Wrap Text
PIK/PWK - Pick n Pay Stores Limited/Pick n Pay Holdings Limited - Reviewed
condensed consolidated results for the year ended 29 February 2012
PICK n PAY STORES LIMITED
("the Group")
INCORPORATED IN THE REPUBLIC OF SOUTH AFRICA - Reg. no. 1968/008034/06
Share code: PIK ISIN code: ZAE000005443
PICK N PAY
Reviewed condensed consolidated results
for the year ended 29 February 2012
Financial highlights - continuing operations
12 months to February 2012
Headline Total
Turnover EBITDA earnings dividend
R`billion R`million cents per cents per
share share
2012: 55.3 2 073.7 160.78 130.85
2011: 51.2 2 160.9 189.35 142.50
Financial highlights - continuing operations
6 months to February 2012
Headline Final
Turnover EBITDA earnings dividend
R`billion R`million cents per cents per
share share
2012: 28.6 1 191.3 105.98 108.35
2011: 26.3 1 086.9 99.30 105.50
REVIEW OF OPERATIONS
We are encouraged by the Group`s improved performance over the past six
months, after a tough interim result, with the first clear indications that
our investments are starting to yield real benefits.
Significant investment costs have had an impact on profit growth for the
year, most notably the upfront launch costs of Smartshopper, the
implementation of specialist category buying and the continued investment in
our central distribution capability, all of which will improve future
operating efficiencies and enable us to serve our customers better.
Strategic update
We remain focused on improving our customer offer and streamlining our
operations. We are in the process of consolidating and upgrading our support
functions so that we are better positioned to deliver outstanding products
and services in world class stores.
The first steps in this consolidation are the set-up of a specialist category
buying function and the centralisation of our supply chain. At the same time,
our customer offer has been significantly enhanced by the launch of our
Smartshopper loyalty programme. Looking ahead, we will be optimising our
regional and store management structures and our administration functions.
Smartshopper - We launched our Smartshopper loyalty programme in March 2011.
Customer acceptance of the programme has far exceeded our expectations and we
currently have in excess of 5 million active card holders on the programme,
against a first year target of 3 million. It will take a number of years
before the benefits of the programme are fully realised, however we believe
the encouraging growth in turnover this year is due in part to Smartshopper.
Set-up costs have impacted the earnings of the Group, but we expect the
programme to drive turnover growth now and into the future and generate
additional value as we understand our customers better and can market more
effectively to them.
Specialised category buying - We have successfully completed the
transformation of our regional buying teams into a single, specialised
category buying division. This is a complete overhaul of buying at Pick n Pay
and marks a significant shift in the way in which we engage with suppliers.
The division has already delivered improved performance through the reduced
cost of goods and a scientific approach to ranging and pricing. With
specialised category buying we will be better placed in negotiations with
suppliers, will rationalise our product range and will optimise our product
display. Our key focus is on delivering an improved selection of high quality
products and better value to customers.
Central distribution - Operational improvements at Longmeadow, our central
distribution centre in Gauteng, include reduced labour and distribution costs
per case on last year. We continue to focus on this facility to ensure that
the supply channel is fully optimised. We open our new Western Cape
distribution centre in May 2012 which will benefit from our experience at
Longmeadow.
Labour costs and expense control - General expense control remains a high
priority and management is focused on eliminating inefficiencies, improving
productivity and reducing controllable costs, especially in light of the
extraordinary increases in property rates and electricity tariffs over the
year. In December 2011 we negotiated a new agreement with the Union, which
affords us much more flexibility and will enable us to staff our stores more
efficiently. We expect the benefits of this agreement to start flowing in
the 2013 financial year.
Franklins, Australia - In September 2011, after a lengthy dispute with the
Australian Competition and Consumer Commission, we sold our Franklins
business to Metcash Limited for R1.2 billion, net of fees. We are now able to
focus our teams and capital entirely on our core southern African retail
operations.
Franklins continues to be disclosed as a discontinued operation, with its
results from operations for the 7 months to
30 September 2011 and the subsequent profit on sale of the business being
disclosed separately from continuing operations.
