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AOO/AON/AOVP - African & Overseas Enterprises Limited - Unaudited Interim Group Results for the half-year ended 31 December 2011 African & Overseas Enterprises Limited (Incorporated in the Republic of South Africa Reg No. 1947/027461/06) Share codes: AOO - AON - AOVP ISIN: ZAE000000485 - ZAE000009718 - ZAE000000493 Unaudited Interim Group Results for the half-year ended 31 December 2011 REVENUE UP 4.9% OPERATING PROFIT DOWN 16.9% HEADLINE EARNINGS PER SHARE DOWN 27.7% Commentary The principal operating subsidiary Rex Trueform Clothing Company Limited reports as follows: "Group results The withdrawal of Duty Credit Certificate benefits which were utilised by the group in the previous period had a materially negative impact on profit during the half-year under review. Furthermore the percentage increase in operating costs exceeded the 4.9% increase in turnover. The above factors have had a negative effect on net margin. The operating profit from continuing operations accordingly reduced by 16% on the comparative period. Headline earnings for the half-year amounted to 80.5 cents per share from continuing operations (97.7 cents in 2010). Retail The Queenspark retail segment grew sales by 4.9% during a period in which trading was disrupted by the refurbishment of a number of stores and also building alterations in some major shopping malls. In addition trading conditions remained challenging. Retail sales were further impacted by the closure of three non-performing stores during the past twelve months. Property segment The strategy of the group is to redevelop certain of the group`s properties where viable. Prospects We anticipate that there will be further deterioration in margins and profitability in the second half of the financial year due to escalating expenses and difficult trading conditions. Any reference to future financial performance included in this statement has not been reviewed and reported on by the company`s external auditors and does not constitute an earnings forecast." Signed on behalf of the board ML Krawitz (Chairman) PE Shub (Chief Executive Officer) Cape Town 9 March 2012 STATEMENT OF CHANGES IN EQUITY Consolidated (R`000) As at As at 31 December 30 June
2011 2010 2011 (Unaudited) (Unaudited) (Audited) Share capital 1 200 1 200 1 200 Share premium 6 076 6 076 6 076 Other reserves Opening balance 538 500 500 Share-based payment expense - 16 38 Closing balance 538 516 538 Retained earnings Opening balance 139 194 122 299 122 299 Profit for the period 8 330 11 383 20 710 Preference dividends paid (151) (132) (148) Ordinary dividends paid (3 644) (3 184) (3 189) Subsidiary shares repurchased - (6) (6) Net effect of take-up of share options - 206 251 Change in degree of control - (572) (723) Closing balance 143 729 129 994 139 194 Non-controlling interest Opening balance 119 934 104 799 104 799 Profit for the period 7 405 9 707 17 848 Preference dividends paid (8) (8) (17) Ordinary dividends paid (4 755) (3 647) (3 647) Net effect of take-up of share options - 165 203 Change in degree of control - 572 723 Other - 8 25 Closing balance 122 576 111 596 119 934 Total capital and reserves 274 119 249 382 266 942 ABRIDGED STATEMENT OF CASH FLOW Consolidated (R`000) Six months ended Year ended 31 December 30 June 2011 2010 2011
(Unaudited) (Unaudited) (Audited) Operating profit before working capital changes 26 065 35 934 64 981 Working capital changes (6 510) (1 570) (11 309) Interest received 3 957 4 451 8 802 Interest paid (174) (122) (367) Dividends paid (8 558) (6 971) (7 001) Dividends received 13 12 12 Normal tax paid (3 110) (7 838) (17 004) Secondary tax on companies paid (1 073) (826) (826) Net cash inflows from operations 10 610 23 070 37 288 Additions to property, plant and equipment (14 958) (14 726) (31 191) Proceeds from disposal of property, plant and equipment 119 198 672 Proceeds on disposal of discontinued operations 5 412 - - Net cash outflows from investing activities (9 427) (14 528) (30 519) Proceeds from delivery of shares by share trust - 371 454 Subsidiary shares repurchased - (11) (11) Net cash inflows from financing activities - 360 443 Net increase in cash and cash equivalents 1 183 8 902 7 212 Cash and cash equivalents at the beginning of the period 148 869 141 657 141 657 Cash and cash equivalents at the end of the period 150 052 150 559 148 869 OTHER INFORMATION Capital commitments Authorised - not contracted for 34 075 6 011 53 436 Gross profit margin from continuing operations 54.5% 54.4% 56.3% Operating profit margin from continuing operations 7.1% 9.0% 8.5% Retail segment operating profit margin from continuing operations 7.8% 10.0% 9.2% STATEMENT OF COMPREHENSIVE INCOME Consolidated (R`000) Six months ended Year ended 31 December 30 June % 2011 2010 2011
