Wrap Text
Reviewed preliminary condensed consolidated results for the year ended 31 March 2013
The Foschini Group Limited
Reviewed Preliminary Condensed Consolidated Results for the Year
Ended 31 March 2013
Registration number 1937/009504/06
Share codes: TFG-TFGP
ISIN codes: ZAE000148466 – ZAE000148516
The following condensed consolidated results of The Foschini Group
Limited for the year ended 31 March 2013 have been reviewed by the
company’s auditors, KPMG Inc. Their unqualified review report is
available for inspection at the company’s registered office. 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.
SALIENT FEATURES
* Retail turnover up 10,9% to R12,9 billion
* Headline earnings per share up 11,2% to 858,6 cents
* Total dividend for the year increased by 11,2% to 506,0 cents
per share
* Continued new account growth
* Sustained strong financial position
* Continued market share gains
CONDENSED CONSOLIDATED INCOME STATEMENT
2013 2012 % Change
Reviewed Audited
Rm Rm
Revenue (note 4) 16 285,0 14 530,8
======= =======
Retail turnover 12 896,4 11 630,5 10,9
Cost of turnover (note 5) (7 492,3) (6 750,1)
-------- --------
Gross profit 5 404,1 4 880,4
Interest income (note 6) 1 996,6 1 712,1
Dividend income - 9,9
Other revenue (note 7) 1 392,0 1 178,3
Trading expenses (note 8) (5 751,1) (4 994,2)
-------- --------
Operating profit before finance 3 041,6 2 786,5
charges
Finance costs (327,9) (284,9)
-------- --------
Profit before tax 2 713,7 2 501,6
Income tax expense (787,1) (809,8)
-------- --------
Profit for the year 1 926,6 1 691,8 13,9
======== ========
Attributable to:
Equity holders of The Foschini
Group Limited 1 792,0 1 582,1 13,3
Non-controlling interest 134,6 109,7
--------- ---------
Profit for the year 1 926,6 1 691,8
========= =========
EARNINGS PER ORDINARY SHARE (cents)
- Basic 856,4 771,0 11,1
- Headline 858,6 772,0 11,2
- Diluted (basic) 849,1 765,1 11,0
- Diluted (headline) 851,3 766,1 11,1
Weighted average ordinary shares in
issue (millions) 209,2 205,2
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
2013 2012
Reviewed Audited
Rm Rm
ASSETS
Non-current assets
Property, plant and equipment 1 548,4 1 313,2
Goodwill and intangible assets 120,3 109,8
RCS Group card receivables 856,4 465,1
RCS Group loan receivables 643,7 610,1
Participation in export partnerships 30,0 53,4
Deferred taxation asset 304,7 254,3
-------- --------
3 503,5 2 805,9
-------- --------
Current assets
Inventory (note 9) 2 444,0 2 155,0
Trade receivables – retail 5 207,7 4 569,9
RCS Group card receivables 2 250,0 1 917,8
RCS Group loan receivables 460,6 457,5
Other receivables and prepayments 594,3 226,4
Participation in export partnerships 18,4 13,0
Cash 908,1 710,9
-------- --------
11 883,1 10 050,5
-------- --------
Total assets 15 386,6 12 856,4
======== ========
EQUITY AND LIABILITIES
Equity attributable to equity holders of The
Foschini Group Limited 7 043,8 6 293,1
Non-controlling interest 705,5 571,1
------- -------
Total equity 7 749,3 6 864,2
------- -------
Non-current liabilities
Interest-bearing debt 1 041,9 1 006,8
RCS Group external funding 1 651,1 1 140,2
Non-controlling interest loans - 242,4
Operating lease liability 187,5 159,5
Deferred taxation liability 65,6 100,5
Post-retirement defined benefit plan 104,5 97,9
-------- --------
3 050,6 2 747,3
-------- --------
