Wrap Text
HWW - Hardware Warehouse Limited - Unaudited interim results for the six
months ended 31 December 2010
Hardware Warehouse Limited
Incorporated in the Republic of South Africa
(Company registration no: 2007/004302/06)
Share code: HWW ISIN: ZAE000104253
("Hardware Warehouse" or "the Group")
UNAUDITED INTERIM RESULTS
For the six months ended 31 December 2010
Group revenue up 10.22%
Group headline earnings per share is 8.49 cents
Hardware Warehouse business revenue up 16.29%
Hardware Warehouse business profit before tax up 57.93%
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the six months ended 31 December 2010
Unaudited Unaudited Audited
six six 12 months
months to months to ended
31 31 30 June
December December 2010
2010 % change 2009
R`000 R`000 R`000
Revenue 219 223 10.22 198 894 380 764
Cost of sales (176 360) 10.88 (159 054) (308 652)
Gross profit 42 863 7.59 39 840 72 112
Other operating income 592 167.87 221 479
Administration expenses (1 617) 37.97 (1 172) (3 202)
Personnel costs (18 243) 5.84 (17 237) (34 659)
Other operating
expenses (17 969) (2.33) (18 397) (36 868)
Profit / (Loss) from
operations 5 626 72.84 3 255 (2 138)
Investment income 397 3.93 382 635
Finance costs (2 685) (19.18) (3 322) (5 649)
Profit / (Loss) before
taxation 3 338 959.68 315 (7 152)
Taxation 2 576 1 817.33 (150) (1 580)
Profit / (Loss) for the
period / year
attributable to equity
holders 5 914 3 484.24 165 (8 732)
Other comprehensive
income 40 (60.78) 102 173
Total comprehensive
income / (loss) for the
period / year
attributable to equity
holders 5 954 2 129.96 267 (8 559)
Earnings / (Loss) per 8.52 3 450.00 0.24 (12.58)
share (expressed in
cents per share)
Headline earnings /
(loss) per share
(expressed in cents per
share) 8.49 3 437.50 0.24 (11.41)
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
at 31 December 2010
Unaudited Unaudited Audited
at 31 at 31 at 30
December December June
2010 2009 2010
R`000 R`000 R`000
ASSETS
NON-CURRENT ASSETS
Property, plant and equipment 31 107 30 804 29 857
Goodwill 12 038 11 740 11 663
Related party loans 932 874 -
Deferred tax 5 140 1 892 878
49 217 45 310 42 398
CURRENT ASSETS
Inventories 73 236 68 324 66 634
Trade and other receivables 14 621 19 685 13 829
Cash and cash equivalents 3 049 151 3 780
90 906 88 160 84 243
TOTAL ASSETS 140 123 133 470 126 641
EQUITY AND LIABILITIES
EQUITY
Share capital 14 14 14
Share premium 9 300 9 300 9 300
Share based payment reserve 389 278 349
Retained earnings 23 428 26 411 17 514
33 131 36 003 27 177
LIABILITIES
NON-CURRENT LIABILITIES
Interest bearing borrowings 25 003 21 754 24 839
Related party loans 586 - 396
Deferred tax 143 - 84
25 732 21 754 25 319
CURRENT LIABILITIES
Interest bearing borrowings 3 173 3 375 3 339
Operating lease accruals 1 307 1 113 1 297
Taxation payable 1 380 2 185 2 594
Provisions 2 038 2 676 2 998
Related party loans 7 - 7
Trade and other payables 60 023 50 868 46 868
Bank overdraft 13 332 15 496 17 042
81 260 75 713 74 145
TOTAL LIABILITIES 106 992 97 467 99 464
TOTAL EQUITY AND LIABILITIES 140 123 133 470 126 641
NET ASSET VALUE PER SHARE (CENTS)
42.53 46.22 34.89
TANGIBLE NET ASSET VALUE PER SHARE
(CENTS) 27.08 31.15 19.92
TOTAL NET ASSET VALUE 33 131 36 003 27 177
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN
EQUITY
for the six months ended 31 December 2010
Treasury
Share share Share Treasury
capital capital premium shares
R`000 R`000 R`000 R`000
