Definitions

Credit transactions – RCS Group
Comprises all loan advances and card purchases for the year under review

Credit transactions – retail
VAT inclusive credit retail turnover and income from sundry credit services

Current ratio
Current assets divided by current liabilities

Debt equity ratio
Interest-bearing debt reduced by preference share investment and cash, expressed as a percentage of capital and reserves

Doubtful debt provision as a % of debtors’ book
Provision for doubtful debts expressed as a percentage of gross receivables

Gross square metres
Comprises the total leased store area including stockrooms

Headline earnings
Net income attributable to ordinary shareholders adjusted for the effect, after tax, of exceptional items

Headline earnings per ordinary share
Headline earnings divided by the weighted average number of shares in issue for the year

LSM
Refers to the SAARF Universal Living Standards Measure which is a unique means of segmenting the South African market by dividing the population into 10 LSM groups, 1 (lowest) to 10 (highest).
Refer table below

Market capitalisation

The market price per share at the year-end multiplied by the number of ordinary shares in issue at the year-end

Net bad debt and provision movement
VAT-exclusive bad debts including provision movement, net of recoveries

Net bad debt write-off – retail
VAT-inclusive bad debts, net of recoveries and excluding movement in provision

Net bad debt write-off – RCS Group
VAT-exclusive bad debts, net of recoveries and excluding movement in provision

Net bad debt write-off as a % of credit transactions
Net bad debt write-off expressed as a percentage of credit transactions

Net bad debt write-off as a % of debtors’ book
Net bad debt write-off expressed as a percentage of gross receivables

Same store
Stores which have traded for the full current and previous financial years out of the same trading area

Tangible net asset value per ordinary share
Total net asset value, after minorities, excluding goodwill and intangible assets, divided by the net number of ordinary shares in issue at the year-end

Operating margin
Operating profit before finance charges expressed as a percentage of retail turnover

 

 
          Average
monthly
household
income
  Population % Population % Population % Population % Population (R)
SAARF Living Standards Measure (LSM)* 2007 2003 2005 2006 2007 2007
LSM 1 1 287 000 9,5 7,6 6,1 4,1 1 058
LSM 2 3 034 000 13,1 12,2 12,2 9,8 1 261
LSM 3 3 366 000 14,4 13,0 12,6 10,8 1 613
LSM 4 4 290 000 14,0 14,9 14,9 13,8 2 022
LSM 5 4 516 000 12,8 13,5 13,5 14,5 2 903
LSM 6 5 379 000 13,2 14,5 14,4 17,3 4 723
LSM 7 2 885 000 6,5 7,1 7,8 9,3 7 579
LSM 8 2 096 000 5,9 5,2 5,7 6,7 10 015
LSM 9 2 359 000 5,5 6,4 6,7 7,6 13 507
LSM 10 1 898 000 5,1 5,5 6,0 6,1 20 278
* Source: SAARF AMPS 2005 – 2007