| Thu 16 Sep 2004, 8:46 | | REVIEWED RESULTS FOR THE YEAR ENDED 30 JUNE 2004 |
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REX TRUEFORM - REVIEWED RESULTS FOR THE YEAR ENDED 30 JUNE 2004
Rex Trueform Clothing Company Limited
(Incorporated in the Republic of South Africa Registration
Number 1937/009839/06)
Share codes: RTO - RTN - RTOP
ISIN Codes: ZAE000006144 - ZAE000009700 - ZAE000006151
REVIEWED RESULTS FOR THE YEAR ENDED 30 JUNE 2004
INCOME STATEMENT Consolidated (R000)
2004 2003
(Reviewed) (Audited)
Revenue 373,612 354,764
Net operating income before
depreciation 15,110 24,996
Depreciation 10,303 8,834
Net operating income 4,807 16,162
Net interest received 2,622 2,025
Net income 7,429 18,187
Income from associated
company 551 597
Income before taxation 7,980 18,784
Taxation 3,129 6,129
Income after taxation 4,851 12,655
Preference dividends 16 16
Net income attributable to
ordinary and N ordinary
shareholders 4,835 12,639
Earnings/ headline earnings
per share (cents) 24.0 62.9
Proposed dividend per share (cents)
-based on the years to which it relates 20.0 20.0
Dividend cover
-based on the years to which it relates 1.2 3.1
Weighted average number of equity
shares on which earnings per
share is based (000) 20,105 20,105
Number of equity shares in
issue (000) 20,105 20,105
BALANCE SHEET Consolidated (R000)
Assets
Non-current assets 42,809 36,661
Fixed assets 37,959 32,347
Investments (unlisted) 2,182 1,912
Deferred taxation 2,668 2,402
Current assets 163,481 179,849
Inventory 73,626 121,213
Debtors 27,833 34,630
Cash 62,022 24,006
Total assets 206,290 216,510
Equity and liabilities
Capital and reserves 173,678 173,146
Share capital 1,776 1,776
Share premium 22,758 22,758
Non distributable reserves (147) 135
Distributable reserves 149,291 148,477
Current liabilities 32,612 43,364
Accounts payable 30,584 35,234
Taxation 1,424 2,667
Amount owing to holding company 604 5,463
Total equity and liabilities 206,290 216,510
ABRIDGED CASH FLOW STATEMENT Consolidated (R000)
Cash generated by operations 15,375 25,586
Working capital changes 44,912 (7,450)
Interest received (net) 2,622 2,025
Taxation (4,675) (3,564)
Dividends paid (4,037) (2,529)
Net cash inflows from operations 54,197 14,068
Net cash outflows from investing
Activities including additions
to fixed assets (15,899) (10,899)
Net increase in cash 38,298 3,169
Cash at the beginning of the period 24,006 21,081
Effect of foreign exchange rate changes (282) (244)
Cash at the end of the period 62,022 24,006
OTHER INFORMATION Consolidated (R000)
Capital expenditure 17,067 13,520
Capital commitments
Contracted for 1,065 1,044
Authorised - not contracted for 8,476 4,449
Current ratio 5.0 4.1
STATEMENT OF CHANGES IN EQUITY Consolidated (R000)
2004 2003
(Reviewed) (Audited)
Share capital 1,776 1,776
Share premium 22,758 22,758
Non-distributable reserves
Opening balance 135 379
Foreign exchange rate changes (282) (244)
(147) 135
Distributable reserves
Opening balance 148,477 137,822
Adjustment AC132 - 529
148,477 138,351
Profit after taxation 4,851 12,655
Dividends (4,037) (2,529)
149,291 148,477
SEGMENTAL REPORTING Consolidated (R000)
Revenue
Manufacturing 244,613 267,679
Inter-segment sales (153,140) (166,616)
External sales 91,473 101,063
Retail 282,139 253,701
Total 373,612 354,764
Net operating income/(loss)
Manufacturing (9,874) (1,691)
Retail 13,412 22,735
Consolidation adjustment 1,269 (4,882)
Total 4,807 16,16
Depreciation included in net
operating income
Manufacturing 3,829 3,721
Retail 6,474 5,113
Total 10,303 8,834
Total segment assets (excl cash)
Manufacturing 105,823 138,829
Retail 65,623 78,601
Consolidation adjustment (32,028) (29,240)
Total 139,418 188,190
Total segment liabilities
Manufacturing (24,109) (34,396)
Retail (32,705) (27,713)
Consolidation adjustment 25,626 21,412
Total (31,188) (40,697)
Capital expenditure
Manufacturing 3,536 5,723
Retail 13,531 7,797
Total 17,067 13,520
Notes
1. Basis of preparation
This report complies with the South African Statement of
Generally Accepted Accounting Practice.