Financial highlights
Group turnover - at R55.3 billion for the year is 8.1% above last year (8.6%
above last year for the six months ended 29 February 2012), with pleasing
like-for-like growth. This turnover growth is encouraging in a highly
competitive environment and is the result of a number of factors, including
the positive effect of our Smartshopper programme. While our own internal
selling price inflation remains below CPI, South African consumers are facing
inflationary increases across the board, which, when combined with continued
economic uncertainty, is leading them to exercise caution in their spending.
Gross profit margin for the year is 18.0% (2011: 17.8%). This improvement in
margin is due to the initial benefits of specialised category buying, which
more than offsets the cost of the Smartshopper points. We believe that we
will be able to strengthen margins further over the coming years while
maintaining our competitive price position through further category buying
and supply chain improvements.
Trading profit growth in the 6 months to February 2012 is 11.2% on the same
period last year, a marked improvement on the first half.
Trading profit for the year of R1 267.5 million (2011: R1 417.7 million), at
a margin of 2.3% (2011: 2.8%) is 10.6% down on last year, most significantly
due to costs relating to our strategic transformation initiatives.
EBITDA (earnings before interest, tax, depreciation and amortisation) is up
9.6% for the second 6-month trading period, but is down 4.0% for the year to
R2 073.7 million.
Net cash from operating activities at R1 558.8 million is up from R3.5
million last year, due to significant improvements in working capital
management. We are focused, in particular, on reducing and managing optimum
stock levels in store, and we are pleased with the progress made in this
area, with like-for-like stock holdings reducing by 5.3% on last year.
Headline earnings per share for the 6 months to 29 February 2012 is up 6.7%
on the same period last year to 105.98 cents per share. Headline earnings
per share for the year is down 15.1% to 160.78 cents per share.
The final dividend per share of 108.35 cents for Pick n Pay Stores Limited
and 52.57 cents for Pick n Pay Holdings Limited includes an additional amount
to be paid to shareholders in respect of the 10% secondary tax on companies
(STC) no longer payable by the Group. This brings the total dividend per
share for the year to 130.85 cents for Pick n Pay Stores Limited (8.2% down
on last year) and 63.48 cents for Pick n Pay Holdings Limited (8.4% down on
last year).
The Group intends to maintain its dividend cover at 1.33, however with the
additional dividend declared to shareholders referred to above; the dividend
cover for the current year is 1.23 times.
Operational highlights
Turnover growth is encouraging, with the most significant growth coming from
the LSM 4 - 7 market, with Boxer a strong competitor in this arena, and from
our smaller format stores.
In addition, our private label, clothing, pharmacy and liquor divisions also
delivered strong turnover growth.
Pick n Pay owned stores (corporate) - During the year we opened 9 new
supermarkets, closed 3 and converted 5 franchise supermarkets to corporate
stores. In addition, we opened 34 liquor stores and 15 clothing stores. We
intend to open at least 9 new supermarkets next year, 20 liquor stores and 15
clothing stores.
Pick n Pay franchised stores - During the year we opened 9 new supermarkets,
closed 5 supermarkets and converted 5 franchise supermarkets to corporate
stores. In addition, we opened 19 liquor stores, 2 clothing stores and
closed 2 mini markets during the year. We intend to open at least 7 new
supermarkets and 15 liquor stores in South Africa next year.
Boxer - We opened 10 Boxer superstores during the year, closed 4 and opened 8
new Punch stores. Boxer also opened 4 liquor stores and 2 Boxer Builds. We
intend to open 22 superstores, 9 Punch supermarkets, 4 Boxer Builds and 10
liquor stores next year.
Africa - we continue our steady growth outside of South Africa and at 29
February 2012, the total number of stores outside South Africa (both owned
and franchised) was 94. We opened three new stores in Zambia during the year,
all of which are trading well, and we continue to explore opportunities in
the region. We also opened our first store in Mozambique and our first two
stores in Mauritius. We have three openings planned for 2013 (excluding TM
Supermarkets in Zimbabwe) in Mozambique, Zambia and Mauritius.
