Edgars Consolidated Stores Limited - Press Release
EDGARS CONSOLIDATED STORES LIMITED
("Edcon")
JSE code: ECO
ISIN code: ZAE000018388
PRESS RELEASE
Edcon announced today at its 56th Annual General Meeting that, given trading
conditions for the first three months of the 2003 financial year, it was now
more positive about the company`s performance when compared to previously
published prospects. The company stated in May that it expected "a modest
increase in sales in nominal terms, but a meaningful rise in earnings per share
for the year to March 2003."
Commenting on the group`s improved position, Edcon CEO Stephen Ross said "The
clothing footwear and textile (CFT) market has remained buoyant for the past
three months and group sales have exceeded expectations. Particularly pleasing
has been the good profit conversion (profit to sales ratio), confirming the
effectiveness of the turnaround initiatives of the past three years and the
substantial benefits that Edcon has gained from streamlining and improving all
dimensions of the business."
Ross went on to say that "if the higher interest rate environment and effects of
inflation do not dampen the CFT market in the months ahead, the group`s
prospects for the half year to September and for the full year to March should
be better than previously anticipated."
Commenting on the progress of the group`s securitisation program, Mark Bower,
Chief Executive - Group Services, advised that the process was progressing
according to plan and that a "Dutch Auction" of the notes will be held on 24
July 2002 with the full proceeds of the issue of R1,93 billion being received by
the securitisation vehicle on 29 July. Further details, including the pricing of
the notes will be provided after the auction.
The Board is also pleased to advise that shareholders today approved a special
resolution to authorise Edcon to buy back a further 10% of its issued share
capital. Purchases in terms of this authority will be financed from excess cash
resources post the securitisation.
On behalf of Edcon
SM ROSS - Chief Executive 495-7022
M R BOWER - Chief Executive Group Services 495-6411
Date: 17/07/2002 10:09:59 AM Produced by the JSE SENS Department
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