| Tue 24 May 2011, 15:25 | | HWW - Hardware Warehouse Limited - Disposal of the East London Branch of the |
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HWW
HWW
HWW - Hardware Warehouse Limited - Disposal of the East London Branch of the
Plumbing Business
HARDWARE WAREHOUSE LIMITED
Incorporated in the Republic of South Africa
(Registration number 2007/004302/06)
Share code: HWW ISIN:ZAE000104253
("Hardware Warehouse" or "the group")
DISPOSAL OF THE EAST LONDON BRANCH OF THE PLUMBING BUSINESS
The board of directors of Hardware Warehouse ("the board") is pleased to advise
its shareholders that, subsequent to the acquisition in 2008 of a franchise
business operating as a plumbing and sanitary ware retailer in the Eastern Cape
("Plumbing Business"), Hardware Warehouse has disposed of the East London branch
("the Branch") thereof for a consideration price equal to the net asset value of
the Branch, subject to the fulfilment of certain conditions precedent.
As set out in the unaudited interim results for the six months ended 31 December
2010, "The Plumbing Business reflected a loss of R2.963 million before tax,
which when compared with the same period the previous year, R3.329 million,
showed little improvement. It was during the beginning of the 2010 calendar year
that management assessed that this business, allied closely to the construction
industry, was unlikely to turn around in the foreseeable future. Hence from July
2010, four branches were reduced to two and the overheads in the remaining two
branches were reduced substantially. The closing down costs of the two branches
were accounted for in this period, and therefore increased the losses incurred
during these reported six months.
Further intense management attention will be paid to this business during early
in the 2011 calendar year. Management are committed to resolving the effects of
the Plumbing Business on the Group in the very near term."
This announcement is for information purposes only as the disposal is not
material, nor does it require any formal disclosure in terms of the JSE Listings
Requirements.
East London
24 May 2011
Designated Adviser
Merchantec Capital
Date: 24/05/2011 15:25:02 Produced by the JSE SENS Department.
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