Wrap Text
Results for the half-year ended 30 September 2012
The Foschini Group Limited unaudited interim condensed consolidated
results
Registration number: 1937/009504/06
Share codes: TFG-TFGP
ISIN codes: ZAE000148466 – ZAE000148516
The following are The Foschini Group Limited’s results for the
half-year ended 30 September 2012.
This report has not been audited or reviewed by the company’s
auditors.
SALIENT FEATURES
* Retail turnover up 12,6% to R6,1 billion
* Headline earnings per share up 17,1% to 400,5 cents
* Diluted headline earnings per share up 18,8% to 396,1 cents
* Interim dividend increased by 24,2% to 236,0 cents per share
* Continued growth in new accounts
* Sustained strong financial position
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Sept. 2012 Sept. 2011 March 2012
Unaudited Unaudited Audited
Rm Rm Rm
ASSETS
Non-current assets
Property, plant and
equipment 1 457,3 1 208,1 1 313,2
Goodwill and intangible
assets 118,6 36,9 109,8
Staff housing loans - 0,6 -
RCS Group private label card
receivables 534,2 256,1 465,1
RCS Group loan receivables 632,6 553,9 610,1
Participation in export
partnerships 38,3 61,7 53,4
Deferred taxation asset 265,9 242,2 254,3
---------- ---------- ----------
3 046,9 2 359,5 2 805,9
---------- ---------- ----------
Current assets
Inventory (note 9) 2 178,1 1 843,3 2 155,0
Trade receivables – retail 4 809,3 4 155,8 4 569,9
RCS Group private label card
receivables 2 136,6 1 930,5 1 917,8
RCS Group loan receivables 477,3 394,1 457,5
Other receivables and
452,4 266,5 226,4
prepayments
Participation in export
partnerships 17,7 11,4 13,0
Preference share investment - 200,0 -
Cash 875,4 468,6 710,9
---------- ---------- ----------
10 946,8 9 270,2 10 050,5
---------- ---------- ----------
Total assets 13 993,7 11 629,7 12 856,4
========== ========== ==========
EQUITY AND LIABILITIES
Equity attributable to
equity holders of The
Foschini Group Limited 6 483,5 5 763,0 6 293,1
Non-controlling interest 630,4 513,4 571,1
-------- -------- --------
Total equity 7 113,9 6 276,4 6 864,2
-------- -------- --------
Non-current liabilities
Interest-bearing debt 719,7 225,8 1 006,8
RCS Group external funding 1 750,0 1 010,0 1 140,2
Non-controlling interest
51,8 214,4 242,4
loans
Operating lease liability 168,5 148,3 159,5
Deferred taxation liability 89,1 173,2 100,5
Post-retirement defined
97,9 91,0 97,9
benefit medical aid plan
---------- ---------- ----------
2 877,0 1 862,7 2 747,3
---------- ---------- ----------
Current liabilities
Interest-bearing debt 1 175,0 1 134,4 722,1
RCS Group external funding 798,2 490,0 626,2
Trade and other payables 1 978,8 1 754,2 1 827,0
Operating lease liability 18,5 12,0 12,3
Taxation payable 32,3 100,0 57,3
---------- ---------- ----------
4 002,8 3 490,6 3 244,9
---------- ---------- ----------
Total liabilities 6 879,8 5 353,3 5 992,2
---------- ---------- ----------
Total equity and liabilities 13 993,7 11 629,7 12 856,4
========== ========== ==========
CONDENSED CONSOLIDATED
INCOME STATEMENT
6 months 6 months
ended ended Year ended
30.09.2012 30.09.2011 31.03.2012
Unaudited Unaudited % Audited
Rm Rm change Rm
Revenue (note 4) 7 749,9 6 815,1 14 530,8
======= ======= =======
Retail turnover 6 112,2 5 428,3 12,6 11 630,5
Cost of turnover
(note 5) (3 553,7) (3 156,0) (6 750,1)
------- ------- -------
Gross profit 2 558,5 2 272,3 4 880,4
