| Fri 28 Apr 2006, 16:03 | | Tradehold Limited - Group results for the year to |
|
TDH
TDH
Tradehold Limited - Group results for the year to 28 February 2006
Tradehold Limited
(Registration number: 1970/009054/06)
JSE Share Code: TDH & Isin: ZAE000026902
Group results for the year to 28 February 2006
Audited Reviewed Group income statement Reviewed Audited
12 months 12 months 12 months 12 months
to to to to
28/02/05 28/02/06 28/02/06 28/02/05
Restated Restated
GBP"000 GBP"000 R"000 R"000
276 094 268 562 Revenue 3 083 323 3 175 209
14 411 7 021 Operating profit 73 539 157 864
1 441 875 Net interest received 10 109 16 402
Profit before exceptional
15 852 7 896 items 83 648 174 266
642 (6 145) Exceptional items (68 093) 6 812
16 494 1 751 Profit before taxation 15 555 181 078
3 562 (366) Taxation (4 884) 39 236
12 932 2 117 Profit after taxation 20 439 141 842
Attributable to:
3 999 (1 058) Minority interest (13 757) 42 953
Resulting from normal
4 190 1 946 activities 19 713 45 463
Resulting from exceptional
(191) (3 004) items (33 470) (2 510)
8 933 3 175 Ordinary shareholders 34 196 98 889
12 932 2 117 20 439 141 842
pence pence Earnings per share cents cents
2,3 1,8 - before exceptional items 19,8 25,8
2,6 0,9 - after exceptional items 10,7 28,5
1,2 0,8 - headline earnings 8,2 12,8
Number of shares for
calculation of earnings
347 330 347 330 per share (`000) 347 330 347 330
Reconciliation of previous
28/02/05 reported results to 28/02/05
GBP"000 restated figures R"000
Profit attributable to
ordinary shareholders as
previously reported under
9 200 SA GAAP 101 946
Restatements for IFRS
(58) Leases (657)
(225) Share-based payments (2 588)
16 Taxation 188
Restated profit
attributable to ordinary
8 933 shareholders 98 889
Audited Reviewed Group balance sheet Reviewed Audited
28/02/05 28/02/06 28/02/06 28/02/05
Restated Restated
GBP"000 GBP"000 R"000 R"000
69 480 69 835 Non-current assets 749 033 775 471
38 277 45 288 Property, plant and 485 752 427 215
equipment
15 620 20 885 Investment properties 224 007 174 335
- 1 088 Goodwill 11 670 -
13 681 1 156 Investments 12 395 152 693
1 902 1 418 Deferred taxation 15 209 21 228
74 695 95 945 Current assets 1 029 162 833 667
39 734 40 737 Inventories 436 941 443 471
9 449 12 291 Accounts receivable 131 895 105 459
25 512 42 917 Cash and cash equivalents 460 326 284 737
144 175 165 780 Total assets 1 778 195 1 609 138
Ordinary shareholders"
62 459 66 009 equity 708 048 697 093
12 12 Preference share capital 144 144
22 234 21 317 Minority interest 228 643 248 158
16 805 29 335 Non-current liabilities 314 647 187 561
4 300 17 264 Long-term loans 185 175 47 992
513 75 Deferred taxation 804 5 726
11 992 11 996 Provisions 128 668 133 843
42 665 49 107 Current liabilities 526 713 476 182
1 156 214 Short-term loans 2 292 12 906
41 509 48 893 Other current liabilities 524 421 463 276
Total equity and
144 175 165 780 liabilities 1 778 195 1 609 138
28/02/05 Reconciliation of previous reported 28/02/05
GBP"000 results to restated figures GBP"000
Ordinary shareholders" equity as
previously reported under SA GAAP
63 993 714 215
Restatements for IFRS
Leases - opening retained income
(1 523) adjustment (18 830)
(58) Leases - income statement impact (657)
- Leases - exchange rate adjustments 1 835
Share-based payments - raising
150 opening equity balance 1 848
Share-based payments - opening
(150) retained income adjustment (1 848)
Share-based payments - income
(225) statement impact (2 588)
Share-based payments - raising equity
225 balance 2 588
Taxation - opening retained income
