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Reviewed Group results for the six months ended 31 December 2013 and interim cash dividend
Italtile Limited
Share code: ITE ISIN: ZAE000099123
Registration number: 1955/000558/06
Incorporated in the Republic of South Africa
(“Italtile” or “the Group” or “the company”)
Reviewed Group results for the six months ended 31 December 2013 and interim cash dividend
Commentary
Overview for the six months ended 31 December 2013
Established 44 years ago, Italtile is South Africa’s longest-standing and leading franchisor and retailer of local and
imported tiles, sanitaryware, bathware, laminated wooden flooring and other related home-finishing products. The
Group’s brand portfolio comprises Italtile Retail, CTM and TopT and is represented locally by a national network of 98 stores
with a further 16 stores situated in the rest of Africa. The brand offering targets homeowners in the LSM categories 3 to 10.
Italtile’s retail operation is underpinned by a strategic property investment portfolio and vertically integrated
supply chain.
Trading environment
In the context of subdued economic growth and intensified pressure on consumer disposable income, participants in the
building and construction industry were compelled to deliver optimal performances to retain and gain market share.
The renovations sector continued to experience greater activity than the new build sector, but generally, growth in
these markets remained muted. Consumers in the middle income segment were particularly price sensitive, whereas
entry-level and premium-end customers demonstrated greater resilience.
Financial highlights - continuing operations
Despite the testing trading conditions experienced, the Group delivered sound results for the six months under review.
During the reporting period the Group disposed of the following non-core businesses:
- The eight store CTM retail operation in Australia via a facilitated management buyout;
- Allmuss Properties Zambia Limited - a property holding company; and
- Cladding Finance Proprietary Limited - a niche provider of outsourced debtors’ solutions.
Accordingly, the summarised financial information presented below refers to continuing operations only.
- System-wide turnover grew 15% to R2,30 billion (2012: R2,00 billion).
- Revenue from Group-owned stores and entities increased 31% to R1,37 billion (2012: R1,05 billion), significantly
impacted by the conversion and contribution of nine previously franchised CTM stores to Group-owned stores during the
period, and the opening of one new CTM.
Excluding the contribution from these ten stores, turnover from comparable Group-owned stores and entities increased
by 15%.
- Reported trading profit rose 22% to R379 million (2012: R311 million). The Group’s achieved gross margins remained
relatively constant due to containment of sales related costs, improvement in the sales mix, and despite cost pressures
in the supply chain which were largely absorbed to support price competitiveness of the retail operations. Average
selling prices were inflation-linked.
- Basic earnings per share (“EPS”) increased 19% to 28,6 cents per share (2012: 23,9 cents), while headline earnings
per share (“HEPS”) grew 16% to 28,0 cents per share (2012: 24,0 cents). HEPS have been adjusted for the post-taxation
impact of the following once-off events:
* Profit of R2,4 million achieved on the sale of a property in South Africa; and
* Profit of R4,4 million achieved on the sale of Allmuss Properties Zambia Limited (referred to above).
Both the EPS and HEPS calculations include a R14 million IFRS 2 charge, of which R11 million is a once-off charge,
related to an equity-settled staff share incentive scheme implemented during the six-month period.
- Inventory increased to R449 million due to the increase in company owned CTMs and higher stock holdings at the
Group’s two Distribution Centres and Cedar Point business - a deliberate strategy to promote an expanded merchandise range
and support customer demand for always-in-stock product. The increase is also a function of anticipating supply delays
while Chinese markets remain closed over that country’s New Year celebrations. Management is satisfied that the stock on
hand is current and saleable, and that levels should be reduced by year end.
- Capital expenditure of R102 million was incurred (2012: R95 million) largely aimed at enhancing the Group’s global
property investment portfolio and revamping store shop fittings and signage.
