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DISTRIBUTION AND WAREHOUSING NETWORK LIMITED ACHIEVES ANNUAL SALES OF OVER

Release Date: 18/08/2004 17:58
Code(s): DAW
Wrap Text

DISTRIBUTION AND WAREHOUSING NETWORK LIMITED ACHIEVES ANNUAL SALES OF OVER R1 BILLION DISTRIBUTION AND WAREHOUSING NETWORK LIMITED SHARE CODE: DAW ISIN: ZAE000018834 18 August 2004 Distribution and Warehousing Network Limited ("DAWN"), the leading distributor and supplier of quality plumbing, hardware and related materials to the retail sector of the building and construction industries, today announced its results for the year ended 30 June 2004. DAWN is listed in the Construction and Building Materials sector of the JSE Securities Exchange South Africa. Turnover from continuing operations increased by 13,9% with annual sales exceeding R1 billion. This result was achieved without any growth from acquisitions, as focus was applied to consolidation of existing businesses. Operating profit from continuing operations increased by 30,8% to R62,5 million. Operating profit as a percentage of turnover increased from 5,2% to 6%, whilst profit before tax of R71 million (2003: R42 million) is 72% higher. Headline earnings per share increased by 63,3% to 30,5 cents. The Group"s market capitalisation increased from R174 million to R405 million as at 30 June 2004. A capital distribution of 7,5 cents per ordinary share has been recommended by the DAWN board, subject to shareholders" approval. The above average performance was achieved as the Group is operating in a favourable market environment, which resulted in buoyant trading conditions. As a consequence, two important milestones were achieved, namely monthly sales in excess of R100 million and annual sales of over R1 billion. After the year-end, DAWN acquired a 76% interest in Amalgamated Fasteners and Fittings Group (Pty) Limited ("AFF"), effective from 1 July 2004, at a P/E ratio of 4 for a maximum purchase consideration of R15,2 million, payable over two years on a warranted future earnings basis. AFF is involved in the wholesale distribution of hardware fittings and components for the cabinet industry, on a national basis. DAWN acquired a 78% shareholding in Cobra, at a purchase consideration expected to amount to R145 million for 100%, effective 1 January 2005 at the latest, subject to certain suspensive conditions. These acquisitions are in line with management"s objective of making acquisitions that further enhance the product and service scope of the Group, both locally as well as in selected African countries. DAWN anticipates the building, construction and property sectors to continue its upward trend in the foreseeable future, especially in view of the latest reduction in interest rates. Benefits from the AFF and Cobra acquisitions should also become evident in the next year. As a result the Group is well positioned to continue its strong improvement in earnings. The issue of Black Economic Empowerment is also being addressed as a matter of great importance and urgency and the Group expects to make an announcement in this regard in the near future. Derek Tod, chief executive officer of DAWN, commented: "The DAWN management team delivered an exceptional performance in producing these results. At DAWN, we believe our business is based on people and we value the contribution made to these results." - ends - For further information please contact: Derek Tod Distribution and Warehousing Network Limited Tel: 011 622 6680 Cell: 082 805 8230 Jan Beukes Distribution and Warehousing Network Limited Tel: 011 622 6680 Cell: 083 641 0011 Irene Botha Basco Communications Tel: 011 867 0500 Cell: 083 325 8388 Date: 18/08/2004 05:58:12 PM Supplied by www.sharenet.co.za Produced by the JSE SENS Department

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