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TRUWORTHS INTERNATIONAL LIMITED - Unaudited Group interim report for the 26 weeks ended 28 December 2014

Release Date: 19/02/2015 13:58
Code(s): TRU     PDF:  
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Unaudited Group interim report for the 26 weeks ended 28 December 2014

TRUWORTHS INTERNATIONAL LTD
REGISTRATION NUMBER: 1944/017491/06
JSE CODE: TRU
NSX CODE: TRW
ISIN: ZAE000028296


UNAUDITED GROUP INTERIM REPORT
FOR THE 26 WEEKS ENDED 28 DECEMBER 2014


HIGHLIGHTS
Revenue up 6%
Sale of merchandise up 5%
Gross margin at 55.3%
Operating margin at 31.8%
Diluted headline and basic earnings per share up 1%
Cash from operations of R1.7 billion
Interim dividend per share up 9%
 

GROUP PROFILE
Truworths International Ltd is an investment holding and management company listed 
on the JSE and the Namibian Stock Exchange (NSX). Its principal trading entities, 
Truworths Ltd and Young Designers Emporium (Pty) Ltd, are engaged either directly or 
through agencies, franchises or subsidiaries, in the retailing of fashion apparel 
and related merchandise. Truworths International Ltd and its subsidiaries 
(the Group) operate primarily in South Africa, and elsewhere in sub-Saharan Africa.

TRADING AND FINANCIAL PERFORMANCE
Group retail sales increased by 5.2% to R6.2 billion for the 26-week period ended 
28 December 2014 (the period) compared to the prior corresponding 26-week period 
ended 29 December 2013 (the prior period). Comparable store retail sales decreased 
by 0.8% (2013: increased by 1.1%) while product inflation averaged 6% (2013: 7%). 
Group sale of merchandise, which comprises Group retail sales and franchise sales 
less accounting adjustments, grew 5% to R6.1 billion (2013: R5.8 billion).

Group revenue, comprising group sale of merchandise, interest received and other 
income (principally commission, display fees and financial services income), 
increased 6% to R6.7 billion for the period compared to the prior period as a 
result of interest received and other income increasing 19% and 13% respectively.

Trading space increased by 6.9% over the prior period-end following the opening 
of a net 33 stores across the Group. At the end of the period the Group had 
662 stores (2013: 629), including 40 stores in the rest of Africa (2013: 40).

Divisional sales                                   28 Dec        29 Dec      % change
                                                     2014          2013      on prior
                                                       Rm            Rm        period
Truworths ladieswear                                2 057         1 998             3
Truworths menswear                                  1 304         1 213             8
Identity                                            1 047           945            11
Daniel Hechter                                        689           697            (1)
LTD                                                   358           305            17
Elements and MAC                                      326           301             8
Inwear                                                249           278           (10)
Other*                                                202           190             6
Retail sales                                        6 232         5 927             5
Franchise sales                                         5             4            25
Accounting adjustments                               (187)         (165)           13
Sale of merchandise                                 6 050         5 766             5
YDE agency sales                                      165           165             -

* includes Cellular and Truworths Jewellery divisions

The gross margin decreased to 55.3% (2013: 56.3%) as a result of increased markdowns, 
however it remains within the group's targeted range of 54% to 57%. Trading expenses 
increased 10% to R2.1 billion (2013: R1.9 billion) and constituted 34.2% of sale of 
merchandise (2013: 32.6%). Interest received increased 19% to R508 million 
(2013: R427 million). Operating profit decreased 1% to R1.9 billion and the operating 
margin decreased to 31.8% (2013: 33.8%).

The interim dividend has been increased 9% to 236 cents per share (2013: 216 cents 
per share) resulting from a reduction in the dividend cover to 1.4 times 
(2013: 1.6 times). Headline earnings per share (HEPS) were 334.5 cents, a 
decrease of 0.4% over the prior period's 335.8 cents. Diluted HEPS of 333.4 cents 
(2013: 330.7 cents) were 0.8% higher than the prior period.

