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THE HOUSE OF BUSBY LIMITED - REVIEWED RESULTS FOR THE YEAR ENDED 30 JUNE 2003
THE HOUSE OF BUSBY LIMITED
Incorporated in the Republic of South Africa
Registration number 1997/009173/06
Share code: BSB
ISIN: ZAE000013637
REVIEWED RESULTS FOR THE YEAR ENDED 30 JUNE 2003
SUMMARISED CONSOLIDATED
INCOME STATEMENT
Reviewed Audited
Year ended Year ended
30 June 30 June Change
2003 2002 %
R"000 R"000
Revenue 413 988 332 417 25
Continuing operations 411 069 317 403 30
Discontinued operations 2 919 15 014
Operating income
before (loss)/profit
on foreign exchange 43 642 27 964 56
(Loss)/profit on foreign
exchange (8 381) 4 029
Operating income before
depreciation and amortisation
of intangibles 35 261 31 993 10
Continuing operations 35 418 30 970
Discontinued operations (157) 1 023
Depreciation 4 501 4 713
Amortisation of intangibles 2 603 1 055
Operating income before net
finance charges 28 157 26 225 7
Net finance cost 6 327 2 435
Preference dividend paid - 1 603
Net income before
exceptional items 21 830 22 187
Exceptional items 7 614 17 353
Net income before taxation 14 216 4 834
Taxation 3 556 4 085
Net income after taxation 10 660 749
Attributable to minorities 9 1 561
Net income attributable to
ordinary shareholders 10 651 2 310
Weighted average number of
shares in issue ("000) 64 739 74 498
Headline earnings
per share (cents) 29,6 26,4 12
Earnings per share (cents) 16,5 3,1 431
RECONCILIATION OF HEADLINE EARNINGS
Reviewed Audited
Year ended Year ended
30 June 30 June
2003 2002
R"000 R"000
Net income attributable to ordinary
shareholders 10 651 2 310
Add Loss on discontinued
operations 6 941 10 491
Cost of control on acquisition of
minority shareholders" interest - 7 716
Amortisation of goodwill 1 595 269
Deduct Profit on disposal of investment - 1 123
Headline earnings 19 187 19 663
SUMMARISED CONSOLIDATED BALANCE SHEET
Reviewed Audited
30 June 30 June
2003 2002
R"000 R"000
ASSETS
Non-current assets 83 921 68 618
Property, plant and equipment 36 971 35 754
Intangible assets 17 035 13 461
Non-current receivables 4 466 3 892
Minority interest 12 131 757
Deferred taxation 13 318 14 754
Current assets 184 437 180 498
Inventories 117 753 101 371
Trade and other receivables 55 177 58 143
Bank balances and cash 11 507 20 984
Total assets 268 358 249 116
EQUITY AND LIABILITIES
Shareholders" funds 192 215 195 683
Overdraft and interest-bearing debt 24 000 21 000
Current liabilities 52 143 32 433
Total equity and liabilities 268 358 249 116
Number of shares in issue ("000) 60 876 70 037
Net asset value per share (cents) 316 279
Tangible net asset value per share (cents) 288 260
STATEMENT OF CHANGES IN EQUITY
Non-
distri- Accu-
Share Share butable mulated
Capital premium reserves profits Total
R"000 R"000 R"000 R"000 R"000
Balances at 30 June 2001 76 126 121 14 221 62 012 202 430
Shares repurchased (6) (5 654) (5 660)
Dividends paid (3 119) (3 119)
Currency translation
differences (278) (278)
Net income attributable
to ordinary shareholders 2 310 2 310
Balances at 30 June 2002 70 120 467 13 943 61 203 195 683
Shares repurchased (9) (11 035) (11 044)
Dividends paid (3 119) (3 119)
Currency translation
differences 44 44
Net income attributable to
ordinary shareholders 10 651 10 651
Balances at 30 June 2003 61 109 432 13 987 68 735 192 215
SUMMARISED CONSOLIDATED
CASH FLOW STATEMENT
Reviewed Audited
Year ended Year ended
30 June 30 June
2003 2002
R"000 R"000
Cash generated from operations 36 699 18 232
Net finance cost (6 327) (2 435)
Dividends paid (3 119) (3 119)
Taxation paid (4 510) (1 837)
Cash flows from operating activities 22 743 10 841
Cash flows from investing activities (8 819) (14 108)
Cash flows from financing activities (26 401) (5 694)
Decrease in cash and cash equivalents (12 477) (8 961)
Cash and cash equivalents
at beginning of year (16) 8 945
Cash and cash equivalents at end of year (12 493) (16)
SEGMENTAL ANALYSIS
Revenue Revenue EBITDA EBITDA
% % % %
2003 2002 2003 2002
Distribution 63 60 64 66
Retail 37 40 36 34
100 100 100 100
COMMENTS
Earnings
During the financial year under review, revenue from continuing operations
increased by 30%. The sale of Cricket World Cup merchandise accounted for 10% of
this increase, while organic growth in the group"s core operations accounted for
the remaining 20%. Operating income before foreign exchange losses grew by 56%
to R43,64 million, while operating income before depreciation and amortisation
of intangibles improved by 10% after accounting for a loss on foreign exchange
of R8,38 million.
