Total sale of merchandise for the first four months of trading was 2,8% down on the corresponding period of the previous year.
The cash division (incorporating Incredible Connection and Hi-Fi Corporation)showed a 7% overall increase in merchandise sales. Incredible Connection showed good top line growth with December sales up a very pleasing 18%. Hi-Fi Corporation grew sales for the period by 3% with a growth in sales of 10% over December. Product margin at Hi-Fi Corporation remained under pressure, driven by the very competitive environment in which it trades.
ABRA, the Group's Polish operation, reflected a 7% decrease in sale of merchandise in Zloty terms. However, the Rand equivalent has been adversely affected by a 24% decline in the average exchange rate for the period, resulting in a 29% decrease in ABRA's sales for the four months in rand terms.
The credit chains experienced a mixed performance in top line sales. While cash sales in this division increased year on year by 9%, credit sales were down by 11% resulting in an overall decline of 5%.
Total debtors costs decreased by 23% over the corresponding period. The decline in debtors costs for the month of December was 28%. The improved collection rates together with the reduced bad debts are ahead of expectation, given that the strategy of separating retail from financial services has only been in place for one year.
The information provided above has not been reviewed or reported on by the Group's auditors.
Friday, January 29, 2010
BHP Billiton Approves Funding For Further Growth At Western Australia Iron Ore
Billiton today announced approval for US$1.93 billion (BHP Billiton share US$1.73 billion)of capital expenditure to underpin the further accelerated growth of its Western Australia Iron Ore business.
This investment represents early expenditure for the company's Rapid Growth Project 6 (RGP6). RGP6 is expected to increase installed capacity at the company's Western Australia Iron Ore assets to 240 million tonnes per annum (mtpa) during calendar year 2013.
The funding will allow early procurement of long lead time items and detailed engineering to continue the expansion of the inner harbour at Port Hedland, progress rail track duplication works and expand the Jimblebar mining operation.
BHP Billiton President, Iron Ore, Ian Ashby said "This investment is the continuation of our long-term strategy of adding capacity in our high quality iron ore business to support our confidence in the longer term demand for iron ore globally. By the time RGP6 is completed, we will have more than tripled installed capacity at our Western Australia Iron Ore operations since we first invested in our accelerated growth program in 2002. The approval for the balance of the RGP6 capital will be considered during the second half of the 2010 calendar year".
On 5 June 2009, BHP Billiton and Rio Tinto signed an agreement of core principles to establish a production joint venture covering the entirety of both companies' Western Australian iron ore assets.
BHP Billiton and Rio Tinto concluded binding agreements on 5 December 2009 on the proposed JV that cover all aspects of how the joint venture will operate and be governed. Under the binding agreements, Rio Tinto will have the option to participate in RGP6 by paying its share of invested capital; with this decision being made after the Joint Venture transaction is completed, estimated to occur in the second half of the 2010 calendar year.
This investment represents early expenditure for the company's Rapid Growth Project 6 (RGP6). RGP6 is expected to increase installed capacity at the company's Western Australia Iron Ore assets to 240 million tonnes per annum (mtpa) during calendar year 2013.
The funding will allow early procurement of long lead time items and detailed engineering to continue the expansion of the inner harbour at Port Hedland, progress rail track duplication works and expand the Jimblebar mining operation.
BHP Billiton President, Iron Ore, Ian Ashby said "This investment is the continuation of our long-term strategy of adding capacity in our high quality iron ore business to support our confidence in the longer term demand for iron ore globally. By the time RGP6 is completed, we will have more than tripled installed capacity at our Western Australia Iron Ore operations since we first invested in our accelerated growth program in 2002. The approval for the balance of the RGP6 capital will be considered during the second half of the 2010 calendar year".
On 5 June 2009, BHP Billiton and Rio Tinto signed an agreement of core principles to establish a production joint venture covering the entirety of both companies' Western Australian iron ore assets.
