Tradehold Limited - Tradehold To Pursue Rights Iss
With the announcement yesterday (Thursday, 16 August) of its results for the
year to 30 June, Tradehold said it was to continue with plans for a rights
issue to discharge local debt of R500 million.
Tradehold took over this debt when it was launched with the restructuring of
the Pepkor group in October last year. At that stage the directors of the
new company said they considered paying off the debt with the income derived
from a rights issue. Those plans were put on the back burner for the time
being. Details of the share issue will be announced in the near future.
Tradehold's most important asset is the interest of 69% in the listed
British retail group Brown & Jackson, held by Pepkor before its
restructuring. Brown & Jackson's fortunes therefore to a large extent
determine Tradehold's results.
As announced earlier this week, Brown & Jackson had a disappointing year
after its record results of 2000. Tradehold's maiden annual results,
compared with pro forma figures for 2000, therefore show the same strong
downward trend.
While turnover rose by 18% to R4,756bn (2000: R4,43bn) the company's
operating profit dropped by 62% from R354m to R135m. Profit before
exceptional items but after interest paid stood at R96m (2000: R305m). After
tax and an outside shareholders' interest of R37m (2000: R77m) net profit
came to R60m (2000: R163m).
Earnings per share before exceptional items were 44,9c (2000: 136,3c) while
headline earnings per share came to 48,6c (2000: 133,8c). The board declared
a maiden dividend of 10c a share. Dividend cover is 4,5 times.
Dr Christo Wiese, chairman of both Tradehold and Brown & Jackson, said the
latter's weaker performance was mainly the result of increased competition
in Brown & Jackson's market sector and the costs of the group's rapid store
expansion programme.
The company, which at year-end operated 734 outlets, opened no fewer than
107 stores in the United Kingdom and Poland during the period under review.
Wiese said in terms of like-for-like sales Brown & Jackson performed
considerably better in the second half of the financial year. In the first
six weeks of the new year total sales were 11% higher and like-for-like
sales 1%. "Stock levels are under control, profit margins are being
maintained, and the group is confident of profit growth in the new year."
Ends
ISSUED BY DeKock & Kerkhoff Communication
Consultants
FOR Tradehold
DATE ISSUED Thursday, 16 August 2001
MEDIA ENQUIRIES Cornus Moore, Tradehold (021) 933 5137
Ben de Kock, Dek&K (021) 24 5280
Pippa Pringle
De Kock & Kerkhoff
Communication Consultants
Tel: +27 21 424 5280
Fax: +27 21 424 5290
Cell: 082 859 7740
e-mail: pippa@dkk.co.za
www.dkk.co.za
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