| Mon 10 Sep 2007, 15:21 | | SHF - Steinhoff - Audited Results For The Year End |
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SHF
SHF
SHF - Steinhoff - Audited Results For The Year Ended 30 June 2007
Steinhoff International Holdings Limited
Registration number: 1998/003951/06
(Incorporated in the Republic of South Africa)
JSE share code: SHF & ISIN code: ZAE000016176
(Steinhoff or the company or the group)
AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2007
Highlights
Headline earnings increase by 31% to R2 558 million
Headline earnings per ordinary share increase by 25%
to 215 cents per share
R3,5 billion cash generated from operations
Net asset value per share increase by 34%
to 1 292 cents per share
Distribution to shareholders increase by
33% to 50 cents per share
CONDENSED CONSOLIDATED INCOME STATEMENT
Audited Audited
Restated(*)
Year ended Year ended
30 June 30 June
2007 2006 %
Note R`000 R`000 change
Revenue 34 228 573 30 158 994 13
Operating profit
before depreciation
and
capital items 3 932 691 3 230 603 22
Depreciation (720 539) (637 541)
Operating profit 3 212 152 2 593 062 24
before capital items
Capital items 1 (234 500) (88 141)
Earnings before 2 977 652 2 504 921 19
interest, income from
investments,
associated earnings
and taxation
Net finance charges (453 827) (292 278)
Dividend income 24 209 17 382
Earnings before 2 548 034 2 230 025 14
associated earnings
and taxation
Share of profit of 67 159 61 083
associate companies
Profit before 2 615 193 2 291 108 14
taxation
Taxation (325 208) (382 635)
Profit for the year 2 289 985 1 908 473 20
from continuing
operations
Profit for the year 142 552 104 833
from discontinued
operations
Profit on disposal of 541 903 -
discontinued
operations
Profit for the year 2 974 440 2 013 306 48
Attributable to:
Equity holders of the 2 969 621 1 949 165 52
parent
Minority interest 4 819 64 141
Profit for the year 2 974 440 2 013 306 48
Headline earnings per 215,3 172,5 25
ordinary share
(cents)
Diluted headline 208,6 169,1 23
earnings per ordinary
share (cents)
From continuing and
discontinued
operations:
- Basic earnings per 241,9 165,6 46
share (cents)
- Fully diluted 234,4 162,3 44
earnings per share
(cents)
From continuing
operations:
- Basic earnings per 184,3 156,3 18
share (cents)
- Fully diluted 178,5 153,2 17
earnings per share
(cents)
Number of shares in 1 256 453 1 141 442 10
issue (`000)
Weighted average 1 188 015 1 133 345 5
number of shares in
issue (`000)
Earnings attributable 2 2 873 508 1 876 483 53
to ordinary
shareholders (R`000)
Headline earnings 3 2 557 638 1 955 142 31
attributable to
ordinary shareholders
(R`000)
Distribution per 50 37,5 33
ordinary share
(cents)
Average currency 9,4103 7,8196 20
translation rate
(rand:euro)
ADDITIONAL INFORMATION
(*)Audited restated
Prior year figures have been restated to reflect the effects of provisionally
determined and changes to fair values of prior year business combinations, early
adoption of IFRIC 11, the group`s discontinued operations, change in accounting
policy related to common control transactions and reclassifications.
