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JDG
JDG
JDG - JD Group - Audited Financial Results And Dividend Declaration For The Year
Ended 31 August 2008
JD Group Limited
(Incorporated in the Republic of South Africa)
(Registration number 1981/009108/06)
ISIN: ZAE000030771
JSE code: JDG
("JD Group")
JD GROUP
TWENTY-FIVE YEARS
Audited Financial results and dividend declaration for the year
ended 31 August 2008
COMMENTARY
Business environment
Two years have passed since the credit cycle turned with arrear payments in our
receivables moving out since July 2006. This downturn was exacerbated by the
proliferation of credit in the run up to the National Credit Act. In fact, the
unprecedented appetite for debt in recent years resulted in the consumers`
current state of overindebtedness.
The difficult trading conditions have severely impacted sales in our Traditional
Retail division and have resulted in product margin erosion. This together with
the increase in bad debts reflects the conditions that have prevailed over the
past two years.
However, our determination to safeguard the strength of our balance sheet has
paid off, with a gearing ratio of 3,3% at year end. The Group enjoys very strong
cash flows and the underlying quality of our receivables remains intact.
We took the decision in January 2006 to separate Financial Services from
Traditional Retail. The time spent evaluating the separation during the past two
years highlighted the issues and potential pitfalls. Ideally, we would have
liked to be a year ahead of where we are currently, but the process was deferred
to ensure full compliance ahead of the National Credit Act, which came into
force in June 2007. Our focus now is on implementing our strategy, which
includes driving greater efficiencies throughout the organisation.
The separation of Financial Services from Traditional Retail also drew our
attention to the inappropriate overhead structure in Traditional Retail which
needed to be addressed. When we reviewed the market positioning of each of our
brands in 2003, we recognised that we were embarking on a journey. While much
has been accomplished, Traditional Retail will be further positioned as a stand
alone division to achieve its full potential.
During the 2009 financial year, our focus will be to bed down the new structure
into the operating divisions, namely Traditional Retail, Cash Retail,
International Retail and Financial Services, as well as our New Business
Development division currently housing Maravedi and Blake. Towards the end of
the financial year, we implemented separate management structures for each
operating division, with the major impact being on Traditional Retail and
Financial Services. The segregation into these separate business divisions will
allow us to improve service levels through specialised skill sets in each
operation.
Subsequent to the year end, the Group increased its shareholding in Blake, a
well known contact centre operation, from 27,5% to 55,0%. The founding members
of Blake will retain equity in the company and continue to manage its day to day
operations. At the same time, the JD Group acquired Absa Group Limited`s
shareholding in Maravedi, increasing our stake from 42,7% to 90,5%. Thebe
Investment Corporation (Proprietary) Limited remains a 9,5% shareholder in
Maravedi. Both transactions are still subject to approval from the Competition
Authorities. In the year under review, Blake and Maravedi were equity accounted,
but after completion of the transactions, these will be consolidated into the
Group`s results.
Both Blake and Maravedi are critical components of the Group`s long term growth
strategy into financial services.
FINANCIAL REVIEW
Reported revenue declined by 2,4% to R12,6 billion (2007: R12,9 billion), as the
trading environment was once again impacted by lower discretionary income. The
Group`s gross profit margin was down from 30,1% to 28,6%, due to a highly
competitive trading environment in the second half of the year, with Traditional
Retail bearing the brunt.
The ongoing decrease in demand for consumer credit negatively impacted
Traditional Retail which reported an 11,6% decline in revenue for the year to
R5,2 billion (2007: R5,9 billion). In order to preserve market share, the
furniture chains were forced to cut prices and this significantly affected
margins by 2,8% year on year. The division, however, contained expenses to an
increase of 1,9% compared to 2007, but this was not sufficient to offset the
lower margin. As a result, operating profit decreased by R531 million to R111
million. Worthy of mention is the performance of the two entry level chains,
namely Price `n Pride and Barnetts, which fared better than the other chains in
Traditional Retail.
