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Audited Summary Consolidated Financial Statements for the year ended 31 March 2018
LEWIS GROUP LTD
Registration number: 2004/009817/06
Share code: LEW
ISIN: ZAE000058236
Bond code: LEW01
Bond ISIN No. ZAG000110222
AUDITED SUMMARY CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2018
HIGHLIGHTS
Merchandise sales up 9.9% to R2.9 billion
Gross profit down margin 41.4%
Debtors costs reduced by 10.1%
Operating cost growth limited to 3.3%
Total dividend maintained at 200 cents
HEPS down 24.3% to 302.6 cents
Balance sheet ungeared
Acquired UFO
C0MMENTARY
TRADING AND FINANCIAL PERFORMANCE
Lewis Group continues to show a recovery in performance, with improving merchandise sales, tight expense
control and lower debtor costs supported by an overall strong financial position. However, a decline in other
revenue has impacted the group's profitability for the year.
Merchandise sales increased by 9.9% over the prior year, benefiting from the inclusion of United Furniture
Outlets (UFO) for the two months since acquisition. Excluding the sales from UFO, the group's merchandise
sales grew by 7.3%. Comparable store sales grew by 10.1%. Stores outside South Africa contributed 22.5%
(2017: 24.1%) of merchandise sales.
Credit sales increased by 10.7% and cash sales by 8.2%. Group credit sales accounted for 65.7%
(2017: 65.2%) of total sales.
After declining by 3.2% for the first half, revenue increased by 1.8% in the second half to show a year-on-year
decline of 0.6%. The decline was mainly due to lower credit sales in prior years which limited annuity income as
well as the implementation of the prescribed maximum credit life insurance rates in August 2017.
The group's gross profit margin at 41.4% (2017: 42.4%) remains at the upper end of management's target range
of 38% to 42%.
Operating costs, excluding debtor costs, were contained below inflation, with an increase of only 3.3%, which
was well below the growth in sales. Marketing and promotional costs increased to support sales growth.
The decline in other revenue impacted the group's operating margin which contracted from 10.1% to 6.8%,
within management's guided range.
Investment income net of finance costs improved significantly, reflecting a gain of R13.2 million this year
compared to a charge of R43.5 million last year owing to the deployment of the excess cash invested in
Monarch Insurance to reduce debt levels.
Headline earnings declined by 26.5% to R260.5 million (2017: R354.5 million) with headline earnings per share
24.3% lower at 302.6 cents (2017: 399.5 cents).
The balance sheet is ungeared following the repayment of R1.5 billion in borrowings over the past 18 months.
The group's sound financial position is confirmed by the increase in the net asset value per share from
6 127 cents to 6 534 cents.
The group remains highly cash generative. Cash and cash equivalents totalled R579.6 million at year end after
acquiring UFO and share repurchases.
The group has maintained the final dividend at 100 cents per share, bringing the total dividend for the year to
200 cents per share.
DEBTOR MANAGEMENT
Debtor costs declined by 10.1% over the prior period as collection rates improved to 74.9% (2017: 73.8%) in the
stabilising credit environment. Debtor costs as a percentage of net debtors decreased from 19.1% last year to
17.5%. The number of satisfactory paid customers at 68.4% is consistent with last year's 68.5%. The impairment
provision increased from 28.0% in 2017 to 29.6% in 2018.
INTEGRATION OF UNITED FURNITURE OUTLETS
UFO is a cash retailer of luxury household furniture to the higher income market, with its main store presence
in Gauteng. The acquisition allows the group to diversify its target market and access higher income customers
while increasing the cash-to-credit sales mix. The business is scalable with the potential to expand across South
Africa and into the neighbouring countries.
The integration has been successfully completed with the operational management team being retained which
ensures continuity in the business. A new bedding range has been developed which will benefit from the
group's buying power. In the year ahead, 5 to 10 UFO stores are expected to open, subject to the availability
of space in upmarket shopping malls.
RETAIL STORE FOOTPRINT
Following the acquisition of 31 UFO stores and the net closure of 19 stores across the Lewis and Beares brands,
the group's store network totalled 773 at year end. This includes 110 stores in the neighbouring countries of
Botswana, Lesotho, Namibia and Swaziland. Lewis continues to open smaller format stores which now account
for 212 of the brand's 499 stores.
LAUNCH OF HOME SHOPPING
The group subsequent to the year-end entered the home shopping market with the launch of INspire, an
omni-channel retail offering to be marketed through outbound call centres, agents and online shopping at
www.inspire.co.za. INspire has a offering across the merchandise categories of linen, bedding, tableware,
cookware and small electrical appliances. The strategy is to attract customers in the LSM 4 - 8 categories and
to extend the group's reach in urban areas.
SHARE REPURCHASE PROGRAMME
The group repurchased 5.4 million shares during the reporting period, at an average price of R30.24 per share.
Under the current mandate granted by shareholders, the group is able to repurchase a further 2.3 million shares.
OUTLOOK
Management expects the sales momentum to continue into the new financial year. The favourable outcome
of the clothing industry court challenge with regard to the affordability assessment regulations of the National
Credit Regulator (NCR) will benefit credit sales. Prospective creditworthy self-employed and informally
employed customers who were not able to supply payslips or bank statements are no longer required to
provide this level of documentary proof of income.The group will provide credit to these customers in a
responsible manner.
The UFO acquisition is central to the group's strategy to diversify across market segments and retail channels.
The group plans to open a net 15 stores across all brands in the year ahead, while continuing to close marginal
stores in the Lewis brand.
The board welcomed the results of two long-standing legal cases after year end, reducing the group's
regulatory risk profile and improving certainty. In the first case the court ruled in Lewis' favour regarding
an appeal by the NCR in relation to the issues of club fees and extended warranties. In the second case a
settlement was reached in the matter between the NCR and Lewis Stores in relation to loss of employment
and disability insurance.
DIVIDEND DECLARATION
Notice is hereby given that a final gross cash dividend of 100 cents per share in respect of the year ended
31 March 2018 has been declared payable to holders of ordinary shares. The number of shares in issue as of
the date of declaration is 95 116 220. The dividend has been declared out of income reserves and is subject to
a dividend tax of 20%. The dividend for determining the dividend tax is 100 cents and the dividend tax payable
is 20 cents for shareholders who are not exempt. The net dividend for shareholders who are not exempt will
therefore be 80 cents. The dividend tax rate may be reduced where the shareholder is tax resident in a foreign
jurisdiction which has a Double Tax Convention with South Africa and meets the requirements for a reduced
rate. The company's tax reference number is 9551/419/15/4.
