Wrap Text
Reviewed Preliminary Condensed Consolidated Financial Statements for the Year Ended 31 March 2017
The Foschini Group Limited
Registration number: 1937/009504/06
Share codes: TFG-TFGP
ISIN codes: ZAE000148466 – ZAE000148516
Reviewed Preliminary Condensed Consolidated Financial Statements for the
Year Ended 31 March 2017
The reviewed preliminary condensed consolidated financial statements of The
Foschini Group Limited for the year ended 31 March 2017 have been reviewed
by the company’s auditors, KPMG Inc., who expressed an unmodified review
conclusion. The auditor’s report does not necessarily report on all the
information contained in these financial statements. Shareholders are
therefore advised that in order to obtain a full understanding of the nature
of the auditor’s engagement they should obtain a copy of the auditor’s
report together with the accompanying financial information, which is
available at the company’s registered office.
SALIENT FEATURES
* Group turnover up 11,6% (constant currency +14,3%)to R23,5 billion (TFG
Africa*: +8,0%)
* Headline earnings excluding acquisition costs up 6,8%
* Headline earnings per share excluding acquisition costs up 4,1% (constant
currency +5,7%) to 1 099,2 cents
* Final dividend of 400,0 cents per share, total dividend of 720,0 cents per
share – a 4,2% increase
* Total cash component of turnover 60,7% (TFG Africa: 51,1%)
* Strong cash turnover growth of 18,5% (TFG Africa: 14,1%)
* Net bad debt reduces by 5,4%
* Free cash flow doubles to R1,3bn
* Acquisition of 400 outlet leading Australian menswear retailer, the Retail
Apparel Group (“RAG”), post year-end
* TFG Africa includes all operations on the African continent
These results were prepared by the TFG Finance and Advisory department of
The Foschini Group Limited, acting under supervision of Anthony Thunström
CA(SA), CFO of The Foschini Group Limited.
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
March March
2017 2016
Reviewed Audited
Rm Rm
ASSETS
Non-current assets
Property, plant and equipment 2 469,0 2 335,7
Goodwill and intangible assets 4 675,9 5 577,8
Participation in export partnerships - 8,2
Deferred taxation asset 483,6 527,2
---------- ----------
7 628,5 8 448,9
---------- ----------
Current assets
Inventory (note 4) 5 511,2 5 116,1
Trade receivables – retail 7 000,7 6 695,0
Other receivables and prepayments 771,0 592,9
Concession receivables 246,1 347,2
Participation in export partnerships - 6,2
Cash 878,5 888,8
---------- ----------
14 407,5 13 646,2
---------- ----------
Total assets 22 036,0 22 095,1
========== ==========
EQUITY AND LIABILITIES
Equity attributable to equity holders
of The Foschini Group Limited 10 515,3 9 896,7
Non-controlling interest 4,2 4,0
---------- ----------
Total equity 10 519,5 9 900,7
---------- ----------
LIABILITIES
Non-current liabilities
Interest-bearing debt 4 442,2 5 026,3
Put option liability 74,7 48,1
Cash-settled share incentive scheme 6,8 8,5
Operating lease liability 255,7 238,2
Deferred taxation liability 337,9 435,4
Post-retirement defined benefit plan 233,1 217,3
---------- ----------
5 350,4 5 973,8
---------- ----------
Current liabilities
Interest-bearing debt 3 307,0 3 139,4
Trade and other payables 2 751,3 3 046,7
Operating lease liability 15,2 10,8
Taxation payable 92,6 23,7
---------- ----------
6 166,1 6 220,6
---------- ----------
Total liabilities 11 516,5 12 194,4
---------- ----------
Total equity and liabilities 22 036,0 22 095,1
========== ==========
CONDENSED CONSOLIDATED INCOME STATEMENT
Year ended Year ended
31 March 31 March
2017 2016
Reviewed Audited %
Rm Rm change
Revenue (note 5) 26 413,6 23 746,4
========== ==========
Retail turnover 23 548,7 21 107,5 11,6
Cost of turnover (11 845,2) (10 613,1)
---------- ----------
Gross profit 11 703,5 10 494,4
Interest income (note 6) 1 736,9 1 533,0
Other income (note 7) 1 128,0 1 105,9
Trading expenses (note 8) (10 757,2) (9 537,2)
---------- ----------
Operating profit before
acquisition costs and
finance costs 3 811,2 3 596,1 6,0