Balance at 1 July 2009 - Audited (2) 17 798 (8 498)
16
Total comprehensive profit for - - -
the period -
Total changes - - - -
Balance at 31 December 2009 - (2) 17 798 (8 498)
Unaudited 16
Total comprehensive loss for the - - -
period -
Total changes - - - -
Balance at 30 June 2010 - Audited (2) 17 798 (8 498)
16
Total comprehensive profit for - - -
the period -
Total changes - - - -
Balance at 31 December 2010 - (2) 17 798 (8 498)
Unaudited 16
Total Retained Share
share earnings based Total
capital payment equity
reserve
R`000 R`000 R`000 R`000
Balance at 1 July 2009 - Audited 9 314 26 246 176
35 736
Total comprehensive profit for - 165 102
the period 267
Total changes - 165 102 267
Balance at 31 December 2009 - 9 314 26 411 278
Unaudited 36 003
Total comprehensive loss for the - (8 897) 71
period (8 826)
Total changes - (8 897) 71 (8 826)
Balance at 30 June 2010 - Audited 9 314 17 514 349
27 177
Total comprehensive profit for - 5 914 40
the period 5 954
Total changes - 5 914 40 5 954
Balance at 31 December 2010 - 9 314 23 428 389
Unaudited 33 131
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
For the six months ended 31 December 2010
Unaudited Unaudited Audited
six six 12
months to months to months
31 31 ended
December December 30 June
2010 2009 2010
R`000 R`000 R`000
Profit / (Loss) before taxation 3 338 315 (7 152)
Adjustments for:
Depreciation of property, plant and
equipment 1 750 2 255 3 463
Impairment of goodwill - - 45
(Profit) / Loss on disposal of property,
plant and equipment (35) - 1 068
Investment income (397) (382) (635)
Finance costs 2 685 3 322 5 649
Increase in operating lease accruals 10 219 403
Increase in share based payment reserve
40 102 173
(Decrease) / Increase in provisions (960) (61) 261
Changes in working capital:
(Increase) / Decrease in inventories (6 602) 4 549 6 239
Increase in trade and other receivables
(792) (6 358) (502)
Increase / (Decrease) in trade and other
payables 13 155 2 624 (1 376)
Cash generated from operations 12 192 6 585 7 636
Investment income 397 382 635
Finance costs (2 685) (3 322) (5 649)
Taxation paid (2 841) (732) (655)
Net cash generated from operating
activities 7 063 2 913 1 967
Cash flows absorbed by investing
activities
Purchase of property, plant and equipment
and intangible assets (3 238) (2 423) (4 185)
Proceeds on disposal of property, plant
and equipment 273 - 465
Acquisition through business combinations
- - -
Goodwill paid on acquisition of
businesses (375) - -
Net cash absorbed by investing activities
(3 340) (2 423) (3 720)
Cash flows absorbed by financing
activities
(Decrease) / Increase in interest bearing
borrowings (2) (2 106) 943
Increase /(Decrease) in loans from
related parties 190 (1 791) (1 388)
Increase in loans to related parties (932) (874) -
Net cash absorbed by financing activities
(744) (4 771) (445)
Net increase / (decrease) in cash and
cash equivalents 2 979 (4 281) (2 198)
Cash and cash equivalents at the
beginning of the period / year (13 262) (11 064) (11 064)
Cash and cash equivalents at the end of
the period / year (10 283) (15 345) (13 262)
Current assets 3 049 151 3 780
Current liabilities (13 332) (15 496) (17 042)
(10 283) (15 345) (13 262)
CONDENSED COMPANY STATEMENT OF COMPREHENSIVE
INCOME
For the six months ended 31 December 2010
Unaudited Unaudited Audited
six six 12 months
months to months to ended
31 31 30 June
December December 2010
2010 % change 2009
R`000 R`000 R`000
Revenue 191 105 16.29 164 329 311 551
