Wrap Text
Preliminary report on the audited group annual results for the 52 weeks ended 1 July 2018
TRUWORTHS INTERNATIONAL LTD
REGISTRATION NUMBER: 1944/017491/06
JSE CODE: TRU
NSX CODE: TRW
ISIN: ZAE000028296
PRELIMINARY REPORT ON THE AUDITED GROUP ANNUAL RESULTS
for the 52 weeks ended 1 July 2018
KEY FEATURES
Comparable sale of merchandise# down 0.2% to R17.5 billion
Sale of merchandise down 2.9%
Gross margin 52.4%
Operating margin 22.5%
Comparable diluted headline earnings per share# down 1.3%
Diluted headline earnings per share down 7.3%
Net asset value per share up 10.0%
Cash generated from operations up 3.3% to R3.1 billion
Net borrowings repaid R2.2 billion
Net debt to equity 9.3%
Cash realisation rate 109%
Annual dividend per share down 7.1% to 420 cents
# Relative to the pro forma comparable 52-week prior period (refer to note 15).
GROUP PROFILE
Truworths International Ltd (the company) is an investment holding and management company listed on
the JSE and the Namibian Stock Exchange. Its principal trading entities, Truworths Ltd and Office
Holdings Ltd, are engaged either directly or through subsidiaries, concessions, agencies or
franchises, in the cash and account retailing of fashion clothing, footwear, related merchandise
and homeware. The company and its subsidiaries (the Group) operate primarily in South Africa and
the United Kingdom, and have an emerging presence in Germany, the Republic of Ireland and other
sub-Saharan African countries.
TRADING AND FINANCIAL PERFORMANCE
In a tough economic environment in South Africa and in the UK, Group retail sales for the 52-week
period ended 1 July 2018 (the period) were unchanged at R18.0 billion, compared to the pro forma
comparable 52-week period (i.e. 4 July 2016 to 2 July 2017) (the comparable prior period*).
Relative to the 53-week prior reporting period ended 2 July 2017 (the 53-week prior period),
Group retail sales decreased by 2.7% from R18.5 billion to R18.0 billion.
Retail sales for the Truworths Africa segment increased by 0.8% relative to the comparable prior
period*, with cash sales increasing by 2.6% and account sales being unchanged. Relative to the
53-week prior period, Truworths' retail sales decreased by 2.1% from R13.4 billion to R13.1 billion,
with cash sales unchanged and account sales decreasing by 3.0%. Account sales comprised 69%
(2017: 70%) of Truworths' retail sales. Comparable product deflation (i.e. excluding the new Office
London footwear chain launched in South Africa and Loads of Living acquired during the period)
averaged 1.4%.
Retail sales for the Group's UK-based Office segment decreased by 2.5% in Pound Sterling relative
to the comparable prior period*. Relative to the 53-week prior period, Office's retail sales decreased
by 4.5% from £294 million (R5.1 billion) to £281 million (R4.8 billion). Product inflation averaged 3.6%.
Group sale of merchandise, which comprises Group retail sales, together with wholesale and franchise
sales and delivery fee income, less accounting adjustments, declined 0.2% relative to the comparable
prior period*. Relative to the 53-week prior period, Group sale of merchandise decreased by 2.9%
from R18.1 billion to R17.5 billion.
A net 32 stores were added across all brands during the period, resulting in an increase in trading
space of 3.2% (Truworths 3.3% increase and Office 0.9% increase). Loads of Living accounted for 13
of the new stores. Excluding Loads of Living, trading space increased by 2.1%. At the end of the period
the Group had 969 stores (including 40 concession outlets) (2017: 937 including 38 concession outlets).
* Refer to note 15 for the pro forma comparable 52-week prior period statement of comprehensive income.
Divisional sales**
Change on Change on
Comparable prior period prior period
52 weeks to 52 weeks to 52 on 53 weeks to 52 on
1 Jul 2018 2 Jul 2017* 52 weeks 2 Jul 2017 53 weeks
Rm Rm % Rm %
Truworths ladieswear 3 753 3 860 (3) 3 988 (6)
Truworths designer emporium‡ 1 383 1 396 (1) 1 436 (4)
Total Truworths ladieswear 5 136 5 256 (2) 5 424 (5)
Office 4 848 4 980 (3) 5 081 (5)
Truworths menswear~ 3 663 3 656 - 3 759 (3)
Identity 2 082 2 067 1 2 129 (2)
Truworths kids emporium# 925 872 6 896 3
Other^ 1 309 1 159 13 1 183 11
Group retail sales 17 963 17 990 - 18 472 (3)
Delivery fee income 51 52 (2) 53 (4)
Wholesale sales 46 50 (8) 50 (8)
Franchise sales 5 8 (38) 8 (38)
Accounting adjustments (518) (518) - (518) -
Sale of merchandise 17 547 17 582 - 18 065 (3)
YDE agency sales 254 271 (6) 278 (9)
** The 53 weeks to 2 July 2017 has been restated based on Truworths' new internal department structure.
The restatement did not affect total reported retail sales for the said period.
‡ Daniel Hechter Ladies, Ginger Mary, Glamour, LTD Ladies and Earthaddict.
~ Truworths Man, Uzzi, Daniel Hechter Mens and LTD Mens.
# LTD Kids, Earthchild and Naartjie.
^ Cellular, Truworths Jewellery, Cosmetics, Office London and Loads of Living.
The Group's gross margin was stable at 52.4% (2017: 52.6%). Truworths' gross margin increased to
55.5% (2017: 55.2%).
Trading expenses decreased by 1.9% to R7.0 billion (2017: R7.1 billion) and constituted 39.6%
(2017: 39.2%) of sale of merchandise. Excluding foreign exchange gains in 2018 (R29 million) and
losses in 2017 (R93 million), trading expenses decreased by 0.1%, reflecting management's continued
focus on efficiency and cost containment. An increase in occupancy costs (3.9%) was off-set by a
decrease in trade receivable costs (9.1%), while depreciation and amortisation, employment costs
and other operating costs (excluding foreign exchange gains and losses) were largely unchanged.
Refer to Account Management below for further details on trade receivable costs.
Relative to the comparable prior period* trading profit increased by 2.2% to R2.5 billion. Despite
the tough South African consumer environment, Truworths' trading profit increased by 9.0% relative
to the comparable prior period* (2.9% excluding foreign exchange gains and losses). The difficult
trading conditions affecting retailers in the UK is also evident in the Office segment where trading
profit has decreased by 32.3% in Pound Sterling relative to the comparable prior period*.
