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Edcon Ltd (IRSH)

Edcon Ltd

Q2 September 2013 Results/Fiscal Year 2014
RNS Number : 5709T
Edcon Limited
21 November 2013
 



21 November 2013

This notice is important and requires your immediate attention.

 

 

 

 

EDCON HOLDINGS LIMITED ("EDCON")

UNAUDITED INTERIM CONDENSED FINANCIAL STATEMENTS

AND QUARTERLY REPORT

FOR THE SIX-MONTH PERIOD ENDED 28 SEPTEMBER 2013

 

 


SUMMARY OF FINANCIAL AND OTHER DATA

The following Summary of Financial and Other Data should be read in conjunction with the Condensed Consolidated Financial Statements and related notes thereto in the second half of this notice. Following the unwind of OntheCards Investments II Proprietary Limited ("OtC") on 31 October 2012 and the sale of the trade receivables under our private label store card programme to Absa Bank Limited ("Absa"), a subsidiary of Barclays Africa Limited, on 1 November 2012, we believe that the presentation of our financial information excluding the impact of consolidating OtC is no longer relevant to analyse our performance. The relevant sections relating to the impact of consolidating OtC in the prior year numbers are available on our website.

 

The unaudited historical financial data in the Summary of Financial and Other Data and the Condensed Consolidated Financial Statements of Edcon Holdings Limited and its subsidiaries (the "Group") attached hereto, relates to the six-month period ended 29 September 2012 and the six-month period ended 28 September 2013. Unless the context requires otherwise, references in this notice to "second quarter 2013" and "second quarter 2014" shall mean the 13-week period ended 29 September 2012 and the 13-week period ended 28 September 2013, respectively and (ii) "fiscal 2013" and "fiscal 2014" shall mean the 52-week period ended 30 March 2013 and the 52-week period ending 29 March 2014, respectively.

 

Throughout these reports Edgars refers to the Edgars division, which comprises Edgars, Red Square, Boardmans, Edgars Active, Edgars Shoe Gallery and our Mono-branded stores while Discount refers to the Discount division, which comprises Jet, Jet Mart and Legit as well as Discom prior to the conversion of the Discom stores into Edgars Active and Legit stores.

 

The statements in this section regarding industry outlook, our expectation regarding our future performance, liquidity and capital resources and other non-historical statements in this discussion are forward looking statements. These forward looking statements are subject to numerous risks and uncertainties. Our actual results may differ materially from these contained in or implied by any forward looking statements.

 



 

Management discussion and analysis of financial consolidated condition

 

Highlights

Pertaining to the second quarter 2014 compared to second quarter 2013:

 

v Improved operational performance

¨    Retail sales up 5.9% to R6.0 billion

¨    Cash sales growth of 17.4%

¨    Retail sales from operations outside South Africa up 25.5%

v Improved profitability

¨    Gross profit up 6.2% to R2.2 billion

¨    Pro forma adjusted EBITDA up 9.3% to R481 million

v Delivery against strategic plan

¨    Increase in average space of 5.1%

¨    Edgars refurbishment almost complete

¨    Discount divisional performance remains sound

 

 

Introduction

 

Edcon has continued to improve its performance while it executes its strategic change agenda in the Edgars division to position the Group for future growth. During the second quarter 2014 retail sales increased 5.9% to R6,017 million, which together with cost savings initiatives resulted in pro forma adjusted EBITDA increasing by 9.3% to R481 million. Cash sales grew strongly increasing 17.4%, a positive sign for both our in-store and Thank U loyalty offerings, with over 10 million card holders.

 

Edgars' implementation of the 72-store refurbishment programme is almost complete, although the heavy build element of this programme still negatively affected results in the second quarter 2014. The physical changes are being augmented with the implementation of optimisation and people initiatives, which are also now well advanced, and the rollout of the brands in both the refurbished and mono branded stores has started to gain momentum. The Discount division delivered a good sales and profitability performance, positively impacting the Group, as the sustained execution of the strategy implemented again yielded results.

 

Within a broader South African environment, unsecured lending growth has remained slower than in previous periods and consumer confidence remains muted. However, information from Statistics South Africa continues to support a more positive view on apparel sales growth as total retail sales growth within the clothing and footwear market is estimated to have grown 8.7% in July 2013, compared to 2.9% for total retail trade sales and 7.9% in August, compared to 3.0% for total retail trade sales. All numbers refer to constant 2012 prices.



 

Trading review

 

Key operational data


(unaudited)

Retail sales growth (%)

(unaudited)

Gross profit margin (%)


Q2:FY13 Actual

Q2:FY14 Actual

Q2:FY13 LFL(1)

Q2:FY14 LFL(1)

Q2:FY13 Actual

Q2:FY14 Actual

pts change(2)

Edgars

4.9

3.4

(2.4)

(1.6)

38.9

38.6

(0.3)

Discount

(0.1)

10.3

4.9

5.4

31.3

32.3

1.0

CNA

(1.2)

3.6

2.7

1.6

30.7

30.9

0.2

Edgars Zimbabwe

35.7

(1.3)

36.0

(2.7)

50.0

48.7

(1.3)

Total

3.1

5.9

1.4

1.2

35.7

35.8

0.1










Q2:FY13AActual

Q2:FY14 Actual

% change





Total number of stores

1 209

1 368

13.2





Average retail space ('000 sqm)

1 403

1 474

5.1





Customer credit accounts ('000s)(3)

3 810

3 709

(2.7)





(1) Like-for-like sales (same store sales)

(2) Q2:FY14 % change on Q2:FY13

(3) Excludes Edgars Zimbabwe customer credit accounts 2Q:FY14 of 134 000 and 2Q:FY13 of 128 000

 

Edgars

 

The Edgars division grew retail sales 3.4% for the second quarter 2014 when compared to the second quarter 2013. The increase is primarily due to the continued opening of Edgars Active stores and promotional campaigns. Space increased 5.6% when compared to the second quarter 2013.  During the quarter, seven new Edgars Active stores opened as well as one new Edgars store and one more Edgars Shoe Gallery store opened. Forty-six mono-branded stores were either opened or included as part of the Inglot, La Senza and Accessorize acquisition in which Edcon acquired a controlling stake in the companies retailing these brands under licence in South Africa. The acquisition became effective 1 September 2013. During the same period there were four closures (one Edgars, one Boardmans and two Red Square stores), bringing the total number of stores in the Edgars division to 466.

