Wrap Text
JDG - JD Group Limited - Audited results for the year ended 31 August
2011
JD Group Limited
("JD" or "the Company" or "the Group")
Registration number: 1981/009108/06
Share code: JDG
ISIN: ZAE000030771
Audited results for the year ended 31 August 2011
R15 741m - Revenue up 25%. 2010: R12 590m
407,7 cents - Headline earnings per share up 34%. 2010: 303,6 cents
R1 057m - Operating profit up 39%. 2010: R760m
100 cents - Final dividend per share up 25%. 2010: 80 cents
Commentary
Business environment
The Group is pleased to report the continued improvement in the financial
results for the year with headline earnings increasing 34,3% to 407,7
cents a share. 2011 could be described as a watershed year. Firstly, the
strategy of separating out Furniture Retail from Financial Services
embarked upon three years ago, started to deliver the envisaged financial
returns and secondly, the acquisition of Unitrans Auto and Steinbuild
from 1 July 2011 added complementary retail assets which further
diversifies the Group from its reliance on furniture retail.
The Group now comprises six divisions, being Furniture Retail, Cash
Retail, Automotive and Home Improvement on the retail side with Financial
Services and New Business Development providing the consumer finance
offering to all our retail formats.
Financial review
General
The improved financial performance experienced in the first half of the
financial year continued during the second six months. The results for
the year include Unitrans Auto and Steinbuild for two months as well as a
change to calendar month-end in Furniture Retail and HiFi Corp resulting
in a 50-week trading year for these two divisions. The inclusion of
Unitrans Auto and Steinbuild added R2,4 billion to revenue but the two
weeks lost by Furniture Retail and HiFi Corp reduced turnover by R282
million when compared to the prior year.
The key features of the annual results are the following:
- Turnover up 32% to R11,7 billion
- An increase in operating profit of 39% to R1,06 billion (2010: R760
million)
- A 10% reduction in debtors cost to R677 million (down from R753 million
in 2010)
- Total trade and other receivables book growing from R5,3 billion in
2010 to R6,7 billion at 31 August 2011
- Headline earnings per share of 407,7 cents (2010: 303,6 cents)
- Dividend per share of 200 cents (2010: 150 cents)
Furniture Retail
The Furniture Retail division reported excellent full year results with
operating profit up 73,1% to R315 million (from R182 million in 2010). On
a like-for-like basis, if the division had reported for a full 52 weeks,
sales growth would have been a respectable 11,8%. The division also
increased its gross margin from 34,5% to 36,0% and contained expense
growth to 7,1%.
Cash Retail
The Cash Retail division, comprising Incredible Connection and HiFi Corp,
reported excellent results with a 17,9% growth in operating profit from
R190 million in 2010 to R224 million in 2011. Particularly noteworthy, is
the increase in the operating margin to 4,9% (2010: 4,4%). This was
achieved despite the impact of significant price deflation in key
categories and the very competitive landscape. That being said, sales on
a like-for-like basis were up by 7,4% if you include HiFi Corp sales for
the full 52 weeks.
Financial Services
Our Financial Services division, which now includes the results of
Maravedi that was previously reported as part of the New Business
Development division, continued its impressive performance by generating
an operating profit of R723 million (2010: R604 million). Especially
pleasing was the reduction in debtors cost to R675 million (2010: R753
million) and the impairment ratio of 9,2% (2010: 11,2%). This reduction
in debtors costs was achieved despite the growth in the debtors book.
Consumer finance debtors grew to R5,9 billion (2010: R5,2 billion) with
the credit risk profile continuing to improve. Revenue growth was
curtailed due to the lower interest rate environment with finance income
only increasing 0,8% year-on-year but the division produced solid growth
in our insurance and other revenue lines resulting in a 5,5% increase in
revenue to R3,3 billion (2010: R3,1 billion). Credit granting and credit
collections are a core strength of the Financial Services division with
bad debt write-off levels reducing to R711 million from R930 million in
the previous year and current collection rates at 6,4% (2010: 6,1%). Both
of these key indicators are most encouraging as we look to extend our
Financial Services product offer to new channels.
International
The results of Abra have been shown separately as a discontinued
operation. The division reported a loss of R1 million for the year
against a profit of R15 million in 2010. The sale of Abra to Steinhoff
Europe became effective on 1 September 2011.
