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JD GROUP LIMITED - Audited results for the ten-month period ended 30 June 2012

Release Date: 27/08/2012 07:30
Code(s): JDG     PDF:  
Wrap Text
Audited results for the ten-month period ended 30 June 2012

JD Group Limited: ("JD" or "the Company" or "the Group")
Registration number: 1981/009108/06
Share code: JDG ISIN: ZAE000030771
Bond code:  JDGCB ISIN: ZAE000168415
Audited results for the ten-month period ended 30 June 2012

Headline earnings per share increased to 409,9 cents for the 10-month period (FY11: 407,7 cents)
Revenue increased by 61% to R25 billion
Operating profit for the 10-month period increased by 37% to R1,4 billion (FY11: R1,1 billion)
Final dividend raised by 32% to 132 cents per share


Commentary

Following the Group's change in year-end, these results are for the 10 months ended 30 June 2012 and 
are compared to the results for the 12 months ended 31 August 2011 (FY11).

Business environment

The Group is pleased to report an improvement in headline earnings to R884 million for the 10-month 
period under review. This is encouraging when compared to the 12-month period ended 31 August 2011 of 
R702 million, and translates into headline earnings per share for the 10 months of 409,9 cents 
(FY11: 407,7 cents).

These results include Unitrans Auto and SteinBuild for the entire 10-month reporting period, whereas 
only two months were included in the FY11 reporting period.

The separation of Furniture Retail from Financial Services has delivered the intended financial 
performance, particularly in our Financial Services division. The performance of Financial Services 
together with the benefits derived from the diversification strategy, has delivered an increase in 
headline earnings per share for the third consecutive reporting period.

In addition, the growth in our consumer finance business is set to continue with the successful 
roll-out of a more formal Financial Services presence in the Furniture Retail channel, as well as 
an extended range of Financial Services product offerings to other retail channels.

The investment in the two new ERP systems for Furniture Retail and Financial Services has started 
to deliver the intended efficiencies, while the contribution from our central distribution centres, 
by containing costs and improving customer service, has gained momentum.

Unitrans Auto and SteinBuild, which were acquired as a part of the Group's retail diversification 
strategy, have generated excellent results.

Financial review

General

The results achieved for the 10-month reporting period ended 30 June 2012 represent a solid performance 
by the operating divisions, when compared to the 12 month results for the year ended 31 August 2011. 

The key features of the results are the following:

- Revenue up 61% to R25,3 billion (FY11: R15,7 billion)

- An increase of 37% in operating profit to R1,4 billion (FY11: R1,1 billion)

- The reduction in debtors' costs from R677 million for FY11 to R417 million for the 10 months 
  ended 30 June 2012

- A 28% increase in profit before tax to R1,2 billion (FY11: R1,0 billion)

- Notwithstanding an increase in the weighted average number of issued shares to 215,7 million 
  (2011: 172,1 million), arising from the acquisition of the Unitrans Auto and SteinBuild businesses, 
  headline earnings per share increased for the 10 months to 409,9 cents (FY11: 407,7 cents)

- A final dividend per share of 132 cents for the period (2011: 100 cents) bringing the total 
  dividend to 232 cents per share for the period under review (FY 2011: 200 cents)

Furniture Retail

The Furniture Retail division produced satisfying results, generating an operating income for the 
10 months of R311 million (FY11: R315 million). Merchandise sales of R4,6 billion were complimented by an 
improvement in gross margin of 0,8% to 36,8%.

Financial Services

Our Financial Services division generated excellent returns and reported an operating profit of
R760 million (FY11: R723 million) and an annualised return on equity of 26,0%. The annualised 
return on equity exceeded our Financial Services performance target of 25% for the first time.

Instalment sale and loan receivables, before impairments, increased by 22,5% to R7,3 billion 
(FY11: R5,9 billion). This was achieved through the successful roll-out of personal loans through 
our Furniture Retail branches. Personal loans grew to R1,1 billion as at 30 June 2012. The non-furniture 
retail loan book had a total value before impairments of R1,4 billion as at 30 June 2012.