Cost of sales (154 251) 16.74 (132 136) (252 081)
Gross profit 36 854 14.48 32 193 59 470
Other operating income 439 3 035.71 14 311
Administration expenses (1 231) 5.03 (1 172) (2 095)
Personnel costs (14 946) 21.59 (12 292) (24 815)
Other operating
expenses (15 092) 8.63 (13 893) (27 398)
Profit from operations 6 024 24.21 4 850 5 473
Investment income 1 902 22.79 1 549 4 405
Finance costs (2 103) (22.46) (2 712) (4 793)
Profit before taxation 5 823 57.93 3 687 5 085
Taxation (1 647) 57.76 (1 044) (1 387)
Profit for the period /
year attributable to
equity holders 4 176 58.00 2 643 3 698
Other comprehensive
income 40 (60.78) 102 173
Total comprehensive
income for the period /
year attributable to
equity holders 4 216 53.59 2 745 3 871
CONDENSED COMPANY STATEMENT OF FINANCIAL POSITION
at 31 December 2010
Unaudited Unaudited Audited
at 31 at 31 at 30
December December June
2010 2009 2010
R`000 R`000 R`000
ASSETS
NON-CURRENT ASSETS
Property, plant and equipment 14 372 13 618 12 716
Investments 3 862 3 862 3 862
Goodwill 9 858 9 560 9 483
Related party loans 35 557 29 982 34 556
Deferred tax 108 200 158
63 757 57 222 60 775
CURRENT ASSETS
Inventories 63 075 54 499 51 579
Trade and other receivables 10 688 7 866 7 039
Cash and cash equivalents 2 783 151 3 661
76 546 62 516 62 279
TOTAL ASSETS 140 303 119 738 123 054
EQUITY AND LIABILITIES
EQUITY
Share capital 14 14 14
Share premium 9 300 9 300 9 300
Share based payment reserve 389 278 349
Retained earnings 35 978 30 747 31 802
45 681 40 339 41 465
LIABILITIES
NON-CURRENT LIABILITIES
Interest bearing borrowings 16 796 17 488 16 417
Related party loans 756 - 480
Deferred tax - - -
17 552 17 488 16 897
CURRENT LIABILITIES
Interest bearing borrowings 2 439 3 351 2 630
Operating lease accruals 1 082 1 035 1 106
Taxation payable 1 307 2 219 2 507
Provisions 2 038 2 676 2 998
Related party loans - - -
Trade and other payables 57 559 40 274 40 003
Bank overdraft 12 645 12 356 15 448
77 070 61 911 64 692
TOTAL LIABILITIES 94 622 79 399 81 589
TOTAL EQUITY AND LIABILITIES 140 303 119 738 123 054
NET ASSET VALUE PER SHARE (CENTS)
58.64 51.78 53.23
TANGIBLE NET ASSET VALUE PER SHARE
(CENTS) 45.99 39.51 41.06
TOTAL NET ASSET VALUE 45 681 40 339 41 465
CONDENSED COMPANY STATEMENT OF CHANGES IN EQUITY
for the six months ended 31 December 2010
Treasury
Share share Share Treasury
capital capital premium shares
R`000 R`000 R`000 R`000
Balance at 1 July 2009 - (2) 17 798 (8 498)
Audited 16
Total comprehensive profit for - - -
the period -
Total changes - - - -
Balance at 31 December 2009 - (2) 17 798 (8 498)
Unaudited 16
Total comprehensive profit for - - -
the period -
Total changes - - - -
Balance at 30 June 2010 - (2) 17 798 (8 498)
Audited 16
Total comprehensive profit for - - -
the period -
Total changes - - - -
Balance at 31 December 2010 - (2) 17 798 (8 498)
Unaudited 16
Total Retained Share
share earnings based Total
capital payment equity
reserve
R`000 R`000 R`000 R`000
Balance at 1 July 2009 - 9 314 28 104 176
Audited 37 594
Total comprehensive profit for - 2 643 102
the period 2 745
Total changes - 2 643 102 2 745
Balance at 31 December 2009 - 9 314 30 747 278
Unaudited 40 339
Total comprehensive profit for - 1 055 71
the period 1 126
Total changes - 1 055 71 1 126
Balance at 30 June 2010 - 9 314 31 802 349
Audited 41 465
Total comprehensive profit for - 4 176 40
the period 4 216
Total changes - 4 176 40 4 216