The Group`s Cash Retail activities, comprising Incredible Connection and Hi-Fi
Corporation, delivered revenue of R4,0 billion, reflecting a 4,0% increase
(2007: R3,9 billion). However, operating profit was down 14,8% on the prior
year. Incredible Connection performed exceptionally well, growing its market
share. Hi-Fi Corporation was subjected to increased price competition,
exacerbated by lower consumer spending. Although Hi-Fi Corporation`s top line
sales declined by 5,4% year on year, there has been a slight improvement in its
gross margin. Incredible Connection grew its top line by a very pleasing 17,1%,
with its operating margin at 7,6%. Overall, the reported operating profit of the
cash division, whilst down on last year, was still at an acceptable 6%.
Abra, based in Poland, performed well above expectations. The increased store
base now provides the necessary critical mass which yielded improved economies
of scale. Revenue increased by 60% to R800 million, delivering Rand hedge
benefits to the Group. Abra has achieved superior return on sales of 6,1% with
operating profit up R27 million to R49 million.
In line with muted consumer demand, Financial Services was impacted by lower new
business inflows during the year. Revenue showed a 6,5% decline to R3,1 billion
(2007: R3,3 billion) with operating profit decreasing by 23% to R622 million
(2007: R808 million). Bad debt write offs and impairment provision costs
increased by 8,8% year on year resulting in the operating margin declining to
20,2%.
Maravedi, our joint venture with Absa and Thebe, continued to grow its
receivables. Whilst its financial performance has been pedestrian, it has
developed and introduced a number of new products into the market over the past
year. Blake performed exceptionally well and is poised for strong organic
growth.
Balance sheet and cash flow
Despite cash generated by operations decreasing from R1 552 million to R1 309
million, the Group remains highly cash generative with over 164% of operating
profits being converted into cash. Working capital was particularly well managed
over the 12 months. During the year, R527 million was used to buy back and
cancel 9,5 million shares and to increase treasury shares held in the share
trust from 4,5 million to 7,4 million shares. The balance sheet reflects net
gearing of R158 million compared to R76 million at 31 August 2007. The gearing
ratio of 3,3%, compared to 1,5% at 31 August 2007 remains extremely conservative
and increases the Group`s resilience to the adverse economic and credit
environment.
BOARD OF DIRECTORS
Vusi Khanyile and Gunter Steffens were appointed as independent non-executive
directors to our Board effective 13 November 2008. Gunter Steffens assumes the
chairmanship of the risk committee. Ian Thompson has been appointed as an
executive director effective 13 November 2008. Johann Pieterse was appointed
Company Secretary with effect from 9 September 2008.
PROSPECTS
We maintain that despite the current difficult trading conditions, the long term
outlook remains positive. Of immediate interest is the question of when the
consumer demand cycle will turn.
The two months subsequent to year end indicate an improvement in top line sales
in the Traditional Retail division. Bad debts have shown a decline of 15% for
the two months and it is particularly pleasing to see arrears in Rand terms
showing a reduction.
Our strategy to separate Financial Services from Traditional Retail has been set
in motion, and increased efficiencies will bring about financial benefits during
2009.
Notwithstanding our very conservative expectation for top line growth in the
year ahead, we expect a pleasing improvement in earnings.
By order of the Board
I David Sussman
Executive Chairman
Grattan Kirk
Chief Executive Officer
Gerald Volkel
Chief Financial Officer
14 November 2008
AUDIT OPINION OF THE INDEPENDENT AUDITORS
The annual financial statements for the year ended 31 August 2008 have been
audited by Deloitte & Touche and their accompanying unmodified audit report, as
well as the unmodified audit report on these summarised financial statements, is
available for inspection at the Company`s registered office.
These summarised financial statements have been derived from the Group`s annual
financial statements and are consistent in all material respects with the
Group`s annual financial statements.
DECLARATION OF DIVIDEND NUMBER 50
The directors have declared a final dividend of 41 cents per share (2007: 57
cents per share) for the year ended 31 August 2008.
