Wrap Text
Preliminary Report On The Audited Group Results For The 52 Weeks Ended 30 June 2013
Truworths International Ltd
Registration number: 1944/017491/06
JSE Ltd code: TRU
NSX code: TRW
ISIN: ZAE000028296
PRELIMINARY REPORT ON THE AUDITED GROUP RESULTS
for the 52 weeks ended 30 June 2013
FINANCIAL HIGHLIGHTS
Retail sales reach R10 billion
Gross margin at 56.6%
Operating margin at 34.5%
Annual dividend per share up 11%
% change to the % change to the
prior 53-week period prior 52-week period
(reported) (pro-forma)
Sale of merchandise 10.6% 12.9%
Basic earnings per share 8.5% 12.3%
Headline earnings per share 8.4% 12.1%
Fully diluted headline earnings per share 8.4% 12.2%
GROUP PROFILE
Truworths International Ltd is an investment holding and management company listed on
the JSE and the Namibian Stock Exchange. Its principal trading entities, Truworths Ltd
and Young Designers Emporium (Pty) Ltd, are engaged either directly or through
agencies, franchises or subsidiaries, in the retailing of fashion apparel and
related merchandise. Truworths International Ltd and its subsidiaries (the Group)
operate primarily in South Africa, and elsewhere in sub-Saharan Africa.
TRADING AND FINANCIAL PERFORMANCE
Group retail sales for the 52-week period ended 30 June 2013 ("the period") increased
by 10.7% to R10.1 billion compared to the 53-week prior reporting period ("the prior
53-week period"), and by 12.9% compared to a 52-week prior pro-forma period
("the comparative 52-week period"). Like-for-like store retail sales grew by 5.7%
(7.8% relative to the comparative 52-week period) while product inflation averaged 2%
for the period. Group sale of merchandise, which comprises Group retail sales and
franchise sales less accounting adjustments, grew 10.6% to R9.8 billion
(12.9% relative to the comparative 52-week period).
Trading space increased by 8.1% over the prior 53-week period-end following the
opening of a net 17 Truworths, 19 Identity and 2 Truworths Man stores, while 2 Uzzi
stores and 1 YDE store were closed. The Group's store base passed the 600 mark and
totalled 604 (2012: 569) at the end of the period. This includes 40 stores outside
South Africa (2012: 29) following the opening of new stores in Lesotho (4),
Zambia (3), Ghana (2) and Nigeria (2).
The Group has recorded market share gains and based on data from the retail liaison
committee (RLC) for June 2013, in South Africa the Group increased its ladieswear
RLC clothing market share to 21.7% (2012: 21.2%), while its menswear clothing market
share grew to 22.6% (2012: 22.4%).
Divisional sales
52 weeks 53 weeks
30 June 1 July
2013 2012
Rm Rm % change
Truworths ladieswear 3 661 3 361 9
Truworths menswear 1 987 1 757 13
Identity 1 586 1 407 13
Daniel Hechter 1 206 1 091 11
Elements 480 454 6
Inwear 451 409 10
LTD 405 353 15
Other* 298 272 10
Retail sales 10 074 9 104 11
Franchise sales 9 24 (63)
Accounting adjustments (318) (298) 7
Sale of merchandise 9 765 8 830 11
YDE agency sales 278 276 1
* Includes cellular, Truworths Jewellery and Truworths Living (discontinued
during 2012) divisions.
The Group's gross margin decreased to 56.6% (2012: 56.7%) and remains within the
target range of 54% to 57%. Trading expenses increased 16% to R3.2 billion (2012:
R2.8 billion), mainly as a result of the 39% increase in trade receivable costs
attributable to the deteriorating consumer credit environment. Trading expenses as
a percentage of the sale of merchandise increased to 32.8% (2012: 31.2%). Interest
received increased 12% to R814 million (2012: R728 million). Operating profit
increased 6% to R3.4 billion (2012: R3.2 billion) and the operating margin declined
to 34.5% (2012: 36.1%) but remains within management's target range of 33% to 36%.