BHP Billiton and Rio Tinto concluded binding agreements on 5 December 2009 on the proposed JV that cover all aspects of how the joint venture will operate and be governed. Under the binding agreements, Rio Tinto will have the option to participate in RGP6 by paying its share of invested capital; with this decision being made after the Joint Venture transaction is completed, estimated to occur in the second half of the 2010 calendar year.
Wednesday, January 27, 2010
Pan African Resources Plc - Trading update
The earnings per share for the six months ended 31 December 2009, denominated in GBP, is expected to be between 45 per cent and 50 per cent higher than those for the previous corresponding period (six months ended 31 December 2008: 0.23 pence per share).
Earnings per share, calculated in South African Rand, using the average ZAR:GBP exchange rate of R12.48 prevailing during the period (six months ended 31 December 2008 average exchange rate of R15.13), is expected to be between 17 per cent and 22 per cent higher than those for the previous corresponding period (six months ended 31 December 2008: 3.53 cents per share).
Headline earnings per share for the six months ended 31 December 2009, denominated in GBP, is expected to be between 1 per cent and 6 per cent higher than those for the previous corresponding period (six months ended 31 December 2008: 0.36 pence per share).
Headline earnings calculated in ZAR is expected to be between 13 per cent and 18 per cent lower than those for the six months ended 31 December 2008 (six months ended 31 December 2008: 5.37 cents per share).
It is anticipated that the interim results for the six months ended 31 December 2009 will be released on Wednesday, 10 February 2010.
Earnings per share, calculated in South African Rand, using the average ZAR:GBP exchange rate of R12.48 prevailing during the period (six months ended 31 December 2008 average exchange rate of R15.13), is expected to be between 17 per cent and 22 per cent higher than those for the previous corresponding period (six months ended 31 December 2008: 3.53 cents per share).
Headline earnings per share for the six months ended 31 December 2009, denominated in GBP, is expected to be between 1 per cent and 6 per cent higher than those for the previous corresponding period (six months ended 31 December 2008: 0.36 pence per share).
Headline earnings calculated in ZAR is expected to be between 13 per cent and 18 per cent lower than those for the six months ended 31 December 2008 (six months ended 31 December 2008: 5.37 cents per share).
It is anticipated that the interim results for the six months ended 31 December 2009 will be released on Wednesday, 10 February 2010.
Thursday, January 14, 2010
Datatec Limited - Interim Management Statement
Datatec, the international Information and Communications Technology group, is today publishing an Interim Management Statement covering the period from 1 September 2009
to 31 December 2009.
Based on trading and profitability during the Period, as anticipated the second half of the current financial year is expected to be sequentially and comparatively better than the first half of the current financial year and the second half of the prior financial year.
The Group has now returned to revenue growth in all its divisions during the second half with the early signs of improvement seen at the end of the second quarter continuing into the second half of the current financial year. Overall gross margins have remained stable.
On 14 May 2009 the Group published a forecast for the financial year ending 28 February 2010 of revenues of between $3.7 billion and $4 billion, profit after tax of approximately $44 million, underlying earnings per share of approximately 29 US cents and earnings* and headline* earnings per share of approximately 23 US cents. Based on current exchange rates and trading conditions, all of these forecasts remain unchanged.
Jens Montanana, Chief Executive Officer said: "We are very pleased to see that all parts of the Group around the world are now showing revenue growth with Logicalis appearing to pass its inflection point at the end of 2009. Our cash generation remains strong and margins are steady. The inherent leverage in our business model is beginning to show through as the cost reductions initiated over a year ago provide a solid basis for capturing the benefits of any revenue growth".
Westcon and Westcon Emerging Markets
Westcon's strong financial performance during the first half of the current financial year continues to improve steadily. Third quarter revenues showed sequential growth over the first two quarters, with stable gross margins, EBITDA margins and improved profitability. Westcon is benefiting strongly from the high operational gearing that exists as a result of its significantly reduced cost base and improved operational efficiencies.
Trading in the Americas, particularly in the US, continued to improve over the first half of the current financial year, with conditions in Europe stable and the Asia Pacific region remaining strong.