The net asset value per share increased by 5% to 1 762 cents (2013: 1 671 cents). 
The annualised returns on equity and assets were 40% (2013: 42%) and 40% (2013: 43%) 
respectively. Asset turnover was at 1.3 times (2013: 1.3 times).

CREDIT MANAGEMENT
Gross trade receivables grew by 8.5% to R5.4 billion. The growth in the trade 
receivables book is attributable to Group credit sales growing by 5.4% over the prior 
period (3% and 18% higher in Truworths and Identity respectively) and a continuing 
shift from 6 months interest-free to 12 months interest-bearing payment plans. Credit 
sales contributed 71% (2013: 71%) to Group retail sales for the period. At period-end 
86% (2013: 85%) of the Group's active account holders were able to purchase.

The Group's active account base has grown by 1% to over 2.6 million accounts, in part 
as a result of the new account acceptance rate increasing from 26% in the prior 
period to 31%.

The doubtful debt allowance as a percentage of gross trade receivables has increased 
to 13.0% (2013: 12.0%) and net bad debt as a percentage of gross trade receivables 
increased to 13.3% (2013: 13.2%). The increase in the doubtful debt allowance 
contributed to trade receivable costs increasing by 9% to R578 million 
(2013: R531 million).

CAPITAL MANAGEMENT 
During the period the Group generated R1.7 billion in cash from operations and 
this funded, inter alia, dividend payments (R708 million) and capital expenditure 
(R189 million). Cash and cash equivalents decreased 5% to R2.4 billion at the 
period-end.

Capital expenditure of R259 million has been committed for the remainder of the 
2015 financial period.

ACQUISITIONS
Earthchild
During October 2014 the Group advised that it had signed a letter of intent with the 
shareholders of Earthchild Clothing (Waterfront) (Pty) Ltd (Earthchild) to acquire 
100% of their shares in Earthchild, subject to certain conditions precedent. A number 
of these conditions have been met, including the satisfactory conclusion of a due 
diligence investigation and the execution of all transaction agreements. The 
application for Competition Commission approval has been submitted. The effective 
date of the acquisition is expected to be in the first quarter of 2015, subject to 
Competition Commission approval being granted.

Naartjie
During November 2014 the Group advised that it had entered into an agreement with 
ZA One (Pty) Ltd (Naartjie) and its USA holding company to acquire the SA-based 
Naartjie business as a going concern, together with certain trademarks, subject to 
certain conditions precedent. The agreement has been formally sanctioned by the USA 
courts, given that the holding company is in the course of bankruptcy proceedings. 
The application for Competition Commission approval has been submitted. The effective 
date of the acquisition is expected to be in the first quarter of 2015, subject to 
Competition Commission approval being granted.

OUTLOOK 
The trading environment is expected to remain difficult for the remainder of the 
2015 financial period and the Group will continue to utilise its extensive experience 
to manage the risk of fashion through its proven merchandise design and buying processes, 
and manage credit risk through the ongoing application of strategies to ensure the 
health of the debtors' book. The Group expects to begin to benefit from the intended 
acquisitions and the ongoing expansion into the rest of Africa. 

Retail sales for the first seven weeks of the second half of the 2015 financial period 
increased by 10% over those for the comparable period in 2014.

The board remains committed to investing appropriately for longer-term growth, with 
trading space planned to increase approximately 6% for the 2015 financial period, and 
by approximately 5% in the 2016 financial period. 


H Saven         MS Mark
Chairman        Chief Executive Officer

19 February 2015


DIVIDEND
The directors of the company have resolved to declare a gross cash dividend from 
retained earnings in respect of the 26-week period ended 28 December 2014 in the 
amount of 236 cents (2013: 216 cents) per share to shareholders reflected in the 
company's register on the record date, being Friday, 13 March 2015.