Inventory balances were 17% up at period-end, impacted by higher levels of future
season stock in transit and purchase prices reflecting a higher Rand/US dollar exchange
rate, resulting in an inventory turn of 5.4 times at period-end (2012: 5.7 times).
Headline earnings per share (HEPS) increased 8.4% to 570.8 cents (2012: 526.7 cents).
This would equate to a 12.1% increase if the effect of the additional trading week
in the prior 53-week period was excluded. This performance is in line with the
earnings range announced in the Group's trading statement released on SENS on
22 July 2013. Fully diluted HEPS increased 8.4% to 560.7 cents (2012: 517.1 cents).
This equates to a 12.2% increase if the effect of the additional trading week in the
prior 53-week period was excluded.
A final dividend of 158 cents per share has been declared, bringing the total dividend
for the period to 362 cents, an increase of 11% over the prior 53-week period.
Dividend cover has been reduced to 1.58 times.
The Group's financial position continued to strengthen, with net asset value per share
increasing by 6% to 1 488.5 cents (2012: 1 410.6 cents). The returns on equity and
assets were 39% (2012: 40%) and 46% (2012: 46%) respectively. Asset turnover remained
at 1.3 times.
CREDIT MANAGEMENT
Group credit sales grew by 9% and credit sales contributed 72% (2012: 73%) to retail
sales for the period.
In line with the board's outlook statement contained in the Group's unaudited interim
results for the 26 weeks ended 30 December 2012, the credit environment deteriorated
during the period, impacting on both the Group's delinquency experience and active
account growth.
The doubtful debt allowance as a percentage of gross trade receivables has accordingly
been increased to 12.0% (2012: 10.6%). Net bad debt as a percentage of gross trade
receivables grew to 10.4% (2012: 7.9%). Gross trade receivables grew by 11% to
R4.2 billion. The Group's acceptance rate on new account applications for
the period declined to 31% (2012: 38%). Despite this, the Group's active account base
grew by 6% to approximately 2.6 million (2012: 2.4 million) accounts. At period-end 82%
(2012: 84%) of the Group's active account holders were able to purchase because they
continue to meet our stringent criteria for ongoing purchases.
CAPITAL MANAGEMENT
During the period R2.2 billion was returned to shareholders through dividend
payments and share buy-backs.
The Group repurchased 7.6 million shares at an average price of R91.08 per share for
a total of R691 million during the period. Since the inception of the share buy-back
programme in 2002, 89 million shares have been repurchased at a total cost of
R2.4 billion at an average price of R27.43. In addition, 593 000 shares were issued
during the period at a cost of R61 million and held as treasury shares under the
restricted share incentive scheme.
The Group generated R2.2 billion in cash from operations and this was used to fund
dividend payments, share buy-backs, store development and information systems
infrastructure. Cash and cash equivalents decreased by 15% to R1.3 billion at the
period-end (2012: R1.6 billion).
DIRECTORATE
The Board has resolved to appoint David Pfaff CA(SA) as the Chief Financial Officer
of the Group and as an executive director of the company with effect from
1 September 2013. He joined the Group earlier this year following previous experience
in this role with a JSE listed information technology company and has been the
designate for this position since 15 April 2013.
OUTLOOK
Predictions are that the economy and consequently the credit environment are unlikely
to improve in the 2014 financial period and restrictive credit granting criteria will
limit account acquisition and credit sales. The Group has extensive experience in
managing credit risk in tough market conditions and will apply strategies to ensure
the continued health of the debtors' book and profitability of the business.
Ongoing weakness in the rand exchange rate against the US dollar will be managed to
contain inflationary pressures on merchandise as the Group has successfully done in
prior periods of currency volatility.
Against this challenging trading background the Group will aim to build sales growth
momentum by delivering high-quality, internationally inspired fashion across the
brand portfolio.
Trading space is anticipated to increase by approximately 8% during the 2014
financial period.
Capital expenditure of R388 million has been committed for the 2014 financial period
and will be used primarily for new stores and expansion and refurbishment of existing
stores (R259 million), new information systems infrastructure (R59 million) as well as
on the distribution centres (R60 million).
Retail sales for the first seven weeks of the 2014 financial period reflect an increase
of 12.2% over the corresponding period in the 2013 financial period.