Interest received decreased 3.9% to R1.4 billion (2017: R1.5 billion), mainly due to decreases
totalling 50 basis points in the South African repo rate since the beginning of the reporting period
and a decrease in trade receivables. Operating profit decreased 6.3% to R3.9 billion, while the
operating margin declined to 22.5% from 23.3% in the 53-week prior period. This decline is
attributable to the decrease in gross profit, compounded by a relatively smaller decrease in trading
expenses, as well as a decrease in interest received. Truworths' operating margin decreased to
29.1% (2017: 29.2%).
Finance costs have decreased by 15.3% to R250 million (2017: R295 million) mainly as a result of
the settlement of a portion of the Group's long-term borrowings and decreases in the South African
repo rate referred to above.
Headline earnings per share (HEPS) and diluted HEPS decreased by 1.0% to 615.7 cents and 1.3% to
612.7 cents respectively relative to the comparable prior period*. Relative to the 53-week prior
period, HEPS and diluted HEPS decreased by 7.0% and 7.3% respectively.
A final cash dividend of 159 cents per share has been declared (2017: 182 cents per share), bringing
the annual dividend to 420 cents per share (2017: 452 cents per share).
* Refer to note 15 for the pro forma comparable 52-week prior period statement of comprehensive income.
FINANCIAL POSITION
The Group's financial position remains strong, with net asset value per share increasing by 10.0% to
2 421 cents (2017: 2 201 cents) since the prior period-end.
Inventories increased by 8.1% to R2.1 billion at the end of the period. Gross inventory increased
8.8% and inventory turn decreased to 4.0 times (2017: 4.5 times). Truworths' gross inventory
increased 7.1% and inventory turn decreased to 4.8 times (2017: 5.2 times), mainly as a result of
the timing of the Truworths end-of-season sale, which commenced in the 53rd week of the prior period.
The inventory of the Office segment increased from £47 million at the prior period-end to £50 million
mainly due to weaker trading.
Interest-bearing borrowings at the period-end decreased to R1.7 billion from R3.8 billion at the
prior period-end as a consequence of scheduled and additional loan repayments, as well as a
restructuring of the funding arrangements in South Africa to achieve an efficient and more
cost-effective capital structure. The cost benefits of this funding restructure will only be realised
from the 2019 reporting period onwards. Refer to note 10 for further details.
Included in non-current liabilities is a liability of R389 million (2017: R400 million) in relation
to put options granted to the non-controlling management shareholders in Office, while derivative
financial assets of R10 million (2017: R11 million) represent the call options of the Group over the
shares in question.
Trade and other payables increased 10.2% to R1.8 billion (2017: R1.6 billion), due to the timing
of capital and operational expenditure.
CASH AND CAPITAL MANAGEMENT
During the period, the Group generated R3.1 billion in cash from operations and this funded cash
dividend payments of R1.9 billion, capital expenditure of R485 million and share buy-backs of
R184 million. In addition, the Group utilised its available cash resources to fund net borrowing
repayments of R2.2 billion due to scheduled and additional loan repayments, as well as the
restructuring of its funding arrangements in South Africa. At the end of the period, the Group had
net cash and cash equivalents of R719 million (2017: R2.1 billion).
The cash realisation rate, which is a measure of how profits are converted into cash, was 109% for
the period, compared to 91% in the 53-week prior period. The average cash realisation rate for the
last five financial years is 93%.
The Group's net debt to equity ratio at the end of the period was 9.3% (2017: 18.3%) and net debt
to EBITDA was 0.2 times (2017: 0.4 times).
ACCOUNT MANAGEMENT
Gross trade receivables in respect of the debtors book (Truworths, Identity and YDE) declined by 3%
compared to the prior period-end, mainly as a result of the decline in credit sales. Active account
holders able to purchase at the end of the period increased to 84% (2017: 82%). The ratio of opened
accounts to account applications increased to 25% (2017: 24%). The Group's active accounts increased
2% to 2.6 million compared to the prior period-end, growing for the first time since the 2016
reporting period.
The doubtful debt allowance to gross trade receivables has decreased to 12.3% from 12.7% at the
prior period-end. Trade receivable costs decreased by 9.1% to R1 099 million compared to
R1 209 million in the 53-week prior period. This net decrease is as a result of the increase in
collection and other trade receivable costs of 4.3%, off-set by the decrease in net bad debt of
4.8% and the reduction in the allowance for doubtful debts. Net bad debt to gross trade receivables
decreased to 14.7% (2017: 15.0%), while net bad debt to account sales decreased to 9.2% (2017: 9.4%).
During March 2018 the High Court found in favour of the Group and two other major JSE-listed
retailers in the legal action taken against the National Credit Regulator (NCR) and the Minister of
Trade and Industry to rescind the requirements for customers to provide documentary proof of income
under the credit affordability assessment regulations. The NCR has subsequently issued draft
guidelines dealing with documentation requirements which have been open for public comment.
During the period in which the documentation requirements were effective, the Group successfully
implemented various account granting strategies, updated its information systems and made its
processes more efficient in an attempt to mitigate the negative impact of the regulations. Given the
relative success of these changes, the Group believes that the positive outcome of the court case
will have limited upside for the Group.
The Group uses accounts as an enabler of sales to customers in the mainstream middle-income
South African market, as opposed to operating a financial services business. No fees are charged to
customers, such as initiation fees, club fees, collection fees or magazine fees, except for an
annual account service fee of R28. Financial services income (refer to note 4 for further details)
constitutes only 0.3% of revenue.
Refer to note 3.2 Accounting policies and methods of computation, for detail regarding the potential
impact of IFRS 9.
DIRECTORATE
During the period Mr Hans Hawinkels and Ms Maya Makanjee were appointed as independent non-executive
directors of the company.
EXECUTIVE
The board has resolved to appoint Mr David Pfaff (53), the Group's Chief Financial Officer and an
executive director of the company, to the newly created role of Group Chief Operating Officer (COO)
whilst continuing in the role of Group Chief Financial Officer (CFO). The appointment will take place
with immediate effect. Mr Pfaff who was appointed as CFO in March 2013 will now be responsible for
retail store operations in addition to his existing portfolio of credit risk, credit operations,
information systems and finance.
OUTLOOK
South Africa: Truworths
Although sentiment improved after President Ramaphosa came into office, consumer spending remains
under pressure due to low economic growth, high levels of unemployment and the continuously rising
cost of living. A subsequent decline in consumer confidence and mounting pressure on emerging markets
remain obstacles for growth.
Several strategic initiatives recently undertaken by management aim to mitigate the effects of this
challenging external environment. These include the launch of a sophisticated new e-commerce site
to enhance the online offering, the testing and soon-to-be-implemented lay-by facility which will
be available at all stores, the expansion of the recently acquired Loads of Living business and
the roll-out of a new store concept.
Management will continue its operational cost containment efforts, whilst investing appropriately
in infrastructure for the long term.
The improved metrics of the debtors book, as evidenced by growth in active accounts, reduced
provisioning and higher percentages of account customers able to shop because they are not in arrears,
are positive indicators for future sales.
