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

STATEMENT BY THE CHAIRMAN AT THE ANNUAL MEETING OF TRUWORTHS

Release Date: 23/11/2000 11:39
Code(s): TRU
Wrap Text
PRESS RELEASE

STATEMENT BY THE CHAIRMAN, MICHAEL MARK, AT THE ANNUAL MEETING OF TRUWORTHS INTERNATIONAL LIMITED IN CAPE TOWN ON NOVEMBER 23, 2000
I'D LIKE TO GIVE YOU A PERSPECTIVE OF HOW THINGS ARE GOING AT TRUWORTHS INTERNATIONAL. THIS MAY PRE-EMPT SOME OF THE QUESTIONS YOU MAY HAVE ABOUT OUR COMPANY'S PROGRESS AND PERFORMANCE SINCE PUBLICATION OF OUR ANNUAL REPORT. IN THE ANNUAL REPORT, WE NOTED THAT PROJECTIONS FOR ECONOMIC GROWTH IN SOUTH AFRICA HAD BEEN DOWNSCALED. MORE RECENTLY, THERE HAVE BEEN MANY REPORTS THAT EMPHASISE TRADING CONDITIONS ARE DIFFICULT. A MUTED FESTIVE SEASON PERFORMANCE IS PREDICTED FOR RETAILERS. A LOT IS BEING SAID AND WRITTEN ABOUT OTHER DEMANDS ON CONSUMERS' DISPOSABLE INCOMES; CERTAINLY, FOR OUR PART, IT IS NOT EASY TO FORECAST WHAT SORT OF FESTIVE SEASON WE WILL HAVE. WE CAN REPORT, THOUGH, THAT OUR GROWTH STRATEGIES - FOR ADDITIONAL STORES, FRANCHISE EXPANSION, DEVELOPING FORMATS, NEW INITIATIVES AND FOR COST CONTAINMENT - ARE PROGRESSING ACCORDING TO PLAN. TO DATE SALES PERFORMANCE HAS BEEN VOLATILE, HOWEVER SALES OVER THE LAST FIVE WEEKS HAVE IMPROVED. SALES GROWTH FOR THE 5 MONTHS TO THE END OF NOVEMBER IS EXPECTED TO BE ABOUT 10%. OUR FOCUS ON INCREASING MARKET SHARE FOR WOMEN'S AND MEN'S FASHION AND ALSO ON IMPROVING PRODUCTIVITY IN TERMS OF SALES PER SQUARE METER AND PER FULL TIME EMPLOYEE APPEARS TO BE SUCCEEDING. WE ARE CONFIDENT OUR SUCCESSFUL FORMULA OF EXCITING PRODUCT OFFERINGS AND ATTRACTIVE STORES WILL CONTINUE TO ENSURE FURTHER IMPROVEMENT IN OUR CORE TRUWORTHS BUSINESS.
OPERATIONAL HIGHLIGHTS HAVE INCLUDED THE OPENING OF THE STATE-OF-THE-ART FASHION EMPORIUMS AT CANAL WALK IN CAPE TOWN AND MENLYN PARK IN PRETORIA. THESE MEGA STORES HAVE TRADED BEYOND EXPECTATIONS SO FAR AND HAVE MADE AN ENCOURAGING CONTRIBUTION TO A SALES PERFORMANCE THAT OVERALL IS ON BUDGET. IDENTITY, OUR CASH RETAILING BUSINESS, IS BEING EXPANDED ON SCHEDULE - WE WILL HAVE 22 STORES IN 2001 - AND IS TRADING WELL. SO TOO ARE OUR FRANCHISE OPERATIONS WHICH WILL GROW WITH NEW STORES IN LESOTHO, ABU DHABI AND MALAWI NEXT YEAR.
OUR NEW INITIATIVES - INCLUDING CELLPHONE AND RELATED SALES AND A MEASURED ENTRY INTO FINANCIAL SERVICES COVERING INSURANCE PRODUCTS AND SOON, PERSONAL LOANS - WILL CONTRIBUTE TO THE BOTTOM LINE. IN OUR MANAGEMENT OF COSTS, WE ARE TOUGHER ON DELINQUENT CREDIT. WE HAVE REDUCED ARREARS AS A PERCENTAGE OF THE TOTAL BOOK, RECOVERIES ARE SLOWLY IMPROVING AND COLLECTIONS ARE SATISFACTORY. WE HAVE GROWN OUR CASH BALANCES SINCE JUNE 2000 TO APPROXIMATELY R200 MILLION. WE ARE ALL MINDFUL OF THE VOLATILITY THAT HAS CHARACTERISED THE RETAIL SECTOR IN RECENT TIMES. AT THIS STAGE LAST YEAR MARKET WATCHERS WERE PREDICTING AN UPSURGE IN SALES - WHICH DIDN'T MATERIALISE. RIGHT NOW, OUR CORE BUSINESS REMAINS FOCUSED AND NICHED AND CONTINUES TO IMPROVE. BARRING THE UNFORESEEN, MANAGEMENT BELIEVE WE ARE STILL ON TRACK TO REPORT INCREASED EARNINGS IN THE YEAR AHEAD.

Share This Story