In February 2012 we purchased an additional 24% stake in our associate TM
Supermarkets in Zimbabwe for R102.5 million (US$13 million), taking our total
investment to 49%. The business is currently incurring losses, our share
being R1.9 million for the year. However, we are confident of its future
prospects and are looking forward to playing a part in growing the business
in Zimbabwe.
GENERAL COMMENTS
We would like to thank Nick Badminton, our outgoing CEO, for the integral
role he played in transforming the business and for the dedicated service he
has given over the last 33 years. We wish him well for his future. We are
currently looking both locally and internationally for the best candidate to
replace him.
Despite a challenging year, our improved performance over the last 6 months
gives us confidence in the work that we have done in repositioning the Group
for the future, and gives us good momentum into the 2013 financial year.
A significant portion of our transformation strategy has been implemented.
There is still much work to be done in seeing the strategy through to
completion, however we have reached the point where the benefits of the
changes to date are starting to be felt and are expected to accelerate in the
year ahead.
For and on behalf of the board
Gareth Ackerman Richard van Rensburg
Chairman and acting CEO Deputy CEO
17 April 2012
STATEMENT OF COMPREHENSIVE INCOME
Reviewed Audited
Year to Year to
Feb 2012 Growth Feb 2011
Rm % Rm
Continuing operations
Revenue (note 3) 55 634.4 51 455.9
Turnover (note 3) 55 330.5 8.1 51 185.0
Cost of merchandise sold (note 3) (45 350.0) (42 098.8)
Gross profit 9 980.5 9 086.2
Other trading income 264.4 231.4
Trading expenses (8 969.8) (7 899.9)
Loss on sale of property, equipment (7.6) -
and vehicles
Trading profit 1 267.5 (10.6) 1 417.7
Interest received 39.5 39.5
Interest paid (135.1) (111.0)
Gain on recognition of investment in - 7.5
associate
Share of associate`s (loss)/income (1.9) 2.4
Profit before tax 1 170.0 1 356.1
Tax (407.7) (447.8)
Profit for the year from continuing 762.3 908.3
operations
Profit/(loss) for the year from 351.2 (123.4)
discontinued operation
Profit on sale of discontinued 438.4 -
operation (note 6)
Loss from discontinued operation (87.2) (123.4)
(note 6)
Profit for the year 1 113.5 784.9
Other comprehensive loss (net of (358.3) (14.6)
tax)
Exchange rate differences on 224.1 50.1
translating foreign operations
Net loss on hedge of net investment (49.9) (52.2)
in foreign operation
Foreign currency translation reserve
realised on sale of discontinued
operation (note 6) (539.8) -
Retirement benefit actuarial 7.3 (12.5)
gain/(loss)
Total comprehensive income for the 755.2 770.3
year
EBITDA 2 073.7 (4.0) 2 160.9
Gross profit margin (%) 18.0 17.8
Earnings per share - cents
Basic 233.21 41.3 164.99
Continuing operations 159.64 (16.4) 190.92
Discontinued operation 73.57 (25.93)
Diluted 228.69 41.0 162.20
Continuing operations 156.55 (16.6) 187.68
Discontinued operation 72.14 (25.48)
Headline earnings reconciliation
Profit for the year 1 113.5 784.9
Headline adjustments (net of tax):
Continuing operations 5.5 (7.5)
Loss on sale of property, equipment 5.5 -
and vehicles
Gain on recognition of investment in - (7.5)
associate
Discontinued operation (437.6) 7.0
Loss on sale of property, equipment 0.8 7.0
and vehicles
Profit on sale of discontinued (438.4) -
operation (note 6)
Headline earnings 681.4 (13.1) 784.4
Continuing operations 767.8 (14.8) 900.8
Discontinued operation (86.4) (116.4)
Headline earnings per share - cents 142.69 (13.5) 164.90
Continuing operations 160.78 (15.1) 189.35