H Saven MS Mark
Chairman Chief Executive Officer
FINAL DIVIDEND
The directors of the company have resolved to declare a gross cash dividend from
retained earnings in respect of the 52-week period ended 30 June 2013 in the amount
of 158 cents (2012: 157 cents) per share to shareholders reflected in the company's
register on the record date, being Friday, 13 September 2013.
The last day to trade in the company's shares cum dividend is Friday,
6 September 2013. Trading in the company's shares ex dividend will commence on Monday,
9 September 2013. Consequently no dematerialisation or rematerialisation of the
company's shares may take place over the period from Monday, 9 September 2013 to
Friday, 13 September 2013, both days inclusive. The dividend will be payable in
South African Rand on Monday, 16 September 2013.
Dividends will be paid net of the 15% dividends tax, to be withheld and remitted to
the South African Revenue Service. Such tax must be withheld unless beneficial
owners of the dividend have provided the necessary documentary proof to the relevant
regulated intermediary (being a broker, CSD participant, nominee company or the
company's transfer secretaries Computershare Investor Services (Pty) Ltd,
PO Box 61051, Marshalltown, 2107, South Africa) that they are exempt therefrom, or
entitled to a reduced rate, as a result of a double taxation agreement between
South Africa and the country of tax domicile of such owner.
The dividends tax, if applicable at the rate of 15%, will result in a net cash
dividend per share of 134.30 cents. No secondary tax on companies (STC) credits were
utilised when determining the net dividend. The company has 463 806 804 ordinary
shares in issue on 22 August 2013.
In accordance with the company's recently adopted new memorandum of incorporation:
- the dividend will only be paid by electronic funds transfer, and no cheque
payments will be made. Accordingly, certificated shareholders who have not yet
provided their bank account details should do so by contacting the company's
transfer secretaries; and
- the directors have determined that gross dividends amounting to less than
1 000 cents, due to any one shareholder of the company's shares held in
certificated form, will not be paid, unless otherwise requested in writing, but
the net amount thereof will be aggregated with other such net amounts and donated
to a charity to be nominated by the directors.
By order of the board
C Durham
Company Secretary
Cape Town
22 August 2013
ABRIDGED GROUP STATEMENTS OF FINANCIAL POSITION
At 30 June At 1 July
2013 2012
Audited Audited
Rm Rm
ASSETS
Non-current assets 1 280 1 197
Property, plant and equipment 857 775
Goodwill 90 90
Intangible assets 103 94
Derivative financial assets 19 34
Available-for-sale assets 4 3
Loans and receivables 118 143
Deferred tax 89 58
Current assets 5 991 5 720
Inventories 787 670
Trade and other receivables 3 766 3 421
Derivative financial assets 42 7
Prepayments 71 62
Cash and cash equivalents 1 325 1 560
Total assets 7 271 6 917
EQUITY AND LIABILITIES
Total equity 6 219 5 981
Share capital and premium 293 205
Treasury shares (2 028) (1 274)
Retained earnings 7 825 6 944
Non-distributable reserves 129 106
Non-current liabilities 97 97
Post-retirement medical benefit obligation 53 47
Cash-settled compensation obligation 8 12
Straight-line operating lease obligation 36 38
Current liabilities 955 839
Trade and other payables 719 598
Provisions 71 73
Tax payable 165 168
Total liabilities 1 052 936
Total equity and liabilities 7 271 6 917
Number of shares in issue (net of treasury shares) (millions) 417.8 424.0
Net asset value per share (cents) 1 488.5 1 410.6
Key ratios
Return on equity (%) 39 40
Return on capital (%) 55 58
Return on assets (%) 46 46
Inventory turn (times) 5.4 5.7
Asset turnover (times) 1.3 1.3
ABRIDGED GROUP STATEMENTS OF COMPREHENSIVE INCOME
52 weeks 53 weeks
to 30 June to 1 July
2013 2012
Audited % Audited
Note Rm change Rm
Revenue 3 10 809 11 9 769
Sale of merchandise 9 765 11 8 830
Cost of sales (4 241) (3 820)
Gross profit 5 524 10 5 010
Other income 226 208