Product inflation for the period July to December 2018 is expected to be flat following the 1.4%
deflation achieved for the past reporting period.
Truworths' retail sales for the first six weeks of the 2019 reporting period compared to the first
six weeks of the prior period are up 11.1%. However, the end-of-season sale commenced in week 1 of
the 2019 reporting period, which was not the case in the prior period when the end-of-season sale
commenced one week earlier in week 53 of the 2017 reporting period. Accordingly, the first six weeks
of the 2019 reporting period are not directly comparable to the first six weeks of the 2018
reporting period.
United Kingdom: Office
Political uncertainty relating to the outcome of the Brexit negotiations continues to have a negative
impact on the trading environment. However, stable inflation, better employment growth and wage
inflation are expected to have a small, but positive impact on UK household disposable income.
Management's initiatives aimed at addressing margin decline through improved merchandise ranges and
product mix are expected to arrest the profitability decline experienced in the 2018 reporting period.
The well-established and growing online and mobile retail presence positions Office for growth in a
market with an increasing preference for online shopping. Improvements to the store concept are aimed
at attracting customers through an enhanced in-store experience. These improvements over time should
help off-set the sales pressure on stores. Marketing, customer engagement and loyalty initiatives
are being implemented to retain customers, and improve customer experience and communication.
Office's retail sales for the first six weeks of the 2019 reporting period compared to the first
six weeks of the prior period are up 2.9% in Pound Sterling. These weeks are directly comparable
in all material respects.
Group: Capital expenditure
Capital expenditure of R746 million (Truworths R626 million and Office £6.6 million) has been
committed for the 2019 reporting period.
H Saven MS Mark
Chairman Chief Executive Officer
FINAL DIVIDEND
The directors of the company have resolved to declare a gross cash dividend from retained earnings
in respect of the 52-week period ended 1 July 2018 in the amount of 159 South African cents
(2017: 182 South African cents) per ordinary share to shareholders reflected in the company's
register on the record date, being Friday, 14 September 2018.
The last day to trade in the company's shares cum dividend is Tuesday, 11 September 2018.
Consequently no dematerialisation or rematerialisation of the company's shares may take place
over the period from Wednesday, 12 September 2018 to Friday, 14 September 2018, both days inclusive.
Trading in the company's shares ex dividend will commence on Wednesday, 12 September 2018.
The dividend is scheduled to be paid in South African Rand (ZAR) on Monday, 17 September 2018.
Dividends will be paid net of dividends tax (currently 20%), to be withheld and paid to the
South African Revenue Service. Such tax must be withheld unless beneficial owners of the dividend
have provided the necessary documentary proof to the relevant regulated intermediary (being a broker,
CSD participant, nominee company or the company's transfer secretaries, Computershare Investor
Services (Pty) Ltd, PO Box 61051, Marshalltown, 2107 South Africa) that they are exempt therefrom,
or entitled to a reduced rate, as a result of a double taxation agreement between South Africa and
the country of tax domicile of such owner.
The withholding tax, if applicable at the rate of 20%, will result in a net cash dividend per share
of 127.2 South African cents. The company has 442 589 686 ordinary shares in issue on 16 August 2018.
In accordance with the company's memorandum of incorporation, the dividend will only be paid by
electronic funds transfer and no cheque payments will be made. Accordingly, shareholders who have
not yet provided their bank account details should do so to the company's transfer secretaries.
The directors have determined that gross dividends amounting to less than 2 000 South African cents,
due to any one shareholder of the company's shares held in certificated form, will not be paid,
unless otherwise requested in writing, but the net amount thereof will be aggregated with other
such net amounts and donated to a charity to be nominated by the directors.
By order of the board
C Durham
Company Secretary
Cape Town
16 August 2018
One Capital
JSE Sponsor
Merchantec Capital Namibia
NSX Sponsor
SUMMARISED GROUP STATEMENTS OF FINANCIAL POSITION
Note At 1 Jul At 2 Jul
2018 2017
Audited Audited
Rm Rm
ASSETS
Non-current assets 6 904 6 559
Property, plant and equipment 1 726 1 637
Goodwill 6 1 629 1 552
Intangible assets 7 3 227 3 037
Derivative financial assets 10 11
Available-for-sale assets 30 29
Loans and receivables 109 64
Deferred tax 173 229
Current assets 8 587 9 580
Inventories 2 072 1 916
Trade and other receivables 5 110 5 256
Derivative financial assets 73 -
Prepayments 350 338
Cash and cash equivalents 982 2 055
Tax receivable - 15
Total assets 15 491 16 139
EQUITY AND LIABILITIES
Total equity 10 369 9 450
Share capital and premium 8 729 706
Treasury shares 9 (1 083) (939)
Retained earnings 10 932 10 212
Non-distributable reserves (209) (529)
Non-current liabilities 2 363 4 709
Interest-bearing borrowings 10 1 268 3 641
Deferred tax 477 454
Put option liability 389 400
Straight-line operating lease obligation 155 157
Post-retirement medical benefit obligation 55 53
Cash-settled compensation liability 15 -
Leave pay obligation 4 4
Current liabilities 2 759 1 980
Trade and other payables 1 800 1 634
Interest-bearing borrowings 10 419 144
Bank overdraft 263 -
Provisions 140 111
Contingent consideration obligation - 62
Derivative financial liability - 6
Tax payable 137 23
Total liabilities 5 122 6 689
Total equity and liabilities 15 491 16 139
Number of shares in issue (net of treasury shares) (millions) 428.3 429.4
Net asset value per share (cents) 2 421 2 201
Key ratios
Return on equity (%) 27 31
Return on capital (%) 40 46
Return on assets (%) 25 26
Inventory turn (times) 4.0 4.5
Asset turnover (times) 1.1 1.1
Net debt to equity (%) 9.3 18.3
Net debt to EBITDA (times) 0.2 0.4
SUMMARISED GROUP STATEMENTS OF COMPREHENSIVE INCOME
Note 52 weeks 53 weeks
to 1 Jul to 2 Jul
2018 2017
Audited % Audited
Rm change Rm
Revenue 4 19 254 (3) 19 858
Sale of merchandise 4 17 547 (3) 18 065
Cost of sales (8 354) (8 562)
Gross profit 9 193 (3) 9 503
Other income 4 279 291
Trading expenses (6 954) (2) (7 086)
Depreciation and amortisation (387) (389)
Employment costs (2 109) (2 094)
Occupancy costs (2 240) (2 155)