In accordance with the settlement procedures of STRATE, the following dates will
apply to the final dividend:
Last day to trade cum dividend Friday, 05 December 2008
Trading ex dividend commences Monday, 08 December 2008
Record date Friday, 12 December 2008
Dividend payment date Monday, 15 December 2008
Share certificates may not be dematerialised or rematerialised between Monday,
08 December 2008 and Friday, 12 December 2008, both days inclusive.
CONDENSED INCOME STATEMENT
Audited Restated
12 months 12 months
ended ended
31 August 31 August
2008 2007 Change
R million R million %
Sale of merchandise 9 275 9 325 (1)
Finance charges earned 1 483 1 736 (15)
Financial services 1 313 1 374 (4)
Other services 539 479 13
Revenue 12 610 12 914 (2)
Cost of sales 6 627 6 517 2
Operating expenses 4 288 3 981 8
Administration and other expenses 1 003 937
Depreciation and amortisation 170 155
Employees 1 787 1 666
Marketing 407 416
Occupancy 632 553
Share-based payment 32 32
Transport and travel 261 233
Surplus on disposal of property, (4) (11)
plant and equipment
Operating profit before debtors 1 695 2 416 (30)
costs
Debtors costs (note 2) 898 825 9
Operating profit 797 1 591 (50)
Investment income 30 75
Finance income (note 3) 104 36
Finance costs (note 3) (188) (187)
Share of losses of associates (14) (4)
Profit before taxation 729 1 511 (52)
Taxation 215 398 (46)
Profit attributable to 514 1 113 (54)
shareholders
Earnings per share (cents)
- basic 302,8 626,2 (52)
- 2007 basic as previously 605,7
reported
- diluted 300,1 614,3 (51)
SUPPLEMENTARY INFORMATION
Audited Restated
12 months 12 months
ended ended
31 August 31 August
2008 2007 Change
R million R million %
Reconciliation of headline
earnings
Profit attributable to 514 1 113 (54)
shareholders
Surplus on disposal of property, (4) (11)
plant and equipment
Taxation thereon 1 3
Headline earnings 511 1 105 (54)
Number of shares in issue (000) 170 500 180 000
Treasury shares held (000) (7 365) (4 506)
Number of shares held outside the 163 135 175 494 (7)
Group (000)
Weighted average number of shares
in issue (000)
- basic 169 807 177 861 (5)
- diluted 171 321 181 319
Headline earnings per share
(cents)
- basic 301,0 621,7 (52)
- 2007 basic as previously 601,3
reported
- diluted 298,3 609,8 (51)
Distribution to shareholders 152 303 (50)
(cents)
- Interim 111 246
- Final (proposed) 41 57
Operating margin (%) 6,3 12,3
The earnings and headline earnings per share are calculated in
R thousands as opposed to R million.
CONDENSED STATEMENT OF CHANGES IN EQUITY
Audited Restated
31 August 31 August
2008 2007
R million R million
Share capital and premium 1 779 2 118
Opening balance 2 118 2 057
Shares purchased by JD Group Limited and (339) -
cancelled
Shares issued to share incentive trust - 61
Treasury shares (435) (255)
Opening balance (255) (18)
Shares issued to share incentive trust - (61)
Shares purchased by the share incentive (188) (222)
trust
Proceeds on disposal of shares by share 4 46
incentive trust
Loss on disposal of treasury shares 4 -
Share-based payment reserve 122 125
Opening balance 125 93
Share-based payment 32 32
Transfer to retained income (35) -
Non-distributable reserves 123 101
Opening balance 101 100
Translation of foreign entities 22 1
Retained earnings 3 157 2 859
Opening balance 2 859 3 072
Unearned revenue adjustments - (786)
1 September 2006
Profit attributable to shareholders 514 1 113
Distributable to shareholders (264) (546)
Distributable to share incentive trust 13 6
Transfer from share-based payment reserve 35 -
Shareholders for dividend 67 100
Opening balance 100 322
Distributable to shareholders 264 546
Distributable to share incentive trust (13) (6)
Paid to shareholders (296) (767)
Paid to share incentive trust 12 5
Balance at end of year 4 813 5 048
CONDENSED BALANCE SHEET
Audited Restated
31 August 31 August
2008 2007
R million R million
Assets
Non-current assets 1 397 1 403
Property, plant and equipment 653 578
Goodwill 347 347
Intangible assets 256 294
Investments and loans 93 111
Interest in associate company 28 23
Interest in joint venture (15) 3
Deferred taxation 35 47
Current assets 7 276 7 488
Inventories 1 448 1 348
Trade and other receivables (note 4) 4 503 5 041
Financial assets 3 1
Taxation 187 123
Bank balances and cash 1 135 975
Total assets 8 673 8 891
