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Steinhoff International Holdings Ltd - Unaudited results for the six months

Release Date: 05/03/2002 08:54
Code(s): SHF
Wrap Text
ended 31 December 2001
Steinhoff International Holdings Ltd
Registration number 1998/003951/06
Share code
SHF ISIN: ZAE 000016176
Registered office
28 6th Street, Wynberg, Sandton, 2090
Tel +27 11 445 3000 Fax +27 11 445 3099
Transfer secretaries
Mercantile Registrars Limited, 10th Floor
11 Diagonal Street, Johannesburg, 2001
Directors
B E Steinhoff* (Chairman), M J Jooste (Managing),
D E Ackerman+, C E Daun+*, K J Grov +, D Konar+,
F J Nel, N W Steinhoff*, D M van der Merwe
*German  +Non-executive
Company secretary  S J Grobler
www.steinhoffinternational.com
* Revenue up 37%
* Headline earnings up 43%
* Strong operating cash flow

Unaudited results for the six months ended 31 December 2001 consolidated income statement for the six months ended 31 December 2001
Unaudited Unaudited Audited
six months six months twelve months
ended 31/12/01 ended 31/12/00 % ended 30/06/01
R'000 R'000 change R'000
Revenue 3 912 203 2 853 472* 37 5 773 532 Operating income before
depreciation 459 285 327 436 40 679 586
Depreciation (53 446) (39 676) (98 923) Operating income after
depreciation 405 839 287 760 41 580 663 Exceptional
items - - 134 898 Earnings before goodwill, interest and
taxation 405 839 287 760 41 715 561 Goodwill
amortised - - (37 531) Earnings before interest
and taxation 405 839 287 760 41 678 030 Net finance
charges (18 137) (19 735) (46 648) Earnings before
taxation 387 702 268 025 45 631 382
Taxation (25 365) (12 834) (27 130) Earnings after
taxation 362 337 255 191 42 604 252 Share of associated companies'
retained income 21 704 14 001 38 111 Attributable to outside
shareholders 856 622 1 819 Income attributable
to shareholders 384 897 269 814 43 644 182 Number of shares in
issue ('000) 864 845 822 823 5 829 323 Weighted average number of shares in issue
('000 ) 855 528 817 616 5 822 129 Attributable
income (R'000) 384 897 269 814 43 644 182 Headline earnings
(R'000) 384 897 269 814 43 546 815 Earnings per
share (cents) 45 33 36 78 Headline earnings per
share (cents) 45 33 36 67 Dividend per
share (cents) - - 12
* The turnover for the six months ended 31/12/2000 has been restated to eliminate intergroup transactions. Abridged consolidated balance sheet at 31 December 2001
Unaudited Unaudited Audited 31/12/01 31/12/00 30/06/01 R'000 R'000 R'000 Assets Non-current assets Property, plant and equipment and
intangible assets 2 803 313 1 701 665 1 672 345 Investments and loans 808 089 247 115 546 190 Deferred tax asset - - 9 541 3 611 402 1 948 780 2 228 076 Current assets
Accounts receivable 2 480 458 1 583 007 1 695 383 Inventories 1 127 763 791 875 768 409 Cash and cash equivalents 230 429 233 630 988 905 3 838 650 2 608 512 3 452 697 Total assets 7 450 052 4 557 292 5 680 773 Equity and liabilities Capital and reserves Ordinary shareholders'
equity 3 812 883 2 547 916 3 013 800 Outside shareholders'
interest 9 182 17 464 10 037 3 822 065 2 565 380 3 023 837 Non-current liabilities
Deferred taxation 4 531 7 600 4 529 Long-term liabilities 1 054 260 326 002 426 723 Long-term licence fee
liability 287 250 - 287 250 1 346 041 333 602 718 502 Current liabilities
Net interest-bearing 444 800 450 029 631 186 Accounts payable
and provisions 1 837 146 1 208 281 1 307 248 2 281 946 1 658 310 1 938 434 Total equity and
liabilities 7 450 052 4 557 292 5 680 773 Net asset value
per share (cents) 441 310 363 Gearing ratio (net) (%) 33 28 9 abridged consolidated cash flow statements for the six months ended 31 December 2001
Unaudited six Unaudited six Audited year months ended months ended ended 31/12/01 31/12/00 30/06/01 R'000 R'000 R'000 Operating profit before working
capital changes 458 269 269 772 827 770 Net changes in
working capital (159 832) 109 229 (93 847) Cash generated
from operations 298 437 379 001 733 923 Net finance costs (18 137) (19 735) (46 648) Dividends paid (26 694) (14 482) (17 365) Dividends received 7 506 - 5 610 Taxation (60 457) (28 611) (43 192) Net cash inflow (outflow) from
operating activities 200 655 316 173 632 328 Net cash outflow from
investing activities (1 134 016) (211 396) (347 395) Net cash inflow (outflow) from
financing activities 32 153 (330 642) 277 012 Net increase in cash
and cash equivalents (901 208) (225 865) 561 945 Effects of exchange rate changes on cash and
cash equivalents 142 732 4 854 (27 681) Cash and cash equivalents -
beginning of period 988 905 454 641 454 641 Cash and cash equivalents - end of
period 230 429 233 630 988 905 statement of changes in equity for the six months ended 31 December 2001 Share Non
and -distri Distri-
capital butable butable
Premium reserves reserves Total R'000 R'000 R'000 R'000 Balance at beginning of
period 1 681 887 143 213 1 188 703 013 800 Current year
associate income 21 704 (21 704) - Earnings attributable to
shareholders 384 897 384 897 Increase in foreign currency
translation reserve 292 883 292 883 Dividends paid (26 694) (26 694) Issue of shares 147 997 147 997 Balance at end