 

Same-store sales were encouragingly only lower by 1.6% compared to the second quarter 2013 as the temporary disruptions from the transformation initiatives impacted results less than anticipated in the quarter. The transformation programme is a key part of repositioning the chain for the future and consists of three key elements; the refurbishment of 72 of the 186 stores, representing approximately 72% of the store chain's retail sales, as well as an optimisation and people support programme. The refurbishment element of the transformation project in Edgars has progressed to schedule. As at the end of the second quarter 2014, 61 of the 72 stores were completed and we remain on track to complete all but one of the stores before the start of the Christmas trading period. Trading in the first 16 stores - as previously disclosed - continues to trade up between 250 - 500bps 13-weeks post refurbishment when compared to the 19-weeks prior to refurbishment taking place. Results to date are before the benefit of the "New Look" marketing campaign, launched in early October 2013 to create heightened awareness of the changes in Edgars, as the majority of the stores have been completed and multiple new brands are in the process of being introduced. At 28 September 2013, the cumulative cost for the project was R443 million.

 

Gross margin was 38.6% for the second quarter 2014 down marginally from 38.9% for the second quarter 2013 in a cyclically lower margin period which reflects winter clearance activity.

Discount

 

The Discount division's sales increased 10.3% and same store sales were 5.4% higher for the second quarter 2014 compared to the second quarter 2013. The increase is primarily due a strong performance in ladies and menswear. The sound performance is built on the turnaround measures implemented in the division some 12-24 months ago, including many initiatives which are similar to the ones now being applied in the Edgar's Division.

 

Space increased 5.1% when compared to the second quarter 2013. During the quarter eleven new Jet stores, four new Jet Marts and three new Legit stores were opened while ten stores were closed or converted (eight Jet, one Legit and one Jet Mart) bringing the total number of stores in the Discount division to 666.

 

The gross profit margin increased from 31.3% in the second quarter of 2013 to 32.3% in the second quarter of 2014, as a result of the strategic changes made continuing to deliver benefits.

 

CNA

 

CNA sales increased 3.6% and same store sales were 1.6% higher for the second quarter 2014 compared to the second quarter 2013 primarily due to the continued growth of digital merchandise. In line with the strategy of right-sizing and converting existing stores to the right-purpose, the total number of CNA stores reduced by one store to end the period at 194 with the average space decreasing by 0.4%. Gross margin increased marginally from 30.7% for the second quarter 2013 to 30.9% in the second quarter 2014 despite the unfavourable impact of changes in mix.

 

African expansion

 

The expansion outside of South Africa, mainly through the Jet, Jet Mart and Edgars Active formats, performed well during the quarter. The total number of stores outside of South Africa increased by 39 from 115 at the end of the second quarter 2013 to 154 at the end of the second quarter 2014, as expansion remained at a steady pace. The sales from these countries grew 25.5% in the second quarter 2014 compared to the second quarter 2013 due to the increased number of stores as well as improved merchandise selection and availability. These sales contributed 11.4% (9.1% excluding Zimbabwe) of retail sales for the second quarter 2014, up from 9.6% (7.1% excluding Zimbabwe) in the prior comparative period. This remains an exciting opportunity going forward.

 

Credit and financial services

 

Due to the weak credit environment, Edcon, excluding Edgars Zimbabwe, ended the second quarter 2014 with 100,000 fewer customers able to access credit than the second quarter 2013. On a twelve month rolling basis, credit sales decreased from 51.4% in the prior comparative period to 49.0% of total retail sales. As part of ongoing credit initiatives, Edcon, together with Absa, began launching new and enhanced credit products in October 2013.

 

Currently R683 million of the trade receivables book is classified as held-for-sale as it is still in the process of being sold to Absa. These trade receivables accounts relate only to non-South African jurisdictions and we have a high level of confidence that they will be sold subject only to outstanding regulatory approval in the various jurisdictions, or collected. More than 80% of the R222 million held in trade accounts receivable, separate from those classified as held-for-sale, relates to the Zimbabwean book, which was never part of the sale to Absa and is separately managed and funded.

 

Income from the insurance joint operation continued to perform well increasing 11.5% over the prior comparative quarter to R184 million for the second quarter 2014. Most of the increase was due to the improved contractual arrangements as the pace of insurance growth was again impacted by the lower number of credit customers. A store credit facility is a prerequisite for a policy.



 

Financial review

 

Summary financial information


Second quarter (unaudited)

Rm

2013

 (re-presented & restated)(3)

2014

% change

Total revenues(1)

6 038

6 476

 7.3

Retail sales

5 683

6 017

5.9

Gross profit

2 029

2 154

6.2

Gross profit margin (%)

35.7

35.8

0.1pnt

Pro forma adjusted EBITDA(2)

440

481

9.3

Capital expenditure

174

510

193.1

Net debt including cash and derivatives

26 462

20 925

(20.9)

LTM pro forma adjusted EBITDA (reported)

2 941

2 859

(2.8)

Permanent adjustments(4)


152


LTM pro forma adjusted EBITDA (inc. cost savings)

2 941

3 011

2.4

Net debt/LTM pro forma adjusted EBITDA (inc. cost savings) (5)

5.6

6.7

1.1x

(1)       Excludes discontinued operations.

(2)       See notes on pro forma adjusted EBITDA below.

(3)       Re-presented to take into account the discontinued operation actually sold to Absa and restated for the retrospective consolidation of Edgars Zimbabwe.

(4)       Full year impact of remaining permanent cost savings not included in Q2: FY14 LTM pro forma adjusted EBITDA: Corporate and operational overhead reductions of R58m and renegotiation of contracts of R94m.

(5)       Pro forma net debt is R16,502 at Q2:FY13 and R20,207m at Q2:FY14.

 

Revenues

 

Total revenues increased 7.3% due to an improved trading performance and good growth in income from the insurance joint operation with Hollard. Same store sales increased 1.2% in the second quarter 2014 mainly as a result of strong cash sales of 17.4% and despite the disruption caused by the refurbishment initiatives in the Edgars' division and credit sales for the Group reducing by 4.3%.

 

Retail gross profit

 

Gross profit was 6.2% higher due to a 10 basis point increase in the gross profit margin. Margins improved in both the Discount and CNA divisions but were marginally lower in the Edgars division.

 

Pro forma adjusted EBITDA

 

Pro forma adjusted EBITDA excludes clearly identified non-recurring costs, further adjusted to give effect to the transaction with Absa as if 100% of such transaction had occurred from the beginning of each of the periods.