Trading expenses (3 202) 16 (2 759)
Depreciation and amortisation (160) (138)
Employment costs (986) (890)
Occupancy costs (843) (746)
Trade receivable costs (739) (533)
Other operating costs (474) (452)
Trading profit 2 548 4 2 459
Interest received 814 728
Dividends received 4 3
Profit before tax 3 366 6 3 190
Tax expense (958) (965)
Profit for the period, fully attributable to
owners of the parent 2 408 8 2 225
Other comprehensive income
Movement in effective portion of cash flow hedge (3) 11
Deferred tax on movement in effective portion of
cash flow hedge 4 (3)
Movement in foreign currency translation reserve (1) -
Other comprehensive income for the period,
net of tax - 8
Total comprehensive income for the period, fully
attributable to owners of the parent 2 408 8 2 233
Basic earnings per share (cents) 570.8 8 526.3
Headline earnings per share (cents) 570.8 8 526.7
Fully diluted basic earnings per share (cents) 560.7 9 516.6
Fully diluted headline earnings per share (cents) 560.7 8 517.1
Weighted average number of shares (millions) 421.9 422.8
Key ratios
Gross margin (%) 56.6 56.7
Trading expenses to sale of merchandise (%) 32.8 31.2
Trading margin (%) 26.1 27.8
Operating margin (%) 34.5 36.1
ABRIDGED GROUP STATEMENTS OF CASH FLOWS
52 weeks 53 weeks
to 30 June to 1 July
2013 2012
Audited Audited
Rm Rm
CASH FLOWS FROM OPERATING ACTIVITIES
Cash flow from trading and cash EBITDA* 2 720 2 653
Working capital movements (352) (802)
Cash generated from operations 2 368 1 851
Interest received 814 728
Dividends received 4 3
Tax paid (988) (964)
Cash inflow from operations 2 198 1 618
Dividends paid (1 526) (1 281)
Net cash from operating activities 672 337
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of property, plant and equipment to expand operations (203) (166)
Acquisition of plant and equipment to maintain operations (50) (37)
Acquisition of computer software (17) (23)
Loans advanced (1) (16)
Loans repaid 29 15
Acquisition of mutual fund units - (2)
Net cash used in investing activities (242) (229)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds on shares issued 27 46
Shares repurchased by subsidiaries (691) (83)
Net cash used in financing activities (664) (37)
Net increase in cash and cash equivalents (234) 71
Cash and cash equivalents at the beginning of the period 1 560 1 489
Net foreign exchange difference (1) -
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD 1 325 1 560
Key ratios
Cash flow per share (cents) 521.0 382.7
Cash equivalent earnings per share (cents) 604.9 565.8
Cash realisation rate (%) 86 68
* Earnings before interest received, tax, depreciation and amortisation
ABRIDGED GROUP STATEMENTS OF CHANGES IN EQUITY
30 June 1 July
2013 2012
Audited Audited
Rm Rm
Total equity at the beginning of the period 5 981 5 046
Total comprehensive income for the period 2 408 2 233
Profit for the period 2 408 2 225
Other comprehensive income for the period - 8
Dividends (1 527) (1 282)
Premium on shares issued 88 46
Shares repurchased (691) (83)
Shares issued in terms of the resticted share scheme (61) -
Shares acquired upon forfeiture of equity-based awards (2) -
Share-based payment 23 21
Total equity at the end of the period 6 219 5 981
Comprising:
Share capital and premium 293 205
Treasury shares (2 028) (1 274)
Retained earnings 7 825 6 944
Non-distributable reserves 129 106
Total equity 6 219 5 981
Cents per share:
Dividends 362 326
Final - payable/paid September 158 157
Interim - paid March/April 204 169
SELECTED EXPLANATORY NOTES
1 BASIS OF PREPARATION
The information in this preliminary report has been extracted from the Group's
2013 annual financial statements. The preliminary report has been prepared
in compliance with International Financial Reporting Standards (IFRS), the SAICA
Financial Reporting Guides as issued by the Accounting Practices Committee and
Financial Reporting Pronouncements as issued by the Financial Reporting Standards
Council, IAS 34: Interim Financial Reporting, the South African Companies Act
(71 of 2008, as amended) and the Listings Requirements of the JSE.