Balance at 31 December 2010 - 9 314 35 978 389
Unaudited 45 681
CONDENSED COMPANY STATEMENT OF CASH FLOWS
For the six months ended 31 December 2010
Unaudited Unaudited Audited
six six 12
months to months to months
31 31 ended
December December 30 June
2010 2009 2010
R`000 R`000 R`000
Profit / (Loss) before taxation 5 823 3 687 5 085
Adjustments for:
Depreciation of property, plant and
equipment 1 389 2 020 2 832
Impairment of goodwill - - 45
(Profit) / Loss on disposal of
property, plant and equipment (76) - 283
Investment income (1 902) (1 549) (4 405)
Finance costs 2 103 2 712 4 793
Increase in operating lease accruals (24) 141 212
Increase in share based payment
reserve 40 102 173
(Decrease) / Increase in provisions (960) (61) 261
Changes in working capital:
(Increase) / Decrease in inventories (11 496) 6 559 9 479
Increase in trade and other
receivables (3 649) (2 224) (1 397)
Increase / (Decrease) in trade and
other payables 17 556 (1 502) (1 773)
Cash generated from operations 8 804 9 885 15 588
Investment income 1 902 1 549 4 405
Finance costs (2 103) (2 712) (4 793)
Taxation paid (2 797) (593) (606)
Net cash generated from operating
activities 5 806 8 129 14 594
Cash flows absorbed by investing
activities
Purchase of property, plant and
equipment and intangible assets (3 237) (775) (1 231)
Proceeds on disposal of property,
plant and equipment 268 87 382
Acquisition through business
combinations - - -
Goodwill paid on acquisition of
businesses (375) - -
Net cash absorbed by investing
activities (3 344) (688) (849)
Cash flows absorbed by financing
activities
Increase / (Decrease) in interest
bearing borrowings 188 (1 372) (3 164)
Increase / (Decrease)in loans from
related parties 276 (2 815) (2 335)
Increase in loans to related parties (1 001) (6 902) (11 476)
Net cash absorbed by financing
activities (537) (11 089) (16 975)
Net increase / (decrease) in cash
and cash equivalents 1 925 (3 648) (3 230)
Cash and cash equivalents at the
beginning of the period / year (11 787) (8 557) (8 557)
Cash and cash equivalents at the end
of the period / year (9 862) (12 205) (11 787)
Current assets 2 783 151 3 661
Current liabilities (12 645) (12 356) (15 448)
(9 862) (12 205) (11 787)
NOTES TO THE CONDENSED CONSOLIDATED RESULTS
for the six months ended 31 December 2010
1. BASIS OF PREPARATION
The condensed interim consolidated financial results ("interim results") have
been prepared in accordance with International Financial Reporting Standards
("IFRS"), the Companies Act, 1973 (Act 61 of 1973), as amended, ("the Act")
and the Listings Requirements of JSE Limited ("Listings Requirements"). These
interim results contain the information required in terms of IAS 1 -
Presentation of Financial Statements and IAS 34 - Interim Financial Reporting.
The interim results incorporate accounting policies which have been
consistently applied with those in the Annual Financial Statements of the
Group for the year ended 30 June 2010.
The Board of Directors ("the Board") acknowledges its responsibility for the
preparation of the interim results in accordance with IFRS, the Act and the
Listings Requirements.
The interim results have not been audited or reviewed by the Group`s auditors.
2. COMMENTARY ON RESULTS
NATURE OF BUSINESS
The Group is divided into two main businesses being, Hardware Warehouse
Limited ("the Company" or "Hardware Warehouse Business") and the Plumbing and
Sanitary Ware Retailer ("Plumbing Business").