New Business Development
Our New Business Development division, which now only consists of Blake,
generated an operating profit of R30 million (2010: R15 million). The
core business activities of Blake are delivering sustainable results on
the back of more efficient use of its contact centre and an unwavering
focus on cost control.
Unitrans Auto and Steinbuild
It is also gratifying to report on the results of our newly acquired
businesses Unitrans Auto and Steinbuild. The two businesses generated
operating profits for the two months since acquisition amounting to R59
million.
Balance sheet and cash flow
Cash generated by trading increased from R980 million to R1,3 billion for
the year as a result of the substantial increase in operating profit. We
utilised R632 million in growing the debtors book and a further R722
million to fund additions to property, plant and equipment. This mainly
relates to the investment in our key strategic initiatives with the roll-
out of the new ERP systems in Furniture Retail and Financial Services as
well as the acquisition of a number of new distribution centres.
The Group raised R1,6 billion in long-term borrowings with 3 year or
longer maturities in order to fund its investing and working capital
activities.
Our balance sheet remains particularly strong with net interest-bearing
debt of R1,2 billion, including the Abra cash, at a gearing ratio of
14,5%. This provides the Group with ample scope to fund its future growth
strategy.
Prospects
The extensive investments to ensure the Group`s ability to substantially
grow its core businesses are well on track. The Group is now well
positioned and confident about the year ahead.
Audit opinion of the independent auditors
The auditors, Deloitte & Touche, have issued their opinion on the Group`s
financial statements for the year ended 31 August 2011. The audit was
conducted in accordance with International Standards on Auditing. They
have issued an unmodified audit opinion. These summarised provisional
financial statements have been derived from the Group financial
statements and are consistent in all material respects with the Group
financial statements. A copy of their audit report is available for
inspection at the Company`s registered office. Any reference to future
financial performance included in this announcement, has not been
reviewed or reported on by the Company`s auditors.
Dividend
The directors have declared a final dividend of 100 cents (2010: 80
cents) per share for the period ended 31 August 2011. In accordance with
the settlement procedures of Strate, the following dates will apply to
the final dividend:
Last day to trade cum dividend Friday, 2 December 2011
Trading ex dividend commences Monday, 5 December 2011
Record date Friday, 9 December 2011
Dividend payment date Monday, 12 December 2011
Share certificates may not be dematerialised or rematerialised between
Monday, 5 December 2011and Friday, 9 December 2011, both days inclusive.
The company`s annual general meeting will be held on 16 February 2012 at
the Group`s head office in Braamfontein, Johannesburg and shareholders
are encouraged to attend this meeting. A complete notice, together with a
copy of the Group`s annual report, will be dispatched to shareholders in
due course.
By order of the Board
I David Sussman Grattan Kirk Bennie van Rooy
Executive Chairman Chief Executive Officer Financial Director
11 November 2011
Condensed Group statement of comprehensive income
Audited Restated#
12 months 12 months
ended ended
31 August 31 August
2011 2010 Change
R million R million %
Sale of merchandise 11 740 8 901 32
Finance charges earned 1 587 1 575 1
Financial services 1 343 1 165 15
Other services 1 071 949 13
Revenue 15 741 12 590 25
Cost of sales 8 550 6 307 35
Operating expenses 5 457 4 770 14
Administration and other expenses 1 207 1 188
Depreciation and amortisation 229 187
Employees 2 550 2 158
Marketing 363 321
Occupancy 824 696
Share-based payment 35 26
Transport and travel 246 198
Loss/(surplus) on disposal of 3 (4)
property, plant and equipment
Operating profit before debtors costs 1 734 1 513 15
Debtors costs (note 2) 677 753 (10)
Operating profit 1 057 760 39
Investment income 5 4
Finance income 65 73
Finance costs (160) (181)
Share of profits of associates 2 -
Profit before taxation from 969 656 48
continuing operations
Taxation 264 163 62
Profit for the year from continuing 705 493 43
operations
(Loss)/profit after tax for the year (1) 15
from discontinued operations
Profit for the year 704 508 39
Attributable to:
Shareholders 699 501
Minorities 5 7
704 508 39
Earnings per share (cents)
- basic 406,2 304,9
- diluted 402,0 301,4
# 2010 has been restated to eliminate Abra, which is not disclosed as a
discontinued operation.
