Lewis - Results of AGM and Statement by Chief Exec
LEW
LEW
Lewis - Results of AGM and Statement by Chief Executive Officer
LEWIS GROUP LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 2004/009817/06)
JSE share code; LEW
ISIN : ZAE000058236
("Lewis" or "the company")
Approval of Resolutions
At the annual general meeting of the Lewis Group shareholders held on Friday 4
August 2006, the special resolution and all the ordinary resolutions contained
in the notice of the meeting dated 9 June 2006 were passed with the requisite
majorities.
Statement by Chief Executive Officer
The following statement was made by the Chief Executive Officer, Alan Smart, at
the Annual General Meeting:
"Consumer spending in the middle income group which is Lewis" target market,
remains strong.
The first quarter reflected a retail sales increase of 17% compared to last year
with like for like sales increasing 13%.
The month of July which in terms of the group"s trading cycle ends on 5th
August, is anticipated to reflect a sales increase of 16% compared to last year.
Cash flows remain strong.
The debtors book has increased by R314 million over the past year as a result of
buoyant trading. The overall condition as measured by the impairment provision
(doubtful debt provision) reflects a provision of 13% at the end of June
compared to 14.5% last year.
The company has repurchased 6.5% of its shares in terms of the general authority
granted by shareholders at the last AGM.
The new store opening programme has progressed well and we expect to attain our
target of 25 new stores for the current financial year.
In looking forward naturally the recent increase in interest rates will be a
factor, but the Lewis model has over many years proved to be resilient in a
changing interest rate environment.
Our regular customer contact via the Re-serve programme together with strong in
store customer promotions and merchandise initiatives will assist us in
maximising all sales opportunities.
We are therefore confident that we will continue to trade well in the current
year."
The above information has not been reviewed or reported on by the company"s
auditors.
Cape Town
4 August 2006
Sponsor: UBS South Africa (Pty) Ltd
Date: 04/08/2006 11:02:39 AM Produced by the JSE SENS Department
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