The last day to trade in the company's shares cum dividend is Friday, 6 March 2015. 
Trading in the company's share ex dividend will commence on Monday, 9 March 2015. 
Consequently no dematerialisation or rematerialisation of the company's shares may 
take place over the period from Monday, 9 March 2015 to Friday, 13 March 2015, both 
days inclusive. The dividend is scheduled to be payable in South African Rand on 
Monday, 16 March 2015.

Dividends will be paid net of dividends tax of 15%, to be withheld and paid to the 
South African Revenue Service. Such tax must be withheld unless beneficial owners of 
the dividend have provided the necessary documentary proof to the relevant regulated 
intermediary (being a broker, CSD participant, nominee company or the company's 
transfer secretaries, Computershare Investor Services (Pty) Ltd, PO Box 61051, 
Marshalltown, 2107 South Africa) that they are exempt therefrom, or entitled to a 
reduced rate, as a result of a double taxation agreement between South Africa and 
the country of tax domicile of such owner. 

The withholding tax, if applicable at the rate of 15%, will result in a net cash 
dividend per share of 200.60 cents. No secondary tax on companies (STC) credits were 
utilised when determining the net dividend. The company has 427 834 464 ordinary 
shares in issue on 19 February 2015.

In accordance with the company's memorandum of incorporation: 
-  the dividend will only be paid by electronic funds transfer, and no cheque 
   payments will be made. Accordingly, shareholders who have not yet provided their 
   bank account details should do so to the company's transfer secretaries; and
-  the directors have determined that gross dividends amounting to less than 
   1 000 cents, due to any one shareholder of the company's shares held in 
   certificated form, will not be paid, unless otherwise requested in writing, but 
   the net amount thereof will be aggregated with other such net amounts and donated 
   to a charity to be nominated by the directors.

By order of the board


C Durham
Company Secretary

Cape Town
19 February 2015


CONDENSED GROUP STATEMENTS OF FINANCIAL POSITION
                                                at 28 Dec     at 29 Dec     at 29 Jun
                                                     2014          2013          2014
                                                Unaudited     Unaudited       Audited
                                       Note            Rm            Rm            Rm
ASSETS
Non-current assets                                  1 427         1 332         1 360
Property, plant and equipment                       1 001           920           934
Goodwill                                               90            90            90
Intangible assets                                     116           105           106
Derivative financial assets                             -             7             6
Available-for-sale assets                              11             6             9
Loans and receivables                                  93           110            99
Deferred tax                                          116            94           116

Current assets                                      8 075         7 787         6 716
Inventories                                           954           844           863
Trade and other receivables                         4 657         4 347         4 182
Derivative financial assets                            26            16             5
Prepayments                                            15            15            78
Cash and cash equivalents                           2 423         2 565         1 588
Total assets                                        9 502         9 119         8 076

EQUITY AND LIABILITIES
Total equity                                        7 382         6 998         6 642
Share capital and premium                             453           316           368
Treasury shares                           5          (699)         (179)         (652)
Retained earnings                                   7 451         6 720         6 774
Non-distributable reserves                            177           141           152

Non-current liabilities                                88            99            88
Post-retirement medical benefit obligation             54            51            51
Leave pay obligation                                    3             3             3
Cash-settled compensation obligation                    -             9             4
Straight-line operating lease obligation               31            36            30

Current liabilities                                 2 032         2 022         1 346
Trade and other payables                            1 457         1 435         1 134
Provisions                                             38            42            47
Derivative financial liability                          -             -             8
Tax payable                                           537           545           157
Total liabilities                                   2 120         2 121         1 434
Total equity and liabilities                        9 502         9 119         8 076

Number of shares in issue 
  (net of treasury shares)        (millions)        419.0         418.9         413.8
Net asset value per share            (cents)      1 761.8       1 670.6       1 605.1

Key ratios
Return on equity*                        (%)           40            42            37
Return on capital*                       (%)           55            59            52
Return on assets*                        (%)           40            43            42
Inventory turn*                      (times)          5.7           6.0           5.3 
Asset turnover*                      (times)          1.3           1.3           1.3 