Condensed Group statement of other comprehensive income
Audited Audited
12 months 12 months
ended ended
31 August 31 August
2011 2010
R million R million
Profit for the year 704 508
Exchange differences on translating foreign (1) (31)
operations
Total comprehensive income for the year 703 477
Attributable to:
Shareholders 698 470
Minorities 5 7
703 477
Condensed Group statement of financial position
Audited Audited
31 August 31 August
2011 2010
R million R million
Assets
Non-current assets 4 630 1 617
Property, plant and equipment 1 440 767
Vehicle rental fleet 17 -
Goodwill (note 3) 1 324 493
Intangible assets (note 3) 1 658 212
Investments and loans 84 30
Interest in associate company 6 -
Deferred taxation 101 115
Current assets 11 887 7 664
Inventories 3 059 1 575
Trade and other receivables (note 4) 6 704 5 276
Vehicle rental fleet 352 -
Financial assets 1 -
Taxation 395 34
Bank balances and cash 1 376 779
Assets classified as held for sale 217 -
Total assets 16 734 9 281
Equity and liabilities
Equity and reserves
Share capital and premium 4 245 1 779
Treasury shares (263) (378)
Non-distributable and other reserves 231 158
Retained earnings 3 644 3 464
Reserves of a disposed business classified as 34 -
held for sale
Shareholders for dividend 216 131
Shareholders` equity 8 107 5 154
Minority shareholders` interest 58 34
Total equity 8 165 5 188
Non-current liabilities 2 448 1 057
Interest-bearing long-term liabilities 1 717 922
Non-interest-bearing long-term liability 202 75
Deferred taxation 529 60
Current liabilities 6 030 3 036
Trade and other payables (note 6) 4 933 2 424
Provisions 41 -
Interest-bearing liabilities 946 502
Financial liabilities - 4
Taxation 82 84
Bank overdraft 28 22
Liabilities classified as held for sale 91 -
Total equity and liabilities 16 734 9 281
Directors` valuation of unlisted investments 84 30
Capital expenditure authorised and contracted 634 155
Capital expenditure authorised and not yet 151 234
contracted
Operating lease commitments 2 657 1 480
Net asset value per share (cents) 3 687,8 3 022,8
Gearing ratio (net) (%) 14,5 12,9
Condensed Group cash flow statement
Audited Audited
12 months 12 months
ended ended
31 August 31 August
2011 2010
R million R million
Cash flows from operating activities 343 62
Cash generated by trading 1 322 980
Increase in working capital (313) (334)
Cash generated by operations 1 009 646
Investment income 5 4
Finance costs - net (92) (92)
Taxation paid (282) (314)
Cash available from operating activities 640 244
Dividends paid (297) (182)
Cash utilised in investing activities (622) (99)
Acquisition of subsidiary companies (note 5) 128 -
Investment and loan receipts - 62
Proceeds on disposal of property, plant and 12 27
equipment
Additions to property, plant and equipment (722) (188)
Proceeds on disposal of rental fleet vehicles 43 -
Additions to rental fleet vehicles (83) -
Cash flows from financing activities 1 008 69
Proceeds on disposal of treasury shares by 65 27
share incentive trust
Acquisition of shares by share incentive trust - (18)
Increase in shareholding in subsidiary company (12) -
Settlement of minority interest in business (7) -
combination
Long-term borrowings raised 1 632 633
Long-term borrowings repaid (588) (527)
Finance lease liabilities repaid (82) (46)
Net increase in cash and cash equivalents 729 32
Cash and cash equivalents at beginning of year 757 725
Cash and cash equivalents at end of year 1 486 757
Cash included in disposed business held for (138) -
sale
Cash and cash equivalents at end of year from 1 348 757
continuing operations
Condensed Group statement of changes in equity
Audited Audited
31 August 31 August
2011 2010
R million R million
Share capital and premium 4 245 1 779
Opening balance 1 779 1 779
Proceeds on issue of shares 2 466 -
Treasury shares (263) (378)
Opening balance (378) (411)
Shares purchased by share incentive trust - (18)
Proceeds on disposal of shares by share 65 27
incentive trust
Loss on disposal of treasury shares 50 24
Share-based payment reserve 115 80
Opening balance 80 77
Share-based payment 35 26
Transfer to retained income - (23)
Non-distributable reserves 116 78
Opening balance 78 89
Translation of foreign entities (1) (31)
