Wrap Text
Interim results for the six months ended 31 August 2019
Long4Life Limited
("L4L", "the Group", or "the company")
Incorporated in the Republic of South Africa
Registration number: 2016/216015/06
Share code: L4L
ISIN: ZAE000243119
INTERIM RESULTS
for the six months ended 31 August 2019
This is a summary of the information in the full results announcement, which is available on the Long4Life website www.long4life.co.za
Financial highlights
Sales
R1.838 billion
UP 20%
2018: R1.530 billion
Gross profit
R719 million
UP 15%
2018: R628 million
Trading profit
R201 million R176 million
Incl. IFRS 16 in Like-for-like* excl.
2019 IFRS 16 impact
for both years
UP 13% DOWN 1%
2018: R178 million
HEPS & EPS
14.5 cents 15.4 cents
Incl. IFRS 16 in Like-for-like* excl.
2019 IFRS 16 impact
for both years
DOWN 9% DOWN 4%
2018: 16.0 cents
* The new lease standard IFRS 16, which requires the lessee to recognise all lease contracts on the balance sheet, has been adopted for the Group
for its year ending 28 February 2020. To provide a more meaningful assessment of the current period´s performance, and unless otherwise stated,
the commentary below has been provided excluding the impact of IFRS 16 in both the current and prior periods.
Long4Life holds a portfolio of assets in the leisure and lifestyle sector incorporating retail, wholesale, manufacturing, service, merchandising,
distribution and ecommerce.
The Group has delivered a reasonable performance for the six months ended 31 August 2019, considering the difficult trading environment.
Revenue increased by 20% to R1.84 billion (Aug 2018: R1.53 billion) and the gross profit was higher at R718.9 million (Aug 2018: R627.5 million),
at a gross margin of 39.1% (Aug 2018: 40.9%). The trading profit was relatively flat at R176.2 million (Aug 2018: R177.6 million) at a reduced
margin of 9.6% (Aug 2018: 11.6%).
The Group has continued to invest in infrastructure, store development and marketing in order to enhance the competitiveness and sustainability
of the businesses. This additional expenditure has impacted both margins and returns in the short term, resulting in a return on funds
employed (ROFE) of 38%.
Notwithstanding that the trading environment is expected to remain difficult with constrained consumer spending, management remains
confident of the Group's ability to execute in terms of its strategic imperatives. Long4Life is targeting earnings growth for the full year,
which is underpinned by strong brands and services that remain appealing to many consumers. Given the seasonality of the businesses,
the divisions traditionally have higher operating leverage in the second half of the year. The Group's balance sheet strength continues to provide
opportunities to assess internal and external possibilities.
The objective of creating the lifestyle group of choice in South Africa remains firm and intact.
The financial information contained in this publication has not been reviewed or reported on by the company's external auditors.
The short-term announcement is the responsibility of the company's directors and is a summary of the information contained in the full results
announcement. The full announcement was released on 14 October 2019 on the Stock Exchange News Services of the JSE Limited and
on the Company's website at www.long4life.co.za. Copies of the full announcement may also be requested at the Company's registered
office and sponsor, at no charge, during office hours. Any investment decisions by investors and/or shareholders should be based on a
consideration of the full announcement.
https://senspdf.jse.co.za/documents/2019/jse/isse/l4le/HY_2019.pdf
On behalf of the board
Brian Joffe Mireille Levenstein
Chief executive officer Chief financial officer
CORPORATE INFORMATION
Long4Life Limited Registered office Sponsor
("L4L", "the Group", or "the company") 7th Floor, Rosebank Towers The Standard Bank of South Africa Limited
Incorporated in the Republic of South Africa 13 - 15 Biermann Avenue 30 Baker Street, Rosebank
Registration number: 2016/216015/06 Rosebank, Johannesburg, 2196 South Africa, 2196
Share code: L4L Box 521870, Saxonwold, 2132
ISIN: ZAE000243119
Further information regarding our group can be found on the Long4Life website: www.long4life.co.za
Date: 14/10/2019 09:30:00
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