Interim Results
September 29 2003 - 10:07AM
UK Regulatory
RNS Number:2899Q
Shoprite Group PLC
29 September 2003
SHOPRITE GROUP P.L.C.
INTERIM RESULTS FOR THE 28 WEEKS ENDED 12TH JULY 2003
I am pleased to report continuing progress during the 28 weeks ended 12 July
2003. Turnover, excluding concession sales, increased by 2.4% over the
comparable period last year, yielding an operating profit of #363,000 by
comparison to an operating loss of #28,000 for the same period last year.
Trading report
In my Chairman's Statement accompanying the 2002 Annual Report and Accounts, I
outlined the steps which your Board was taking to meet the challenge of a highly
competitive environment, by building customer loyalty through offering an
enhanced product range at attractive prices, supported by the ClubMANN Frequent
Shopper programme and the re-merchandising of a number of our stores.
Our growth in sales has been achieved against a background of zero grocery price
inflation. We continue to focus on delivering to our customers a combination of
everyday low prices, supported by a programme of attractive weekly offers.
Reflecting customer demand, we have increased our national brand presence across
the range.
Over the past six months, we have completed the re-merchandising of our Douglas
store with an increased focus on the fresh food offer. This has been well
received by our customers.
The development of our new 12,500sq ft store in Village Walk, Onchan, together
with up to 200 car parking spaces, is proceeding well and it is anticipated work
will start before the end of the year.
Other divisions
Trading at Whitestone Garage has been satisfactory, and we have now favourably
concluded our negotiations with Mercedes-Benz regarding future franchise
arrangements.
Rental income from Village Walk Shopping Centre and the Summerhill Village
complex has been in line with expectations.
Share listing
Shareholders will be aware that the shares of the Company are listed on the main
market of the London Stock Exchange. Your directors have concluded that, in the
light of the very low market liquidity in the Company's shares, the costs and
compliance aspects related to this listing outweigh the attributable benefits.
Accordingly, subject to finalisation of formal documentation, application will
be made to the UK Listing Authority for cancellation of the listing and to the
London Stock Exchange for admission to the AIM market. Further information will
be sent to shareholders in due course.
Outlook
We continue to encounter fiercely competitive market conditions, with further
uncertainty being created by the prospective takeover of Safeway plc. Our
strategy will continue to be based on offering our customers good quality fresh
foods and a wide range of branded grocery products at "everyday low prices".
Deryck Nicholson
29 September 2003
SHOPRITE GROUP P.L.C.
GROUP PROFIT AND LOSS ACCOUNT
FOR THE 28 WEEKS ENDED 12 JULY 2003
Unaudited Unaudited Audited
28 weeks 28 weeks 52 weeks
ended ended ended
12 July 2003 13 July 2002 28 December 2002
#'000 #'000 #'000
Turnover including concession sales 31,133 30,434 57,566
Concession sales (3,694) (3,627) (6,571)
Turnover excluding concession sales 27,439 26,807 50,995
Operating profit/(loss) 363 (28) 209
Net interest payable (262) (347) (607)
Profit/(loss) on ordinary activities before taxation 101 (375) (398)
Taxation - - -
Profit/(loss) on ordinary activities after taxation 101 (375) (398)
Dividends on ordinary shares - - -
Retained profit/(loss) 101 (375) (398)
Earnings/(loss) per share (basic and fully diluted) (note2) 0.13p (0.49)p (0.52)p
The information shown in respect of the 52 weeks ended 28 December 2002 is
extracted from the statutory accounts of Shoprite Group P.L.C. for the period
then ended which have been audited. The report of the auditors on those accounts
was unqualified.
SHOPRITE GROUP P.L.C.
GROUP BALANCE SHEET
AS AT 12 JULY 2003
Unaudited Unaudited Audited
as at as at as at
12 July 2003 13 July 2002 28 December 2002
#'000 #'000 #'000
Fixed assets
Tangible fixed assets 27,106 27,013 26,961
Investments 2 2 2
27,108 27,015 26,963
Current assets
Stocks 4,437 4,974 4,829
Debtors and prepayments 1,852 1,795 1,181
Cash at bank and in hand 37 36 54
Cash held in blocked deposit 150 150 150
6,476 6,955 6,214
Creditors: due within one year (8,549) (8,443) (7,705)
Net current liabilities (2,073) (1,488) (1,491)
Total assets less current liabilities 25,035 25,527 25,472
Creditors: due after one year (5,186) (6,120) (5,724)
Net assets 19,849 19,407 19,748
Capital and reserves
Share capital 3,809 3,809 3,809
Reserves 16,040 15,598 15,939
Equity shareholders' funds 19,849 19,407 19,748
SHOPRITE GROUP P.L.C.
GROUP CASH FLOW STATEMENT
FOR THE 28 WEEKS ENDED 12 JULY 2003
Unaudited Unaudited Audited
28 weeks 28 weeks 52 weeks
ended ended ended
12 July 2003 13 July 2002 28 December 2002
#'000 #'000 #'000
Cash flow from operating activities (75) 552 2,553
Returns on investments and servicing (262) (347) (572)
of finance
Taxation - - -
Capital expenditure and financial investment (638) (98) (331)
Financing (555) (677) (1,215)
(Decrease)/increase in cash in period (1,530) (570) 435
Reconciliation of net cash flow to movement in net debt #'000 #'000 #'000
(Decrease)/increase in cash in period (1,530) (570) 435
Cash outflow from decrease in debt and HP and lease 555 677 1,215
financing
Change in net debt resulting from cash flows (975) 107 1,650
Other non cash changes:
Net inception of HP and finance leases - - (5)
Movement in net debt in the period (975) 107 1,645
Net debt brought forward (6,950) (8,595) (8,595)
Net debt carried forward (7,925) (8,488) (6,950)
SHOPRITE GROUP P.L.C.
Reconciliation of operating profit/(loss) to operating cash Unaudited Unaudited Audited
flows
28 weeks 28 weeks 52 weeks
ended ended ended
12 July 2003 13 July 2002 28 December 2002
#'000 #'000 #'000
Operating profit/(loss) 363 (28) 209
Depreciation 610 612 1,123
Surplus on sale of fixed assets - - (2)
Decrease/(increase) in stock 392 (535) (390)
(Increase)/decrease in operating debtors (671) 294 908
(Decrease)/increase in operating creditors (769) 209 705
Net cash (outflow)/inflow from operating activities (75 552 2,553
NOTES
1.Basis of preparation
The summarised historical cost accounts, as modified by the revaluation of
certain tangible fixed assets, for the 28 weeks ended 12 July 2003 have been
prepared on a basis consistent with the group's full accounts for the 52 weeks
ended 28 December 2002.
2. Earnings/(loss) per share
The earnings per share is based on the profit after tax of #101,000 and an
average of 76,149,106 Ordinary Shares in issue for the period. Any dilution
which would arise on the exercise of share options has no effect on the basic
earnings per share figure.
A copy of the document will be submitted to the UK Listing Authority and will
shortly be available for inspection at the UK Listing Authority's Document
Viewing Facility which is situated at: Financial Services Authority, 25 The
North Colonnade, Canary Wharf, London E14 5HS. Copies of the document will also
be despatched to shareholders.
This information is provided by RNS
The company news service from the London Stock Exchange
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