Note 1: Capital items
Closure costs (177 994) (54 095)
Loss on scrapping of rental fleet (8 523) -
vehicles
Profit on disposal of business 978 1 907
Profit/(loss) on disposal of
property, plant
and equipment 32 940 (8 911)
Impairments (81 901) (27 042)
(234 500) (88 141)
Profit on disposal of discontinued 541 903 -
operations
Capital items included in
discontinued
operations (6 678) (216)
300 725 (88 357)
Note 2: Earnings attributable to
ordinary shareholders
Earnings attributable to equity 2 969 621 1 949 165
holders
Dividend entitlement on non- (96 113) (72 682)
redeemable cumulative preference
shares (including STC)
2 873 508 1 876 483 53
Note 3: Headline earnings
calculation
Earnings attributable to equity 2 969 621 1 949 165
holders
Adjustment for:
Capital items (note 1) (300 725) 88 357
Taxation effects on capital items (14 150) (5 614)
Share of minorities in capital (995) (4 084)
items
Dividend entitlement on non- (96 113) (72 682)
redeemable cumulative preference
shares (including STC)
Headline earnings for the year 2 557 638 1 955 142 31
attributable to ordinary
shareholders
CONDENSED CONSOLIDATED STATEMENT OF RECOGNISED INCOME AND EXPENSE
Audited Audited
Year ended Restated(*)
30 June 30 June
2007 2006
R`000 R`000
Actuarial gains recognised in equity 37 709 42 155
Exchange differences on consolidation 248 662 651 784
of foreign subsidiaries
Cash flow hedges recognised in equity (50 357) 37 927
Net income recognised directly in 236 014 731 866
equity
Profit for the year 2 974 440 2 013 306
Total recognised income and expenses 3 210 454 2 745 172
for the year
Attributable to:
Equity holders of the parent 3 205 635 2 671 316
Minority interest 4 819 73 856
3 210 454 2 745 172
CONDENSED CONSOLIDATED BALANCE SHEET
Audited Audited
Restated(*)
30 June 30 June
2007 2006
R`000 R`000
ASSETS
Non-current assets
Property, plant and equipment and 7 998 870 5 652 409
biological assets
Intangible assets and goodwill 10 247 043 7 892 510
Investments and loans 3 217 203 3 315 157
Deferred taxation assets 706 213 476 213
22 169 329 17 336 289
Current assets
Accounts receivable, short-term loans 6 848 698 6 309 255
and other current assets
Inventories 3 451 445 3 168 324
Cash and cash equivalents 5 064 987 5 057 428
15 365 130 14 535 007
Total assets 37 534 459 31 871 296
EQUITY AND LIABILITIES
Capital and reserves
Ordinary share capital and reserves 16 232 948 11 016 283
Preference share capital 1 042 474 1 022 122
17 275 422 12 038 405
Minority interest 82 121 728 821
Total equity 17 357 543 12 767 226
Non-current liabilities
Deferred taxation liabilities 991 324 1 037 471
Interest bearing long-term 7 261 391 8 285 902
liabilities
Other long-term liabilities and 418 321 494 070
provisions
8 671 036 9 817 443
Current liabilities
Net interest-bearing liabilities 3 971 412 2 430 415
Accounts payable, provisions and 7 534 468 6 856 212
other current liabilities
11 505 880 9 286 627
Total equity and liabilities 37 534 459 31 871 296
Net asset value per ordinary share 1 292 965
(cents)
Gearing ratio (net) 24% 30%
Closing exchange rate (rand:euro) 9,5735 9,1600
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
Audited Audited
Restated(*)
30 June 30 June
2007 2006
R`000 R`000
Operating profit before working 3 929 485 3 351 690
capital changes
Net changes in working capital (475 637) 134 032
Cash generated from operations 3 453 848 3 485 722
Net finance costs (453 827) (292 278)
Dividends paid (86 603) (44 765)
Dividends received 51 537 26 785
Taxation (377 878) (339 600)
Net cash inflow from operating 2 587 077 2 835 864
activities
Net cash outflow from investing (1 943 674) (5 972 870)
activities
Net cash (outflow)/inflow from (649 852) 3 036 899
financing activities
Net decrease in cash and cash (6 449) (100 107)
equivalents
Effects of exchange rate changes on 14 008 352 910
cash and cash equivalents
Cash and cash equivalents at 5 057 428 4 804 625
beginning of year
