Fashion Africa Limited - Notice On The Fashaf Resu
ENDED 28 FEBRUARY 2001
Fashion Africa Limited
(Reg No 1944/017149/06) ("Fashaf" or "the company")
(ISIN Code ZAE000016473)(ALFA Code FSH)
Shareholders are advised that the published Fashaf preliminary audited
results for the eight months ended 28 February 2001 will be adjusted to take
into account the following post balance sheet events:
- A provision for R17.8million on a Cape Town warehouse lease. The lease was
entered into in 1992. The warehouse is currently untenanted and an expected
sublease failed to materialise. In terms of AC130, the accounting statement
on provisions and liabilities, it is prudent to provide for the potential
liability under this lease.
Fashaf, together with Vestacor, will use its best endeavours to obtain an
agreement with the landlord to restructure the lease. If an agreement is
obtained with the landlord or alternatively, if the premises are sub-let,
the provision or part thereof will be reversed in future years.
- In order to be prudent, Fashaf has written off
a deferred tax asset of R5.4million. This asset related in the main to the
taxation loss in Fashaf. Given the uncertainty as to the timing of the
utilisation of this loss the deferred tax asset
was written off.
The total adjustment to shareholders funds resulting from the above is
R23.2million. To ensure the solvency and liquidity of Fashaf and pursuant to
Vestacor's earlier outlined strategy, Vesatcor is materially involved in the
turnaround of Fashaf and as such will introduce further funding into the
Company. Management has identified that the product offering and product mix
need to be changed within certain Fashaf stores. These changes to the
businesses are in the process of being implemented and should be completed
by the 2003 financial year. Whilst it is likely to take some time,
management and Vesatcor remain confident that the company will return to
profitability.
Fashaf will remain as a going concern, and will be able to meet its
obligations in the normal course of business.
The financial impact on the earnings per share, headline earnings per share
and the net asset value per share can be summarised as follows:
8 months ended 28 February 2001
Previously Subsequent
Published to adjustment
(cents) (cents)
Loss per share (8,6) (17,9)
Headline loss per share (7,9) (17,2)
Net asset value per share 8,6 (0,2)
Further details of the above adjustments are provided to Fashaf shareholders
in the annual report which will be distributed imminently.
Johannesburg
29 August 2001
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