The following dates are applicable to this declaration:
Last date of trade "cum" dividend Tuesday 17 July 2018
Date trading commences "ex" dividend Wednesday 18 July 2018
Record date Friday 20 July 2018
Date of payment Monday 23 July 2018
Share certificates may not be dematerialised or rematerialised between Wednesday 18 July 2018 and Friday
20 July 2018, both days inclusive.
For and on behalf of the board
Hilton Saven Johan Enslin
Independent Non-executive Chairman Chief executive officer
Cape Town
23 May 2018
External Auditor's Opinion
These summary consolidated financial statements for the year ended 31 March
2018 have been audited by PricewaterhouseCoopers Inc., who expressed an
unmodified opinion thereon. The auditor also expressed an unmodified opinion on
the annual financial statements from which these summary consolidated financial
statements were derived.
A copy of the auditor's report on the summary financial statements and of the
auditor's report on the annual consolidated financial statements are available for
inspection at the company's registered office, together with the financial statements
identified in the respective auditor's reports.
The auditor's report does not necessarily report on all of the information contained in
this announcement. 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 from the
issuer's registered office.
SUMMARY CONSOLIDATED FINANCIAL STATEMENTS
INCOME STATEMENT
FOR THE YEAR ENDED 31 MARCH 2018
2018 2017
Audited Restated
Notes Rm Rm
Revenue 5 556.8 5 592.1
Merchandise sales 6 2 865.0 2 607.9
Other revenue 2 691.8 2 984.2
Finance charges and initiation fees earned 1 361.6 1 451.8
Insurance revenue 671.0 822.3
Ancillary services 659.2 710.1
Cost of merchandise sales 6 (1 677.8) (1 501.0)
Operating costs (3 499.7) (3 527.0)
Debtor costs 2.2 (957.3) (1 065.5)
Employment costs (1 059.1) (987.0)
Occupancy costs (373.2) (370.8)
Administration and IT (328.8) (318.4)
Transport and travel (205.0) (202.8)
Marketing (246.6) (222.0)
Depreciation and amortisation (85.9) (90.1)
Other operating costs (243.8) (270.4)
Operating profit before investment income 379.3 564.1
Investment income 3.2 62.4 104.9
Profit before finance costs 441.7 669.0
Net finance costs (49.2) (148.4)
Interest paid (87.6) (174.3)
Interest received 38.9 39.4
Forward exchange contracts (0.5) (13.5)
Profit before taxation 392.5 520.6
Taxation 7 (128.4) (163.1)
Net profit attributable to ordinary shareholders 264.1 357.5
Earnings per share (cents) 306.8 402.9
Diluted earnings per share (cents) 301.3 398.6
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2018
2018 2017
Audited Restated
Rm Rm
Net profit for the year 264.1 357.5
Items that may be subsequently reclassified to income statement:
Movement in other reserves 9.9 (2.4)
Fair value adjustment to available-for-sale investments 22.8 9.6
Disposal of available-for-sale investments (1.3) (0.2)
Foreign currency translation reserve (11.6) (11.8)
Items that may not be subsequently reclassified to income statement:
Retirement benefit remeasurements 42.6 1.2
Other comprehensive income 52.5 (1.2)
Total comprehensive income for the year attributable
to equity shareholders 316.6 356.3
EARNINGS AND DIVIDENDS PER SHARE
FOR THE YEAR ENDED 31 MARCH 2018
2018 2017
Audited Restated
Rm Rm
Weighted average number of shares
Weighted average 86 073 88 730
Diluted weighted average 87 670 89 699
Headline earnings
Attributable earnings 264.1 357.5
Profit on disposal of fixed assets (2.4) (1.6)
Profit on disposal of available-for-sale investments (1.2) (0.2)
Gain on acquisition of Beares - (1.2)
Headline earnings 260.5 354.5
Earnings per share
Earnings per share (cents) 306.8 402.9
Diluted earnings per share (cents) 301.3 398.6
Headline earnings per share
Headline earnings per share (cents) 302.6 399.5
Diluted headline earnings per share (cents) 297.1 395.2
Dividends per share
Dividends paid per share
Final dividend 2017 (2016) (cents) 100.0 302.0
Interim dividend 2018 (2017) (cents) 100.0 100.0
(cents) 200.0 402.0
Dividends declared per share
Interim dividend 2018 (2017) (cents) 100.0 100.0
Final dividend 2018 (2017) (cents) 100.0 100.0
(cents) 200.0 200.0
BALANCE SHEET
AS AT 31 MARCH 2018
2018 2017
Audited Restated
Notes Rm Rm
Assets
Non-current assets
Property, plant and equipment 301.8 343.5
Trademarks 117.8 66.2
Goodwill 187.6 5.5
Deferred taxation 10.9 48.9
Retirement benefit asset 91.1 55.0
Financial assets - insurance investments 3.1 471.0 455.9
1 180.2 975.0
Current assets
Inventories 579.7 447.7
Trade and other receivables 2.1 4 068.9 4 225.8
Reinsurance assets 3.3 - 152.2
Insurance premiums in advance 75.6 403.2
Taxation 136.5 181.1
Financial assets - insurance investments 3.1 135.4 294.9
Cash-on-hand and deposits 608.4 788.6
5 604.5 6 493.5
Total assets 6 784.7 7 468.5
Equity and liabilities
Capital and reserves
Share capital and premium 425.0 588.5
Treasury shares (480.2) (480.2)
Other reserves 42.6 6.2
Retained earnings 5 461.1 5 325.9
5 448.5 5 440.4
Non-current liabilities
Long-term interest-bearing borrowings 4 - 700.0
Deferred taxation 121.0 89.0
Retirement benefit liability 89.8 101.7
210.8 890.7
Current liabilities
Trade and other payables 417.0 271.3
Reinsurance and insurance liabilities 3.4 176.8 618.8
Short-term interest-bearing borrowings 4 531.6 247.3
1 125.4 1 137.4
Total equity and liabilities 6 784.7 7 468.5
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2018
2018 2017
Audited Restated
Rm Rm
Share capital and premium
Opening balance 588.5 588.5
Cost of own shares acquired (163.5) -
425.0 588.5
Treasury shares
Opening balance (480.2) (496.4)
Share awards to employees - 16.2
(480.2) (480.2)
Other reserves
Opening balance 6.2 27.5
Other comprehensive income for the year
Fair value adjustments of available-for-sale investments 22.8 9.6
Disposal of available-for-sale investments recognised (1.3) (0.2)
Foreign currency translation reserve (11.6) (11.8)
Share-based payment 26.5 (4.0)
Transfer of share-based payment reserve to retained earnings
on vesting - (14.9)
42.6 6.2
Retained earnings
Opening balance 5 325.9 5 325.4
Net profit attributable to ordinary shareholders 264.1 357.5
Distribution to shareholders (171.5) (356.9)