Change (Unaudited) (Unaudited) (Audited) Continuing operations Revenue 4.9% 286 245 272 912 518 506 Turnover 4.9% 280 940 267 697 508 078 Cost of sales (127 770) (122 039) (221 987) Gross profit 5.2% 153 170 145 658 286 091 Employment costs (49 390) (45 917) (91 982) Occupancy costs (37 090) (34 209) (70 729) Depreciation and amortisation (9 568) (7 437) (15 595) Other operating costs (38 406) (34 720) (66 306) Rental income 733 249 605 Royalties 602 503 1 009 Operating profit (16.9%) 20 051 24 127 43 093 Dividends received 13 12 12 Interest received 3 957 4 451 8 802 Interest paid (174) (122) (367) Profit before tax (16.2%) 23 847 28 468 51 540 Income tax expense (8 112) (9 208) (16 117) Profit for the period from continuing operations (18.3%) 15 735 19 260 35 423 Profit from discontinued operations (net of income tax) - 1 830 3 135 Profit for the period (25.4%) 15 735 21 090 38 558 Other comprehensive income Total comprehensive income for the period 15 735 21 090 38 558 Profit attributable to: Ordinary and `N` ordinary shareholders 8 179 11 251 20 562 Preference shareholders 151 132 148 Profit attributable to equity holder of the parent 8 330 11 383 20 710 Non-controlling interest 7 405 9 707 17 848 Profit for the period 15 735 21 090 38 558 Total comprehensive income attributable to: Ordinary and `N` ordinary shareholders 8 179 11 251 20 562 Preference shareholders 151 132 148 Comprehensive income attributable to equity holder of the parent 8 330 11 383 20 710 Non-controlling interest 7 405 9 707 17 848 Total comprehensive income for the period 15 735 21 090 38 558 Reconciliation of headline earnings Profit attributable to equity holders 8 179 11 251 20 562 Continuing operations 8 179 10 237 18 828 Discontinued operations - 1 014 1 734 Adjusted for: (Profit)/loss on disposal of property, plant and equipment (44) (2) 372 Profit on sale of discontinued operation - - (68) Headline earnings 8 135 11 249 20 866 Continuing operations 8 135 10 235 19 200 Discontinued operations - 1 014 1 666 Basic earnings per ordinary share (cents) (27.3%) 71.8 98.8 180.6 Continuing operations 71.8 89.9 165.3 Discontinued operations - 8.9 15.3 Headline earnings per ordinary share (cents) (27.7%) 71.4 98.8 183.2 Continuing operations 71.4 89.9 168.6 Discontinued operations - 8.9 14.6 Weighted average number of equity shares on which earnings per share is based (000`s) 11 387 11 387 11 387 STATEMENT OF FINANCIAL POSITION Consolidated (R`000)
As at As at 31 December 30 June 2011 2010 2011 (Unaudited) (Unaudited) (Audited)
ASSETS Non-current assets 86 243 75 471 83 855 Property, plant and equipment 75 161 65 157 69 328 Investment property 5 718 3 511 5 776 Intangible assets 1 061 1 317 1 455 Other investments 576 576 576 Deferred taxation 3 727 4 910 6 720 Current assets 238 215 226 507 243 580 Inventories 75 590 62 349 71 099 Trade and other receivables 11 642 13 584 21 562 Forward exchange contracts 910 - - Income tax receivable 21 15 2 050 Cash and cash equivalents 150 052 150 559 148 869 Total assets 324 458 301 978 327 435 Equity and liabilities Capital and reserves 274 119 249 382 266 942 Share capital 1 200 1 200 1 200 Share premium 6 076 6 076 6 076 Other reserves 538 516 538 Retained earnings 143 729 129 994 139 194 Non-controlling interest 122 576 111 596 119 934 Non-current liabilities 12 277 12 823 16 844 Post-retirement liability 3 944 4 074 3 996 Accrued operating lease liability 7 143 8 749 9 577 Deferred taxation 1 190 - 3 271 Current liabilities 38 062 39 773 43 649 Provisions 420 514 467 Trade and other payables 36 535 35 785 42 461 Forward exchange contracts - 2 180 602 Income tax payable 1 107 1 294 119 Total equity and liabilities 324 458 301 978 327 435 SEGMENTAL REPORTING Consolidated (R`000) Six months ended Year ended 31 December 30 June 2011 2010 2011
