| Thu 13 Sep 2007, 16:00 | | RTO/RTN/TROP - Rex Trueform Clothing Company Limit |
|
RTO RTN RTOP
RTO
RTO/RTN/TROP - Rex Trueform Clothing Company Limited - Reviewed results
for the year ended 30 June 2007
Rex Trueform Clothing Company Limited
(Incorporated in the Republic of South Africa)
(Reg No. 1937/009839/06)
Share codes: RTO/RTN/RTOP
ISIN: ZAE000006144/ZAE000009700/ZAE000006151
Reviewed Results For The Year Ended 30 June 2007
INCOME STATEMENT Consolidated (R`000)
2007 2006
(Reviewed) (Restated)
Revenue 397 220 323 341
Continuing operations
Turnover 390 594 317 570
Operating profit 19 029 16 243
Dividends received 19 17
Net interest received 4 237 3 531
Loss from associated company (348) (452)
Profit before taxation 22 937 19 339
Taxation (7 709) (6 331)
Profit from continuing operations 15 228 13 008
Discontinued operation
Loss from discontinued operation - (4 553)
Profit 15 228 8 455
Profit attributable to:
Ordinary and "N" ordinary shareholders 15 211 8 438
Preference shareholders 17 17
Profit 15 228 8 455
Reconciliation of headline earnings
Attributable earnings 15 211 8 438
Loss arising from discontinuance - 666
Headline earnings 15 211 9 104
Headline earnings per share (cents) 75,3 45,3
Earnings per share (cents) 75,3 42,0
Diluted headline earnings per share (cents) 74,9 44,8
Diluted earnings per share (cents) 74,9 41,5
Proposed dividend per share (cents) 25,0 25,0
Dividend cover (based on headline earnings) 3,0 1,8
Weighted average number of equity shares on which
earnings per share is based (000) 20 193 20 105
Number of equity shares in issue (000) 20 352 20 113
Weighted average number of equity shares used for
diluted earnings per share (000) 20 312 20 339
BALANCE SHEET
Assets
Non-current assets 54 572 58 052
Property, plant and equipment 39 964 43 656
Investment property 3 511 3 511
Investments (unlisted) 2 129 1 752
Deferred taxation 8 968 9 133
Current assets 143 225 124 038
Inventories 45 599 38 530
Accounts receivable from holding company 30 -
Trade and other receivables 19 560 11 254
Cash and cash equivalents 78 036 74 254
Total assets 197 797 182 090
Equity and liabilities
Capital and reserves 160 469 148 862
Share capital 1 776 1 776
Share premium 23 646 22 783
Non-distributable reserves 1 034 434
Distributable reserves 134 013 123 869
Non-current liabilities 9 746 9 060
Post-retirement liability 5 891 5 707
Accrued operating lease liability 3 855 3 353
Current liabilities 27 582 24 168
Provisions - 543
Trade and other payables 25 982 22 164
Income tax payable 1 600 1 461
Total equity and liabilities 197 797 182 090
ABRIDGED CASH FLOW STATEMENT
Cash generated by operations 33 138 24 335
Working capital changes (11 451) 13 330
Interest received (net) 4 237 3 531
Taxation paid (7 406) (3 730)
Dividends paid (5 084) (5 042)
Net cash inflow from operations 13 434 32 424
Additions to property, plant and equipment (10 640) (16 990)
Proceeds on disposal of property, plant and
equipment 124 148
Other 864 25
Net cash outflows from investing activities (9 652) (16 817)
Net increase in cash 3 782 15 607
Cash at the beginning of the period 74 254 58 647
Cash at the end of the period 78 036 74 254
STATEMENT OF CHANGES IN EQUITY
Share capital 1 776 1 776
Share premium 23 646 22 783
Non-distributable reserves
Opening balance 434 283
Share-based payments (120) 133
Fair value revaluation reserve 524 -
Foreign exchange translation 196 18
1 034 434
Distributable reserves
Opening balance 123 869 120 456
Profit after taxation 15 228 8 455
Dividends (5 084) (5 042)
134 013 123 869
Total capital and reserves 160 469 148 862
SEGMENTAL REPORTING
Turnover
Manufacturing 52 682 65 671
Less: intersegment sales (16 276) (29 227)
External sales 36 406 36 444
Retail 354 188 291 555
Total 390 594 327 999
Operating profit/loss)
Manufacturing (866) (8 845)
Retail 22 727 21 203
Property 313 (1 158)
Group services* (3 145) 490
Total 19 029 11 690
Depreciation included in operating profit
Manufacturing 1 251 1 134
Retail 12 694 11 491
Total 13 945 12 625
Total segment assets
Manufacturing 22 054 23 898
Retail 130 619 117 225
Property 8 299 8 344
Group services 36 825 32 623
Total 197 797 182 090
Total segment liabilities
Manufacturing (7 074) (11 273)
Retail (24 330) (16 248)
Group services (5 924) (5 707)
Total (37 328) (33 228)
Capital expenditure
Manufacturing 781 1 233
Retail 9 859 15 757
Total 10 640 16 990
*Group services includes corporate costs and consolidation adjustments.