Transfer to reserves of a disposed business 19 -
Net disposal of joint venture interests (2) -
Transfer from retained income 22 20
Retained earnings 3 644 3 464
Opening balance 3 464 3 230
Profit attributable to shareholders 699 501
Loss on disposal of treasury shares (50) (24)
Distributable to shareholders (391) (255)
Distributable to share incentive trust 9 9
Transfer from share-based payment reserve - 23
Transfer to reserves of a disposed business (53) -
Arising on increase in shareholding in (12) -
subsidiary
Transfer to non-distributable reserves (22) (20)
Reserves of a disposed business 34 -
Opening balance - -
Transfer from non-distributable reserves (19) -
Transfer from retained income 53 -
Shareholders for dividend 216 131
Opening balance 131 67
Distributable to shareholders 391 255
Distributable to share incentive trust (9) (9)
Paid to shareholders (307) (189)
Paid to share incentive trust 10 7
Shareholders` equity 8 107 5 154
Minority shareholders` interest 58 34
Opening balance 34 27
Minority interest arising on acquisition of 28 -
subsidiaries
Profit attributable to minorities 5 7
Dividends paid to minorities (4) -
Net disposal of joint venture interests (5) -
Total 8 165 5 188
Supplementary information
Audited Audited
12 months 12 months
ended ended
31 August 31 August
2011 2010
R million R million
Reconciliation of headline earnings
Profit attributable to shareholders 699 501
Loss/(surplus) on disposal of property, plant 4 (3)
and equipment
Taxation thereon (1) 1
Headline earnings 702 499
Number of shares in issue (000) 219 830 170 500
Treasury shares held (000) (4 310) (6 208)
Number of shares held outside the Group (000) 215 520 164 292
Weighted average number of shares in issue
(000)
- basic 172 142 164 314
- diluted 173 932 166 253
Headline earnings per share (cents)
- basic 407,7 303,6
- diluted 403,5 300,1
Distribution to shareholders (cents) 200 150
- Interim 100 70
- Final (proposed) 100 80
Operating margin (%) 6,7 6,0
The earnings and headline earnings per share are calculated in R
thousands as opposed to R million.
Notes
1. Accounting policies
The condensed financial information has been prepared in accordance with
the framework concepts and the measurement and recognition requirements
of International Financial Reporting Standards (IFRS), the AC 500
standards as issued by the Accounting Practices Board and the information
as required by IAS 34: Interim Financial Reporting, the JSE Listings
Requirements and the Companies Act. The report has been prepared using
accounting policies that comply with IFRS which are consistent with those
applied in the financial statements for the year ended 31 August 2010,
except for the adoption of the accounting standards and interpretations
that became effective during the current year:
The adoption of these standards and interpretations had no material
impact on the Group.
Audited Audited
12 months 12 months
ended ended
31 August 31 August
2011 2010
R million R million
2. Debtors` costs
Decrease in impairment provision (34) (177)
Bad debts written off 711 930
677 753
3. Goodwill and intangible assets
Goodwill comprises:
Carrying value at beginning of year 493 493
Arising on acquisitions during the year 831 -
Carrying value at end of year 1 324 493
Intangible assets comprise:
Carrying value at beginning of year 212 256
Arising on acquisitions during the year 1 482 -
Amortisation for the current year (36) (44)
Carrying value at end of year 1 658 212
4. Trade and other receivables
Instalment sale and other loan receivables (a) 5 921 5 224
Trade receivables 629 69
Total instalment sale, loan and other trade 6 550 5 293
receivables
Less: Impairment provision (598) (586)
Net instalment sale, loan and other trade 5 952 4 707
receivables
Other receivables 752 569
Total trade and other receivables 6 704 5 276
Provisions as a percentage of total instalment 9,1 11,1
sale and trade receivables (%)
In accordance with industry norms, amounts due from instalment sale
receivables after one year are included in current assets. The credit
terms of instalment sale receivables range from six to 36 months.
a. Classified as loans and receivables and carried at amortised cost.
