Wrap Text
Unaudited interim condensed consolidated results for the six months ended 31 December 2013
REX TRUEFORM CLOTHING COMPANY LIMITED
(INCORPORATED IN THE REPUBLIC OF SOUTH AFRICA)
(REGISTRATION NO.: 1937/009839/06)
("THE COMPANY" OR "THE GROUP" OR "REX TRUEFORM")
JSE SHARE CODES: RTO - RTN - RTOP
ISIN: ZAE000006144 - ZAE000009700 - ZAE000006151
UNAUDITED INTERIM CONDENSED CONSOLIDATED GROUP RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2013
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at As at As at
31 December 31 December 30 June
2013 2012 2013
Unaudited Unaudited Audited
R'000 R'000 R'000
ASSETS
Non-current assets 135 549 99 591 114 458
Property, plant and equipment 108 819 80 516 89 631
Investment property 5 496 5 607 5 551
Intangible assets 9 263 5 835 8 010
Other investments 524 524 524
Deferred tax asset 11 447 7 109 10 742
Current assets 161 134 213 898 203 416
Inventories 77 039 71 802 88 231
Amounts receivable from holding company 48 29 -
Trade and other receivables 13 914 3 160 11 187
Forward exchange contracts 2 534 - 3 660
Income tax receivable 1 374 1 983 1 656
Cash and cash equivalents 66 225 136 924 98 682
Total assets 296 683 313 489 317 874
EQUITY AND LIABILITIES
Capital and reserves 244 790 262 450 259 753
Share capital 1 777 1 777 1 777
Share premium 25 836 25 836 25 836
Treasury shares (1 190) (1 195) (1 190)
Other reserves 988 963 980
Retained earnings 217 379 235 069 232 350
Non-current liabilities 16 639 14 077 15 508
Post-retirement liability 2 126 2 380 2 161
Accrued operating lease liability 12 608 10 880 11 168
Deferred tax liability 1 905 817 2 179
Current liabilities 35 254 36 962 42 613
Provisions - - 3 077
Trade and other payables 35 147 35 714 39 473
Forward exchange contracts - 1 200 -
Income tax payable 107 48 63
Total equity and liabilities 296 683 313 489 317 874
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Six months Six months Year
ended ended ended
31 December 31 December 30 June
2013 2012 2013
% Unaudited Unaudited Audited
change R'000 R'000 R'000
Revenue 3.3 265 360 256 922 483 957
Turnover 3.6 261 138 251 973 474 438
Cost of sales (138 432) (130 774) (231 176)
Gross profit 1.2 122 706 121 199 243 262
Employment costs (6.5) (48 406) (51 777) (104 358)
Occupancy costs 9.7 (46 239) (42 154) (84 102)
Depreciation and amortisation 5.5 (9 239) (8 757) (17 585)
Other operating costs (18.8) (26 273) (32 351) (59 434)
Rental income 112.1 1 419 669 1 599
Royalties 25.0 695 556 1 009
Management fee income 41.9 254 179 471
Operating loss (59.1) (5 083) (12 436) (19 138)
Dividends received 16 12 13
Interest income 1 838 3 533 6 427
Interest expense (111) (135) (189)
Loss before tax (63.0) (3 340) (9 026) (12 887)
Income tax 927 2 238 3 389
Loss for the period (64.5) (2 413) (6 788) (9 498)
Other comprehensive loss
Net change in fair value of
available-for-sale financial assets - - -
Total comprehensive loss for the period (2 413) (6 788) (9 498)
Loss attributable to:
Ordinary and 'N' ordinary shareholders (2 421) (6 796) (9 515)
Preference shareholders 8 8 17
Loss for the period (2 413) (6 788) (9 498)
Total comprehensive loss attributable to:
Ordinary and 'N' ordinary shareholders (2 421) (6 796) (9 515)
Preference shareholders 8 8 17
Total comprehensive loss for the period (2 413) (6 788) (9 498)
Reconciliation of headline loss
Loss attributable to equity holders (2 421) (6 796) (9 515)
Adjusted for:
(Profit)/loss from disposal of property,
plant and equipment and intangible assets (860) (38) 79
Impairment loss on equipment and shopfitting - (102) (310)
Headline loss (3 281) (6 936) (9 746)
Basic loss per ordinary share (cents) (64.4) (11.8) (33.1) (46.3)
Headline loss per ordinary share
(cents) (52.8) (15.9) (33.8) (47.4)
Diluted basic loss per ordinary
share (cents) (64.4) (11.8) (33.0) (46.2)
Diluted headline loss per ordinary
share (cents) (52.8) (15.9) (33.7) (47.3)
Weighted average number of equity
shares used in:
- earnings per share (000's) 20 574 20 536 20 555
- diluted earnings per share (000's) 20 601 20 578 20 594
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
As at As at As at
31 December 31 December 30 June
2013 2012 2013
Unaudited Unaudited Audited
R'000 R'000 R'000
Share capital 1 777 1 777 1 777
Share premium 25 836 25 836 25 836