Cash and cash equivalents at end of 5 064 987 5 057 428
year
SEGMENTAL ANALYSIS
30 June 2007 30 June 2006 %
R`000 R`000 change
Revenue
Retail activities
- Household goods and 9 175 267 7 974 197 15
building supplies
- Motor vehicles and finance 11 699 666 10 324 243 13
Manufacturing and sourcing
of household goods
and related raw materials 13 786 631 10 534 697 31
Logistical services 3 784 845 3 352 406 13
Corporate services
- Brand management 275 472 -
- Investment participations 176 074 141 276 25
- Central treasury and other 369 510 433 032 (15)
activities
39 267 465 32 759 851 20
Intersegment eliminations (5 038 892) (2 600 857)
34 228 573 30 158 994 13
Operating profit before
capital items
Retail activities
- Household goods and 255 128 157 359 62
building supplies
- Motor vehicles and finance 464 108 326 905 42
Manufacturing and sourcing
of household goods
and related raw materials 1 682 973 1 239 760 36
Logistical services 313 845 278 856 13
Corporate services
- Brand management 275 412 -
- Investment participations 176 035 141 284 25
- Central treasury and other 374 000 401 601 (7)
activities
3 541 501 2 545 765 39
Intersegment eliminations (329 349) 47 297
3 212 152 2 593 062 24
Total assets
Retail activities
- Household goods and 7 665 963 5 239 411 46
building supplies
- Motor vehicles and finance 2 519 547 1 745 039 44
Manufacturing and sourcing
of household goods
and related raw materials 11 534 491 10 199 064 13
Logistical services 3 705 085 2 864 174 29
Corporate services
- Brand management 2 623 039 2 486 475 5
- Investment participations 2 354 667 2 315 713 2
- Central treasury and other 966 975 831 087 16
activities
31 369 767 25 680 963 22
GEOGRAPHICAL INFORMATION
30 June 2007 30 June 2006 %
R`000 R`000 change
Revenue
United Kingdom 7 652 119 7 031 875 9
European Union 6 610 368 5 233 681 26
Pacific Rim 2 662 821 2 260 139 18
Southern Africa 17 303 265 15 633 299 11
34 228 573 30 158 994 13
Non-current assets % %
United Kingdom 5 991 828 27 3 969 624 23
European Union 6 422 771 29 6 483 120 37
Pacific Rim 1 173 434 5 1 004 443 6
Southern Africa 8 581 296 39 5 879 102 34
22 169 329 100 17 336 289 100
RECONCILIATION OF TOTAL ASSETS PER SEGMENT ANALYSIS TO TOTAL ASSETS PER BALANCE
SHEET
30 June 2007 30 June 2006
R`000 R`000
Total assets per balance sheet 37 534 459 31 871 296
Less:
Cash (5 064 987) (5 057 428)
Investments in associate companies (866 282) (772 712)
Investment in preference shares (177 500) (180 000)
Interest bearing loans (55 923) (180 193)
Total assets per segment analysis 31 369 767 25 680 963
SELECTED EXPLANATORY NOTES
Statement of compliance
The consolidated annual financial statements from which these summarised
financial statements have been derived, have been prepared in accordance with
International Financial Reporting Standards (IFRS) and the interpretations
adopted by the International Accounting Standards Board (IASB), and the
requirements of the South African Companies Act. This set of summarised
consolidated financial statements are presented in compliance with IAS 34 -
Interim Financial Reporting.
Basis of preparation
The annual financial statements are prepared in thousands of South African rands
("R`000") on the historical- cost basis, except for certain assets and
liabilities which are carried at amortised cost, and derivative financial
instruments and biological assets which are stated at their fair value.
Financial statements
The consolidated financial statements for the year have been audited by Deloitte
& Touche and their accompanying unmodified audit report as well as their
unmodified audit report on this set of summarised financial information is
available for inspection at the company`s registered office. Full details of the
group`s business combinations for the year, additions and disposals of property,
plant and equipment as well as commitments and contingencies will be included in
the group`s consolidated financial statements.