Discontinued operation (18.09) (24.45)
Diluted headline earnings per share 139.92 (13.7) 162.10
- cents
Continuing operations 157.67 (15.3) 186.14
Discontinued operation (17.75) (24.04)
STATEMENT OF FINANCIAL POSITION
Reviewed Audited
Feb 2012 Feb 2011
Rm Rm
Assets
Non-current assets
Intangible assets 799.6 404.5
Property, equipment and vehicles 3 863.9 3 401.8
Operating lease asset 84.8 37.7
Participation in export partnerships 41.5 48.2
Deferred tax 116.5 85.8
Investment in associate (note 5) 110.5 9.9
Loans 80.8 90.2
Investments 0.2 0.2
5 097.8 4 078.3
Current assets
Assets held for sale - discontinued operation - 2 120.1
Inventory 3 334.9 3 162.7
Trade and other receivables 2 113.9 1 739.2
Cash and other equivalents 1 271.7 -
6 720.5 7 022.0
Total assets 11 818.3 11 100.3
Equity and liabilities
Total shareholders` equity 2 404.1 2 158.8
Non-current liabilities
Long-term debt 771.2 626.9
Retirement scheme obligations 9.0 27.1
Operating lease liability 829.1 729.3
1 609.3 1 383.3
Current liabilities
Liabilities held for sale - discontinued - 826.6
operation
Short-term debt 693.3 50.2
Cash and cash equivalents - 547.4
Tax 99.6 96.2
Trade and other payables 7 012.0 6 037.8
7 804.9 7 558.2
Total equity and liabilities 11 818.3 11 100.3
Number of shares in issue - millions 480.4 480.4
Weighted average number of shares in issue - 477.4 475.7
millions (note 4)
Net asset value - cents per share (property 548.0 503.0
value based on directors` valuation)
CASH FLOW STATEMENT
Reviewed Audited
Year to Year to
Feb 2012 Feb 2011
Rm Rm
Cash flows from operating activities
Trading profit 1 267.5 1 417.7
Loss on sale of property, equipment and 7.6 -
vehicles
Depreciation and amortisation 808.1 733.3
Share options expense 95.7 73.8
Net operating lease obligations 52.6 29.3
Cash generated before movements in working 2 231.5 2 254.1
capital
Movements in working capital 490.3 (844.8)
Increase/(decrease) in trade and other 1 030.4 (678.1)
payables
Increase in inventory (172.2) (349.1)
(Increase)/decrease in trade and other (367.9) 182.4
receivables
Cash generated by trading activities 2 721.8 1 409.3
Interest received 39.5 39.5
Interest paid (135.1) (111.0)
Cash generated by operations 2 626.2 1 337.8
Dividends paid (605.4) (808.0)
Tax paid (462.0) (526.3)
Total net cash from operating activities - 1 558.8 3.5
continuing operations
Net cash (utilised in)/ from operating (330.4) 13.9
activities - discontinued operation
Total net cash from operating activities 1 228.4 17.4
Cash flows from investing activities
Intangible asset additions (271.7) (82.5)
Property, equipment and vehicle additions (1 339.3) (1 163.2)
Proceeds on sale of property, equipment and 44.5 21.9
vehicles
Purchase of operations (106.4) -
Increase in investment in associate (note 5) (102.5) -
Loans repaid 9.4 34.5
Net cash utilised in investing activities - (1 766.0) (1 189.3)
continuing operations
Net cash from/(utilised in) investing 1 459.6 (151.4)
activities - discontinued operation (note 6)
Total net cash utilised in investing (306.4) (1 340.7)
activities
Cash flows from financing activities
Debt raised/(repaid) 787.5 (32.5)
Share repurchases (42.7) (90.2)
Proceeds from employees on settlement of 31.1 25.1
share options
Total net cash from/(utilised in) financing 775.9 (97.6)
activities - continuing operations
Total net cash from financing activities - - 10.0
discontinued operation
Total net cash from/(utilised in) financing 775.9 (87.6)
activities
Net increase/(decrease) in cash and cash 1 697.9 (1 410.9)
equivalents
Cash and cash equivalents at 1 March (431.8) 1 055.3
