| Fri 28 Sep 2007, 17:00 | | Busby reviewed results 30 June 2007 |
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BSB: BSB - The House of Busby Limited - Reviewe... 9/28/2007 5:00:04 PM
BSB - The House of Busby Limited - Reviewed results of The House of Busby
Limited for the year ended 30 June 2007
THE HOUSE OF BUSBY LIMITED
(Incorporated in the Republic of South Africa)
(Reg No: 1997/009173/06)
Share Code: BSB
ISIN: ZAE000013637
Busby
The hide to seek
Reviewed results of The House of Busby Limited
for the year ended 30 June 2007
Headline earnings per share up 35%
Revenue up 53%
Summarised consolidated income
statement
Reviewed Audited
12 months 12 months
ended ended
30 June 30 June
2007 Change 2006
R'000 % R'000
Revenue 1 062 302 53 693 386
Operating income before profit on 123 971 59 77 795
foreign exchange
Profit on foreign exchange 2 967 4 859
Operating income before 126 938 54 82 654
depreciation and amortisation of
intangibles
Depreciation 21 683 16 486
Amortisation of intangibles 138 161
Operating income before net finance 105 117 59 66 007
charges
Net finance cost 6 068 5 724
Interest received 1 045 446
Interest paid (7 113) (6 170)
Net income before taxation 99 049 64 60 283
Taxation 31 281 14 363
Net income after taxation 67 768 48 45 920
Attributable to minorities 6 407 574
Net income atributable to ordinary 61 361 35 45 346
shareholders
Weighted average number of shares 50 291 50 366
in issue ('000) (net of treasury
shares)
Headline earning per share (cents) 122,3 35 90,3
Earnings per share (cents) 122,0 36 90,0
Fully diluted earnings per share 118,3 33 89,0
(cents)
Summarised consolidated balance
sheet
Reviewed Audited
30 June 30 June
2007 2006
R'000 R'000
ASSETS
Non-current assets 103 229 79 770
Property, plant and equipment 87 200 60 516
Intangible assets 8 333 8 462
Deferred taxation 7 696 10 792
Current assets 443 416 296 989
Inventories 266 012 196 743
Trade and other receivables 134 119 76 572
Taxation 8 219 1 171
Bank balances and cash 35 066 22 503
Total assets 546 645 376 759
EQUITY AND LIABILITIES
Shareholders' funds 295 628 238 660
Minority interest (4 581) (11 472)
Interest bearing debt 9 802 10 337
Overdraft 70 422 49 376
Taxation 15 440 8 903
Other current liabilites 159 934 80 955
Total equity and liabilities 546 645 376 759
Number of shares in issue (`000)
(net of
treasury shares) 50 291 50 366
Net asset value per share (cents) 588 474
Net tangible asset value per share 571 457
(cents)
Summarised consolidated cash flow
statement
Reviewed Audited
12 months 12 months
ended ended
30 June 30 June
2007 2006
R'000 R'000
Cash generated from operations 83 454 70 021
Net finance cost (6 068) (5 724)
Dividend paid (7 032) (4 533)
Taxation paid (28 696) (12 318)
Cash flows from operating 41 658 47 446
activities
Cash flows from investing (48 544) (38 329)
activities
Cash flows from financing (1 597) 10 337
activities
(Decrease)/increase in cash and (8 483) 19 454
cash equivalents
Cash and cash equivalents at the (26 873) (46 327)
beginning of year
Cash and cash equivalents at the (35 356) (26 873)
end of year
Reconciliation of headline earnings
Reviewed Audited
12 months 12 months
ended ended
30 June 30 June
2007 2006
R'000 R'000
Net Income attributable to ordinary 61 361 45 346
shareholders
Loss on disposal of property, plant and 126 120
equipment
Headline earnings 61 487 45 466
Segmental analysis
Revenue EBITDA
30 June 30 June 30 June 30 June
2007 2006 2007 2006
R'000 R'000 R'000 R'000
Distribution 569 957 378 606 82 014 44 829
Retail 492 345 314 780 44 924 37 825
Total 1 062 302 693 386 126 938 82 654
Australia 306 311 105 606 55 944 9 213
South Africa 755 991 587 780 70 994 73 441
Total 1 062 302 693 386 126 938 82 654
Segmental analysis (continued)
Net asset value
30 June 30 June
2007 2006
R'000 R'000
Distribution 198 891 141 944
Retail 92 156 85 244
Total 291 047 227 188
Australia 43 509 5 098
South Africa 247 538 222 090
Total 291 047 227 188
Summarised statement of
changes in equity
Non-
Share Share distribut
able
capital premium reserves
R'000 R'000 R'000
Balance 30 June 2005 51 73 766 13 969
Currency translation 66
differences
Net income attributable
to shareholders
IFRS adjustment
Share options charge
Net income attributable
to minorities
Dividend Paid
Balance at 30 June 2006 51 73 766 14 035
Currency translation 2 421
differences
Currency translation
differences to
minorities
Net profit attributable
to shareholders
Share options charge
Net income attrributable
to minorities
Dividends paid
Shares repurchased (1 222)
Share options excerised 170
Balance at 30 June 2007 51 72 714 16 456
Summarised statement of
changes in equity
(continued)
Share-
based
Accumula payments Minority
ted
profit reserve interest Total
R'000 R'000 R'000 R'000
Balance 30 June 2005 109 892 (12 046) 185 632
Currency translation 66
differences
Net income attributable 45 346 45 346
to shareholders
IFRS adjustment (1 507) (1 507)
Share options charge 1 610 1 610
Net income attributable 574 574
to minorities
Dividend Paid (4 533) (4 533)
Balance at 30 June 2006 149 198 1 610 (11 472) 227 188
Currency translation 2 421
differences
Currency translation 484 484
differences to
minorities
Net profit attributable 61 361 61 361
to shareholders
Share options charge 1 270 1 270
Net income attrributable 6 407 6 407
to minorities
Dividends paid (7 032) (7 032)
Shares repurchased (1 222)
Share options excerised 170
Balance at 30 June 2007 203 527 2 880 (4 581) 291 047
COMMENTS
The Group has passed a momentous milestone with revenue exceeding one billion
Rand for the first time. The foreign operations contributed strongly towards the
growth in this financial year.
