| Tue 7 Dec 2010, 7:05 | | SHF - Steinhoff International Holdings Limited - Results of annual general |
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SHF
SHF
SHF - Steinhoff International Holdings Limited - Results of annual general
meeting ("the AGM") and the chief executive officer`s statement
STEINHOFF INTERNATIONAL HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration no.: 1998/003951/06)
Ordinary share code: "SHF"
ISIN: ZAE000016176
("the Company")
RESULTS OF ANNUAL GENERAL MEETING ("the AGM") AND THE CHIEF EXECUTIVE OFFICER`S
STATEMENT
RESULTS OF AGM
Shareholders are advised that all the ordinary and special resolutions proposed
in the Notice of Annual General Meeting dated 12 November 2010, were passed by
the requisite majorities of shareholders present and represented by proxy and
being entitled to vote at the AGM held on 6 December 2010 (with accenting voting
percentages ranging from 83.2% to 99.9%). Shareholders and/or their
representatives holding or representing 79.7% of the issued share capital and
being eligible to attend and vote, were present or represented at the AGM. The
special resolutions will be lodged for registration with the Registrar of
Companies.
CHIEF EXECUTIVE OFFICER`S STATEMENT
OPERATIONS OVERVIEW
STEINHOFF AFRICA AND PACIFIC RIM
Overall, the African operations performed in line with expectations and on a
very similar trend to that experienced in the prior financial year.
Once again, the Unitrans group delivered an excellent performance for the
quarter. All three divisions, consisting of the logistics, passenger and
automotive divisions, were on budget and exceeded their prior year results.
The ongoing pressure on the building industry in South Africa continues to have
a knock-on effect on the Timber and Building material retail markets. In spite
of this our Timber operations came in on budget for the period under review,
which is a marked improvement compared to the prior year.
The building material retail division continues to deliver results in line with
the industry. The group is constantly reviewing its overheads and
infrastructure in order to improve its bottom-line performance in the face of
weak demand, which we expect to continue.
The Raw Material operations continue to grow in line with expectations and are
on track to achieve the performance targets set for the current financial year.
Our African operations continue to investigate opportunities in South Africa and
across the African continent and a number of business units are currently
expanding into Africa. Our operations in the Pacific Rim have seen a marked
improvement in the performance compared to the prior year, albeit still not at
desired levels. The management team, with the assistance of our group services
team, has put a lot of time and effort into the business and we expect the
business to show continuous improvement as the year progresses. Our sourcing
operations in the East again delivered a solid growth performance and service
levels remain excellent.
STEINHOFF EUROPE
Our European business reported good results for the quarter under review, in
line with expectations.
The Continental European retail division`s performance was the highlight of the
quarter under review and delivered good top line growth at slightly improved
margins. The resilience of the German, Austrian and Swiss economies supported
the good results in our European divisions.
This territory presents a number of exciting consolidation opportunities, as
well as access to territories in which the Company does not currently have a
presence.
Performance during October and November exceeded expectations and bodes well for
a solid interim performance, measured in constant currency. However, the Rand,
as reporting currency, has been much stronger than the comparative period last
year and this will again have an effect on translating foreign currency
denominated income into Rand.
The UK is experiencing challenging trading conditions as a result of the
uncertain economic environment and fiscal policy changes brought about by the
Coalition government. However, our UK operations are holding their own and
gained market share in the UK. The timeous closure of some Irish retail
operations will affect like-for-like growth, but should have a positive impact
on margins.
The manufacturing divisions of Eastern Europe reported solid results, much in
line with the prior year notwithstanding a volatile currency environment.
The consolidation of the industry is continuing on a daily basis and Steinhoff
is well positioned to participate in this process as it develops.
Our brand management activities have performed satisfactorily for the quarter
under review, with royalty income achieved on budget. The treasury function
performed well and underlying margins for the business as a whole remain on
track. We are continuing, through our Investment Participation activities, to
invest in our retail footprint, particularly in Eastern Europe.
CAPITAL MARKETS
Financial markets showed renewed levels of interest and activity in recent
months. This was underpinned by improved liquidity, at spreads substantially
lower than those of a few months back. The Company took advantage of these
favourable market conditions and launched a Euro300m convertible bond on 15
September 2010. Within an hour of opening the book, the Company received
applications that far exceeded our expectations or requirements and eventually
closed the book on Euro390 million with a 5% coupon. The funds raised have
strengthened the Company`s balance sheet and extended the debt maturity profile
to 2016.
Working capital management for the consolidated group was better than budgeted
and resulted in lower finance charges compared to budget. In all of the
divisions, working capital management remained a focus area, thereby achieving
the appropriate stock levels and resultant cash generation.
CONCLUSION
Most of our operations are continuing on the same trend as in the first quarter
and we expect the group to deliver interim results in line with the above,
following the completion of the second quarter.
I would like to thank our management teams and stakeholders across the world for
their support during the year, and a special thanks to our shareholders for
their overwhelming support in approving the resolutions proposed at the annual
general meeting.
SJ Grobler
Company Secretary
Wynberg, Sandton
7 December 2010
Sponsor: PSG Capital (Proprietary) Limited
Date: 07/12/2010 07:05:28 Produced by the JSE SENS Department.
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