Changes in accounting policies
The accounting policies of the group have been applied consistently to the
periods presented in the consolidated financial statements, except for:
1. IFRIC 11 - IFRS 2 - Group and Treasury Share Transactions.
This interpretation is required to be applied to accounting periods
commencing on or after 1 March 2007 with earlier adoption permitted. The
group adopted the interpretation during the current year, in the absence of
alternative guidance with regard to group share schemes.
2. Common control transactions - premiums and discounts arising on subsequent
purchases from or sales to minority interest in subsidiaries
Previously, any increases and decreases in ownership interest in
subsidiaries without a change in control were recognised as equity
transactions in the condolidated financial statements. Accordingly, any
premiums or discounts on subsequent purchases of equity instruments from,
or sales of equity instruments to, minorities were recognised directly in
equity of the parent shareholder. During the year, the group changed its
policy and these premiums or discounts are now treated in line with the
group`s policy on goodwill.
3. IFRS 8 - Operating Segments
This interpretation is required to be applied to accounting periods
commencing on or after 1 January 2009, with early application encouraged.
The group elected for early application of IFRS 8 - Operating Segments in
the interest of improved disclosure.
Restatement of comparative figures
Following the acquisition and initial accounting for the Homestyle Group
Plc acquisition on 30 June 2005 the group has undertaken a comprehensive
turnaround plan including the introduction of a largely new executive
management team who have addressed a number of operational issues in the
group. In addressing operational issues management became aware of certain
accounting inconsistencies and misstatements related to legacy issues in
existence at the acquisition date, 30 June 2005.
The restatement of previously reported amounts had no effect on previously
reported group earnings as they all related to at acquisition balances and
consequently were adjusted for in the goodwill arising on the acquisition
of the Homestyle group.
In accordance with IAS 8 - Accounting Policies, Changes in Accounting
Estimates and Errors these inconsistencies, misstatements and changes in
accounting policies were corrected retrospectively by restating the
comparatives for the prior periods as follows:
Balance sheet restatements
30 June 2006 30 June
2005
Change in
Change in provisional
Homestyle accounting accounting Homestyle
restatement policies (IFRS 3) restatement
R`000 R`000 R`000 R`000
Goodwill 134 000 35 181 27 029 118 935
Property, plant and (9 849) - - (9 035)
equipment
Inventories (122 241) - - (112 133)
Accounts receivable (31 029) - - (28 463)
Provisions (151 491) - (44 000) (138 964)
Deferred taxation 101 571 108 576 12 760 93 172
Minority interests 86 177 - - 76 488
Increase/(decrease) 7 138 143 757 (4 211) -
in Reserves
The restatement of previously reported amounts with regard to the provisionally
determined accounting of Hertz had the following effect on profit as previously
reported:
Reconciliation of profit for the period ended 30 June 2006
1 July 2005 30 June 2006
R`000 R`000
Profit for the period attributable to
equity holders of the parent as
previously stated 1 544 998 1 953 376
Hertz purchase price adjustment - (4 211)
(IFRS 3)
Profit for the period attributable to 1 544 998 1 949 165
equity holders of the parent restated
Certain reclassifications have been made to align prior year disclosures with
current year classifications.
COMMENTARY
REVIEW OF RESULTS
These results reflect yet another year of progress and achievement. Our segment
reports, both geographically and activity-wise, show good growth in revenues and
operating profit.
As disclosed in the segmental analysis, the growth and achievement of revenues
and profits in retail activities, manufacturing and sourcing of household goods
and related raw materials, logistical services and corporate services, reveal
another year of solid performance and growth.
The financial performance details are described under the Performance section
below.
