| Thu 21 Nov 2002, 10:29 | | Mr Price Group Limited - Group Results For The Six |
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Mr Price Group Limited - Group Results For The Six Months To 30 September 2002
Release Date: 21/11/2002 10:00:01 Code(s): MPC
MR PRICE GROUP LIMITED - GROUP RESULTS FOR THE SIX MONTHS TO 30 SEPTEMBER 2002
MR PRICE GROUP LIMITED
Registration number 1933/004418/06
Incorporated in the Republic of South Africa
ISIN: ZAE 000026951
JSE share code: MPC
Highlights
* Attributable profits up 54%
* Headline earnings per share up 50%
* Dividend per share increased by 50%
* Store expansion programme on track
GROUP RESULTS FOR THE SIX MONTHS TO 30 SEPTEMBER 2002
CONSOLIDATED INCOME STATEMENT
2002 2001 2002
26 weeks 26 weeks 52 weeks
September September % March
R`000 (Unaudited) (Unaudited) change (Audited)
Turnover 1 609 373 1 323 816 22 2 979 520
Other income 19 386 20 437 (5) 41 936
Total revenue 1 628 759 1 344 253 21 3 021 456
Costs and expenses 1 547 475 1 289 091 20 2 819 012
Operating profit 81 284 55 162 47 202 444
Finance costs 1 267 5 345 (76) 9 547
Profit before taxation 80 017 49 817 61 192 897
Taxation 25 240 14 275 77 54 243
Net profit for the 54 777 35 542 54 138 654
period
Preference dividends 8 8
Profit attributable to
ordinary shareholders 54 777 35 534 54 138 646
Weighted average number 235 809 235 455 - 235 525
of ordinary shares in
issue (`000)
Earnings per ordinary
share (cents)
(weighted)
- basic 23,2 15,1 54 58,9
- headline 23,6 15,7 50 59,5
- comparable 23,6 15,7 50 51,4
- diluted 22,9 14,8 55 58,3
Distribution per
ordinary
share (cents) 6,0 4,0 50 18,0
Distribution cover 3,9 3,9 - 3,3
(times)
CONSOLIDATED BALANCE SHEET
2002 2001 2002
September September March
R`000 (Unaudited) (Unaudited) (Audited)
Assets
Non-current assets 493 902 428 313 443 736
Property, plant and equipment 222 690 179 515 190 060
Intangibles 8 952 9 512 8 044
Long-term receivables 258 565 237 208 242 974
Deferred taxation assets 3 695 2 078 2 658
Current assets 1 104 141 892 609 1 036 126
Inventories 520 214 404 072 418 453
Accounts receivable 344 703 294 342 334 989
Bank balances and cash 239 224 194 195 282 684
Total assets 1 598 043 1 320 922 1 479 862
Equity and liabilities
Capital and reserves 695 513 579 142 673 010
Non-current liabilities 327 907 300 746 324 249
Long-term liabilities 75 428 96 659 86 488
Deferred taxation liabilities 252 479 204 087 237 761
Current liabilities 574 623 441 034 482 603
Trade and other payables
and provisions 559 113 434 009 471 970
Other current liabilities 15 510 7 025 10 633
Total equity and liabilities 1 598 043 1 320 922 1 479 862
CONSOLIDATED STATEMENT OF
CHANGES IN EQUITY
2002 2001 2002
September September March
R`000 (Unaudited) (Unaudited) (Audited)
Opening capital and reserves
(comparatives restated) 673 010 564 739 564 739
Increase in share capital
and share premium 729 356 535
Redemption of preference
share capital (300) (300)
Profit attributable to
ordinary shareholders 54 777 35 534 138 646
Ordinary distribution (33 003) (21 187) (30 610)
Closing capital and reserves 695 513 579 142 673 010
NOTES
1. The accounting policies applied are in compliance with South African
Statements of Generally Accepted Accounting Practice and are consistent with
those applied in the latest annual financial statements.
2. Subsequent to the interim results to 30 September 2001 being released, the
group adopted AC 116 (revised) "Employee Benefits" and applied this statement to
the 2002 annual financial statements. The interim September 2001 figures have
been restated where necessary to accord with the current accounting policies.
3. Comparatives have been restated in accordance with current year
classifications.
4. The process of resolving the taxation queries relating to the export
partnerships referred to in the previous annual financial statements is ongoing.
COMMENTS
RESULTS
Group turnover increased by 22% compared with growth of 19% for clothing,
footwear and textiles reported by the Retail Liaison Committee. Operating
profits increased by 47% to R81,3 million. Profits before taxation were up 61%
due to lower net financing costs. The taxation rate was higher, attributable
mainly to the impact of non-taxable items in the previous year, and attributable
income was up by 54%. Headline earnings of 23,6 cents per share were 50% higher.
The interim dividend has been increased by 50% to 6,0 cents.
TRADING
The cash division (Mr Price Weekend Material, Mr Price Home and Sheet Street)
increased revenue by 27% to R1,16 billion and operating profits for the division
were up 48%. The Southern African operations improved their profitability and
the trading loss in Chile declined compared to the previous year. The store
expansion programme is proceeding well and the results of the stores undergoing
this change have been ahead of expectation. With the opening of 36 new stores,
the number of stores in the cash division increased to 499.
The credit division (Milady`s, The Hub and Galaxy) increased revenue by 9% to
R454,4 million and operating profits were up 25%, largely as a result of the
continued good performance of Milady`s. Galaxy showed an improvement on the
previous year, while The Hub was slightly below last year`s profit level. The
debtors` book continued to be well controlled and the percentage of bad debts to
credit sales has improved on the previous year. The division opened three new
stores and operated 264 stores at the period end.
FINANCE
Cash sales rose to 83% of total sales compared with 80% at the interim period
last year. Inventories rose by 29% relative to a sales increase of 22%,
primarily due to the launch of new departments and category extensions within
the cash division.
The group ended the period with bank and cash balances of R239,2 million.
PROSPECTS
Tighter trading conditions are anticipated in the second half but we continue to
expect that an increase in earnings for the year will be achieved.
On behalf of the board
S B COHEN - Joint chairman
L J CHIAPPINI - Joint chairman Durban
A E McARTHUR - Chief executive officer 15 November 2002
DECLARATION OF INTERIM DIVIDEND
Notice is hereby given that the directors have declared an interim dividend of
6,0 cents per share to the holders of ordinary and the unlisted B ordinary
shares.
The following dates are applicable:
Last date to trade "cum" the dividend Friday, 6 December 2002
Date trading commences "ex" the dividend Monday, 9 December 2002
Record date Friday, 13 December 2002
Date of payment Tuesday, 17 December 2002
Shareholders may not dematerialise or rematerialise their shares between Monday
9 December and Friday 13 December 2002, both dates inclusive.
On behalf of the board Durban
C S YUILL - Secretary 15 November 2002
TRANSFER SECRETARIES
Computershare Investor Services Limited, 70 Marshall Street, Johannesburg, 2001.
P O Box 1053, Johannesburg, 2000. Telephone: (011) 370 5000
CONSOLIDATED CASH FLOW STATEMENT
Date: 21/11/2002 10:00:00 AM Produced by the JSE SENS Department