Acquisition costs - (65,9)
Finance costs (607,4) (509,0)
---------- ----------
Profit before tax 3 203,8 3 021,2
Income tax expense (851,3) (863,9)
---------- ----------
Profit for the year 2 352,5 2 157,3 9,0
========== ==========
Attributable to:
Equity holders of The
Foschini Group Limited 2 351,4 2 155,6
Non-controlling interest 1,1 1,7
---------- ----------
Profit for the year 2 352,5 2 157,3
========== ==========
Earnings per ordinary share
(cents)
Total
Basic 1 108,0 1 041,5 6,4
Headline 1 099,2 1 024,0 7,3
Diluted (basic) 1 098,6 1 031,9 6,5
Diluted (headline) 1 089,9 1 014,5 7,4
Total (excluding acquisition costs) earnings per ordinary share – refer to
note 10
Weighted average ordinary
shares in issue (millions) 212,2 207,0
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Year ended Year ended
31 March 31 March
2017 2016
Reviewed Audited
Rm Rm
Profit for the year 2 352,5 2 157,3
---------- ----------
Other comprehensive income:
Items that will never be reclassified
to profit or loss
Actuarial losses on post-retirement
defined benefit plan - (11,8)
Deferred tax on items that will never
be reclassified to profit or loss - 3,3
Items that are or may be reclassified
to profit or loss
Movement in effective portion of
changes in fair value of cash flow
hedges 24,2 (70,3)
Foreign currency translation reserve
movements (793,1) 464,0
Deferred tax on items that are or may
be reclassified to profit or loss (6,8) 19,7
---------- ----------
Other comprehensive income for the
year, net of tax (775,7) 404,9
---------- ----------
Total comprehensive income for the
year 1 576,8 2 562,2
========== ==========
Attributable to:
Equity holders of The Foschini Group
Limited 1 575,7 2 560,5
Non-controlling interest 1,1 1,7
---------- ----------
Total comprehensive income for the
year 1 576,8 2 562,2
========== ==========
March 2017 March 2016
Supplementary Information Reviewed Audited
Net ordinary shares in issue
(millions) 214,0 209,3
Weighted average ordinary shares in
issue (millions) 212,2 207,0
Tangible net asset value per
ordinary share (cents) 2 728,7 2 063,5
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Equity
holders of The Non-
Foschini Group controlling Total
Limited interest equity
Rm Rm Rm
Equity at 31 March 2015 - audited 8 130,9 2,7 8 133,6
Profit for the year 2 155,6 1,7 2 157,3
Other comprehensive income
Actuarial losses on post-retirement
defined benefit plan (11,8) - (11,8)
Movement in effective portion of
changes in fair value of cash flow
hedges (70,3) - (70,3)
Foreign currency translation reserve
movements 464,0 - 464,0
Deferred tax on movement in other
comprehensive income 23,0 - 23,0
-------- -------- --------
Total comprehensive income for the
year 2 560,5 1,7 2 562,2
Contributions by and distributions to
owners
Share-based payments reserve
movements 114,7 - 114,7
Dividends paid (1 327,2) (0,4) (1 327,6)
Scrip distribution: share capital
issued and share premium raised 579,8 - 579,8
Proceeds from sale of shares in terms
of share incentive schemes 18,1 - 18,1
Shares purchased in terms of share
incentive schemes (193,6) - (193,6)
Increase in the fair value of the put
option liability (27,2) - (27,2)
Current tax on shares purchased 13,6 - 13,6
Deferred tax on shares purchased 27,1 - 27,1
-------- -------- --------
Equity at 31 March 2016 - audited 9 896,7 4,0 9 900,7
Profit for the year 2 351,4 1,1 2 352,5
Other comprehensive income
Movement in effective portion of
changes in fair value of cash flow 24,2 - 24,2
hedges
Foreign currency translation reserve
movements (793,1) - (793,1)
Deferred tax on movement in other
comprehensive income (6,8) - (6,8)
-------- -------- --------
Total comprehensive income for the 1 575,7 1,1 1 576,8
year
Contributions by and distributions to
owners
Share-based payments reserve 131,4 - 131,4
movements
Dividends paid (1 508,1) (0,9) (1 509,0)
Scrip distribution: share capital
issued and share premium raised 542,9 - 542,9
Proceeds from sale of shares in terms
of share incentive schemes 151,3 - 151,3