Current liabilities
Interest-bearing debt 896,5 722,1
RCS Group external funding 1 298,0 626,2
Trade and other payables 2 282,5 1 827,0
Operating lease liability 9,0 12,3
Taxation payable 100,7 57,3
-------- --------
4 586,7 3 244,9
-------- --------
Total liabilities 7 637,3 5 992,2
-------- --------
Total equity and liabilities 15 386,6 12 856,4
======== ========
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
2013 2012
Reviewed Audited
Rm Rm
Profit for the year 1 926,6 1 691,8
---------- ---------
OTHER COMPREHENSIVE INCOME
Movement in effective portion of
changes in fair value of cash flow
hedges 9,7 7,2
Foreign currency translation reserve movements 9,4 0,3
---------- ---------
Other comprehensive income for the
year before tax 19,1 7,5
Deferred tax on movement in
effective portion of changes in
fair value of cash flow hedges (2,7) (2,0)
---------- ---------
Other comprehensive income for the
year, net of tax 16,4 5,5
---------- ---------
Total comprehensive income for the
year 1 943,0 1 697,3
========== =========
Attributable to:
Equity holders of The Foschini
Group Limited 1 808,4 1 587,6
Non-controlling interest 134,6 109,7
---------- ---------
Total comprehensive income for the
year 1 943,0 1 697,3
========== =========
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Equity
holders of
The
Foschini Non-
Group controlling Total
Limited interest equity
Rm Rm Rm
Equity at 31 March 2011 5 462,9 485,6 5 948,5
Profit for the year 1 582,1 109,7 1 691,8
Other comprehensive income
Movement in effective portion of
changes in fair value of cash
flow hedges 7,2 - 7,2
Foreign currency translation
reserve movements 0,3 - 0,3
Deferred tax on movement in
effective portion of changes in
fair value of cash flow hedges (2,0) - (2,0)
-------- ------- --------
Total comprehensive income for
the year 1 587,6 109,7 1 697,3
Contributions by and
distributions to owners
Share-based payments reserve
movements 72,2 - 72,2
Dividends paid (828,6) (20,4) (849,0)
Sale of subsidiary - (3,8) (3,8)
Proceeds on delivery of shares
by share trust 54,4 - 54,4
Shares purchased in terms of
share incentive schemes (77,2) - (77,2)
Deferred tax on shares purchased 14,5 - 14,5
Current tax on shares purchased 7,3 - 7,3
-------- ------- --------
Equity at 31 March 2012 6 293,1 571,1 6 864,2
Profit for the year 1 792,0 134,6 1 926,6
Other comprehensive income
Movement in effective portion of
changes in fair value of cash
flow hedges 9,7 - 9,7
Foreign currency translation
reserve movements 9,4 - 9,4
Deferred tax on movement in (2,7) - (2,7)
effective portion of changes in
fair value of cash flow hedges
-------- ------- --------
Total comprehensive income for
the year 1 808,4 134,6 1 943,0
Contributions by and
distributions to owners
Share-based payments reserve
movements 65,8 - 65,8
Dividends paid (1 057,4) - (1 057,4)
Acquisition of non-controlling
interest without change in
control (refer note 16) (1,7) (0,2) (1,9)
Cancellation of issued shares (0,2) - (0,2)
Repurchase of shares (129,3) - (129,3)
Proceeds on delivery of shares
by share trust 186,6 - 186,6
Shares purchased in terms of
share incentive schemes (145,5) - (145,5)
Deferred tax on shares purchased 16,0 - 16,0
Current tax on shares purchased 8,0 - 8,0
-------- ------- --------
Equity at 31 March 2013 7 043,8 705,5 7 749,3
======== ======= ========
2013 2012