Hardware Warehouse Business
Hardware Warehouse Business, is a retailer of low cost building materials, and
operates mainly in the cash paying rural market.
Plumbing Business
During late 2008, the Group acquired the franchise rights to a portion of the
Eastern Cape for a plumbing and sanitary ware retailer ("Plumbing Business").
The target market of this Plumbing Business is the construction industry and
includes the extension of credit to the customer base.
The continuation of the macro-economic slow-down has seen an entrenchment of
negative factors within the construction and allied industries.
FINANCIAL PERFORMANCE
Consolidated Group revenue increased by 10.22% (2009: 20.02%) for the six
months, with the gross profit margin down by 0.48% (2009 down 4.39%).
Notwithstanding the negative effects on the Group by the Plumbing Business,
management is well pleased with the performance of the core underlying
Hardware Warehouse Business of retailing building materials.
As a growth company, the focus on growing top line sales will continue.
SEGMENTAL SUMMARY % change
2010 2009
R`000 R`000
Revenue:
Total 219 223 10.22 198 894
Hardware Warehouse Business 191 105 16.29 164 329
Plumbing Business 29 891 (14.93) 35 135
Other segments 1 041 1 041.00 -
Inter segment sales (2 814) 393.68 (570)
EBIT:
Total 5 626 72.84 3 255
Hardware Warehouse Business 6 024 24.21 4 850
Plumbing Business (1 404) 38.77 (2 293)
Other segments 895 28.22 698
Inter segment sales 111 111 -
Hardware Warehouse Business
During the period under review, the Company opened two new branches,
furthering its expansion within Mpumalanga. The Port Alfred branch was
closed as part of an alignment of branches within high density rural and
peri-urban areas.
Notwithstanding the fact that the Company caters to predominantly cash
paying customers, slow recovery post the recession has impacted severely on
its earnings.
The effect on earnings is attributed to the following factors:
Revenue
The Company is pleased with the 16.29% growth in revenue reaching a record
R191 million compared to R164 million in the corresponding previous period.
On a comparative basis, this period evidenced an 8.6% increase in revenue.
Unemployment and the effects of political turmoil in the areas in which the
business operates continued to adversely affect individual disposable income
and government spend respectively. This has been coupled with a dramatic
slow-down in the construction industry.
Gross Profit Margin
The sector within the building material industry, under which the Company
operates, experienced approximately 2% product inflation during the six
months to December 2010, thereby having a continued effect on gross profit
margin.
The effects of the slow down resulted in a "trade down" from higher margin
products to basic products of a lesser margin by the customer base.
Overheads
The Company has, since its listing in 2007, adhered to its objectives as a
growth company, operating in what will remain a rewarding market segment.
Since listing, revenue of R103 million for the six months to 31 December
2007 has increased to R191 million for the six months to 31 December 2010.
Prior to the commencement of the economic downturn, the Company
strategically increased management, infrastructure and capacity in
anticipation of substantial store growth in the two new provinces, Kwa-Zulu
Natal and Mpumalanga, where it had established single branch footholds. The
resultant additional expenditure was mainly in personnel, specifically
Internal Auditing, Purchasing, Central Ordering, IT and Accounting
departments. The Company continued to retain and develop these resources
throughout the recession and slow down, as it remains on its growth path.
Further, the Company has invested in its new IT system and plans to have
full implementation by mid June 2011.
The continued store growth in the provinces of Kwa-Zulu Natal and Mpumalanga
will feed positively into the 2012 financial year, as was the case for 2011.
Plumbing Business
These reported financial results are for the two remaining branches in the
Border area of the Eastern Cape only, and do not represent financial results
of the National Franchisor or any of the other franchisees nationally.