Effect of exchange rate fluctuations on cash 5.6 (76.2)
and cash equivalents
Cash and cash equivalents at 29 February 1 271.7 (431.8)
Continuing operations 1 271.7 (547.4)
Discontinued operation - 115.6
STATEMENT OF CHANGES IN EQUITY
Reviewed Audited
Year to Year to
Feb 2012 Feb 2011
Rm Rm
At 1 March 2 158.8 2 144.6
Total comprehensive income for the 755.2 770.3
year
Dividends paid (605.4) (808.0)
Share repurchases (42.7) (90.2)
Net effect of settlement of employee 42.5 68.3
share options
Share options expense 95.7 73.8
At 29 February 2 404.1 2 158.8
OPERATING SEGMENT REPORT
Pick n Pay and Boxer Insurance Cell Captive
Reviewed Audited Reviewed Audited
Feb 2012 Feb 2011 Feb 2012 Feb 2011
Rm Rm Rm Rm
External revenue 55 631.5 51 453.2 2.9 2.7
Inter-segment revenue - - 14.7 12.9
External turnover 55 330.5 51 185.0 - -
Profit/(loss) before 1 152.4 1 340.5 17.6 15.6
tax
Profit on sale of - - - -
discontinued operation,
after tax
Total assets 11 744.5 8 922.2 73.8 58.0
OPERATING SEGMENT REPORT CONTINUED
Total continuing Discontinued operation -
operations Franklins
Reviewed Audited Reviewed Audited
Feb 2012 Feb 2011 Feb 2012 Feb 2011
Rm Rm Rm Rm
External revenue 55 634.4 51 455.9 3 389.3 5 617.4
Inter-segment revenue 14.7 12.9 - -
External turnover 55 330.5 51 185.0 3 389.2 5 613.0
Profit/(loss) before 1 170.0 1 356.1 (87.2) (123.4)
tax
Profit on sale of - - 438.4 -
discontinued operation,
after tax
Total assets 11 818.3 8 980.2 - 2 120.1
OPERATING SEGMENT REPORT CONTINUED
Total operations
Reviewed Audited
Feb 2012 Feb 2011
Rm Rm
External revenue 59 023.7 57 073.3
Inter-segment revenue 14.7 12.9
External turnover 58 719.7 56 798.0
Profit/(loss) before tax 1 082.8 1 232.7
Profit on sale of discontinued operation, 438.4 -
after tax
Total assets 11 818.3 11 100.3
NOTES TO THE FINANCIAL INFORMATION
1. KPMG Inc., the Group`s independent auditor, has reviewed the condensed
consolidated results for the year to 29 February 2012 contained in this
preliminary report, and has expressed an unmodified conclusion on the
preliminary financial statements. Their review report is available for
inspection at the Company`s registered office. These preliminary
financial statements are prepared in accordance with the recognition and
measurement requirements of IFRS and the disclosure requirements of IAS
34. Other than disclosed in note 3, accounting policies are consistent
with those of prior years.
2. During the year, certain companies within the Group entered into
transactions with each other. These intra-group transactions are
eliminated on consolidation. Related parties are unchanged from that
reported at 28 February 2011. For further information, please refer to
note 28 of the 2011 annual report.
3. Revenue comprises turnover, other trading income and interest received.
The Group has reviewed the terms of its franchise agreements in
Botswana, Lesotho and Swaziland, and the interpretation of its role in
the supply of inventory to those franchisees. In the past, Pick n Pay
purchased inventory on behalf of its franchisees and sold the inventory
to the franchisees at no margin. As such, the accounting treatment of
the transaction was to recognise the purchases as part of Group cost of
merchandise sold and the sales as part of Group turnover, with no impact
on gross profit. The substance of the relationship has changed over
time, with the franchisees ordering and receiving directly from the
suppliers, albeit facilitated through the Pick n Pay supply chain. We
believe it more appropriate therefore to reflect Pick n Pay`s role in
the transaction as that of agent, earning a franchise fee only.
