| Mon 5 Mar 2001, 0:00 | | Steinhoff - Interim Results |
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STEINHOFF INTERNATIONAL HOLDINGS LIMITED
Registration number 1998/003951/06
ANNOUNCEMENT OF INTERIM RESULTS
for the six months ended 31 December 2000
Consolidated Income Statement
for the six months ended 31 December 2000
Unaudited Unaudited Audited
Six Six Twelve
months months months
31 Dec 31 Dec 30 June
2000 1999 % 2000
R'000 R'000 change R'000
Revenue 3 027 449 2 551 872 19 4 594 086
Operating earnings
before profit on
disposal of fixed assets 327 436 274 421 19 536 334
Profit on disposal
of fixed assets - - 26 586
Earnings before
depreciation, interest
and taxation 327 436 274 421 19 562 920
Depreciation (39 676) (43 296) (77 001)
Earnings before interest
and taxation 287 760 231 125 25 485 919
Net finance charges (19 735) (25 026) (51 125)
Earnings before taxation 268 025 206 099 30 434 794
Taxation (12 834) (10 802) 19 (16 091)
Earnings after taxation 255 191 195 297 31 418 703
Share of associated
companies' retained
income 14 001 (952) 13 276
Attributable to
outside shareholders 622 30 732
Income attributable
to shareholders 269 814 194 375 39 432 711
Number of shares
in issue ('000 ) 822 823 783 237 5 804 552
Weighted average number
of shares in issue ('000) 817 616 776 549 5 785 043
Attributable
income (R'000) 269 814 194 375 39 432 711
Headline earnings (R'000) 269 814 194 375 39 406 125
Earnings per share (cents) 33,0 25,0 32 55,1
Headline earnings
per share (cents) 33,0 25,0 32 51,7
Dividend per share (cents) - - 9,0
Abridged consolidated balance sheet
at 31 December 2000
Unaudited Unaudited Audited
31 Dec 31 Dec 30 June
2000 1999 2000
R'000 R'000 R'000
ASSETS
Non-current assets
Fixed assets 1 701 665 1 543 168 1 522 880
Investments and loans 398 372 54 231 260 293
2 100 037 1 597 399 1 783 173
Current assets
Total current assets 2 387 421 1 868 389 2 387 624
Total assets 4 487 458 3 465 788 4 170 797
EQUITY AND LIABILITIES
Capital and reserves
Ordinary shareholders' equity 2 547 916 1 837 027 2 203 563
Outside shareholders' interest 17 464 17 377 16 733
Non-current liabilities
Long-term liabilities 326 002 200 337 203 375
Deferred taxation 7 600 7 280 9 830
333 602 207 617 213 205
Current liabilities
Net interest bearing 380 195 382 317 438 248
Other 1 208 281 1 021 450 1 299 048
1 588 476 1 403 767 1 737 296
Total equity and liabilities 4 487 458 3 465 788 4 170 797
Number of shares in issue ('000 ) 822 823 783 237 804 552
Tangible net asset value per share ( cents ) 310 235 274
Gearing ratio (net) (%) 28 32 29
Abridged consolidated cash flow statements
for the six months ended 31 December 2000
Unaudited Unaudited Audited
Six Six Twelve
months months months
31 Dec 31 Dec 30 June
2000 1999 2000
R'000 R'000 R'000
Operating profit before working
capital changes 269 772 259 657 429 328
Net changes in working capital 109 229 (129 727) (407 814)
Cash generated from operations 379 001 129 930 21 514
Net finance costs (19 735) (25 026) (50 276)
Dividends paid (14 482) (8 472) (8 472)
Taxation (28 611) (14 475) (9 560)
Net cash inflow/(outflow) from
operating activities 316 173 81 957 (46 794)
Net cash outflow from investing
activities (211 396) (320 157) (539 330)
Net cash inflow/(outflow) from
financing activities (330 642) 324 642 745 193
Net increase/(decrease) in cash
and cash equivalents (225 865) 86 442 159 069
Effects of exchange rate changes
on cash and cash equivalents 4 854 9 335 (6 124)
Cash and cash equivalents
- beginning of period 290 845 137 900 137 900
Cash and cash equivalents
- end of period 69 834 233 677 290 845
Statement of changes in equity
for the six months ended 31 December 2000
Non
Share distri- Distri-
capital and butable butable
premium reserves reserves Total
R'000 R'000 R'000 R'000
Balance at 30 June 2000 1 583 778 39 884 579 901 2 203 563
Earnings attributable to
ordinary shareholders 269 814 269 814
Issue of share capital 57 783 57 783
Foreign currency
translation reserve 16 756 16 756
Share of associated
companies' retained
earnings transferred
to non-distributable
reserves 14 001 (14 001) -
Balance at
31 December 2000 1 641 561 70 641 835 714 2 547 916
Comments
Review of results
The Board is pleased to report that the Group's headline earnings for the
six months ended 31 December 2000 grew by 39% to R270 million (1999: R194
million) on increased revenues of 19%.