31 adjustment 393
16 Taxation - income statement impact 188
- Taxation - exchange rate adjustments (51)
62 459 697 093
Audited Reviewed Group cash flow statement Reviewed Audited
12 months 12 months 12 months 12 months
to to to to
28/02/05 28/02/06 28/02/06 28/02/05
Restated Restated
GBP"000 GBP"000 R"000 R"000
8 924 11 127 Cash flow from operations 114 604 82 558
(21 980) (5 744) Investment activities (65 584) (254 642)
Net acquisition of fixed
(20 282) (17 010) assets (192 688) (234 760)
(1 698) 11 266 Other investment activities 127 104 (19 882)
(13 056) 5 383 Net cash flow 49 020 (172 084)
15 760 12 022 Financing activities 126 569 175 079
Proceeds from share issue by
10 993 - subsidiary - 122 693
4 767 12 022 Net debt raised 126 569 52 386
Increase in cash and cash
2 704 17 405 equivalents 175 589 2 995
Audited Reviewed Group statement of changes in Reviewed Audited
12 months 12 months equity 12 months 12 months
to to to to
28/02/05 28/02/06 28/02/06 28/02/05
Restated Restated
GBP"000 GBP"000 R"000 R"000
53 255 62 459 Balance at 1 March 697 093 657 855
Financial instrument
adjustment on 1 March 2005
resulting from the
application of hedge
- 64 accounting 718 -
46 (73) Exchange rate adjustments (28 197) (62 239)
225 282 Share-based payments 3 145 2 588
- 102 Creation of hedging reserve 1 093 -
8 933 3 175 Net profit for the year 34 196 98 889
62 459 66 009 708 048 697 093
Audited Reviewed Supplementary information Reviewed Audited
12 months 12 months 12 months 12 months
to to to to
28/02/05 28/02/06 28/02/06 28/02/05
GBP"000 GBP"000 R"000 R"000
5 190 6 682 1. Depreciation for the year 76 963 59 923
2. Capital expenditure for
26 484 22 004 the year 250 148 304 073
3. Calculation of headline
earnings
8 933 3 175 Net profit 34 196 98 889
Attributable exceptional
(1 557) 1 640 items 18 351 (17 677)
Surplus on revaluation of
investment properties after
taxation and minority
1 777) (2 187) interest (24 370) (20 027)
Loss/(profit) on sale and
scrapping of fixed assets
after taxation and minority
(1 457) 18 interest 207 (16 826)
4 142 2 646 28 384 44 359
Audited Reviewed Reviewed Audited
28/02/05 28/02/06 28/02/06 28/02/05
4. Number of shares in issue
347 330 347 330 ("000) 347 330 347 330
5. Net asset value per share 203,9 200,7
18,0 19,0 (pence/cents)
13 681 1 156 6. Investments - Loans 12 395 152 693
2 032 - 7. Capital commitments - 22 679
15 355 1 050 8. Contingent liabilities 11 262 171 377
9.Operating lease
337 979 374 429 commitments 4 016 084 3 772 184
Audited Reviewed Analysis of results Reviewed Audited
12 months 12 months 12 months 12 months
to to to to
28/02/05 28/02/06 28/02/06 28/02/05
GBP"000 GBP"000 R"000 R"000
Attributable earnings of
4 701 1 681 Instore plc 16 271 50 930
Other Tradehold Ltd group
3 399 4 635 companies 52 548 38 637
Profit before exceptional
8 100 6 316 items 68 819 89 567
Attributable exceptional
833 (3 141) items (34 623) 9 322
8 933 3 175 Net profit 34 196 98 889
Operating review
Tradehold Limited has declared a substantially reduced profit for the year to 28
February 2006 compared to the previous year. This was due to poor trading
results reported by Instore plc, previously Brown & Jackson plc, the listed
British retail business in which Tradehold owns a controlling interest of 55,2%.
Its results were further negatively impacted by a number of exceptional losses
including substantial provisions. By contrast, Tradehold"s property interests,
consisting of a much improved portfolio of commercial and retail buildings,
managed to increase its profit contribution substantially.
