Wrap Text
Audited summarised consolidated results for the year ended 28 February 2015
HOLDSPORT LIMITED
("Holdsport" or "the company" or "the group")
Registration number: 2006/022562/06
Share code: HSP
ISIN: ZAE000157046
AUDITED SUMMARISED CONSOLIDATED RESULTS
FOR THE YEAR ENDED 28 FEBRUARY 2015
Sales up 9.0% to R1 544.8 million
Operating profit increased by 6.7% to R266.7 million
Core headline earnings per share up 6.9% to 452.3 cents
Final gross dividend increased by 13.8% to 165.0 cents per share
Strong cash flow generation
GROUP OVERVIEW
The Holdsport Limited group comprises the retail divisions Sportsmans Warehouse and
Outdoor Warehouse and Performance Brands, a wholesale business that includes the
First Ascent and Capestorm brands.
Total sales increased by 9.0% to R1 544.8 million and retail sales increased by
9.5% to R1 494.2 million.
Operating profit increased by 6.7% to R266.7 million. Core headline earnings amounted
to 452.3 cents per share, a 6.9% increase on the previous year.
During the current year the aggregate foreign exchange adjustment was a profit of
R1.4 million compared to an aggregate expense of R0.4 million during the prior year.
Core headline earnings excluding the effect of foreign exchange adjustments
increased by 6.1% to 450.0 cents per share.
TRADING DIVISIONS
External sales for the various trading divisions were as follows:
Increase
Number Sales in sales
of stores R'm %
Sportsmans Warehouse 35 1 133.6 8.8
Outdoor Warehouse 21 360.6 11.6
Retail sales 56 1 494.2 9.5
Performance Brands - 50.6 (3.4)
Total sales 56 1 544.8 9.0
Like-for-like retail sales grew by 8.1% while the retail divisions experienced price
inflation of approximately 7.5% for the year. The time weighted trading area
increased by 2.1% relative to the prior year.
The Sportsmans Warehouse division now trades out of 35 stores. The division relocated
two stores and expanded three stores during the year. Like-for-like sales increased
by 8.2%.
The Outdoor Warehouse division comprises 21 stores after opening a new store in
Windhoek and relocating two stores. Like-for-like sales increased by 7.8%.
Performance Brands' external sales were 3.4% lower than last year but sales to the
group's retail divisions increased by 12.5%.
CASH FLOW
The aggregate investment in working capital increased by 0.2% and cash generated
from operations increased by 18.8% from the previous year.
Net debt reduced to R0.2 million from R72.4 million at the end of the previous year.
The group spent R47.1 million in maintaining and expanding its operations during
the year and disposed of its 50% share in its distribution centre to Redefine
Properties Limited ("Redefine") for R42.5 million. The gross proceeds of this sale
was declared and paid as a special dividend of 99.0 cents per share.
During the year the group purchased and awarded R10.0 million of Holdsport shares in
terms of and subject to the rules of the 2011 Holdsport Forfeitable Share Plan (FSP).
The forfeitable share plan is expensed over the vesting period and the expense of
R9.7 million for the current year is R2.2 million higher than the prior year.
SHARE BUY-BACK
The group purchased 291 173 Holdsport shares for R12.1 million in accordance with
the general authority granted by special resolution of the company's shareholders
passed at the company's annual general meeting held on 13 August 2014 and in
compliance with the relevant provisions of the JSE Listings Requirements and the
Companies Act (71 of 2008), as amended.
EXPANSION
The group signed lease agreements for a further four new stores to be opened in the
next financial year and will relocate one store.
FINAL DIVIDEND ANNOUNCEMENT
The directors declared a final gross dividend of 165.0 cents per share payable on Monday,
8 June 2015 to ordinary shareholders recorded in the books of the company at the close
of business on Friday, 5 June 2015.
The last day to trade ("cum" the dividend) in order to participate in the dividend
will be Friday, 29 May 2015. The Holdsport Limited ordinary shares will commence
trading "ex" the dividend from the commencement of business on Monday, 1 June 2015
and the record date, as indicated, will be Friday, 5 June 2015.
Ordinary shareholders should take note that share certificates may not be dematerialised
or rematerialised during the period Monday, 1 June 2015 to Friday, 5 June 2015, both
dates inclusive.
In terms of the withholding tax on dividends which became effective on 1 April 2012,
the following additional information is disclosed:
- the dividend has been declared out of total reserves;
- the South African dividend tax rate is 15%;
- the net local dividend amount is 140.25 cents per ordinary share for shareholders
liable to pay dividend tax and 165.0 cents per ordinary share for shareholders
exempt from the dividend tax;
- the issued share capital of Holdsport at the date of declaration is 43 150 220
ordinary shares; and
- Holdsport's tax reference number is 9618595152.
Certificated ordinary shareholders are reminded that all entitlements to dividends with
a value less than R5.00 per certificated shareholder will be aggregated and the proceeds
donated to a registered charity of the directors' choice, in terms of the memorandum of
incorporation of the company.