 



 

The following table reconciles trading profit to adjusted EBITDA and Pro forma adjusted EBITDA:


Second quarter (unaudited)

Rm

2013

2014

Trading profit

169

161


Depreciation and amortisation

261

286


Net asset write off(1)

2

2


Profit from discontinued operations(2)

211

1


Non-recurring costs(3)

85

46


Adjusted EBITDA

728

496


Net income from previous card programme(4)

(364)

(28)


Net income from new card programme(5)

76

13


Pro forma adjusted EBITDA(5)

440

481

9.3

(1)       Relates to assets written off in connection with store conversions, net of related proceeds.

(2)       The results of discontinued operations are included before tax.

(3)       Relates to one off strategic initiatives in Q2:FY13 of R83m, expenses on termination of the Mastercard agreement in Q2:FY13 of R2m, costs associated with the sale of the trade receivables book in Q2:FY14 of R36m and costs associated with corporate and operational overhead reductions in Q2:FY14 of R10m.

(4)       Net income derived from 100% of the trade receivables including finance charges revenue, bad debts and provisions.

(5)       Pro forma fee earned by Edcon under the new arrangement with Absa, based on 100% of the trade receivables book.

 

Costs


Second quarter (unaudited)

Rm

 

2013

2014

% change

Store costs

1 205

1 320

9.5

Other operating costs(1)

899

943

4.9

Store card credit administration costs(2)


127


Non-recurring costs(3)

85

46


(1)         Other operating costs as per consolidated financial statements, before costs in notes (2) and (3) below.

(2)         Relates to costs associated with the administration of the store credit card funded by Absa or Edcon and not in discontinued operations.

(3)         Relates to one off strategic initiatives in Q2:FY13 of R83m, expenses on termination of the Mastercard agreement in Q2:FY13 of R2m, costs associated with the sale of the trade receivables book in Q2:FY14 of R36m and costs associated with corporate and operational overhead reductions in Q2:FY14 of R10m.

 

Total store costs increased by R115 million, or 9.5%, from R1,205 million in the second quarter 2013 to R1,320 million in the second quarter 2014, mainly due to higher rental and manpower costs that increased by 6.7% and 7.6% respectively and constituted 61.5% of total costs. Store costs were better contained in the Discount division to support the operational performance, while store costs in the Edgars division increased as optimisation efforts are only anticipated to have an impact in the second half of fiscal year 2014, once the heavy-build refurbishment is behind us, and new mono-branded stores are rolled out.

 

Other operating costs, excluding non-recurring and non-comparable costs associated with administrating the trade accounts receivable book, increased by R44 million, or 4.9%, from R899 million in the second quarter 2013 to R943 million in the second quarter 2014. Income from Absa for administering the book of R77 million is included in other income.

 

Depreciation and amortisation

 

The depreciation and amortisation charge for the second quarter 2014 increased by 9.6% to R286 million mainly due to new stores.



 

 

Net financing costs


Second quarter (unaudited)

Rm

 

2013

2014

% change

Interest received

14

3


Financing costs

(906)

(657)


Net financing costs

(892)

(654)

(26.7)

 

Net financing costs decreased by R238 million, or 26.7%, from R892 million in the second quarter 2013 to R654 million in the second quarter 2014. This decrease is primarily as a result of an improved net debt position following the sale of the trade accounts receivable assets to Absa on 1 November 2012, 30 April 2013 and June 2013.

 

Foreign exchange management

 

Edcon applies a strategy of hedging all committed foreign denominated orders, the impact of which appears above the trading profit line. These forward contracts and some inflation in selling prices have absorbed the impact of a weaker rand when compared to the same period in the prior year.

 


Second quarter (unaudited)

Rm

 

2013

2014

% change

Derivative (losses)/gains

(2)

141


Foreign exchange losses

(259)

(588)


Net movement

(261)

(447)

71.3

 

Edcon manages its foreign exchange risk on liabilities on an ongoing basis. At the end of the second quarter 2014, 82% of the total gross debt is hedged by virtue of it being denominated in ZAR or through a mix of cross currency swaps and options and 18%, or €302 million of the floating rate senior notes maturing in 2015, is unhedged. The unhedged notes resulted in a foreign exchange loss in the second quarter 2014 of approximately R223 million based on a 5.8% depreciation of the ZAR against the EUR (from EUR:R12.86 to EUR:R13.60). The net movement increased to R447 million, substantially due to R183 million of net loss attributable to the portion of the hedging on the 2018 notes principal which did not have a direct correlation to movement in exchange rates due to changes in volatility and the effluxion of time, which impacted the effectiveness of the hedges.

 

Cash flow

Operating cash inflow before changes in working capital decreased by R255 million from R681 million in the second quarter 2013 to R426 million in the second quarter 2014 mainly due to the prior year benefitting from the cash generated on the discontinued operations which are now sold.

 

Working capital decreased by R65 million in the second quarter 2014, compared to an increase of R134 million in the second quarter 2013 attributable to:

(i)         A net increase in trade receivables of R4 million in the second quarter 2014 compared to a decrease of R189 million in the second quarter 2013 together with a R114 million cash receipt for the sale of the tranche of the trade receivables on 30 June 2013;

(ii)         An increase in other receivables and prepayments of R51 million in the second quarter 2014 compared to an decrease of R32 million in the second quarter 2013;

(iii)        an increase in inventory of R218 million in the second quarter 2014 compared to an increase of R153 million in the second quarter 2013 mainly due to a more conservative approach to receipting December stocks earlier; and

(iv)        an increase in trade and other payables of R94 million in the second quarter 2014 compared to an increase of R66 million in the second quarter 2013 due to higher inventory levels.

 

Consequently, operating activities generated cash of R361 million, R454 million lower than the R815 million in the prior comparative period.

 

Capital expenditure


Second quarter (unaudited)

Rm

2013

2014

% change

Edgars

60

356


Expansion

16

56


Refurbishment

44

300


Discount

44

64


Expansion

6

24


Refurbishment

38

40


CNA

15

5


Edgars Zimbabwe

3

21


IT

52

64


Other  corporate capex

-

-



174

510

193.1

 

Capital expenditure increased by R336 million to R510 million in the second quarter 2014, from R174 million in the second quarter 2013, although R187 million remains in sundry accounts payable. In the second quarter 2014, 32 new stores were opened (excluding 4 conversion) which, combined with store refurbishments, resulted in investments in stores of R425 million, compared to the second quarter 2013 where we opened 34 new stores (including 10 conversions) resulting in an investment in stores of R119 million. Edcon invested R64 million in information systems infrastructure in the second quarter 2014 compared to R52 million in the second quarter 2013.

 

The company expects to spend R1,175 million on capital expenditure in fiscal year 2014.