Shares purchased in terms of share
incentive schemes (234,8) - (234,8)
Increase in the fair value of the put
option liability (39,8) - (39,8)
-------- -------- --------
Equity at 31 March 2017 - reviewed 10 515,3 4,2 10 519,5
======== ======== ========
Year ended Year ended
31 March 31 March
2017 2016
Reviewed Audited
Distribution per ordinary share
(cents)
Interim 320,0 306,0
Final 400,0 385,0
---------- ----------
Total 720,0 691,0
========== ==========
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
Year ended Year ended
31 March 31 March
2017 2016
Reviewed Audited
Rm Rm
Cash flows from operating activities
Operating profit before working
capital changes (note 9) 4 488,6 4 127,2
Increase in working capital (1 156,5) (1 509,4)
---------- ----------
Cash generated from operations 3 332,1 2 617,8
Interest income 33,1 22,3
Finance costs (607,4) (509,0)
Taxation paid (777,5) (921,8)
Dividends paid (966,1) (747,8)
---------- ----------
Net cash inflows from operating
activities 1 014,2 461,5
---------- ----------
Cash flows from investing activities
Purchase of property, plant and
equipment and intangible assets (883,5) (901,0)
Acquisition of assets through
business combinations (note 11) (33,8) (152,4)
Proceeds from sale of property, plant
and equipment 32,0 14,6
Repayment of participation in export
partnerships 14,4 7,2
Proceeds from disposal of investment - 1,1
---------- ----------
Net cash outflows from investing
activities (870,9) (1 030,5)
---------- ----------
Cash flows from financing activities
Shares purchased in terms of share
incentive schemes (234,8) (193,6)
Proceeds from sale of shares in terms
of share incentive schemes 151,3 18,1
Increase in interest-bearing debt 36,8 760,6
---------- ----------
Net cash (outflows)inflows from
financing activities (46,7) 585,1
---------- ----------
Net increase in cash during the year 96,6 16,1
Cash at the beginning of the year 888,8 800,4
Effect of exchange rate fluctuations
on cash held (106,9) 72,3
---------- ----------
Cash at the end of the year 878,5 888,8
========== ==========
CONSOLIDATED SEGMENTAL ANALYSIS
Customer
Retail value- Central Inter-
trading added and shared national
divisions products Credit services division
Reviewed Reviewed Reviewed Reviewed Reviewed
Rm Rm Rm Rm Rm
Year ended 31
March 2017
External
revenue 18 912,8 783,3 331,5 13,2 4 635,9
External
interest income - - 1 703,8 33,1 -
-------- -------- -------- -------- --------
Total revenue* 18 912,8 783,3 2 035,3 46,3 4 635,9
======== ======== ======== ======== ========
External
finance costs (526,8) (80,6)
Depreciation
and
amortisation (437,6) (102,7)
Segmental
profit (loss)
before tax 3 802,1 444,0 571,9 (1 802,2) 345,3
Customer
Retail value- Central Inter-
trading added and shared national
divisions products Credit services division
Audited Audited Audited Audited Audited
Rm Rm Rm Rm Rm
Year ended 31
March 2016
External
revenue 17 504,4 778,4 312,4 15,1 3 603,1
External
interest income - - 1 510,7 22,3 -
-------- -------- -------- -------- --------
Total revenue* 17 504,4 778,4 1 823,1 37,4 3 603,1
======== ======== ======== ======== ========
External
finance costs (409,5) (99,5)
Depreciation
and
amortisation (347,1) (117,6)
Segmental
profit (loss)
before tax 3 683,4 437,6 320,1 (1 531,0) 241,3
Year ended Year ended
31 March 31 March
2017 2016
Reviewed Audited
Rm Rm
External revenue 24 676,7 22 213,4
External interest income 1 736,9 1 533,0
---------- ----------
Total revenue* 26 413,6 23 746,4
========== ==========
External finance costs (607,4) (509,0)
Depreciation and amortisation (540,3) (464,7)
Segmental profit before tax 3 361,1 3 151,4
Other material non-cash items
Foreign exchange transactions (4,0) 1,4
Share-based payments (131,4) (114,7)
Operating lease liability adjustment (21,9) (16,9)
---------- ----------
Group profit before tax 3 203,8 3 021,2
Capital expenditure 883,5 901,0
Segment assets 22 036,0 22 095,1
Segment liabilities 11 516,5 12 194,4
* Includes retail turnover, interest income and other income.
