UNAUDITED INTERIM CONDENSED CONSOLIDATED RESULTS

for the half-year ended 30 September 2009

Notes

1.   The unaudited interim condensed consolidated results for the half-year ended 30 September 2009 have been prepared in accordance with the presentation and disclosure requirements of IAS 34 Interim Financial Reporting, using the group’s accounting policies, that are in line with the measurement and recognition principles of International Financial Reporting Standards (IFRS) and have been consistently applied to prior periods except as described in note 2.
2. During the period, the group adopted IAS 1 Presentation of Financial Statements, IFRS 8 Segmental Reporting and Circular 3/2009 Headline Earnings.
  The principal effect of the changes required by IAS 1 were as follows:
 
  • All non-owner changes in equity are now presented in “other comprehensive income” in the Condensed Consolidated Statement of Comprehensive Income. Previously these were presented in the Condensed Consolidated Statement of Changes in Equity.
  • The Condensed Consolidated Balance Sheet is now the Condensed Consolidated Statement of Financial Position.
  The adoption of IFRS 8 and Circular 3/2009 has had no significant effect on these results.
3. These financial statements incorporate the financial statements of the company, all its subsidiaries and all entities over which it has operational and financial control.
4. Included in share capital are 24,0 (2008: 24,0) million shares which are owned by a subsidiary of the company, and 9,1 (2008: 11,9) million shares which are owned by the share incentive trust. These have been eliminated on consolidation.
    Sept 2009 Sept 2008 Mar 2009
    Unaudited Unaudited Audited
    Rm Rm Rm
5. Revenue      
  Retail turnover 4 072,7 3 773,3 8 089,6
  Interest received (refer note 6) 721,9 602,6 1 300,7
  Dividends received – retail 7,2 3,9 19,1
  Other revenue (refer note 7) 343,3 283,2 579,5
    5 145,1 4 663,0 9 988,9
6. Interest received      
  Trade receivables – retail 309,7 245,0 526,1
  Loan receivables 185,2 141,4 307,6
  Private label card receivables 219,7 210,1 449,2
  Sundry – RCS Group 3,0 1,4 8,2
  Sundry – retail 4,3 4,7 9,6
    721,9 602,6 1 300,7
7. Other revenue      
  Merchants’ commission – RCS Group 14,6 19,6 36,7
  Club income – retail 102,9 88,2 169,6
  Club income – RCS Group 2,8 2,9 6,0
  Customer charges income – retail 9,8 8,9 18,9
  Customer charges income – RCS Group 88,3 63,4 136,2
  Insurance income – retail 62,8 46,1 99,5
  Insurance income – RCS Group 41,8 37,7 75,3
  Cellular income – one2one airtime product 16,6 12,2 29,8
  Sundry income – retail 3,7 4,2 7,5
    343,3 283,2 579,5
8. Trading expenses      
  Depreciation: land and buildings (3,1) (3,1) (6,1)
  Depreciation: shopfitting, vehicles, computers, and furniture and fittings (125,0) (106,8) (223,8)
  Amortisation (0,2) (0,8) (1,2)
  Employee costs: normal – retail (572,2) (495,8) (1 069,7)
  Employee costs: normal – RCS Group (59,8) (50,5) (110,6)
  Employee costs: bonuses and restraint payments (1,6) (0,7) (16,0)
  Employee costs: share-based payments (7,0) (11,9) (25,7)
  Occupancy costs: normal – retail (381,8) (310,9) (668,1)
  Occupancy costs: normal – RCS Group (5,9) (3,4) (8,1)
  Occupancy costs: operating lease liability adjustment (5,3) – 0,4
  Net bad debt – retail (172,9) (113,8) (261,5)
  Net bad debt – RCS Group (174,8) (158,2) (317,1)
  Other operating costs (352,4) (356,8) (561,5)
    (1 862,0) (1 612,7) (3 269,0)
9. Inventory      
  Merchandise 1 367,7 1 204,5 1 433,0
  Raw materials 58,9 47,3 55,2
  Goods in transit 6,6 6,5 12,9
  Shopfitting stock 23,3 21,8 18,1
  Consumables 4,4 2,7 5,7
    1 460,9 1 282,8 1 524,9
10. Operating profit before working capital changes      
  Operating profit before finance charges 890,2 836,5 2 025,5
  Interest received (721,9) (602,6) (1 300,7)
  Dividends received (7,2) (3,9) (19,1)
  Non-cash items 140,7 123,2 240,0
  Operating profit before working capital changes 301,8 353,2 945,7