The business model of geographically spread operations, accompanied by
integrated supply chain participation, remains effective and provides the
platform from which market share is grown. The group`s positioning continues to
benefit from its strategy to gain control over important brands and designs, the
expansion of its retail alliances and the consolidation in the relevant market
brought about by major competitors exiting from the competitive landscape in
certain regions where we trade. Each of the areas in which the group operates
had its own unique challenges, which are addressed by the respective Management
teams, and the related opportunities identified and maximised for the benefit of
the group and all its stakeholders.
In the United Kingdom (UK), the group will benefit further from its additional
investment in Homestyle which is now constituted as a wholly-owned subsidiary of
Steinhoff. The total integration of all the group`s UK activities, accompanied
by the centralisation of the management function at our existing base at
Tewkesbury is on track. Ian Topping and his management team have been
strengthened by the appointment of Philip Dieperink (ex Unitrans) as Chief
Financial Officer. Operationally, Harveys continued to experience difficult
retail trading conditions, mainly from the re-positioning of its product
offering and the general state of the retail environment in the UK. The new
business strategy and intra-group marketing and merchandising support, are well
on the way. Both Harveys and the bed retail businesses have embarked on
innovative advertising campaigns, including prime time national television
advertising. The Cargo chain delivered an improved performance compared to last
year. The remainder of Steinhoff`s UK businesses (the manufacturing and
distribution operations) again delivered good results.
The European division performed well, and benefited from increased intra-group
trading and the sound performance of our retail related investments on the
Continent. The turmoil caused by the liquidation of several major competitors in
the German region aided the group`s revenue growth and order books which augur
well for the future. The group`s position as a supplier of choice in terms of
reliability of supply, financial strength, quality and product range has been
further entrenched. The variety of Steinhoff`s product ranges, price points and
exclusivity arrangements, as well as sourcing capabilities and flexibility,
supplemented by own manufactured products, remains our distinct competitive
advantage. The group also experienced substantial revenue growth in new
territories adding to customer diversity and a greater geographical spread of
business. Brands are expected to contribute significantly to profitability in
future years.
The eastern European and mass market division continued to grow, although the
profitability of the Polish operations was adversely affected by the strength of
the zloty (relative to the euro) in the latter half of the year. The Hungarian
operations had a satisfying year and retail activities have been aggressively
expanded in order to achieve a point where close to 50% of sales are distributed
through the group`s own retail network in Hungary. Production capacities in the
Ukraine will be increased and dedicated as low-cost producers for the Group`s
mass discount retail customers in the German region.
In the Pacific Rim region, the Freedom brand performed well, achieving good
growth; it also made inroads in New Zealand where similar achievements were
delivered. BayLeatherRepublic continued to perform in line with expectations in
its market niche as a specialist retailer of leather upholstered furniture. The
BaySwiss chain was discontinued. The specialised bedding chain, Snooze, was
affected by restructuring, which included management changes following the
chain`s flat performance during the year under review. The manufacturing
facilities are now fully integrated and produce exclusively for the group`s
retail chains, thereby completing the integration model in this region. The
international sourcing activities in China continued to exceed expectations,
almost doubling their activity levels and revenues on a cost base well within
the budgeted operating cost levels.
In South Africa, the sale of the furniture manufacturing and import interests
was concluded (refer Corporate Activity). Following this sale, Steinhoff Africa
now comprises the logistics and freight, passenger services, supply chain
solutions, car rental and motor retail businesses (all formerly part of Unitrans
Limited) (Unitrans businesses), the Timber and Panel products businesses of PG
Bison, including DIY and builders` product retailers, (Pennypinchers and
Timbercity), and the raw materials interests which supply foam products,
textile products, bedding components and springs, mainly to the furniture and
automotive industries in South Africa. The Unitrans businesses had another
strong year, favourably impacted by positive economic conditions, the buoyant
consumer market and growing consumer base in general. PG Bison`s results were
adversely affected by capacity constraints and substantially increased raw
material prices. Capacity limitations are being addressed, and will be rectified
when the North Eastern Cape Forest (NECF) project becomes operational early next
year, through an additional output of 1000 cubic metres of particle board per
day being added to PG Bison`s existing capacity. Following the restructuring
steps undertaken during the previous year, the Raw Materials division delivered
improved results compared to last year. This was achieved notwithstanding
technology developments within a certain bedding range which reduced sales
volumes within the Vitafoam division.