of period 1 829 884 457 800 1 525 199 3 812 883 Comments REVIEW OF RESULTS
The Board is pleased to report that the Group's headline earnings for the six months ended 31 December 2001 grew to R385 million
(2000: R270 million) on increased revenues of R3 912 million (2000:
R2 853 million) in a challenging and competitive business environment. The operating margin was maintained at 10% during the period and is expected to at least remain at this level for the remainder of the financial year. Net finance charges reduced by R1,6 million as a result of improved working capital management and continuing favourable interest rates.
The relatively low effective tax charge is due mainly to the Group's
favourable tax dispensations in central Europe. The effective tax rate is not anticipated to change materially in the foreseeable future.
Headline earnings per share increased by 36% to 45 cents (2000: 33 cents).
The Group utilised cash and increased its gearing to fund the offshore acquisitions.
The Group's equity was further enhanced by R293 million (2000:
R17 million) as a result of the increase of the foreign currency translation reserve: this arose on the translation of the foreign net assets at 31 December 2001 and was credited directly to non-distributable reserves. These interim results have been prepared in accordance with statements of Generally Accepted Accounting Practice. The same accounting policies have been used in the preparation of these results as those in the previous financial period. segmental analysis 6 months ended 31 December Earnings before exceptional items, goodwill, interest
Revenue and taxation Net assets
2001 R'000 % R'000 % R'000 % Manufacturing 2 871 616 73 269 010 63 2 716 275 71 Wholesale and
distribution 1 040 587 27 158 533 37 1 096 608 29 Total 3 912 203 100 427 543* 100 3 812 883 100 - Earnings - before - exceptional - items, goodwill, interest and taxation includes share of associate income of R 21 704 000. 2000
Manufacturing 2 085 700 73 195 722 65 1 886 226 74 Wholesale and
distribution 767 772 27 106 039 35 661 689 26 Total 2 853 472 100 301 761**100 2 547 915 100 ** Earnings before exceptional items, goodwill, interest and taxation includes share of associate income of R14 001 000. Earnings before exceptional items goodwill, interest
Revenue and taxation Net assets
2001 R'000 % R'000 % R'000 % Southern
Africa 1 275 842 33 110 364 26 1 259 815 33 European
community 1 690 828 43 218 804 51 1 797 579 47 Eastern Europe 820 080 21 93 135 22 683 944 18 Australia and New
Zealand 125 453 3 5 240 1 71 545 2 Total 3 912 203 100 427 543* 100 3 812 883 100 2000
Southern Africa 1 141 198 40 112 764 37 1 109 038 44 European
community 1 125 443 39 144 983 48 1 026 474 40 Eastern
Europe 561 995 20 41 940 14 402 320 16 Australia 24 836 1 2 074 1 10 084 - Total 2 853 472 100 301 761**100 2 547 916 100 The average exchange rate used to translate foreign currency income and expenditure into South African rand was R4,26: 1DM (2000: R3,34: 1DM). R414 million (2000: R275 million) of Africa's revenue represents exports to the USA and the European community, amounting to approximately 32%
(2000: 25%) of its activities. It is the intention of the Group to continue to increase these exports into the future. The Group's revenue exposure to the local South African furniture market reduced further to 20% (2000: 25%). Comments CORPORATE ACTIVITY
The Group continued, during the period under review, to implement a number of transactions and acquisitions. It also commenced with further initiatives to ensure the continued growth of its business and earnings.
Relyon Group Ltd, a previously listed company in the UK is now a wholly- owned subsidiary with effect from 1 October 2001.
The integration of the Freedom Group's manufacturing division in Australia and New Zealand with Steinhoff's own facilities only became effective since 1 October 2001.
The Group increased its holding in Unitrans Limited at 31 December 2001 to approximately 22%. It further increased its investment to above 25% at the date of this report.
Two new brands, Egoform and Dieter Knoll were acquired. These brands are targeted at the top end of the European furniture market. They were
successfully launched during January 2002 at the international furniture fair in Cologne, Germany.
A joint venture agreement was entered into with the La-Z-Boy Group of the USA for the development of the La-Z-Boy brand in the European and Eastern European communities. This product range was also successfully launched at the Cologne fair. DIVIDEND
It is the Group's policy to declare dividends once a year, after its financial year-end on 30 June. PROSPECTS
Steinhoff Africa will continue to increase its exports out of Africa. It will make further investment in raw material production facilities,
especially in the saw-milling business, and various proposals are currently being evaluated.
Management is confident that the Group will continue to achieve real
earnings growth for the rest of the financial year. By order of the Board S J Grobler

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