Equity and liabilities
Equity and reserves
Share capital and premium 1 779 2 118
Treasury shares (435) (255)
Non-distributable and other reserves 245 226
Retained earnings 3 157 2 859
Shareholders for dividend 67 100
Shareholders` equity 4 813 5 048
Non-current liabilities 700 1 223
Interest bearing long term liabilities 293 739
Non-interest bearing long term liability 83 79
Deferred taxation 324 405
Current liabilities 3 160 2 620
Trade and other payables (note 5) 2 064 2 206
Provisions 4 12
Interest bearing liabilities 1 000 312
Taxation 92 90
Total equity and liabilities 8 673 8 891
Directors` valuation of unlisted 143 137
investments
Capital expenditure authorised and 177 12
contracted
Capital expenditure authorised and not yet 144 141
contracted
Operating lease commitments 1 587 1 391
Net asset value per share (cents) 2 822,9 2 804,5
Gearing ratio (net) (%) 3,3 1,5
CONDENSED CASH FLOW STATEMENT
Audited Restated
12 months 12 months
ended ended
31 August 31 August
2008 2007
R million R million
Cash flows from operating activities 629 (21)
Cash generated by trading 1 008 1 772
Decrease/(increase) in working capital 301 (220)
Cash generated by operations 1 309 1 552
Investment income 30 75
Finance costs - net (86) (146)
Taxation paid (340) (740)
Cash available from operating activities 913 741
Dividends paid (284) (762)
Cash flows from investing activities (188) (183)
Increase in investment in joint venture (7) -
Investment and loan receipts 18 10
Proceeds on disposal of property, plant 11 17
and equipment
Additions to property, plant and equipment (210) (210)
Cash flows from financing activities (281) (438)
Proceeds on disposal of treasury shares by
share
incentive trusts 4 46
Purchase of treasury shares (188) (222)
Shares bought back and cancelled (339) -
Long term borrowings raised 550 -
Long term borrowings repaid (200) (170)
Finance lease liabilities repaid (108) (92)
Net increase/(decrease) in cash and cash 160 (642)
equivalents
Cash and cash equivalents at beginning of 975 1 617
year
Cash and cash equivalents at end of year 1 135 975
Capital expenditure incurred 210 210
NOTES
1. Accounting policies
2.
The accounting policies used in the preparation of this profit announcement,
which are compliant with International Financial Reporting Standards, as issued
by the International Accounting Standards Board, are consistent with those
applied in the previous financial year ended 31 August 2007, except for the
change in basis of accounting for recognising insurance revenue and initiation
fees, as set out in note 10 below and the adoption of the following new or
revised accounting standards and interpretations:
- IFRS 7 - Financial instruments: Disclosures
- Amendment to IAS 1 - Capital Disclosures
- IFRIC 10 - Interim financial reporting and impairment
- IFRIC 11 - Share-based payment involving an entity`s own equity instruments in
which an entity chooses or is required to buy its own equity instruments
(treasury shares) to settle the share-based payment obligation.
The adoption of these new or revised accounting standards and interpretations
had no material impact on the Group. This profit announcement was compiled in
terms of IAS 34 Interim reporting and the JSE Limited Listing Requirements.
Audited Restated
12 months 12 months
ended ended
31 August 31 August
2008 2007
R million R million
2. Debtors costs
Increase in impairment provision 36 184
Bad debts written off 862 641
898 825
3. Finance costs - net
Finance costs
Interest paid 188 182
Fair value losses on financial - 5
instruments
188 187
Finance income
Interest received (102) (36)
Fair value gains on financial (2) -
instruments
(104) (36)
Finance costs - net 84 151
Audited Restated
31 August 31 August
2008 2007
R million R million
4. Trade and other receivables
Instalment sale receivables (a) 4 636 5 119
Less: Impairment provision (617) (581)
Net instalment sale receivables 4 019 4 538
Other receivables 484 503
Total trade and other receivables 4 503 5 041
Provisions as a percentage of 13,3 11,3
instalment sale receivables (%)
In accordance with industry norms, amounts due from instalment sale receivables
after one year are included in current assets. The credit terms of instalment
sale receivables range from six to 36 months.
a. Classified as loans and receivables and carried at amortised cost.
