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Glovil - Interim Results
Global Village Holdings Limited
(Incorporated In The Republic Of South Africa)
(Registration Number 1997/017632/06)
("GLOVIL" OR "THE COMPANY")
SHARE CODE: GLL
ISIN: ZAE000015426
COMMENTS
Operating results
The directors are pleased to announce the results for the first half of the year
ended 31 August 2005.
Accounting policies
These consolidated interim financial statements were drawn up in compliance with
South African Statements of Generally Accepted Accounting Practice and the
company has complied with the requirements of the Companies Act, 1973 (Act 64 of
1973), as amended. The accounting policies as set out in the 2005 Annual Report
has been consistently applied in producing these results.
The results are however not in line with the new International Financial
reporting standard - IFRS, but we will be IFRS compliant by the end of January
2006 at which time we will publish any changes to these statements as a result
thereof.
Chief Executive"s comments
Under the circumstances these half year results are more than a little pleasing
to the executive board of Global Village. As I stated in our year end annual
report the state of the market industry is one of an economic war with a vastly
superior enemy in terms of size and resources. Valuable as we are in economic
empowerment terms government has created a regulatory framework that has tilted
the playing field even further in the direction of the big retailers and the
large property funds that own shopping centres. The current retail boom has in
fact hurt our constituency that can"t offer the account benefits of an Edgars or
Truworths.
In spite of these difficulties only one market was closed, while we experienced
in fact great trading in most of our Durban markets. The Car Bin broke a record
as the country"s largest market with over 1000 traders. Our flagship Bruma has
drifted sideways and slightly down by maintaining stall numbers but declining
slightly with respect to attendances. As predicted in the annual report we
launched the International Fashion Sale in Durban making this a completely
national event. Durban"s Stable"s Market produced record stand numbers in August
and introduced mini Kids World"s and a Works store.
Financial results were flat in spite of a drop in turnover with net profit,
headline earnings and earnings per share all within a marginal variance of last
year. Net asset value produced a credible 13,5% growth while cash resources were
used to reduce debt, which is down to the lowest level in years. Cash ratios are
outstanding although we will need to build cash in the bank again. Our debtors
book has been a worry as we still fight to collect some long outstanding
payments.
Prospects
Focussing on Bruma we launched in early December an ongoing tourist marketing
program aimed at differentiating the market further and adding revenue. We are
also launching extensive kid marketing programs at all our Kids World"s. New
product ranges at our Works stores on two of our markets are providing us much
higher retail expectations for the Christmas season. The Hatfield Market in
Pretoria closed at the end of November and we are considering relocation options
for early next year. The area has declined and with the lease having ended we
failed to see eye to eye with Investec (owners of the Hatfield Centre) and will
therefore no longer be there. In recent times it has become obvious to us that
we need to have control over at least some of our on site food offerings and in
line with that have acquired the Cosmopolitan Food operation for a nominal
amount. It is already up and running at Bruma at the time of the writing of this
report.
Conclusion
Markets flourish in underdeveloped under regulated and in mature markets (with
any level of regulation). But they take strain in developing regulated markets
of which South Africa is a prime example. Our true test as an innovative company
is now as we are forced to reengineer our markets to be unique, original
platforms that aren"t in competition to formal retail property. AS we evolve new
fashion presentation offerings, and kids leisure retail platform offerings in
addition to our markets requirements we are straining our imaginations but not
our enthusiasm to deliver, even in the rough sea we currently find ourselves.
I say it in every report and find no reason to stop saying so or to doubt Global
Village is still the coolest company listed on the JSE securities exchange.
Marc Israelsohn
(Chief executive officer)
31/8/05 31/8/2004 Audited
Year ended
29/2/05
R"000 R"000 R"000
Balance Sheet
Assets
Non Current Assets 31833 33563 33027
Property plant & 17699 19528 21001
equipment
Intangible assets 11529 12655 12026
Loans receivable 0 0 0
Loan to share incentive 2605 1380 0
scheme
Current Assets 8476 9952 5659
Inventory 115 59 128
Accounts receivable 7557 5388 2376
Bank, call balances & 804 4505 3155
cash
Total Assets 40309 43515 38686
Equity & Liabilities
Capital Reserves 33557 29561 26989
Issued capital 38521 33760 32312
Accumulated loss -4964 -4199 -5323
Non current liabilities 2905 6840 6211
Deferred tax 2338 1007 2338
Long term liabilities 567 5833 3873
Current Liabilities 3847 7114 5486
Accounts payable 3876 6251 3822
Taxation -29 863 1664
Total Equities & 40309 43515 38686
Liabilities
Number of ordinary shares 78415 78415
issued
Net assete value per 42.79 37.7
share (cents)
ABRIDGED Unaudited
CONSOLIDATED Six months
INCOME STATEMENT ended
31 August 31 August % Audited
2005 2004 change Year ended
28
February
2005
TURNOVER 18,689 19,764 -5.4 36,747
Earnings before
interest
tax/depr/amort 3,616 3,511 -23.5 4,862
Depreciation -1,380 -1,317 4.8 -2,261
Amortisation -498 -496 0.0 -1,125
Net interest -23 -60 -61.7 101
(paid)/received
Net income before 1,715 1,638 4.7 1,577
taxation
Taxation normal -514 -790 -34.9 -750
prior year 0 0.0 0
adj
deferred 413 -100.0 0
Retained income 1,201 1,261 -4.8 827
for period
Earnings per share 1.53 1.61 1.55
(cents)
Headline earnings 2.17 2.24 2.78
per share (cents)
Number of shares 78,415 78,415 78,415
Headline earnings
are determined as
follow:
Shareholders 1,201 1,261 827
Amortisation of 498 496 1,125
intangible assets
Impairment loss 0 0 0
Write downs 0 0 0
Headline earnings 1,699 1,757 -3.3 1,952
Cashflow statement 2005/08/31 2004/08/31 2005/02/28
Cashflow from operating 1623 1204 3966
activities
Cash effects of investing -3974 -1550 -3502
activities
Cash effects of financing 0 1464 -696
activities
Net increase / (decrease) in cash
& cashflow
equivalents -2351 1118 -232
Cash & cash equivalents at
beginning
of period 3155 3387 3387
Cash & cash equivalents at the
end of
the year 804 4505 3155
Statement in changes of Share Share Distributable Total
equity Capital Premium
Reserves
Balance at 1 March 2004 532 31,780 -6,150 26,162
Net profit for the year 0 827 827
Reduction of share capital 0 0
Acquisition of Treasury 0 0
shares
Balance at 28 February 2005 532 31,780 -5,323 26,989
Profit for the period 1,201 1,201
0
Balance at 31/8/2005 532 31,780 -4,122 28,190
Date: 21/12/2005 05:01:04 PM Produced by the JSE SENS Department
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