* Ratios for December have been annualised


CONDENSED GROUP STATEMENTS OF COMPREHENSIVE INCOME
                                   26 weeks      26 weeks                    52 weeks
                                  to 28 Dec     to 29 Dec                   to 29 Jun
                                       2014          2013                        2014
                                  Unaudited     Unaudited             %       Audited
                         Note            Rm            Rm        change            Rm
Revenue                     4         6 697         6 343             6        11 642

Sale of merchandise                   6 050         5 766             5        10 458
Cost of sales                        (2 706)       (2 517)                     (4 617)
Gross profit                          3 344         3 249             3         5 841
Other income                            136           120            13           235
Trading expenses                     (2 068)       (1 878)           10        (3 668)
Depreciation and amortisation           (99)          (84)                       (184)
Employment costs                       (566)         (510)                     (1 024)
Occupancy costs                        (530)         (477)                       (954)
Trade receivable costs                 (578)         (531)                       (916)
Other operating costs                  (295)         (276)                       (590)

Trading profit                        1 412         1 491            (5)        2 408
Interest received                       508           427            19           917
Dividends received                        3            30                          32
Profit before tax                     1 923         1 948            (1)        3 357
Tax expense                            (538)         (545)                       (951)
Profit for the period, fully 
  attributable to owners 
  of the parent                       1 385         1 403            (1)        2 406
                                             
Other comprehensive income/(loss) 
  to be reclassified to profit or 
  loss in subsequent periods              3            (2)                         (3)
Movement in effective cash flow hedge     1            (2)                         (2)
Fair value adjustment on personal 
  lines insurance business arrangement    -             -                           1
Deferred tax on movement in effective 
  cash flow hedge                         -             1                          (2)
Movement in foreign currency 
  translation reserve                     2            (1)                          -

Other comprehensive income not 
  to be reclassified to profit or 
  loss in subsequent periods              -             -                           3
Remeasurement gains on defined 
  benefit plans                           -             -                           3
Total comprehensive income for the 
  period, fully attributable to 
  owners of the parent                1 388         1 401            (1)        2 406

Basic earnings 
  per share            (cents)        334.5         335.8          (0.4)        575.9
Headline earnings 
  per share            (cents)        334.5         335.8          (0.4)        576.8
Fully diluted basic 
  earnings per share   (cents)        333.4         330.7           0.8         568.4
Fully diluted 
  headline earnings 
  per share            (cents)        333.4         330.7           0.8         569.3
Weighted average 
  number of shares  (millions)        414.1         417.8                       417.8

Key ratios
Gross margin               (%)         55.3          56.3                        55.9
Trading expenses to 
  sale of merchandise      (%)         34.2          32.6                        35.1
Trading margin             (%)         23.3          25.9                        23.0
Operating margin           (%)         31.8          33.8                        32.1


CONDENSED GROUP STATEMENTS OF CHANGES IN EQUITY
                        Share                                      Non-
                      capital                                distribut-
                          and      Treasury      Retained          able         Total
                      premium        shares      earnings       reserve        equity
                           Rm            Rm            Rm            Rm            Rm
2014
Balance at the 
  beginning of 
  the period              368          (652)        6 774           152         6 642
Profit for the period       -             -         1 385             -         1 385
Other comprehensive 
  income for 
  the period                -             -             -             3             3
Dividends                   -             -          (708)            -          (708)
Premium on shares issued   38             -             -             -            38
Shares issued in 
  terms of the 
  restricted share 
  scheme                   47           (47)            -             -             -
Share-based payments        -             -             -            22            22
Balance at 
  December 2014           453          (699)        7 451           177         7 382

2013
Balance at the 
  beginning of 
  the period              293        (2 028)        7 830           129         6 224
Profit for the period       -             -         1 403             -         1 403
Other comprehensive 
  loss for 
  the period                -             -             -            (2)           (2)
Dividends                   -             -          (662)            -          (662)
Shares repurchased          -            (2)            -             -            (2)
Premium on shares issued   23             -             -             -            23
Cancellation of 
  treasury shares           -         1 851        (1 851)            -             -
Share-based payments        -             -             -            14            14
Balance at 
  December 2013           316          (179)        6 720           141         6 998
                                             