Trade receivable costs (1 099) (1 209)
Other operating costs (1 119) (1 239)
Trading profit 2 518 (7) 2 708
Interest received 4 1 420 (4) 1 478
Dividends received 4 8 24
Operating profit 3 946 (6) 4 210
Finance costs (250) (295)
Profit before tax 3 696 3 915
Tax expense (1 031) (1 049)
Profit for the period 2 665 (7) 2 866
Attributable to:
Equity holders of the company 2 643 2 827
Holders of the non-controlling interest 22 39
Profit for the period 2 665 2 866
Other comprehensive income/(losses) to be reclassified
to profit or loss in subsequent periods 242 (652)
Fair value adjustment on available-for-sale financial instruments (2) (3)
Movement in foreign currency translation reserve 244 (649)
Other comprehensive income not to be reclassified to profit or
loss in subsequent periods 2 9
Re-measurement gains on defined benefit plans 2 9
Other comprehensive income/(losses) for the period, net of tax 244 (643)
Attributable to:
Equity holders of the company 218 (569)
Holders of the non-controlling interest 26 (74)
Other comprehensive income/(losses) for the period, net of tax 244 (643)
Total comprehensive income for the period 2 909 2 223
Attributable to:
Equity holders of the company 2 861 2 258
Holders of the non-controlling interest 48 (35)
Total comprehensive income for the period 2 909 2 223
Basic earnings per share (cents) 614.8 (7) 659.9
Headline earnings per share (cents) 5 615.7 (7) 662.0
Diluted basic earnings per share (cents) 611.8 (7) 658.8
Diluted headline earnings per share (cents) 5 612.7 (7) 660.9
Weighted average number of shares (millions) 429.9 428.4
Diluted weighted average number of shares (millions) 432.0 429.1
Key ratios
Gross margin (%) 52.4 52.6
Trading expenses to sale of merchandise (%) 39.6 39.2
Trading margin (%) 14.4 15.0
Operating margin (%) 22.5 23.3
SUMMARISED GROUP STATEMENTS OF CHANGES IN EQUITY
Holders
Share Non- Equity of the
capital distribut- holders non-con-
and Treasury Retained able of the trolling Total
premium shares earnings reserves company interest equity
Rm Rm Rm Rm Rm Rm Rm
2018
Balance at the beginning
of the period 706 (939) 10 212 (529) 9 450 - 9 450
Total comprehensive income
for the period - - 2 645 216 2 861 48 2 909
Profit for the period - - 2 643 - 2 643 22 2 665
Other comprehensive income
for the period - - 2 216 218 26 244
Cash dividends - - (1 925) - (1 925) - (1 925)
Shares repurchased - (184) - - (184) - (184)
Cost of shares vested and
transferred to participants
in terms of the 2012 restricted
share scheme - 40 - (40) - - -
Premium on shares issued in terms
of the 1998 share option scheme 23 - - - 23 - 23
Share-based payments - - - 87 87 - 87
Acquisition of non-controlling
interest - - - - - (2) (2)
Movement in put option liability - - - 57 57 (46) 11
Balance at 1 July 2018 729 (1 083) 10 932 (209) 10 369 - 10 369
2017
Balance at the beginning
of the period 706 (882) 8 903 (102) 8 625 - 8 625
Total comprehensive income
for the period - - 2 836 (578) 2 258 (35) 2 223
Profit for the period - - 2 827 - 2 827 39 2 866
Other comprehensive income/
(losses) for the period - - 9 (578) (569) (74) (643)
Cash dividends - - (1 527) - (1 527) - (1 527)
Shares repurchased - (101) - - (101) - (101)
Cost of shares vested and
transferred to participants
in terms of the 2012 restricted
share scheme - 29 - (29) - - -
Utilisation of treasury shares in
respect of the exercise of options in
terms of the 1998 share option scheme - 15 - (7) 8 - 8
Share-based payments - - - 61 61 - 61
Acquisition of non-controlling
interest - - - - - (1) (1)
Movement in put option liability - - - 126 126 36 162
Balance at 2 July 2017 706 (939) 10 212 (529) 9 450 - 9 450
Dividends (cents per share) 2018 2017
Cash final - payable/paid September 159 182
Cash interim - paid March 261 270
Total 420 452
SUMMARISED GROUP STATEMENTS OF CASH FLOWS
52 weeks 53 weeks
to 1 Jul to 2 Jul
2018 2017
Audited Audited
Rm Rm
CASH FLOWS FROM OPERATING ACTIVITIES
Cash flow from trading and cash EBITDA* 2 965 3 189
Working capital movements 172 (151)
Cash generated from operations 3 137 3 038
Interest received 1 425 1 473
Dividends received 8 24
Finance costs (244) (292)
Tax paid (855) (1 256)
Cash inflow from operations 3 471 2 987
Cash dividends paid (1 925) (1 527)
Net cash from operating activities 1 546 1 460
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of plant and equipment to expand operations (344) (341)
Acquisition of plant and equipment to maintain operations (86) (90)
Acquisition of computer software (55) (37)
Proceeds on disposal of shares - 8
Net acquisition of business (8) -
Premiums paid to insurance cell (9) (12)
Amounts received from insurance cell 5 3
Loans and receivables repaid 2 14
Loans advanced (47) -
Disposal of mutual fund units 1 -
Payment of contingent consideration obligation (62) (42)
Net cash used in investing activities (603) (497)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds on shares issued 23 -
Shares repurchased by subsidiaries (184) (101)
Borrowings repaid (2 979) (324)
Borrowings incurred 800 -
Contributions to post-retirement medical benefit plan asset (3) (3)
Acquisition of non-controlling interest (2) -
Net cash used in financing activities (2 345) (428)
Net (decrease)/increase in cash and cash equivalents (1 402) 535
Cash and cash equivalents at the beginning of the period 2 055 1 592
Net foreign exchange difference 66 (72)
CASH AND CASH EQUIVALENTS AT THE REPORTING DATE 719 2 055
Key ratios
Cash flow per share (cents) 807.4 697.2
Cash equivalent earnings per share (cents) 738.3 766.3
Cash realisation rate (%) 109 91
* Earnings before interest received, finance costs, tax, depreciation and amortisation.
SELECTED EXPLANATORY NOTES
1 STATEMENT OF COMPLIANCE
The information in these summarised consolidated financial statements has been extracted from the
Group's 2018 annual financial statements, except for the information disclosed in note 15
(refer to note 15 for further detail). The summarised consolidated financial statements have been
prepared in compliance with International Financial Reporting Standards (IFRS), the SAICA
Financial Reporting Guides as issued by the Accounting Practices Committee, Financial Reporting
Pronouncements as issued by the Financial Reporting Standards Council, IAS 34: Interim Financial
Reporting, the South African Companies Act (71 of 2008, as amended) and the Listings Requirements
of the JSE. Any forward-looking statement in this announcement has neither been reviewed nor
reported on by the company's external auditor, Ernst & Young Inc.
The preliminary report and these summarised consolidated financial statements have been prepared
under the supervision of Mr DB Pfaff CA(SA), the Chief Financial Officer of the Group.