NOTES
Review report of the Independent Auditors
The reviewed preliminary condensed consolidated financial statements of The
Foschini Group Limited for the year ended 31 March 2017 have been reviewed
by the company’s auditors, KPMG Inc., who expressed an unmodified review
conclusion. The auditor’s report does not necessarily report on all the
information contained in these financial statements. Shareholders are
therefore advised that in order to obtain a full understanding of the nature
of the auditor’s engagement they should obtain a copy of the auditor’s
report together with the accompanying financial information, which is
available at the company’s registered office.
1. Basis of preparation
The reviewed preliminary condensed consolidated financial statements for the
year ended 31 March 2017 are prepared in accordance with the requirements of
the Companies Act of South Africa. 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 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 these reviewed preliminary
condensed consolidated financial statements are in terms of IFRS and are
consistent with those applied in the previous consolidated annual financial
statements except as noted otherwise.
2. During the year, the Group adopted the following revised accounting
standards:
- Annual Improvements to IFRSs 2012-2014 Cycle – various standards
- Disclosure Initiative (Amendments to IAS 1)
The adoption of these standards had no material impact on these results.
3. These financial statements incorporate the financial statements of the
company, all its subsidiaries and all entities over which it has operational
and financial control.
Year ended Year ended
31 March 31 March
2017 2016
Reviewed Audited
Rm Rm
4. Inventory
Inventory at year-end 5 511,2 5 116,1
========== ==========
Inventory write-downs included above 233,0 174,9
---------- ---------
5. Revenue
Retail turnover 23 548,7 21 107,5
Interest income (note 6) 1 736,9 1 533,0
Other income (note 7) 1 128,0 1 105,9
---------- ----------
26 413,6 23 746,4
---------- ----------
6. Interest income
Trade receivables – retail 1 703,8 1 510,7
Sundry 33,1 22,3
---------- ----------
1 736,9 1 533,0
---------- ----------
7. Other income
Publishing income 400,8 399,4
Collection cost recovery 331,5 312,4
Insurance income 289,0 297,8
Mobile one2one airtime income 93,5 81,2
Sundry income 13,2 15,1
---------- ----------
1 128,0 1 105,9
---------- ----------
8. Trading expenses
Depreciation and amortisation (540,3) (464,7)
Employee costs (3 669,8) (3 210,8)
Occupancy costs (2 431,8) (2 043,2)
Net bad debt (896,1) (947,7)
Other operating costs (3 219,2) (2 870,8)
---------- ----------
(10 757,2) (9 537,2)
---------- ----------
9. Operating profit before working
capital changes
Profit before tax 3 203,8 3 021,2
Finance costs 607,4 509,0
---------- ----------
Operating profit before finance costs 3 811,2 3 530,2
Interest income – sundry (33,1) (22,3)
Non-cash items
Depreciation and amortisation 540,3 464,7
Operating lease liability adjustment 21,9 16,9
Share-based payments 131,4 114,7
Post-retirement defined benefit
medical aid movement 15,8 12,9
Foreign currency translation reserve
movements 4,0 1,4
Cash-settled share incentive scheme - 7,7
Profit on disposal of investment - (1,1)
Loss on disposal of property, plant
and equipment 12,2 7,1
Profit on disposal of property, plant
and equipment (15,1) (5,0)
---------- ----------
4 488,6 4 127,2
---------- ----------
10. Reconciliation of profit for the
year to headline earnings
Profit for the year attributable to
equity holders of The Foschini Group
Limited 2 351,4 2 155,6
Adjusted for:
Profit on disposal of property, plant
and equipment (15,1) (5,0)
Loss on disposal of property, plant
and equipment 12,2 7,1
Profit on disposal of investment - (1,1)
---------- ----------
Adjusted headline earnings before tax 2 348,5 2 156,6
Tax on headline earnings adjustments (15,7) (37,3)
---------- ----------
Headline earnings 2 332,8 2 119,3
Acquisition costs - 65,9
---------- ----------
Adjusted headline earnings* 2 332,8 2 185,2
---------- ----------
* Adjusted headline earnings is calculated to remove the impact of the
acquisition costs of the prior year’s Whistles acquisition.