The Plumbing Business reflected a loss of R2.963 million before tax, which
when compared with the same period the previous year, R3.329 million, showed
little improvement. It was during the beginning of the 2010 calendar year
that management assessed that this business, allied closely to the
construction industry, was unlikely to turn around in the foreseeable
future. Hence from July 2010, four branches were reduced to two and the
overheads in the remaining two branches were reduced substantially. The
closing down costs of the two branches were accounted for in this period,
and therefore increased the losses incurred during these reported six
months.
Further intense management attention will be paid to this business during
early in the 2011 calendar year. Management are committed to resolving the
effects of the Plumbing Business on the Group in the very near term.
CASH FLOW
The Group`s cash flows are still under pressure due to the effects of the
continued losses from the Plumbing Business. Management has put in place a
number of corrective actions, and the results thereof will be forthcoming
before the end of the current financial year.
PROSPECTS FOR THE FUTURE
The Hardware Warehouse Business has, during two very difficult years,
continued on its growth path both in terms of revenue and geographic
footprint. It is planned that by June 2012, the Company will have 14
branches in the Eastern Cape, 4 in Mpumalanga and 3 in Kwa-Zulu Natal.
Earnings before tax for the building materials operations increased by
57.93% to R5.823 million for the period, compared to R3.687 million for the
corresponding prior period. This is despite the retention of our overhead
resources and capacities to underpin our future growth, and the roll-out and
attendant expenses of two new branches during the period under review.
3. SEGMENT INFORMATION
Inter
Hardware segment
Warehouse Plumbing Other Transact-
Business Business segments ions Group
Unaudited Unaudited Unaudited Unaudited Unaudited
six six six six six
months months months months months
ended ended ended ended ended
31 31 31 31 31
December December December December December
2010 2010 2010 2010 2010
R`000 R`000 R`000 R`000 R`000
Statement
of
comprehensi
ve
income
Revenue 191 105 29 891 1 041 (2 814) 219 223
Profit /
(Loss) from
operations 6 024 (1 404) 895 111 5 626
Statement
of
financial
position
Segment
assets 140 303 22 857 18 620 (41 657) 140 123
Segment
liabilities 94 622 36 209 20 667 (44 506) 106 992
Other
segment
items
Depreciatio 1 389 356 5 - 1 750
n
Capital
expenditure 3 238 - - - 3 238
Hardware Plumbing Other Inter
Warehouse Business segments segment Group
Business Transact-
ions
Audited Audited Audited Audited Audited
12 12 months 12 months 12 months 12 months
months
ended ended ended ended ended
30 June 30 June 30 June 30 June 30 June
2010 2010 2010 2010 2010
R`000 R`000 R`000 R`000 R`000
Statement
of
comprehen
sive
income
Revenue 311 551 71 357 2 109 (4 253) 380 764
Profit /
(Loss)
from 5 473 (9 193) 1 582 - (2 138)
operation
s
Statement
of
financial
position
Segment
assets 123 054 28 221 16 739 (41 373) 126 641
Segment
liabiliti 81 589 42 699 20 763 (45 587) 99 464
es
Other
segment
items
Depreciat 2 832 621 10 - 3 463
ion
Capital
expenditu 1 231 1 008 1 946 - 4 185
re
Inter
Hardware segment
Warehouse Plumbing Other Transact-
Business Business segments ions Group
Unaudited Unaudited Unaudited Unaudited Unaudited
six six six six six
months months months months months
ended ended ended ended ended
31 31 31 31 31
December December December December December
2009 2009 2009 2009 2009
R`000 R`000 R`000 R`000 R`000
Statement
of
comprehen
sive
income
Revenue 164 329 35 135 - (570) 198 894
Profit /
(Loss)
from 4 850 (2 293) 698 - 3 255
operation
s
Statement
of
financial
position
Segment
assets 119 738 30 669 18 546 (35 483) 133 470
Segment
liabiliti 79 399 34 923 20 798 (37 653) 97 467
es
Other
segment
items
Depreciat 2 020 235 - - 2 255
ion
Capital
expenditu 775 - 1 648 - 2 423
re
4. BASIC AND DILUTED EARNINGS AND HEADLINE EARNINGS PER SHARE
The earnings and weighted average number of ordinary shares used in the
calculation of basic and diluted earnings and headline earnings per share are
as follows:
Reconciliation of total earnings to headline earnings attributable to equity
holders of the parent:
2010 2009
R`000 R`000
Total earnings attributable to equity holders
5 914 165
Non-headline earnings:
Impairment of goodwill - -
Add/(Less) loss/(profit) on disposal of property,
plant and equipment (35) -
Taxation effect of adjustments 14 -
Headline (loss) / earnings 5 893 165
Weighted average number of ordinary shares in issue
(Excluding treasury shares) (`000) 69 400 69 400
Total number of shares in issue (`000) 77 900 77 900
Earnings per share (expressed in cents per share) 8.52 0.24
Headline earnings per share (expressed in cents per
share) 8.49 0.24
5. ACQUISITION OF BUSINESS
2010 R`000
Four National Hardware
Total consideration for goodwill 375
The Group spent R375 000 on acquisitions. Goodwill of R375 000 has been
recognised on the above acquisition which relates to the Group`s estimates
of the favourable returns to be generated from the acquisition. There were
no acquisitions for the six month period ended 31 December 2009.