Transfer of share-based payment reserve to retained income
on vesting - 14.9
Share awards to employees - (16.2)
Retirement benefit remeasurements 42.6 1.2
5 461.1 5 325.9
Balance as at 31 March 5 448.5 5 440.4
CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 MARCH 2018
2018 2017
Audited Restated
Notes Rm Rm
Cash flow from operating activities
Cash flow from trading 606.3 686.0
Operating profit before investment income 379.3 564.1
Adjusted for:
Share-based payments 26.5 (4.0)
Depreciation and amortisation 85.9 90.1
Movement in debtors impairment provision 58.9 27.0
Movement in other provisions 47.8 1.1
Other movements 7.9 7.7
Changes in working capital: 101.9 428.8
(Increase)/decrease in inventories (27.3) 13.2
Decrease in trade and other receivables 91.8 322.8
Increase in trade payables (0.4) (2.9)
Decrease in insurance premiums in advance 327.6 782.2
Decrease in reinsurance asset 152.2 245.1
Decrease in reinsurance and insurance liabilities (442.0) (931.6)
Cash generated from operations 708.2 1 114.8
Interest received 99.5 144.0
Interest paid (88.1) (187.8)
Taxation paid (58.5) (254.8)
661.1 816.2
Cash utilised in investing activities
Net disposals of insurance business investments 176.0 931.1
Purchase of insurance investments (81.5) (2 253.8)
Disposals of insurance investments 257.5 3 184.9
Acquisition of property, plant and equipment (44.4) (61.3)
Purchase of businesses 9 (234.6) (107.6)
Proceeds on disposal of property, plant and equipment 12.4 7.6
(90.6) 769.8
Cash flow from financing activities
Dividends paid (171.5) (356.9)
Repayments of borrowings (422.2) (1 050.0)
Purchase of own shares (163.5) -
(757.2) (1 406.9)
Net (decrease)/increase in cash and cash equivalents (186.7) 179.1
Cash and cash equivalents at the beginning of the year 766.3 587.2
Cash and cash equivalents at the end of the year 579.6 766.3
NOTES TO THE SUMMARY CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2018
1. BASIS OF REPORTING
The summary consolidated financial statements are prepared in accordance with the requirements of the
JSE Limited (JSE) for summary financial statements, and the requirements of the Companies Act applicable to
summary financial statements. The JSE requires summary financial statements to be prepared in accordance with
the framework concepts and the measurement and recognition requirements of International Financial Reporting
Standards (IFRS) and 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
consolidated 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 financial statements are a summary of the group's audited annual financial statements for the year ended
31 March 2018. The audited annual financial statements were prepared by the group's Finance Department under
the supervision of Mr LA Davies CA(SA) and Mr J Bestbier CA(SA). A copy of the full set of the audited financial
statements is available for inspection at the company's registered office.
2018 2017
Audited Audited
Rm Rm
2. TRADE AND OTHER RECEIVABLES
2.1 Trade receivables
Instalment sale and loan receivables 5 997.0 6 107.1
Contractually due within 12 months 2 325.9 2 368.6
Contractually due after 12 months 3 671.1 3 738.5
Unearned provisions (519.4) (525.9)
Provision for unearned maintenance income (309.1) (320.0)
Provision for unearned finance charges and unearned
initiation fees (210.3) (205.9)
Net instalment sale and loan receivables 5 477.6 5 581.2
Provision for impairment (1 619.5) (1 560.6)
3 858.1 4 020.6
Other receivables 210.8 205.2
4 068.9 4 225.8
Debtors' impairment provision as % of net debtors (%) 29.6 28.0
Amounts due from instalment sale and loan receivables after one year are reflected as current, as they form part of
the normal operating cycle. The credit terms of instalment sale and loan receivables range from six to 36 months.
Credit risk of trade receivables
Credit risk is the risk of suffering financial loss, should any of the group's customers and counterparties fail to
fulfil their contractual obligations with the group. The main credit risk faced is that customers will not meet their
payment obligations in terms of the sale agreements concluded.
Credit granting
The group has developed advanced credit-granting systems to properly assess the customer. The credit underwriting
process flows through the following stages:
- Credit scoring: this involves the gathering of appropriate information from the client, use of credit bureaus and
third parties such as employers. These input variables are run through the various credit scorecards. Lewis deals
with its new customers and existing customers differently when credit scoring takes place.
The process differs as follows:
- for new customers, application risk scorecards predict the risk with the emphasis for such an evaluation on
information from credit bureaus and third-party information.
- for existing customers, behavioural scorecards have been developed to assess the risk through predictive
behaviour with the emphasis on the customer's payment record with Lewis, bureau and other information
being considered.
- Assessing client affordability: this process involves collecting information regarding the customer's income levels,
expenses and current debt obligations. Lewis has its own priority expense model based on surveys conducted
with customers in addition to the National Credit Regulator's expense table.
- Determining the credit limit for the customer: the customer's risk score determined by the scorecard together
with the expense assessment and outstanding obligations are used to calculate a credit limit within the customer's
affordability level.
The credit granting systems enable the group to determine its appetite for risk. In determining the acceptable
level of risk, the potential loss is weighed up against the revenue potential using the predictive behavioural
models inherent in the credit-granting system. The group monitors any variances from the level of risk that has
been adopted and adjusts the credit-granting process on a regular basis.
The group manages its risk effectively by assessing the customer's ability to service the proposed monthly instalment.
However, collateral exists in that ownership of merchandise is retained until the customer settles the account in full.