Westcon Emerging Markets (Africa, Middle East and India) is continuing to trade well with an improved performance over the prior year. Westcon's strong working capital and operating cash flow management has continued.
Logicalis
Trading improved from the first half of the financial year, although the business continues to be affected by larger projects being delayed with the resultant impact on attached services. However, all operations appear to have recently passed an inflection point.
Particularly pleasing was a very strong performance in the UK in December on the back of the IBM year end and another solid performance in South America. Logicalis is typically a business that improves later in the economic cycle, in part due to the longer term nature of its customer contracts. Logicalis is expected to produce a better second half performance in the current financial year than the first half.
Consulting Services
Trading in the second half is expected to show a sequential improvement over the first half of the financial year, and operating profits have improved after a difficult start to the financial year. Telecommunications operators and service providers reduced discretionary spend significantly through much of 2009, resulting in lower strategy consulting revenues.
Acquisition of NetStar
The acquisition of NetStar Group Holding Limited for $19.8 millionin new Datatec shares, announced on 8 December 2009, is expected to complete shortly. This is expected to be an earnings enhancing acquisition of an established independent provider of network integration and managed services across the Asia-Pacific region, and brings with it an excellent reputation.
It establishes a sizeable presence for Logicalis across South East Asia, China and Australia and in one transaction provides:
- an ideal pan Asia-Pacific platform to develop the business by further acquisitions in the region and to roll-out new services in some of the world's most dynamic economies and markets;
- the ability to meet the growing requirement from many multinational customers to provide them with coverage across the region; and
- a presence in mainland China, the most significant developing market in the world.
The Group expects to release its preliminary results for the year ending 28 February 2010 on Thursday 13 May 2010.
to 31 December 2009.
Based on trading and profitability during the Period, as anticipated the second half of the current financial year is expected to be sequentially and comparatively better than the first half of the current financial year and the second half of the prior financial year.
The Group has now returned to revenue growth in all its divisions during the second half with the early signs of improvement seen at the end of the second quarter continuing into the second half of the current financial year. Overall gross margins have remained stable.
On 14 May 2009 the Group published a forecast for the financial year ending 28 February 2010 of revenues of between $3.7 billion and $4 billion, profit after tax of approximately $44 million, underlying earnings per share of approximately 29 US cents and earnings* and headline* earnings per share of approximately 23 US cents. Based on current exchange rates and trading conditions, all of these forecasts remain unchanged.
Jens Montanana, Chief Executive Officer said: "We are very pleased to see that all parts of the Group around the world are now showing revenue growth with Logicalis appearing to pass its inflection point at the end of 2009. Our cash generation remains strong and margins are steady. The inherent leverage in our business model is beginning to show through as the cost reductions initiated over a year ago provide a solid basis for capturing the benefits of any revenue growth".
Westcon and Westcon Emerging Markets
Westcon's strong financial performance during the first half of the current financial year continues to improve steadily. Third quarter revenues showed sequential growth over the first two quarters, with stable gross margins, EBITDA margins and improved profitability. Westcon is benefiting strongly from the high operational gearing that exists as a result of its significantly reduced cost base and improved operational efficiencies.
Trading in the Americas, particularly in the US, continued to improve over the first half of the current financial year, with conditions in Europe stable and the Asia Pacific region remaining strong.
Westcon Emerging Markets (Africa, Middle East and India) is continuing to trade well with an improved performance over the prior year. Westcon's strong working capital and operating cash flow management has continued.
Logicalis
Trading improved from the first half of the financial year, although the business continues to be affected by larger projects being delayed with the resultant impact on attached services. However, all operations appear to have recently passed an inflection point.
Particularly pleasing was a very strong performance in the UK in December on the back of the IBM year end and another solid performance in South America. Logicalis is typically a business that improves later in the economic cycle, in part due to the longer term nature of its customer contracts. Logicalis is expected to produce a better second half performance in the current financial year than the first half.