Instore plc
Instore had a disappointing year with total turnover down 2,7% to GBP268,6
million and 0,7% down on a like-for-like basis. Operating profit was 49% lower
at GBP3,5 million (2005: GBP6,9 million). Exceptional losses of GBP6,6 million
turned that profit into a net loss of GBP3,6 million (2005: net profit of GBP6,3
million). However, the balance sheet remains highly liquid, with cash resources
of GBP11,8 million.
In the first quarter of the year Instore completed its move to its new head
office and distribution centre in Huddersfield. Although the purpose-built
distribution facility serves as a strong platform supporting future growth, the
move from the company"s previous multiple premises was not without problems. The
deliberate slowdown of stock-building during the move negatively impacted on
sales and was largely responsible for the drop in turnover, while initial
inefficiencies in running the new facility resulted in operating costs exceeding
budget.
The company continued the roll-out of its new-generation ...instore outlets and
a further 41 Poundstretcher stores were converted to the upgraded format while
13 new ones were opened. By year-end 141 outlets were trading under the new
brand, generating about 50% of total turnover. However, in some instances the
performance of these converted stores has not lived up to expectations in terms
of the improvement over equivalent Poundstretcher outlets.
Instore chief executive Angus Monro stepped down at the end of the reporting
period and was succeeded by Trevor Coates, who has extensive experience of
retailing both in the UK and elsewhere. He is at present leading a comprehensive
review of all aspects of the business and is paying particular attention to
refining and improving Instore"s trading formats. As part of this process, the
team is undertaking a detailed commercial assessment of all stores. This
involves not only their trading performance but also their location,
demographics and ability to convert to the ...instore brand.
Moorgarth
Tradehold"s property interests are vested in several Moorgarth companies in
which it holds the controlling interest. These interests consist of a portfolio
of predominantly retail properties, some of which are occupied by outlets of
Instore. Although it remains an important function of the property business to
underpin Instore"s retail operations it is an independent profit centre that is
required to maximise its returns. It reported after-tax profit of GBP3,7 million
(2005: GBP2,7 million) while the gross value of the portfolio increased from
GBP15,6 million in 2005 to GBP26,9 million in 2006.
After the retail chain Your More Store, whose outlets initially occupied most of
the properties in the portfolio, discontinued trading in September 2004, a
number of the smaller buildings were sold and the remaining ones refurbished.
The present approach is to invest in higher-value properties and three
properties acquired recently added almost GBP12 million to the portfolio.
Exceptional items
Store closure costs (GBP2,9
million)
Relocation expenditure (GBP1,9
million)
Impairment of fixed assets (GBP0,9
million)
Impairment of investments (GBP0,2
million)
Bad debt write-off (GBP0,8
million)
Recovery of previous write-offs on disposal of
subsidiaries GBP0,6 million
(GBP6,1
million)
Dividend
The board does not propose to recommend a dividend in respect of the financial
year to 28 February 2006.
Outlook
Despite the disappointing performance of Instore and the challenges presented by
the tight trading conditions presently characterising British retailing, the
board remains confident of the long-term success of the group. We believe that,
despite recent setbacks, Instore will prove to be a formidable contender in the
UK discount market, while the group"s property interests are expected to
contribute increasingly to group profits.
International financial reporting standards
Tradehold is reporting its reviewed financial results in accordance with
International Financial Reporting Standards ("IFRS"). Results for the prior year
have been restated. The conversion to IFRS has had a limited effect on
Tradehold"s results. Headline earnings per share reported for the previous year
decreased by 0,1 pence to 1,2 pence, or 0,8 cent to 12,8 cents. The reasons for
this decline are outlined in the reconciliation of SA GAAP to IFRS.
The group"s auditors, PricewaterhouseCoopers Inc., reviewed the group"s results.
Their unqualified review report is available on request from the company
secretary.
Reporting currency
As the operations of Tradehold"s subsidiaries are conducted in pound sterling
and because of the distortion caused by the fluctuating value of the rand, the
company is reporting its results in the former currency. Rand equivalents are
provided to comply with regulatory requirements.
CH Wiese C Moore
Chairman Director
Luxembourg
27 April 2006
Date: 28/04/2006 04:03:27 PM Produced by the JSE SENS Department