PERFORMANCE
The group`s revenues from continuing operations grew from R30 159 million to R34
229 million, with increased levels of intragroup trading. This is in line with
the vertical integration business model, as well as a deliberate profitability
improvement strategy followed in the UK to reposition Harveys` product offering
and sales mix.
Headline earnings attributable to ordinary shareholders grew by 31% from R1 955
million in the year ended 30 June 2006 to R2 558 million, while headline
earnings per ordinary share increased by 25% to 215 cents (2006: 173 cents) and
basic earnings per ordinary share improving 46% to 242 cents (2006: 166 cents).
The weighted average number of ordinary shares in issue increased to 1 188,0
million (2006: 1 133,3 million), mainly attributable to shares being issued to
constitute Homestyle and Unitrans as wholly owned subsidiaries of Steinhoff.
Ordinary shareholders` funds at 30 June 2007 grew to R16 233 million (2006: R11
016 million). The return on average ordinary shareholders` funds was stable at
22%. The net asset value per ordinary share improved to 1 292 cents from 965
cents per share.
The group`s cash flow from operations remained stable at R3 454 million (2006:
R3 486 million). Cash generation is stated after taking account of the net
increase in working capital of R476 million (2006: decrease of R134 million).
This level of cash generation confirms the quality of the group`s earnings as
well as the positive cash cycle inherent to the vertical integration business
model. Positive cash generation was achieved by continued sound working capital
management, notwithstanding the continued practice of accelerated payments to
suppliers to secure better prices and trading terms, including settlement
discounts.
The group`s operating margin improved to 9,4% (2006: 8,6%). The improvement was
achieved despite continued tough trading conditions in the UK and Australia. The
group continues to benefit from improved efficiencies throughout the supply
chain and the operating margin is targeted to improve further as the integration
model unfolds.
Net finance expense for the period rose to R454 million (2006: R292 million).
The group continues to enjoy very favourable borrowing terms under its foreign
banking facilities.
At 30 June 2007, the group`s debt:equity ratio was 24% (2006: 30%), well within
the group`s targeted range.
The group`s taxation charge from continuing operations decreased to R325 million
(2006: R383 million), mainly as a result of its favourable tax dispensations in
the various geographical areas of operation, and the effect of the exceptional
closing costs incurred during the year under review. Management remains
satisfied with a sustainable average tax rate for the foreseeable future in the
region of 15% of pre-tax income.
CORPORATE ACTIVITY
The following notable corporate actions were concluded during the year under
review or were in the process of being concluded:
- Steinhoff acquired the remaining 39% minority interest in Homestyle Group
Plc through a scheme of arrangement which was sanctioned by the Court in
the UK on 19 February 2007.
- Steinhoff acquired the entire business operations of Unitrans following
which Unitrans Limited was delisted from the JSE Limited.
- Steinhoff acquired the wire drawing, springs and bedding component
manufacturing businesses of Geros Beteiligungsverwaltung AG (the BCM
business), a company controlled by Daun & Cie AG.
- Steinhoff disposed of the South African furniture manufacturing and import
interests to a private equity consortium led by Absa Capital, a division of
Absa Bank Limited, and includes management and black economic empowerment
parties. The purchase consideration was R1 375 million and has been
settled.
