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JD GROUP LIMITED - Audited results for the year ended 30 June 2013

Release Date: 26/08/2013 10:00
Code(s): JDG     PDF:  
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Audited results for the year ended 30 June 2013

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

JD Group investing in customer service

#AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2013

EBITDA R2,2bn
10 MONTHS - 30 JUNE 2012: R1,8bn
12 MONTHS - 30 JUNE 2012: R2,0bn

OPERATING CASH FLOW R1,6bn
10 MONTHS - 30 JUNE 2012: R777m

TOTAL DIVIDEND MAINTAINED AT 232 cps
10 MONTHS - 30 JUNE 2012: 232 cps

Following the Group's change in year-end in 2012, these provisional results are presented for the 12 months ended 30 June 2013 (FY13) with comparative results for the 
10 months ended 30 June 2012 (FY12). To enable improved comparability, a pro forma statement of comprehensive income and segmental analysis for the 12-month comparable
period ended 30 June 2012 are also presented. 

The commentary presented compares the FY13 results and performance to the 12-month period ended 30 June 2012.

Key features                                  10 months: 30 June 2012             12 months: 30 June 2012
Revenue increased to R32,2 billion                      R25,3 billion                       R29,9 billion
Headline earnings per share of 395 cents                    385 cents*                          441 cents*
Basic earnings per share of 276 cents                       381 cents                           437 cents

Impairment of software of R345 million
Impairment provision on loan book increased to R966 million as at 30 June 2013 (FY12: R557 million)

#  Extracted financial information from the audited results for the year ended 30 June 2013.
*  Restated - refer to note 11 for further information.

Financial statements

SUMMARISED GROUP STATEMENT OF COMPREHENSIVE INCOME                                                                        10 months      Pro forma
                                                                                                           12 months          ended      12 months
                                                                                                               ended   30 June 2012          ended
                                                                                                        30 June 2013      R million   30 June 2012
                                                                                                           R million     (Restated)*     R million
 
Revenue                                                                                                       32 210         25 284         29 885 
Retail operations					
Revenue                                                                                                       27 401         22 071         26 058 
Cost of sales                                                                                                (20 974)       (16 888)       (19 950)
Gross retail profit                                                                                            6 427          5 183          6 108 
Consumer Finance					
Revenue                                                                                                        4 809          3 213          3 827 
Finance costs (net)                                                                                             (323)          (149)          (175)
Debtors' costs (note 2)                                                                                         (914)          (417)          (511)
Risk-adjusted consumer finance income                                                                          3 572          2 647          3 141 
Operating expenses					
Administration and other expenses                                                                             (1 804)        (1 356)        (1 603)
Depreciation and amortisation                                                                                   (489)          (307)          (349)
Employees                                                                                                     (3 957)        (3 068)        (3 684)
Marketing                                                                                                       (469)          (369)          (423)
Occupancy                                                                                                     (1 340)        (1 004)        (1 197)
Transport and travel                                                                                            (553)          (420)          (494)
Capital items (note 3)                                                                                          (356)           (10)           (12)
Total operating expenses                                                                                      (8 968)        (6 534)        (7 762)
Operating profit                                                                                               1 031          1 296          1 487 
Investment income                                                                                                  8              4              5
Finance costs (net)                                                                                             (167)           (61)           (77)
Share of profit/(loss) of associate                                                                                -              2             (1)
Profit before taxation                                                                                           872          1 241          1 414 
Taxation                                                                                                        (240)          (405)          (455)
Profit for the year                                                                                              632            836            959 
Attributable to:					
Shareholders                                                                                                     606            822            943 
Minorities                                                                                                        26             14             16 
                                                                                                                 632            836            959 
EBITDA                                                                                                         2 205          1 752          2 011 
Basic earnings per share (cents)                                                                               276,3          381,1          437,1 
Basic earnings per share as previously stated (cents)                                                                         406,4 		
Headline earnings per share                                                                                    395,2          384,5          440,8
Headline earnings per share as previously stated (cents)                                                                      409,9 		