Impairment Provision
The customers payment profile is managed using payment ratings. Payment ratings are determined on an individual
customer level and aggregated over all the customer's sub-accounts. Payment ratings measure the customers
actual payments received over the lifetime of the account relative to the instalments due in terms of the contract.
These payment ratings are used to categorise and report on customers at the store level to follow up the slow
paying and non-performing customers. There are 13 payment rating categories a customer can fall into following
the monthly assessment.
The payment rating is integral to the calculation of the debtor's impairment provision. Impaired receivables
are carried at their net present value of the estimated future cash flows from such accounts, discounted at the
original effective interest rate implicit in the credit agreement. Estimated future cash flows are projected utilising
the payment ratings.
The management of the debtor book and the determination of the impairment provision utilises the payment rating
as a leading indicator. Past customer behaviour as reflected in the payment ratings determine future expected
collections for the purpose of the impairment provision. The impairment provision being the result of the payment
ratings is a key indicator to the ultimate cash recovery expected for each individual customer.
The impairment calculation is performed on a monthly basis taking into account the payment behaviour of
the debtors book having regard to the payment rating and age of the debtors account. Various profiles of the
impairment provision are prepared monthly. The credit risk systems (the system that monitors the customers
payment behaviour post credit granting) also produces customer payment data. The aforementioned and the
key indicators are monitored by senior management to analyse and assess the state of the debtors book. Daily
collection statistics are also collated to identify trends early.
The key indicators that are reviewed include, inter alia, the following:
- number of satisfactorily paid customers. The key operational objective is to have as many satisfactory paid
customers as possible as it is the group's expectation that these customers will settle their accounts, albeit
that certain categories of satisfactory paid customers may settle past their contractual term. Satisfactory paid
customers are the source of future repeat business which is one of the core strengths of the business model.
- the level of impairment provision applicable to the payment rating and the trend thereof. This is correlated with
collection statistics and customer payment data produced by the credit risk systems.
Contractual Arrears
The key aspect of the arrear calculation is Lewis's policy not to reschedule arrears nor to amend the terms of the
original contract. In other words, the contractual arrears calculated is the actual arrears in terms of the originally
signed agreement.
From the onset of the agreement, contractual arrears is calculated by comparing payments made life to date with
the originally calculated instalments due life to date, causing a customer who is paying less than the required
contracted instalment to immediately fall into arrears. Once the customer exceeds the term of the agreement by
paying less than the required contracted instalments, the full balance owing will be in arrear. The group does not
consider arrears the leading indicator, but rather payment ratings for the reasons mentioned above.
Combined impairment and contractual arrears table
The table reflects the following:
- a summary of the four main groupings of payment ratings describing payment behaviour. The payment ratings categorise individual customers into
13 payment categories. For purposes of this table, the payment ratings have been summarised into four main groupings.
- for each of the four main groupings of payment ratings, the following is disclosed:
- Number of customers.
- Gross receivables. Note that unearned provisions have not been allocated to this amount.
- Impairment provision allocated to each grouping.
- Contractual arrears for each grouping have been categorised by number of instalments in arrears.
MARCH 2018 Number of Gross Impairment Total Instalments in arrears
customers receivables provision arrears 1 2 3 4 >4
Total R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000
Satisfactory paid No 401 183 3 473 979 18 039 549 506 155 673 105 593 77 633 58 003 152 604
Customers who have paid 70% or more of amounts due over % 68.4% 57.9% 1.1%
the contract period. The provision in this category results from
in duplum provision.
Slow payers No 51 311 515 597 196 021 308 975 37 594 36 230 33 546 30 741 170 864
Customers who have paid 65% to 70% of amounts due over the % 8.7% 8.6% 12.1%
contract period. The provision in this category ranges from 14%
to 67% of amounts due and includes an in duplum provision.
Non-performing accounts No 45 940 555 813 262 519 356 918 34 573 32 780 30 928 29 308 229 329
Customers who have paid between 55% and 65% of amounts % 7.8% 9.3% 16.2%
due over the contract period. The provision in this category
ranges from 25% to 79% of amounts due.
Non-performing accounts No 88 430 1 451 638 1 142 920 1 062 130 67 452 66 131 64 513 62 792 801 242
Customers who have paid 55% or less of amounts due over the % 15.1% 24.2% 70.6%
contract period. The provision in this category ranges from 35%
to 100% of amounts due.
Total 586 864 5 997 027 1 619 499 2 277 529 295 292 240 734 206 620 180 844 1 354 039
Unearned provisions (519 449)
Net instalment sale and loan receivables 5 477 578 29.6%
MARCH 2017 Number of Gross Impairment Total Instalments in arrears
customers receivables provision arrears 1 2 3 4 >4
Total R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000
Satisfactory paid No 422 070 3 507 921 27 609 596 271 162 822 114 395 86 010 65 285 167 759
Customers who have paid 70% or more of amounts due over % 68.5% 57.4% 1.8%
the contract period. The provision in this category results from
in duplum provision.
Slow payers No 52 078 538 715 192 890 321 871 37 240 36 064 33 849 31 573 183 145
Customers who have paid 65% to 70% of amounts due over the % 8.4% 8.9% 12.4%
contract period. The provision in this category ranges from 13%
to 72% of amounts due and includes an in duplum provision.
Non-performing accounts No 47 981 576 347 258 823 366 979 34 413 32 902 31 201 29 727 238 736
Customers who have paid between 55% and 65% of amounts % 7.8% 9.4% 16.6%
due over the contract period. The provision in this category
ranges from 24% to 86% of amounts due.
Non-performing accounts No 94 118 1 484 119 1 081 237 1 057 905 67 299 66 090 64 564 63 075 796 877
Customers who have paid 55% or less of amounts due over the % 15.3% 24.3% 69.2%
contract period. The provision in this category ranges from 34%
to 100% of amounts due.
Total 616 247 6 107 102 1 560 559 2 343 026 301 774 249 451 215 624 189 660 1 386 517
Unearned provisions (525 900)
Net instalment sale and loan receivables 5 581 202 28.0%
An in duplum provision of R 18.8 million (2017: R 29.1 million) has been provided.
Interest rate risk
Interest rates charged to customers are fixed at the date the contract is entered into. Consequently, there is no
interest rate risk associated with these contracts during the term of the contract.