These summarised consolidated financial statements for the year ended 1 July 2018 have been
audited by Ernst & Young Inc., who expressed an unmodified opinion thereon. The auditor also
expressed an unmodified opinion on the annual consolidated financial statements from which these
summarised consolidated financial statements were derived.
A copy of the auditor's report on the summarised consolidated 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 audit report on the summarised annual financial statements does not necessarily report on
all of the information contained in this preliminary report. 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 on the summarised financial statements.
2 BASIS OF PREPARATION
The Group's annual financial statements for the period ended 1 July 2018 have been prepared in
accordance with the going concern and historical cost bases except where otherwise indicated.
The accounting policies are applied consistently throughout the Group. The presentation and
functional currency used in the preparation of the Group and company financial statements is
the South African Rand (ZAR or Rand) and all amounts are rounded to the nearest million,
except where otherwise indicated.
3 ACCOUNTING POLICIES AND METHODS OF COMPUTATION
3.1 The accounting policies and methods of computation applied in the preparation of the Group's
2018 annual financial statements comply with IFRS and are consistent with those applied in
the preparation of the Group's annual financial statements for the prior period ended
2 July 2017, with the exception of the amendment to IAS 7: Statement of Cash Flows -
Disclosure, which is effective from the current reporting period and requires disclosures
that enable investors to evaluate changes in liabilities arising from financing activities,
including changes arising from cash flows and non-cash changes.
Other IFRS, amendments and International Financial Reporting Interpretations Committee
(IFRIC) interpretations not applicable to Group activities
Various other new and amended IFRS and IFRIC interpretations have been issued and are
effective in the reporting period but they are not applicable to the Group's activities.
3.2 IFRS, amendments and IFRIC interpretations issued but not yet effective
The following IFRS and amendments, that are relevant to the Group, have been issued but
are not effective for the period under review. The Group will adopt these no later than
their effective dates, to the extent that they are applicable to its activities:
Amendments to IFRS 2: Share-based Payments - Classification and Measurement
Effective for annual periods beginning on or after 1 January 2018
The amendments contain requirements regarding the accounting for cash-settled share-based
payment transactions that include a performance condition, the classification of share-based
payment transactions with net settlement features and the accounting for modifications of
share-based payment transactions from cash-settled to equity-settled.
These amendments are not expected to impact the Group, as the principles required by the
amendments are either already applied by the Group, in the case of the amendments related
to the accounting for cash-settled share-based payment transactions that include a
performance condition, or they are not applicable to the Group, in the case of the
amendments related to the classification of share-based payment transactions with net
settlement features and the accounting for modifications of share-based payment transactions
from cash-settled to equity-settled.
IFRS 9: Financial Instruments - Recognition and Measurement
Effective for annual periods beginning on or after 1 January 2018
IFRS 9 will replace IAS 39 and it addresses the classification, measurement and derecognition
of financial assets and financial liabilities, and introduces new rules for hedge accounting
and a new impairment model for financial assets.
Under the new standard the Group is required to recognise either 12-month or lifetime
expected credit losses in respect of its trade receivables, depending on whether there has
been a significant increase in credit risk since initial recognition. The measurement of
expected credit losses would reflect a probability-weighted outcome, the time value of money,
and reasonable and supportable information.
Impairment losses are expected to be recognised earlier and will likely result in a higher
doubtful debt allowance than is currently determined under IAS 39 due to the incorporation
of forward-looking information, the application of a default rate to all debtors and the
recognition of lifetime expected credit losses.
Based on the assessments undertaken to date, management will be adopting the general
impairment approach as the Group's accounting policy for trade receivables.
The Group will adopt the new standard by using the modified retrospective approach with
effect from 2 July 2018, applying the practical methods permitted under the standard.
Comparative amounts for the 2018 reporting period will not be restated.
IFRS 15: Revenue Recognition
Effective for annual periods beginning on or after 1 January 2018
The Group has reviewed the new standard and the only impact relates to the recognition of
the sales returns provision. IFRS 15 requires revenue and cost of sales to be adjusted for
the selling and cost prices of the expected returns of merchandise against the sales
return provision and inventory respectively.
The impact of the above will result in reclassifications between sales and cost of sales in
the statement of comprehensive income and inventory and provisions in the statement of
financial position. As the Group currently provides for the net effect of the above against
sale of merchandise and the returns provision, the impact on profit or loss is not expected
to be material.
The Group will adopt the new standard with effect from 2 July 2018 and apply it on the
modified retrospective basis. Comparative amounts for 2018 will not be restated.
IFRS 16: Leases - Recognition and Measurement
Effective for annual periods beginning on or after 1 January 2019
The standard will replace IAS 17 and requires most leases of lessees to be recognised in
the statement of financial position, as the distinction between finance and operating leases
has been removed.
It is anticipated that leases relating to retail stores will result in the recognition of
a lease liability and a corresponding right of use asset. While the Group's EBITDA and
EBITDA margin will improve, depreciation and finance charges will increase and occupancy
costs will decrease. Return on assets will also be negatively impacted. Recognising a
lease liability will also impact net debt and the net debt to EBITDA ratio.
The Group will adopt the standard with effect from 1 July 2019 and apply it on either a
full or a modified retrospective basis.
3.3 Basis of consolidation of financial results
The Group consolidated annual financial statements comprise the annual financial statements
of the company and its consolidated subsidiaries and are prepared using uniform accounting
policies for like transactions and other events in similar circumstances.
52 weeks 53 weeks
to 1 Jul to 2 Jul
2018 2017
Audited % Audited
Rm change Rm
4 REVENUE
Sale of merchandise 17 547 (3) 18 065
Retail sales 17 963 18 472
Accounting adjustments* (518) (518)
Delivery fee income 51 53
Wholesale sales 46 50
Franchise sales 5 8
Interest received 1 420 (4) 1 478
Trade receivables interest 1 286 1 366
Investment interest 134 112
Other income 279 (4) 291
Commission 128 137
Display fees 56 63
Financial services income 58 54
Lease rental income 26 27
Other 7 6
Insurance recoveries 3 2
Royalties 1 2
Dividends received from insurance business arrangements 8 24
Total revenue 19 254 (3) 19 858
* Accounting adjustments made in terms of IFRS and generally accepted accounting practice relating
to promotional vouchers, staff discounts on merchandise purchased, cellular retail sales,
notional interest on non-interest-bearing trade receivables and the sales returns provision.