Therefore we will no longer be recognising the turnover and the
corresponding cost of merchandise sold in the Group statement of
comprehensive income. Prior year disclosures have been adjusted
accordingly as follows:
As Prior
previously year As
stated adjustment restated
2011 2011 2011
Rm Rm Rm
Revenue 52 216.7 (760.8) 51 455.9
Turnover 51 945.8 (760.8) 51 185.0
Cost of merchandise sold (42 859.6) 760.8 (42
098.8)
Gross profit 9 086.2 - 9 086.2
No restatement of the prior year statement of financial position is
required as the prior year adjustment has had no impact on earnings.
4. The weighted average number of shares is lower than that in issue due to
the treasury shares held by the Group being treated as cancelled for
this calculation.
5. In February 2012 the Group purchased a further 24% stake in TM
Supermarkets in Zimbabwe for R102.5 million bringing its total
investment to 49%. The business is currently incurring losses, our share
being R1.9 million for the year. However, we are confident of its future
prospects and are looking forward to playing a role in growing this
business in Zimbabwe.
6. In September 2011, after a lengthy dispute with the Australian
Competition and Consumer Commission, we sold our Australian business,
Franklins, to Metcash Limited for R1.2 billion net of fees. The sale of
Franklins has enabled us to focus entirely on our southern African
operations with the cash proceeds being utilised directly in our core
retail operations. Franklins is disclosed as a discontinued operation,
with its results to 30 September 2011 and the profit on sale of the
business being disclosed separately from continuing operations.
Results from the discontinued operation are as follows:
Reviewed Audited
year to year to
Feb 2012 Feb 2011
Rm Rm
Results of discontinued operation
Revenue 3 389.3 5 617.4
Expenses (3 476.5) (5 740.8)
Results from operating activities (87.2) (123.4)
Tax - -
Results from operating activities, net of tax (87.2) (123.4)
Profit on sale of discontinued operation 493.4 -
Tax on sale transaction (55.0) -
Profit/(loss) for the year 351.2 (123.4)
Cash flows from/(utilised in) discontinued
operation
Net cash (utilised in)/from operating (330.4) 13.9
activities
Net cash from/(utilised in) investing 1 459.6 (151.4)
activities
Net cash sale proceeds 1 244.9
Cash and cash equivalents 214.7
Net cash from financing activities - 10.0
Net cash flows for the year 1 129.2 (127.5)
Effect of the disposal on the financial
position of the Group
Net cash proceeds received 1 244.9
Foreign currency translation reserve - 539.8
realised on sale
Less: net assets sold (1 291.3)
Intangible assets (837.2)
Property, plant and equipment (697.2)
Deferred tax (22.9)
Inventory (570.1)
Trade and other receivables (67.4)
Cash and cash equivalents 214.7
Short-term debt 10.2
Trade and other payables 678.6
Profit on sale of Franklins 493.4
Tax on sale transaction (55.0)
438.4
PICK N PAY HOLDINGS LIMITED ("PIKWIK")
INCORPORATED IN SOUTH AFRICA - Reg. No. 1981/009610/06
Share Code: PWK ISIN code: ZAE000005724
Pikwik`s only asset is its 53.85% (2011: 53.95%) effective holding in Pick n
Pay Stores Limited (excluding treasury shares). The Pikwik Group earnings are
directly related to those of this investment.
Headline earnings for the year amount to R365.5 million (2011: R423.4
million).
Headline earnings per share is 70.79 cents (2011: 82.08 cents).
Headline earnings per share from continuing operations is 79.81 cents (2011:
94.29 cents).
Diluted headline earnings per share from continuing operations is 77.63 cents
(2011: 91.78 cents).
The total number of shares in issue is 527.2 million (2011: 527.2 million)
and the weighted average number of shares in issue during the year is 516.4
million (2011: 515.9 million).