 

 

Net debt, liquidity and capital resources

 

The primary source of short-term liquidity is cash on hand and the revolving credit facility. The amount of cash on hand and the outstanding balance on the revolving credit facility are influenced by a number of factors, including retail sales, working capital levels, supplier payment terms, timing of payment for capital expenditure projects, and tax payment requirements. Working capital requirements fluctuate during each month, depending on when suppliers are paid and when sales are generated, and throughout the year depending on the seasonal build-up of net working capital. Edcon funds peaks in the working capital cycle with cash flows from operations and drawings under our revolving credit facility.


Second quarter (unaudited)

Rm


Drawn(4)


Super senior secured




ZAR Revolving credit facility(1),(2)


1 406


ZAR Floating rate notes due 4 April 2016

J+625bps

1 010


Senior secured




ZAR term loan due 16 May 2017

J+700bps

3 994


EUR fixed rate note due 1 March 2018

9.5%

8 085


USD fixed rate note due 1 March 2018

9.5%

2 463


Deferred option premium


587


Lease liabilities


294


Senior




EUR floating rate notes due 30 June 2015

E+550bps

5 104


Other loans(3)


168


Gross debt


23 111


Derivatives


(1 800)


Cash on hand


(386)


Net debt


20 925


(1)       The total limit under the super senior revolving credit facility was R3,967 million, R250 million of which matures on 31 March 2014 with the balance of R3,717 million maturing on 31 December 2016. The maximum utilisation of the revolving credit facility during the second quarter 2014 was R1,464 million.

(2)       Mix of rates highest being J+400 bps.

(3)       R165 million of this debt relates to Edgars Zimbabwe.

(4)       FX rates at period end were R10.02:$ and R13.60:€.

 

Edcon believes that operating cash flows, amounts available under the super senior revolving credit facility and proceeds from the sale of our accounts and trade receivables to Absa will be sufficient to fund debt service obligations and operations, including capital expenditure and contractual commitments, through to 29 March 2014.

 

 

Events after the reporting period

 

During October 2013, a series of derivative contracts were entered into to extend, by a further twelve months, the maturity of hedge cover on the coupon payments relating to the senior secured fixed rate notes. Cross currency swaps were entered into, which protects against variability in future interest cash flows that are subject to fluctuations based on foreign exchange rates. The notional values for the hedges are €317 million and $250 million, and provide cover on the coupons of these notes up to 15 March 2015. The hedges create an effective annual average fixed interest rate of 10.2% over the period of cover. The cross currency swaps have been designated as cash flow hedges. 

 

On 14 November 2013, Edcon Holdings Limited ("Edcon Holdings") closed the offering of €425 million of euro-denominated fixed rate senior notes due 2019 (the "2019 Notes").

 

Edcon Holdings also announced that €262.5 million, or 69.4%, of the senior floating rate notes due 15 June 2015 (the "2015 Notes") had been validly tendered for and that it would accept these for purchase as set forth in the tender offer memorandum dated 6 November 2013. The purchase price for the 2015 Notes was 100.25%.

 

Edcon Holdings further announced that it would redeem all outstanding 2015 Notes that were not validly tendered and accepted for purchase pursuant to the Tender Offer (the "2015 Notes Redemption"). The redemption date for the 2015 Notes Redemption is 14 December 2013. 

 

Edcon's repurchase of 2015 Notes tendered pursuant to the Tender Offer and the 2015 Notes Redemption were funded with the net proceeds from the offering of the 2019 Notes.

 

The Notes were offered only to qualified institutional buyers in accordance with Rule 144A under the Securities Act and outside the United States in accordance with Regulation S under the Securities Act.



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Financial Statements

Edcon Holdings Limited ("Edcon")

 

 



Consolidated Statement of Financial Position (unaudited)

 

 

2013

28 September

Rm

Restated

2013

30 March

Rm

Restated

2012

29 September

Rm

ASSETS




Non-current assets




Properties, fixtures, equipment and vehicles

3 054

2 606

2 504

Intangible assets

16 585

16 697

17 317

Employee benefit asset

66

172

154

Derivative financial instruments

1 015

292

1 306

Deferred tax

45

33

51

Total non-current assets

20 765

19 800

21 332





Current assets




Inventories

4 108

3 738

3 333

Trade receivables

222

373

132

Other receivables and prepayments

596

468

369

Derivative financial instruments

922

815

5

Cash and cash equivalents

386

710

1 571


6 234

6 104

5 410

Assets classified as held-for-sale

683

1 160

9 914

Total current assets

6 917

7 264

15 324

Total assets

27 682

27 064

36 656





EQUITY AND LIABILITIES




Share capital and premium

2 153

2 153

2 153

Other reserves

94

(61)

(720)

Retained loss

(13 308)

(11 870)

(9 740)

Shareholder's loan - equity

8 290

8 290

8 290

Equity attributable to shareholders

(2 771)

(1 488)

(17)

Non-controlling interests

92

72

54

Total equity

(2 679)

(1 416)

37

Non-current liabilities - shareholder's loan




Shareholder's loan

843

801

750

Total equity and shareholder's loan

(1 836)

(615)

787

 

Non-current liabilities - third parties




Interest-bearing debt

20 787

19 259

22 438

Deferred option premium

280

269


Finance lease liability

267

273

294

Lease equalisation

457

432

416

Derivative financial instruments

-

-

39

Employee benefit liability

189

184

186

Deferred taxation

156

617

1 002

Deferred revenue

68

86



22 204

21 120

24 375

Total non-current liabilities

23 047

21 921

25 125





Current liabilities




Interest-bearing debt

1 443

1 516

5 407

Deferred option premium

307

36


Finance lease liability

27

40

38

Current taxation

76

10

11

Deferred revenue

98

106

201

Derivative financial instruments

137

79

1 128

Trade and other payables

5 226

4 772

4 709

Total current liabilities

7 314

6 559

11 494

Total equity and liabilities

27 682

27 064

36 656

Total managed capital per IAS 1

20 688

20 473

28 964



Consolidated Quarterly Statement of Comprehensive Income (unaudited)


Note

2013

13 weeks to

28 September

Rm

Re-presented & restated

2012

13 weeks to

29 September

Rm

Continuing operations




Total revenues

3

6 476

6 038

Revenue - retail sales


6 017

5 683

Cost of sales


(3 863)

(3 654)

Gross profit


2 154

2 029

Other income


259

164

Store costs


(1 320)

(1 205)

Other operating costs


(1 116)

(984)

Income from joint operations


184

165

Trading profit


161

169

Derivative gains/(losses)


141

(2)

Foreign exchange losses


(588)

(259)

Loss before net financing costs


(286)