We have maintained our cautious approach to personal loan credit extension by limiting unsecured 
loans to a maximum period of 24 months and a maximum loan amount of R25 000. We do not extend personal 
loans to high risk customers, based on the results of our application scoring matrix. Furthermore, 
75% of the book is originated from the existing furniture customer base.

The performance of the receivables book continues to show improvement, with the impairment ratio 
reducing to 7,7% (FY11: 9,1%) and debtors' costs reducing to R417 million (FY11: R677 million).

Cash Retail

The Cash Retail division, which includes the results of SteinBuild, reported operating income of 
R177 million for the period ended 30 June 2012 (FY11: R226 million). The sales mix, together with 
price deflation, impacted negatively on margins at HiFi Corp and Incredible Connection.

Unitrans Auto

Unitrans Auto achieved excellent results, generating operating income of R411 million for the 
review period ended 30 June 2012.

Blake

Blake generated operating profit of R32 million (FY11: R30 million). The core business activities 
of Blake are delivering sustainable results, with more efficient use of its contact centre and an 
unwavering focus on cost control.

Financial position and cash flow

Cash generated by operations before investment in instalment sale and other loan receivables amounted to 
R1 billion for the 10 months to 30 June 2012. An amount of R1,3 billion was invested in the growth of the 
debtors' book. The increase in property, plant and equipment of R1,1 billion includes the investment in the 
new central distribution centres and the continued investment in the roll-out of the ERP systems across Furniture 
Retail and Financial Services. In addition, the rental fleet at Hertz was replenished at a cost of R469 million.

The strong financial position reflects net gearing of R3,1 billion at a ratio of 35% to shareholders' 
funds. The planned increase in gearing is a result of growing the personal loans book to R1,1 billion 
at 30 June 2012 and the investment in property, plant and equipment. The net asset value per share 
increased to 4 026 cents (31 August 2011: 3 688 cents).

The period under review also saw our entry into the debt capital markets with the issue of our 
debut R1 billion senior unsecured, 7,5% convertible bond on 20 June 2012 that is listed on the JSE. 
This has enabled the Group to further diversify and extend its capital resources and debt 
maturity profile.

Prospects

The extensive investments made over the last three years have positioned the Group to generate 
sustainable earnings growth into the future.

Changes to the Board

During the period under review and subsequent to Steinhoff becoming the controlling shareholder of the
JD Group, Markus Jooste, Danie van der Merwe and Ben La Grange were appointed as non-executive
directors with effect from 15 June 2012. On 1 September 2011, Nerina Bodasing and Matsobane Matlwa were 
appointed as independent non-executive directors. Due to his position as Independent Chairman of Steinhoff,
the Group's holding company, Dr Konar's status as an independent non-executive director on the Group Board 
changed to "non-executive". Accordingly, Dr Konar has resigned as a member of the Group audit committee,
while Jacques Schindehütte and Matsobane Matlwa were appointed as new members with effect from 17 February 
2012. In addition Markus Jooste became a member of the Group remuneration committee with effect from 16 June 2012. 
Additional changes to other Board Committees will be set out in the Group's Integrated Report.

Audit opinion of the independent auditor

The independent auditor, Deloitte & Touche, has issued its opinion on the Group's financial 
statements for the 10-month period ended 30 June 2012. The audit was conducted in accordance 
with International Standards on Auditing. Deloitte & Touche has issued an unmodified audit opinion. 
These condensed 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 the 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.

Declaration of a final dividend

Notice is hereby given that the directors have declared a final gross dividend of 132 cents per share 
for the period ended 30 June 2012. In accordance with the settlement procedures of 
Strate, the following dates will apply to this final dividend:

Last day to trade cum dividend    Friday, 12 October 2012
Trading ex dividend commences     Monday, 15 October 2012
Record date                       Friday, 19 October 2012
Dividend payment date             Monday, 22 October 2012

Share certificates may not be dematerialised or re-materialsed between Monday, 15 October 2012 and 
Friday, 19 October 2012, both days inclusive. Any change in the above dates will be disclosed on SENS. 
In determining the dividends tax (DT) of 15% to withhold in 
terms of the Income Tax Act for those shareholders who are not exempt from the DT, no secondary tax on 
companies (STC) credits have been utilised. Shareholders who are not exempt from the DT will therefore 
receive a dividend of 112,2 cents per share net of DT. The Company has 219 830 000 ordinary shares in 
issue and its income tax reference number is 9475/184/71/0.