OTHER INFORMATION
Capital expenditure 10 640 16 990
Capital commitments
Contracted for 2 370 3 697
Authorised - not contracted for 6 412 5 377
Current ratio 5,2 5,1
NOTES:
1 Basis of preparation
These annual financial statements have been prepared in accordance with IFRS
standards and interpretations effective as at the date of preparing these
annual statements. The information presented has been reviewed but not audited
by the external auditors.
2 Prior-year adjustment
A prior-year adjustment has been recorded relating to the investment in the
associate Queenspark Australia Pty Limited. A loss of R456 000 has arisen in
that previously consolidated figures were based on the management accounts of
the associate. The audited financial statements, issued subsequently, reflected
a greater loss than that originally consolidated. The comparative financial
information has been restated by increasing the loss from associate by R293 000
in 2006 and reducing opening retained income by R163 000.
COMMENTARY
The board is pleased to announce that the group`s performance of the first
half-year has been maintained and turnover was improved by 23% for the full
year.
Headline earnings improved by 66,2% to 75,3 cents per share. Earnings have
increased by 79,3% on last year, and also amount to 75,3 cents per share.
Retail
Queenspark`s turnover amounted to R354,2 million, an increase of 21,5%.
Operating profit, before foreign exchange differences, improved by 32,6% over
last year. After taking into account foreign exchange differences operating
profit improved by 7,2%.
Same-store growth in turnover was 12% after price deflation of 8%. New stores
produced R30,0 million of additional turnover during the year representing a
further 9,5% growth.
New stores which were opened during the first half of the year at Gateway in
Durban, Woodlands Boulevard in Pretoria and Liberty Mall in Pietermaritzburg
continued to perform strongly during the remainder of the year. A further store
was opened at Highveld Mall in Witbank during the latter half of the year.
Manufacturing
Manufacturing activities remained centred on the Atlantis factory. This plant
is not showing a profit, but the loss incurred is less than in the previous
year.
Prospects
The Queenspark summer range currently in stores has achieved a high level of
acceptance. The impact of the National Credit Act, fuel price increases and
increases in interest rates will have a negative effect on consumer demand.
We continue to open new stores, which will have a positive effect on the
business.
Dividend
The board has decided to recommend to shareholders that the dividend on the
ordinary and "N" ordinary shares be maintained at 25 cents per share. This will
result in a dividend cover of approximately three times.
Accordingly, shareholders will be asked to consider, and if deemed fit, approve
the directors` recommendation that a dividend of 25 cents per share be declared
on the ordinary and "N" ordinary shares at the annual general meeting of the
company to be held on 21 November 2007.
An announcement detailing the terms of the dividend declaration will be made
immediately following the annual general meeting.
Review by independent auditors
The financial information has been reviewed by KPMG Inc. whose unqualified
review opinion is available for inspection at the company`s registered office.
It is anticipated that an unqualified audit opinion will be issued once the
detailed financial statements have been finalised.
The annual report containing a detailed review of the operations of the company
together with the audited financial statements will be posted to shareholders
towards the end of October 2007.
Signed on behalf of the Board
ML Krawitz (Chairman)
CEA Radowsky (Chief Executive Officer)
Cape Town
11 September 2007
Transfer Secretaries:
Computershare Investor Services 2004 (Pty) Ltd, 70 Marshall Street,
Johannesburg 2001
Registered Office:
Rex Buildings, 263 Victoria Road, Salt River, Cape Town 7925
Rex Trueform Clothing Company Limited (Incorporated in the Republic of
South Africa - Reg No. 1937/009839/06)
Share codes: RTO - RTN - RTOP
ISIN: ZAE000006144 - ZAE000009700 - ZAE000006151
Directors: ML Krawitz (Chairman), CEA Radowsky (Chief Executive Officer),
PM Naylor, JC O`Brien and PE Shub (alt ML Krawitz)
Secretary: African & Overseas Enterprises Limited
Date: 13/09/2007 16:00:08 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.