(92)

Finance income


3

14

Loss before financing costs


(283)

(78)

Financing costs


(657)

(906)

Loss before taxation from continuing operations


(940)

(984)

Taxation


221

(1 825)

LOSS FOR THE PERIOD FROM CONTINUING OPERATIONS


(719)

(2 809)





Discontinued operations




Profit after tax for the period from discontinued operations

4

1

152

LOSS FOR THE PERIOD


(718)

(2 657)





Other comprehensive income after tax:




Exchange differences on translating foreign operations


7

(4)

Gain on cash flow hedges


14

17

Other comprehensive income for the period after tax


21

13

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD


(697)

(2 644)





(Loss)/profit attributable to:




Owners of the parent


(724)

(2 662)

Non-controlling interests


6

5



(718)

(2 657)





Total comprehensive income attributable to:




Owners of the parent


(706)

(2 649)

Non-controlling interests


9

5



(697)

(2 644)

Consolidated Half-Year Statement of Comprehensive Income (unaudited)


Note

2013

26 weeks to

28 September

Rm

Re-presented & restated

2012

26 weeks to

29 September

Rm

Continuing operations




Total revenues

3

13 091

12 358

Revenue - retail sales


12 222

11 696

Cost of sales


(7 656)

(7 389)

Gross profit


4 566

4 307

Other income


502

322

Store costs


(2 615)

(2 412)

Other operating costs


(2 254)

(1 805)

Income from joint operations


358

315

Trading profit


557

727

Derivative gains/(losses)


464

(1)

Foreign exchange losses


(1 587)

(448)

(Loss)/profit before net financing costs


(566)

278

Finance income


9

25

(Loss)/profit before financing costs


(557)

303

Financing costs


(1 276)

(1 689)

Loss before taxation from continuing operations


(1 833)

(1 386)

Taxation


413 

 (1 704)

LOSS FOR THE PERIOD FROM CONTINUING OPERATIONS


(1 420)

(3 090)





Discontinued operations




(Loss)/profit after tax for the period from discontinued operations

4

(10)

220

LOSS FOR THE PERIOD


(1 430)

(2 870)





Other comprehensive income after tax:




Exchange differences on translating foreign operations


31

(1)

Gain/(loss) on cash flow hedges


127

(24)

Other comprehensive income for the period after tax


158

(25)

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD


(1 272)

(2 895)





(Loss)/profit attributable to:




Owners of the parent


(1 438)

(2 876)

Non-controlling interests


8

6



(1 430)

(2 870)





Total comprehensive income attributable to:




Owners of the parent


(1 283)

(2 901)

Non-controlling interests


11

6



(1 272)

(2 895)

Consolidated Statement of Changes in Equity (unaudited)


Share capital and

premium

Rm

Foreign currency transla-tion

reserve

Rm

Cash flow hedging

reserve

Rm

Revalu-ation

surplus

Rm

Retained

loss

Rm

Shareho-lder's

loan

Rm

Non-controll-ing

interests

Rm

Total equity

Rm

26 weeks to 29 September 2012









Restated balance at 31 March 2012

2 153

(40)

(661)

6

(6 864)

8 290

48

2 932

(Loss)/profit for the period





(2 876)


6

(2 870)

Other comprehensive income for the period


(1)

(24)





(25)










Total comprehensive income


(1)

(24)


(2 876)


6

(2 895)

Restated balance at 29 September 2012

2 153

(41)

(685)

6

(9 740)

8 290

54

37

 

 

 

26 weeks to 28 September 2013









Restated balance at 30 March 2013

2 153

(30)

(37)

6

(11 870)

8 290

72

(1 416)

(Loss)/profit for

the period





(1 438)


8

(1 430)

Other comprehensive income for the period


28

127




3

158










Total comprehensive income


28

127


(1 438)


11

(1 272)

Acquisition of subsidiaries







9

9

Balance at 28 September 2013

2 153

(2)

90

6

(13 308)

8 290

92

(2 679)

 



 

Consolidated Quarterly Statement of Cash Flows (unaudited)



2013

13 weeks to

28 September

Rm

Re-presented & restated

2012

13 weeks to

29 September

Rm

Cash retained from operating activities




Loss before taxation from continuing operations


(940)

(984)

Profit before taxation from discontinued operations


1

211

Finance income


(3)

(14)

Finance costs


657

906

Derivative (gains)/losses


(141)

2

Deferred revenue


(28)

49

Foreign exchange losses


588

259

Amortisation of intangible assets


89

77

Depreciation


197

184

Net loss on disposal of properties, fixtures, equipment and vehicles


2

2

Other non-cash items


4

(11)

Operating cash inflow before changes in working capital


426

681

Working capital movement


(65)

134

Inventories


(218)

(153)

Trade accounts receivable


(4)

189

Proceeds from sale of trade accounts receivable


114


Other receivables and prepayments


(51)

32

Trade and other payables


94

66





Cash inflow from operating activities


361

815

Finance income received


3

14

Financing costs paid


(830)

(942)

Taxation paid


(9)

(41)

Net cash outflow from operating activities


(475)

(154)





Cash utilised in investing activities




Investment in fixtures, equipment and vehicles


(429)

(174)

Proceeds on disposal of fixtures, equipment and vehicles


2


Acquisition of subsidiaries


(25)


Other investing activities


(36)


Net cash outflow from investing activities


(488)

(174)





Cash effects of financing activities




Settlement of derivatives


(3)


Increase in interest-bearing debt


881

774

Decrease in finance lease liability


(9)

(1)

Net cash inflow from financing activities


869

773





(Decrease)/increase in cash and cash equivalents


(94)

445

Cash and cash equivalents at the beginning of the period


480

1 127

Currency adjustments


-

(1)

Cash and cash equivalents at the end of the period


386

1 571

Consolidated Half-Year Statement of Cash Flows (unaudited)



2013

26 weeks to

28 September

Rm

Re-presented & restated

2012

26 weeks to

29 September

Rm

Cash retained from operating activities




Loss before taxation from continuing operations


(1 833)

(1 386)

(Loss)/profit before taxation from discontinued operations


(14)

306

Finance income


(9)

(25)

Finance costs


1 276

1 689

Derivative (gains)/losses


(464)

1

Deferred revenue


(26)

121

Foreign exchange losses


1 587

448

Amortisation of intangible assets


167

164

Depreciation


387

369

Net loss on disposal of properties, fixtures, equipment and vehicles


2

16

Other non-cash items


51

42

Operating cash inflow before changes in working capital


1 124

1 745

Working capital movement


432

489

Inventories


(312)

(92)