Year ended Year ended
31 March 31 March %
2017 2016 change
Earnings per ordinary share (cents)
Total (excluding acquisition
costs)
Basic 1 108,0 1 073,3 3,2
Headline 1 099,2 1 055,8 4,1
Diluted (basic) 1 098,6 1 063,4 3,3
Diluted (headline) 1 089,9 1 046,0 4,2
Total
Basic 1 108,0 1 041,5 6,4
Headline 1 099,2 1 024,0 7,3
Diluted (basic) 1 098,6 1 031,9 6,5
Diluted (headline) 1 089,9 1 014,5 7,4
11. Acquisition during the year
Damsel in a Dress
On 3 February 2017, the Group acquired 100% of the inventory and the brand
of Damsel in a Dress Limited, which trades as Damsel in a Dress.
Consideration of £2 million was paid to acquire the rights to the brand and
inventory of Damsel in a Dress Limited. The brand will be managed within the
International division.
12. Related parties
The Group entered into related party transactions in the ordinary course of
business, the substance of which are similar to those disclosed in the
Group’s annual financial statements for the year ended 31 March 2016.
13. Fair value
The carrying value less impairment provision of trade receivables and
payables are assumed to approximate their fair values due to their short-
term nature. The Group only has level 2 financial instruments. There are no
level 1 or level 3 financial instruments within the Group and there were no
transfers between levels during the year.
14. Subsequent events
With effect from 3 April 2017, the Group acquired 14 G-Star RAW franchise
stores in Australia for AUD13,9 million.
The Group is acquiring 100% of the share capital of Retail Apparel Group
(Pty) Ltd (RAG). RAG is a leading speciality menswear retailer in the
Australian market. The purchase is capped at the lower of 7 times RAG’s
audited normalised EBITDA, for the year ending June 2017, and AUD302,5
million which will then be adjusted for normalised working capital and net
debt at acquisition. The expected purchase price has been hedged.
No further significant events took place between the year ended 31 March
2017 and date of issue of this report.
15. Changes in directors
There were no changes in directors during the current year.
COMMENTARY
INTRODUCTION
To assist our stakeholders in understanding the Group’s activities, we will
be using the naming conventions defined below:
- “The TFG Group” or “the Group” – refers to the consolidated performance
of TFG Limited and all its subsidiaries
- “TFG Africa” – refers to all operations on the African continent
- “TFG International” – refers to all operations outside the African
continent
In the commentary below, numbers quoted refer to the Group unless otherwise
specified.
PERFORMANCE OVERVIEW
The Group’s satisfactory performance of the first half continued into the
second half of the financial year resulting in retail turnover growth for
the full year of 11,6% (constant currency +14,3%). This growth was achieved
despite the challenging trading environment experienced during the year
across all the territories that we trade in. Turnover growth for TFG Africa
was 8,0% with comparable sales growth of 2,8%.
Cash turnover growth for the Group was slower in the second half at 9,5%
(TFG Africa: 10,3%) resulting in full year growth of 18,5% (TFG Africa:
14,1%). Credit turnover however continues to be impacted by the reduction
in new account openings as a result of the Affordability Regulations and
grew by only 2,3%.
Gross margin for the year remained broadly consistent in all merchandise
categories. The Group achieved a gross margin of 49,7% (March 2016: 49,7%)
for the year whilst a margin of 46,4% (March 2016: 46,9%) was achieved in
TFG Africa. The TFG Africa gross margin mix was impacted by strong cellular
sales (+15,3%) which historically trades at a lower margin.
Total trading expenses increased by 12,8% (TFG Africa: 7,9%) over the
previous year. Although cost control remains a priority and key focus area,
we continue to invest for future growth.