Interest income
(note 6) 966,4 813,0 1 712,1
Dividend income - 5,7 9,9
Other revenue (note
7) 671,3 568,1 1 178,3
Trading expenses
(note 8) (2 782,1) (2 415,1) (4 994,2)
--------- --------- ---------
Operating profit
before finance
charges 1 414,1 1 244,0 13,7 2 786,5
Finance cost (156,0) (137,1) (284,9)
--------- --------- ------ ---------
Profit before tax 1 258,1 1 106,9 13,7 2 501,6
Income tax expense (364,1) (359,7) (809,8)
--------- --------- ------ ---------
Profit for the
period 894,0 747,2 1 691,8
========= ========= =========
Attributable to:
Equity holders of
The Foschini Group
Limited 834,7 699,0 19,4 1 582,1
Non-controlling
interest 59,3 48,2 109,7
--------- --------- ---------
Profit for the
period 894,0 747,2 1 691,8
========= ========= =========
EARNINGS PER
ORDINARY SHARE
(CENTS)
Basic 400,1 341,6 17,1 771,0
Headline 400,5 341,9 17,1 772,0
Diluted (basic) 395,8 333,1 18,8 765,1
Diluted (headline) 396,1 333,3 18,8 766,1
Weighted average
ordinary shares in
issue (millions) 208,6 204,6 205,2
SUPPLEMENTARY INFORMATION
Sept. 2012 Sept. 2011 March 2012
Unaudited Unaudited Audited
Net ordinary shares in issue
(millions) 209,6 204,6 206,4
Weighted average ordinary
shares in issue (millions) 208,6 204,6 205,2
Tangible net asset value per
ordinary share (cents) 3 036,7 2 798,9 2 995,8
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
6 months 6 months
ended ended Year ended
30.09.2012 30.09.2012 31.03.2012
Unaudited Unaudited Audited
Rm Rm Rm
Profit for the
period 894,0 747,2 1 691,8
---------- ---------- ----------
OTHER COMPREHENSIVE
INCOME
Movement in
effective portion of
changes in fair
value of cash flow
hedges (4,6) 82,2 7,2
Foreign currency
translation reserve
movements 7,7 5,7 0,3
Movement in
insurance cell
reserves 0,1 0,1 -
---------- ---------- ----------
Other comprehensive
income for the
period before tax 3,2 88,0 7,5
Deferred tax on
movement in
effective portion of
changes in fair
value of cash flow
hedges 1,3 (26,9) (2,0)
---------- ---------- ----------
Other comprehensive
income for the
period, net of tax 4,5 61,1 5,5
---------- ---------- ----------
Total comprehensive
income for the
period 898,5 808,3 1 697,3
========== ========== ==========
Attributable to:
Equity holders of
The Foschini Group
Limited 839,2 760,1 10,4 1 587,6
Non-controlling
interest 59,3 48,2 109,7
---------- ---------- ----------
Total comprehensive
income for the
period 898,5 808,3 1 697,3
========== ========== ==========
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Equity
holders of
The Non-
Foschini controlling Total
Group interest equity
Limited
Rm Rm Rm
Equity at 31 March 2011 5 462,9 485,6 5 948,5
Profit for the period 699,0 48,2 747,2
Other comprehensive income
Movement in effective portion
of changes in fair value of
cash flow hedges 82,2 - 82,2
Foreign currency translation
reserve movements 5,7 - 5,7
Movement in insurance cell
reserves 0,1 - 0,1
Deferred tax on movement in
effective portion of changes
in fair value of cash flow
hedges (26,9) - (26,9)
---------- ---------- ----------
Total comprehensive income
for the half-year 760,1 48,2 808,3
Contributions by and
distributions to owners
Share-based payments reserve
movements 39,9 - 39,9
Dividends paid (435,4) (20,4) (455,8)
Shares purchased in terms of
share incentive schemes (76,6) - (76,6)
Proceeds on delivery of