Where applicable, dividends in respect of certificated shares will be transferred electronically to 
shareholders` bank accounts on Monday, 22 October 2012. In the absence of specific mandates, dividend 
cheques will be posted to shareholders. Ordinary shareholders who hold dematerialised shares will have 
their accounts at their Central Securities Depository Participant or their broker credited on 
Monday, 22 October 2012.

The Company's annual general meeting will be held in due course at the Group's head office in Braamfontein, 
Johannesburg and shareholders are encouraged to attend this meeting. A comprehensive notice 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

24 August 2012



Condensed Group statement of comprehensive income
                                                                                     Audited     Audited
                                                                                   10 months   12 months
                                                                                       ended       ended
                                                                                     30 June   31 August
                                                                                        2012        2011      Change
                                                                                   R million   R million           %
Sale of merchandise                                                                   20 446      11 740          74
Finance charges earned                                                                 1 404       1 587        (11)
Financial services                                                                     1 268       1 343         (6)
Other services                                                                         2 166       1 071         102
Revenue                                                                               25 284      15 741          61
Cost of sales                                                                         16 888       8 550          97
Operating expenses                                                                     6 534       5 457          20
Administration and other expenses                                                      1 356       1 207
Depreciation and amortisation                                                            307         229
Employees                                                                              3 035       2 550
Marketing                                                                                369         363
Occupancy                                                                              1 004         824
Share-based payment                                                                       33          35
Transport and travel                                                                     420         246
Loss on disposal of property, plant and equipment                                         10           3

Operating profit before debtors' costs                                                 1 862       1 734           7
Debtors'costs (note 2)                                                                   417         677        (38)
Operating profit                                                                       1 445       1 057          37
Investment income                                                                          4           5
Finance income                                                                            42          65
Finance costs                                                                          (252)       (160)
Share of profits of associates                                                             2           2
Profit before taxation from continuing operations                                      1 241         969          28
Taxation                                                                                 350         264          32
Profit for the period from continuing operations                                         891         705          26
Loss after tax for the period from discontinued operations (Abra)                          -         (1)
Profit for the period                                                                    891         704          27
Attributable to:
Shareholders                                                                             877         699
Minorities                                                                                14           5
                                                                                         891         704          27
Earnings per share (cents)
- basic                                                                                406,4       406,2
- diluted                                                                              404,1       402,0



Condensed Group statement of other comprehensive income
                                                                                     Audited     Audited
                                                                                   10 months   12 months
                                                                                       ended       ended
                                                                                     30 June   31 August
                                                                                        2012        2011
                                                                                   R million   R million
Profit for the period                                                                    891         704
Exchange differences on translating foreign operations                                   (3)         (1)
Total comprehensive income for the period                                                888         703
Attributable to:
Shareholders                                                                             874         698
Minorities                                                                                14           5
                                                                                         888         703