- Cash and cash equivalent reserves at the end of the period were R177 million reflecting capital expenditure, the
payment during the reporting period of the special dividend of 50 cents per share declared for the 2013 financial year and
repayment of R150 million of a R400 million short-term loan. The business continues to be strongly cash generative, and
management is satisfied that the Group’s capital structure is being adequately employed.
Key to the Group’s growth
- In the current subdued economic climate, the Group’s year-round value offering (comprising fashion, service,
quality and price) continued to find favour with discerning, price-sensitive consumers.
- The Group’s stated policy to offer the right product in the right place at the right time and price drove an
increase in market share in an industry currently suffering from inconsistency of supply and quality. This strategy was
supported by the Group’s integrated supply chain which enabled competitive pricing and ensured stock availability.
- Intensified implementation of Best Practice disciplines enhanced systems and operations and improved the in-store
shopping experience for customers.
- Cost containment and profitability remained a key performance indicator during the period and good progress was
achieved in instilling practices to foster sustainable businesses.
- Ongoing implementation of IT innovation improved functionality in-store and increased the speed and quality of
customer service. Further development of the Group’s well-received on-line web-shopping offering is anticipated to continue
to provide a material competitive advantage.
Operational review
Improved revenues were recorded by the retail operations and supply chain businesses, and the Group gained market
share across most of its merchandise categories. Each of the three brands, Italtile Retail, CTM and TopT increased both
their basket sizes and the number of transactions completed. Good growth was reported in all regions with the exception of
Limpopo and the Free State. The improved performances delivered by the Western Cape and KwaZulu-Natal regions are
attributable to the Group’s deliberate strategy to re-invigorate underperforming regions through enhanced management structures,
facilitating greater collaboration between stores regarding stock management and benchmark operating practices.
Italtile Retail
Entrenched as the industry fashion trend-setter, this brand advanced its growing presence in the up-market commercial
projects sector, reporting solid growth in tile and sanitaryware sales. The business intends to expand this offering
in the future.
One new store, The Glen, situated in Southern Johannesburg, was opened during the six months. The solid initial
performance delivered by this store is expected to continue to improve.
CTM: South Africa
During the period good volume growth was reported by the business, particularly in the tile and bathroom furniture
categories. The Group’s Summer promotion proved very popular and innovations in marketing formats boosted customer
awareness, resulting in sound growth in advertised products of brands such as Tivoli and Kilimanjaro.
CTM progressed its goal to deliver an appealing shopping experience, revamping 19 stores, 11 of which were major
refurbishments. A further 12 stores will undergo revamps in the next six months.
Launched in April 2013, the CTM web-store underwent further enhancement and development, resulting in substantially
increased pre-purchase online activity. This offering is a strong marketing tool and in-store enabler, affording the Group
an important strategic advantage.
CTM: Rest of Africa
Good growth was achieved in the East African region, with the recently opened store in Nairobi trading soundly and a
new store opened in Tanzania. However despite this performance and the strong demand from markets in the territory,
logistical and infrastructural constraints continue to hamper expansion of the Group’s store footprint.
Sales in neighbouring countries, Swaziland, Namibia, Lesotho and Botswana also increased due to improved stock
availability and an enhanced offering.
CTM: Australia
During the period the Group disposed of its eight store CTM retail business in Australia via a facilitated management
buyout. The intention in the short term is to retain and manage this operation’s property portfolio; market conditions
will determine the longer term strategy regarding this investment.
TopT
This business delivered strong growth in home-finishing products catering for entry-level price-sensitive consumers.
During the review period four new stores were opened and are trading well. Management’s goal is to implement an extensive
roll-out campaign of the brand network over the next five years. In this regard, while sites have been located and
markets identified, management’s key challenge is to appoint and train suitable franchisees and store operators, an
undertaking which is critical to the success of the TopT model.