Operating income before net finance charges grew by 7% to R28,16 million,
with headline earnings per share increasing by 12% from 26,4 cents per share
last year to 29,6 cents per share in the current financial year.
Review of operations
The retail arm of the group saw trading conditions softening in the second
half of the financial year after a particularly strong first six months. Despite
this slow-down, earnings for the full year were in line with budget, delivering
a pleasing increase in earnings over the previous financial year. During the
second half of the year, the board of directors decided to discontinue the
retailing of FENDI merchandise. While this decision has led to a loss on
discontinuance in the current financial year, future earnings will benefit from
this course of action.
The distribution arm of the group remains a market leader in the distribution
of leather goods, handbags, accessories, eyewear, apparel and related products.
Since this division imports most of its merchandise, forward exchange contracts
are an integral part of the business model. The strong recovery in the Rand,
particularly in the second half of the financial year, led to significant losses
on foreign exchange, as the forward exchange contracts that were taken out at
higher forward rates matured. The competitive environment in which the
distribution arm operates meant that it was not always possible to maintain
margins at the higher forward rates.
Despite the premature exit of the South African cricket team from the Cricket
World Cup earlier this year, the World Cup campaign contributed positively to
group earnings. Being a once-off event, the earnings generated from this
campaign will not be repeated in the forthcoming financial year.
During the financial year under review, the company bought back a further 9,27
million shares for a total consideration of R11,04 million. These shares have
been cancelled.
Prospects
The slow-down experienced by the retail division of the group in the second
half of the 2003 financial year has continued in to the new financial year. As a
result , retail trading to date has been below the levels achieved in the
corresponding period last year. The retail arm should however benefit from the
recently announced drop in interest rates, as well as the build up to the
festive season. The distribution division continues to hold its own in a highly
competitive market and will benefit from the current stability in the Rand. The
group as a whole is expected to benefit from the business relationships built up
during the Cricket World Cup campaign.
Commitments
The group has operating lease comittments of R29,4 million (2002: R25,2
million) in the next twelve months, and R40,6 million (2002: R50,1 million)
thereafter.
Dividends
Notice is hereby given that a final dividend of 4,0 cents per share has been
declared.
Shareholders are advised that the last date to
trade "CUM" dividend will be Friday, 24 October 2003.
The shares will trade "EX" dividend as from Monday, 27 October 2003 .
The record date will be Friday, 31 October 2003
and the dividend will be payable on Monday, 3 November 2003.
Share certificates may not be dematerialised or rematerialised between Monday,
27 October 2003 and Friday, 31 October 2003 , both days inclusive.
Accounting policies
The same accounting policies and methods of computation have been used in
preparation of these preliminary financial statements as were used in the annual
financial statements to 30 June 2002. The accounting policies comply with South
African Statements of Generally Accepted Accounting Practice.
Independent review
The preliminary results for the year ended 30 June 2003 have been reviewed by
Fisher Hoffman PKF Jhb Inc., their unqualified review opinion is available for
inspection at the company"s registered office.
On behalf of the board of directors
K L Brouze Johannesburg
Chief executive officer 11 September 2003
THE HOUSE OF BUSBY LIMITED
Incorporated in the Republic of South Africa
Registration number 1997/009173/06
Share code: BSB
ISIN: ZAE000013637
SPONSOR:
Investec Securities Limited
100 Grayston Drive
Sandown,Sandton, 2196
PO Box 785700
Sandton, 2146
TRANSFER SECRETARIES:
Computershare Limited
70 Marshall Street
Johannesburg 2001
PO Box 61051
Marshalltown 2107
REGISTERED ADDRESS:
11 Height Street
Doornfontein 2094
PO Box 16647
Doornfontein 2028
Directors: A Rogoff* (Chairman*), K L Brouze,
M G Duarte, M G Gordon, S N Melnick, S M Moss, S Stein*,
D S Brouze* *Non-executive
Date: 11/09/2003 02:47:48 PM Supplied by www.sharenet.co.za
Produced by the JSE SENS Department
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