Condensed Group statement of changes in equity
                                                                                     Audited     Audited
                                                                                     30 June   31 August
                                                                                        2012        2011
                                                                                   R million   R million
Share capital and premium                                                              4 245       4 245
Opening balance                                                                        4 245       1 779
Proceeds on issue of shares                                                                -       2 466
Treasury shares                                                                        (245)       (263)
Opening balance                                                                        (263)       (378)
Shares purchased by share incentive trust                                                (2)           -
Proceeds on disposal of shares by share incentive trust                                   10          65
Loss on disposal of treasury shares                                                       10          50
Share-based payment reserve                                                              101         115
Opening balance                                                                          115          80
Share-based payment                                                                       33          35
Share-based payment paid out                                                             (5)           -
Transfer to retained income                                                             (42)           -
Non-distributable reserves                                                               164         116
Opening balance                                                                          116          78
Translation of foreign entities                                                          (3)         (1)
Transfer to reserves of a disposed business                                                -          19
Net disposal of joint venture interests                                                    -         (2)
Equity settled bonds                                                                      51           -
Transfer from retained income                                                              -          22
Retained earnings                                                                      4 083       3 644
Opening balance                                                                        3 644       3 464
Profit attributable to shareholders                                                      877         699
Loss on disposal of treasury shares                                                     (10)        (50)
Distributable to shareholders                                                          (510)       (391)
Distributable to share incentive trust                                                     9           9
Transfer from share-based payment reserve                                                 42           -
Transfer from/(to) reserves of a disposed business                                        34        (53)
Arising on disposal of shareholding in subsidiary                                        (3)        (12)
Transfer to non-distributable reserves                                                     -        (22)
Reserves of a disposed business                                                            -          34
Opening balance                                                                           34           -
Transfer from non-distributable reserves                                                  -         (19)
Transfer (to)/from retained income                                                      (34)          53
Shareholders for dividend                                                                501         216
Opening balance                                                                          216         131
Distributable to shareholders                                                            510         391
Distributable to share incentive trust                                                   (9)         (9)
Paid to shareholders                                                                   (220)       (307)
Paid to share incentive trust                                                              4          10

Shareholders' equity                                                                   8 849       8 107
Minority shareholders' interest                                                           87          58
Opening balance                                                                           58          34
Minority interest arising on acquisition of subsidiaries                                   -          28
Profit attributable to minorities                                                         14           5
Dividends paid to minorities                                                             (8)         (4)
Funding received and increased investment by minorities                                   27           -
Net disposal of joint venture interests                                                  (4)         (5)

Total                                                                                  8 936       8 165



Condensed Group statement of financial position
                                                                                     Audited    Restated
                                                                                     30 June   31 August
                                                                                        2012        2011
                                                                                   R million   R million
Assets
Non-current assets                                                                     5 663       4 682
Property, plant and equipment                                                          2 364       1 440
Vehicle rental fleet                                                                       9          17
Goodwill (note 3)                                                                      1 396       1 376
Intangible assets (note 3)                                                             1 631       1 658
Investments and loans                                                                     63          84
Interest in associate company                                                              4           6
Deferred taxation                                                                        196         101
Current assets                                                                        13 869      11 887
Inventories                                                                            3 723       3 059
Trade-, loan- and other receivables (note 4)                                           8 209       6 704
Vehicle rental fleet                                                                     363         352
Financial assets                                                                           1           1
Taxation                                                                                  41         395
Bank balances and cash                                                                 1 532       1 376
Assets classified as held-for-sale                                                         -         217
Total assets                                                                          19 532      16 786
Equity and liabilities
Equity and reserves
Share capital and premium                                                              4 245       4 245
Treasury shares                                                                        (245)       (263)
Non-distributable and other reserves                                                     265         231
Retained earnings                                                                      4 083       3 644
Reserves of a disposed business classified as held-for-sale                                -          34
Shareholders for dividend                                                                501         216
Shareholders' equity                                                                   8 849       8 107
Minority shareholders' interest                                                           87          58
Total equity                                                                           8 936       8 165
Non-current liabilities                                                                4 407       2 448
Interest-bearing long-term liabilities                                                 3 539       1 717
Non-interest-bearing long-term liability                                                 207         202
Deferred taxation                                                                        661         529
Current liabilities                                                                    6 189       6 082
Trade and other payables (note 6)                                                      5 024       4 985
Provisions                                                                                 6          41
Interest-bearing liabilities                                                           1 084         946
Taxation                                                                                  66          82
Bank overdraft                                                                             9          28
Liabilities classified as held-for-sale                                                    -          91
Total equity and liabilities                                                          19 532      16 786
Directors' valuation of unlisted investments                                              63          84
Capital expenditure authorised and contracted                                            518         634
Capital expenditure authorised and not yet contracted                                    230         151
Operating lease commitments                                                            2 736       2 657
Net asset value per share (cents)                                                    4 025,5     3 687,8
Gearing ratio (net) (%)                                                                 35,0        14,5