Treasury shares
Opening balance (1 190) (1 453) (1 453)
Proceeds from delivery of employee share options - 258 263
Closing balance (1 190) (1 195) (1 190)
Other reserves
Opening balance 980 963 963
Share-based payment expense 8 - 17
Closing balance 988 963 980
Retained earnings
Opening balance 232 350 254 415 254 415
Loss for the period (2 413) (6 788) (9 498)
Preference dividends declared/paid (8) (8) (17)
Ordinary dividends paid (12 550) (12 550) (12 550)
Closing balance 217 379 235 069 232 350
Total capital and reserves 244 790 262 450 259 753
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW
Six months Six months Year
ended ended ended
31 December 31 December 30 June
2013 2012 2013
Unaudited Unaudited Audited
R'000 R'000 R'000
Operating loss before working capital changes (1 042) (2 802) (1 654)
Working capital changes 7 743 3 010 (18 206)
Interest income 1 838 3 533 6 427
Interest expense (111) (135) (189)
Dividends paid (12 550) (12 550) (12 567)
Dividends received 16 12 13
Normal tax refunded/(paid) 274 (6) (784)
Net cash outflow from operations (3 832) (8 938) (26 960)
Additions to property, plant and equipment (28 119) (15 785) (31 866)
Additions to intangible assets (1 506) - (4 134)
Proceeds from disposal of property, plant
and equipment and intangible assets 1 000 205 195
Net cash outflow from investing activities (28 625) (15 580) (35 805)
Proceeds from delivery of shares by share trust - 258 263
Net cash inflow from financing activities - 258 263
Net decrease in cash and cash equivalents (32 457) (24 260) (62 502)
Cash and cash equivalents at the beginning
of the period 98 682 161 184 161 184
Cash and cash equivalents at the end of
the period 66 225 136 924 98 682
GROUP SEGMENTAL REPORTING
Six months Six months Year
ended ended ended
31 December 31 December 30 June
2013 2012 2013
Unaudited Unaudited Audited
R'000 R'000 R'000
Revenue
Total external retail revenue 262 087 252 708 475 918
Retail segment revenue 263 922 254 173 478 705
Intersegment revenue earned (1 835) (1 465) (2 787)
Total external property revenue 1 419 669 1 599
Property segment revenue 3 540 2 608 5 527
Intersegment revenue earned (2 121) (1 939) (3 928)
Dividends received 16 12 13
Interest income 1 838 3 533 6 427
Total group revenue 265 360 256 922 483 957
Segment operating loss
Retail (3 772) (10 149) (14 754)
Property (169) (96) (243)
Group services* (1 142) (2 191) (4 141)
Total group operating loss (5 083) (12 436) (19 138)
Depreciation and amortisation
Retail 9 001 8 647 17 308
Property 238 110 277
Total depreciation and amortisation 9 239 8 757 17 585
Segment assets
Retail 212 506 215 079 217 474
Property 49 382 23 390 32 672
Group services* 34 795 75 020 67 728
Total segment assets 296 683 313 489 317 874
Segment liabilities
Retail 45 373 45 656 51 333
Property 3 634 2 489 2 606
Group services* 2 886 2 894 4 182
Total segment liabilities 51 893 51 039 58 121
Capital expenditure
Retail 12 783 7 347 19 030
Property 16 842 8 438 16 970
Total capital expenditure 29 625 15 785 36 000
* Group services include corporate costs.
OTHER INFORMATION
Six months Six months Year
ended ended ended
31 December 31 December 30 June
2013 2012 2013
Unaudited Unaudited Audited
R'000 R'000 R'000
Capital commitments
Authorised but not yet contracted for (R'000) 21 808 29 769 32 361
Authorised and contracted for
(less amounts already incurred) (R'000) 8 613 5 154 3 048
Gross profit margin % 47.0 48.1 51.3
Operating loss margin % (1.9) (4.9) (4.0)
Retail segment operating loss margin % (1.4) (4.0) (3.1)
NOTES
1 BASIS OF PRESENTATION OF FINANCIAL STATEMENTS
These condensed consolidated interim financial statements have been prepared in
accordance with the framework concepts and the measurement and recognition
requirements of International Financial Reporting Standards (IFRS), the
interpretations adopted by the International Accounting Standards Board, the
South African Institute of Chartered Accountants' Financial Reporting Guides as
issued by the Accounting Practices Committee and Financial Reporting Pronouncements
as issued by the Financial Reporting Standards Council and include disclosure as
required by IAS 34: Interim Financial Reporting, the Companies Act of South Africa
2008 and the JSE Listings Requirements.
