| Mon 5 Dec 2011, 16:37 | | SHF - Steinhoff International Holdings Limited - Results of the |
|
SHF
SHF
SHF - Steinhoff International Holdings Limited - Results of the
capitalisation share award, the Annual General Meeting 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
("Steinhoff" or "the Company")
RESULTS OF THE CAPITALISATION SHARE AWARD ("CAP AWARD"), THE ANNUAL
GENERAL MEETING ("the AGM") AND THE CHIEF EXECUTIVE OFFICER`S STATEMENT
CAP AWARD AND ELECTION TO RECEIVE A FINAL CASH DISTRIBUTION IN LIEU
THEREOF
Shareholders are referred to the announcements released on the Securities
Exchange News Service ("SENS") on 17 November 2011, and published in the
press on 18 November 2011, respectively.
The offer to receive the cash distribution in lieu of the cap award made
to shareholders recorded in the register on Friday, 2 December 2011,
closed at 12:00 on that date. Elections to receive the cash distribution
of 65 cents per share were made in respect of 207 118 350 ordinary shares
(12.5% of the Steinhoff`s issued shares), totalling an aggregate cash
distribution of R134 626 928.
Accordingly, 49 554 404 new ordinary shares in the Company (being 87.5%
of the maximum number of capitalisation shares that were the subject of
the cap award) have been issued. An adjustment to the maximum number of
shares listed in respect of the capitalisation award will be made on or
about Tuesday, 6 December 2011.
Share certificates in respect of the capitalisation shares and cheques in
respect of the distribution entitlements are in the process of being
dispatched to certificated shareholders. The Central Securities
Depository Participant accounts of uncertificated Steinhoff shareholders
have been updated or credited, as the case may be, on Monday, 5 December
2011.
RESULTS OF AGM
Shareholders are advised that all the ordinary and special resolutions
proposed in the Notice convening the AGM dated 4 November 2011, were
passed by the requisite majorities of shareholders present and
represented by proxy and being entitled to vote at the AGM held earlier
today (with assenting voting percentages ranging from 75.8% to 100.0%).
Shareholders and/or their representatives holding or representing 78.8%
of the issued share capital and being eligible to attend and vote, were
present or represented at the AGM.
CHIEF EXECUTIVE OFFICER`S STATEMENT
OPERATIONS OVERVIEW
Steinhoff had a strong first quarter under review. For the quarter 1
July 2011 to 30 September 2011, unaudited management accounts showed
headline earnings at approximately R1 bn (2010: R0.6bn). This result is
indicative of the underlying trading trends experienced in the various
business units that include the results of Conforama, as well as the JD
Group associate income. These results exclude the income of the
Automotive and Steinbuild businesses which are now included in the JD
Group results.
STEINHOFF EUROPE AND STEINHOFF AFRICA
Despite the European market being in a state of distress our mass-market
discount segment continues to gain market share at the expense of the
middle market segments.
The Conforama, UK and Pacific Rim operations reported flat revenue for
the first quarter of 2012. In an environment where the overall size of
the market has shrunk, flat revenue is an indicator of increased market
share for Steinhoff Europe. Within the UK, our core furniture brand,
Harveys, reported an approximately 20% like-for-like revenue increase,
which along with the effect of the UK unprofitable stores closures bodes
well for the furniture retail results in the UK for the remainder of the
financial year.
Steinhoff Europe experienced strong results in the Germanic speaking
markets (Germany, Austria and Switzerland) with revenue increasing by
approximately 17% for the first quarter of 2012, largely driven by a
resilient consumer in the retail environment and a good performance from
our manufacturing division, as well as new store openings and market
share gains.
The Steinhoff African operations also displayed a robust performance by
reporting revenue growth of approximately 10% increase in revenue growth
for the first quarter of 2012.
CAPITAL MANAGEMENT
The group remains well capitalised as the result of the following:
* Refinancing arrangements concluded in June 2011
* Gearing ratio maintained at 46%
* Unutilised facilities and cash balances at R20bn
STRATEGIC POSITIONING
Steinhoff has an established track record of an active investment
company. Since inception, its investment strategy has been focused on
investing in complementary assets that could provide benefits to, or
derive benefits from, the existing businesses within its portfolio.
As announced at Steinhoff`s 2011 financial year results presentation
(published on 6 September 2011), the group has firmly established the
future strategic positioning of its constituent businesses into three
distinct operating units:
- Steinhoff Europe, an integrated mass market retailer of furniture
and household goods, predominately serving the discount segment.
Since Steinhoff`s initial investment in household goods
manufacturing, this business unit has emerged as the world`s second
biggest integrated retailer of furniture and household goods. A
potential future listing of this business remains part of
Steinhoff`s strategy.
- Steinhoff Africa, a diversified industrial company operating in the
logistics, integrated timber and industrial raw materials sectors,
including its associate investment in KAP International Holdings
Limited ("KAP"). As announced on SENS on 18 October 2011 (the
"October Announcement"), Steinhoff will implement a reverse-takeover
of KAP through the disposal of Steinhoff Africa`s Industrial Assets
to KAP ("the KAP Transaction"). If implemented successfully, the
KAP transaction will result in KAP becoming an 88% held subsidiary
of Steinhoff; and
- The associate company, JD Group Limited ("JD Group"), an emerging
market retailer of furniture and household goods, motor vehicles and
DIY products, supported by a consumer finance business. Subject to,
inter alia, the implementation of the KAP Transaction and, if
applicable, the exercise of call options referred to in the October
Announcement, Steinhoff`s interest in KAP would reduce to
approximately 62% and JD Group will similarly become a subsidiary of
Steinhoff.
The above investments are supplemented by a global property portfolio
comprising commercial, industrial and retail real estate assets.
Furthermore, Steinhoff has an in-house international Group Services team
providing numerous services to its constituent businesses.
CONCLUSION
Despite tough European market conditions, we expect the group to deliver
interim results in line with internal targets following the completion of
the second quarter.
I would like to thank our board, management teams and stakeholders across
the world for their support during the year, and a special thanks to our
shareholders for their support in approving the resolutions proposed at
the AGM.
The information in this announcement has neither been reviewed nor
reported on by the Company`s external auditors.
Steinhoff Africa Secretarial Services
Company Secretary
Sponsor: PSG Capital (Pty) Limited
Wynberg, Sandton
5 December 2011
Date: 05/12/2011 16:37:01 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