shares by share trust 12,1 - 12,1
---------- ---------- ----------
Equity at 30 September 2011 5 763,0 513,4 6 276,4
Profit for the period 883,1 61,5 944,6
Other comprehensive income
Movement in effective portion
of changes in fair value of
cash flow hedges (75,0) - (75,0)
Foreign currency translation
reserve movements (5,4) - (5,4)
Movement in insurance cell
reserves (0,1) - (0,1)
Deferred tax on movement in
effective portion of changes
in fair value of cash flow
hedges 24,9 - 24,9
---------- ---------- ----------
Total comprehensive income
for the half-year 827,5 61,5 889,0
Contributions by and
distributions to owners
Share-based payments reserve
movements 32,3 - 32,3
Dividends paid (393,2) - (393,2)
Sale of subsidiary - (3,8) (3,8)
Shares purchased in terms of
share incentive schemes (0,6) - (0,6)
Proceeds on delivery of
shares by share trust 42,3 - 42,3
Current tax on shares
purchased 7,3 - 7,3
Deferred tax on shares
purchased 14,5 - 14,5
---------- ---------- ----------
Equity at 31 March 2012 6 293,1 571,1 6 864,2
Profit for the period 834,7 59,3 894,0
Other comprehensive income
Movement in effective portion
of changes in fair value of
cash flow hedges (4,6) - (4,6)
Foreign currency translation
reserve movements 7,7 - 7,7
Movement in insurance cell
reserves 0,1 - 0,1
Deferred tax on movement in
effective portion of changes
in fair value of cash flow
hedges 1,3 - 1,3
---------- ---------- ----------
Total comprehensive income
for the half-year 839,2 59,3 898,5
Contributions by and
distributions to owners
Share-based payments reserve
movements 30,4 - 30,4
Dividends paid (558,9) - (558,9)
Shares purchased in terms of
share incentive schemes (145,5) - (145,5)
Proceeds on delivery of
shares by share trust 1,2 - 1,2
Current tax on shares
purchased 8,0 - 8,0
Deferred tax on shares
purchased 16,0 - 16,0
---------- ---------- ----------
Equity at 30 September 2012 6 483,5 630,4 7 113,9
========== ========== ==========
6 months 6 months
ended ended Year ended
30.09.2012 30.09.2011 31.03.2012
Unaudited Unaudited Audited
DIVIDEND DECLARED PER
ORDINARY SHARE (CENTS)
Interim 236,0 190,0 190,0
Final - - 265,0
------ ------ ------
Total 236,0 190,0 455,0
------ ------ ------
Dividend cover 1,7 1,8 1,7
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
6 months 6 months
ended ended Year ended
30.09.2012 30.09.2011 31.03.2012
Unaudited Unaudited Audited
Rm Rm Rm
Cash flows from operating
activities
Operating profit before
working capital changes (note
10) 1 615,8 1 441,2 3 180,4
Increase in working capital (666,9) (569,3) (1 568,4)
---------- ---------- ----------
Cash generated by operations 948,9 871,9 1 612,0
Interest income 10,4 7,3 16,0
Finance cost (156,0) (137,1) (284,9)
Taxation paid (386,8) (344,6) (880,9)
Dividend income - 5,7 9,9
Dividends paid (558,9) (455,8) (849,0)
---------- ---------- ----------
Net cash outflows from
operating activities (142,4) (52,6) (376,9)
---------- ---------- ----------
Cash flows from investing
activities
Purchase of property, plant
and equipment (300,7) (275,7) (541,1)
Purchase of goodwill and
intangible assets (1,7) - -
Acquisition of assets through
business combinations (note
14) (15,9) - (82,5)
Proceeds from sale of
property, plant and equipment 2,1 4,3 6,5
Sale of subsidiary - - 0,1
Redemption of preference
share investment - - 200,0
Repayment of participation in