Trade accounts receivable


53

113

Proceeds from sale of trade accounts receivable


575

-

Other receivables and prepayments


(53)

83

Trade and other payables


169

385





Cash inflow from operating activities


1 556

2 234

Finance income received


9

25

Financing costs paid


(1 039)

(1 585)

Taxation paid


(10)

(45)

Net cash inflow from operating activities


516

629





Cash utilised in investing activities




Investment in fixtures, equipment and vehicles


(675)

(372)

Proceeds on disposal of fixtures, equipment and vehicles


2


Acquisition of subsidiaries


(25)


Other investing activities


(38)


Net cash outflow from investing activities


(736)

(372)





Cash effects of financing activities




Settlement of derivatives


651


(Decrease)/increase in interest-bearing debt


(741)

240

Decrease in finance lease liability


(19)

(13)

Net cash (outflow)/inflow from financing activities


(109)

227





(Decrease)/increase in cash and cash equivalents


(329)

484

Cash and cash equivalents at the beginning of the period


710

1 086

Currency adjustments


5

1

Cash and cash equivalents at the end of the period


386

1 571

Condensed notes to the Consolidated Financial Statements (unaudited)

 

1.   Basis of preparation

 

Basis of accounting

 

Edcon Holdings Limited's Consolidated Financial Statements ("Financial Statements") are prepared in accordance with International Financial Reporting Standards ("IFRS") and stated in Rands ("R").

 

These Financial Statements are presented in accordance with IAS 34 Interim Financial Reporting. Accordingly, note disclosures normally included in the annual financial statements have been condensed or omitted.

 

These Financial Statements have not been audited or reviewed by an auditor. In the opinion of management, all adjustments necessary for a fair presentation of the financial position, results of operations and cash flows for the interim periods have been made.

 

In preparing these Financial Statements, the same accounting principles and methods of computation are applied as in the Audited Group Consolidated Financial Statements of Edcon Holdings Limited on 30 March 2013 and for the period then ended except those relating to new and amended standards and interpretations.

 

These Financial Statements should be read in conjunction with the audited Consolidated Financial Statements as at and for the period ended 30 March 2013 as included in the 2013 Audited Consolidated Annual Financial Statements of Edcon Holdings Limited.

 

Comparability

 

New and amended standards and interpretations

The accounting policies adopted are consistent with those of the previous financial period, except for the following new and amended IFRS standards and IFRIC interpretations effective as of 31 March 2013.

 

·      IFRS 10, Consolidated financial statements

·      IFRS 10, Consolidated financial statements - amendment effective 1 January 2014

·      IFRS 11, Joint arrangements

·      IFRS 12, Disclosure of interests in other entities

·      IFRS 10, 11 and 12, Transition guidance (Amendments to IFRS 10, 11 and 12)

·      IFRS 13, Fair value measurement

·      IAS 1, Presentation of items of other comprehensive income (amendment to IAS 1)

·      IAS 27, Separate financial statements

·      IAS 28, Investments in associates and joint ventures

·      IFRS 7, Disclosures - offsetting financial assets and financial liabilities (amendments to IFRS 7).

·      Improvements to IFRS's (May 2012)

 

The implementation of the May 2012 improvements and IFRS 13, Fair Value Measurement has resulted in additional disclosures in these Financial Statements. These are included under note 5 relating to the valuation techniques for financial instruments and disclosures of market values relating to non-current interest-bearing debt.

 

The implementation of IFRS 10, Consolidated Financial Statements and the related amendments listed above has resulted in a restatement of these Financial Statements as discussed below.

 

Restatements

IFRS 10, Consolidated Financial Statements

 

IFRS 10, Consolidated Financial Statements, was issued in May 2011 and became effective for financial periods beginning on or after 1 January 2013. In the implementation of IFRS 10, Edgars Zimbabwe was re-assessed in the consolidated financial statements, and the results of Edgars Zimbabwe have been consolidated. In the previous years, Edgars Zimbabwe was not material to the Group.

 

 

Condensed notes to the Consolidated Financial Statements (unaudited) continued

 

1.   Basis of preparation (continued)

 

Comparability(continued)

 

Restatements (continued)

 

IFRS 10, Consolidated Financial Statements (continued)

As a result of this, on the Consolidated Statement of Financial Position, trade receivables at 28 September 2013 comprise mainly of trade receivables from Edgars Zimbabwe Limited of R185 million (30 March 2013: R192 million and 29 September 2012: R132 million) which are not classified as held-for-sale. Non-controlling interests of R92 million at 28 September 2013 (30 March 2013: R72 million and 29 September 2012: R54 million) have been included in total equity. Refer to the segment results (note 2) for additional details on Edgars Zimbabwe.

 

IFRS 11, Joint Arrangements

This standard was issued in May 2011 and became effective for financial periods beginning on or after 1 January 2013. In accordance with this standard a joint arrangement is accounted for as either a:

 

·      Joint operation - by showing the investor's interest/relative interest in the assets, liabilities, revenues and expenses of the joint arrangement; or

·      Joint venture - by applying the equity accounting method. Proportionate consolidation is no longer permitted.

 

As a result of applying the principles of the standard, the Group no longer recognises income from joint ventures as previously reported but rather income from joint operations on the Consolidated Statement of Comprehensive Income. The Consolidated Statement of Financial Position no longer discloses a line item for equity accounted investment in joint venture. Rather, the Group has recognised its assets, revenue and expenses relating to the interest in the joint operation.

 

The transition provisions of IFRS 11 require that the standard is applied retrospectively in accordance with IAS 8, Accounting Policies, Changes in Accounting Estimates and Errors. In line with these transitional provisions, the restatement on the Consolidated Statement of Financial Position has been applied retrospectively. There have been no other material affects for each financial statement line item.

 

Re-presentation

The comparative numbers in the Consolidated Statement of Comprehensive Income have been re-presented to take into account the discontinued operation for the trade accounts receivable sold to Absa Limited ("Absa") on 1 November 2012 in the third quarter of the prior financial period and the additional sales in the current financial period on 30 April 2013 and 30 June 2013 (note 4).  Trade accounts receivables not yet sold at each reporting date are classified as held-for-sale on the Consolidated Statement of Financial Position.

 

Reclassification

On the Consolidated Statement of Comprehensive income for the 26-week period to 29 September 2012, a reclassification of R143 million was made from other income to other operating costs for comparative presentation to the Audited Annual Consolidated Financial Statements of Edcon Holdings Limited at 30 March 2013.