52 weeks 53 weeks
to 1 Jul to 2 Jul
2018 2017
Audited Audited
Rm Rm
5 RECONCILIATION OF PROFIT FOR THE PERIOD TO HEADLINE EARNINGS
Profit for the period, attributable to equity holders of the company 2 643 2 827
Adjusted for:
Impairment of fixed and financial assets 1 9
Loss on write-off of plant and equipment 3 -
Headline earnings 2 647 2 836
6 GOODWILL
Balance at the beginning of the reporting period 1 552 1 805
Movement in exchange rate through other comprehensive income 77 (253)
Balance at the reporting date 1 629 1 552
Goodwill acquired through business combinations is allocated to the
Truworths Ltd and Office Retail Group Ltd cash-generating units and
tested for impairment biannually at each reporting date.
7 INTANGIBLE ASSETS
Balance at the beginning of the reporting period 3 037 3 631
Additions 55 37
Additions arising on acquisition of Loads of Living 2 -
Disposals - -
Cost (42) (6)
Accumulated amortisation 42 6
Amortisation (46) (41)
Movement in exchange rate through other comprehensive income 179 (590)
Balance at the reporting date 3 227 3 037
The trademarks have been allocated to the Truworths Ltd and Office Retail
Group Ltd cash-generating units, are considered to have an indefinite useful
life and are tested for impairment biannually at each reporting date.
52 weeks 53 weeks
to 1 Jul to 2 Jul
2018 2017
Audited Audited
R'000 R'000
8 SHARE CAPITAL
Ordinary share capital
Authorised
650 000 000 (2017: 650 000 000) ordinary shares of 0.015 cent each 98 98
Issued and fully paid
442 589 686 (2017: 442 059 551) ordinary shares of 0.015 cent each 66 66
The company has one class of ordinary shares which carry no rights to fixed income.
The holders of ordinary shares are entitled to receive dividends as declared from time to time
and are entitled to one vote per share at meetings of the company's shareholders.
Number of Number of
shares shares
000's 000's
Reconciliation of movement in issued shares
Balance at the beginning of the reporting period 442 059 436 183
Shares issued during the period 530 -
Capitalisation award - 5 876
Balance at the reporting date 442 589 442 059
Treasury shares held by subsidiaries (14 329) (12 649)
Number of shares in issue (net of treasury shares) 428 260 429 410
Treasury shares as a % of the issued shares at the reporting date 3.2 2.9
Shares issued during the period were allotted for an aggregate nominal value of R79.54 and an
aggregate premium of R22 809 072. Shares issued during the prior period pursuant to the
capitalisation award were allotted for an aggregate nominal value of R881 with a corresponding
reduction in share premium.
52 weeks 53 weeks
to 1 Jul to 2 Jul
2018 2017
Audited Audited
Rm Rm
9 TREASURY SHARES
Balance at the beginning of the reporting period 939 882
Shares repurchased in respect of the 2012 restricted share scheme 184 -
Shares repurchased in accordance with the general repurchase programme - 101
Utilisation of treasury shares in respect of the exercise of options
in terms of the 1998 share option scheme - (15)
Cost of shares vested and transferred to participants in terms of the
2012 restricted share scheme (40) (29)
Balance at the reporting date 1 083 939
10 INTEREST-BEARING BORROWINGS
Balance at the beginning of the reporting period, comprising: 3 785 4 408
Non-current portion of interest-bearing borrowings 3 641 4 042
Current portion of interest-bearing borrowings 144 366
Borrowings repaid (2 979) (324)
Borrowings incurred 800 -
Movement in exchange rate through other comprehensive income 75 (314)
Amortisation of arrangement fees 18 12
Net finance charges accrued (12) 3
Balance at the reporting date, comprising: 1 687 3 785
Non-current portion of interest-bearing borrowings 1 268 3 641
Current portion of interest-bearing borrowings 419 144
The R2.6 billion variable-rate long-term loans comprising South African Rand-based debt in the
form of three separate unsecured facilities advanced to the Group's main operating subsidiary,
Truworths Ltd, were repaid during the reporting period and refinanced with an unsecured term loan
of R500 million repayable in June 2021 and an unsecured revolving credit facility of
R1.2 billion. These facilities bear variable interest at margins of 1.35 and 1.29 percentage
points respectively above the three-month Johannesburg Interbank Agreed Rate (JIBAR).
11 BUSINESS COMBINATIONS
Acquisition of Loads of Living
With effect from 31 October 2017 the Group acquired Loads of Living, a linen and homeware
retailer with 13 stores in South Africa, as a going concern. From this date Loads of Living
became a trading department of the Group's main operating subsidiary Truworths Ltd. The total
purchase consideration payable was R4.8 million of which R1.3 million was placed in escrow.
The purchase consideration has been allocated to the identifiable assets and liabilities at the
acquisition date. Additional identifiable assets (including trademarks) and liabilities have been
recognised on completion of the purchase price allocation, with a corresponding reduction in
goodwill. A gain (i.e. a bargain purchase) of R64 000 has been recognised in profit and loss.
12 SEGMENT REPORTING
The Group's reportable segments have been identified as the Truworths and Office business units.
The Truworths business unit comprises all the retailing activities conducted by the Group in
Africa through which the Group retails fashion apparel comprising clothing, footwear and other
fashion products as well as homeware. Included in the Truworths business unit is the YDE business
unit which comprises the agency activities through which the Group retails clothing, footwear
and related products on behalf of emerging South African designers, as well as the Loads of
Living business unit which retails homeware. The Office business unit comprises the footwear
retail activities conducted by the Group through stores, concession outlets and an e-commerce
channel in the United Kingdom, Germany and the Republic of Ireland.
Management monitors the operating results of the business segments separately for the purpose
of making decisions about resources to be allocated and of assessing performance. Segment
performance is reported on an IFRS basis and evaluated based on revenue and profit before tax.
Consolidation
Truworths Office entries Group
Rm Rm Rm Rm
2018
Total third party revenue 14 328 4 940 (14) 19 254
Third party 14 318 4 936 - 19 254
Inter-segment 10 4 (14) -
Trading expenses 5 044 1 920 (10) 6 954
Depreciation and amortisation 289 98 - 387
Employment costs 1 474 639 (4) 2 109
Occupancy costs 1 462 778 - 2 240
Trade receivable costs 1 099 - - 1 099
Other operating costs 720 405 (6) 1 119
Interest received 1 419 1 - 1 420
Finance costs 222 28 - 250
Profit for the period 2 465 200 - 2 665
Profit before tax 3 445 251 - 3 696
Tax expense (980) (51) - (1 031)
EBITDA 3 956 377 - 4 333
Segment assets 12 734 6 222 (3 465)* 15 491
Segment liabilities 2 477 2 650 (5)* 5 122
Capital expenditure 419 66 - 485
Other segmental information
Gross margin (%) 55.5 44.4 - 52.4
Trading margin (%) 17.8 5.6 - 14.4
Operating margin (%) 29.1 5.6 - 22.5
Inventory turn (times) 4.8 3.1 - 4.0
Account:cash sales mix (%) 69:31 0:100 - 50:50
* Elimination of investment in Office as well as inter-segment assets and liabilities.