SUMMARISED GROUP STATEMENT OF FINANCIAL POSITION                                                                                      30 June 2012
                                                                                                                        30 June 2013     R million
                                                                                                                           R million    (Restated)*
Assets			
Bank balances and cash                                                                                                           973         1 532 
Taxation                                                                                                                          34            41 
Financial assets                                                                                                                   3             1 
Inventories                                                                                                                    4 049         3 723 
Trade, loan  and other receivables                                                                                            10 804         8 209 
Vehicle rental fleet                                                                                                             455           372 
Deferred taxation                                                                                                                254           196 
Investments and loans                                                                                                             81            63 
Interest in associate and joint venture companies                                                                                 47             4 
Property, plant and equipment                                                                                                  2 788         2 364 
Intangible assets (note 4)                                                                                                     2 127         1 631 
Goodwill (note 4)                                                                                                              1 519         1 396 
Total assets                                                                                                                  23 134        19 532 
Equity and liabilities			
Bank overdraft                                                                                                                   182             9 
Taxation                                                                                                                          99            66 
Trade and other payables                                                                                                       5 275         5 024 
Provisions                                                                                                                         6             6 
Deferred taxation                                                                                                                562           716 
Non-interest bearing liabilities                                                                                                 237           207 
Interest-bearing liabilities                                                                                                   7 632         4 623 
Total liabilities                                                                                                             13 993        10 651 
Share capital                                                                                                                  4 693         4 245 
Treasury shares                                                                                                                 (221)         (245)
Non-distributable and other reserves                                                                                             162           265 
Retained earnings                                                                                                              4 422         4 529
Shareholders' equity                                                                                                           9 056         8 794 
Minority shareholders' interest                                                                                                   85            87 
Total equity                                                                                                                   9 141         8 881 
Total equity and liabilities                                                                                                  23 134        19 532 
The statement of financial position is presented based in order of liquidity, 
as allowed in terms of IAS 1. 			 
Directors' valuation of unlisted investments                                                                                      69            63
Capital expenditure authorised and contracted                                                                                     38           518 
Capital expenditure authorised and not yet contracted                                                                            358           230 
Operating lease commitments                                                                                                    2 935         2 736 
Net asset value per share (cents)                                                                                              4 013         4 075 

Refer to note 11.

SUMMARISED GROUP STATEMENT OF OTHER COMPREHENSIVE INCOME	
                                                                                                                          10 months      Pro forma
                                                                                                           12 months          ended      12 months
                                                                                                               ended   30 June 2012          ended
                                                                                                        30 June 2013      R million   30 June 2012
                                                                                                           R million     (Restated)*     R million

Profit for the year                                                                                              632            836            959 
Exchange differences on translating foreign operations                                                             3             (3)            (3)
Total comprehensive income for the year                                                                          635            833            956 
Attributable to:					
Shareholders                                                                                                     609            819            940 
Minorities                                                                                                        26             14             16 
                                                                                                                 635            833            956 
SUMMARISED GROUP STATEMENT OF CHANGES IN EQUITY	
                                                                                                                                         10 months      
                                                                                                                          12 months          ended     
                                                                                                                              ended   30 June 2012         
                                                                                                                       30 June 2013      R million   
                                                                                                                          R million     (Restated)*

Share capital and premium                                                                                                     4 693          4 245 
Opening balance                                                                                                               4 245          4 245 
Issue of shares	                                                                                                                448              - 
Treasury shares                                                                                                                (221)          (245)
Opening balance                                                                                                                (245)          (263)
Shares purchased by share incentive trust                                                                                         -             (2)
Proceeds on disposal of shares by share incentive trust                                                                           7             10 
Loss on disposal of treasury shares                                                                                              17             10 
Share-based payment reserve                                                                                                      52            101 
Opening balance                                                                                                                 101            115 
Share-based payment through comprehensive income                                                                                (22)            33 
Payments                                                                                                                         (8)            (5)
Transfer to retained income                                                                                                     (19)           (42)
Non-distributable reserves                                                                                                      110            164 
Opening balance                                                                                                                 164            116 
Translation of foreign entities                                                                                                   3             (3)
Equity settled bonds                                                                                                              -             51 
Premium on acquisition of non-controlling interests                                                                             (11)             - 
Transfer to retained income                                                                                                     (46)             - 
Retained earnings                                                                                                             4 422          4 529 
Opening balance                                                                                                               4 529          3 860 
Profit attributable to shareholders                                                                                             606            822 
Loss on disposal of treasury shares                                                                                             (17)           (10)
Distributable to shareholders                                                                                                  (774)          (220)
Distributable to share incentive trust                                                                                           13              4 
Transfer from share-based payment reserve                                                                                        19             42 
Transfer to/(from) non-distributable reserves                                                                                    46              - 
Transfer from reserves of a disposed business                                                                                     -             34 
Arising on disposal of shareholding in subsidiary                                                                                 -             (3)
			