 

Significant movements on the Consolidated Statement of Financial Position

 

Assets classified as held-for-sale

Trade accounts receivable classified as held-for sale have decreased from R1 160 million at 30 March 2013 to R683 million at 28 September 2013 mainly as a result of the further sale of trade accounts receivable to Absa of R461 million and R114 million on 30 April 2013 and 30 June 2013 respectively (note 4).

 

Interest-bearing debt

Non-current interest-bearing debt

The senior secured floating rate notes of €387 million were redeemed on 20 May 2013 with the proceeds of the R4 120 million senior secured term loan.

 

Condensed notes to the Consolidated Financial Statements (unaudited) continued

 

1.   Basis of preparation (continued)

 

Significant movements on the Consolidated Statement of Financial Position (continued)

 

Interest-bearing debt (continued)

Non-current interest-bearing debt (continued)

 

The increase in non-current interest-bearing debt from R19 259 million at 30 March 2013 to R20 787 million at 28 September 2013 is mainly as result of the weaker Rand against the Euro and US dollar on conversion of the fixed rate notes.

 

Derivative financial instruments and deferred option premium

The Group's net derivative financial instruments at 28 September 2013 were an asset of R1 800 million compared to an asset of R1 028 million at 30 March 2013. To increase the extent of hedge cover on the Euro denominated senior secured fixed rate notes, a series of derivative contracts were entered into in April 2013:

 

·       Cross currency swaps were entered into which, (i) protect against interest rate variability in future interest cash flows on liabilities, (ii) protect against variability in future interest cash flows that are subject to fluctuations based on foreign exchange rates, and (iii) hedge the repayment of €230 million in principal and interest on the notes to 15 March 2015. The hedges create an effective annual average fixed interest rate of 15.55% over the period of cover. The cross currency swaps have been designated as a cash flow hedge.

·      A cross currency swap was entered into which protects against variability in future interest cash flows that are subject to fluctuations based on foreign exchange rates. The notional value of the hedge is €70 million and provides cover on the coupon of the notes up to 15 March 2015. The hedge creates an effective annual average fixed interest rate of 10.2% over the period of cover. The cross currency swap has been designated as a cash flow hedge.

·      Foreign currency call options were entered into which hedge the repayment of €237 million in principal on the notes to 12 March 2015. The premiums payable on the foreign currency call options of R317 million have been deferred to 13 March 2015. These options have not been designated as cash flow hedges.

 

On 17 May 2013, Edcon Limited terminated cross currency swaps as a consequence of the repurchase of the senior secured floating rate notes with a nominal value of €387 million and received proceeds of R654 million which were applied to the redemption of the senior secured floating rate notes.

 

Going concern

 

The Consolidated Statement of Financial Position at 28 September 2013 reports share capital and premium of R2 153 million in equity attributable to shareholders and a shareholder's loan recognised in equity of R8 290 million offset by an accumulated retained loss of R13 308 million and a net credit of R94 million in other reserves, resulting in negative equity attributable to shareholders at 28 September 2013 of R2 771 million. After considering non-controlling interests of R92 million, total equity of the Group is a deficit of R2 679 million. The shareholder's loan of R9 133 million has been subordinated to the claims of all the creditors of the Group and the total negative equity and shareholder's loan is R1 836 million.

 

Notwithstanding the fact that the Group's liabilities exceed its assets in accordance with IFRS, the Consolidated Financial Statements have been prepared on the going-concern basis as the Group's assets at fair value (including unrecognised fair value of intangible assets) exceed the liabilities. The directors have every reason to believe that the Group has adequate resources to continue in operation for the foreseeable future and is considered both solvent and liquid.



Condensed notes to the Consolidated Financial Statements (unaudited) continued 



2013

26 weeks

28 September

Rm

Re-presented & restated

2012

26 weeks

29 September

Rm

2.

Segmental RESULTS



2.1

Revenues




Edgars

6 347

6 190


CNA

904

869


Discount

4 975

4 645


Edgars Zimbabwe1

277

253


Manufacturing

56

41


Credit and Financial Services

523

357


Group Services

9

3



13 091

12 358

2.2

Retail sales




Edgars

6 191

6 053


CNA

904

869


Discount

4 863

4 531


Edgars Zimbabwe1

264

243



12 222

11 696

2.3

Number of stores




Edgars

466

359


CNA

194

193


Discount

666

621


Edgars Zimbabwe1

42

36



1 368

1 209

2.4

Operating (loss)/profit from continuing operations




Edgars

803

1 110


CNA

6

11


Discount

520

397


Edgars Zimbabwe1

24

27


Manufacturing

-

1


Credit and Financial Services

481

337


Group Services2

(2 400)

(1 605)



(566)

278

 

1 Edgars Zimbabwe has been disclosed as a separate segment as the business activities are monitored separately.

2 Included in the allocation to the Group Services segment is corporate overheads, derivative gains or losses, foreign exchange gains or losses and amortisation of intangible assets and additional depreciation as a result of the private equity transaction in 2007 and transitional projects related expenditure.

 

 



 

Condensed notes to the Consolidated Financial Statements (unaudited) continued



2013

26 weeks

28 September

Rm

Re-presented & restated

2012

26 weeks

29 September

Rm

3.

REVENUES




Retail sales

12 222

11 696


Club fees

268

251


Finance charges on trade receivables

34

30


Revenue from joint operations

358

315


Finance income

9

25


Administration fee

144



Manufacturing sales to third parties

56

41



13 091

12 358

 

 

4.

 

 

DISCONTINUED OPERATIONS




 

On 6 June 2012, the Group announced the intended sale of its private label store card to Absa as well as the implementation of a long-term strategic agreement. On 30 April 2013 and 30 June 2013, all conditions required for the second and third closing of the South African trade accounts receivable were satisfied and a further R461 million and R114 million respectively, of the South African private label store card portfolio was sold to Absa.

 

The card portfolio in Lesotho, Namibia, Botswana and Swaziland is still expected to be sold as soon as Absa has completed compliance screening processes in respect of these accounts and the relevant regulatory approvals are obtained. These trade receivables have been classified as held-for-sale on the Consolidated Statement of Financial Position.

 

The results of the discontinued operation are as follows:

 

 



2013

13 weeks

28 September

Rm

Re-presented

2012

13 weeks

29 September

Rm

2013

26 weeks

28 September

Rm

Re-presented

2012

26 weeks

29 September

Rm








Total revenues

41

527

79

1 066








Income from credit

41

527

79

1 066


Expenses from credit

(40)

(316)

(93)

(760)


Trading (loss)/profit before taxation

1

211

(14)

306


Taxation

-

(59)

4

(86)


(Loss)/profit for the period

1

152

(10)

220







 

 

 



 

Condensed notes to the Consolidated Financial Statements (unaudited) continued

 

 

5.