The Group's 2013 annual financial statements and this preliminary report have been
audited by the Group's external auditors, Ernst & Young Inc., and their unqualified
audit opinion on such financial statements and on this preliminary report are
available for inspection at the company's registered office.
The Group's 2013 annual financial statements have been prepared in accordance with
the going concern and historical cost bases except where otherwise indicated in the
Group's accounting policies. The accounting policies have been applied uniformly
throughout the Group and are consistent with those applied in the prior period,
except as mentioned in note 2. The presentation currency is the South African Rand
(R) and all amounts are rounded to the nearest million. This preliminary report has
been prepared under the supervision of DB Pfaff CA(SA), the Chief Financial Officer
designate of the Group.
2 ACCOUNTING POLICIES
The accounting policies and methods of computation applied in the preparation of
this preliminary report are consistent with those applied in the preparation of
the Group's annual financial statements for the period ended 1 July 2012, except
for the adoption of IAS 1: Presentation of Financial Statements (Amended) as
described below.
IAS 1: Presentation of Financial Statements (Amended):
The amendments to IAS 1 require items that are recognised in other comprehensive
income, that may be reclassified ("recycled") to profit or loss in a future period,
to be presented separately from those items that may never be reclassified to profit
or loss. The adoption of IAS 1 (Amended) only affects the presentation of the
Group's annual financial report and has had no impact on the Group's financial
position or performance.
IFRS, amendments and International Financial Reporting Interpretations Committee
(IFRIC) interpretations not applicable to Group activities:
Various other new and amended IFRS and IFRIC interpretations that have been issued
and are effective, have not been adopted by the Group as they are not applicable
to its activities.
52 weeks 53 weeks
to 30 June to 1 July
2013 2012
Audited % Audited
3 REVENUE Rm change Rm
Sale of merchandise 9 765 11 8 830
Retail sales 10 074 11 9 104
Accounting adjustments (318) (298)
Franchise sales 9 24
Other income 226 9 208
Commission 112 103
Financial services income 51 39
Display fees 48 45
Lease rental income 7 8
Other 6 10
Royalties 2 3
Interest received 814 12 728
Trade receivables interest 724 630
Investment interest 90 98
Dividends received 4 3
Total revenue 10 809 11 9 769
4 RECONCILIATION OF PROFIT FOR THE PERIOD TO
HEADLINE EARNINGS:
Profit for the period, fully attributable to
owners of the parent 2 408 2 225
Adjusted for:
Loss on disposal of fixed assets - 2
Headline earnings 2 408 8 2 227
5 SEGMENT REPORTING
The Group's reportable segments have been identified as the Truworths and Young
Designers Emporium (YDE) business units. The Truworths business unit comprises all
the retailing activities conducted by the Group, through which the Group retails
fashion apparel comprising clothing, footwear and other fashion products to women,
men and children, other than by the YDE business unit. The YDE business unit
comprises the agency activities through which the Group retails clothing, footwear
and related products on behalf of emerging South African designers.
Management monitors the operating results of the business segments separately for
the purpose of making decisions about resources to be allocated and of assessing
performance. Segment performance is reported on an IFRS basis and evaluated based
on revenue and profit before tax.