Support services
The Group’s vertically integrated supply chain comprises ITD (an importer and supplier of brassware), Distribution
Centre (an importer and distributor of tiles and sanitaryware) and Cedar Point (an importer and supplier of laminated
flooring, bathroom furniture and décor). During the period improvements in the supply chain were achieved, and despite
increased input costs, each of the businesses played a critical role in supporting the retail operations through competitive
pricing. Prudent inventory levels ensured consistent availability of product and assisted the Group in gaining market
share in a volatile environment.
Investment in associates
Ceramic Industries Limited (“Ceramic”)
Production difficulties experienced in certain of Ceramic’s factories as reported at the year end were addressed in
the review period, resulting in consistently improved product quality.
The Group’s tactical investment in this business aimed at supporting its growth strategy proved particularly
beneficial in the reporting period. Uninterrupted supply of sanitaryware was achieved during the second quarter when a general
shortage developed in the market. In addition, Ceramic’s high quality large format tiles provided an important alternative
to imported product which became increasingly costly as the Rand devalued.
Across the business, an enhanced financial performance was delivered, resulting in a R10 million contribution to Group
profit for the period.
During the six months under review, Ceramic distributed a special dividend to shareholders, thereby reducing the
investment value of the business on Italtile’s Statement of Financial Position.
Ezeetile
This business continued to improve its efficiencies as a result of enhanced business processes, including the bedding
down of SAP. Good sales growth was experienced in both the Group’s store network and amongst independent customers.
Higher imported raw material costs and distribution costs offset the improved performance, and Ezeetile’s contribution to
Group profits for the period totalled R3 million (2012: R3 million).
Global Property Investment
The Group’s retail operation is supported by a strategic property portfolio which comprises high profile, easily
accessible stores that are well maintained and aesthetically attractive, serving to enhance the shopping experience for
customers.
Capital expenditure of R58 million was incurred on store expansion, new build and acquisition of properties, bringing
the total market value of the portfolio to in excess of R1,65 billion, and a carrying value of R1,18 billion.
Staff share scheme
During the reporting period an equity-settled staff share scheme was implemented, consistent with the Group’s ethos of
promoting partnership with its employees and incentivising them to participate in the growth and profitability of the
business. As at 1 August 2013, 15 million shares were allocated to qualifying South African staff members, including
those of franchised stores, with a minimum of three years of service, translating into 30 000 shares per individual. The
shares have a three year vesting period, and the net shareholding at the end of the period is dependent on the appreciation
of the Group’s share price. A second allocation will be made on 1 August 2014 to all qualifying foreign staff and other
staff members who achieve three years of service at this date.
Directorate
The Group has appointed Jan Potgieter, CA(SA), as Chief Operating Officer with effect from 1 August 2014. Mr Potgieter has
extensive senior level experience in the retail and supply chain sectors having most recently served as Chief Executive Officer
and formerly Financial Director at his previous company, a major national South African retailer.
Upon joining the Group on 1 August 2014, Mr Potgieter will also be appointed to the Italtile Limited Board.
Mr Potgieter’s appointment follows that of Mr Nick Booth, who will assume the position of Chief Executive Officer with
effect from 1 July 2014.
These key appointments are in line with the Board’s strategy to enhance management depth and succession planning
across the Group.
Prospects
The impact of rising living costs on disposable income will continue to constrain consumption, particularly in the
middle income segment. Additional anticipated interest rate increases induced by rising inflation resulting from further
Rand weakness, will exacerbate the hardship. Markets at the top and bottom ends of the LSM spectrum are likely to remain
more buoyant and provide good growth prospects to retailers with unique offerings targeted at those consumers.
Inevitably the durable merchandise market segment will face increasing pressure as discretionary spend tightens
further, and intensified price wars are likely to ensue. In this environment, the Group’s stated policy is to adhere to its
year-round value offering position (fashion, quality, price and service) and prioritise operational and supply chain
efficiencies in order to provide consumers with pricing advantages wherever possible.