Shareholders' equity                                                                                                          9 056          8 794 
Minority shareholders' interest                                                                                                  85             87 
Opening balance                                                                                                                  87             58 
Profit attributable to minorities                                                                                                26             14 
Dividends paid to minorities                                                                                                     (8)            (8)
Funding received and increased investment by minorities                                                                          (1)            27 
Net disposal of joint venture interests                                                                                         (19)            (4)
Total                                                                                                                         9 141          8 881

SUMMARISED GROUP CASH FLOW STATEMENT	
                                                                                                                                         10 months      
                                                                                                                          12 months          ended     
                                                                                                                              ended   30 June 2012         
                                                                                                                       30 June 2013      R million   
                                                                                                                          R million  (Reclassified)*
Cash flows from operating activities			
Cash generated by trading                                                                                                     1 874          1 651 
Increase in working capital                                                                                                    (296)          (874)
Cash generated by operations                                                                                                  1 578            777
Net increase in instalment sale and loan receivables                                                                         (2 478)        (1 332)
Dividends paid                                                                                                                 (761)          (216)
Net finance costs paid                                                                                                         (167)           (61)
Taxation (paid)/received                                                                                                       (412)            21 
Dividends received                                                                                                                2              - 
Investment income                                                                                                                 -              4 
Net cash flows from operating activities                                                                                     (2 238)          (807)
Cash flows from investing activities			
Additions to property, plant and equipment and intangible assets                                                             (1 225)        (1 143)
Acquisition of businesses                                                                                                      (304)          (105)
Net cash flow on disposal of businesses                                                                                          (1)           126 
Investment and loans (advances)/receipts                                                                                         (9)            21 
Proceeds on disposal of property, plant and equipment                                                                            45             35 
Loan repaid by associate and joint ventures                                                                                       -              2 
Net cash flow from investing activities                                                                                      (1 494)        (1 064)
Cash flows from financing activities			
Net increase in borrowings                                                                                                    3 009          1 031 
Dividends paid to non-controlling interest                                                                                       (8)            (8)
Proceeds on disposal of treasury shares by share incentive trust                                                                  7             10 
Share-based payment settled                                                                                                      (8)            (5)
Acquisition of shares by share incentive trust                                                                                    -             (2)
Funding received from non-controlling interest                                                                                    -             20 
Proceeds from convertible bonds                                                                                                   -          1 000 
Net cash flow from financing activities                                                                                       3 000          2 046
Net (decrease)/increase in cash and cash equivalents                                                                           (732)           175 
Cash and cash equivalents at beginning of the year                                                                            1 523          1 348 
Cash and cash equivalents at end of the year                                                                                    791          1 523

SUPPLEMENTARY INFORMATION	
                                                                                                                                         10 months      
                                                                                                                          12 months          ended     
                                                                                                                              ended   30 June 2012         
                                                                                                                       30 June 2013      R million   
                                                                                                                          R million     (Restated)*
Reconciliation of headline earnings			
Profit attributable to shareholders                                                                                             606            822 
Capital items (note 3)                                                                                                          356             10 
Taxation thereon                                                                                                                (96)            (3)
Headline earnings                                                                                                               866            829 
Number of shares in issue (000)                                                                                             229 338        219 830 
Number of treasury shares (000)                                                                                              (3 657)        (4 032)
Number of shares held outside the Group (000)                                                                               225 681        215 798 
Weighted average number of shares in issue (000)			
- basic                                                                                                                     219 157        215 742 
- diluted headline earnings                                                                                                 237 609        217 552 
- diluted earnings                                                                                                          219 772        217 552

Headline earnings per share (cents) - diluted                                                                                 391,3          381,3 
Basic earnings per share (cents) - diluted                                                                                    275,5          377,9 
Operating margin (%)                                                                                                           3,2%           5,1%
Distribution to shareholders (cents)                                                                                            232            232 
- interim                                                                                                                       115            100 
- final (proposed)                                                                                                              117            132 
The earnings and headline earnings per share are calculated in R thousand as opposed to R million.

#AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2013

NOTES
1.   Accounting policies
     The summarised financial information has been prepared in accordance with the framework concepts and the measurement and recognition requirements of International
     Financial Reporting Standards (IFRS), the SAICA Financial Reporting Guide as issued by the Accounting Practices Committee and the Financial Reporting Pronouncements 
     as issued by the Financial Reporting Standards Council, 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 10-month period ended 30 June 2012, 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.
		
                                                                                                                                         10 months      
                                                                                                                          12 months          ended     
                                                                                                                              ended   30 June 2012         
                                                                                                                       30 June 2013      R million   
                                                                                                                          R million     (Restated)*
2.   Debtors' costs (Consumer Finance)			
     Increase in impairment provision                                                                                           409             12 
     Bad debts written off                                                                                                      505            405 
                                                                                                                                914            417 
3.   Capital items			
     Impairment of goodwill                                                                                                      12              - 
     Impairment of property, plant and equipment                                                                                  5              -
     Impairment of intangible assets (software)                                                                                 345              - 
     Net (profit)/loss on disposal of assets                                                                                     (6)            10 
                                                                                                                                356             10
4.   Goodwill and intangible assets 			
     The increase in the goodwill relates to the acquisitions of the Reeds Group and Hardware Warehouse 
     during the year. Intangible assets of R15 million were raised on these acquisitions. The remainder of the 
     intangible assets relates to the ERP system, post impairment.
			
5.   Trade, loan and other receivables			
     Instalment sale and loan receivables                                                                                     9 731          7 253 
     Trade receivables                                                                                                        1 105            659 
     Total instalment sale, loan and trade receivables                                                                       10 836          7 912 
     Less: Impairment provision                                                                                              (1 017)          (610)
     Net instalment sale, loan and other receivables                                                                          9 819          7 302 
     Other receivables                                                                                                          985            907 
     Total trade, loan and other receivables                                                                                 10 804          8 209 
     Provisions as a percentage of total instalment sale, loan and trade receivables (%)                                         9%             8%


6.   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.

7.   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.

8.   Subsequent events
     No significant events have occurred in the period between 30 June 2013 and the date of this announcement.

9.   Pro forma adjustments
     A pro forma statement of comprehensive income for the year ended 30 June 2012 has been presented due to the prior year's change in year-end from August to June. 
     The presentation of this supplementary pro forma information is the responsibility of the directors. The pro forma results have been reviewed by Deloitte & 
     Touche, who have issued an unmodified opinion in terms of ISAE 3420 thereon. The relevant details of the pro forma adjustments made to the results to 
     30 June 2012 will be disclosed on SENS.

10.  IFRS 2 Share-based payments
     The Group has reassessed the performance criteria in respect of the Share Appreciation Rights Scheme tranches 1, 2 and 3 and concluded that the performance 
     criteria will not be achieved and the rights will therefore not vest. Amounts previously recognised were reversed in the current year.

11.  Restatement of comparatives
     The increased focus on consumer finance products within the Group has led to a re-presentation of the Statement of Comprehensive Income in a manner that more 
     appropriately reflects the results of both the consumer finance and other segments in the Group. The statement of financial position is presented in order of 
     liquidity, as allowed in terms of IAS 1. This is a change in presentation from the prior year.

     In the prior year, the Income Tax Act was amended to state that Capital Gains Tax would in future be calculated at an inclusion rate of 66%. Despite the 
     legislation change only being promulgated subsequent to the year-end, IAS 12, Income Tax, requires deferred tax to be measured at tax rates expected to apply 
     when the asset is realised or the liability settled, based on the tax rates substantively enacted by the end of the reporting period.
	