5. Acquisition of subsidiary companies (provisional values)
Unitrans Steinbuild
Property, plant and equipment 109 53
Vehicle rental fleet 341 -
Deferred taxation (135) (2)
Trade and other receivables 621 173
Investments 54 -
Inventories 1 405 141
Taxation 3 (2)
Interest-bearing liabilities (269) (8)
Non-interest-bearing liabilities (120) (27)
Trade and other payables (2 034) (250)
Bank and cash 807 23
Minority interest - (28)
782 73
Intangible assets 1 453 29
Goodwill 765 66
Cost of investment 3 000 168
Settled by issue of shares (2 466) -
Bank and cash acquired (807) (23)
Cash flow from acquisition of subsidiaries (273) 145
6. Trade and other payables
The directors consider the carrying amount of trade and other payables to
approximate their fair values.
The credit period of trade payables ranges between 30 and 120 days.
7. Diluted earnings and headline earnings per share
The number of shares for diluted earnings purposes has been calculated
after considering the dilutive impact of share options and the cash value
to be paid in future, in respect of unissued shares granted to employees.
8. Related parties
The Group entered into various transactions with related parties which
occurred under terms that are no more favourable than those arranged with
independent third parties.
9. Subsequent events
The sale of Abra is based on its audited results to 31 August 2011 as
disclosed in the Group circular dated 24 May 2011. The closing actions
relating to the sale are currently in process. The sale should be
concluded by mid-December.
The Group announced on SENS on 19 October 2011 that Steinhoff
International Holdings Limited (Steinhoff) had acquired from the existing
shareholders, subject to certain conditions precedent, call options over
JD Group Limited ordinary shares, which, if exercised, may result in
Steinhoff`s shareholding in the Group increasing from approximately 32%
to in excess of 50%. The call options expire on 31 March 2012.
As a result of Steinhoff`s existing shareholding exceeding 25%, the Group
is considering changing its year end to 30 June to coincide with that of
Steinhoff.
Other than those disclosed in the profit announcement, no other
significant events have occurred in
the period between 31 August 2011 and the date of this announcement.
Segmental analysis - business divisions
Furniture Retail
Year ended ended 31 August 2011 2010
Revenue Rm 5 775 5 339
Operating profit Rm 315 182
Depreciation Rm 57 32
Total assets Rm 1 374 1 016
Total current liabilities Rm 1 547 1 249
Capital expenditure Rm 114 44
Operating margin % 5,5 3,4
Total sale of merchandise Rm 4 963 4 619
Share of Group sale of merchandise % 42,3 48,5
Credit sales Rm 3 181 3 162
Percentage of total % 64,1 68,5
Cash sales Rm 1 782 1 457
Percentage of total % 35,9 31,5
Number of stores 988 949
Revenue per store R000 5 845 5 626
Retail square meterage 496 372 495 584
Revenue per square metre Rand 11 634 10 773
Number of employees 9 035 8 928
Revenue per employee R000 639 598
Instalment sale and other loan Rm
receivables
Impairment provision Rm
Bad debts written off Rm
Receivables` arrears Rm
Deposit rate on credit sales %
Collection rate %
#Elimination of interdivisional origination fees.
*2010 has been restated to eliminate Abra, which is now disclosed as a
discontinued operation.
**Maravedi has been integrated into Financial Services and reclassified
from New Business Development.
Segmental analysis - business divisions (continued)
Financial Services**
Year ended ended 31 August 2011 2010
Revenue Rm 3 314 3 140
Operating profit Rm 723 604
Depreciation Rm 24 21
Total assets Rm 5 965 4 961
Total current liabilities Rm 80 323
Capital expenditure Rm 16 23
Operating margin % 21,8 20,6
Total sale of merchandise Rm
Share of Group sale of merchandise %
Credit sales Rm
Percentage of total %
Cash sales Rm
Percentage of total %
Number of stores 988 949
Revenue per store R000 3 354 3 035
Retail square meterage 55 152 55 065
Revenue per square metre Rand
Number of employees 4 809 4 560
Revenue per employee R000 689 704
Instalment sale and other loan Rm 5 921 5 224
receivables
Impairment provision Rm 545 586
Bad debts written off Rm 711 930
Receivables` arrears Rm 1 058 1 022
Deposit rate on credit sales % 5,9 7,6
Collection rate % 6,4 6,1
#Elimination of interdivisional origination fees.