Reviewed Audited
DIVIDEND PER ORDINARY SHARE (CENTS)
Interim 236,0 190,0
Final 270,0 265,0
-------- --------
Total 506,0 455,0
======== ========
Dividend cover
1,7 1,7
SUPPLEMENTARY INFORMATION
2013 2012
Reviewed Audited
Net ordinary shares in issue (millions) 210,1 206,4
Weighted average ordinary shares in issue
(millions) 209,2 205,2
Tangible net asset value per ordinary share
(cents) 3 295,0 2 995,8
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
2013 2012
Reviewed Audited
Rm Rm
Cash flows from operating activities
Operating profit before working capital
changes (note 10) 3 466,9 3 180,4
Increase in working capital (1 586,8) (1 568,4)
------- -------
Cash generated from operations 1 880,1 1 612,0
Interest income 22,7 16,0
Finance costs (327,9) (284,9)
Taxation paid (808,4) (880,9)
Dividend income - 9,9
Dividends paid (1 057,4) (849,0)
------- -------
Net cash outflows from operating activities (290,9) (376,9)
------- -------
Cash flows from investing activities
Purchase of property, plant and equipment (580,7) (541,1)
Acquisition of assets through business
combinations (19,4) (82,5)
Proceeds from sale of property, plant and
equipment 8,4 6,5
Sale of subsidiary - 0,1
Redemption of preference share investment - 200,0
Repayment of participation in export
partnerships 18,0 12,5
Repayment of staff housing loans - 0,7
------- -------
Net cash outflows from investing activities (573,7) (403,8)
------- -------
Cash flows from financing activities
Proceeds on delivery of shares by share trust 186,6 54,4
Repurchase of shares (129,3) -
Shares purchased in terms of share incentive
schemes (145,5) (77,2)
(Decrease)increase in non-controlling
interest loans (242,4) 98,1
Increase in RCS Group external funding 1 182,7 858,4
Increase in interest-bearing debt 209,6 219,3
------- -------
Net cash inflows from financing activities 1 061,7 1 153,0
------- -------
Net increase in cash during the year 197,1 372,3
Cash at the beginning of the year 710,9 338,5
Effect of exchange rate fluctuations on cash
held 0,1 0,1
------- -------
Cash at the end of the year 908,1 710,9
======= =======
NOTES
The reviewed preliminary condensed consolidated results of The
Foschini Group Limited for the year ended 31 March 2013 have been
reviewed by the company’s auditors, KPMG Inc. Their unqualified
review report is available at the company’s registered office.
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 consolidated financial statements are prepared in accordance
with the group’s accounting policies, which comply with
International Financial Reporting Standards (IFRS), IAS 34 Interim
Financial Reporting, Financial Reporting Guides as issued by the
Accounting Practice Committee of the South African Institute of
Chartered Accountants and disclosures required by the Companies Act
and the JSE Listings Requirements and have been consistently
applied with those adopted in the prior year.
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 12,0 (March 2012: 24,0) million
shares which are owned by a subsidiary of the company; 1,4 (March
2012: 0,9) million shares held by employees of TFG in terms of
share incentive schemes; 3,8 (March 2012: 9,2) million shares which
are owned by the share incentive trust and 1,1 (March 2012:nil)
million shares held by TFG Limited. These have been eliminated on
consolidation.