Consulting Services
Trading in the second half is expected to show a sequential improvement over the first half of the financial year, and operating profits have improved after a difficult start to the financial year. Telecommunications operators and service providers reduced discretionary spend significantly through much of 2009, resulting in lower strategy consulting revenues.
Acquisition of NetStar
The acquisition of NetStar Group Holding Limited for $19.8 millionin new Datatec shares, announced on 8 December 2009, is expected to complete shortly. This is expected to be an earnings enhancing acquisition of an established independent provider of network integration and managed services across the Asia-Pacific region, and brings with it an excellent reputation.
It establishes a sizeable presence for Logicalis across South East Asia, China and Australia and in one transaction provides:
- an ideal pan Asia-Pacific platform to develop the business by further acquisitions in the region and to roll-out new services in some of the world's most dynamic economies and markets;
- the ability to meet the growing requirement from many multinational customers to provide them with coverage across the region; and
- a presence in mainland China, the most significant developing market in the world.
The Group expects to release its preliminary results for the year ending 28 February 2010 on Thursday 13 May 2010.
Mr Price Group Limited - Trading Update For Third Quarter (Q3 2010)
During the third quarter (October, November and December) of the financial year ending 31 March 2010, Mr Price Group recorded sales growth of 8.4%.
The Group achieved sales growth of 6.2% and 6.4% in October and November respectively. The growth achieved in December was 10.8%. Comparable sales, which include sales of expanded and relocated stores in like-for-like locations, grew by 5.7% for the quarter and by 8.5% in December. Sales to franchised stores are excluded from these comparisons.
Group sales for the quarter were in line with expectations which took into account the recession and the very high base in the same quarter in the previous year when comparable sales were over 15%. Inflation for the period was 5.1% and cash sales constituted 84.6% of total sales. Gross margins were also in line with expectations.
The Apparel Division (Mr Price, Mr Price Sport and Miladys), which represented 73.4% of sales, achieved sales growth for the quarter of 10.4% (December 12.7%) with comparable sales growth of 6.6% (December 9.7%). Weighted average space increased by 7.0% and inflation of 3.6% was recorded for the quarter.
The Home Division (Mr Price Home and Sheet Street), which represented 26.6% of sales, continued to be affected by the reduced consumer spend on durable and semi-durable products which includes homewares. Sales growth of 3.2% (December 5.3%) and comparable sales growth of 3.4% (December 5.2%) was recorded.
Weighted average space increased by 2.0% and inflation of 8.4% was recorded for the quarter.
The debtors' book remained well controlled from both a credit granting and a collections perspective, resulting in bad debt levels improving slightly on that reported for the half year ended 30 September 2009. The financial figures above have not been reviewed and reported on by the company's auditors.
The Group achieved sales growth of 6.2% and 6.4% in October and November respectively. The growth achieved in December was 10.8%. Comparable sales, which include sales of expanded and relocated stores in like-for-like locations, grew by 5.7% for the quarter and by 8.5% in December. Sales to franchised stores are excluded from these comparisons.
Group sales for the quarter were in line with expectations which took into account the recession and the very high base in the same quarter in the previous year when comparable sales were over 15%. Inflation for the period was 5.1% and cash sales constituted 84.6% of total sales. Gross margins were also in line with expectations.
The Apparel Division (Mr Price, Mr Price Sport and Miladys), which represented 73.4% of sales, achieved sales growth for the quarter of 10.4% (December 12.7%) with comparable sales growth of 6.6% (December 9.7%). Weighted average space increased by 7.0% and inflation of 3.6% was recorded for the quarter.
The Home Division (Mr Price Home and Sheet Street), which represented 26.6% of sales, continued to be affected by the reduced consumer spend on durable and semi-durable products which includes homewares. Sales growth of 3.2% (December 5.3%) and comparable sales growth of 3.4% (December 5.2%) was recorded.
Weighted average space increased by 2.0% and inflation of 8.4% was recorded for the quarter.