     Deferred tax on certain intangible assets was incorrectly raised at the previous inclusion rate of 50%. The deferred taxation was restated at the correct 
     inclusion rate which resulted in a prior year restatement of taxation and deferred taxation of R55 million. The restatement had the following effect on 
     comparative amounts:

                                                                                                          Amounts as
                                                                                                          previously       Amounts
                                                                                                            reported   as restated
                                                                                                           R million     R million

     Taxation                                                                                                    350           405 
     Deferred taxation liabilities                                                                               661           716 
     Retained income                                                                                           4 584         4 529 

     Shareholders for dividend has been reclassified to retained earnings on the statements of changes in equity and  financial position. The prior year cash 
     flow numbers have been reclassified, in line with current year classification, to reflect the cash flows on the acquisition and disposal of rental fleet 
     vehicles under operating activities (previously under investing activities).


SEGMENTAL ANALYSIS 		
                                                        RETAIL*                    CONSUMER FINANCE                AUTOMOTIVE                    CORPORATE                       GROUP
for the year ended 30 June 2013**              12 months     12 months         12 months     12 months      12 months      12 months     12 months      12 months      12 months       12 months
                                                   ended         ended             ended         ended          ended          ended         ended          ended          ended           ended
                                            30 June 2013  30 June 2012      30 June 2013  30 June 2012   30 June 2013   30 June 2012  30 June 2013   30 June 2012   30 June 2013    30 June 2012

Revenue                                  Rm       12 562        12 312             4 809         3 825         15 504         14 348         (665)^          (600)        32 210          29 885 
Operating profit                         Rm          383           542               862           784            472            468         (686)+          (307)         1 031           1 487 
Depreciation and amortisation            Rm          142           126                62            41            134            130          151              52            489             349 
Total assets                             Rm        3 181         2 996            10 958         7 930          6 096          5 379        2 899           3 227         23 134          19 532 
Total current liabilities                Rm        2 032         2 344               511           280          2 951          2 358        2 086           1 207          7 580           6 189 
Capital expenditure                      Rm        1 204           180               126           230            816            488          314             714          2 460           1 612 
Operating margin                          %          3,0           4,4              17,9          20,5            3,0            3,3                                         3,2             5,0 
Number of stores                                   1 193         1 186                                            114            115                                       1 307           1 301 
Instalment sale and other loan
receivables                              Rm                                        9 731         7 253                                                                     9 731           7 253 
Impairment provision                     Rm                                          966           557                                                                       966             557 
Bad debts written off                    Rm                                          505           405                                                                       505             405  
     
The segmental analysis has been presented to reflect the current group reporting structure in terms of IFRS 8.

*   Includes the Furniture Retail chains, HiFi Corp, Incredible Connection and SteinBuild.	
**  All June 2012 numbers are pro forma numbers for the 12-month comparable period.	
^   Elimination of interdivisional origination fees.
+   Includes all the impairment losses per note 3.
#   Extracted financial information from the audited results for the year ended 30 June 2013.

for additional information www.jdg.co.za

Commentary

YEAR UNDER REVIEW
The South African retail environment continues to be challenging as a result of the ongoing pressure on the disposable income of customers and increased debt-to-income
levels. In response to this, the Group applied a more conservative lending strategy and this placed pressure on the Group's retail sales and credit approval rates. 

Operating expenses for the year increased by R1,2 billion, on a comparable basis, to R9,0 billion. Apart from the normal inflationary increases in employee and occupancy 
costs, the increase includes duplicated implementation costs (R74 million), additional depreciation (R140 million) and an impairment charge of the enterprise resource planning 
(ERP) system (R345 million). At year-end, the carrying value of the ERP system was compared to its replacement value and this resulted in 
an impairment charge. 

FINANCIAL REVIEW

General
The key features of the FY13 results are as follows:

- An increase of 9,6% in EBITDA to R2,2 billion (12 months - June 2012: R2,0 billion)
- Operating cash flow increased to R1,6 billion (10 months - June 2012: R777 million)
- Total dividend per share maintained at 232 cents for the year (FY12: 232 cents)
- Revenue increased by 7,8% to R32,2 billion (12 months - June 2012: R29,9 billion)
- Headline earnings per share decreased to 395 cents (12 months - 30 June 2012: 441 cents*)
- Impairment of software of R345 million contributing to a reduction in basic earnings per share of approximately R1,10 per share
- Basic earnings per share decreased 36,8% to 276 cents (12 months - June 2012: 437 cents*)
- Impairment provision on loan book increased to R966 million as at 30 June 2013 (FY12: R557 million)
* Restated - refer to note 11.