Cents per share:                                                   2014          2013
Dividends declared in respect of the period                         236           216


CONDENSED GROUP STATEMENTS OF CASH FLOWS
                                                 26 weeks      26 weeks      52 weeks
                                                to 28 Dec     to 29 Dec     to 29 Jun
                                                     2014          2013          2014
                                                Unaudited     Unaudited       Audited
                                                       Rm            Rm            Rm
CASH FLOWS FROM OPERATING ACTIVITIES
Cash flow from trading and cash EBITDA*             1 521         1 633         2 682
Working capital movements                            (186)          112          (105)
Cash generated from operations                      1 335         1 745         2 577
Interest received                                     508           427           917
Dividends received                                      3            30            32
Tax paid                                             (158)         (170)         (984)
Cash inflow from operations                         1 688         2 032         2 542
Dividends paid                                       (708)         (661)       (1 566)
Net cash from operating activities                    980         1 371           976

CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of property, plant and 
  equipment to expand operations                     (138)         (122)         (221)
Acquisition of plant and equipment 
  to maintain operations                              (35)          (31)          (54)
Acquisition of computer software                      (16)           (6)          (14)
Proceeds on disposal of plant and equipment             -             -             2
Loans repaid                                            6             8            21
Acquisition of mutual fund units                        -             -            (1)
Net cash used in investing activities                (183)         (151)         (267)

CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds on shares issued                              38            23            44
Shares repurchased by subsidiaries                      -            (2)         (490)
Net cash used in financing activities                  38            21          (446)

Net increase in cash and cash equivalents             835         1 241           263
Cash and cash equivalents at the 
  beginning of the period                           1 588         1 325         1 325
Net foreign exchange difference                         -            (1)            -
CASH AND CASH EQUIVALENTS AT 
  THE END OF THE PERIOD                             2 423         2 566         1 588

Key ratios
Cash flow per share                  (cents)        407.6         486.4         608.4
Cash equivalent earnings per share   (cents)        360.8         367.9         634.8
Cash realisation rate                    (%)          113           132            96

* Earnings before interest received, tax, depreciation and amortisation


SELECTED EXPLANATORY NOTES
1  STATEMENT OF COMPLIANCE
   The condensed Group financial statements for the 26-week period ended 
   28 December 2014 (interim report) have been prepared in compliance with 
   International Financial Reporting Standards (IFRS), the Financial Reporting Guides 
   as issued by the Accounting Practices Board, IAS 34: Interim Financial Reporting, 
   the Companies Act (71 of 2008, as amended) of South Africa and the JSE 
   Listings Requirements.

   The interim report does not include all the information and disclosures required 
   in the annual financial statements, and should be read in conjunction with the 
   Group's annual financial statements as at 29 June 2014.

   The information contained in the interim report has neither been audited nor 
   reviewed by the Group's external auditors. The interim report has been prepared 
   under the supervision of DB Pfaff CA(SA), the Chief Financial Officer of the Group.

2  BASIS OF PREPARATION
   The interim report has been prepared in accordance with the going concern and 
   historical cost bases, unless otherwise indicated. The accounting policies are 
   applied consistently throughout the Group. The presentation and functional 
   currency used in the preparation of the interim report is the South African 
   Rand (ZAR) (Rand) and all amounts are rounded to the nearest million, unless 
   otherwise indicated.

3  ACCOUNTING POLICIES AND METHODS OF COMPUTATION
   The accounting policies and methods of computation applied in the preparation of the 
   interim report are consistent with those applied in the preparation of the Group's 
   annual financial statements for the period ended 29 June 2014.

   IFRS, amendments and International Financial Reporting Interpretations Committee 
   (IFRIC) interpretations not applicable to Group activities
   Various new and amended IFRS and IFRIC interpretations have been issued and 
   are effective, however they are not applicable to the Group's activities.