5. Trade and other payables
The directors consider the carrying amount of trade and other payables to
approximate their fair values. The credit period of trade payables ranges
between 30 and 120 days.
6. Diluted earnings and headline earnings per share
The number of shares for diluted earnings purposes has been calculated after
considering the dilutive impact of share options and the cash value to be
received in future, in respect of unissued shares granted to employees.
7. Related parties
The Group entered into various transactions with related parties which occurred
under terms that are no more favourable than those arranged with independent
third parties.
8. Contingent liabilities
Certain group companies are involved in disputes where the outcome is uncertain.
The Group is regularly subject to evaluations, by the tax authorities, of its
direct and indirect taxation filings and in connection with such reviews,
disputes sometimes arise with the taxation authorities. These disputes may not
necessarily be resolved in a manner that is favourable for the Group and the
resolution of these disputes could potentially result in an obligation for the
Group.
The Group remains in discussions with the relevant taxation authorities on
specific matters and transactions in addition to those mentioned below,
regarding the application and interpretation of taxation legislation affecting
the Group and the industry in which it operates.
The directors are confident that the Group will be able to defend any actions
and that the probability of significant outflow or settlement is remote.
Towards the end of 2006, the South African Revenue Services ("SARS") issued an
additional assessment against a group company for the 2002 year of assessment
amounting to R45 million (excluding interest and penalties), disallowing the tax
deduction that was claimed in relation to an intellectual property sale and
leaseback transaction entered into during 2001. The company objected to the SARS
assessment. The Group will, based on advice received from legal and other
advisors including senior counsel, continue to dispute this assessment and
remains confident that it is unlikely that a significant liability will arise in
this regard. Should assessments be issued on a similar basis for the 2003 to
2008 years, additional taxation of R264 million (excluding interest and
penalties) will be levied by SARS. The transaction concludes in 2009.
Towards the end of 2007, SARS served notice of its intention to assess a group
company for the 2001 and 2002 years of assessment amounting to R28 million
(excluding interest and penalties), disallowing the interest deduction that was
claimed in relation to a compulsory convertible loan transaction entered into
during 2001. The Group has, based on advice received from legal and other
advisors including senior counsel, submitted its reasons why it believes that
SARS has no grounds to issue such assessment. Should SARS assess the 2003 to
2006 years on a similar basis, additional taxation of R120 million (excluding
interest and penalties) will be levied by SARS. The transaction concluded in
2006.
In the early part of 2008 a third party was issued with an additional assessment
for periods up to 2005 by SARS relating to a debt defeasance transaction. The
liability relating to this additional assessment will be claimed by the third
party from a group company. The third party has taken advice from senior counsel
and is confident that it can defend the assessment. The assessment gives rise to
additional taxation of R114 million (excluding interest and penalties). Should
SARS assess the 2006 year on a similar basis, additional taxation of R5 million
(excluding interest and penalties) will be levied. The transaction concluded in
2006.
In addition, in a matter related to the compulsory convertible loan transaction
mentioned above, a third party has claimed R197 million from the Group. The
Group will, based on advice obtained from legal and other external advisors,
defend this matter and remains confident that it is unlikely that a significant
liability will arise in this regard.
The issues in dispute are of a complex nature and it is anticipated that these
matters will remain unresolved for an extended period.
9. Subsequent events
No significant events other than those disclosed in the profit announcement have
occurred in the period between 31 August 2008 and the date of this announcement.
10. Restatement of comparative figures
The Group issues, as an intermediary, insurance contracts underwritten by a
third party insurance company.
Industry practice was that single insurance premiums payable to insurance and
credit retail industries during the year were accounted for using one of two
generally accepted methods. The insurance income was either recognised
immediately upon inception of the contract or over the period for which
insurance cover is provided. The Group applied the former. Consideration of the
continued application of this policy, both as it relates to policies sold before
and after the implementation of the National Credit Act, has led the Group to
conclude that despite the diversity in practice, it is now better reflected in
being accounted for on a time proportionate basis.
Furthermore, the National Credit Act also requires our industry to compute and
collect insurance income from our customers on a monthly basis and not to write
these insurance premiums into the credit agreements for the term of the credit
agreements.