- Steinhoff supports the Government`s broad-based black economic empowerment
(BBBEE) initiatives and over the past years has proactively introduced
previously disadvantaged shareholders into various of its operating
companies. It has now been resolved in principle to also introduce
meaningful BBBEE equity participation at the Steinhoff Africa Holdings
(Pty) Ltd level in terms of which 20% of its equity will be sold at fair
market value to selected BBBEE participants, with whom the group has an
existing relationship at operating level. The BBBEE transaction will also
include an appropriate employee share ownership plan. The group is at an
advanced stage of developing the appropriate structure and indicative
funding terms have already been solicited from financial institutions and
other providers of BBBEE finance. It is anticipated that details of this
transaction will be announced at the company`s annual general meeting to be
held on 3 December 2007.
OUTLOOK
The UK retail operations are on track to make the required contribution, after
the implementation of management changes, repositioning of trading formats, and
adjusted product mixes and merchandising. Trading for the period since year-end
is on target and is expected to improve further once the anticipated benefits of
the advertising and promotional initiatives recently embarked upon, comes to
fruition.
In the European Union, the group will continue to participate in the
consolidation trends prevalent in key markets. Retail alliances will be expanded
and the group is continuously considering opportunities to expand its
geographical reach and distribution base. Possible future European joint
ventures from a raw materials perspective present interesting growth
opportunities.
The eastern European and mass market division is well positioned to continue its
growth path with selected retail customers and management is confident that the
labour challenges experienced in that region have been successfully addressed.
The central treasury division is closely monitoring its foreign exchange
policies to address the impact of the strengthening zloty on group results going
forward. The Pacific Rim operations are also well on course to show good growth
in the current financial year, commensurate with their own unique market
conditions. The newly founded Group Services International sourcing division
represents an exciting development that is positioned to assist group companies
world-wide with their purchasing of third-party goods, intragroup sales and raw
material sourcing. It is planned that the existing International Sourcing arm in
Shenzhen, China will be incorporated into this new division, which is envisaged
to centrally co-ordinate all group buying as well as the sharing of retail
concepts and product innovation between the various divisions.
In South Africa, the value-adding potential of the NECF project, due to be
operational early in 2008, is anticipated to add to the continued success and
growth of PG Bison and its related timber-based operations. The group will
continue to explore opportunities to entrench the security of supply of timber
resources, which, over the last number of years, have become expensive and
scarce. The Raw Materials division stands to benefit further from its
restructure last year and the addition of the BCM businesses is anticipated to
contribute to additional intragroup opportunities and trade. The Unitrans
businesses continue to perform well, notwithstanding the challenges from the
rising interest rate environment and the introduction of the National Credit
Act.
The strategic actions implemented in the various group operations are
anticipated to deliver the desired results in the current financial year and
thereafter.
Management expects to achieve growth in the headline earnings from continuing
operations for the current financial year.
On behalf of the board of directors
BE Steinhoff MJ Jooste
Executive Chairman Chief executive officer
DISTRIBUTION FROM SHARE PREMIUM ACCOUNT
Notice is hereby given that, in accordance with the authority granted to the
directors of the company in terms of article 56A of the company`s articles of
association and the resolution passed at the annual general meeting of the
company held on 4 December 2006, a cash distribution from share premium account
of 50 cents per share (2006: 37,5 cents per share) has been declared and is
payable to shareholders recorded in the books of the company at the close of
business on Friday, 9 November 2007 (the capital distribution). The salient
dates of this distribution are:
2007
Last date to trade cum capital distribution Friday, 9 November
Shares trade ex capital distribution Monday, 12 November
Record date Friday, 16 November
Payment date Monday, 19 November
No dematerialisation or rematerialisation of ordinary shares may take place
between Monday, 12 November 2007, and Friday, 16 November 2007, both dates
inclusive.
On Monday, 19 November 2007, the capital distribution will be electronically
transferred to the bank accounts of certificated shareholders who utilise this
facility. In all other instances of certificated holders, cheques dated 19
November 2007 will be posted on or about that date. Shareholders who have
dematerialised their shares will have their accounts credited on 19 November
2007.