The average effective interest rate on instalment sale and loan receivables is 22.7% (2017: 22.5%) and the average
term of the sale is 32.8 months (2017: 32.6 months).
Fair value
In terms of paragraph 29(a) of IFRS 7, disclosure of fair value is not required as trade receivables form part of a
normal operating cycle and the carrying value of trade receivables is a reasonable approximation of fair value.
2018 2017
Audited Audited
Rm Rm
2.2 Debtor costs
Bad debts, repossession losses and bad debt recoveries 898.4 1 038.5
Movement in impairment provision 58.9 27.0
Closing balance 1 619.5 1 560.6
Opening balance (1 560.6) (1 533.6)
957.3 1 065.5
Debtor costs as a % of net instalment sale and loan receivables 17.5% 19.1%
3. INSURANCE
3.1 Insurance investments
Financial assets - insurance investments
Listed investments
Fixed income securities - available-for-sale 471.0 455.9
Unlisted Investments
Money market - available-for-sale 135.4 294.9
606.4 750.8
Analysed as follows:
Non-current 471.0 455.9
Current 135.4 294.9
606.4 750.8
Movement for the year
Beginning of the year 750.8 1 668.5
Additions to investments 81.5 2 253.8
Disposals of investments (255.7) (3 184.6)
Fair value adjustment 29.8 13.1
End of the year 606.4 750.8
A register of listed investments is available for inspection at the company's registered office.
Fair value hierarchy
The following table presents the assets recognised and subsequently measured at fair value:
Level 2 Total
Rm Rm
2018
Available-for-sale assets:
Insurance investments:
Fixed income securities 471.0 471.0
Money market 135.4 135.4
606.4 606.4
2017
Available-for-sale assets:
Insurance investments:
Fixed income securities 455.9 455.9
Money market 294.9 294.9
750.8 750.8
The categorisation of the valuation techniques used to value the assets at fair value are as set out in IFRS 13.
2018 2017
Audited Audited
Rm Rm
3.2 Investment income
Interest - insurance business 60.7 104.6
Realised gain on disposal of insurance investments 1.7 0.3
62.4 104.9
3.3 Reinsurance assets
Reinsurer's share of unearned premiums - 123.8
Opening balance 123.8 364.0
Recognised in income statement (100.6) (240.2)
Cessation of reinsurance (23.2) -
Reinsurer's share of insurance premiums - 28.4
Opening balance 28.4 33.3
Recognised in income statement (13.5) (4.9)
Cessation of reinsurance (14.9) -
Total reinsurance assets - 152.2
The reinsurance arrangements with Constantia Insurance Company Limited were terminated with effect from
6 April 2018. Related reinsurance assets and liabilities were derecognised at the balance sheet date. The
reinsurance arrangements conducted during the financial year are fully reflected in the income statement.
2018 2017
Audited Audited
Rm Rm
3.4 Insurance and reinsurance liabilities
Unearned Premiums 133.2 412.1
Opening balance 412.1 1 090.8
Income statement movement (278.9) (678.7)
Due to reinsurers 0.9 0.3
Other insurance and reinsurance liabilities 42.7 206.4
Opening balance 206.4 361.2
Income statement movement (125.6) (154.8)
Cessation of reinsurance (38.1) -
Total reinsurance and insurance liabilities 176.8 618.8
Total insurance liabilities 175.9 487.7
Total reinsurance liabilities 0.9 131.1
4. BORROWINGS, BANKING FACILITIES AND CASH
Interest-bearing borrowings
Long-term
Banking facilities - 700.0
Short-term
Banking facilities 502.8 225.0
Bank overdrafts 28.8 22.3
531.6 947.3
Cash on hand and deposits (608.4) (788.6)
Net borrowings (76.8) 158.7
Unutilised facilities
Banking facilities 1 618.4 2 116.3
Domestic Medium Term Note Program 2 000.0 2 000.0
3 618.4 4 116.3
Available facilities 3 541.6 4 275.0
Interest rate profile
Interest rate profile of borrowings is as follows:
Bank borrowings at interest rates linked to 3 month JIBAR. The weighted
average interest rate at the end of the reporting period is 9.1 % (2017: 9.6%) 502.8 925.0
502.8 925.0
Cash and cash equivalents
Cash on hand and deposits 608.4 788.6
Bank overdrafts (28.8) (22.3)
579.6 766.3
Capital management
Net borrowings (76.8) 158.7
Shareholder's equity 5 448.5 5 440.4
Gearing ratio (1.4%) 2.9%
5. REPORTABLE SEGMENTS
Best Home
Lewis and Electric Beares UFO(1) Group
Primary Rm Rm Rm Rm Rm
2018
Revenue 3 950.2 732.5 808.1 66.0 5 556.8
Operating profit before investment income 180.4 121.1 82.0 (4.2) 379.3
Operating margin (%) 4.6 16.5 10.1 (6.4) 6.8
Segment assets 3 115.0 575.2 637.7 110.0 4 437.9
2017 (Restated)
Revenue 4 137.0 725.4 729.7 - 5 592.1
Operating profit before investment income 423.5 111.0 29.6 - 564.1
Operating margin (%) 10.2 15.3 4.1 - 10.1
Segment assets 3 356.6 578.6 539.3 - 4 474.5
(1) Reflects only the two months trading since its acquisition by the group.
South
Africa Namibia BLS* Group
Geographical Rm Rm Rm Rm
2018
Revenue 4 551.2 497.6 508.0 5 556.8
2017 (Restated)
Revenue 4 559.0 526.3 506.8 5 592.1
* Botswana, Lesotho and Swaziland.
2018 2017
Audited Restated
Rm Rm
6. GROSS PROFIT
Merchandise sales 2 865.0 2 607.9
Cost of Merchandise Sales (1 677.8) (1 501.0)
Merchandise Gross Profit 1 187.2 1 106.9
Gross profit percentage (%) 41.4 42.4
Restatement
During the year, the group reconsidered its accounting policy with respect to the treatment of advertising rebates.
The group's advertising rebates result from the process of negotiating the best product price with the supplier
and therefore the group does not provide distinct goods or services to its suppliers in exchange for the rebates.
As a result of reconsidering the accounting policy, the group concluded that it previously incorrectly classified
these rebates, net of advertising expenses. It was concluded that the group's inventory accounting policy should
be changed in accordance with "IAS 8: Accounting policies, changes in accounting estimates and errors".
