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SHF - Steinhoff International Holdings - Results of Annual General Meeting ("The
AGM"), Results of the 2009 Capitalisation Share Award and the Chief
Executive Officer`s Statement
STEINHOFF INTERNATIONAL HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration no. 1998/003951/06)
Ordinary share code: "SHF"
ISIN: ZAE000016176
("the Company")
RESULTS OF ANNUAL GENERAL MEETING ("the AGM"), RESULTS OF THE 2009
CAPITALISATION SHARE AWARD AND THE CHIEF EXECUTIVE OFFICER`S STATEMENT
RESULTS OF AGM
Shareholders are advised that all the ordinary and special resolutions proposed
in the Notice of Annual General Meeting dated 12 November 2009, were passed by
the requisite majorities of shareholders present and represented by proxy and
being entitled to vote at the AGM held earlier today (with accenting voting
percentages ranging from 86.6% to 99.8%). Shareholders and/or their
representatives holding or representing 68.4% of the issued share capital and
being eligible to attend and vote, were present or represented at the AGM. The
special resolutions have been lodged for registration with the Registrar of
Companies.
RESULTS OF THE CAPITALISATION SHARE AWARD AND ELECTION TO RECEIVE A FINAL CASH
DISTRIBUTION IN LIEU THEREOF
Shareholders are referred to the announcements released on the Securities
Exchange News Service ("SENS") on 19 November 2009, and published in the press
on 20 November 2009, respectively.
The offer to receive the cash distribution in lieu of the capitalisation share
award made to shareholders recorded in the register on Friday, 4 December 2009,
closed at 12:00 on that date. Elections to receive the cash distribution of 60
cents per share were made in respect of 187 730 883 ordinary shares (13.1% of
the Steinhoff`s issued shares), totalling an aggregate cash distribution of
R112 638 530.
Accordingly, 49 553 253 new ordinary shares in the company (being 86.9% of the
maximum number of capitalisation shares that were the subject of the
capitalisation share award) will be issued. An adjustment to the maximum number
of capitalisation shares listed will be made on or about Tuesday, 8 December
2009.
Share certificates in respect of the capitalisation shares and cheques in
respect of the distribution entitlements are in the process of being dispatched
to certificated shareholders. The Central Securities Depository Participant
accounts of uncertificated Steinhoff shareholders have been updated or credited,
as the case may be, on Monday, 7 December 2009.
CHIEF EXECUTIVE OFFICER`S STATEMENT
OPERATIONS OVERVIEW
STEINHOFF EUROPE
The Steinhoff Europe group traded well in the first quarter of the year, which
is traditionally the slowest trading period of the financial year. Turnover
levels throughout the divisions were satisfactory when measured against budgeted
levels. The economies in most of the countries where we operate continued to
improve due to resilience in most of our markets and the easing of the financial
crisis. We are still experiencing the trend that the activity levels are alive
and well in the mass discount sector while the middle to upper end remains under
pressure.
Performance during October and November, again exceeded expectations and bodes
well for a solid interim performance, measured in constant currency. However,
the Rand, as reporting currency, has been much stronger than the comparative
period last year and this will have an effect on translating foreign currency
denominated income into Rand.
After a turbulent year in the UK in 2008/9 financial year, the current financial
year has started well. Retail order intake is strong and this is benefitting
activity levels in all divisions. Within the furniture division, excellent
growth has been achieved in the upholstery sector as the result of a strong
product range, well managed supply chain and the demise of competitors. The
pick up in trade in our retail operations is flowing though to our manufacturing
operations due to the integrated nature of our businesses.
The resilience of the German, Austrian and Swiss economies supported good
results in our European retail divisions. These operations are now operating at
full strength and management is confident that the retail chains will achieve
their targets for the remainder of the financial year ahead.
The manufacturing divisions of Eastern Europe have improved their performance
substantially, mostly as a result of the full integration of the management of
all Eastern European manufacturing facilities in Poland. This performance was
also favourably impacted by the behaviour of all Eastern European currencies
relative to the Euro and British Pound, in which most of our sales are realised.
This should continue to improve as the year progresses. This division is now one
of the leading upholstery divisions in the German region and has also
successfully penetrated the markets of Switzerland and France, which should
provide improved benefits in the quarters to come.
The consolidation of the industry continued on a daily basis and Steinhoff is
well positioned to participate in this process as it develops.
Our trading and import division had a very good first quarter, supported by the
growth experienced by particularly the UK retail division. No inflation was
experienced within the trading and import division, aiding the divisions` solid
margins on the back of the turnover growth experienced in this quarter.
Our brand management activities have performed satisfactorily for the quarter
under review, with royalty income achieved on budget. The treasury function
performed well and underlying margins for the business as a whole remain on
track. We are continuing, through our Investment Participation activities, the
roll out of new stores in new territories with our strategic retail alliance
partners.
STEINHOFF AFRICA AND PACIFIC RIM
The general market conditions in South Africa remained depressed for the first
quarter of the current financial year.
Unitrans, specifically the logistics and passenger divisions, delivered an
excellent performance for the quarter. All three divisions exceeded their
budgets and their prior year results on the EBT line.
Conditions in the automotive industry remained challenging for the quarter with
new vehicle volumes contracting on the previous year. Working capital
management remains a priority and resulted in good cash flow and lower than
budgeted interest expenditure.
The state of the building industry, coupled with the general state of furniture
retail sales in South Africa has had a knock-on effect on our Timber interests
and the Raw Material division. In addition, the strong Rand is not conducive to
export trade so focus remains on servicing the local market demand. In spite of
this our Timber operations came in at budgeted levels for the period under
review and the raw material interests outperformed their budget. The group is
constantly reviewing its overheads and infrastructure in order to improve its
bottom line performance in the face of weaker demand, which we expect to
continue.
In Australia we have seen general positive trends in the market although that is
not yet reflected in our operating result for the period under review. The
management team has been enhanced by the appointment of an experienced CEO that
would be responsible for the entire Asian Pacific region. He will concentrate on
growing the underlying businesses, while protecting the inherent support base
this business provides to other Steinhoff businesses, which include providing
the skills and knowledge base of the sourcing operations and setting the trend
for product and marketing innovation to the rest of the group.
LIQUIDITY
Financial markets have shown signs of normalising during the last few months.
This is further evidenced by the majority of our relationship banks, who have
shown ample interest and activity, which clearly indicates that liquidity has
improved at spreads substantially lower that those of only a few months back.
Preparatory work, regarding the refinancing of all debt facilities which come up
for renewal in the foreseeable future, is at an advanced stage. Working capital
management by all our divisions was better than budgeted and resulted in lower
finance charges compared to budget. In all of the divisions, working capital
management remained a focus area thereby achieving the appropriate stock levels
and resulting cash generation.
CONCLUSION
As outlined above it is evident that the geographic and operational diversity of
our businesses internationally protected us from the volatile market conditions
that prevailed in the economies in which we operate. In judging the first
quarter`s results it does seem that some normality has returned to the economies
in which we operate. I would like to thank our management teams and stakeholders
across the world for their support during the year, and a special thanks to our
shareholders for their overwhelming support in approving the resolutions
proposed at the annual general meeting.
SJ Grobler
Company Secretary
Wynberg, Sandton
7 December 2009
Sponsor - PSG Capital (Pty) Limited
Date: 07/12/2009 16:25:47 Supplied by www.sharenet.co.za
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