*2010 has been restated to eliminate Abra, which is now disclosed as a
discontinued operation.
**Maravedi has been integrated into Financial Services and reclassified
from New Business Development.
Segmental analysis - business divisions (continued)
Cash Retail
Year ended ended 31 August 2011 2010
Revenue Rm 4 578 4 308
Operating profit Rm 224 190
Depreciation Rm 51 46
Total assets Rm 1 070 507
Total current liabilities Rm 770 619
Capital expenditure Rm 46 56
Operating margin % 4,9 4,4
Total sale of merchandise Rm 4 518 4 282
Share of Group sale of merchandise % 38,5 45,0
Credit sales Rm
Percentage of total %
Cash sales Rm 4 518 4 282
Percentage of total % 100,0 100,0
Number of stores 96 92
Revenue per store R000 47 688 46 826
Retail square meterage 97 938 90 617
Revenue per square metre Rand 46 744 47 541
Number of employees 3 625 3 608
Revenue per employee R000 1 263 1 194
Instalment sale and other loan Rm
receivables
Impairment provision Rm
Bad debts written off Rm
Receivables` arrears Rm
Deposit rate on credit sales %
Collection rate %
#Elimination of interdivisional origination fees.
*2010 has been restated to eliminate Abra, which is now disclosed as a
discontinued operation.
**Maravedi has been integrated into Financial Services and reclassified
from New Business Development.
Segmental analysis - business divisions (continued)
New Business Dev
Year ended ended 31 August 2011 2010**
Revenue Rm 245 267
Operating profit Rm 30 15
Depreciation Rm 16 19
Total assets Rm 103 397
Total current liabilities Rm 22 442
Capital expenditure Rm 10 15
Operating margin % 12,2 5,1
Total sale of merchandise Rm
Share of Group sale of merchandise %
Credit sales Rm
Percentage of total %
Cash sales Rm
Percentage of total %
Number of stores
Revenue per store R000
Retail square meterage
Revenue per square metre Rand
Number of employees 1 646 1 551
Revenue per employee R000 149 261
Instalment sale and other loan Rm
receivables
Impairment provision Rm
Bad debts written off Rm
Receivables` arrears Rm
Deposit rate on credit sales %
Collection rate %
#Elimination of interdivisional origination fees.
*2010 has been restated to eliminate Abra, which is now disclosed as a
discontinued operation.
**Maravedi has been integrated into Financial Services and reclassified
from New Business Development.
Segmental analysis - business divisions (continued)
Unitrans/Steinbuild
Year ended ended 31 August 2011 2010
Revenue Rm 2 376 -
Operating profit Rm 59 -
Depreciation Rm 19 -
Total assets Rm 5 311 -
Total current liabilities Rm 2 565 -
Capital expenditure Rm 88 -
Operating margin % 2,5 -
Total sale of merchandise Rm 2 259
Share of Group sale of merchandise % 19,2
Credit sales Rm
Percentage of total %
Cash sales Rm 2 259
Percentage of total % 100,0
Number of stores 143
Revenue per store R000 32 014
Retail square meterage 568 994
Revenue per square metre Rand 8 046
Number of employees 6 015
Revenue per employee R000 41
Instalment sale and other loan Rm
receivables
Impairment provision Rm 53
Bad debts written off Rm
Receivables` arrears Rm
Deposit rate on credit sales %
Collection rate %
#Elimination of interdivisional origination fees.
*2010 has been restated to eliminate Abra, which is now disclosed as a
discontinued operation.
**Maravedi has been integrated into Financial Services and reclassified
from New Business Development.
Segmental analysis - business divisions (continued)
Corporate
Year ended ended 31 August 2011 2010
Revenue Rm (547)# (464)#
Operating profit Rm (294) (231)
Depreciation Rm 26 26
Total assets Rm 2 694 2 168
Total current liabilities Rm 1 046 291
Capital expenditure Rm 531 44
Operating margin %
Total sale of merchandise Rm
Share of Group sale of merchandise %
Credit sales Rm
Percentage of total %
Cash sales Rm
Percentage of total %
Number of stores
Revenue per store R000
Retail square meterage
Revenue per square metre Rand
Number of employees 588 539
Revenue per employee R000
Instalment sale and other loan receivables Rm
Impairment provision Rm
Bad debts written off Rm
Receivables` arrears Rm
Deposit rate on credit sales %
Collection rate %
#Elimination of interdivisional origination fees.
