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STEINHOFF INTERNATIONAL HOLDINGS LTD - INTERIM RESULTS

Release Date: 07/03/2000 08:46
Code(s): SHF
Wrap Text
STEINHOFF INTERNATIONAL HOLDINGS LTD
REGISTRATION NUMBER 98/03951/06

INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 1999
AN INTEGRATED GLOBAL LIFESTYLE SUPPLIER THAT MANUFACTURES, WAREHOUSES AND DISTRIBUTES HOUSEHOLD GOODS
CONSOLIDATED INCOME STATEMENT FOR THE SIX MONTHS ENDED 31 DECEMBER 1999 UNAUDITED PRO FORMA AUDITED SIX MONTHS SIX MONTHS TEN MONTHS ENDED ENDED ENDED
31 DEC 31 DEC 30 JUNE 1999 1998 1999
NOTE 1 %
R'000 R'000 CHANGE R'000
REVENUE 2 551 872 1 422 511 79 2 757 491 OPERATING INCOME
BEFORE DEPRECIATION 274 421 121 746 125 265 687 DEPRECIATION (43 296) (24 967) 73 (49 099) OPERATING INCOME
BEFORE FINANCE COSTS 231 125 96 779 139 216 588 NET FINANCE CHARGES (25 026) (13 348) 87 (26 565) NET INCOME BEFORE
TAXATION 206 099 83 431 147 190 023 TAXATION (10 802) (9 295) 16 (8 182) NET INCOME AFTER
TAXATION 195 297 74 136 163 181 841 SHARE OF ASSOCIATED COMPANIES' RETAINED
INCOME (952) 3 345 2 195 ATTRIBUTABLE TO OUTSIDE
SHAREHOLDERS 30 (595) (1 421) INCOME ATTRIBUTABLE
TO SHAREHOLDERS 194 375 76 886 153 182 615 DIVIDEND - - - 9 590 NUMBER OF SHARES
IN ISSUE ('000) 783,237 653,000 773,392 WEIGHTED AVERAGE NUMBER OF SHARES
IN ISSUE ('000) 776 549 650 516 662,839 ATTRIBUTABLE
INCOME (R'000) 194,375 76,886 182,615 HEADLINE EARNINGS
(R'000) 194,375 76,886 182,615 EARNINGS PER SHARE
(CENTS) 25,0 11,8 112 27,6 HEADLINE EARNINGS
PER SHARE (CENTS) 25,0 11,8 112 27,6 DIVIDENDS PER SHARE
(CENTS) - - 6,2
NOTE 1: COMPARATIVES ARE BASED ON FIGURES EXTRACTED FROM THE INTERIM REPORT DATED 2 MARCH 1999 FOR THE FOUR MONTHS ENDED 31 DECEMBER 1998, AND MANAGEMENT ACCOUNTS FOR JULY 1998 AND AUGUST 1998 PRIOR TO THE COMPANY BEING LISTED. CONSOLIDATED BALANCE SHEET AT 31 DECEMBER 1999
UNAUDITED UNAUDITED AUDITED 31 DEC 31 DEC 30 JUNE 1999 1998 1999 R'000 R'000 R'000 CAPITAL EMPLOYED ORDINARY SHAREHOLDERS'
INTEREST 1 837 027 1 231 513 1 670 140 OUTSIDE SHAREHOLDERS'
INTEREST 17 377 10 660 17 336 DEFERRED TAXATION 7 280 2 961 8 096 LONG-TERM LIABILITIES 200 337 111 344 117 253 2 062 021 1 356 478 1 812 825 EMPLOYMENT OF CAPITAL
FIXED ASSETS 1 543 168 900 301 1 297 231 INVESTMENTS AND LOANS 54 231 141 217 45 664 CURRENT ASSETS 1 868 389 900 660 1 545 734 TOTAL ASSETS 3 465 788 1 942 178 2 888 629 CURRENT LIABILITIES 1 403 767 585 700 1 075 804 - NET INTEREST BEARING 382 317 121 133 231 181 - OTHER 1 021 450 464 567 844 623 2 062 021 1 356 478 1 812 825 NUMBER OF SHARES IN
ISSUE ('000) 783 237 653 000 773 392 TANGIBLE NET ASSET VALUE
PER SHARE (CENTS) 235 189 216
GEARING RATIO (NET) (%) 32 19 21
ABRIDGED GROUP CASH FLOW STATEMENT FOR THE SIX MONTHS ENDED 31 DECEMBER 1999 UNAUDITED AUDITED
SIX MONTHS TEN MONTHS
ENDED ENDED
31 DEC 30 JUNE
1999 1999
R'000 R'000 OPERATING PROFIT BEFORE WORKING
CAPITAL CHANGES 259 657 226 563
NET CHANGES IN WORKING CAPITAL (129 727) (151 819)
CASH GENERATED FROM OPERATIONS 129 930 74 744
NET FINANCE COSTS (25 026) (26 565)
DIVIDENDS PAID (8 472) -
TAXATION (14 475) 33 NET CASH INFLOW FROM OPERATING
ACTIVITIES 81 957 48 212 NET CASH OUTFLOW FROM INVESTING
ACTIVITIES (320 157) (493 407) NET CASH INFLOW FROM FINANCING
ACTIVITIES 324 642 646 332 NET INCREASE IN CASH AND CASH
EQUIVALENTS 86 442 201 137 EFFECTS OF EXCHANGE RATE CHANGES ON CASH AND
CASH EQUIVALENTS 9 335 (63 237) CASH AND CASH EQUIVALENTS -