The debtors' book remained well controlled from both a credit granting and a collections perspective, resulting in bad debt levels improving slightly on that reported for the half year ended 30 September 2009. The financial figures above have not been reviewed and reported on by the company's auditors.
Wednesday, January 13, 2010
Shoprite Holdings Limited - Operational Update
The Group performed satisfactorily in the six months to 31 December 2009, growing turnover by 11,9% to R33,1 billion. Growth on a like-for-like basis was 6,4%. This performance must be seen against internal inflation that dropped to under 3% in December 2009.
Its supermarket operation in South Africa increased sales by 14,6% and by 9,1% on a like-for-like basis.
Due to the weakening of most non-RSA currencies against the rand the turnover of the Group's non-RSA supermarkets in rand terms declined by 4,3% and, on a like-for-like basis, by 9,3%. At constant currencies an acceptable rand turnover growth of 16,3% was achieved.
Against the background of a furniture industry that was more unfavourably affected by the economic downturn, the Group's furniture division sales grew by 11,5% for the six months.
The above financial information has not been reviewed or reported on by Shoprite Holding's auditors. The financial results for the review period will be published on Tuesday, 23 February 2010.
Its supermarket operation in South Africa increased sales by 14,6% and by 9,1% on a like-for-like basis.
Due to the weakening of most non-RSA currencies against the rand the turnover of the Group's non-RSA supermarkets in rand terms declined by 4,3% and, on a like-for-like basis, by 9,3%. At constant currencies an acceptable rand turnover growth of 16,3% was achieved.
Against the background of a furniture industry that was more unfavourably affected by the economic downturn, the Group's furniture division sales grew by 11,5% for the six months.
The above financial information has not been reviewed or reported on by Shoprite Holding's auditors. The financial results for the review period will be published on Tuesday, 23 February 2010.
Net 1 UEPS Technologies, Inc. Net1 completes enrollment of one million cardholders
Net1 completes enrollment of one million cardholders in Iraq and receives additional orders.
Net1 UEPS Technologies, Inc. announced today that its wholly owned subsidiary, Net1 Universal Electronic Technological Solutions (Pty) Ltd (NUETS), which focuses on Africa and the Middle East, passed a key milestone in the implementation of its contract with the government of Iraq by enrolling its one millionth beneficiary earlier this month.
Net1's UEPS system was implemented in Iraq in August of 2008 and is currently used for the distribution and payment of government grants to war victims, government pension payments to beneficiaries, salary and wage distribution and payments to employees of the two state banks.
In addition, NUETS has received additional orders for 800,000 Universal Electronic Payment System (UEPS) enabled smart cards and 1,500 POS devices for deployment in Iraq. Net1 expects to deliver the newly ordered cards over the remainder of fiscal year 2010.
"These new orders will further fuel the significant progress that has been made since the introduction of the UEPS technology in Iraq in August 2008," said Brenda Stewart, Managing Director of NUETS. One million UEPS smart cards have already been issued to beneficiaries and the new orders will facilitate the issuance of cards to additional pension payment beneficiaries, war victims and the introduction of various new grants that have been contemplated by the authorities.
The deployment of an additional 1,500 POS Devices into merchant stores across Iraq will commence in February of 2010 and these devices will offer our full suite of UEPS "branchless banking" products, services and functionality. They will also assist to significantly shorten the queues that are currently being encountered during payment cycles in the branch network of the two state banks," she added.
"We are delighted with the progress of our implementation in Iraq and commend our partners on their sustained pace of expansion," said Dr. Serge Belamant, Chairman and CEO. "The growth in the number of cards issued should proportionally increase the recurring revenues we receive from Iraq. We are in the early stages of creating a broad-based electronic transaction processing platform that would allow the citizens of Iraq to not only receive benefits in a secure, cost-efficient manner, but would also create broader access to additional formal financial services," he concluded.
Net1 provides its universal electronic payment system (UEPS), as an alternative payment system for the unbanked and under-banked populations of developing economies. The company believes that it is the first company worldwide to implement a system that can enable the estimated four billion people who generally have limited or no access to a bank account to enter affordably into electronic transactions with each other, government agencies, employers, merchants and other financial service providers.