export partnerships 10,4 5,8 12,5
Repayment of staff housing
loans - 0,1 0,7
---------- ---------- ----------
Net cash outflows from
investing activities (305,8) (265,5) (403,8)
---------- ---------- ----------
Cash flows from financing
activities
Proceeds on delivery of
shares by share trust 1,2 12,1 54,4
Shares purchased in terms of
share incentive schemes (145,5) (76,6) (77,2)
(Decrease)increase in non-
controlling interest loans (190,6) 70,1 98,1
Increase in RCS Group
external funding 781,8 592,0 858,4
Increase(decrease) in
interest-bearing debt 165,8 (149,4) 219,3
---------- ---------- ----------
Net cash inflows from
financing activities 612,7 448,2 1 153,0
---------- ---------- ----------
Net increase in cash during
the period 164,5 130,1 372,3
Cash at the beginning of the
period 710,9 338,5 338,5
Effect of exchange rate
fluctuations on cash held - - 0,1
---------- ---------- ----------
Cash at the end of the period 875,4 468,6 710,9
========== ========== ==========
NOTES
These results were prepared by the TFG Finance and Administration
department of The Foschini Group Limited acting under supervision
of Ronnie Stein CA (SA), CFO of The Foschini Group Limited.
1. The unaudited interim condensed consolidated results for the
half-year ended 30 September 2012 have been prepared in accordance
with the presentation and disclosure requirements of the South
African Companies Act (No. 71 of 2008, as amended), and IAS 34
Interim Financial Reporting, using the group’s accounting policies,
that are in line with the measurement and recognition principles of
International Financial Reporting Standards (IFRS)and the AC 500
Standards as issued by the Accounting Practices Board or its
successor and have been consistently applied with those applied at
31 March 2012.
2. These financial statements incorporate the financial statements
of the company, all its subsidiaries and all entities over which it
has operational and financial control.
3. Included in share capital are 24,0 (Sept 2011: 24,0) million
shares which are owned by a subsidiary of the company, and 6,9
(Sept 2011: 11,8) million shares which are owned in terms of the
share incentive schemes. These have been eliminated on
consolidation.
6 months 6 months Year ended
ended ended 31.03.2012
30.09.2012 30.09.2011
Unaudited Unaudited Audited
Rm Rm Rm
4. REVENUE
Retail turnover 6 112,2 5 428,3 11 630,5
Interest income (refer note
6) 966,4 813,0 1 712,1
Dividend income - 5,7 9,9
Other revenue (refer note 7) 671,3 568,1 1 178,3
------- ------- -------
7 749,9 6 815,1 14 530,8
------- ------- -------
5. COST OF TURNOVER
Cost of goods sold (3 261,8) (2 893,7) (6 097,5)
Cost of purchase, conversion
and other costs (291,9) (262,3) (652,6)
--------- --------- ---------
(3 553,7) (3 156,0) (6 750,1)
--------- --------- ---------
6. INTEREST INCOME
Trade receivables – retail 478,1 405,5 853,7
Receivables - RCS Group 477,9 400,2 842,4
Sundry 10,4 7,3 16,0
------- ------- -------
966,4 813,0 1 712,1
------- ------- -------
7. OTHER REVENUE
Merchants’ commission 21,3 17,1 36,4
Club income 168,4 150,9 297,5
Customer charges income 229,4 200,6 411,5
Insurance income 216,3 170,3 372,2
Cellular income – one2one
airtime product 33,4 26,7 52,8
Sundry income 2,5 2,5 7,9
------- ------- -------
671,3 568,1 1 178,3
------- ------- -------
8. TRADING EXPENSES
Depreciation (157,6) (149,6) (311,2)