BEGINNING OF PERIOD 137 900 - CASH AND CASH EQUIVALENTS -
END OF PERIOD 233 677 137 900
THE COMPARATIVE AMOUNTS PRESENTED ARE FOR THE FIRST PERIOD OF TRADING AND REPORTING AS A LISTED COMPANY. COMMENTS RESULTS
GROUP REVENUE GREW 79% COMPARED TO THE CORRESPONDING PERIOD. THIS SIGNIFICANT GROWTH WAS ACHIEVED DUE TO THE SMOOTH INTEGRATION OF THE CORNICK/AFCOL ACQUISITION IN AFRICA, KLOSE IN GERMANY AND NEW PRODUCTION FACILITIES IN POLAND. OPERATING INCOME BEFORE FINANCE COSTS INCREASED BY 139% TO R231,125 MILLION (1998: R96,779 MILLION). OPERATING MARGIN IMPROVED TO 9% FOR THE PERIOD UNDER REVIEW. THE GROUP'S STATED TARGET OF 10% WITHIN THREE YEARS FROM THE TIME OF LISTING WILL BE ACHIEVED SHORTLY. FINANCE CHARGES INCREASED BY R11,678 MILLION TO FUND THE INCREASED TURNOVER AND ACQUISITIONS IN EUROPE. FOREIGN LONG-TERM DEBT HAS BEEN RAISED IN DEUTSCHE MARKS AT VERY FAVOURABLE INTEREST RATES.
INCOME ATTRIBUTABLE TO SHAREHOLDERS INCREASED BY 153% TO R194,375 MILLION (1998: R76,886 MILLION). THE RELATIVELY LOW TAX CHARGE IS DUE MAINLY TO THE GROUP'S FAVOURABLE TAX DISPENSATIONS PREVAILING IN CENTRAL EUROPE. IT IS ANTICIPATED THAT THE EFFECTIVE TAX RATE WILL NOT CHANGE MATERIALLY IN THE FORESEEABLE FUTURE.
EARNINGS PER SHARE AND HEADLINE EARNINGS PER SHARE INCREASED BY A PLEASING 112% TO 25 CENTS PER SHARE. REVIEW OF OPERATIONS
THE RATIONALISATION OF STEINHOFF AFRICA'S BUSINESS UNITS WITH THOSE OF CORNICK/AFCOL HAVE BEEN SUCCESSFULLY INTEGRATED. STEINHOFF AFRICA IS NOW STRUCTURED INTO FOUR FOCUSED DIVISIONS, NAMELY LOCAL FURNITURE, EXPORTS, RAW MATERIALS AND LOGISTICS.
R'000 R'000 R'000
FOREIGN AFRICA TOTAL
REVENUE 1 276 749 1 275 123 2 551 872
PERCENTAGE 50 50 100
ATTRIBUTABLE EARNINGS 101 112 93 263 194 375
PERCENTAGE 52 48 100
AN AVERAGE EXCHANGE RATE OF R3,26: 1DM (1998: R3,59: 1DM) WAS USED TO TRANSLATE FOREIGN CURRENCY AMOUNTS INTO LOCAL CURRENCY.
R236 MILLION (1998: R88 MILLION) OF AFRICA'S TURNOVER WAS EXPORTED TO EUROPE AND THE USA APPROXIMATING 20% OF ITS ACTIVITIES. IT IS THE GROUP'S OBJECTIVE TO GROW THESE EXPORTS TO AT LEAST 30% DURING THE NEXT 12 MONTHS. YEAR 2000 COMPLIANCE
THE Y2K PROJECT WAS SUCCESSFULLY CONCLUDED BY AN UNEVENTFUL TRANSITION INTO THE YEAR 2000. DIVIDEND
IT IS THE GROUP'S POLICY TO DECLARE DIVIDENDS ONCE A YEAR, AFTER ITS FINANCIAL YEAR-END AT 30 JUNE. PROSPECTS
THE GROUP WILL CONTINUE TO GROW ITS MARKET SHARE IN A HIGHLY FRAGMENTED EUROPEAN FURNITURE MARKET. IT IS ALSO OUR INTENTION TO GROW OUR MARKET SHARE IN ENGLAND AND AUSTRALIA.
WE ARE NEGOTIATING THE POSSIBLE FORMATION OF A STRATEGIC ALLIANCE WITH A SIGNIFICANT INTERNATIONAL IT PARTNER. THIS, TOGETHER WITH THE PLANNED EXPANSION OF OUR CURRENT LOGISTICS GROUP, WILL POSITION OURSELVES AS A FORCE IN THE E-COMMERCE FIELD AND FULFILMENT OF HOUSEHOLD GOODS WORLDWIDE.
MANAGEMENT IS CONFIDENT THAT THE GROUP WILL CONTINUE TO ACHIEVE ABOVE-AVERAGE EARNINGS GROWTH IN THE SECOND HALF OF THE YEAR. BY ORDER OF THE BOARD S J GROBLER COMPANY SECRETARY 7 MARCH 2000 REGISTERED OFFICE
28 6TH STREET, WYNBERG, 2018 TEL (011) 445 3000 FAX (011) 445 3135 TRANSFER SECRETARIES
MERCANTILE REGISTRARS LIMITED, FIRST NATIONAL HOUSE, 11 DIAGONAL STREET, JOHANNESBURG, 2001 DIRECTORS
BRUNO STEINHOFF*# (EXECUTIVE CHAIRMAN), DIRK ACKERMAN, CLAAS DAUN#, MARKUS JOOSTE*, LEN KONAR, FRIKKIE NEL*, NORBERT STEINHOFF*#, DANIE VAN DER MERWE* *EXECUTIVE DIRECTOR #GERMAN CITIZEN COMPANY SECRETARY S J GROBLER

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