2018 2017 2016
Effect of Effect of Effect of
change change change
Rm Rm Rm
Impact on balance sheet
Inventories (5.7) (6.9) (6.1)
Retained earnings (4.1) (4.9) (4.4)
Deferred tax liabilities (1.6) (2.0) (1.7)
Impact on income statement
Cost of sales (20.8) (21.4)
Other operating expenses - Marketing 19.8 22.1
Attributable profit for the year (0.7) (0.5)
Total comprehensive income for the year (0.7) (0.5)
Basic earnings per share (cents) (0.8) (0.6)
Diluted earnings per share (cents) (0.7) (0.5)
Basic headline earnings per share (cents) (0.8) (0.6)
Diluted headline earnings per share (cents) (0.8) (0.6)
Impact on statement of cash flows
Cash flow from trading (1.2) (1.6)
Changes in working capital 1.2 1.6
Net movement in cash and cash equivalents - -
2018 2017
Audited Restated
Rm Rm
7. TAXATION
Taxation charge
Normal taxation
Current year 93.5 100.3
Prior year (0.6) 0.8
Deferred taxation
Current year 29.8 61.1
Prior year (6.8) 0.9
Withholding tax 12.5 -
Taxation per income statement 128.4 163.1
Tax rate reconciliation
Profit before taxation 392.5 520.6
Taxation calculated at a tax rate of 28% (2017: 28%) 109.9 145.8
Differing tax rates in foreign countries 4.5 6.3
Disallowances 22.8 14.5
Exemptions (13.9) (5.2)
Prior years (7.4) 1.7
Withholding tax 12.5 -
Taxation per income statement 128.4 163.1
Effective tax rate 32.7% 31.3%
8. REGULATORY MATTERS
Referrals by National Credit Regulator to National Consumer Tribunal
First referral
In July 2015, the National Credit Regulator ("NCR") referred both Lewis Stores ("Lewis") and Monarch to the
National Consumer Tribunal ("NCT") for alleged breaches of the National Credit Act ("NCA") in relation to the sale
of loss of employment insurance and disability cover to customers who were pensioners or self-employed persons.
Following the notification of the referral, an internal investigation identified approximately 15% of cases where loss of
employment insurance policies were invalidly sold to pensioners and self-employed customers as a result of human
error at store level. Lewis is currently refunding the premiums and interest totalling approximately R67.7 million to
the affected customers. To date, Lewis has reimbursed approximately 93% of amounts due.
In September 2016, the NCT delivered its judgement in the abovementioned matter. The main findings of the
NCT were:
1. Dismissed the NCR's application against Monarch;
2. Found that the offering of loss of employment insurance by Lewis to pensioners or self-employed consumers
was unreasonable and therefore constituted prohibited conduct under the NCA;
3. Found that the offering of disability insurance by Lewis to pensioners would be unreasonable, unless further
enquiry and clarification was obtained and recorded, which makes it clear that such consumers requested such
insurance cover;
4. Found that the offering of disability insurance by Lewis to self-employed persons was not unreasonable;
5. Found that there is no clear basis on which the unreasonableness of the disability and loss of employment
insurance has the effect of deceiving consumers;
6. Ordered that an independent audit be done of all credit agreements entered into by Lewis since 2007, for purposes
of determining whether any pensioners or self-employed consumers were sold loss of employment insurance
and whether any pensioners were sold disability insurance. If so, Lewis is to reimburse such consumers with any
premiums and any interest charged on their accounts as a result of such insurance premiums. Consumers who
no longer have open accounts with Lewis are to be traced and reimbursed. On completion of the independent
audit, the NCT will set the matter down for hearing on the quantum of the administrative penalty to be imposed.
Lewis appealed the judgement in October 2016. As a consequence of the appeal, discussions between Lewis and the
NCR took place and the parties reached agreement that they would seek an order by consent from the High Court
setting aside and replacing the judgement of the NCT with an order from the High Court. On 2 May 2018, at the
request of the parties the High Court set aside the order by the NCT and substituted the order with the following:
1. Lewis contravened the NCA through the sale of loss of employment insurance to consumers who are retired
or self-employed;
2. Save insofar as is permitted by law, Lewis shall not offer or demand that any pensioner or self-employed consumer
pay for loss of employment insurance;
3. Lewis shall, within 30 calendar days of the order, pay an amount of R5 000 000 (five million Rand) as a fine;
4. Independent auditors will review PWC's report of factual findings on Lewis' criteria which identified effected
customers who are to be refunded. An audit will only be required if the review concludes that there were material
irregularities in the methodology adopted by PWC.
5. Lewis will complete the repayment of the premiums paid by the retired and self-employed consumers in respect
of Loss of Employment Insurance policies in accordance with the PWC's report or any subsequent audit as
referred to in paragraph (4) above and will provide the Regulator with the detail of such repayments, including
the names of consumers.
6. Lewis will, in respect of all future credit agreements concluded with pensioners, take reasonable steps to establish
that such pensioner has an insurable interest in respect of the cover provided under any policy offered by Lewis.
7. No order as to costs.
Second referral
In April 2016, the NCR referred Lewis Stores to the NCT for alleged breaches of the NCA relating to club fees
and extended maintenance contracts charged to its customers. Lewis has opposed the second referral and filed a
comprehensive answering affidavit disputing the NCR's allegations. The second referral was heard by a tribunal of
the NCT on 6 April 2017.
On 5 June 2017, in a majority judgement, the NCT found that:
- The National Credit Act ("Act") does not prevent credit providers from offering the services of a club to consumers,
provided these services are not part of the "cost of credit". It was found that club fees charged by Lewis do not
form part of the cost of credit of any credit agreement between Lewis and its customers.
- The Act provides that Lewis may include the cost of an extended warranty as part of its fees and charges in its
credit agreements with consumers and does not prescribe the terms and conditions of the extended warranty
offered by Lewis to its consumers.
On 28 June 2017, the NCR filed a notice of appeal to the ruling and the appeal was heard on 17 April 2018 in the
High Court of South Africa (Gauteng Division).
On 30 April 2018, the High Court handed down judgement in Lewis' favour with regard to the appeal by the NCR.
The matter was dismissed with costs against the NCR. The NCR has one month from 30 April 2018 to apply to the
Supreme Court of Appeal, for special leave to appeal the judgement.
