| Wed 8 Aug 2001, 0:00 | | Renaissance Retail Group Ltd - Audited Financial S |
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2001
GROUP INCOME STATEMENT
Audited Audited
16 months ended 15 months ended
31/07/2001 31/03/2000
R000's R000's
Revenue 292,065 262,487
(Loss)/profit from operations 412 25,502
Net interest (paid)/received (241) 1,620
Profit before exceptional item 171 27,122
Exceptional item (Note 1) 73,331 7,353
Profit before taxation 73,502 34,475
Taxation 699 6,128
Profit after taxation 72,803 28,347
Minority interest - 445
Profit for the period 72,803 28,792
Headline earnings per share
(cents) (Note 2) (0.37) 18.3
Earnings per share (cents) 50.8 24.5
Dividend per share (cents) - 3.0
weighted average shares in issue ('000) 143,211 117,310
Total number of shares in issue ('000) 144,780 140,597
Notes
Note 1
Comprises the net surplus on the disposal
and discontinuation of the businesses
Note 2
Reconciliation of headline earnings
Profit for the period 72,803 28,792
Exceptional item 73,331 7,353
Headline earnings (528) 21,439
STATEMENT OF CHANGES IN EQUITY
Audited Audited
16 months ended 15 months ended
31/07/2001 31/03/2000
R000's R000's
Ordinary Shareholder's Equity at
beginning of period 47,535 41,431
Share capital raised 42 540
Share premium raised 64,177
Trademarks and goodwill applied
against share premium (83,543)
Share issue expenses applied against
share premium (12) (3,828)
Movement in reserves
Retained for the period 72,803 28,792
Payment of dividends proposed in
respect of the period ended 31 March 2000 (1,655)
Foreign currency translation reserve (34)
Ordinary Shareholder's Equity
at end of period 118,713 47,535
ABRIDGED GROUP CASH FLOW STATEMENT
Audited Audited
16 months ended 15 months ended
31/07/2001 31/03/2000
R000's R000's
Cash inflow/(outflow) from:
Operating activities (25,597) 10,930
Investing activities 99,606 (20,517)
Financing activities 98 (3,846)
Net increase/(decrease) in cash resources 74,107 (13,433)
Cash resources at beginning of period 2,229 15,662
Cash resources at end of period 76,336 2,229
GROUP BALANCE SHEET
Audited Audited
31/07/2001 31/03/2000
R000's R000's
ASSETS
Non-current assets 44,228 48,527
Fixed assets 5 21,706
Investment 38,067 21,636
Loan to share incentive trust 6,156 5,185
Current assets 76,879 89,470
Inventories - 57,873
Receivables 543 29,368
Cash resources 76,336 2,229
121,107 137,997
EQUITY AND LIABILITIES
Equity and reserves 118,713 49,095
Issued capital 10,681 10,653
Reserves 108,032 36,882
Minority interests - 1,560
Non-current liabilities - 806
Long-term liabilities - 435
Deferred taxation - 371
Current liabilities 2,394 88,096
Payables 1,944 64,523
Due to vendors - 17,798
Current portion of long-term liabilities - 278
Taxation 450 5,497
121,107 137,997
Net tangible asset value per share (cents) 82.0 34.9
UNBUNDLING AND DISTRIBUTION UPDATE
COMMENTARY
Renaissance has, during the course of the reporting period, disposed of all
its trading businesses and realised major assets and investments as follows:
Glicks and Forty Winks, The Mattress Factory, Dial-a-Bed and Bruce the Bed
King retail businesses and the King Koil and Dunlopillo assembly facilities
were acquired by Relyant Retail Limited ("Relyant") with effect from 1st
February 2001; and
The shareholding in eCompany Limited was disposed of to Cycad Financial
Holdings Limited. ("Cycad") with effect from 27th July 2001.
In addition, Renaissance has disposed of its other assets and investments in
order to proceed with an unbundling and distribution to shareholders of the
entire proceeds realised.
The audited financial statements as at 31 July 2001 reflect all of the
disposals, the net surplus of which is to be distributed to shareholders in
the form of cash, Relyant shares and Cycad shares. The accounts also give
effect to the accrual of anticipated disbursements in respect of the
unbundling.
The amounts reflected as receivables and the indebtedness of the share trust
together with the proceeds realised from the sale of sundry assets, will all
be paid by the unbundling date and as a result will form part of the cash
amount available for distribution to shareholders.
As previously reported Renaissance will therefore be proceeding with an
unbundling of the company's entire shareholding in Relyant and Cycad which
consists of 16,705,385 Relyant shares and 18,194,250 Cycad shares and a
distribution of cash to its shareholders. It is intended to implement the
unbundling by way of a distribution in specie in terms of section 60 of the
Income Tax Act, 1993 (Act 113 of 1993), as amended, approval for which has
been granted by the South African Revenue Services.
During the course of the past five months consideration has been given to
injecting new assets into Renaissance. Various alternatives relating to the
future strategic direction of the company were also considered however,
given prevailing market conditions, none were deemed suitable. If
appropriate, consideration will still be given to a transaction which may
deliver value to shareholders prior to the finalisation of the unbundling,
failing which no purpose will be served by Renaissance's continued listing.
The unbundling achieves the following main objectives:
to unlock value for shareholders by virtue of the Relyant and Cycad shares
being distributed to Renaissance shareholders; and
to allow Renaissance shareholders flexibility with their investment
criteria and the ability to retain or dispose of the Relyant or Cycad
unbundling shares in accordance with their own portfolio requirements; and
to give Renaissance shareholders participation in one of the largest
furniture and bedding groups in the South African marketplace via the
investment in Relyant; and
to provide Renaissance shareholders an investment in the diversified Cycad
portfolio of IT and service sector businesses; and
the distribution of a cash amount by way of a final liquidation dividend
which will become payable to Renaissance shareholders registered as such on
the record date for the unbundling.
A circular containing full details of the unbundling and a notice of general
meeting of Renaissance shareholders is being prepared and will, subject to
JSE and other regulatory conditions and approvals, be posted to Renaissance
shareholders shortly. A further announcement setting out details of the
unbundling, including the exact amount of cash, together with net interest
earned up to the distribution date, as well as the final salient dates for
the unbundling, will be published in the press in due course.
The Board has every confidence that Renaissance shareholders will be well
rewarded in the future with their investments in Relyant and Cycad.
By Order of the Board
Sandton, Johannesburg
10 August 2001
Directors: J L Pamensky* (Chairman), M J Cohen (Deputy Chairman), C R
Sneider (Chief Executive Officer), O A Glick*, P D Glick*, S A Cohen*, R P
Blau*, S Cohen*, C W Fox*, P Glick*, L G Rapp* (*Non-Executive), B Wolpe*
(Company Secretary)
