Rex True interim results December 2018
Revenue for the interim period increased by 13.9% to R361.9 million (2017: R317.7 million), gross profit rose 17.5% to R190.8 million (2017: R162.4 million), operating profit soared to R32.2 million (2017: R9.6 million), profit for the period skyrocketed to R37 million (2017: R8 million), while headline earnings per ordinary share jumped to 97.4 cents per share (2017: 38.8 cents per share).
A dividend on the 6% cumulative preference shares for the six months ended 31 December 2018 in the amount of R8 400 was declared by the board of directors on 14 December 2018 and was paid on 14 January 2019.
While the Queenspark strategy and initiatives are delivering the required result, management is cognisant of the difficult trading environment (including having regard to the recent recurrence of load-shedding in South Africa) and subdued economy.
Management however remains confident in the retail segment's future and in its ability to deliver sustainable growth and value creation for shareholders.
Rex True has the intention to develop the two undeveloped properties in the medium term, both situated in the Cape Town area, and is continuing to consider development options in this regard. One of the undeveloped properties has heritage significance. As a result, decisions regarding the development of the property have been delayed in order to consider the significance of the property in this regard and heritage guidelines more fully, whilst also ensuring that any development is sustainable and economically viable. Financing is also being carefully considered in relation to all development options.