                                   26 weeks      26 weeks                    52 weeks
                                  to 28 Dec     to 29 Dec                   to 29 Jun
                                       2014          2013                        2014
                                  Unaudited     Unaudited             %       Audited
                                         Rm            Rm        change            Rm
4  REVENUE
   Sale of merchandise                6 050         5 766             5        10 458
   Retail sales                       6 232         5 927                      10 762
   Accounting adjustments*             (187)         (165)                       (312)
   Franchise sales                        5             4                           8
   Interest received                    508           427            19           917
   Trade receivables interest           459           384                         828
   Investment interest                   49            43                          89
   Other income                         136           120            13           235
   Commission                            65            63                         118
   Financial services income             31            23                          50
   Display fees                          29            25                          53
   Lease rental income                    4             5                           7
   Other                                  6             3                           6
   Royalties                              1             1                           1
   Dividends received                     3            30                          32
   Dividend received from 
     dissolution of an 
     insurance cell captive               -            29                          29
   Dividend received from 
     insurance business 
     arrangement                          3             1                           3
   Total revenue                      6 697         6 343             6        11 642
                                             
   * Accounting adjustments made in terms of IFRS and generally accepted accounting 
     practice relating to promotional vouchers, staff discounts on merchandise 
     purchased, cellular retail sales, notional interest on non-interest-bearing 
     trade receivables and the sales returns provision.

                                                 26 weeks      26 weeks      52 weeks
                                                to 28 Dec     to 29 Dec     to 29 Jun
                                                     2014          2013          2014
                                                Unaudited     Unaudited       Audited
                                                       Rm            Rm            Rm
5  TREASURY SHARES
   Opening balance                                    652         2 028         2 028
   Shares repurchased in accordance 
     with general repurchase programme                  -             2           490
   Shares cancelled                                     -        (1 851)       (1 897)
   Shares issued and held under the 
     restricted share scheme                           47             -            31
   Closing balance                                    699           179           652

   On 20 December 2013 the Group cancelled and applied for the delisting from the 
   JSE of approximately 44 million of its issued ordinary shares. The shares had been 
   acquired in the open market by wholly-owned subsidiary companies over the period 
   from 2004 to 2013, in accordance with the Group's general share repurchase 
   programme. This had the effect of reducing the number of treasury shares held 
   by the Group.

6  SEGMENT REPORTING
   The Group's reportable segments have been identified as the Truworths and 
   Young Designers Emporium (YDE) business units. The Truworths business unit 
   comprises all the retailing activities conducted by the Group, through which 
   the Group retails fashion apparel comprising clothing, footwear and other 
   fashion products to women, men and children, other than by the YDE business unit. 
   The YDE business unit comprises the agency activities through which the Group 
   retails clothing, footwear and related products on behalf of emerging 
   South African designers.

   Management monitors the operating results of the business segments separately for 
   the purpose of making decisions about resources to be allocated and of assessing 
   performance. Segment performance is reported on an IFRS basis and evaluated based 
   on revenue and profit before tax.

                                                          Consolidation
                                  Truworths           YDE       entries         Group
                                         Rm            Rm            Rm            Rm
   2014
   Total third party revenue          6 655            67           (25)        6 697
   Third party                        6 639            67            (9)        6 697
   Inter-segment                         16             -           (16)            -
   Depreciation and amortisation         97             2             -            99
   Interest received                    507             1             -           508

   Profit for the period              1 363            22             -         1 385
   Profit before tax                  1 893            30             -         1 923
   Tax expense                         (530)           (8)            -          (538)

   Capital expenditure                  186             3             -           189

   Gross margin            (%)         55.3             -             -          55.3
   Trading margin          (%)         22.9          42.2             -          23.3
   Operating margin        (%)         31.3          44.3             -          31.8
   Inventory turn      (times)          5.7             -             -           5.7
   Credit:cash sales mix   (%)        71:29         25:75             -         71:29

