Eng Interim COMMENT

Akesh

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15892_price_inter_fin_eng 11/14/05 6:32 AM Page 1Registration number 1933/004418/06 • Incorporated in the Republic of South Africa • ISIN: ZAE 000026951 • JSE share code: MPCU N A U D I T E D G R O U P R E S U L T S F O R T H E S I X M O N T H S T O 3 0 S E P T E M B E R 2 0 0 5C O M M E N T A R YRESULTS Miladys, with a small reduction in average retail selling price, continued to benefit from its focused DECLARATION OF CASH DISTRIBUTION IN LIEU OF INTERIM DIVIDENDmerchandise offer and the increased value presented to its customers. Total revenue, achieved withNotice is hereby given that the directors have declared a cash distribution of 24,3 cents per share, inThe retail sec tor has continued to benefit from the b uoyant economic conditions and sustained 6% greater average space, was 21% higher at R360,7 million and comparable sales growth of 17% waslieu of an interim dividend, for the six months ended 30 September 2005. The payment will be madeHIGHLIGHTS strength in consumer spending. The Mr Price group performed well in these co nditions, recording recorded.by way of a reduction in the share premium account and is in terms of the general authority to makegood growth in revenue and operating profits.Sheet Street, which is targeted at a different customer to Mr Price Home, increased revenue by 31% payments to shareholders, granted at the annual general meeting held on 28 July 2005.As reported previously, the group has, during the period under review, ...

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• Publié par: Urku
• Nombre de lectures: 21
• Langue: English

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C O M M E N T A R Y

RESULTS Miladys, with a small reduction in average retail selling price, continued to benefit from its focusedDECLARATION OF CASH DISTRIBUTION IN LIEU OF INTERIM DIVIDEND The retail sec tor ha s continued to benefit from the b uoyant economic conditions and sustained  merchandise offer and the increased value presented to its customers. Total revenue, achieved with  Notice is hereby given that the directors have declared a cash distribution of 24,3 cents per share, in 6% greater average space, was 21% higher at R360,7 million and comparable sales growth of 17% was strength in consumer spending. The Mr Price group performed well in these co nditions, recording  recorded.  lieu of an interim dividend, for the six months ended 30 September 2005. The payment will be made good growth in revenue and operating profits. Sheet Street iryttuohlaa nerehe gof trms n te sredloherahs ot tsenympa kemao  t egenar la nnau ld at the, grante5002.J 82 yluldhen  oetmeg in icwhish , ta dd a rat etegr   e r d e   d s u e c e t a i c o r n i   n i , n     m t e h % b 13     y   a y w b    e y u f n o e a v   t c o o m a e c   t c   u u s nd r   en a t n  i i f i f s e  h e s o   H e r   P e c r i a M m   e   r r p     r m o u t i As reported previously, the group has, during the period under review, disposed of its Hub and Galaxy  to R191 million with comparable sales growth of 16%. The new store opening programme resulted  The following dates are applicable: chains. Focus now centres on the continuing operations represented by Mr Price, Mr Price Home,  in the chain growing average space by 8%. Retail price inflation of 57% resulted from the strategic Sheet Street and Miladys, all of which recorded s trong improvements in pr ofitability during the  reduction in lower-priced hard goods merchandise.  Last date to trade 'cum' the distribution Friday 2 December 2005 period. The combined revenue from these operations grew by 24% to R2,18 billion. Operating margin DISCONTINUED OPERATIONS  5 MondayDate trading commences 'ex' the distribution December 2005 i he improved from 6,2% to 7,7% and profit from operating activitie t s i   o w n a s s    5 r 4% hgr at R167,3 million. Although the sales of the Hub and Galaxy chains were negotiated with effect from the beginning of Rida Headline earnings per share attributable to the continuing operagew by 55% to 45,2 cents. the financial year, final agreements were only concluded later in the period. Trading results of these D e a c t o e  r o d f     d p a a t y e ment F M r on y day1 9 2     D D e e c c e e m m b b e e r r     2 2 0 0 0 0 5 5 After taking into account the results of the discontinued operations, group headline earnings were operations up to 30 July 2005 have, consequently, been reported under discontinued operations with