Headline earnings grew by 10,1% for the year (6,8% excluding acquisition
costs). Headline earnings per share (excluding acquisition costs) increased
to 1 099,2 cents per share from 1 055,8 cents per share, a growth of 4,1%
(constant currency +5,7%).
A final cash dividend of 400,0 cents per share has been declared, an
increase of 3,9%. Accordingly, the total dividend for the year amounts to
720,0 cents per share, an increase of 4,2%.
During the year, the Group opened 331 outlets (206 in Africa and 125
internationally) whilst 128 outlets were closed. Of the 128 outlets, 37
were converted to other brands within the Group. This was due to our
ongoing capital optimisation project, which places specific focus on loss
making outlets. At year-end, the Group’s footprint extended to a total of
3 328 outlets in 34 countries. Net trading space in our African operations
increased by 4,4% since March 2016.
Our investment in e-commerce continues with turnover from online trading
exceeding expectation for both our local and international brands. Shortly
after year-end, @homelivingspace successfully launched online furniture
sales.
MERCHANDISE CATEGORIES
Turnover growths in the various merchandise categories are as follows:
% turnover % turnover % same store
growth (TFG growth (TFG turnover growth
Group) Africa) (TFG Africa)
Clothing 13,3% 8,6% 3,0%
Jewellery 1,4% 1,4% (0,8%)
Cellphones 15,3% 15,3% 11,4%
Homeware & furniture 5,9% 5,9% (3,2%)
Cosmetics 2,3% 2,3% 0,0%
Total same store turnover (TFG Africa) grew by 2,8% whilst product inflation
averaged approximately 7,2%.
CREDIT
The retail debtors’ book of R7 billion, grew by 4,6% compared to March 2016.
The Affordability Regulations and the challenging economic environment has
severely impacted our number of active accounts, which reduced by 5,4%
compared to the previous year.
Continuing the trend of last year, net bad debt decreased by a pleasing 5,4%
due to improved collection results and strong growth in recoveries. As a
consequence of the modest growth of the debtors’ book and the lower credit
turnover growth, net bad debt as a percentage of the closing debtors’ book
was 11,3%, down from 12,3% at March 2016. The retail debtors’ book is
conservatively provisioned at 11,8%, down from 13,2% at the previous year-
end. This is to be expected given the improved collections and the slowdown
in new accounts growth.
BALANCE SHEET STRUCTURE
Our recourse debt to equity ratio at year-end improved to 53,6% from 55,6%
at March 2016 with total debt to equity improving to 65,3% from 73,5% at
March 2016.
AFRICA EXPANSION
At the year-end, the Group was trading out of 183 outlets across seven
African countries (excluding South Africa). During the year, we opened nine
outlets and closed two.
These outlets traded satisfactorily with turnover growth of 9,9% during the
year and comparable store turnover growth of 3,4%.
In South Africa, we opened 160 new outlets during the year and converted 37
former Fashion Express outlets to other brands in the Group, bringing the
total number of South African outlets to 2 406.
INTERNATIONAL EXPANSION
Performance within our international division was ahead of expectation and
peer group performance for the year with good progress made on the strategic
targets set for both Phase Eight and Whistles. Turnover growth was 45,0% in
GBP and operational EBITDA growth was 15,1% in GBP.
INTERNATIONAL ACQUISITIONS POST YEAR-END
With effect from 3 April 2017, the Group acquired 14 G-Star RAW franchise
stores in Australia.
In line with our international growth strategy, we are pleased to announce
the acquisition of 100% of the share capital of the Retail Apparel Group
(“RAG”). RAG is a leading speciality menswear retailer in Australia and New
Zealand and trades through four menswear brands with 375 outlets and a small
but fast-growing ladies athleisure brand with 25 outlets. The expected
purchase price has been hedged. The pertinent information relevant to this
acquisition is contained in the SENS announcement which has been released
earlier today.
OUTLOOK
Political and economic uncertainty continues to cloud the outlook for
domestic as well as the global economy.
As previously mentioned, the Affordability Regulations have had and will
continue to have a negative impact on the Group’s credit turnover. The
Group, together with two other major listed retailers, has initiated legal
action against the National Credit Regulator (NCR) and Department of Trade
and Industry (dti) in connection with the Affordability Regulations. With
the negative impact of the credit regulations now in our base, we anticipate
stronger credit turnover growth off this lower base which should not be
allowed to mask the underlying impact that these regulations have on the
long-term credit prospects of our Group.