(Unaudited) (Unaudited) (Audited) Revenue Total external retail revenue 281 542 268 200 509 087 Retail segment revenue 282 533 269 296 511 307 Intersegment revenue earned from continuing operations (991) (605) (1 548) Intersegment revenue earned from discontinued operations - (491) (672) Total external property revenue 733 249 605 Property segment revenue 2 695 2 318 4 758 Intersegment revenue earned from continuing operations (1 962) (1 810) (3 635) Intersegment revenue earned from discontinued operations - (259) (518) Dividends received 13 12 12 Interest received 3 957 4 451 8 802 Segment revenue from continuing operations 286 245 272 912 518 506 Total external manufacturing revenue - 17 214 34 990 Manufacturing segment revenue - 17 291 35 067 Less: intersegment revenue - (77) (77) Segment revenue from discontinued operations - 17 214 34 990 Total group revenue 286 245 290 126 553 496 Segment operating profit/(loss) Retail segment profit - continuing operations 22 069 26 749 46 906 Property segment profit - continuing operations 869 192 1 331 Group Services` operating loss - continuing operations* (2 887) (2 814) (5 144) Group profit from continuing operations 20 051 24 127 43 093 Manufacturing operating profit - discontinued operations - 2 541 4 354 Total group operating profit 20 051 26 668 47 447 Depreciation and amortisation Retail 9 469 7 359 15 416 Property 99 65 179 Segment depreciation and amortisation from continuing operations 9 568 7 424 15 595 Manufacturing - discontinued operation - 138 259 Total depreciation and amortisation 9 568 7 562 15 854 Segment assets Retail 217 312 178 051 202 446 Property 13 156 10 412 11 751 Group Services* 93 990 100 398 101 866 Segment assets from continuing operations 324 458 288 861 316 063 Manufacturing - discontinued operation - 13 117 11 372 Total segment assets 324 458 301 978 327 435 Segment liabilities Retail 44 956 41 691 50 330 Property 2 184 30 1 931 Group Services* 3 199 5 845 5 120 Segment liabilities from continuing operations 50 339 47 566 57 381 Manufacturing - discontinued operation - 5 030 3 112 Total segment liabilities 50 339 52 596 60 493 Capital expenditure Retail 13 867 14 396 30 559 Property 1 091 330 602 Capital expenditure from continuing operations 14 958 14 726 31 161 Manufacturing - discontinued operation - - 30 Total capital expenditure 14 958 14 726 31 191 * Group Services includes corporate costs. NOTES 1 Basis of preparation These interim financial statements have been prepared in terms of the South African Companies Act (71 of 2008 as amended), IFRS, IAS 34: Interim Financial Reporting, the JSE Listings Requirements and the AC 500 Standards as issued by the Accounting Practices Board or its successor. These interim financial statements have been prepared under the supervision of the group financial director, Damian Johnson CA(SA). These results have not been reviewed or reported on by the company`s auditors, KPMG Inc. 2 Accounting policies The accounting policies applied are consistent with those applied in the preparation of the group`s annual financial statements for the year ended 30 June 2011. 3 Reclassification The group presented the sale of its manufacturing division as a discontinued operation in the previous year and where applicable certain comparative information has been reclassified. 4 Preference dividend A dividend on the 6% cumulative participating preference shares for the six months ended 31 December 2011 in the amount of R151 000 was declared on 10 December 2011 and paid on 23 December 2011. Directors ML Krawitz+ (Chairman), PE Shub (Chief Executive Officer) (alt ML Krawitz), CEA Radowsky, DS Johnson, PM Naylor*, RV Orlin*, RW Rees (UK)* + Non-executive *Independent Non-executive Registered office Rex Buildings, 263 Victoria Road, Salt River, Cape Town, 7925 Secretary AA Hodgkinson Transfer secretaries Computershare Investor Services (Pty) Limited 70 Marshall Street, Johannesburg, 2001 Sponsor Java Capital Websites www.queenspark.com www.rextrueform.com Date: 08/03/2012 15:19:46 Supplied by www.sharenet.co.za Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, 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, information disseminated through SENS.