The Group will continue to focus on improving performance consistency across its stores through its Best Practices
disciplines. Continued investment in systems and skills training will remain a priority, while innovation in products and
technology will continue to underpin the Group’s unwavering goal to retain and grow its market leadership position.
Basis of preparation of accounting policies
The Reviewed Interim Profit Announcement has been prepared in accordance with the framework concepts and the
measurement and recognition requirements of International Financial Reporting Standards and the SAICA Financial Reporting Guides
as issued by the Accounting Practices Committee and Financial Reporting Pronouncements as issued by the Financial
Reporting Standards Council, and contains the information required by International Accounting Standard 34, Interim Financial
Reporting. These results have been prepared under the supervision of Chief Financial Officer, Mr B G Wood CA(SA).
Subsequent events
No events have occurred subsequent to the reporting period that require any additional disclosures or adjustments.
Cash dividend
The Group has maintained its dividend cover of three times. The Board has declared an interim gross cash dividend of 9,0
cents per share (2012: 8,0 cents), a 13% increase.
Dividend announcement
The Board has declared an interim gross cash dividend (number 95) for the six months ended 31 December 2013 of 9,0 cents per
ordinary share to all shareholders recorded in the books of Italtile Limited.
Shareholders are hereby advised that the dividend will be subject to the Dividends Tax. In accordance with paragraphs
11.17 (a) (i) to (x) and 11.17 (c) of the JSE Listings Requirements, the following additional information is provided:
- The dividend has been declared out of income reserves.
- The local dividend tax rate is 15% (fifteen percent).
- There are Secondary Tax on Companies (“STC”) credits to be utilised to the amount of R1 million or 0,09798 cents per
share.
- The gross local dividend amount is 9,00000 cents per share for shareholders exempt from the Dividends Tax.
- The net local dividend amount is 7,66470 cents per share for shareholders liable to pay the Dividends Tax.
- The local dividend withholding tax amount is 1,33530 cents per share for shareholders liable to pay the Dividends
Tax.
- Italtile’s income tax reference number is 9050182717.
- Italtile has 1 033 332 822 shares in issue including 25 488 781 shares held by the Share Incentive Trust and 88 000 000 shares
held as BEE treasury shares.
The cash dividend timetable is structured as follows: the last day to trade cum dividend in order to participate in
the dividend will be Friday, 28 February 2014. The shares will commence trading ex dividend from the commencement of
business on Monday, 3 March 2014 and the record date will be Friday, 7 March 2014. The dividend will be paid on
Monday, 10 March 2014. Share certificates may not be dematerialised or rematerialised between Monday, 3 March 2014 and
Friday, 7 March 2014, both days inclusive.
For and on behalf of the board
G A M Ravazzotti B G Wood
Chief Executive Officer Chief Financial Officer
The Reviewed Group Results Announcement has been reviewed by Ernst & Young Incorporated (“EY”). EY’s unqualified
review opinion does not necessarily report on all of the information contained in this Reviewed Group Results Announcement.
Shareholders are therefore advised that in order to obtain a full understanding of the nature of auditors’ engagement,
they should obtain a copy of EY’s unqualified review opinion together with the accompanying financial information from the
Company Secretary at the Company’s registered office.