Amortisation (0,1) (0,2) (0,4)
Employee costs: normal (963,9) (865,2) (1 857,4)
Employee costs: share-based
payments (30,4) (39,9) (72,2)
Occupancy costs: normal (575,9) (494,2) (1 041,9)
Occupancy costs: operating
lease liability adjustment (15,2) (14,2) (25,7)
Net bad debt (443,5) (345,4) (721,2)
Other operating costs (595,5) (506,4) (964,2)
---------- ---------- ----------
(2 782,1) (2 415,1) (4 994,2)
---------- ---------- ----------
9. INVENTORY
Merchandise 1 918,0 1 692,7 1 990,0
Raw materials 125,5 75,1 101,4
Goods in transit 88,5 54,5 30,2
Shopfitting stock 44,4 17,7 30,9
Consumables 1,7 3,3 2,5
---------- ---------- ----------
2 178,1 1 843,3 2 155,0
---------- ---------- ----------
10. OPERATING PROFIT BEFORE
WORKING CAPITAL CHANGES
Profit before tax 1 258,1 1 106,9 2 501,6
Finance cost 156,0 137,1 284,9
---------- ---------- ----------
Operating profit before
finance charges 1 414,1 1 244,0 2 786,5
Interest income – sundry (10,4) (7,3) (16,0)
Dividend income - (5,7) (9,9)
Non-cash items 212,1 210,2 419,8
---------- ---------- ----------
Operating profit before
working capital changes 1 615,8 1 441,2 3 180,4
---------- ---------- ----------
11. Reconciliation of profit for the period to headline earnings
Profit for the period
attributable to equity
holders of The Foschini Group
Limited 834,7 699,0 1 582,1
Adjusted for the after-tax
effect of:
Profit on disposal of
property, plant and equipment (0,1) (0,2) (0,3)
Loss on disposal of property,
plant and equipment 0,8 0,7 2,4
---------- ---------- ----------
Headline earnings 835,4 699,5 1 584,2
---------- ---------- ----------
12. Contingent liabilities
The group has provided RCS Group with a total facility of R835,3
million in respect of their domestic medium-term notes (DMTN)
programme. As at 30 September, the utilised portion of this
facility was nil. The unused liquidity facility at this date was
R835,3 million, which constitutes a contingent liability.
13. Related parties
Related party transactions similar to those disclosed in the
group's annual financial statements for the year ended 31 March
2012 took place during the period.
14. Business combinations
G-Star
As a consequence of the group's acquisition of Fabiani, with effect
from 1 April 2012, the group has acquired two G-Star franchise
stores in South Africa. These stores will be managed together with
Fabiani stores.
Fair value of assets and liabilities assumed through this business
combination:
Property, plant and equipment
4,0
Inventory
4,7
--------
Total identifiable net assets
8,7
Trade mark
7,2
--------
Total purchase price
15,9
========
GROUP SEGMENTAL ANALYSIS
Central
Retail TFG and
trading Financial shared Total
divisions Services services retail RCS Group
6 months ended
Unaudited Unaudited Unaudited Unaudited Unaudited
30.09.2012
Rm Rm Rm Rm Rm
External
6 112,2 385,6 35,8 6 533,6 249,9
revenue *
External
interest
- 478,1 6,8 484,9 481,5
income
Inter-segment
34,4 34,4 5,4
revenue
External
(50,7) (50,7) (105,3)
finance cost
Depreciation
and
(148,3) (148,3) (9,4)
amortisation
Segmental
profit before
1 308,1 214,5 (393,5) 1 129,1 185,6
tax
Other material
non-cash items
Foreign
exchange
(11,0)
transactions
Share-based
(30,4)
payments
Operating
lease
liability
(15,2)
adjustment
------- -------
Group profit
1 072,5 185,6
before tax
------- -------
Capital
300,2 4,5