High Court summonses
In February 2016, Lewis was served with a summons issued in the name of 15 plaintiffs and in April 2016 a second
summons was served by 13 plaintiffs, all plaintiffs being existing or previous customers of Lewis. The summonses
were issued at the direction of Summit Financial Partners. The total quantum of both claims is R85 082 plus interest.
The plaintiffs' claims are for damages as a consequence of alleged breaches of the NCA in relation to delivery
charges and extended maintenance contracts. Lewis disputes liability on the merits and various other grounds and
is contesting the action on the basis of a procedural flaw.
In response, the plaintiffs brought an application for leave to amend their particulars of claim so as to deal with
the averments on the procedural matters. On 4 August 2017, the plaintiffs' application for leave to amend their
particulars of claim was dismissed, with a costs order being granted in Lewis' favour. As a consequence, the plaintiffs
have again sought to amend their particular claim, on 24 August 2017, to which Lewis objected. Accordingly the
plaintiffs launched a second application for leave to amend their particulars of claim. The second application will
be heard later this year on a date to be arranged with the High Court.
Section 165 of Companies Act
First demand
In May 2016, Mr David Woollam addressed a letter to the Lewis board of directors demanding that Lewis
commences with proceedings to declare Johan Enslin, Les Davies, David Nurek and Hilton Saven, delinquent
directors in accordance with the provisions of section 165 of the Companies Act. The directors of the Board of
Lewis, who had not been made the subject of the demand, considered the demand, and consulted the group's
attorneys. Having done so, the directors were satisfied that the demand of Mr Woollam was frivolous, vexatious
and of no merit and they resolved that Lewis launch proceedings in terms of section 165(3) of the Companies Act
to set the demand aside.
In October 2016, the Court handed down judgement in Lewis' favour and set aside, in terms of section 165(3) of
the Companies Act, Mr Woollam's demand and awarded Lewis costs against Mr Woollam. In November 2016,
Mr Woollam filed an application for leave to appeal the judgement. Woollam's application for leave to appeal was
refused by the Western Cape High Court. Woollam applied for special leave to appeal to the Supreme Court of
Appeal and leave to appeal was granted by the Supreme Court of Appeal on 23 March 2017.
On 29 January 2018, Mr Woollam withdrew his appeal before the Supreme Court of Appeal in relation to his first
demand in terms of Section 165(2) of the Companies Act.
Referral by Summit Financial Partners to National Consumer Tribunal
Summit Financial Partners ("Summit") alleged that delivery fees charged by Lewis is in contravention of Section 102
of the National Credit Act and lodged a complaint with the NCR. The NCR, after investigation, declined to refer
the matter to the NCT. The NCR has issued Summit with a Notice of Non-Referral with regard to the complaint.
Summit has decided to launch an application to self-refer the matter to the NCT. Lewis is opposing the application.
The NCT is still to finally confirm a date for the hearing of the application.
2018 2017
Audited Audited
Rm Rm
9. PURCHASE OF BUSINESSES
Trademarks 55.7 8.4
Goodwill 182.4 5.5
Property, plant and equipment 4.9 3.7
Inventory 116.4 23.2
Trade receivables - 73.1
Other receivables 5.4 -
Cash and cash equivalents 73.0 -
Short term borrowings (0.3) -
Taxation (8.2) -
Trade and other payables (93.5) (3.5)
Deferred tax (11.7) (1.6)
Gain on acquisition of Beares - (1.2)
Total consideration 324.1 107.6
Outflow of cash to acquire subsidiary, net of cash acquired
Cash consideration 324.1 107.6
Less: Cash balances acquired (73.0) -
Less: Deferred purchase consideration (16.5) -
Net outflow of cash - investing activities 234.6 107.6
Purchase of United Furniture Outlets (2018)
On 1 February 2018, Lewis Stores Proprietary Limited ("Lewis Stores"), a wholly-owned subsidiary of the group,
obtained control of United Furniture Outlets Proprietary Limited ("UFO"), a cash furniture retailer, by acquiring 100%
of the issued ordinary share capital and voting rights and all shareholders´ claims against UFO from the shareholders.
UFO is an independent, cash furniture retailer with a retail footprint of 31 stores. It sells a variety of furniture
including lounge, bedroom and dining room products. UFO is recognised as a luxury brand with a value offering
to the upper consumer spectrum, namely LSM 9-10+. The business was established in 2004 and currently more
than half of its stores are located in Gauteng.
The total acquisition consideration was a cash amount of R324.1 million.
The acquisition will enable Lewis Stores to achieve improved economies of scale and provide a platform to
penetrate new market sectors through a wider, more exclusive product range. The acquisition will diversify its
offering by increasing its exposure to cash furniture retailing and provide access to a higher income customer
market segment (LSM 9-10+). The UFO brand and business model is scalable and offers an opportunity to extend
the UFO footprint across South Africa and into neighbouring Southern African countries.
The goodwill arising on acquisition is attributable to current earnings and future earnings growth in the existing
business which are internally funded as a consequence of its cash retailing business model and diversification
benefits of a cash furniture retailer. As required by IFRS 3, the valuation of goodwill at date of acquisition does not
include the future opportunities to extend the UFO footprint across South Africa and into neighbouring Southern
African countries as a consequence of its acquisition by the group.
For the period 1 February 2018 to 31 March 2018, UFO had revenue of R66.0 million and earned an attributable
profit of R0.1 million and these results were consolidated into the group for the two months.
If UFO was consolidated from 1 April 2017, the group's annualised revenue would have increased by R444.5 million
and group annualised profit would have increased by R25.1 million.
Purchase of Ellerines and Beares businesses (2017)
In the prior period, the group's subsidiaries in Namibia and Swaziland have acquired on 8 May 2016 and 8 April 2016
respectively the businesses trading under the Ellerines and Beares brands from the relevant in-country subsidiaries
of Ellerines Services Proprietary Limited (subsidiary of Ellerines Furnishers Proprietary Limited in business rescue).
The businesses, which are individually and collectively immaterial, consisted of 26 stores, the Ellerines and Beares
brands, trade receivables, inventory and fixed assets. The purchase consideration was paid by cash and assumption
of liabilities. The stores will trade either under the Lewis or Beares brands.