Retail
The Retail business, comprising furniture, consumer electronics, appliances, building materials and DIY, generated merchandise sales of R11,6 billion, representing an 
increase of 2% on a comparable basis. Gross margins were successfully maintained at 30%. In line with the Group's conservative lending strategy, the average credit 
sale acceptance rate decreased by 2,3% in FY13 as a result of stricter credit-granting criteria adopted and fewer customers qualifying for credit due to increased 
indebtedness. This affected retail sales growth. 

The Retail segment's operating profit decreased to R383 million and was influenced by the following factors:
- Duplicated costs due to the continued implementation of infrastructure investments in the furniture chains, including the centralised distribution centres
  (CDCs). These duplicated costs amount to approximately R74 million and include distribution, transition, occupation and employment costs 
- Increased occupancy and refurbishment costs as a result of HiFi Corp selectively moving stores into high-foot traffic shopping centres.

The implementation of the ERP system and CDCs is nearing completion which is anticipated during FY14. The time required for bedding down the system 
and processes will result in some continued duplication of operating costs in FY14, whereafter the anticipated savings from these investments will be realised.

A number of underperforming furniture stores were closed during the second half of the year as part of the Group's footprint optimisation strategy. The Group is also 
in the process of optimising the size of its stores, which presents benefits from a cost perspective.

SteinBuild's repeated good performance this year was supported by the acquisition of Hardware Warehouse Ltd which includes 17 stores. The integration of this business 
is progressing very well.

Consumer Finance
The Consumer Finance business reported increased profits despite the deteriorating financial position of the target-market consumer and the stricter lending criteria 
which resulted in reduced credit approval rates. Operating profit of the Consumer Finance segment increased by 10% to R862 million. 

The loan book, before credit impairments, has grown by R2,5 billion, consisting of R1,0 billion in secured loans and R1,5 billion in unsecured loans. In line with the 
Group's credit-granting methodology, this growth, in particular the growth in unsecured loans which require higher provisioning, resulted in debtors' cost increasing 
to R914 million. Monthly secured loan collection rates were also impacted by the deteriorating financial position of consumers, decreasing to 7% (FY12: 8%). 
At year-end the impairment provision of R966 million (FY12: R557 million) represented approximately 9,9% (FY12: 7,7%) of the book and is in line with the Group's 
loan provision methodology. 

The Group remains confident in the sustainable profitability of this business bearing in mind that there still remains flexibility in our pricing model to increase 
income yields as a result of the risk-based pricing models that we have adopted. This provides the business with a comfortable operating buffer ensuring acceptable 
returns. 

The business continues to invest in processes to ensure continued compliance with regulations and readiness for regulatory changes.

Automotive
Unitrans Auto increased revenue by 8,1% on a comparable basis and maintained margins at 3,0% (FY12: 3,3%). 

The continued investment by Unitrans through acquisitions like the Reeds Group (acquired 1 December 2012) provides additional opportunities for growth. 

Statement of financial position and cash flow
JD Group's debut Domestic Medium Term Note issue was well received by the market and the Group raised notes, amounting to a total of R3,1 billion, between October 
2012 and May 2013 at floating interest rates varying between 65 and 183 basis points above the three-month Jibar rate.
 
Operating cash flow increased to R1,6 billion (10 months - June 2012: R777 million) with the investment in working capital reducing to R296 million 
(10 months - June 2012: R874 million). R2,5 billion was invested in the growth of the debtors' book. The increase in property, plant and equipment of R1,2 billion 
includes the investment in the new CDCs. In addition, the rental fleet at Hertz was re-stocked at a net investment of R183 million.

The statement of financial position reflects net gearing of R6,8 billion, comprising the Consumer Finance division, geared at 132% and the remaining segments geared 
at 28% to shareholders' equity. This planned increase in gearing is a result of the above-mentioned investments being funded entirely by debt. The increase in net 
gearing has resulted in an increase in the net interest expense to R490 million (12 months - June 2012: R252 million).