*2010 has been restated to eliminate Abra, which is now disclosed as a
discontinued operation.
**Maravedi has been integrated into Financial Services and reclassified
from New Business Development.
Segmental analysis - business divisions (continued)
Discontinued
operations
Year ended ended 31 August 2011 2010*
Revenue Rm - -
Operating profit Rm - -
Depreciation Rm - -
Total assets Rm 217 232
Total current liabilities Rm - 112
Capital expenditure Rm 6
Operating margin % - -
Total sale of merchandise Rm
Share of Group sale of merchandise %
Credit sales Rm
Percentage of total %
Cash sales Rm
Percentage of total %
Number of stores
Revenue per store R000
Retail square meterage
Revenue per square metre Rand
Number of employees
Revenue per employee R000
Instalment sale and other loan receivables Rm
Impairment provision Rm
Bad debts written off Rm
Receivables` arrears Rm
Deposit rate on credit sales %
Collection rate %
#Elimination of interdivisional origination fees.
*2010 has been restated to eliminate Abra, which is now disclosed as a
discontinued operation.
**Maravedi has been integrated into Financial Services and reclassified
from New Business Development.
Segmental analysis - business divisions (continued)
Group
Year ended ended 31 August 2011 2010*
Revenue Rm 15 741 12 590
Operating profit Rm 1 057 760
Depreciation Rm 193 144
Total assets Rm 16 734 9 281
Total current liabilities Rm 6 030 3 036
Capital expenditure Rm 805 188
Operating margin % 6,7 6,0
Total sale of merchandise Rm 11 740 8 901
Share of Group sale of merchandise % 100,0 93,5
Credit sales Rm 3 181 3 162
Percentage of total % 27,1 35,5
Cash sales Rm 8 599 5 739
Percentage of total % 72,9 64,5
Number of stores 1 227 1 041
Revenue per store R000 12 829 12 094
Retail square meterage 1 218 456 641 266
Revenue per square metre Rand 12 919 19 633
Number of employees 25 718 19 186
Revenue per employee R000 612 656
Instalment sale and other loan receivables Rm 5 921 5 224
Impairment provision Rm 598 586
Bad debts written off Rm 711 930
Receivables` arrears Rm 1 058 1 022
Deposit rate on credit sales % 5,9 7,6
Collection rate % 6,4 6,1
#Elimination of interdivisional origination fees.
*2010 has been restated to eliminate Abra, which is now disclosed as a
discontinued operation.
**Maravedi has been integrated into Financial Services and reclassified
from New Business Development.
Administration
Executive directors ID Sussman (chairman), AG Kirk (chief executive
officer), KR Chauke, Dr HP Greeff, ID Thompson, BJ van Rooy
Independent non-executive directors VP Khanyile (lead independent non-
executive), N Bodasing, Dr D Konar, M Lock, M Matlwa, MJ Shaw, JH
Schindehutte, GZ Steffens
Company secretary JMWR Pieterse
Press announcement prepared by BJ van Rooy CA(SA)
Registered office 11th Floor, JD House, 27 Stiemens Street,
Braamfontein, Johannesburg, 2001
(PO Box 4208, Johannesburg, 2000) Telephone +27 11 408 0408 Facsimile
+27 11 408 0604
Email: info@jdg.co.za
Transfer secretaries Computershare Investor Services (Proprietary)
Limited 70 Marshall Street, Johannesburg, 2001 Telephone +27 11 370
5000 Facsimile +27 11 688 5238
ADR depository File number 82-4401, The Bank of New York Mellon
Corporation, One Wall Street,
New York, NY 10286 United States of America Telephone +1 212 495 1284
Facsimile +1 212 635 1121
Sponsor PSG Capital (Proprietary) Limited, Ground Floor, DM Kisch House,
Inanda Greens Business Park,
54 Wierda Road West, Wierda Valley, Sandton, 2196 Telephone +27 11 784
1712 Facsimile +27 11 784 4755
Independent auditors Deloitte & Touche
Date: 14/11/2011 07:09:01 Supplied by www.sharenet.co.za
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