Consolidation
Truworths Office entries Group
Rm Rm Rm Rm
2017
Total third party revenue 14 699 5 163 (4) 19 858
Third party 14 695 5 163 - 19 858
Inter-segment 4 - (4) -
Trading expenses 5 158 1 932 (4) 7 086
Depreciation and amortisation 277 112 - 389
Employment costs 1 438 656 - 2 094
Occupancy costs 1 361 794 - 2 155
Trade receivable costs 1 207 2 - 1 209
Other operating costs 875 368 (4) 1 239
Interest received 1 477 1 - 1 478
Finance costs 253 42 - 295
Profit for the period 2 514 352 - 2 866
Profit before tax 3 510 405 - 3 915
Tax expense (996) (53) - (1 049)
EBITDA 4 040 559 - 4 599
Segment assets 13 633 5 966 (3 460)* 16 139
Segment liabilities 3 852 2 837 - 6 689
Capital expenditure 407 60 - 467
Other segmental information
Gross margin (%) 55.2 46.0 - 52.6
Trading margin (%) 17.5 8.6 - 15.0
Operating margin (%) 29.2 8.7 - 23.3
Inventory turn (times) 5.2 3.5 - 4.5
Account:cash sales mix (%) 70:30 0:100 - 50:50
* Elimination of investment in Office as well as inter-segment assets and liabilities.
2018 2017
Contribution Contribution
to revenue to revenue
Rm % Rm %
Third party revenue
South Africa 13 812 71.7 14 158 71.3
United Kingdom 4 425 23.0 4 618 23.3
Germany 252 1.3 272 1.4
Namibia 213 1.1 228 1.1
Republic of Ireland 206 1.1 185 0.9
Botswana 104 0.6 98 0.5
Swaziland 98 0.5 99 0.5
Zambia 30 0.2 32 0.2
Rest of Europe 28 0.2 31 0.2
Lesotho 23 0.1 20 0.1
Mauritius 21 0.1 21 0.1
United States 16 0.1 28 0.1
Kenya 9 -* 17 0.1
Ghana 8 -* 22 0.1
Middle East and Asia 5 -* 17 0.1
Australia 4 -* 12 0.1
Total third party revenue 19 254 100 19 858 100
* Zero due to rounding.
1 Jul 2 Jul
2018 2017
Audited Audited
Rm Rm
13 CAPITAL COMMITMENTS
Capital expenditure authorised but not contracted:
Store renovation and development 415 431
Computer software and infrastructure 160 132
Buildings - 39
Head office refurbishment 10 23
Motor vehicles 7 5
Distribution facilities 14 6
606 636
Capital expenditure authorised and contracted:
Head office refurbishments 5 -
Buildings 135 -
Total 746 636
The capital commitments will be financed through cash generated from operations, available cash
resources and financing facilities and are expected to be incurred in the 2019 reporting period.
14 EVENTS AFTER THE REPORTING DATE
No event, material to the understanding of these summarised financial statements, has occurred
between the reporting date and the date of approval.
15 IMPACT OF THE 53rd WEEK IN 2017 ON 2018 YEAR-END FINANCIAL REPORTING
In line with the practice generally prevailing in the South African retail industry, the Group
manages its internal accounting and retail operations in accordance with a retail calendar,
which treats each financial year as an exact 52-week period. This treatment effectively results
in the "loss" of a day (or two in a leap year) per calendar year. These days are brought to
account every four to seven years by including a 53rd week in the financial reporting calendar.
Due to the inclusion of a 53rd week in the 2017 financial period, the 52 weeks of the current period
are not comparable to the 53 weeks of the prior period in terms of number of weeks and dates.
Although the Group has reported comparative financial results for the 53 weeks to 2 July 2017,
it is useful and good governance to also report information for the directly corresponding
52-week prior period from 4 July 2016 to 2 July 2017, in order to facilitate comparisons of
the current period's results against such comparable prior period results. These adjustments
are not expected to have a continuing effect as they will only occur in every 53-week period.
The preparation of the unaudited pro forma comparable 52-week prior period financial information
is the responsibility of the directors. The tables below illustrate how the current period's
results compare to the directly corresponding 52-week prior period (i.e. 4 July 2016 to
2 July 2017), by excluding the results of week 1 of the prior period.
The unaudited pro forma comparable 52-week prior period information for the period ended
2 July 2017 has been prepared for illustrative purposes only, to indicate how the actual
audited results of the Group for the current period compare to such information and, because
of its nature, may not fairly represent the Group's financial position, changes in equity,
results of operations or cash flows of the prior period.
The estimated financial impact of the 53rd week on the 2017 results is shown below.
Statements of comprehensive income
52 weeks to
2 Jul 2017
53 weeks to Unaudited Change on Change on
52 weeks to 2 Jul 2017 pro forma prior period prior period
1 Jul 2018 Audited 1st week comparable reported comparable
Audited (As reported) adjustments weeks 53 weeks 52 weeks
Rm Rm Rm Rm % %
Sale of merchandise 17 547 18 065 (483) 17 582 (3) -
Retail sales (refer to the table below) 17 963 18 472 (482) 17 990 (3) -
Accounting adjustments/other sales (416) (407) (1) (408) 2 2
Cost of sales (8 354) (8 562) 226 (8 336) (2) -
Gross profit 9 193 9 503 (257) 9 246 (3) (1)
Other income 279 291 - 291 (4) (4)
Trading expenses (6 954) (7 086) 13 (7 073) (2) (2)
Depreciation and amortisation (387) (389) - (389) (1) (1)
Employment costs (2 109) (2 094) 7 (2 087) 1 1
Occupancy costs (2 240) (2 155) 3 (2 152) 4 4
Trade receivable costs (1 099) (1 209) - (1 209) (9) (9)
Other operating costs (1 119) (1 239) 3 (1 236) (10) (9)
Trading profit 2 518 2 708 (244) 2 464 (7) 2
Interest received 1 420 1 478 (1) 1 477 (4) (4)
Dividends received 8 24 - 24 (67) (67)
Operating profit 3 946 4 210 (245) 3 965 (6) -
Finance costs (250) (295) 6 (289) (15) (13)
Profit before tax 3 696 3 915 (239) 3 676 (6) 1
Tax expense (1 031) (1 049) 64 (985) (2) 5
Profit for the period 2 665 2 866 (175) 2 691 (7) (1)
Attributable to:
Equity holders of the company 2 643 2 827 (172) 2 655 (7) -
Holders of the non-controlling interest 22 39 (3) 36 (44) (39)
Profit for the period 2 665 2 866 (175) 2 691 (7) (1)
Statements of comprehensive income
52 weeks to
2 Jul 2017
53 weeks to Unaudited Change on Change on
52 weeks to 2 Jul 2017 pro forma prior period prior period
1 Jul 2018 Audited 1st week comparable reported comparable
Audited (As reported) adjustments weeks 53 weeks 52 weeks
Rm Rm Rm Rm % %
Basic earnings per share (cents) 614.8 659.9 (40.2) 619.7 (7) (1)
Headline earnings per share (cents) 615.7 662.0 (40.2) 621.8 (7) (1)
Diluted basic earnings per share
(cents) 611.8 658.8 (40.1) 618.7 (7) (1)
Diluted headline earnings per share
(cents) 612.7 660.9 (40.1) 620.8 (7) (1)
Weighted average number of shares
in issue (millions) 429.9 428.4 428.4
Diluted weighted average number of
shares in issue (millions) 432.0 429.1 429.1
Key ratios
Gross margin (%) 52.4 52.6 52.6
Trading expenses to sale of
merchandise (%) 39.6 39.2 40.2
Trading margin (%) 14.4 15.0 14.0
Operating margin (%) 22.5 23.3 22.6
Retail sales
Truworths ladieswear (Rm) 3 753 3 988 (128) 3 860 (6) (3)
Truworths designer emporium (Rm) 1 383 1 436 (40) 1 396 (4) (1)
Total Truworths ladieswear (Rm) 5 136 5 424 (168) 5 256 (5) (2)
Truworths menswear (Rm) 3 663 3 759 (103) 3 656 (3) -
Identity (Rm) 2 082 2 129 (62) 2 067 (2) 1
Truworths kids emporium (Rm) 925 896 (24) 872 3 6
Other (Rm) 1 309 1 183 (24) 1 159 11 13
Truworths* (Rm) 13 115 13 391 (381) 13 010 (2) 1
Office (Rm) 4 848 5 081 (101) 4 980 (5) (3)
Group retail sales (Rm) 17 963 18 472 (482) 17 990 (3) -
Office (£m) 281 294 (6) 288 (4) (2)
* The 53 weeks to 2 July 2017 has been restated based on Truworths' new internal department
structure. The restatement did not affect total reported retail sales for the said period.
