTEMBER 2000
REGISTRATION NUMBER: 1998/003951/06 REGISTERED OFFICE: 28 6TH STREET, WYNBERG, 2090 TEL (011) 445 3000 FAX (011) 445 3135 TRANSFER SECRETARIES: MERCANTILE REGISTRARS LIMITED, FIRST NATIONAL HOUSE, 11 DIAGONAL STREET, JOHANNESBURG, 2001
DIRECTORS: BRUNO STEINHOFF* (EXECUTIVE CHAIRMAN), DIRK ACKERMAN, CLAAS DAUN , JO GROVE, MARKUS JOOSTE*, LEN KONAR, FRIKKIE NEL*, NORBERT STEINHOFF* , DANIE VAN DER MERWE* (*EXECUTIVE DIRECTOR GERMAN CITIZEN) COMPANY SECRETARY: SJ GROBLER WWW.STEINHOFFINTERNATIONAL.COM

Share This Story