The recognition of initiation fees, which as an industry practice has been
recognised at inception, will now also be recognised over the term of the credit
agreement.
These changes have resulted in changes to the provisions that the Group is
required to carry. The existing rebate provision is no longer required. In
addition, the gross value of a debtors account used to calculate the impairment
provision now excludes these income streams, unless such income is in arrears.
As a result of this change in the basis of accounting, comparative figures have
been restated to account for insurance income and initiation fees over the term
of the credit agreements, including adjustments to the related provisions
previously carried.
Impact of restatements on reported balance sheets
12 months 12 months
ended ended
31 August 31 August
2007 2006
R million R million
Net instalment sale receivables
Balance as previously reported 5 620 5 711
Restatement effect - 1 September 2006 (1 134) (1 134)
Restatement effect 52 -
Balance as currently reported 4 538 4 577
Other receivables
Balance as previously reported 375 335
Restatement effect - 1 September 2006 130 130
Restatement effect (2) -
Balance as currently reported 503 465
Trade and other payables
Balance as previously reported 2 115 2 073
Restatement effect - 1 September 2006 92 92
Restatement effect (1) -
Balance as currently reported 2 206 2 165
Retained income
Balance as previously reported 3 609 3 072
Restatement effect - 1 September 2006 (786) (786)
Restatement effect - income statement 36 -
Balance as currently reported 2 859 2 286
Deferred taxation liability
Balance as previously reported 700 721
Restatement effect - 1 September 2006 (310) (310)*
Restatement effect 15 -
Balance as currently reported 405 411
*A detailed tax calculation was performed at year end on the effects of the
restatements. The adjustment to deferred taxation is R8,0 million less than that
reported in May 2008.
Impact of restatements on reported income statement
12 months
ended
31 August
2007
R million
Revenue
Balance as previously reported 12 907
Restatement effect 7
Balance as currently reported 12 914
Debtors costs
Balance as previously reported 869
Restatement effect (44)
Balance as currently reported 825
Taxation
Balance as previously reported 383
Restatement effect 15
Balance as currently reported 398
Profit attributable to shareholders
Balance as previously reported 1 077
Restatement effect 36
Balance as currently reported 1 113
Impact of restatements on reported cash flow statement
The restatements had no overall effect, but there was a reclassification between
cash generated by trading and working capital of R51 million.
SEGMENTAL ANALYSIS - BUSINESS DIVISIONS
Traditional Financial
retail services
Year ended 31 August 2008 2007 2008 2007
Revenue Rm 5 243 5 928 3 073 3 285
Operating profit Rm 111 642 622 808
Depreciation Rm 50 12
Total assets Rm 1 056 984 4 019 4 533
Total current Rm 1 096 1 030 87 40
liabilities
Capital expenditure Rm 44 17
Operating margin % 2,1 10,8 20,2 24,6
Total sale of Rm 4 488 4 989
merchandise
Share of Group sale % 48,4 53,5
of merchandise
Credit sales Rm 3 061 3 597
Percentage of total % 68,2 72,1
Cash sales Rm 1 427 1 392
Percentage of total % 31,8 27,9
Number of stores 953 951 953 951
Revenue per store R000 5 502 6 233 3 225 3 454
Retail square 515 888 521 094 57 300 57 900
meterage
Revenue per square Rand 10 163 11 376
metre
Number of employees 9 470 9 915 5 100 5 256
Revenue per employee R000 554 598 603 625
Instalment sale Rm 4 019 4 538
receivables - net
Impairment provision Rm 617 581
Bad debts written off Rm 862 641
Receivables` arrears Rm 898 801
Deposit rate on % 12,9 13,2
credit sales
Collection rate % 6,6 6,8
Average length of the Months 15,2 14,7
book
SEGMENTAL ANALYSIS - BUSINESS DIVISIONS (continued)
Cash Interna-
retail tional
