| Mon 28 May 2018, 17:05 | | STEINHOFF AFRICA RETAIL LIMITED - Further Details On The Comparable Results |
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SRR 201805280048A
Further Details On The Comparable Results
Steinhoff Africa Retail Limited
(Previously K2017221869 (South Africa) Proprietary Limited)
(Incorporated in the Republic of South Africa)
(Registration number: 2017/221869/06)
Share Code: SRR
ISIN: ZAE000247995
(“STAR” or the “Company”)
FURTHER DETAILS ON THE COMPARABLE RESULTS
Further to the trading statement published on SENS on Friday, 25 May 2018 (“Trading
Statement”), STAR hereby provides additional detail on the adjustments made to the
comparative period’s statutory results for the six months ended 31 March 2017 (“H1FY17”), as
well as adjustments to the statutory trading statement range for the six month period ended
31 March 2018 (“H1FY18”) to be reported on.
The Comparable Results as set out in the Trading Statement have been prepared for illustrative
purposes only, in order to provide shareholders with comparable results. Because of its nature,
the historic financial information may not fairly present STAR’s financial position, changes in
equity, results of operations or cash flows.
The Comparable Results are presented in accordance with the JSE Listings Requirements, the
Guide on Pro Forma Financial Information issued by SAICA.
The Comparable Results are the responsibility of the board and were not reviewed or reported
on by STAR’s auditors.
The Comparable Results for the six months ended 31 March 2017 has been calculated as
follows:
BSG 6
Pro forma months
STAR as per Normalisation ended Pro-forma
Pre listing of effective 31 March BSG Comparable
statement tax rate 2017 adjustments STAR
R millions (a) (1) (2) (3)
Revenue 29 222 - 731 - 29 953
Operating profit
before capital items 2 964 - 62 - 3 026
- -
Net finance costs -651 - 19 16 -685
-
Profit before taxation 2 276 - 43 16 2 304
-
Taxation -618 -88 7 - -713
-
Profit for the period 1 658 -88 37 16 1 591
Profit attributable to:
-
Owners of the parent 1 653 -88 37 16 1 586
Non-controlling
interests 5 - - - 5
-
Profit for the period 1 658 -88 37 16 1 591
Headline earnings per
ordinary share (cents) 48.9 -2.6 1.1 -0.5 46.9
Basic earnings per
ordinary share (cents)
Note (b) 47.9 -2.6 1.1 -0.5 46.0
Number of ordinary
shares in issue (millions) 3 450 - - - 3 450
Weighted average
number of ordinary
shares in issue (millions) 3 450 - - - 3 450
In determining the H1FY17 Comparable Results, the H1FY17 statutory results were adjusted as
follows:
1. The STAR Reviewed 31 March 2017 results included tax adjustments of a non-recurring
nature which has been normalised by way of using the average effective tax rate for
the 12 months ending 30 September 2017. Tax adjustments include inter alia deferred
tax assets raised on previously unrecognised tax losses and therefore not recurring in
nature.
2. The column titled “BSG 6 months ended 31 March 2017” has been extracted from the
BSG management accounts for the six months ended 31 March 2017. BSG was
acquired by STAR and consolidated as part of the STAR unaudited results from 1
October 2017 to 31 March 2018. The management of STAR is satisfied with the quality
of the management accounts of BSG applied.
3. The column titled “Pro forma BSG adjustments” refers to the finance costs incurred in
funding the acquisition of BSG. The costs are not expected to be tax deductible as it is
not in the production of taxable income.
Save for otherwise stated, all comparable adjustments will have a continuing effect of the
financial results of STAR.
Notes:
(a) The column titled “Pro forma STAR as per Pre listing Statement” refers to the pro forma
adjusted results of STAR included in annexure 3 of the Pre-listing Statement prior to the
effects of the Shoprite Call Options.
(b) Rounded
In determining the H1FY18 Comparable Results trading range as detailed in the Trading
Statement, the H1FY18 statutory results were adjusted for the following:
1. STAR is party to a guarantee of third party debt which is underpinned by the Steinhoff
International Holdings N.V (“Steinhoff”) share price. Since the collapse of the Steinhoff
share price, the risk of liability in this regard (“Steinhoff Share Exposure”) can no longer
be considered remote. Exposure to the Company pertaining to the Steinhoff Share
Exposure, equating to R440 million (taxation of R Nil) and the provision for an
impairment of loans associated to the third party amounting to R60 million (taxation of
R Nil) have been recognised in the H1FY18 results. This will not have a continuing effect
on the financial results as STAR has been sufficiently provided for its exposure in this
regard.
2. The long-term cash retention scheme impact of R90 million (taxation of R25 million)
which was recognised in the H1FY18 results. This adjustment will have a continuing
effect on the financial results of STAR until 2020 by a similar amount subject to
performance.
STAR’s interim results for the six months ended 31 March 2018 will be published on SENS on 29
May 2018.
Parow
28 May 2018
Sponsor
PSG Capital
Date: 28/05/2018 05:05:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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