2. Accounting policies
This report has been prepared on the historical cost basis and in
accordance with the accounting policies which were applied in the
preparation of the group`s annual financial statements in the
prior year, except for the adoption during the current period of
AC132: Consolidated financial statements and accounting for
investments in subsidiaries, in so far as it requires a share
trust which meets the definition of a subsidiary to be
consolidated.
3. Comparative figures
To meet the requirements of AC132: Consolidated financial
statements and accounting for investments in subsidiaries,
comparative figures have been restated.
4. Dividend
In view of the strength of the balance sheet, the Board has
decided to recommend that the dividend on the ordinary and `N`
ordinary shares be maintained.
Accordingly, shareholders will be asked to consider, and if
deemed fit, approve the directors` recommendation that a dividend
of 20,0 cents per share be declared on the ordinary and `N`
ordinary shares at the annual general meeting of the company to
be held on 5 November 2004. An announcement detailing the terms
of the dividend declaration will be made immediately following
the annual general meeting.
The annual report containing a detailed review of the operations
of the company together with the audited financial statements
will be posted to shareholders by mid October 2004.
Comment
Notwithstanding an increase in Revenue of 5,3% it is
disappointing to report that net operating income fell by almost
70%.
The main reasons for this are threefold:
1. The highly competitive trading conditions in the clothing
and textile industry resulting in a larger than expected
loss in manufacturing.
2. Associated with the above, a high level of redundancy
payments at all levels.
3. The effect of the major initiative to reduce stock
levels and the adoption of a more conservative policy in
regard to stock valuations.
The Queenspark retail chain continues to show pleasing growth. If
the effects of the stock reduction programme are excluded,
revenue increased by 13% over the previous year with no erosion
in margins.
The benefits of the stock reduction initiative can be seen in
thebalance sheet where inventory has reduced by almost R50
million with a commensurate increase in cash of R38 million.
Prospects
Revenue in Queenspark for the first 9 weeks of the current year
is well ahead of the comparable period of the previous year. The
current spring/summer range is being favourably received and with
a pleasing improvement in margins.
Manufacturing however continues to be problematic with the
continued strength of the Rand and, although limited success has
been achieved in the local market, export opportunities are
limited and margins remain under pressure.
The drive to improve efficiencies continues across all sections
of the business.
Review by independent auditors
The financial information has been reviewed by KPMG Inc. whose
unqualified review opinion is available for inspection at the
company`s registered office. It is anticipated that the
unqualified audit opinion will be issued once the detailed
financial statements have been finalised.
Signed on behalf of the Board:
GM Thomas (Chairman) Cape Town
CEA Radowsky (Chief Executive Officer) September 15, 2004
Transfer Secretaries Registered office:
Computershare Investor Services Rex Buildings
2004 (Pty) Ltd 263 Victoria Road
70 Marshall Street Salt River,
Johannesburg 2001 Cape, 7925
Directors: GM Thomas (Chairman), CEA Radowsky (Chief Executive
Officer), G Bradley, V Hardy (British), CLR Hirschsohn,AA
Hodgkinson, ML Krawitz, PM Naylor, JC O`Brien, PE Shub.
Secretary: African & Overseas Enterprises Limited
Date: 16/09/2004 07:00:24 AM Produced by the JSE SENS Department