 

 

 FINANCIAL INSTRUMENTS



 

The Group uses a three-level hierarchy to prioritise the inputs used in measuring fair value. Level 1 has the highest priority and level 3 has the lowest. Fair value is principally applied to financial assets and financial liabilities. These are measured at fair value on a recurring basis as of 28 September 2013, aggregated by the level in the fair value hierarchy within which these measurements fall.

 

The following table presents the Group's assets and liabilities that are measured at fair value at the period end:


Total - level 2

Rm



28 September 2013


Financial assets


Cross currency swaps

919

Foreign currency call options

997

Foreign currency forward contracts

21

Total financial assets

1 937



Financial liabilities


Interest rate swaps

39

Cross currency swaps

98

Total financial liabilities

137



30 March 2013


Financial assets


Cross currency swaps

813

Foreign currency call options

292

Foreign currency forward contracts

2

Total financial assets

1 107


Financial liabilities


Interest rate swaps

68

Foreign currency forward contracts

11

Total financial liabilities

79



29 September 2012


Financial assets


Cross currency swaps

1 311

Total financial assets

1 311


Financial liabilities


Cross currency swaps

1 045

Interest rate swaps

94

Foreign currency forward contracts

28

Total financial liabilities

1 167



 

The above are classified as level 2 inputs. No financial instruments at 28 September 2013, 30 March 2013 and 29 September 2012 have been classified as either level 1 or level 3 inputs in the hierarchy. The fair value under level 2 is based on observable inputs such as quoted prices for similar financial assets or financial liabilities, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the financial assets or financial liabilities.

 



 

Condensed notes to the Consolidated Financial Statements (unaudited) continued





5.

FINANCIAL INSTRUMENTS (continued)



 


All financial instruments have been recognised in the Consolidated Statement of Financial Position and there is no material difference between their fair values and carrying values, except for the notes issued.

 

The following methods and assumptions were used by the Group in establishing fair values:

 

Liquid resources, trade accounts receivable and loans: the carrying amounts reported in the statement of financial position approximate fair values due to the short period to maturity of these instruments.

 

Short-term interest-bearing debt: the fair values of the Group's loans are estimated using discounted cash flow analyses applying the RSA yield curve. The carrying amount of short-term borrowings approximates their fair value, due to the short period to maturity of these instruments.

 

Notes issued: the notes issued are fair valued based on the exchange rate ruling at the reporting date. The market values at 28 September 2013 was R15 174 million (30 March 2012 R18 066 million and 29 September 2012 R19 010 million) and have been determined based on the closing prices of the relevant stock exchange.

 

Derivative financial instruments: foreign currency forward exchange contracts are entered into to cover import orders, and fair values are determined using foreign exchange market rates at 28 September 2013. Foreign currency forward contracts, foreign currency call options, cross currency swaps and interest rate swaps are entered into to hedge interest rate and foreign exchange rate exposure of interest-bearing debt and fair values are determined using market related rates at 28 September 2013.

 

 

6.

EVENTS AFTER THE REPORTING DATE




 


 

During October 2013, a series of derivative contracts were entered into to extend, by a further twelve months, the maturity of hedge cover on the coupon payments relating to the senior secured fixed rate notes. Cross currency swaps were entered into, which protects against variability in future interest cash flows that are subject to fluctuations based on foreign exchange rates. The notional values for the hedges are €317 million and $250 million, and provide cover on the coupons of these notes up to 15 March 2015. The hedges create an effective annual average fixed interest rate of 10.2% over the period of cover. The cross currency swaps have been designated as cash flow hedges.

 

On 14 November 2013, Edcon Holdings Limited ("Edcon Holdings") closed the offering of €425 million of euro-denominated fixed rate senior notes due 2019 (the "2019 Notes").

 

Edcon Holdings also announced that €262.5 million, or 69.4%, of the senior floating rate notes due 15 June 2015 (the "2015 Notes") had been validly tendered for and that it would accept these for purchase as set forth in the tender offer memorandum dated 6 November 2013. The purchase price for the 2015 Notes was 100.25%.

 

Edcon Holdings further announced that it would redeem all outstanding 2015 Notes that were not validly tendered and accepted for purchase pursuant to the Tender Offer (the "2015 Notes Redemption"). The redemption date for the 2015 Notes Redemption is 14 December 2013. 

 

Edcon's repurchase of 2015 Notes tendered pursuant to the Tender Offer and the 2015 Notes Redemption were funded with the net proceeds from the offering of the 2019 Notes.

 

The Notes were offered only to qualified institutional buyers in accordance with Rule 144A under the Securities Act and outside the United States in accordance with Regulation S under the Securities Act.



 

Corporate Information

 

Edcon Holdings Limited

Incorporated in the Republic of South Africa

Registration number 2006/036903/06

 

Non-executive directors

DM Poler* (Chairman), EB Berk*, MS Levin*, ZB Ebrahim₸, MMV Valentiny**, DH Brown₸, TF Mosololi₸, LL von Zeuner₸

 

Executive directors

J Schreiber *** (Managing Director and Chief Executive Officer), MR Bower, Dr U Ferndale

 

*USA ** BELGIUM ***GERMANY

Independent non-executive director

 

Group Secretary

CM Vikisi

 

Registered office

Edgardale, Press Avenue

Crown Mines, Johannesburg, 2092

Telephone: +27 11 495-6000

Fax: +27 11 837-5019

Website: www.edcon.co.za

 

Postal address

PO Box 100, Crown Mines, 2025

 

Auditors

Ernst & Young Inc.

Wanderers Office Park

52 Corlett Drive, Illovo, 2196

Private Bag X14, Northlands, 2116

Telephone: +27 11 772-3000
Fax: +27 11 772-4000

 

 

Trustee, Transfer Agent and Principal Paying Agent

The Bank of New York Mellon Limited

1 Canada Square

London E14 5AL

United Kingdom

 

Listing Agent & Irish Paying Agent

The Bank of New York Mellon (Ireland) Limited

Hanover Building,

Windmill Lane, Dublin 2,

Republic of Ireland

Telephone: + 353 1 900 6991

 

JSE Debt Sponsor

Rand Merchant Bank (a division of SecondRand Bank Limited)

1 Merchant Place

Cnr Fredman & Rivonia Road

Sandton

Republic of South Africa

Telephone: +27 11 282-8118

 

 

 

 

This announcement has been issued through the Companies Announcement Service of

the Irish Stock Exchange.

 

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
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