2013 2012
Reviewed Audited
Rm Rm
4. Revenue
Retail turnover 12 896,4 11 630,5
Interest income (refer note 6) 1 996,6 1 712,1
Dividend income - 9,9
Other revenue (refer note 7) 1 392,0 1 178,3
-------- --------
16 285,0 14 530,8
======== ========
5. Cost of turnover
Cost of goods sold (6 824,0) (6 097,5)
Costs of purchase, conversion and other
costs (668,3) (652,6)
--------- ---------
(7 492,3) (6 750,1)
========= =========
6. Interest income
Trade receivables – TFG 983,6 853,7
Receivables – RCS Group 990,3 842,4
Sundry - TFG 14,3 10,0
Sundry – RCS Group 8,4 6,0
-------- --------
1 996,6 1 712,1
======== ========
7. Other revenue
Merchants’ commission 48,2 36,4
Club income 336,2 297,5
Customer charges income 502,8 411,5
Insurance income 431,5 372,2
Cellular income – one2one airtime product 67,4 52,8
Sundry income 5,9 7,9
-------- --------
1 392,0 1 178,3
======== ========
8. Trading expenses
Depreciation (334,8) (311,2)
Amortisation (0,2) (0,4)
Employee costs: normal (2 002,2) (1 857,4)
Employee costs: share-based payments (65,8) (72,2)
Occupancy costs: normal (1 205,3) (1 041,9)
Occupancy costs: operating lease liability
adjustment (24,7) (25,7)
Net bad debt (940,7) (721,2)
Other operating costs (1 177,4) (964,2)
--------- ---------
(5 751,1) (4 994,2)
========= =========
9. Inventory
Merchandise 2 266,6 2 020,2
Raw materials 136,8 101,4
Shopfitting stock 37,2 30,9
Consumables 3,4 2,5
-------- --------
2 444,0 2 155,0
======== ========
Inventory write-downs included above 110,8 94,9
-------- --------
10. Operating profit before working
capital changes
Profit before tax 2 713,7 2 501,6
Finance costs 327,9 284,9
-------- --------
Operating profit before finance charges 3 041,6 2 786,5
Interest income - sundry (22,7) (16,0)
Dividend income - (9,9)
Non-cash items 448,0 419,8
-------- --------
Depreciation 334,8 311,2
Amortisation 0,2 0,4
Operating lease liability 24,7 25,7
Employee costs: share-based payments 65,8 72,2
Post-retirement medical aid movement 6,6 6,9
Foreign currency translation reserve
movements 9,4 0,3
Loss on disposal of property, plant and
equipment 6,7 3,6
Profit on disposal of property, plant and
equipment (0,2) (0,5)
-------- --------
Operating profit before working capital
changes 3 466,9 3 180,4
======== ========
11. Reconciliation of profit for the year
to headline earnings
Profit for the year attributable to equity
holders of The Foschini Group Limited 1 792,0 1 582,1
Adjusted for the after-tax effect of:
Profit on disposal of property, plant and (0,1) (0,3)
equipment
Loss on disposal of property, plant and
equipment 4,7 2,4
-------- --------
Headline earnings 1 796,6 1 584,2
======== ========
12. CONTINGENT LIABILITIES
The Foschini Group has provided RCS Group with a total facility of
R835,3 million (2012: R835,3 million) in respect of their domestic
medium-term notes (DMTN) programme. As at 31 March, the utilised
portion of this facility was Rnil (2012: R291,9 million), which is
included in the group’s statement of financial position. The
unused liquidity facility at this date was R835,3 million (2012:
R543,4 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 year.
14. BUSINESS COMBINATIONS
14.1 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, with the rights to roll out further stores.
These stores will be managed together with the Fabiani stores.
Fair value of assets acquired and liabilities assumed through this
business combination:
Property, plant and equipment 4,0
Inventory 4,7
--------
Total identifiable net assets 8,7
Trademark 10,7
--------
Total purchase price (paid in two
tranches) 19,4
========
Cashflow
Business combination occurring during the
reporting period 19,4
========
14.2 Prior year acquisitions
On 1 October 2011 the group acquired the business of Jeffdee
Clothing CC trading as Fabiani as a going concern. Fabiani is a
leading, premium menswear retailer in South Africa. As a result of
the acquisition, the group has now gained an entry into the high
wealth customer segment in menswear.
On 1 March 2012, as part of our ongoing supply chain initiatives,
the group acquired the business of Prestige Clothing CC as a going
concern. Prestige Clothing is a longstanding clothing
manufacturing supplier of our group. This acquisition will improve
the group's competitive advantage and enable the group to meet the
increased demands for seasonal fast-fashion merchandise.
The fair value of assets acquired and liabilities assumed through
these business combinations was R9,1 million. A trademark of R49,3
million and goodwill of R24,1 million was recognised on the
acquisition and the total cash outflow as a result of these
business combinations was R82,5 million.