To accomplish this, Net1 has developed and deployed the UEPS. This system uses secure smart cards that operate in real-time but offline, unlike traditional payment systems offered by major banking institutions that require immediate access through a communications network to a centralized computer.
This offline capability means that users of Net1's system can enter into transactions at any time with other cardholders in even the most remote areas so long as a portable offline smart card reader is available. In addition to payments and purchases, Net1's system can be used for banking, health care management, international money transfers, voting and identification.
Net1 also focuses on the development and provision of secure transaction technology, solutions and services. Its core competencies around secure online transaction processing, cryptography and integrated circuit card (chip/smart card) technologies are principally applied to electronic commerce transactions in the telecommunications, banking, retail, petroleum and utilities market sectors.
Net1 has a primary listing on the Nasdaq and a secondary listing on the JSE Limited.
Net1 UEPS Technologies, Inc. announced today that its wholly owned subsidiary, Net1 Universal Electronic Technological Solutions (Pty) Ltd (NUETS), which focuses on Africa and the Middle East, passed a key milestone in the implementation of its contract with the government of Iraq by enrolling its one millionth beneficiary earlier this month.
Net1's UEPS system was implemented in Iraq in August of 2008 and is currently used for the distribution and payment of government grants to war victims, government pension payments to beneficiaries, salary and wage distribution and payments to employees of the two state banks.
In addition, NUETS has received additional orders for 800,000 Universal Electronic Payment System (UEPS) enabled smart cards and 1,500 POS devices for deployment in Iraq. Net1 expects to deliver the newly ordered cards over the remainder of fiscal year 2010.
"These new orders will further fuel the significant progress that has been made since the introduction of the UEPS technology in Iraq in August 2008," said Brenda Stewart, Managing Director of NUETS. One million UEPS smart cards have already been issued to beneficiaries and the new orders will facilitate the issuance of cards to additional pension payment beneficiaries, war victims and the introduction of various new grants that have been contemplated by the authorities.
The deployment of an additional 1,500 POS Devices into merchant stores across Iraq will commence in February of 2010 and these devices will offer our full suite of UEPS "branchless banking" products, services and functionality. They will also assist to significantly shorten the queues that are currently being encountered during payment cycles in the branch network of the two state banks," she added.
"We are delighted with the progress of our implementation in Iraq and commend our partners on their sustained pace of expansion," said Dr. Serge Belamant, Chairman and CEO. "The growth in the number of cards issued should proportionally increase the recurring revenues we receive from Iraq. We are in the early stages of creating a broad-based electronic transaction processing platform that would allow the citizens of Iraq to not only receive benefits in a secure, cost-efficient manner, but would also create broader access to additional formal financial services," he concluded.
Net1 provides its universal electronic payment system (UEPS), as an alternative payment system for the unbanked and under-banked populations of developing economies. The company believes that it is the first company worldwide to implement a system that can enable the estimated four billion people who generally have limited or no access to a bank account to enter affordably into electronic transactions with each other, government agencies, employers, merchants and other financial service providers.
To accomplish this, Net1 has developed and deployed the UEPS. This system uses secure smart cards that operate in real-time but offline, unlike traditional payment systems offered by major banking institutions that require immediate access through a communications network to a centralized computer.
This offline capability means that users of Net1's system can enter into transactions at any time with other cardholders in even the most remote areas so long as a portable offline smart card reader is available. In addition to payments and purchases, Net1's system can be used for banking, health care management, international money transfers, voting and identification.
Net1 also focuses on the development and provision of secure transaction technology, solutions and services. Its core competencies around secure online transaction processing, cryptography and integrated circuit card (chip/smart card) technologies are principally applied to electronic commerce transactions in the telecommunications, banking, retail, petroleum and utilities market sectors.
Net1 has a primary listing on the Nasdaq and a secondary listing on the JSE Limited.
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