Woolworths Holdings Limited
notes audited group results for year ended 30 June 2004

  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 2003 financial statements, except as follows:

    Following the recommendation issued by the JSE Securities Exchange, the Woolworths Holdings Share Trust was consolidated. As a result, a cumulative adjustment to increase the opening retained profit in the prior year of R1.2m was required. There was no effect on the income statement.

    The format of the cash flow statement has been revised to include cash applied to financial services assets as a separate line item under operating activities. The cash flow from the Woolworths card debtors was previously included in working capital movements. Cash flows from loans to customers and credit card receivables have been reclassified from investing to operating activities.

  2. Exceptional items
    2004 2003
    Goodwill amortisation 10.1 10.0
    Provision for onerous lease commitments 6.3 13.7
    Reversal of provision for loss on discontinuance -(1.5)
    16.4 22.2

    There is no tax effect arising from the exceptional items, other than in respect of the onerous lease provision, of R1.9m (2003: R4.1m).

  3. The effective tax rate of 28.7% (2003: 29.2%) is mainly due to the utilisation of tax losses in subsidiaries.

  4. The difference between earnings per share and diluted earnings per share results from outstanding options.

  5. Distributions comprise the interim distribution of 13.0c per share, paid on 8 March 2004 and the final distribution from share premium of 25.5c per share declared on 18 August 2004.

  6. Gross capital expenditure on property, plant and equipment
    2004 2003
    Woolworths392.5 377.9
    Country Road33.9 36.2
    426.4 414.1

  7. Unutilised banking facilities amount to R1 098.7m (2003: R1 266.8m). In terms of the Articles of Association, there is no limit on the group's authority to raise interest bearing debt.

  8. The group's annual financial statements have been audited by the group's joint auditors Ernst & Young and SAB & T Inc and a copy of their unqualified report is available for inspection at the company's registered office.