   2013
   Total third party revenue          6 274            63             6         6 343
   Third party                        6 259            63            21         6 343
   Inter-segment                         15             -           (15)            -
   Depreciation and amortisation         82             2             -            84
   Interest received                    426             1             -           427

   Profit for the period              1 383            20             -         1 403
   Profit before tax                  1 920            28             -         1 948
   Tax expense                         (537)           (8)            -          (545)

   Capital expenditure                  153             6             -           159

   Gross margin            (%)         56.3             -             -          56.3
   Trading margin          (%)         25.3          43.4             -          25.9
   Operating margin        (%)         32.7          44.7             -          33.8
   Inventory turn      (times)          6.0             -             -           6.0
   Credit:cash sales mix   (%)        71:29         24:76             -         71:29

                                Contribution to revenue     Contribution to revenue
                                       2014          2014          2013          2013
                                         Rm             %            Rm             %
   Third party revenue
   South Africa                       6 460          96.5         6 124          96.6
   Namibia                              114           1.7           103           1.6
   Botswana                              38           0.6            32           0.5
   Swaziland                             36           0.5            36           0.5
   Zambia                                13           0.2            10           0.2
   Nigeria                                7           0.1            10           0.2
   Ghana                                 10           0.1             9           0.1
   Mauritius                              7           0.1             6           0.1
   Lesotho                                7           0.1             9           0.1
   Franchise sales                        5           0.1             4           0.1
   Total third party revenue          6 697           100         6 343           100

                                                   28 Dec        29 Dec        29 Jun
                                                     2014          2013          2014
                                                Unaudited     Unaudited       Audited
                                                       Rm            Rm            Rm
7  CAPITAL COMMITMENTS
   Capital expenditure authorised but not contracted:
   Store renovations and development                  206           125           356
   Computer infrastructure                             41            45            65
   Head office refurbishment                           12             -             7
   Motor vehicles                                       4             2             3
   Distribution facilities                              -            57            17
   Total capital commitments                          263           229           448

   The capital commitments will be financed from cash generated from operations and 
   available cash resources and are expected to be incurred in the remainder of 
   the 2015 reporting period.

8  EVENTS AFTER THE END OF THE REPORTING PERIOD
   No event, material to the understanding of this interim report, has occurred 
   between the end of the interim period and the date of approval.

9  SEASONALITY
   Historically retail sales in the first half of the financial period have exceeded 
   those of the second half, because of the inclusion in the former of the Christmas 
   trading period. In the past five years, the Group's first half retail sales have 
   ranged between approximately 53% and 55% of annual retail sales.

10 RELATED PARTY TRANSACTIONS
   Related party transactions similar to those disclosed in the Group's annual 
   financial statements for the period ended 29 June 2014 took place during the period.


CORPORATE INFORMATION
Truworths International Ltd: Registration number: 1944/017491/06
Tax reference number: 9875/145/71/7
JSE code: TRU 
NSX code: TRW 
ISIN: ZAE000028296

Registered office: No. 1 Mostert Street, Cape Town, 8001, South Africa; 
PO Box 600, Cape Town, 8000, South Africa

Sponsor in South Africa: One Capital Sponsor Services (Pty) Ltd
Sponsor in Namibia: Old Mutual Investment Services (Namibia) (Pty) Ltd

Auditors: Ernst & Young Inc.

Transfer secretaries: 
In South Africa: Computershare Investor Services (Pty) Ltd, 
70 Marshall Street, Johannesburg, 2001, South Africa; 
PO Box 61051, Marshalltown, 2107, South Africa
In Namibia: Transfer Secretaries (Pty) Ltd, 
Robert Mugabe Avenue No. 4, Windhoek, Namibia;
PO Box 2401, Windhoek, Namibia

Company secretary: C Durham

Directors: H Saven (Chairman)^#, MS Mark (CEO)*, DB Pfaff (CFO)*, RG Dow^#, 
KI Mampeule^#, CT Ndlovu^#, RJA Sparks^#, AJ Taylor^# and MA Thompson^#
* Executive   ^ Non-executive   # Independent

Website: www.truworths.co.za

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