6. CHANGES IN SHARE CAPITAL AND SHARE PREMIUM
2010 2009
R`000 R`000
Issued and fully paid:
77 900 000 Ordinary shares of 0.02 cents each
(2009:77 900 000 Ordinary shares of 0.02 16 16
cents each)
Treasury shares (2) (2)
14 14
Share premium 21 496 21 496
Share costs written off against share premium (2 007) (2 007)
Treasury shares (8 500 000 shares at a
premium of 99.98 cents per share) (8 498) (8 498)
Share buyback (1 691) (1 691)
9 300 9 300
9 314 9 314
Reconciliation of shares issued:
Reported at incorporation 10 10
Issue of shares - rights issue 2 2
Issue of shares - Hardware Warehouse
Empowerment Trust 1 1
Issue of shares - private placement 3 3
Treasury shares (2) (2)
Balance as at 30 June 2010 14 14
Between 17 and 19 November 2008 the Company bought back 2 100 000 shares
at an average price of 80c per share.
7. RELATED PARTY TRANSACTIONS
There has been no significant changes in the related party relationships since
the previous year or significant transactions during the year other than those
in the normal course of business.
8. EVENTS AFTER THE END OF THE REPORTING PERIOD
The Board is not aware of any material matters or circumstances arising since
the end of the interim period and up to the date of this report.
9. CHANGES TO THE COMPOSITION OF THE BOARD
Independent non-executive director, HA Long resigned during the period under
review and will be replaced in due course.
10. DIVIDENDS
The Board has made a decision that no dividend will be declared for the six
month period ended 31 December 2010 (2009: Nil).
11. APPRECIATION
The commitment and dedication of our management team and staff, coupled with
numerous service providers, have ensured that our results remained in a
profitable position during relatively hard times. We would also like to thank
the Group`s Board members and Advisers for guidance over the past year and
look forward to the year ahead with enthusiasm.
30 March 2011
CORPORATE INFORMATION
Hardware Warehouse Limited
Country of incorporation and domicile: South Africa
Registration number: 2007/004302/06
Share code: HWW
ISIN: ZAE000104253
Registered office:
17 Vincent Road, Vincent, East London, 5247
Postal address:
PO Box 19728, Tecoma, East London, 5214
Directors:
IMJ Senar, Chairman; SC Miller, Chief Executive Officer; LA Rhind, Financial
Director; NE Woollgar, Independent Non-executive Director.
Contact details:
Tel: +27 43 704 2200
Fax: +27 43 704 2210
Web: www.hwwh.co.za
Transfer secretaries:
Computershare Investor Services (Proprietary) Limited
Auditors:
BDO South Africa Inc
Designated Adviser:
Merchantec Capital
Date: 30/03/2011 14:00:06 Supplied by www.sharenet.co.za
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implicitly, represent, warrant or in any way guarantee the truth, accuracy or
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employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
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