Signed on behalf of the board
SA MULLER KG HODGSON
Chairman CEO
Cape Town
5 May 2015
SUMMARISED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
28 February 28 February
2015 2014
Audited Audited
R'000 R'000
ASSETS
Non-current assets
Property, plant and equipment 121 287 150 265
Goodwill and other intangibles 607 373 620 336
Total non-current assets 728 660 770 601
Current assets
Inventories 365 396 354 436
Trade and other receivables 25 619 24 782
Cash and cash equivalents 129 846 57 577
Taxation 618 857
Derivative instruments 387 -
Total current assets 521 866 437 652
Total assets 1 250 526 1 208 253
EQUITY AND LIABILITIES
Capital and reserves
Share capital 229 312 229 312
Share-based payment reserve (18 278) (17 926)
Treasury shares (12 084) -
Retained earnings 735 755 689 544
Equity attributable to owners of the company 934 705 900 930
Non-current liabilities
Loans 130 000 130 000
Deferred taxation 35 674 42 806
Straight-lining lease liability 28 918 24 590
Total non-current liabilities 194 592 197 396
Current liabilities
Trade and other payables 121 229 109 843
Derivative instruments - 84
Total current liabilities 121 229 109 927
Total liabilities 315 821 307 323
Total equity and liabilities 1 250 526 1 208 253
SUMMARISED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Year ended Year ended
28 February 28 February
2015 2014
Audited Audited
R'000 R'000
Sales 1 544 844 1 417 584
Cost of sales (809 883) (734 035)
Gross profit 734 961 683 549
Other income 15 719 5 470
Trading expenses (483 936) (439 010)
Operating profit 266 744 250 009
Finance income 5 380 2 441
Finance cost (10 285) (10 000)
Profit before taxation 261 839 242 450
Taxation (73 944) (68 740)
Profit and total comprehensive income for the year
attributable to equity holders of the company 187 895 173 710
SUMMARISED CONSOLIDATED CASH FLOW STATEMENTS
Year ended Year ended
28 February 28 February
2015 2014
Audited Audited
R'000 R'000
Cash flows from operating activities
Cash generated from operations 325 594 274 182
Finance income 5 380 2 441
Finance costs (10 285) (10 000)
Dividends paid (141 684) (88 457)
Taxation paid (80 837) (76 557)
Net cash inflows from operating activities 98 168 101 609
Cash flows from investing activities
Additions to property, plant and equipment (47 102) (82 353)
Proceeds on sale of property, plant and equipment 43 306 1 265
Net cash outflows from investing activities (3 796) (81 088)
Cash flows from financing activities
Increase in loans - 5 718
Treasury shares acquired (12 084) -
Share-based payment award (10 019) (4 946)
Net cash (outflows)/inflows from financing activities (22 103) 772
Net increase in cash and cash equivalents 72 269 21 293
Cash and cash equivalents at the beginning of the year 57 577 36 284
Cash and cash equivalents at the end of the year 129 846 57 577
SUMMARISED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
Share-
based
Share payment Retained
capital reserve Treasury earnings Total
Audited Audited shares Audited Audited
R'000 R'000 R'000 R'000 R'000
Balance at 1 March 2013 229 312 (20 521) - 604 291 813 082
Share-based payment award - (4 946) - - (4 946)
Share-based payment expense - 7 541 - - 7 541
Dividends paid - - - (88 457) (88 457)
Total comprehensive income
for the year - - - 173 710 173 710
Balance at 28 February 2014 229 312 (17 926) - 689 544 900 930
Balance at 1 March 2014 229 312 (17 926) - 689 544 900 930
Share-based payment award - (10 019) - - (10 019)
Share-based payment expense - 9 667 - - 9 667
Treasury shares acquired - - (12 084) - (12 084)
Dividends paid - - - (141 684) (141 684)
Total comprehensive income
for the year - - - 187 895 187 895
Balance at 28 February 2015 229 312 (18 278) (12 084) 735 755 934 705
SUMMARISED CONSOLIDATED SEGMENTAL ANALYSIS
Sportsmans Outdoor Performance
Warehouse Warehouse Brands Corporate Group
R'000 R'000 R'000 R'000 R'000
Year ended 28 February 2015
Total sales 1 133 594 360 590 116 537 - 1 610 721
Less inter-segment sales (65 877) (65 877)
External sales 1 133 594 360 590 50 660 - 1 544 844
External interest received - - 187 5 193 5 380
External interest paid - - (23) (10 262) (10 285)
Depreciation and amortisation (25 702) (7 669) (3 850) (14 598) (51 819)
Profit/(Loss) before taxation 234 089 55 454 21 762 (49 466) 261 839
Capital expenditure 34 411 9 596 739 2 356 47 102
Segment assets 328 096 114 743 109 220 698 467 1 250 526
Segment liabilities 85 600 24 180 5 602 200 439 315 821
Year ended 28 February 2014
Total sales 1 042 008 323 117 111 003 - 1 476 128
Less inter-segment sales (58 544) (58 544)
External revenue 1 042 008 323 117 52 459 - 1 417 584
External interest received - - 88 2 353 2 441
External interest paid - - (3) (9 997) (10 000)
Depreciation and amortisation (19 732) (6 263) (3 407) (13 323) (42 725)
Profit/(Loss) before taxation 219 692 50 739 19 017 (46 998) 242 450
Capital expenditure 28 698 9 190 14 338 30 126 82 352
Segment assets 301 671 105 835 115 149 685 598 1 208 253
Segment liabilities 81 601 18 629 10 790 196 303 307 323
NOTES TO THE SUMMARISED FINANCIAL STATEMENTS
1. KPMG Inc., the group's independent auditor, has audited the consolidated financial
statements for the year to 28 February 2015 and has expressed an unmodified opinion
on the consolidated financial statements. The summary financial statements have been
audited and an unmodified opinion has been expressed on the summary financial
statements. The summary consolidated financial statements presented in this
announcement have been summarised from the audited consolidated financial statements.