Johannesburg
12 February 2014
System-wide turnover analysis
For the six months ended 31 December 2013 (Rand millions unless otherwise stated)
Reviewed Reviewed Audited
six months to six months to year to
% 31 December 31 December 30 June
increase 2013 2012 2013
Group and franchised turnover (continuing operations)
- By Group owned stores and entities 1 372 1 048 2 047
- By franchise owned stores (unaudited) 923 956 1 776
Total 15 2 295 2 004 3 823
Condensed Group statements of comprehensive income
For the six months ended 31 December 2013 (Rand millions unless otherwise stated)
Reviewed Reviewed Audited
six months to six months to year to
% 31 December 31 December 30 June
increase 2013 2012 2013
Continuing operations
Turnover 1 372 1 048 2 047
Cost of sales (840) (635) (1 241)
Gross profit 29 532 413 806
Other operating income 128 132 241
Operating expenses (288) (233) (451)
Profit/(loss) on sale of property, plant and equipment 7 (1) 15
Trading profit 22 379 311 611
Financial revenue 5 18 26
Financial cost (11) (12) (17)
Income from associates 13 3 11
Profit before taxation from continuing operations 21 386 320 631
Taxation (114) (87) (168)
Profit for the period from continuing operations 17 272 233 463
Discontinued operations
(Loss)/profit after tax for the period from
discontinued operations (12) 2 1
Profit for the period 11 260 235 464
Other comprehensive income, net of taxation
Items that may be reclassified subsequently to
profit or loss:
Currency translation difference 2 2 13
Other comprehensive income from associates - 2 -
Total comprehensive income for the period 10 262 239 477
Profit attributable to:
- Equity shareholders 251 222 444
- Non-controlling interests 9 13 20
11 260 235 464
Total comprehensive income attributable to:
- Equity shareholders 253 226 457
- Non-controlling interests 9 13 20
10 262 239 477
Earnings per share (all figures in cents):
- Earnings per share 13 27,3 24,2 48,3
- Headline earnings per share 15 27,8 24,3 47,4
- Diluted earnings per share 11 26,6 24,1 48,2
- Diluted headline earnings per share 12 27,1 24,2 47,3
Earnings per share from continuing operations
(all figures in cents):
- Earnings per share 19 28,6 23,9 48,2
- Headline earnings per share 16 28,0 24,0 47,3
- Diluted earnings per share 17 27,9 23,8 48,1
- Diluted headline earnings per share 14 27,4 23,9 47,2
- Dividends per share 13 9,0 8,0 16,0
Condensed Group statements of financial position
As at 31 December 2013 (Rand millions unless otherwise stated)
Reviewed Reviewed Audited
six months to six months to year to
31 December 31 December 30 June
2013 2012 2013
ASSETS
Non-current assets 1 839 1 850 1 850
Property, plant and equipment 1 290 1 252 1 246
Investments - 4 4
Investments in associates 504 553 553
Long-term assets 20 26 24
Goodwill 6 6 6
Deferred taxation 19 9 17
Current assets 826 961 777
Inventories 449 346 335
Trade and other receivables 196 149 121
Cash and cash equivalents 177 453 303
Taxation receivable 4 13 18
Assets classified as held-for-sale - - 26
TOTAL ASSETS 2 665 2 811 2 653
EQUITY AND LIABILITIES
Share capital and reserves 2 049 2 167 2 303
Stated capital 818 818 818
Non-distributable reserves 97 86 93
Treasury shares (474) (477) (474)
Share option reserve 53 39 36
Retained earnings 1 485 1 624 1 774
Non-controlling interests 70 77 54
Discontinued operations reserves - - 2
Non-current liabilities 62 251 53
Interest-bearing loans 50 243 44
Deferred taxation 12 8 9
Current liabilities 554 393 297
Trade and other payables 264 250 252
Provisions 47 39 43
Interest-bearing loans 238 100 -
Taxation 5 4 2
TOTAL EQUITY AND LIABILITIES 2 665 2 811 2 653
Net asset value per share (cents) 223 236 251
Condensed Group cash flow statement
For the six months ended 31 December 2013 (Rand millions unless otherwise stated)
Reviewed Reviewed Audited
six months to six months to year to
31 December 31 December 30 June
2013 2012 2013
Cash flow from operating activities (344) 181 376
Cash flow from investing activities (26) (645) (694)
Cash flow from financing activities 244 - (296)
Net movement in cash and cash equivalents
for the period (126) (464) (614)
Cash and cash equivalents at the beginning
of the period 303 917 917
Cash and cash equivalents at the end
of the period 177 453 303