15. REPURCHASE OF SHARES
At the annual general meeting of the company held on 3 September
2012 shareholders approved a specific repurchase of 12 million
ordinary shares held by a wholly owned subsidiary.
The specific repurchase was implemented on 26 February 2013 at an
average price of R119.36 per share, where after the shares were
cancelled and restored to 2013 authorised share capital. On 8
March 2013 the 12 million shares were delisted reducing the total
shares in issue from 240 498 241 shares to 228 498 241 shares.
Details of further repurchase transactions are as follows:
Number of Average
shares price (R)
Prior to close period:
March 2013 1 107 376 112,45
----------
During closed period in terms of
repurchase programme as announced on SENS:
April 2013 1 633 025 111,35
May 2013 595 000 110,63
----------
2 228 025
==========
16. AQUISITION OF NON-CONTROLLING INTEREST WITHOUT CHANGE IN
CONTROL
During the year, the RCS Group acquired an additional 22%
shareholding in RCS Home Loans for R1,9 million. RCS Home Loans is
now a wholly owned subsidiary of the RCS Group.
GROUP SEGMENTAL ANALYSIS
Central
Retail TFG and
trading Financial shared Total RCS
divisions Services services Retail Group
2013 2013 2013 2013 2013
Reviewed Reviewed Reviewed Reviewed Reviewed
Rm Rm Rm Rm Rm
External
revenue 12 896,4 789,5 73,2 13 759,1 529,3
External
interest
income - 983,6 14,3 997,9 998,7
--------- --------- -------- -------- --------
Total revenue* 12 896,4 1 773,1 87,5 14 757,0 1 528,0
======== ======== ======== ======== ========
Inter-segment
revenue 56,3 56,3 8,0
External
finance costs (108,4) (108,4) (219,5)
Depreciation
and
amortisation (316,6) (316,6) (18,4)
======== ======== ======== ======== ========
Segmental
profit before
tax 2 810,1 424,8 (853,8) 2 381,1 414,8
Other material
non-cash items
Foreign
exchange
transactions 8,3 -
Share-based
payments (65,8) -
Operating
lease
liability
adjustment (24,7) -
------- -------
Group profit
before tax 2 298,9 414,8
Capital
expenditure 567,6 17,1
Segment assets 10 435,6 4 951,0
Segment
liabilities 4 269,5 3 367,8
Retail TFG Central
trading Financial and Total RCS
divisions Services shared retail Group
services
2012 2012 2012 2012 2012
Audited Audited Audited Audited Audited
Rm Rm Rm Rm Rm
External
revenue 11 630,5 673,8 70,6 12 374,9 443,8
External
interest
income - 853,7 10,0 863,7 848,4
--------- --------- -------- -------- --------
Total revenue* 11 630,5 1 527,5 80,6 13 238,6 1 292,2
======== ======== ======== ======== ========
Inter-segment
revenue 126,5 126,5 8,9
External
finance costs (105,7) (105,7) (179,2)
Depreciation
and
amortisation (295,8) (295,8) (15,8)
======== ======== ======== ======== ========
Segmental
profit before
tax 2 610,7 395,4 (757,3) 2 248,8 345,2
Other material
non-cash items
Foreign
exchange
transactions 5,5 -
Share-based
payments (72,2) -
Operating
lease
liability
adjustment (25,7) -
------- -------
Group profit 2 156,4 345,2
before tax
Capital
expenditure 525,7 21,7
Segment assets 8 998,3 3 858,1
Segment
liabilities 3 350,5 2 641,7
Consolidated Consolidated
2013 2012
Reviewed Audited
Rm Rm
External revenue 14 288,4 12 818,7
External interest income 1 996,6 1 712,1
-------- --------
Total revenue* 16 285,0 14 530,8
======== ========
Inter-segment revenue 64,3 135,4
External finance costs (327,9) (284,9)
Depreciation and amortisation (335,0) (311,6)
======== ========
Segmental profit before tax 2 795,9 2 594,0
Other material non-cash items
Foreign exchange transactions 8,3 5,5
Share-based payments (65,8) (72,2)
Operating lease liability adjustment (24,7) (25,7)
------- -------
Group profit before tax 2 713,7 2 501,6
Capital expenditure 584,7 547,4
Segment assets 15 386,6 12 856,4
Segment liabilities 7 637,3 5 992,2
* includes retail turnover, interest income, dividend income and
other income
COMMENT
GROUP OVERVIEW
Despite the difficult environment, the group has achieved a solid
performance, producing its highest ever profits with continued
gains in market share for the year.