54% higher at 48,5 cents. In accordance with the group's policy to align cover of the interim and final  the profit on discontinuance being adjusted accordingly.  Shareholders may not dematerialise or rematerialise their shares betw een 5 December 2005 and 9 December 2005, both dates inclusive. distribution, the cover ha s been reduced from 2,4 times to 2,0 times and this ha s given rise to an FINANCE In terms of the requirements of the Companies Act No. 61 of 1973, the directors confirm that, fter increase of 84% in the interim distribution.  a The balance sheet remains strong with cash resources of R525,4 million. In te rms of the sale the cash distribution, Mr Price Group Limited will be able to pay its debts as they become due in the TRADING agreements of the Hub and Galaxy chains, proceeds of approximately R182 million, currently reflect-  ordinary course of business, and that its consolidated assets, fairl y valued, will exceed its consolidated The continuingbus i nesses op er ated with weighted average trading sp ace (average sp ace) which was 10%  ed on the balance she et within trade and ot her re c eivables, are still to be re c eived in this  liabilities. higher than in the previo us interim period. Comparable sa les, which incl ude turn over in expanded and  financial year.  On behalf of the board Durban refurbished stores in like for like trad i ng locat ion s, were 18% hig her.  The test offer of credit in Mr Price, Mr Price Home and Sheet Street has been extended to the entire KwaZulu-Natal and Border regions. The early results have been very positive but will continue to be  C S Yuill – Secretary 17 November 2005 Following on the disposal of the Hub and Galaxy chains and the planned introduction of credit in the  er cash businesses, trading results are now reported in two main divisions: Apparel (incorporating the Mr d m e o b n t i o t r o s r   e b d o  f o o k r     r a e  f m ur a t i h ns ti p gh e t r l i y o   d c   o b n e t f r o o r l e l   e t d h   e w   i d t e h c   is b i a o d n    i d s e  t b a t k s e   n b   e t l o o  r w o   l b l- u o d u g t  e t t o e   d f   u l r e t v h e e l r s   .  s S t t o o re c s k .     t T u h r e n     o o v f e  t ra h l e l TRANSFER SECRETARIES Price and Miladys chains) and Home (incorporating the Mr Price H ome and Sheet Street chains). The  continuing operations has improved and inventories of these divisions ended 11% higher than at the  Computershare Investor Services 2004 (Pty) Ltd., Apparel division grew revenue by 22% and operating profits by 43% while the Home division report- comparable period end.  70 Marshall Street, Johannesburg, 2001. ed an increase of 28% in revenue and 96% in operating profits. The directors have resolved that, in lieu of an interim dividend, the group will make a distribution by P T   e O le   p B h o o x  n 6 e 1 :  0 (0 5 1 1, 1   ) M 3 a 7 rs 0  h 5 al 0 lt 0 o 0 wn, 2107. Mr Price e adr fon io mis vor s ia tnp dn the t ion in t r iubhtsid sion ict u drea f o yawo u c c um aremierp hs ati so  f lced.noia p omc ngi y n  sahcw a htiw dedart dnhi wcepa sgerave expansion and rvema ptsaretyga conitn deuhtiwsti  SNROSPO   8% greater than in the compara ble period. The chain benefited from the introduc tion of new  ac arat merchandise categories and, with a strong performance across all its departments, grew revenue by PROSPECTS Rand Merchant Bank (A division of FirstRand Bank Limited) Corporate Finance, 22% to R1,16 billion. Retail selling price inflation was 7% and comparable sales growth was 20%. The positive trading performance recorded in the first half has continued into the second half of the P 1     O M   e B r o c x h   a 7 n 8 t 6  P 2 l 7 a 3 c , e   , S   a C n n d r  t F o r n e ,  d 2 m 1 a 4 n 6  Drive and Rivonia Road, Sandton, 2196.  Mr Price Home  year. Although operating off a higher base in the second half, the group is well positioned to financial  . increase of 20% in average space, recorded growth in comparable sales of, with an 16% and in total revenue which was 26% higher at R472,7 million. The introduction of furniture has  report a further growth in earnings at the end of the financial year. SROTDCERI been well received by customers. Two ultra stores with trading areas in exce ss of 2 000 square metres,  On behalf of the board  L J Ch iappini* (Joint chairman), S B Cohen* (Jointchairman), A E McA rthur † (Chief execut ive officer), accommodating a more comprehensive presentation of the new furniture ranges, opened in August  f. L J Ri ng* (USA), W J Swain*, S van Ni ekerk † , i A n n  K ot w h a e Z r  u u l l u t - r N a  a s t t a o l  r f e o  i ll s  o d w u e e d     t b o y     o o p n e e n  i  i n  n  G G a a u u te te n n g  g i   n a  l t  a t te h   e S   e e p n t d e   m of b   e N r. o   v E e ar m ly b  r e e r. s   u T lt h s e     h i a n v tr e  o b d e u e c n t   i v o e n r   y  o p f  o h s i it g i h v e e. r L S     J B     C C h o ia h p e p n i   n – i     J – o   i J n o t i   n c t h  c ai h r ai m r a m n anDurban S C     A S     E Y ll u i i  s l l  † † o  W P Nf rod o t  , la( e   G *   e K f  , ) * e z t t a H n   r C e  u l    t       zer*, M R oJ h ntsno,*P or , priced merchandise ranges, particularly in furniture, contributed to price inflation of 17%.  A E McArthur – Chief executive officer 17 November 2005  *Non-executive director † Executive director