Group statement of changes in equity
For the six months ended 31 December 2012 (Rand millions unless otherwise stated)
Non- Non-
distri- Share Dis- con-
Stated butable Treasury option Retained continued trolling Total
capital reserves shares reserve earnings operations Total interest equity
Balance at 30 June 2012 818 82 (478) 9 1 500 - 1 931 77 2 008
Profit for the period 222 222 13 235
Other comprehensive income for the period 4 4 4
Total comprehensive income for the period - 4 - - 222 - 226 13 239
Dividends paid (66) (66) (2) (68)
Transactions with non-controlling interests - (11) (11)
Reinstatement of BEE share incentive reserve 30 (30) - -
Share incentive costs (including vesting settlement) 1 (2) (1) (1)
Balance at 31 December 2012 818 86 (477) 39 1 624 - 2 090 77 2 167
For the six months ended 31 December 2013 (Rand millions unless otherwise stated)
Balance at 30 June 2013 818 93 (474) 36 1 774 2 2 249 54 2 303
Profit for the period 251 251 9 260
Other comprehensive income for the period 2 2 2
Total comprehensive income for the period - 2 - - 251 - 253 9 262
Dividends paid (540) (540) (7) (547)
Discontinued operations 2 (2) - -
Transactions with non-controlling interests - 14 14
Share incentive costs (including vesting settlement) 17 17 17
Balance at 31 December 2013 818 97 (474) 53 1 485 - 1 979 70 2 049
Segmental report
For the six months ended 31 December 2013 (Rand millions unless otherwise stated)
Supply and Dis-
support Inter-group continued
Retail Franchising Properties services eliminations Group operations
Reviewed period
to December 2013
Turnover 1 163 - - 681 (472) 1 372 31
Gross margin 407 - - 68 475 11
Other income* 20 130 134 82 (174) 192 -
Overheads (338) (12) (29) (83) 174 (288) (23)
Trading profit 89 118 105 67 - 379 (12)
Reviewed period
to December 2012
Turnover 802 - - 543 (297) 1 048 32
Gross margin 293 - - 64 - 357 13
Other income* 16 119 117 65 (130) 187 -
Overheads (240) (10) (24) (89) 130 (233) (12)
Trading profit 69 109 93 40 - 311 1
* Other income includes franchise fees, rentals, royalties and rebates received, as well as profit or loss on disposal
of property, plant and equipment.
Notes
1. Commitments and contingencies
As previously disclosed, legal proceedings have been instituted against Majuba Aviation Proprietary Limited, a subsidiary
company of the Group providing aircraft charter services, for which there is insurance cover.
There were no material contingent assets or liabilities at 31 December 2013 in addition to the above.
Capital commitments at 31 December 2013: Rand millions
- Contracted 10
- Authorised, not contracted 108
Total 118
2. Changes in accounting policy
The accounting policies adopted and methods of computation are in terms of International Financial Reporting Standards (“IFRS”)
and consistent with those of the previous financial year except for the adoption of new and amended IFRS and IFRIC interpretations
which became effective during the current financial year. The application of these standards and interpretations did not have
a significant impact on the Group’s reported results and cash flows for the six months ended 31 December 2013 and the financial
position at 31 December 2013.
Certain items within Other income (R56 million) have been reclassified to Cost of sales for the half year ending December 2012
to ensure the consistent treatment of these items with the year end results. This reclassification will have no impact on the
profit for the year and Statement of Financial Position.
3. Fair values of financial instruments
The Group does not fair value its financial assets or liabilities in accordance with quoted prices in active markets or market
observables, as there is no material difference between the fair value and carrying value due to the short-term nature of these
items, and/or existing terms are equivalent to market observables. There were no transfers into or out of Level 3 during the period.
4. Sale of non-controlling interests in Cedar Point Trading 326 Proprietary Limited
As previously reported, the Group sold a 20% stake in Cedar Point Trading 326 Proprietary Limited to two new business partners during
the period. This stake was sold at a cost of R14 million, and reduces the Group’s interest in this entity to 80%.