Operating margin was maintained at 10% during the period and the margin is
expected to improve during the second six months of the financial year, as a
result of the seasonality of trading in Europe, which is much stronger during
the second six months of the Group's financial year.
Net finance charges reduced by R5,3 million as a result of better working
capital management and continuing favourable interest rates.
The relatively low effective tax charge is due mainly to the Group's favourable
tax dispensations in Central Europe. The effective tax rate is not anticipated
to change materially in the foreseeable future.
Headline earnings per share increased 32% to 33 cents (1999: 25 cents).
Segmental analysis
The Group's main activity as an integrated global lifestyle supplier is now
focused on manufacturing and wholesale & distribution.
Six months ended 31 December 2000
Earnings
before
interest Net
R'000 Revenue % and tax % assets %
Manufacturing 2 259 677 75 195 722 65 1 886 227 74
Wholesale and
distribution 767 772 25 106 039 35 661 689 26
Total 3 027 449 100 301 761* 100 2 547 916 100
*Earnings before interest and taxation includes share of income from associate
companies of R14 001 000.
Geographical analysis
The Group's operations are located in southern Africa, the European community,
Eastern Europe and Australia.
Six months ended 31 December 2000
Earnings
before
interest Net
R'000 Revenue % and tax % assets %
Southern Africa 1 315 175 43 112 764 37 1 109 038 44
European
community 1 125 443 37 144 983 48 1 026 474 40
Eastern Europe 561 995 19 41 940 14 402 320 15
Australia 24 836 1 2 074 1 10 084 1
Total 3 027 449 100 301 761* 100 2 547 916 100
An average exchange rate of R3,34: 1DM (1999: R3,25: 1DM) was used to translate
foreign currency income and expenditure into South African rand.
R275 million (1999: R236 million) of Africa's revenue represents exports to the
USA and the European community, amounting to approximately 25% of its
activities. It is the intention of the Group to continue to substantially
increase these exports into the future. The Group's exposure to the local South
African furniture market is 25% (1999: 27%).
Corporate activity
The Group continued, during the period under review, to implement a number of
transactions, as well as commenced new initiatives in order to ensure the
future growth of its businesses and earnings.
Steinhoff Australia acquired a local wholesaling and distribution company,
G & G Furniture Imports (Pty) Limited, giving it a footprint in all the states
of Australia. The Group believes that Australia holds enormous growth
opportunities into the future, as well as for exports from Eastern Europe and
South Africa through this new network. The acquisition of a local case goods
factory is currently being investigated, which, if consumated, will also
enhance the Group's expansion in this area.
Steinhoff Africa has disposed of its remaining transport and logistics
operations to Unitrans Limited, which company is a recognised specialist in
this field and would result in total focus in this area.
Dividend
It is the Group's policy to declare dividends once a year, after its financial
year-end at 30 June.
Prospects
The Group will continue on its very focused path to increase market share
within the European community, build its business in Australia and to
capitalise on the rationalisation of the South African furniture market, which
will further be enhanced with the electronic marketplace for household goods
being established.
Steinhoff Africa will continue to increase its exports out of Africa and invest
further in raw material production facilities, especially in the saw milling
business, and various proposals are currently being evaluated in order to
realise this vision.
Steinhoff Europe is set to expand its case goods division into foil furniture,
a sector currently not exploited, and discussions have commenced with a major
player in this field, which, if completed, will give the Group an immediate
entry into this lucrative sector.
Steinhoff Europe intends to develop brands for its household goods division.
This will allow it to broaden its base in this market and discussions with a
major USA producer with some of the strongest brands in the world have led to
proposals being currently examined which the Group believes will enhance its
position in the European market.
Steinhoff United Kingdom has been on the acquisition trail since commencing
business there two years ago; two possible acquisitions are currently being
evaluated which, if completed, will increase our market share and profitability
in this territory.
Management is confident that the Group will continue to achieve above-average
earnings growth for the rest of the financial year.
By order of the Board
S J Grobler
Company secretary
6 March 2001 Registered office
28 6th Street, Wynberg, Sandton, 2090 Tel +27 (11) 445 3000 Fax +27 (11) 445
3099
Transfer secretaries
Mercantile Registrars Limited, First National House, 11 Diagonal Street,
Johannesburg, 2001
Directors
B E Steinhoff* (Chairman), M J Jooste (Managing), D E Ackerman , C E Daun , K J
Grove ,
D Konar , F J Nel, N W Steinhoff*, D M van der Merwe *German Non-executive
Company secretary S J Grobler
website: www.steinhoffinternational.comMagoKPMStandard BasicCollection iSteinpo
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