expenditure
9 652,9 4 340,8
Segment assets
Segment
liabilities 3 875,3 3 004,5
Central
Retail TFG and
trading Financial shared Total
divisions Services services Retail RCS Group
6 months ended
Unaudited Unaudited Unaudited Unaudited Unaudited
30.09.2011
Rm Rm Rm Rm Rm
External
5 428,3 327,1 34,9 5 790,3 211,8
revenue *
External
interest
- 405,5 4,2 409,7 403,3
income
Inter-segment
37,9 37,9 4,5
revenue
External
(52,5) (52,5) (84,6)
finance cost
Depreciation
and
(142,2) (142,2) (7,6)
amortisation
Segmental
profit before
1 178,8 213,6 (355,8) 1 036,6 151,9
tax
Other material
non-cash items
Foreign
exchange
(27,5)
transactions
Share-based
(39,9)
payments
Operating
lease
liability
(14,2)
adjustment
------- -------
Group profit
955,0 151,9
before tax
------- -------
Capital
263,0 12,7
expenditure
8 231,9 3 397,8
Segment assets
Segment
3 029,9 2 323,4
liabilities
Central
Retail TFG and
trading Financial shared Total
divisions Services services Retail RCS Group
Year ended
Audited Audited Audited Audited Audited
31.03.2012
Rm Rm Rm Rm Rm
External
11 630,5 673,8 70,6 12 374,9 443,8
revenue *
External
interest
- 853,7 10,0 863,7 848,4
income
Inter-segment
126,5 126,5 8,9
revenue
External
(105,7) (105,7) (179,2)
finance cost
Depreciation
and
(295,8) (295,8) (15,8)
amortisation
Segmental
profit before
2 610,7 395,4 (757,3) 2 248,8 345,2
tax
Other material
non-cash items
Foreign
exchange
5,5
transactions
Share-based
(72,2)
payments
Operating
lease
liability
(25,7)
adjustment
------- -------
Group profit
2 156,4 345,2
before tax
------- -------
Capital
525,7 21,7
expenditure
8 998,3 3 858,1
Segment assets
Segment
3 350,5 2 641,7
liabilities
Consolidated Consolidated
6 months 6 months Year ended
30.09.2012 30.09.2011 31.03.2012
Unaudited Unaudited Audited
Rm Rm Rm
External revenue 6 783,5 6 002,1 12 818,7
External interest income 966,4 813,0 1 712,1
-------- -------- --------
Total revenue* 7 749,9 6 815,1 14 530,8
-------- -------- --------
Inter-segment revenue 39,8 42,4 135,4
External finance cost (156,0) (137,1) (284,9)
Depreciation and
amortisation (157,7) (149,8) (311,6)
Segmental profit before
tax 1 314,7 1 188,5 2 594,0
Other material non-cash
items
Foreign exchange
(11,0) (27,5) 5,5
transactions
Share-based payments (30,4) (39,9) (72,2)
Operating lease liability
(15,2) (14,2) (25,7)
adjustment
-------- -------- --------
Group profit before tax 1 258,1 1 106,9 2 501,6
-------- -------- --------
Capital expenditure 304,7 275,7 547,4
Segment assets 13 993,7 11 629,7 12 856,4
Segment liabilities 6 879,8 5 353,3 5 992,2
---------- -------- --------
* includes retail turnover, interest income, dividend income and
other income.
COMMENTARY
GROUP OVERVIEW
Notwithstanding the strong comparative base established over the
last few years retail turnover increased by 12,6% to R6,1 billion
while headline earnings per share increased by 17,1% to 400,5
cents. Diluted headline earnings per share increased by 18,8% to
396,1 cents. The group’s operating margin for the period increased
to 23,1% from 22,9%, moving closer to our medium-term target of
25%.
The interim dividend has been increased by 24,2% to 236,0 cents per
share.
The strategic initiatives undertaken by our group over the last few
years continue to positively impact the group’s performance,
notwithstanding the substantial change management challenges they
bring.