Year ended 31 August 2008 2007 2008 2007
Revenue Rm 4 013 3 857 800 501
Operating profit Rm 230 270 49 22
Depreciation Rm 31 21 5 3
Total assets Rm 909 742 244 121
Total current Rm 703 571 154 92
liabilities
Capital expenditure Rm 48 55 6 5
Operating margin % 5,7 7,0 6,1 4,4
Total sale of Rm 3 991 3 838 796 498
merchandise
Share of Group sale of % 43,0 41,2 8,6 5,3
merchandise
Credit sales Rm
Percentage of total %
Cash sales Rm 3 991 3 838 796 498
Percentage of total % 100,0 100,0 100,0 100,0
Number of stores 80 72 62 55
Revenue per store R000 50 163 53 569 12 903 9 109
Retail square meterage 77 051 72 064 44 063 40 718
Revenue per square Rand 52 082 53 522 18 156 12 304
metre
Number of employees 3 122 3 182 718 629
Revenue per employee R000 1 285 1 212 1 114 797
Instalment sale Rm
receivables - net
Impairment provision Rm
Bad debts written off Rm
Receivables` arrears Rm
Deposit rate on credit %
sales
Collection rate %
Average length of the
book Months
SEGMENTAL ANALYSIS - BUSINESS DIVISIONS (continued)
Corporate Group
Year ended 31 2008 2007 2008 2007
August
Revenue Rm (519)# (657)# 12 610 12 914
Operating profit Rm (215) (151) 797 1 591
Depreciation Rm 46 81 132 117
Total assets Rm 2 445 2 511 8 673 8 891
Total current Rm 1 120 887 3 160 2 620
liabilities
Capital Rm 112 133 210 210
expenditure
Operating margin % 6,3 12,3
Total sale of Rm 9 275 9 325
merchandise
Share of Group % 100,0 100,0
sale of
merchandise
Credit sales Rm 3 061 3 597
Percentage of % 33,0 38,6
total
Cash sales Rm 6 214 5 728
Percentage of % 67,0 61,4
total
Number of stores 1 095 1 078
Revenue per store R000 11 516 11 980
Retail square 694 302 691 776
meterage
Revenue per square Rand 18 162 18 668
metre
Number of 579 575 18 989 19 557
employees
Revenue per R000 664 660
employee
Instalment sale Rm 4 019 4 538
receivables - net
Impairment Rm 617 581
provision
Bad debts written Rm 862 641
off
Receivables` Rm 898 801
arrears
Deposit rate on % 12,9 13,2
credit sales
Collection rate % 6,6 6,8
Average length of 15,2 14,7
the book Months
#Elimination of interdivisional origination fees.
Comparative figures in the segmental analysis have been restated to take into
account additional origination fees paid by Financial Services to Traditional
Retail and Cash Retail, amendments to the expense allocations between Financial
Services and Traditional Retail and an allocation of corporate expenses to
Traditional Retail, Financial Services and Cash Retail. These restatements
relate to interdivisional allocations and have no effect on the overall Group
results.
ADMINISTRATION
JD Group Limited ("JD" or "the Group")
Registration number 1981/009108/06
JSE code JDG
ISIN ZAE000030771
Executive directors
ID Sussman (chairman), AG Kirk (chief executive officer), KR Chauke, Dr HP
Greeff, ID Thompson, G Volkel
Non-executive director
IS Levy
Independent non-executive directors
VP Khanyile, ME King, Dr D Konar, M Lock, MJ Shaw, GZ Steffens
Company secretary
JMWR Pieterse
Registered office
11th Floor, JD House, 27 Stiemens Street, Braamfontein,
Johannesburg, 2001 (PO Box 4208, Johannesburg, 2000)
Telephone +27 11 408 0408
Facsimile +27 11 408 0604
Email: info@jdg.co.za
Transfer secretaries
Computershare Investor Services (Proprietary) Limited
70 Marshall Street, Johannesburg, 2001
Telephone +27 11 370 5000
Facsimile +27 11 688 5238
ADR depository
File number 82-4401, The Bank of New York Company Inc.
One Wall Street, New York, NY 10286
United States of America
Telephone +1 212 495 1284
Facsimile +1 212 635 1121
Sponsor
PSG Capital (Proprietary) Limited, Building No 8, Woodmead Estate,
1 Woodmead Drive, Woodmead, Sandton, 2157
Telephone +27 11 797 8400
Facsimile +27 11 802 3689
Independent auditors
Deloitte & Touche
www.jdgroup.co.za
Date: 17/11/2008 07:05:06 Produced by the JSE SENS Department.
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