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1. The financial statements
comply with South African Statements of Generally Accepted Accounting
Practice. Accounting policies used are consistent with those applicable
for the June 2001 financial statements, except as follows: The Group's
policy for providing for post-retirement medical-aid benefits of retired
employees has changed following the introduction of AC116, Employee Benefits.
Consequently the actuarial funding obligation is calculated annually.
Actuarial gains and losses are recognised in the income statement, subject
to the corridor approach. This change has the effect of decreasing reported
profit after tax by R11.7m (2001: R7.5m).
Following the introduction of AC135, Investment properties, depreciation
is now provided on owner-occupied property in accordance with AC123, Property,
Plant and Equipment. This change has the effect of decreasing reported
profit after tax by R7.6m (2001: R8.2m).
Comparative figures have been restated. In addition certain other comparative
figures have been changed to bring them in line with classifications used
in the current period.
| 2. |
Exceptional items |
 |
|
2002 |
|
|
|
|
|
|
|
Continuing |
Discontinued |
2001 |
|
|
|
Total |
operations |
operations |
Total |
|
|
 |
|
|
|
|
|
| Loss on disposal of listed investment |
|
4.8 |
4.8 |
– |
– |
|
| Impairment of property |
|
17.2 |
17.2 |
– |
– |
|
| Goodwill amortisation |
|
12.1 |
12.1 |
– |
– |
|
| Provision for onerous lease commitment |
|
7.4 |
7.4 |
– |
– |
|
| Loss on discontinuance |
|
131.6 |
– |
131.6 |
– |
|
| Restructuring costs |
|
8.0 |
– |
8.0 |
– |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
181.1 |
41.5 |
139.6 |
– |
|
|
|
|
|
|
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On 17 January 2002, Country Road's US operation was placed
into Chapter 7 liquidation.
The liquidation is ongoing, and the directors do not believe that any
further liabilities will arise.
The loss on discontinuance has been increased by R11.3m from the amount
disclosed in the Interim Report as at 31 December 2001.
This was to adjust for the Foreign Currency Translation Reserve created
when Country Road was acquired by Woolworths in February 1998.
There is no tax effect from the exceptional items, other than R2.2m in
respect of the onerous lease provision.
3. The effective tax rate
of 34.0% on continuing operations is due to the incidence of STC, the
effect of the losses of certain subsidiaries, tax on foreign dividends
and the exceptional items.
4. The difference between
earnings per share and diluted earnings per share results from outstanding
options in terms of the share purchase scheme.
5. Dividends comprise the
interim dividend of 7.5c per share, paid on 30 April 2002 and the final
dividend of 12.5c per share declared on 21 August 2002.
6. Investments include listed
securities with a carrying value of R11.3m (2001: R20.0m) and a market
value of R13.4m (2001 : R13.9m).
7. Contingent liabilities
at the end of the year amount to Rnil (2001: R3.0m).
8. Unutilised banking facilities
amount to R1 549.3m (2001: R1 031.9m). In terms of the Articles of Association,
the borrowing powers of the group are unlimited.
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