PROSPECTS
Management's view is that the over-extended consumer and challenging trading environment will continue into the foreseeable future. The Group will nevertheless 
focus on growing market share, conservative credit-granting, responsible lending and intensive cost containment. 

The implementation of the ERP system, centralisation of distribution and optimisation of the Group's store footprint is nearing completion, enabling the Group to 
realise the benefits of these significant investments in the coming years.

CHANGES TO THE BOARD
As announced on SENS the following changes to the Board occurred during the year:
- Bennie van Rooy, the previous Chief Financial Officer (CFO) was appointed as Chief Executive Officer (CEO) of the Group's Consumer Finance division on 1 March 2013. 
  Jan van der Merwe was appointed on the same date and assumed the role of CFO.
- Dr HP Greeff, the Executive Director  Strategy and Human Resources, resigned from the Board on 22 February 2013.
- Grattan Kirk, the previous CEO of JD Group, resigned from the Board with effect from 20 February 2013. David Sussman, previously fulfilling the role of Executive 
  Chairman, assumed the role of CEO, while Vusi Khanyile, the prior lead independent non-executive director, was elected as the independent non-executive Chairman of 
  the Board.
- Ian Thompson, the Executive Director  Finance and Corporate Affairs, resigned from the Board on 23 May 2013.

AUDIT OPINION OF THE INDEPENDENT AUDITOR
The annual financial statements for the year have been audited by Deloitte & Touche, and their accompanying unmodified audit report as well as their unmodified audit 
report on this set of summarised financial information is available for inspection at the company's registered office. Information included under the headings 
"prospects" and "financial review" has not been audited or reviewed. Shareholders are therefore advised that in order to obtain a full understanding of the nature of 
the auditors' engagement they should obtain a copy of their report with the accompanying financial information from the Company's registered office. Full details of 
the Group's business combinations for the year, additions and disposals of property, plant and equipment as well as commitments and contingent liabilities will be 
included in the Group's Integrated Report to be published.

The results were approved by a sub-committee of the Board of Directors on 26 August 2013.

DECLARATION OF A FINAL DIVIDEND

Financial statements
Notice is hereby given that the directors have declared a final gross dividend of 117 cents per share, from retained earnings, for the year ended 30 June 2013. In 
accordance with the settlement procedures of Strate, the following dates will apply to this final dividend:

Last day to trade cum dividend Friday, 11 October 2013

Trading ex dividend commences Monday, 14 October 2013

Record date Friday, 18 October 2013

Dividend payment date Monday, 21 October 2013

Share certificates may not be dematerialised or re-materialised between Monday, 14 October 2013 and Friday, 18 October 2013, 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 
99,45 cents per share net of DT. The Company has 229 338 322 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, 21 October 2013. 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, 21 October 2013.

The proposed final dividend will most likely require an adjustment to the conversion price of the convertible bond. Further details will be communicated on SENS.

The Company's annual general meeting will be held on 20 November 2013 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

Vusi Khanyile
Independent chairman 

David Sussman 
Chief executive officer 

Jan van der Merwe
Chief financial officer
26 August 2013


EXECUTIVE DIRECTORS ID Sussman (Chief executive officer), KR Chauke, JHN van der Merwe (Chief financial officer), BJ van Rooy 
INDEPENDENT NON-EXECUTIVE DIRECTORS VP Khanyile (Independent chairman), N Bodasing, M Lock, MP 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 JHN van der Merwe CA(SA) 
REGISTERED OFFICE 11th Floor, JD House, 27 Stiemens Street, Braamfontein, Johannesburg, 2001 (PO Box 4208, Johannesburg, 2000) TELEPHONE +27 11 408 0408 
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 +1 201 680 6825 FACSIMILE +1 212 635 1121 
SPONSOR PSG Capital Proprietary Limited, First Floor, Building 8, Inanda Greens Business Park, 54 Wierda Road West, Wierda Valley, Sandton, 2196 
TELEPHONE +27 11 032 7400 FACSIMILE +27 11 784 4755 
INDEPENDENT AUDITOR Deloitte & Touche

www.jdg.co.za




Date: 26/08/2013 10:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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