Despite the economic outlook, we believe that our continued commitment to
our strategic objectives around customer, leadership, profit and growth will
support our future success. In line with our strategy for long-term growth,
we anticipate opening in excess of 150 new stores in TFG Africa in the year
ahead which will increase trading space by approximately 5%. In addition, we
are planning to open in excess of 110 TFG International outlets. Our
investment in the UK and Australian markets strengthens our diversified
portfolio of brands and provides a solid platform for further growth
opportunities in these markets.
The Group’s turnover growth, in constant currency, for the first seven weeks
of the 2018 financial year, is in line with management’s expectations in the
upper single digits across both TFG International and TFG Africa.
PREFERENCE DIVIDEND ANNOUNCEMENT
Dividend no. 161 of 3,25% (6,5 cents per share) (gross) in respect of the
six months ending 30 September 2017 has been declared from income reserves,
payable on Tuesday, 26 September 2017 to holders of 6,5% preference shares
recorded in the books of the company at the close of business on Friday, 22
September 2017. The last day to trade (“cum” the dividend) in order to
participate in the dividend will be Tuesday, 19 September 2017. The Foschini
Group Limited preference shares will commence trading “ex” the dividend from
the commencement of business on Wednesday, 20 September 2017 and the record
date, as indicated, will be Friday, 22 September 2017.
Preference shareholders should take note that share certificates may not be
dematerialised or rematerialised during the period Wednesday, 20 September
2017 to Friday, 22 September 2017, both dates inclusive.
In terms of section 11.17 of the JSE Listings Requirements, the following
additional information is disclosed:
1) Local dividend tax rate is 20%;
2) The withholding tax, if applicable at the rate of 20%, will result in
a net cash dividend per share of 5,20000 cents;
3) The issued preference share capital of The Foschini Group Limited is
200 000 shares at 25 May 2017; and
4) The Foschini Group Limited’s tax reference number is 9925/133/71/3P.
FINAL ORDINARY DIVIDEND ANNOUNCEMENT
The directors have declared a gross final ordinary dividend of 400,0 cents
per ordinary share from income reserves, for the period ended 31 March 2017,
payable on Monday, 24 July 2017 to ordinary shareholders recorded in the
books of the company at the close of business on Friday, 21 July 2017. The
last day to trade (“cum” the dividend) in order to participate in the
dividend will be Tuesday, 18 July 2017. The Foschini Group Limited ordinary
shares will commence trading “ex” the dividend from the commencement of
business on Wednesday, 19 July 2017 and the record date, as indicated, will
be Friday, 21 July 2017.
Ordinary shareholders should take note that share certificates may not be
dematerialised or rematerialised during the period Wednesday, 19 July 2017
to Friday, 21 July 2017, both dates inclusive.
In terms of section 11.17 of the JSE Listings Requirements, the following
additional information is disclosed:
1) Local dividend tax rate is 20%;
2) The withholding tax, if applicable at the rate of 20%, will result in
a net cash dividend per share of 320,00000 cents;
3) The issued ordinary share capital of The Foschini Group Limited is 219
515 434 shares at 25 May 2017; and
4) The Foschini Group Limited’s tax reference number is 9925/133/71/3P.
Signed on behalf of the Board.
M Lewis A D Murray
Chairman CEO
Cape Town
25 May 2017
Non-executive Directors:
M Lewis (Chairman), Prof F Abrahams, S E Abrahams, G Davin, D Friedland, B L
M Makgabo-Fiskerstrand, E Oblowitz, N V Simamane, R Stein
Executive Directors:
A D Murray, A Thunström
Company Secretary:
D van Rooyen
Registered office:
Stanley Lewis Centre, 340 Voortrekker Road, Parow East, 7500
Transfer secretaries:
Computershare Investor Services Proprietary Limited
Rosebank Towers, 15 Biermann Avenue, Rosebank, Johannesburg, 2196
Sponsor:
UBS South Africa Proprietary Limited
Visit our website at http://www.tfglimited.co.za
Date: 25/05/2017 01:30:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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