Supplementary information
                                                                                     Audited     Audited
                                                                                   10 months   12 months
                                                                                       ended       ended
                                                                                     30 June   31 August
                                                                                        2012        2011
                                                                                   R million   R million
Reconciliation of headline earnings
Profit attributable to shareholders                                                      877         699
Loss on disposal of property, plant and equipment                                         10           4
Taxation thereon                                                                         (3)         (1)
Headline earnings                                                                        884         702
Number of shares in issue (000)                                                      219 830     219 830
Treasury shares held (000)                                                           (4 032)     (4 310)
Number of shares held outside the Group (000)                                        215 798     215 520
Weighted average number of shares in issue (000)
- basic                                                                              215 742     172 142
- diluted                                                                            217 552     173 932
Headline earnings per share (cents)
- basic                                                                                409,9       407,7
- diluted                                                                              406,4       403,5
Distribution to shareholders (cents)                                                     232         200
- interim                                                                                100         100
- final (proposed)                                                                       132         100

Operating margin (%)                                                                     5,7         6,7

The earnings and headline earnings per share are calculated in R thousands as opposed to R million.



Condensed Group cash flow statement
                                                                                     Audited     Audited
                                                                                   10 months   12 months
                                                                                       ended       ended
                                                                                     30 June   31 August
                                                                                        2012        2011
                                                                                   R million   R million
Cash flows from operating activities                                                   (711)         343
Cash generated by trading                                                              1 800       1 322
(Increase)/decrease in working capital                                                 (778)         384
Cash generated by operations                                                           1 022       1 706
Net movement in instalment sale-, loan- and other receivables                        (1 332)       (697)
Investment income                                                                          4           5
Finance costs - net                                                                    (210)        (92)
Taxation paid                                                                             21       (282)
Cash (utilised in)/available from operating activities                                 (495)         640
Dividends paid                                                                         (216)       (297)
Cash flows from investing activities                                                 (1 160)       (622)
Acquisition of subsidiary companies (note 5)                                           (105)         128
Disposal of subsidiary company                                                           126           -
Investment and loan receipts                                                              23           -
Proceeds on disposal of property, plant and equipment                                     35          12
Additions to property, plant and equipment                                           (1 143)       (722)
Proceeds on disposal of rental fleet vehicles                                            373          43
Additions to rental fleet vehicles                                                     (469)        (83)
Cash flows from financing activities                                                   2 046       1 008
Proceeds on disposal of treasury shares by share incentive                                10          65
trust
Acquisition of shares by share incentive trust                                           (2)           -
Increase in shareholding in subsidiary company                                             -        (12)
Settlement of minority interest in business combination                                    -         (7)
Funding received from minority shareholders                                               20           -
Dividends paid to minority shareholders                                                  (8)           -
Share-based payment instruments settled                                                  (5)           -
Long-term borrowings raised                                                            2 693       1 632
Long-term borrowings repaid                                                            (738)       (588)
Finance lease liabilities raised                                                         421           -
Finance lease liabilities repaid                                                       (345)        (82)

Net increase in cash and cash equivalents                                                175         729
Cash and cash equivalents at beginning of period                                       1 348         757
Cash and cash equivalents at end of period                                             1 523       1 486
Cash included in disposal group held-for-sale                                              -       (138)
Cash and cash equivalents at end of period from                                        1 523       1 348
continuing operations



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, the information required by IAS 34: Interim Financial 
   Reporting, the JSE Listings Requirements and the requirements of the Companies Act of South Africa. 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 2011, except for the adoption of accounting standards 
   and interpretations that became effective during the current period.The adoption of these standards had no 
   material impact on the Group.
   