Review of operations
The South African Retail division continued to experience significant EBITDA
growth. The store base has increased from 62 to 82 stores. This division has
successfully launched the Mango brand into the South African market during the
current financial year, this concept is meeting expectations.
The South African distribution division was severely impacted by the volatility
of the Rand in the first part of the financial year. Margins continue to remain
under pressure but are expected to recover in the near future. The new quota
system had a negative impact on the unbranded clothing component of the
division. Input cost inflation has further contributed to margin erosion.
The Australian distribution business has continued to grow and deliver
meaningful contributions to the group.
The Australian Retail division acquired the existing Aldo retail operations and
has embarked on a performance improvement process, the performance to date is
proceeding as planned. The acquisition of Aldo in Australia has lead to an
EBITDA margin reduction, this will improve as the Aldo stores mature.
The slight deterioration in the trade receivables is attributable to large
debtors paying subsequent to year end. The higher inventory value is a
reflection of the increased trading being experienced by the group as well as
the large number of new stores being opened during the financial year.
The group has invested in excess of R48 million in fixed assets which is
attributable to the large retail store roll out.
Prospects
The group has secured the rights to distribute the ESPRIT brand in South Africa
as well as securing the promotional rights to the Soccer World Cup in 2010. The
recent interest rate hikes have seen a slowdown in the growth in consumer
spending.
The group is expecting to open in excess of 15 new stores during the 2008
financial year.
Post Balance Sheet events
Subsequent to the year end, the group acquired the minority share in Golden Pond
Trading 291 (Mango) for R5,7 million. The group now owns 100% of this
subsidiary.
COMMITMENTS
The group has operating lease commitments of R94,9 million (2006: R53,1 million)
in the next 12 months and R169,7 million (2006: R88,2 million) thereafter.
Capital expenditure to the value of R35,9 million has been approved for the 2008
financial year.
DIVIDEND
Notice is hereby given that a final dividend of 20 cents (2006: 14 cents) a
share has been declared. Shareholders are advised that the last date to trade
"CUM" dividend will be Friday, 2 November 2007. The shares will trade "Ex"
dividend as from Monday, 5 November 2007. The record date will be Friday, 9
November 2007 and the dividend will be payable on Monday, 12 November 2007.
Share certificates may not be dematerialised or rematerialised between Monday, 5
November and Friday, 9 November 2007, both days inclusive.
BASIS OF PRESENTATION
The summarised consolidated financial statements have been prepared and
presented in accordance with International Financial Reporting Standards (IFRS),
the requirements of IAS 34, and in compliance with the Listings Requirements of
the JSE Limited and South African Companies Act 1973. The principal accounting
policies used in the preparation of the results for the year ended 30 June 2007
are consistent with those applied in the prior year.
AUDIT OPINION
These summarised consolidated results have been reviewed by PKF (Jhb) Inc whose
unqualified review opinion is available for inspection at the company's
registered offices.
On behalf of the board of directors
K L Brouze Johannesburg
Chief Executive Officer 28 September 2007
www.busbyhouse.com
THE HOUSE OF BUSBY LIMITED
Incorporated in the Republic of South Africa
Registration number: 1997/009173/06 Share code: BSB
ISIN: ZAE000013637
TRANSFER SECRETARIES: Computershare Investor Services 2004 (Pty) Limited, 70
Marshall Street, Johannesburg 2001. PO Box 61051, Marshalltown 2107
REGISTERED OFFICE: 11 Height Street, Doornfontein 2094.
PO Box 16647, Doornfontein 2028
DIRECTORS: Keith Brouze Chief executive officer, David Brouze Non-executive
director, Martin Duarte Managing director - Busby Retail, Mark Gordon Operations
director, Shawn Lashansky Financial director, Selwyn Moss Managing director -
Eyewear, Steven Stein Non-executive director (Acting chairman).
Date: 28/09/2007 17:00:03 Produced by the JSE SENS Department.
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