Truworths International Limited - Business update
Truworths International Limited
(Incorporated in the Republic of South Africa)
(Registration number 1944/017491/06)
JSE Code: TRU
NSX Code: TRW
ISIN: ZAE000028296
("Truworths" or "the group")
BUSINESS UPDATE
Truworths is pleased to announce that the group increased retail sales in the 17
weeks to 23 October 2005 to R 1.2 billion, 22% above the corresponding period in
2004.
The 22% increase in sales for the period was achieved with 9% more retail space.
Comparable store sales growth was 14% and product inflation averaged about 3%.
Two new Identity and two new Truworths stores have been opened and three stores
have been refurbished.
By the end of the 2006 financial year, at least a further twelve Identity and
ten Truworths stores will be opened in new shopping destinations and a further
eleven stores will be refurbished. The group is expecting to increase overall
trading space by about 8% by the end June 2006 and estimates to spend about R72
million on store development.
The group continued to account for bad debts in accordance with existing policy.
A doubtful debts provision has been calculated on a basis consistent with that
of the prior period. The quality of the debtors" book remains good. Arrears
and net bad debt, as a percentage of the book, is in line with expectations.
The strategy to buyback the group"s shares was continued during the period.
Repurchased shares are held as treasury shares and represent 9% of current
issued shares. For the period 1 July 2005 to 31 October 2005, 4.2million shares
have been repurchased for an amount of R83 million, resulting in a total number
of 43.8 million shares purchased at a total cost of R413 million.
The group is well placed to benefit from continued buoyant consumer spending
arising from stronger economic growth and to further extend its record of
consistent improvements in sales and earnings for both the festive season
trading period and the remainder of the 2006 financial year.
The interim results of the group for the 26-week period to 25 December 2005 are
scheduled for release on or about 23 February 2006.
3 November 2005
Cape Town
Lead Sponsor: Barnard Jacobs Mellet Corporate Finance (Pty) Ltd
Joint Sponsor: Standard Bank
Date: 03/11/2005 09:30:03 AM Produced by the JSE SENS Department
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