Trading conditions became significantly more challenging in the second half of the 2013 financial year.This was particularly evident over the key trading months of November and December.
Retail turnover increased by 10,9% to R12,9 billion whilst headline
earnings per share increased by 11,2% to 858,6 cents. Diluted headline earnings per share increased by 11,1% to 851,3 cents.
The group’s gross margin was effectively the same as the previous year at 41,9%. The group’s operating margin for the year was
23,6%, marginally down from 24,0% in the previous year.
The final dividend has been increased to 270,0 cents per share.
Accordingly the dividend declared in respect of the full year amounts to 506,0 cents per share, an increase of 11,2%. The final
dividend of 270,0 cents per share reflects a lower rate of growth because of the reduction in the dividend cover at the interim
stage.
Supporting our strategy of investing for the longer term, the group continued to grow trading space in the second half by opening a
further 76 stores. 146 stores were opened in the full year whilst 24 were closed. At the year-end the group was trading out of 1 979
stores, with an increase in trading area of 5,1% compared to the previous year.
MERCHANDISE CATEGORIES
Turnover growths in the various merchandise categories are as
follows:
- Clothing 11,8%
- Jewellery 6,9%
- Cosmetics 11,7%
- Homewares and furniture 18,0%
- Cellphones 3,6%
Same store turnover grew by 5,8%, whilst product inflation averaged 5% for the year.
Cash sales as a percentage of total sales increased to 40% from 39%.
Clothing - turnover growth of 11,8% was reasonable and would have been better had it not been for supply problems in ladies and
childrenswear during the run up to the festive trading season.
Same store turnover growth was 6,1%.
Jewellery - experienced a disappointing December achieving 0,5% turnover growth which is normally the biggest turnover period for
this category.Notwithstanding this, jewellery turnover for the year grew 6,9% with same store growth of 3,7%.
Cosmetics - performed well in a competitive environment with turnover growth of 11,7% and same store growth of 8,5%.
Homewares and furniture – had an excellent performance growing turnover by 18,0% and same store growth of 12,0%.
Cellphones - had a poor performance over the festive season with turnover in December down 5,6%, resulting in turnover growth for
the year of 3,6%. Same store growth was flat for the year.
It became apparent that the discretionary categories of jewellery & cellphones were not the items of choice for consumers over the
festive season. Turnover growth in both of these categories
returned to more normal levels in the last quarter of the financial year.
TFG Financial Services’ retail debtors’ book, which amounts to R5,2 billion, increased by 14%. The group’s active account base grew by
6,0% to 2,6 million accounts.
The credit environment has become increasingly more difficult with consumer delinquencies on the
rise. This became more evident from November 2012.
Net bad debt as a percentage of closing debtors’ book increased to 10,5% from
9,4% in the previous year, moving from 10,3% at the half year.
This remains within management’s expectations.
RCS GROUP
The RCS Group 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 continued cautious approach in granting
personal loans has seen the personal loans book contribution reduce
from 41% to its current 26% over the last 5 years.
Notwithstanding the difficult consumer environment,RCS Group performed well during the year growing net profit before tax by
20,2% to R414,8 million. Net bad debt as a percentage of average debtors’ book increased to 6,6% from 6,0% in the previous year.