DIVIDEND DECLARATIONS
The directors have declared the following cash dividends during the year:
Pick n Pay Stores Limited Pick n Pay Holdings
Limited
2012 2011 2012 2011
Cents Cents Growth Cents Cents Growth
per per per per
share share % share share %
Interim dividend 22.50 37.00 (39.2) 10.91 17.94 (39.2)
Final dividend 108.35 105.50 2.7 52.57 51.34 2.4
Normal dividend 98.50 105.50 (6.6) 47.79 51.34 (6.9)
Additional
dividend in
respect of STC
no longer
payable 9.85 - 4.78 -
Total dividend 130.85 142.50 (8.2) 63.48 69.28 (8.4)
Normal dividend 121.00 142.50 (15.1) 58.70 69.28 (15.3)
Additional 9.85 - 4.78 -
dividend in
respect of STC
no longer
payable
Pick n Pay Stores Limited
Notice is hereby given that the directors have declared a final gross
dividend (number 88) of 108.35 cents per share out of income reserves.
The dividend declared is subject to dividend withholding tax at 15%.
The total Secondary Tax on Companies ("STC") utilised as part of this
declaration amounts to R216 474. The amount of ordinary shares in issue at
the date of this declaration is 480 397 321 and consequently the STC credits
utilised per share amount to 0.05 cents per share.
In determining the dividend tax to withhold, STC credits must be taken into
account. Accordingly, the dividend to use for determining the dividends tax
is 108.30 cents per share. The tax payable is 16.25 cents per share, leaving
shareholders who are not exempt from dividends tax with a net dividend of
92.10 cents per share.
Pick n Pay Stores Limited`s tax reference number is 9275/141/71/2.
Pick n Pay Holdings Limited
Notice is hereby given that the directors have declared a final gross
dividend (number 61) of 52.57 cents per share out of income reserves.
The dividend declared is subject to dividend withholding tax at 15%.
The total Secondary Tax on Companies ("STC") utilised as part of this
declaration amounts to R14 525 753.The amount of ordinary shares in issue at
the date of this declaration is 527 249 082 and consequently the STC credits
utilised per share amount to 2.76 cents per share.
In determining the dividends tax to withhold, STC credits must be taken into
account. Accordingly, the dividend to use for determining the dividends tax
is 49.81 cents per share. The tax payable is 7.47 cents per share, leaving
shareholders who are not exempt from dividends tax with a net dividend of
45.10 cents per share.
Pick n Pay Holdings Limited`s tax reference number is 9050/141/71/3.
For both Companies, the last day of trade in order to participate in the
dividend (CUM dividend) will be Friday, 1 June 2012. The shares will trade EX
dividend from the commencement of business on Monday, 4 June 2012 and the
record date will be Friday, 8 June 2012.
The dividends will be paid on Monday, 11 June 2012.
Share certificates may not be dematerialised or rematerialised between
Monday, 4 June 2012 and Friday, 8 June 2012, both dates inclusive.
On behalf of the boards of directors
DE Muller - Company Secretary
17 April 2012
Directors of Pick n Pay Stores Limited:
Executive: GM Ackerman (Chairman and acting CEO), NP Badminton (CEO -
resigned 29 February 2012), RSJ van Rensburg (Deputy CEO-appointed
1 October 2011), DG Cope (CFO - retired 29 April 2011), A Jakoet (CFO -
appointed 29 April 2011), JG Ackerman, SD Ackerman-Berman
Non-executive: D Robins (German)
Independent non-executive: HS Herman, A Mathole, L Phalatse, BJ van der Ross,
J van Rooyen
Gareth Ackerman, previously the non-executive Chairman of Pick n Pay Stores
Limited, has assumed an executive role on the resignation of CEO Nick
Badminton effective 29 February 2012.
Directors of Pick n Pay Holdings Limited:
Non-executive: RD Ackerman (Chairman), GM Ackerman, W Ackerman
Independent non-executive: RP de Wet, HS Herman, J van Rooyen (appointed 1
May 2011)
Alternate: JG Ackerman, SD Ackerman-Berman, D Robins (German)
Registered office: 101 Rosmead Avenue, Kenilworth, Cape Town, 7708
Sponsor: Investec Bank Limited, 100 Grayston Drive, Sandton, 2196
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