Consoli-
dation
Truworths YDE entries Group
Rm Rm Rm Rm
2013
Total third-party revenue 10 722 111 (24) 10 809
Third party 10 691 111 7 10 809
Inter-segment 31 - (31) -
Depreciation and amortisation 156 4 - 160
Employment costs 973 13 - 986
Occupancy costs 810 33 - 843
Trade receivable costs 739 - - 739
Other costs 493 15 (34) 474
Interest received 810 1 3 814
Profit for the period 2 367 32 9 2 408
Profit before tax 3 312 45 9 3 366
Tax expense (945) (13) - (958)
Segment assets 10 125 154 (3 008) 7 271
Segment liabilities 1 154 1 (103) 1 052
Capital expenditure 268 2 - 270
Gross margin (%) 56.6 - - 56.6
Trading margin (%) 25.6 39.7 - 26.1
Operating margin (%) 33.9 40.8 - 34.5
Inventory turn (times) 5.4 - - 5.4
Credit:cash sales mix (%) 72:28 25:75 - 72:28
2012
Total third-party revenue 9 679 107 (17) 9 769
Third party 9 654 107 8 9 769
Inter-segment 25 - (25) -
Depreciation and amortisation 134 4 - 138
Employment costs 877 13 - 890
Occupancy costs 715 31 - 746
Trade receivable costs 533 - - 533
Other costs 463 16 (27) 452
Interest received 722 1 5 728
Profit for the period 2 190 31 4 2 225
Profit before tax 3 143 43 4 3 190
Tax expense (953) (12) - (965)
Segment assets 9 208 176 (2 467) 6 917
Segment liabilities 1 073 5 (142) 936
Capital expenditure 217 9 - 226
Gross margin (%) 56.7 - - 56.7
Trading margin (%) 27.4 39.1 - 27.8
Operating margin (%) 35.6 40.0 - 36.1
Inventory turn (times) 5.7 - - 5.7
Credit:cash sales mix (%) 73:27 25:75 - 73:27
Contri- Contri- Contri- Contri-
bution bution bution bution
to revenue to revenue to revenue to revenue
2013 2013 2012 2012
Third-party revenue Rm % Rm %
South Africa 10 460 96.8 9 501 97.3
Namibia 171 1.6 159 1.6
Swaziland 52 0.5 55 0.6
Botswana 49 0.5 18 0.2
Nigeria 16 0.1 3 -
Zambia 16 0.1 - -
Ghana 14 0.1 - -
Lesotho 13 0.1 - -
Mauritius 9 0.1 9 0.1
Franchise sales 9 0.1 24 0.2
Kenya 8 0.1 10 0.1
Lesotho 1 - 4 -
Botswana - - 7 0.1
Zambia - - 3 -
Total third-party revenue 10 809 100 9 769 100
30 June 1 July
2013 2012
Audited Audited
Rm Rm
6 CAPITAL COMMITMENTS
Capital expenditure authorised but not contracted:
Store development 259 211
Distribution facilities 60 43
Computer infrastructure 59 51
Motor vehicles 6 6
Head office refurbishment 4 4
Total capital commitments 388 315
The capital commitments will be financed from cash generated from operations and
available cash resources and are expected to be incurred in the 2014 reporting
period.
7 EVENTS AFTER THE END OF THE REPORTING PERIOD
No event, material to the understanding of this preliminary report, has occurred
between the reporting date and the date of approval of the report.
8 IMPACT OF THE 53rd WEEK ON 2012 YEAR-END FINANCIAL REPORTING
In line with the practice generally prevailing in the South African retailing
industry, the Group manages its internal accounting and retail operations in
accordance with the retail calendar, which treats each financial year as an exact
52-week period. This treatment effectively results in the "loss" of a day (or two
in a leap year) per calendar year. These days are brought to account every 5 to
7 years by including a 53rd week in the financial reporting calendar. The Group's
earnings are higher as a result of trading during this week.
Although the Group reported prior period financial results for 53 weeks to
1 July 2012, it is useful and good governance also to report pro-forma information
for a 52-week 2012 comparative period, so as to facilitate comparisons against the
prior and current period results.
The preparation of the unaudited pro-forma 52-week financial information is the
responsibility of the directors. The table below illustrates the unaudited
pro-forma statement of comprehensive income for the 52-week period ended
24 June 2012 (the "pro-forma 52-week information").
The unaudited pro-forma 52-week information for the period ended 24 June 2012 has
been prepared for illustrative purposes only, to indicate how such information
compares to the actual audited results of the Group for the 52-week period
ended 30 June 2013.
The estimated financial impact of the 53rd week in the prior period is shown below.