                                                                                        Audited     Audited
                                                                                      10 months   12 months
                                                                                          ended       ended
                                                                                        30 June   31 August
                                                                                           2012        2011
                                                                                      R million   R million

2. Debtors' costs
   Increase/(decrease) in impairment provision                                               12        (34)
   Bad debts written off                                                                    405         711
                                                                                            417         677
3. Goodwill and intangible assets (restated)
   Goodwill comprises:
   Carrying value at beginning of period                                                  1 376         493
   Arising on acquisitions during the period                                                 20         883
   Carrying value at end of period                                                        1 396       1 376
   Intangible assets comprise:
   Carrying value at beginning of period                                                  1 658         212
   Arising on acquisitions during the period                                                  -       1 482
   Amortisation for the current period                                                     (27)        (36)
   Carrying value at end of period                                                        1 631       1 658

4. Trade-, loan- and other receivables
   Instalment sale- and loan receivables (a)                                              7 253       5 921
   Trade receivables                                                                        659         629
   Total instalment sale-, loan- and trade receivables                                    7 912       6 550
   Less: Impairment provision                                                             (610)       (598)
   Net instalment sale-, loan- and trade receivables                                      7 302       5 952
   Other receivables                                                                        907         752
   Total trade-, loan- and other receivables                                              8 209       6 704
   Provisions as a percentage of total instalment sale-, loan- 
   and trade receivables (%)                                                                7,7         9,1

   In accordance with industry norms, amounts due from instalment sale-, loan- and other receivables after 
   one year are included in current assets as they form part of the normal operating cycle. 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
   In terms of the acquisition agreement of Unitrans Auto, an additional amount of R52 million 
   was paid during the period under review. This additional amount was classified as goodwill and has 
   resulted in a restatement of the provisional amounts recognised in terms of IFRS 3, at 31 August 2011.
   Unitrans Auto acquired a dealership during the period.

   Property, plant and equipment                                                             14
   Other receivables                                                                         16
   Inventories                                                                                6
   Trade and other payables                                                                 (3)
   Fair value of net assets acquired                                                         33
   Payment of additional purchase price                                                      52
   Goodwill                                                                                  20
   Cash consideration                                                                       105
   

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 180 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, the cash value to be received in future, in respect of unissued shares granted to employees and 
   the effect of the convertible bond.

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
   No significant events have occurred in the period between 30 June 2012 and the date of this announcement.



Segmental analysis - business divisions
                                                              Furniture Retail      Financial Services           Cash Retail**
                                                            30 Jun      31 Aug      30 Jun      31 Aug      30 Jun      31 Aug
For the ten months/year ended                                 2012        2011        2012        2011        2012        2011
Revenue                                            Rm        5 327       5 775       2 985       3 314       5 053       4 800
Operating profit                                   Rm          311         315         760         723         177         226
Depreciation                                       Rm           50          57          22          24          55          53
Total assets                                       Rm        1 145       1 374       7 815       5 965       1 851       1 517
Total current liabilities                          Rm        1 154       1 547         257          80       1 190       1 006
Capital expenditure                                Rm           93         114         209          16          87          48
Operating margin                                    %          5,8         5,5        25,5        21,8         3,5         4,7
Total sale of merchandise                          Rm        4 563       4 963                               5 016       4 740
Share of Group sale of merchandise                  %         22,3        42,3                                24,5        40,4
Credit sales                                       Rm        2 976       3 181
Percentage of total                                 %         65,2        64,1
Cash sales                                         Rm        1 587       1 782                               5 016       4 740
Percentage of total                                 %         34,8        35,9                               100,0       100,0
Number of stores                                             1 022         988       1 022         988         164         155
Revenue per store                                R000        5 212       5 845       2 921       3 354      30 811      30 968
Retail square meterage                                     505 634     496 372      56 180      55 152     315 606     333 333
Revenue per square metre                         Rand       10 535      11 634                              16 010      14 400
Number of employees                                          9 671       9 035       5 104       4 809       5 246       5 244
Revenue per employee                             R000          551         639         585         689         963         915
Instalment sale and other loan receivables         Rm                                7 253       5 921
Impairment provision                               Rm                                  557         545           9          22
Bad debts written off                              Rm                                  404         711
Receivables' arrears                               Rm                                1 208       1 058
Deposit rate on credit sales                        %                                  3,2         5,9
Collection rate - furniture                         %                                  6,6         6,6
Collection rate - personal loans                    %                                  5,8         5,2