5. Discontinued operations
The Group disposed of the following non-core businesses (date of disposal disclosed in brackets):
- Cladding Finance Proprietary Limited - the entity used to extend and manage credit to the contractors market (30 September 2013);
- The eight store CTM retail operation in Australia (31 October 2013); and
- Allmuss Properties Zambia Limited - a property holding company (31 December 2013).
The results of these businesses have thus been recorded as discontinued operations in these results. Cladding Finance Proprietary Limited
and Allmuss Properties Zambia Limited’s contribution to Group earnings is immaterial, although R4 million profit was realised on the sale
of the latter. The sale of the Australian retail operation was concluded via a management buyout, and was preceded by fixed asset impairment
and other rationalisation costs totalling R10 million.
6. Staff Share Scheme
During the period, the Group implemented a share incentive scheme for all employees of the Group and its franchisees in South Africa that
had been in the employ of the Group and/or franchise network for a period of three uninterrupted years as at 31 August 2013. This has
resulted in the issue of 15 million of the Group’s shares held by the Italtile Empowerment Trust to qualifying staff members. The allotment
is funded by the Group and the shares are restricted instruments which will vest with employees following a further three years of employment.
Until vesting, the shares will continue to be accounted for as treasury shares, although this does have an impact on the diluted weighted
average number of shares.
The scheme is classified as an equity settled scheme in terms of IFRS 2, Share-based Payment, and has resulted in a charge of R14 million
to the Group’s income (R11 million thereof being a once-off charge for franchisee staff). Given the unique nature of the scheme, a comprehensive
review of the accounting treatment adopted will be undertaken, although it is likely that the current treatment is appropriate.
Reviewed Reviewed Audited
six months to six months to year to
31 December 31 December 30 June
7. Earnings per share 2013 2012 2013
Reconciliation of shares in issue (all figures in millions):
- Total number of shares issued 1 033 1 033 1 033
- Shares held by Share Incentive Trust 25 26 25
- BEE treasury shares 88 88 88
Shares in issue to external parties 920 919 920
Share numbers used for earnings per share calculations
(all figures in millions):
- Weighted average number of shares 920 919 919
- Diluted weighted average number of shares 941 922 921
Reconciliation of headline earnings (Rand millions):
- Profit attributable to equity shareholders 251 222 444
- (Profit)/loss on sale of property, plant and equipment (5) 1 (13)
- Impairment of Australian property, plant and equipment 10 - 5
Headline earnings 256 223 436
Reconciliation of headline earnings for continuing operations
(Rand millions):
- Profit attributable to equity shareholders 263 220 443
- (Profit)/loss on sale of property, plant and equipment (5) 1 (13)
- Impairment of Australian property - - 5
Headline earnings 258 221 435
Store network
At 31 December 2013
2013 2012
Region Franchise Other Total Franchise Other Total
South Africa
- Italtile - 8 8 - 8 8
- CTM 31 36* 67 40 25 65
- TopT 18 6 24 9 8 17
Rest of Africa 11 5 16 12 5 17
Australia - - - - 8 8
60 55 115 61 54 115
*Includes CTM webstore.
Registered office: The Italtile Building, cnr William Nicol Drive and Peter Place, Bryanston (PO Box 1689, Randburg 2125)
Transfer secretaries: Computershare Investor Services Proprietary Limited, 70 Marshall Street, Johannesburg 2001.
(PO Box 61051, Marshalltown 2107)
Executive directors: G A M Ravazzotti (Chief Executive Officer), B G Wood (Chief Financial Officer)
Non-executive directors: S G Pretorius (Non-executive chairman), S M Du Toit, S I Gama, P Langenhoven#, P D Swatton*, A Zannoni**
(*British **Italian #Australian)
Company secretary: E J Willis
Sponsor: Merchantec Capital
Auditors: EY
Date: 13/02/2014 07:30:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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