In terms of the South African Companies Act, the directors confirm that, after
the payment of the capital distribution, the company will be able to pay its
debts as they become due in the ordinary course of business, and its
consolidated assets, fairly valued, will exceed its consolidated liabilities.
ANNUAL REPORT
The annual report will be mailed to shareholders in due course. The annual
general meeting is scheduled to take place on Monday, 3 December 2007, at the
registered office of the company at 08:00.
By order of the board of directors
SJ Grobler
Company secretary
10 September 2007
Preference shareholders are referred to the above audited consolidated results
of Steinhoff for a full appreciation of the relevant consolidated results and
financial position of Steinhoff Investment. Steinhoff Investment is the only
directly held subsidiary of Steinhoff and holds all Steinhoff`s other
investments in operating subsidiaries and associate companies.
Declaration of dividend number 4 to preference shareholders
The board of Steinhoff Investment has resolved to declare a dividend of 467,26
cents per preference share in respect of the period from 1 January 2007 up to
and including 30 June 2007 (the dividend period), payable on Monday, 22 October
2007, to those preference shareholders recorded in the books of the company at
the close of business on Friday, 19 October 2007. This dividend has been
determined on the basis of 75% of the prime bank overdraft lending rate quoted
by Absa Bank Limited prevailing over the dividend period, applied to the nominal
value plus premium
(of R100,00 per preference share, in the aggregate).
The dividend is payable in the currency of South Africa.
Last date to trade cum dividend Friday, 12 October 2007
Shares trade ex dividend Monday, 15 October 2007
Record date Friday, 19 October 2007
Payment date Monday, 22 October 2007
No dematerialisation or rematerialisation of preference shares may take place
between Monday, 15 October 2007, and Friday, 19 October 2007, both dates
inclusive.
On Monday, 22 October 2007, the preference dividend will be electronically
transferred to the bank accounts of preference shareholders. In all other
instances of certificated holders, if any, cheques dated 22 October 2007 will be
posted on or about that date. Preference shareholders who have dematerialised
their shares will have their accounts credited on Monday, 22 October 2007.
On behalf of the board of directors
D Konar JHN van der Merwe
Non-executive director Executive director
10 September 2007
OTHER NOTES
1. Corporate governance
Steinhoff has embraced the recommendations of King II on Corporate
Governance and strives to provide reports to shareholders that are timely,
accurate, consistent and informative.
2. Social responsibility
Steinhoff continues to be recognised for its corporate social investment
activities. Management remains committed to the related initiatives and is
conscious of the needs in this regard.
A number of social responsibility projects are continuing.
3. Human resources
A good working relationship is maintained with the relevant unions. Ongoing
skills and equity activities continue to ensure compliance with current
legislation. Plans continue that contribute to broader skills development
and sourcing appropriately qualified staff on an ongoing basis.
4. Related-party transactions
The company entered into various related-party transactions. These
transactions are no less favourable than those arranged with third parties.
5. Further events
No significant events have occurred in the period between the reporting
date and the date of this report.
Registered office: 28 Sixth Street, Wynberg, Sandton, 2090, Republic of South
Africa
Tel: +27 (11) 445 3000 Fax: +27 (11) 445 3094
Transfer secretaries: Computershare Investor Services 2004 (Pty) Limited
70 Marshall Street, Johannesburg, 2001
Company secretary: SJ Grobler
Auditors: Deloitte & Touche
Sponsor: PSG Capital Limited
Directors: BE Steinhoff* (chairman),
MJ Jooste (chief executive officer), DE Ackerman,
CE Daun*, KJ Grove, D Konar, JF Mouton, FJ Nel,
FA Sonn, IM Topping#, DM van der Merwe, JHN van der Merwe
Alternate directors: JNS du Plessis, HJK Ferreira,
SJ Grobler, A Kruger - Steinhoff*
#British *German Non-executive
Date: 10/09/2007 15:21:02 Produced by the JSE SENS Department.
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