Buying efficiencies achieved during the year were once again passed
on to our customers resulting in the gross margin being the same as
the previous year.
The group continued to grow trading space in certain of our formats
by opening a further 70 stores.At the end of the period the group
was trading out of 1 920 stores, with an increase in trading area
of 2,6% during the period. Full year trading space growth is
expected to be approximately 7%.
MERCHANDISE CATEGORIES
Total sales have grown by 12,6% over the previous period with
growths in the various merchandise categories as follows:
- Clothing 13,0%
- Jewellery 11,5%
- Cosmetics 11,4%
- Homewares 22,1%
- Cellphones 5,5%
Same store turnover grew by 6,6% whilst product inflation averaged
approximately 5% for the period. Cash sales as a percentage of
total sales increased to 39,0% from 36,9%.
Clothing - turnover growth of 13,0% in clothing was satisfactory.
Had we not experienced logistical problems in the supply chain in
ladieswear, turnover growth would have been better. Rates of sale
of new merchandise have remained at good levels.
Clothing old store growth was 6,4%.
Jewellery - turnover continued to improve with turnover growth this
period of 11,5% indicating that our current strategies are working
well.
Jewellery old store growth was 7,0%.
Cosmetics - performed well in a competitive environment with growth
this period of 11,4%.
Cosmetics old store growth was 8,0%.
Homewares - the focus on merchandise efficiencies has proven to be
successful and turnover growth of 22,1% is excellent in this
competitive sector.
Homewares and furniture old store growth was 13,4%.
Cellphones - during the period we experienced difficulty in
procuring certain popular product lines from our suppliers. This,
together with the increase in pricing of certain handset models,
negatively impacted turnover. As a result, cellphone turnover
growth of 5,5% was disappointing.
Same store cellphone turnover growth was 2%.
FINANCIAL SERVICES
TFG Financial Services’ retail debtors’ book, which amounts to R4,8
billion, increased by 5,2% since year end, reflecting the impact of
good account growth and the increase in the number of 12-month
accounts. In line with management expectations, bad debt as a
percentage of closing debtors’ book increased to 10,3% from 9,4% at
the year end. Looking forward it appears that the bad debt should
moderate in the second half of the year.
RCS GROUP
The RCS Group in which TFG holds 55% with the balance being held by
The Standard Bank of South Africa Limited, is an operationally
independent consumer finance business that provides a broad range
of financial services under its own brand in South Africa, Namibia
and Botswana. It is structured into two operating business units,
namely transactional finance and fixed term finance. The
transactional finance business comprises the RCS general-purpose
card and other private label card programmes, whilst the fixed term
finance business comprises RCS personal loans.
The RCS Group performed well during the period with net profit
before tax increasing by 22,2% to R185,6 million. Net bad debt as
a percentage of debtors book at 5,7% is satisfactory and indicates
a conservative approach to debtors’ management. Provisions as a
percentage of non-performing loans (NPL coverage) remains at an
appropriate level of 123,0%. The debtors’ book of R3,8 billion
increased by 9,6% since the year end as advances to customers
increased.
The Domestic Medium-Term Note (DMTN) programme continues to be
successfully implemented with funding being raised in a mixture of
long- and short term paper. The RCS Group currently has surplus
funding of approximately R1,5 billion which is available to support
its future growth.
It remains our medium-term intention to reduce our holding in this
subsidiary to below 50%.
AFRICA EXPANSION
The group currently trades out of 98 stores situated outside of
South Africa, with 62 in Namibia, 16 in Botswana, 12 in Zambia, 2
in Lesotho, 4 in Swaziland and 2 in Nigeria. We believe that
expansion into the rest of Africa is a longer term growth strategy
and over the next two years a further 56 stores are planned to be
opened in the countries where we already operate as well as in
Mozambique and Ghana.
