| 1. |
Auditor’s preliminary report
KPMG Inc, the group’s independent auditor, has reviewed the preliminary financial statements contained in this preliminary report, and has expressed an unmodified conclusion on the preliminary financial statements. Their review report is available for inspection at the company’s registered office.
These preliminary financial statements have been prepared in accordance with the recognition and measurement requirements of IFRS and the disclosure requirements of IAS 34. The accounting policies have been applied consistently with those used in the annual financial statements for the financial period ended August 2007 with the following exception: With the introduction of new accounting statement IFRS 7: “Financial Instruments: Disclosures” and the amendment to IAS 1: “Presentation of Financial Statements”. The application of these statements have had no significant effect on the group’s results.
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| 2. |
Discontinued operations |
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Year to |
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Year to |
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31 August |
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31 August |
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|
2008 |
|
2007 |
| |
R’000 |
(reviewed) |
|
(audited) |
| |
Revenue from discontinued operations |
52 142 |
|
1 192 255 |
| |
Turnover |
50 140 |
|
1 153 507 |
| |
Cost of merchandise sold |
(36 383) |
|
(828 873) |
| |
Gross profit |
13 757 |
|
324 634 |
| |
Other income |
1 905 |
|
38 748 |
| |
Expenses |
(8 385) |
|
(323 421) |
| |
Depreciation and amortisation |
(44) |
|
(16 758) |
| |
Occupancy costs |
3 909 |
|
(51 322) |
| |
Employment costs |
(7 351) |
|
(148 939) |
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Other operating costs |
(4 899) |
|
(106 402) |
| |
|
|
|
|
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Operating profit |
7 277 |
|
39 961 |
| |
Loss on disposal of property, plant and equipment |
(4) |
|
(2 890) |
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Profit on disposal of business |
23 649 |
|
– |
| |
Profit before financing costs |
30 922 |
|
37 071 |
| |
Finance income |
97 |
|
– |
| |
Profit before tax |
31 019 |
|
37 071 |
| |
Income tax |
2 519 |
|
(10 751) |
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Profit for the year from discontinued operations |
33 538 |
|
26 320 |
| |
In the prior year agreement was reached to sell the Discom business to Edgars Consolidated Stores Limited (“Edcon”).
Set out above are the results of the Discom business unit which, as a result of meeting the definition of a discontinued operation, are required to be separately disclosed from the results of the continuing operations.
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| 3. |
Analysis of assets and related liabilities held for sale |
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Year to |
|
Year to |
| |
|
31 August |
|
31 August |
| |
|
2008 |
|
2007 |
| |
R’000 |
(reviewed) |
|
(audited) |
| |
Property, plant and equipment |
– |
|
46 250 |
| |
Trademark |
– |
|
100 000 |
| |
Inventory |
– |
|
211 267 |
| |
Trade and other receivables |
– |
|
753 |
| |
|
– |
|
358 270 |
| |
Liabilities related to assets held for sale |
|
|
|
| |
Operating lease liabilities |
– |
|
6 307 |
| |
Employee benefits |
– |
|
8 697 |
| |
|
– |
|
15 004 |
| |
The assets and liabilities held for sale pertain to the Discom business which was transferred to Edcon during September 2007. |
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