Notes:
1 The accounting policies and methods of computations applied in the 2017 audited annual financial
statements, which have been prepared in accordance with IFRS, have been used in preparing the
unaudited pro forma comparable 52-weeks information.
2 The information contained in the "52 weeks to 1 Jul 2018" and "53 weeks to 2 Jul 2017" columns have
been extracted without adjustment from the published, audited results for the respective periods.
3 The amounts in the "1st week adjustments" column relate to sale of merchandise, the related cost
of sales (calculated with reference to the gross profit margin for the 53-week prior period), weekly
payroll expense, concession rent, direct e-commerce costs, interest received, finance costs and tax
expense (calculated with reference to the applicable statutory tax rate) for the one-week period
from 27 June 2016 to 3 July 2016, together with the resultant gross profit, trading profit, operating
profit, profit before tax and profit for the said one-week period.
4 The trading expenses, interest received and finance costs for the one-week periods from 27 June 2016
to 3 July 2016 and 26 December 2016 to 1 January 2017 respectively were not adjusted when preparing
the information for the comparable 26 weeks ended 1 January 2017, which information was disclosed
as note 14 in the unaudited group interim report for the period to December 2017, as it was
assumed that these line items for both these one-week periods were similar and should therefore
cancel out in all material respects, notwithstanding that these periods were six months apart.
As only one week is required to be adjusted in order to prepare the results for the unaudited
pro forma comparable 52-week prior period ended 2 July 2017, the trading expenses, interest
received and finance costs for the one-week period from 27 June 2016 to 3 July 2016 have been
adjusted from the results for the 53 weeks to 2 July 2017. The other numbers in the "1st week
adjustments" column also do not correlate with what was disclosed in note 14 of the unaudited
Group interim report for the period to December 2017 due to the difference in the average
exchange rate used to translate the results of Office over these respective periods.
5 The relevant amounts for the one-week periods from 27 June 2016 to 3 July 2016 have been
extracted from the Group's accounting records with the exception of interest received which
has been recalculated based on the daily investment balances and prevailing interest rates.
6 The "1st week adjustments" column, in the opinion of the directors, fairly reflects the results
of the one-week period from 27 June 2016 to 3 July 2016.
7 The calculation of earnings per share and headline earnings per share for the unaudited pro
forma comparable 52-week period is based on the weighted average number of shares in issue
over that period.
8 The Group's external auditor has issued an assurance report on the unaudited pro forma
comparable 52-weeks information. A copy of the said report is available at the Group's
registered office.
ADMINISTATION
Truworths International Ltd
Registration number 1944/017491/06
Tax reference number 9875/145/71/7
JSE code: TRU
NSX code: TRW
ISIN: ZAE000028296
Company secretary
Chris Durham, FCIS, PG Dip. Adv. Co Law (UCT)
Registered office
No. 1 Mostert Street, Cape Town, 8001, South Africa
Postal address
PO Box 600, Cape Town, 8000, South Africa
Contact details
Tel: +27 (21) 460 7911 Telefax: +27 (21) 460 7132
www.truworths.co.za
www.office.co.uk
Principal bankers
The Standard Bank of South Africa Ltd
Lloyds Bank plc
Auditors
Ernst & Young Inc.
Attorneys
Bernadt Vukic Potash and Getz
Edward Nathan Sonnenbergs
Spoor & Fisher
Webber Wentzel
Bowman Gilfillan
Shoosmiths
Sponsor in South Africa
One Capital Sponsor Services (Pty) Ltd
Sponsor in Namibia
Merchantec Capital Namibia (Pty) Ltd
Transfer secretaries
In South Africa
Computershare Investor Services (Pty) Ltd
Rosebank Towers, 15 Biermann Avenue, Rosebank, 2196, South Africa
PO Box 61051, Marshalltown, 2107, South Africa
Tel: +27 (11) 370 5000 Telefax: +27 (11) 688 5248
www.computershare.com
In Namibia
Transfer Secretaries (Pty) Ltd
Robert Mugabe Avenue No. 4
Windhoek, Namibia
PO Box 2401, Windhoek, Namibia
Tel: +264 (61) 22 7647 Telefax: +264 (61) 24 8531
Investor relations
David Pfaff (CFO)
Tel: +27 (21) 460 7956
Graeme Lillie (Tier 1 Investor Relations)
Tel: +27 (21) 702 3102
Directors
H Saven (Chairman)§‡, MS Mark (CEO)*, DB Pfaff (CFO)*, DN Dare*, RG Dow§‡, JHW Hawinkels§‡,
M Makanjee§‡, CT Ndlovu§‡, RJA Sparks§‡, AJ Taylor§‡ and MA Thompson§‡
* Executive § Non-executive ‡ Independent
Date: 16/08/2018 03:20:00 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
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
Sharenet Sites 