Their audit reports are available for inspection at the company's registered office.
The summary consolidated financial statements are prepared in accordance with the
requirements of the JSE Limited Listings Requirements for preliminary reports, and
the requirements of the Companies Act applicable to summary financial statements.
The Listings Requirements require preliminary reports to be prepared in accordance
with the framework concepts and the measurement and recognition requirements of
International Financial Reporting Standards (IFRS) and the SAICA Financial Reporting
Guides as issued by the Accounting Practices Committee and Financial Pronouncements
as issued by the Financial Reporting Standards Council and to also, as a minimum,
contain the information required by IAS 34: Interim Financial Reporting.
The accounting policies applied in the preparation of the consolidated financial
statements from which the summary financial statements were derived are in terms of
International Financial Reporting Standards and are consistent with those accounting
policies applied in the preparation of the previous consolidated annual financial
statements.
These audited summarised consolidated results have been prepared under the
supervision of the group's Chief Financial Officer, JP Loubser (CA(SA)).
2. These financial statements incorporate the financial statements of the company, all
its subsidiaries and all entities over which it has control.
28 February 28 February
2015 2014
Audited Audited
R'000 R'000
3. Trading expenses
Depreciation on property, plant and equipment 38 856 29 762
Amortisation of intangibles 12 963 12 963
Occupancy cost 132 638 123 625
Straight-lining of leases 4 328 138
Staff costs 183 795 167 711
Foreign exchange gains (559) (862)
Other operating costs 111 915 105 673
483 936 439 010
4. Cash generated from operations
Operating profit 266 744 250 009
Adjustments for:
Depreciation 38 856 29 762
Amortisation of intangibles 12 963 12 963
Profit on sale of property, plant and equipment (7 054) (657)
Fair value (gain)/loss on derivative instruments (471) 486
Forfeitable share plan expense 9 667 7 541
Straight-lining of leases 4 328 138
Changes in working capital:
Increase in trade and other receivables (837) (2 436)
Increase in inventories (10 960) (8 382)
Increase/(decrease) in trade and other payables 12 358 (15 242)
Cash generated from operations 325 594 274 182
5. Earnings per share and net asset value per share
Earnings per ordinary share (cents)
- Basic 436.5 402.6
- Headline 423.4 401.5
- Core headline 452.3 423.3
- Core headline before foreign exchange effect 450.0 424.0
Ordinary shares in issue ('000) 43 150 43 150
Weighted average ordinary shares in issue ('000) 43 044 43 150
Net asset value per ordinary share (cents) 2 180.9 2 087.9
Net tangible asset value per ordinary share (cents) 895.4 789.6
Reconciliation to core headline earnings
The group uses core headline earnings as a consistent measure of performance for
management purposes. Core headline earnings exclude exceptional once-off costs,
the amortisation of trademarks and the lease straight-lining expense and is
presented below:
28 February 28 February
2015 2014
Audited Audited
R'000 R'000
Basic earnings 187 895 173 710
Adjusted for (net of taxation):
Profit on sale of assets (5 636) (473)
Headline earnings 182 259 173 237
Adjusted for (net of taxation):
Amortisation of intangibles 9 333 9 333
Straight-lining of leases 3 117 100
Core headline earnings 194 709 182 670
Adjusted for (net of taxation):
Foreign exchange gains (402) (621)
Foreign exchange adjustments in cost of sales (599) 922
Core headline earnings before foreign exchange effect 193 708 182 971
6. Dividend per share (cents)
Dividend declared per share
- Interim 85.0 75.0
- Final 165.0 145.0
Normal dividend 250.0 220.0
- Special 99.0 -
Total dividend 349.0 220.0
Normal dividend cover (by core headline earnings) 1.81 1.92
Registered office: The Mill House, 1 Canterbury Street, Cape Town 8001
Executive directors: KG Hodgson, JP Loubser, B Moritz
Non-executive directors: SA Muller (Chairman), B Hopkins, P Matlakala, KR Moloko,
KA Hedderwick
Company secretary: AE van Zyl
Transfer secretaries: Computershare Investor Services (Proprietary) Limited
Ground Floor, 70 Marshall Street, Johannesburg 2001
Sponsor: UBS South Africa (Proprietary) Limited
Date: 05/05/2015 04:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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