10. NEW STANDARDS AND INTERPRETATIONS NOT YET EFFECTIVE
10.1 IFRS 9 Financial Instruments
IFRS 9 (Financial Instruments) replaces IAS 39 (Financial Instruments: Recognition and Measurement) and will become
effective for the group for the year ending 31 March 2019. The impact of IFRS 9 on the group will be in respect of:
- revised requirements for classification and measurement of financial instruments
- an expected credit loss impairment model replaces the incurred loss model under IAS 39.
With respect to classification and measurement of financial instruments, the group does not expect a significant
impact on the results and financial position, with regards to insurance investments.
With respect to the impairment of receivables in terms of IFRS 9, the group has the option to select the general
model which consists of three stages or the simplified model which consists of two stages to determine its expected
credit losses ("ECL") with regard to receivables. The group will adopt the simplified model which recognises the
expected credit losses over the lifetime of trade receivables on initial recognition. This eliminates the need to
calculate a 12 month ECL provision.
The IFRS 9 ECL impairment model is expected to increase the level of balance sheet impairments that are currently
held in terms of IAS 39. The adoption of the standard is also expected to impact the recognition of revenue.
Stage 2 receivables will not be materially affected and interest income will continue to be accounted for on the gross amount
of the receivable. However, credit impaired stage 3 receivables will be accounted for at the gross carrying amount
net of loss allowance (amortised cost), resulting in lower interest income which will be offset by the appropriately
lower impairment charge.
The group has established an implementation committee with representation from all relevant departments which reports
directly into the audit committee. The committee is focused on considering predictive cash flow models, impairment
methodologies, output validation, testing and analysis.
The impact of the IFRS 9 ECL requirements can only be reliably determined on the finalisation of the group's impairment
methodologies, forward-looking economic expectations and the conclusion of external audit procedures.
IFRS 9 does not require restatement of prior periods. An entity is only permitted to restate prior periods if it is able
to do so without the use of hindsight. Where prior periods are not restated, any difference between previously
reported carrying amounts and new carrying amounts at the beginning of the annual reporting period must be
recognised in opening retained earnings.
10.2 IFRS 15
IFRS 15 (Revenue from Contracts with Customers) replaces IAS 18 (Revenue) and will be effective for the group
for the year ending 31 March 2019. The current analysis indicates that the adoption of IFRS 15 is not expected to
have a significant impact on the group's results or financial position.
10.3 IFRS 16
IFRS 16 (Leases) replaces IAS 17 with effect from the year ending 31 March 2020. IFRS 16 will result in most leases
being recognised in the statement of financial position, as the distinction between operating and finance leases
has been removed. Under the new standard, an asset representing the right to use the leased item and a financial
liability, to pay rentals, will be recognised. The only exceptions are short-term and low-value leases.
The new standard will primarily affect the accounting for operating leases relating to retail stores.
As at the reporting date the group has non-cancellable operating lease commitments of R671.2 million.
The group has not yet determined the extent of the right of use asset nor the liability for future payments
and how this will affect profit and classification of cash flows.
10.4 IFRS 17
IFRS 17 which replaces IFRS 4, applies to insurance contracts and reinsurance contracts. The standard will apply to
the group for the year ending 31 March 2022. Management has not yet performed an assessment of the potential
impact of the implementation of this new standard.
11. RECLASSIFICATIONS TO THE CASH FLOW STATEMENT
The following reclassifications to the cash flow statement were made:
- movements in insurance and re-insurance premiums were incorrectly included in cash flows from trading.
These have been reclassified to changes in working capital under cash flow generated from operations in the
cash flow statement.
- bank overdrafts were incorrectly included as part of borrowings when it should have been part of cash and cash
equivalents. The bank overdrafts have been reclassified to cash and cash equivalents.
The effect of the above reclassifications are as follows:
2017
Effect of
change
Rm
Cash flow from trading 146.7
Changes in working capital (146.7)
Repayment of borrowings 22.3
Cash and cash equivalents (22.3)
KEY RATIOS
FOR THE YEAR ENDED 31 MARCH 2018
2018 2017
Operating efficiency ratios
Gross profit margin (%) 41.4 42.4
Operating profit margin (%) 6.8 10.1
Number of stores 773 761
Number of permanent employees (average) 8 093 8 619
Trading space (sqm) 258 463 248 271
Inventory turn 2.9 3.4
Current ratio 5.0 5.7
Credit ratios
Credit sales (%) 65.7 65.2
Debtor costs as a percentage of the net debtors (%) 17.5 19.1
Debtors' impairment provision as a percentage of net debtors (%) 29.6 28.0
Arrear instalments on satisfactory accounts
as a percentage of gross debtors (%) 9.2 9.8
Arrear instalments on slow-paying and
non-performing accounts as a percentage of gross debtors (%) 28.8 28.6
Credit applications decline rate (%) 37.1 38.7
Shareholder ratios
Net asset value per share (cents) 6 534 6 127
Gearing ratio (%) (1.4) 2.9
Dividend payout ratio (%) 70.2 54.8
Return on average equity (after-tax) (%) 4.9 6.6
Return on average capital employed (after-tax) (%) 4.8 6.7
Return on average assets managed (pre-tax) (%) 6.3 8.3
Notes:
1. All ratios are based on figures at the end of the year unless otherwise disclosed.
2. The net asset value has been calculated using 83 384 000 shares in issue (2017: 88 790 000).
3. Total assets exclude the deferred tax asset and the reinsurance asset.
Non-executive directors: Hilton Saven (Independent non-executive chairman), Fatima Abrahams,
Adheera Bodasing, Daphne Motsepe, Alan Smart, Duncan Westcott.
Executive directors: Johan Enslin (chief executive officer), Jacques Bestbier (chief financial officer)
Company secretary: Paul Croucher.
Transfer secretaries: Computershare Investor Services (Pty) Ltd; 7 Rosebank Towers, 15 Biermann
Ave, Rosebank, Johannesburg, 2196; PO Box 61051, Marshalltown, 2107.
Auditors: PricewaterhouseCoopers Inc.
Sponsor: UBS South Africa (Pty) Ltd.
Registered office: 53A Victoria Road, Woodstock, 7925.
Registration number: 2004/009817/06.
Share code: LEW
ISIN: ZAE000058236
These results are also available on our website: www.lewisgroup.co.za
Date: 23/05/2018 07:05:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
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