NPL (non performing loan) impairment cover is at a healthy level of 121,7%. Its debtors’ book of R4,2 billion increased by 22,0% during
the year.
The Domestic Medium-Term Note (DMTN) programme continues to be successfully implemented with R2,9 billion of funding being raised
in a mixture of long and short term paper.
Our group’s shareholding in RCS Group is 55% with the balance being held by The Standard Bank of South Africa Limited. It remains our
intention to reduce our shareholding in this subsidiary to below 50%.
AFRICA EXPANSION
The group currently trades out of 104 stores outside of South Africa, with 63 in Namibia, 16 in Botswana, 12 in Zambia, 7 in
Lesotho, 4 in Swaziland and 2 in Nigeria. We believe that expansion into the rest of Africa is a long term growth strategy
and over the next three years in excess of 100 stores are planned to be opened in the countries where we already operate as well as
in Mozambique, Angola and Ghana.
PROSPECTS
Economic conditions in South Africa will remain difficult with the
credit environment likely to deteriorate further. Due to current high levels of consumer indebtedness, enhanced credit risk
management practices have been and will continue to be implemented.
In line with our strategy of investing for long-term growth, we will continue to open new stores in certain of our formats. We
anticipate opening in excess of 150 new stores in the year ahead which will increase trading space by approximately 6%.
We believe the group is well positioned to once again produce solid results in the year ahead, although caution is warranted given the
state of the consumer environment.
PREFERENCE DIVIDEND ANNOUNCEMENT
Dividend no. 153 of 3,25% (6,5 cents per share) (gross) in respect of the six months ending 30 September 2013 has been declared from
income reserves, payable on Monday, 23 September 2013 to holders of 6,5% preference shares recorded in the books of the company at the
close of business on Friday, 20 September 2013. The last day to trade (“cum” the dividend) in order to participate
in the dividend will be Friday, 13 September 2013. The Foschini Group Limited preference shares will commence trading “ex” the
dividend from the commencement of business on Monday, 16 September 2013 and the record date, as indicated, will be Friday, 20
September 2013.
Preference shareholders should take note that share certificates may not be dematerialised or rematerialised during the period
Monday, 16 September 2013 to Friday, 20 September 2013, both dates inclusive.
In terms of 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 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 30 May 2013; and
5) The Foschini Group Limited’s tax reference number is
9925/133/71/3P
FINAL ORDINARY DIVIDEND ANNOUNCEMENT
The directors have declared a gross final ordinary dividend of 270,0 cents per ordinary share from income reserves, for the period
ended 31 March 2013, payable on Monday, 8 July 2013 to ordinary shareholders recorded in the books of the company at the close of
business on Friday, 5 July 2013.
The last day to trade (“cum” the dividend) in order to participate in the dividend will be Friday, 28 June 2013. The Foschini Group
Limited ordinary shares will commence trading “ex” the dividend from the commencement of business on Monday, 1 July 2013 and the
record date, as indicated, will be Friday, 5 July 2013.
Ordinary shareholders should take note that share certificates may not be dematerialised or rematerialised during the period Monday, 1
July 2013 to Friday, 5 July 2013, both dates inclusive.
In terms of 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 dividend;
3) The withholding tax, if applicable at the rate of 15%, will
result in a net cash dividend per share of 229,50000 cents
4) The issued gross ordinary share capital of The Foschini Group
Limited is 228 498 241 shares at 30 May 2013; and
5) The Foschini Group Limited’s tax reference number is
9925/133/71/3P
------------------------------------------------------------------
Signed on behalf of the Board
D M Nurek, Chairman A D Murray, CEO
30 May 2013
Non-executive directors:
D M Nurek (Chairman), Prof F Abrahams, S E Abrahams, W V Cuba, M
Lewis, E Oblowitz, N V Simamane, B L M Makgabo-Fiskerstrand
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: 30/05/2013 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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