ABRIDGED GROUP STATEMENTS OF COMPREHENSIVE INCOME
52 weeks Change Change 53 weeks 52 weeks
to 30 June on prior on prior to 1 July 53rd week to 24 June
2013 period period 2012 Adjust- 2012
Audited 53 weeks 52 weeks Audited ment Pro-forma
Rm % % Rm Rm Rm
Sale of merchandise 9 765 11 13 8 830 (183) 8 647
Cost of sales (4 241) 11 13 (3 820) 79 (3 741)
Gross profit 5 524 10 13 5 010 (104) 4 906
Other income 226 9 9 208 - 208
Trading expenses (3 202) 16 16 (2 759) - (2 759)
Depreciation and
amortisation (160) 16 16 (138) - (138)
Employment costs (986) 11 11 (890) - (890)
Occupancy costs (843) 13 13 (746) - (746)
Trade receivable costs (739) 39 39 (533) - (533)
Other operating costs (474) 5 5 (452) - (452)
Trading profit 2 548 4 8 2 459 (104) 2 355
Interest 814 12 12 728 - 728
Dividends 4 33 33 3 - 3
Profit before tax 3 366 6 9 3 190 (104) 3 086
Tax expense (958) (1) 2 (965) 29 (936)
Profit for the period,
fully attributable to
owners of the parent 2 408 8 12 2 225 (75) 2 150
Basic earnings per
share (cents) 570.8 8 12 526.3 508.5
Headline earnings per
share (cents) 570.8 8 12 526.7 509.0
Fully diluted basic
earnings per share
(cents) 560.7 9 12 516.6 499.2
Fully diluted headline
earnings per share
(cents) 560.7 8 12 517.1 499.7
Key ratios
Gross margin (%) 56.6 56.7 56.7
Trading expenses to
sale of merchandise (%) 32.8 31.2 31.9
Trading margin (%) 26.1 27.8 27.2
Operating margin (%) 34.5 36.1 35.7
Notes:
1. The accounting policies adopted by the Group in the prior period audited annual
financial statements, which have been prepared in accordance with International
Financial Reporting Standards, have been used in preparing the unaudited
pro-forma 52-week information.
2. The "53rd week adjustment" column reflects sale of merchandise, the cost of
sales (calculated with reference to the gross profit margin for the 53-week
period) and tax expense (calculated with reference to the actual tax rate for
the 53rd week period) for the one-week period from 25 June 2012 to 1 July 2012,
together with the resultant gross profit, trading profit, profit before tax and
profit for that one-week period.
3. The sale of merchandise for the one-week period from 25 June to 1 July 2012 has
been extracted from the Group's accounting records.
4. The "53rd week adjustment" column, in the opinion of the directors, fairly
reflects the results for the one-week period from 25 June to 1 July 2012.
5. The calculation of earnings per share and headline earnings per share for the
pro-forma 52-week period is based on the weighted average number of shares in
issue over that period.
6. The Group's external auditors have issued a limited assurance report on the
prior period pro-forma 52-week information. A copy of their report is available
at the Group's registered office.
CORPORATE INFORMATION
Truworths International Ltd: Registration number: 1944/017491/06
Tax reference number: 9875/145/71/7
JSE code: TRU
NSX code: TRW
ISIN: ZAE000028296
Registered office: No. 1 Mostert Street, Cape Town, South Africa, 8001;
PO Box 600, Cape Town, 8000, South Africa
Sponsor in South Africa: One Capital Sponsor Services (Pty) Ltd
Sponsor in Namibia: Old Mutual Investment Services (Namibia) (Pty) Ltd
Auditors: Ernst & Young Inc.
Transfer secretaries: Computershare Investor Services (Pty) Ltd, 70 Marshall Street,
Johannesburg, South Africa, 2001; PO Box 61051, Marshalltown, 2107, South Africa;
or Transfer Secretaries (Pty) Ltd, Shop 8, Kaiserkrone Centre, Post Street Mall,
Windhoek, Namibia; PO Box 2401, Windhoek, Namibia
Company Secretary: C Durham
Directors: H Saven (Chairman) §, MS Mark (CEO)*, RG Dow §, CT Ndlovu §,
SM Ngebulana §, RJA Sparks §, AJ Taylor § and MA Thompson §
* Executive § Non-executive Independent
Website: www.truworths.co.za
Date: 22/08/2013 02:30:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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