#Elimination of interdivisional origination fees.
**Includes Hifi Corp, Incredible Connection and Steinbuild
+Restated as described in note 5

Segmental analysis - business divisions (continued)



                                                           Unitrans Automotive             Blake                Corporate
                                                            30 Jun      31 Aug      30 Jun      31 Aug      30 Jun      31 Aug
For the ten months/year ended                                 2012        2011        2012        2011        2012        2011+
Revenue                                            Rm       12 194       2 154         228         245      (503)#      (547)#
Operating profit                                   Rm          411          57          32          30       (246)       (294)
Depreciation                                       Rm          113          17          13          16          27          26
Total assets                                       Rm        5 379       4 864         115         103       3 227       2 746
Total current liabilities                          Rm        2 358       2 329          23          22       1 207       1 098
Capital expenditure                                Rm          488          86          21          10         714         531
Operating margin                                    %          3,4         2,7        14,0        12,2
Total sale of merchandise                          Rm       10 867       2 037
Share of Group sale of merchandise                  %         53,2        17,3
Credit sales                                       Rm
Percentage of total                                 %
Cash sales                                         Rm       10 867       2 037
Percentage of total                                 %        100,0       100,0
Number of stores                                               115          84
Revenue per store                                R000      106 035      25 643
Retail square meterage                                     340 486     333 599
Revenue per square metre                         Rand       35 814       6 457
Number of employees                                          4 538       4 396       1 567       1 646         625         588
Revenue per employee                             R000        2 687         490         146         149
Instalment sale and other loan receivables         Rm
Impairment provision                               Rm           44          31
Bad debts written off                              Rm                                    1          -
Receivables' arrears                               Rm
Deposit rate on credit sales                        %
Collection rate - furniture                         %
Collection rate - personal loans                    %

#Elimination of interdivisional origination fees.
**Includes Hifi Corp, Incredible Connection and Steinbuild
+Restated as described in note 5


Segmental analysis - business divisions (continued)



                                                         Discontinued operations (Abra)               Group
                                                                     30 Jun      31 Aug         30 Jun      31 Aug   
For the ten months/year ended                                          2012        2011           2012        2011+
Revenue                                            Rm                     -           -         25 284      15 741
Operating profit                                   Rm                     -           -          1 445       1 057
Depreciation                                       Rm                     -           -            280         193
Total assets                                       Rm                     -         217         19 532      16 786
Total current liabilities                          Rm                     -           -          6 189       6 082
Capital expenditure                                Rm                     -           -          1 612         805
Operating margin                                    %                                              5,7         6,7
Total sale of merchandise                          Rm                                           20 446      11 740
Share of Group sale of merchandise                  %                                            100,0       100,0
Credit sales                                       Rm                                            2 976       3 181
Percentage of total                                 %                                             14,6        27,1
Cash sales                                         Rm                                           17 470       8 559
Percentage of total                                 %                                             85,4        72,9
Number of stores                                                                                 1 301       1 227
Revenue per store                                R000                                           19 434      12 829
Retail square meterage                                                                       1 217 906   1 218 456
Revenue per square metre                         Rand                                           20 760      12 919
Number of employees                                                                             26 751      25 718
Revenue per employee                             R000                                              945         612
Instalment sale and other loan receivables         Rm                                            7 253       5 921
Impairment provision                               Rm                                              610         598
Bad debts written off                              Rm                                              405         711
Receivables' arrears                               Rm                                            1 208       1 058
Deposit rate on credit sales                        %                                              3,2         5,9
Collection rate - furniture                         %                                              6,6         6,6
Collection rate - personal loans                    %                                              5,8         5,2

#Elimination of interdivisional origination fees.
**Includes Hifi Corp, Incredible Connection and Steinbuild
+Restated as described in note 5

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,
M Lock, M Matlwa, MJ Shaw, JH Schindehütte, GZ Steffens

Non-executive directors Dr D Konar, MJ Jooste, DM van der Merwe, AB La Grange

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 auditor Deloitte & Touche

For additional information visit www.jdgroup.co.za
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