PROSPECTS
For the first five weeks of the second half, retail turnover has
continued at similar levels to the first half. Notwithstanding the
challenging economic environment, we remain confident that we can
again deliver a satisfactory result for the full year, albeit
against a strong base. As always, the second half of the year is
heavily dependent on Christmas trading which will largely determine
the performance of the group in the second half.
We expect to open a further 102 stores in the second half.
PREFERENCE DIVIDEND ANNOUNCEMENT (SEPTEMBER 2012)
Dividend no. 152 of 3,25% (6,5 cents per share) (gross) in respect
of the six months ending 31 March 2013 has been declared from
income reserves, payable on Monday, 25 March 2013 to holders of
6,5% preference shares recorded in the books of the company at the
close of business on Friday, 22 March 2013.
The last day to trade (“cum” the dividend) in order to participate
in the dividend will be Thursday, 14 March 2013. The Foschini Group
Limited preference shares will commence trading “ex” the dividend
from the commencement of business on Friday, 15 March 2013 and the
record date, as indicated, will be Friday, 22 March 2013.
Preference shareholders should take note that share certificates
may not be dematerialised or rematerialised during the period
Friday, 15 March 2013 to Friday, 22 March 2013, both dates
inclusive.
In terms of the Dividends Tax effective 1 April 2012, and the
amendments to section 11.17 of the JSE Listings Requirements, the
following additional information is disclosed:
1) Local dividend tax rate is 15%;
2) No STC credits were utilised in determining the net dividend;
3) The withholding tax, if applicable at the rate of 15%, will
result in a net cash dividend per share of 5,52500 cents
4) The issued preference share capital of The Foschini Group
Limited is 200 000 shares at 8 November 2012 ; and
5) The Foschini Group Limited’s tax reference number is
9925/133/71/3P.
INTERIM ORDINARY DIVIDEND ANNOUNCEMENT (SEPTEMBER 2012)
The directors have declared a gross interim ordinary dividend of
236,0 cents per ordinary share from income reserves, for the period
ended 30 September 2012, payable on Monday, 7 January 2013 to
ordinary shareholders recorded in the books of the company at the
close of business on Friday, 4 January 2013.
The last day to trade (“cum” the dividend) in order to participate
in the dividend will be Thursday, 27 December 2012. The Foschini
Group Limited ordinary shares will commence trading “ex” the
dividend from the commencement of business on Friday, 28 December
2012 and the record date, as indicated, will be Friday, 4 January
2013.
Ordinary shareholders should take note that share certificates may
not be dematerialised or rematerialised during the period Friday,
28 December 2012 to Friday, 4 January 2013, both dates inclusive.
In terms of the Dividends Tax effective 1 April 2012, and the
amendments to section 11.17 of the JSE Listings Requirements, the
following additional information is disclosed:
1) Local dividend tax rate is 15%;
2) No STC credits were utilised in determining the net dividend;
3) The withholding tax, if applicable at the rate of 15%, will
result in a net cash dividend per share of 200,60000 cents;
4) The issued gross ordinary share capital of The Foschini Group
Limited is 240 498 241 shares at 8 November 2012; and
5) The Foschini Group Limited’s tax reference number is
9925/133/71/3P.
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Signed on behalf of the Board
D M Nurek, Chairman A D Murray, CEO
Cape Town
8 November 2012
Non-executive directors:
D M Nurek (Chairman), Prof F Abrahams, S E Abrahams, W V Cuba, M
Lewis, E Oblowitz, N V Simamane
Executive directors:
A D Murray, R Stein, P S Meiring
Company secretary:
D Sheard
Registered office:
Stanley Lewis Centre, 340 Voortrekker Road, Parow East, 7500
Transfer secretaries:
Computershare Investor Services (Pty) Ltd, Ground Floor, 70
Marshall Street, Johannesburg, 2001
Sponsor:
UBS South Africa (Pty) Ltd
Visit our website at http://www.tfg.co.za/
Date: 08/11/2012 02:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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