The financial statements have been prepared using accounting policies that comply
with IFRS and which are consistent with those applied in the preparation of the
financial statements for the year ended 30 June 2013.
2 UNAUDITED RESULTS
These results have not been reviewed or reported on by the group's auditors. The
condensed consolidated interim financial statements have been prepared under the
supervision of Damian Johnson CA(SA) and were approved by the board of directors
on 4 March 2014.
3 PREFERENCE DIVIDEND
A dividend on the 6% cumulative preference shares for the six months ended
31 December 2013 in the amount of R8 400 was declared by the board of directors
on 26 November 2013 and paid on 13 January 2014.
HIGHLIGHTS
- Revenue increased by 3.3% to R265.3 million (31 December 2012: R256.9 million)
- Operating loss reduced by 59.1% to (R5.1 million)(31 December 2012: (R12.4 million))
- Gross profit margin % decreased to 47.0% (31 December 2012: 48.1%)
- Headline loss per share reduced by 52.8% to (15.9 cents)(31 December 2012: (33.8 cents))
- Earnings loss per share reduced by 64.4% to (11.8 cents)(31 December 2012: (33.1 cents))
- Net asset value per share decreased by 6.7% to 1 189 cents (31 December 2012: 1 274 cents)
- Ordinary dividend per share paid amounted to 61 cents per share (31 December 2012: 61 cents)
COMMENTARY
GROUP RESULTS
The group's performance improved for the six months ending 31 December 2013 when
compared to the corresponding period mainly due to the improved performance of the
retail segment. Turnover increased by 3.6% during the period, whereas the gross profit
increased marginally by 1.2%. Initiatives introduced contributed to the reduction in
operating expenses, which decreased by 3.6%.
The reduction in costs and the slight increase in the gross profit were the main
contributors to the improvement in the results for the six months ended
31 December 2013, whereby the loss reduced from R6.8 million (31 December 2012) to
R2.4 million. Accordingly, headline earnings for the six months ended 31 December 2013
amounted to a loss of 15.9 cents per share compared to a loss of 33.8 cents per share
in the corresponding period.
RETAIL
When compared to the corresponding comparable period the Queenspark retail segment
turnover increased by 3.6% from R252 million (31 December 2012) to R261 million,
whereas the gross margin decreased from 48.1% to 47%. The impact thereof resulted in
the gross profit increasing by R1.5 million. The decrease in the gross profit margin
percentage was partly influenced by the higher product costs resulting from the weaker
Rand. The retail segment reduced its operating costs by 3.4% partly as a result of
the reorganisation of this segment.
The above resulted in the retail operating loss of R3.8 million (2012: R12.4 million).
PROPERTY
The development of the Rex Trueform Office Park is nearing completion. Capital
expenditure of R36.5 million has been spent on the project to date, in line with
the budget.
PROSPECTS
RETAIL
The difficult retail market trading conditions will continue to make trading challenging
during the second half of the year. The business will continue to open new stores,
where feasible, in order to increase its trading space. The implementation of the new
ERP system should start to provide benefits during the 2015 financial year.
PROPERTY
It is anticipated that the major construction works in respect of the Rex Trueform
Office Park will be complete by the end of the financial year, whereafter tenancy levels
are expected to increase substantially.
Any reference to the future financial performance included in the above commentary has
not been reviewed or reported on by the company's external auditors and does not
constitute an earnings forecast.
Signed on behalf of the board
ML Krawitz CEA Radowsky
(Chairman) (Chief Executive Officer)
Cape Town
6 March 2014
Rex Trueform Clothing Company Limited
(Incorporated in the Republic of South Africa) (Reg No.: 1937/009839/06) ("the group")
JSE share codes: RTO - RTN - RTOP
ISIN: ZAE000006144 - ZAE000009700 - ZAE000006151
Registered office: Rex Buildings, 263 Victoria Road, Salt River, Cape Town, 7925
Directors: ML Krawitz+ (Chairman), CEA Radowsky (Chief Executive Officer),
DS Johnson (FD), PE Shub, PM Naylor*, RV Orlin* and RW Rees (UK)*
+ Non-executive *Independent Non-executive
Secretary: AT Snitcher
Transfer secretaries: Computershare Investor Services (Pty) Ltd, 70 Marshall Street,
Johannesburg, 2001
Sponsor: Java Capital
There were no changes to the board of directors during the year.
Websites: www.queenspark.com - www.rextrueform.com - www.rextrueformofficepark.com
Date: 06/03/2014 03:13:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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