NOTES
| The reviewed preliminary condensed consolidated results of Foschini Limited for the year ended 31 March 2010 have been reviewed by the company’s auditors, KPMG Inc. Their unmodified review report is available at the company’s registered office. | ||||
| 1 | These results 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 the AC 500 standards as issued by the Accounting Policies Board or its successor, and have been consistently applied to prior periods except as described in note 2 and note 11. | |||
| 2 | During the year, 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:
The adoption of IFRS 8 and Circular 3/2009 has had no significant effect on these results. |
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| 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 (2009: 24,0) million shares which are owned by a subsidiary of the company and 7,5 (2009: 9,1) million shares which are owned by the share incentive trust.These have been eliminated on consolidation. | |||
| 2010 | 2009 | |||
| Reviewed | Audited | |||
| Rm | Rm | |||
| 5 | Revenue | |||
| Retail turnover | 8 605,2 | 8 089,6 | ||
| Interest received (refer note 6) | 1 443,7 | 1 300,7 | ||
| Dividends received – retail | 13,8 | 19,1 | ||
| Other revenue (refer note 7) | 717,6 | 579,5 | ||
| 10 780,3 | 9 988,9 | |||
| 6 | Interest received | |||
| Trade receivables – retail | 636,4 | 526,1 | ||
| Loan receivables – RCS Group | 355,4 | 307,6 | ||
| Private label card receivables – RCS Group | 440,3 | 449,2 | ||
| Sundry – RCS Group | 2,7 | 8,2 | ||
| Sundry – retail | 8,9 | 9,6 | ||
| 1 443,7 | 1 300,7 | |||
| 7 | Other revenue | |||
| Merchants’ commission – RCS Group | 30,2 | 36,7 | ||
| Club income – retail | 193,0 | 169,6 | ||
| Club income – RCS Group | 5,4 | 6,0 | ||
| Customer charges income – retail | 25,3 | 18,9 | ||
| Customer charges income – RCS Group | 192,3 | 136,2 | ||
| Insurance income – retail | 141,3 | 99,5 | ||
| Insurance income – RCS Group | 87,8 | 75,3 | ||
| Cellular income – one2one airtime product | 35,0 | 29,8 | ||
| Sundry income – retail | 7,3 | 7,5 | ||
| 717,6 | 579,5 | |||
| 8 | Trading expenses | |||
| Depreciation: land and buildings | (6,1) | (6,1) | ||
| Depreciation: shopfitting, vehicles, computers and furniture and fittings | (258,0) | (223,8) | ||
| Amortisation | (0,1) | (1,2) | ||
| Employee costs: normal – retail | (1 207,8) | (1 069,7) | ||
| Employee costs: normal – RCS Group | (132,4) | (110,6) | ||
| Employee costs: bonuses and restraint payments | (2,4) | (16,0) | ||
| Employee costs: share-based payments | (34,3) | (25,7) | ||
| Occupancy costs: normal – retail | (797,1) | (668,1) | ||
| Occupancy costs: normal – RCS Group | (10,7) | (8,1) | ||
| Occupancy costs: operating lease liability adjustment | (8,6) | 0,4 | ||
| Net bad debt – retail | (359,1) | (261,5) | ||
| Net bad debt – RCS Group | (352,4) | (317,1) | ||
| Other operating costs | (632,9) | (561,5) | ||
| (3 801,9) | (3 269,0) | |||
| 9 | Inventory | |||
| Merchandise | 1 355,0 | 1 433,0 | ||
| Raw materials | 59,2 | 55,2 | ||
| Goods in transit | 59,9 | 12,9 | ||
| Shopfitting stock | 14,8 | 18,1 | ||
| Consumables | 4,9 | 5,7 | ||
| 1 493,8 | 1 524,9 | |||
| 10 | Operating profit before working capital changes | |||
| Operating profit before finance charges | 1 972,6 | 2 025,5 | ||
| Interest received – sundry | (11,6) | (17,8) | ||
| Dividends received | (13,8) | (19,1) | ||
| Non-cash items | 290,3 | 240,0 | ||
| Operating profit before working capital changes | 2 237,5 | 2 228,6 | ||
| 11 | Comparative figures | |||
| In order to provide improved disclosure in the condensed consolidated
cash flow statement, certain reclassifications have been made. These changes
have no impact on overall equity, net assets or profitability. The RCS Group loan and private label card receivables are now disclosed as part of working capital changes as is required by IAS 7 Cash Flow Statements. The interest received on trade receivables – retail, as well as the RCS Group loan and private label card receivables, is now included, in operating profit before working capital changes as this is considered to be part of our revenue. The effect on the comparative cash flow statement is as follows: |
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| Movement in operating profit before working capital changes | 1 282,9 | |||
| Movement in working capital changes | (520,5) | |||
| Movement in cash generated from operations | 762,4 | |||
| Movement in RCS Group private label card receivables | 248,5 | |||
| Movement in RCS Group loan receivables | 272,0 | |||
| Movement in interest received | (1 282,9) | |||
| Movement in net cash inflow from operating activities | – | |||