Preliminary Results
29 March 2005 - 10:43PM
UK Regulatory
RNS Number:2691K
Shoprite Group PLC
29 March 2005
PRELIMINARY ANNOUNCEMENT
FOR THE YEAR ENDED 1 JANUARY 2005
Chairman's Statement
Group turnover, including concession sales, for the period ended 1 January 2005
amounted to #54.9m, yielding an operating profit of #292,000 by comparison to an
operating profit of #496,000 for the same period last year.
Grocery retailing
As indicated in my Statement which accompanied the interim results for the 28
weeks ended 17 July 2004, grocery market conditions remain fiercely competitive.
Against this backdrop, we have continued to develop and enhance our strategy
of offering our customers good quality fresh foods, together with a wide range
of branded grocery products, at "everyday low prices". However, continuing
price deflation in many product areas adversely impacted turnover.
The development of our new store at Village Walk, Onchan, was opened on 11
November 2004, and replaced our existing store in Onchan with a brand new
purpose built state of the art retail environment. Initial customer response
has been very enthusiastic.
As formally announced today, the Group, through a wholly owned subsidiary, has
signed an agreement with Wm Morrison Supermarkets plc to purchase, for a
consideration of #3,000,000 the leasehold interest of the Safeway Store at
Chester Street, Douglas. This transaction, which is subject to the transfer of
the alcohol licence and Landlord's approval, will be financed out of agreed bank
facilities, and is expected to be completed during April 2005. This acquisition
will provide the Group with significant additional retail space in the centre of
Douglas, the Island's capital and represents an exciting opportunity to increase
our market share.
Motor retailing
Motor retailing has performed well and has provided an important contribution to
Group profits.
Mercedes Benz has announced a progressive model development programme, which
should provide enhanced sales opportunities over the course of the next year.
Property
The performance of our property division has also been encouraging, with high
occupancy levels within the Village Walk Shopping Centre and the Summerhill
Village Complex generating enhanced profitability by comparison to the previous
period.
Financing
Net debt has increased during the period, reflecting our significant investment
in the construction and fitting out of our new store in the Village Walk,
Onchan.
Outlook
We continue to experience strong pressure on margins within a very competitive
retail environment. However, the Board believe that our strategy of continuing
to offer our customer competitive pricing on a wide range of branded grocery
products, supported by the continued development and upgrading of our retail
infrastructure, will maintain and enhance our market position as the leading
food retailer in the Isle of Man.
Deryck Nicholson
Chairman
29 March 2005
Group profit and loss account (unaudited)
52 weeks ended 53 weeks ended
1 Januay 2005 3 January 2004
#000 #000
Turnover including concession sales 54,937 54,961
Concession sales (7,192) (6,959)
Turnover excluding concession sales 47,745 48,002
Operating profit 292 496
Net interest payable (546) (492)
(Loss)/profit on ordinary activities before taxation (254) 4
Taxation - -
(Loss)/profit on ordinary activities after taxation (254) 4
Dividend on ordinary shares - -
Retained (loss)/profit transferred (from)/to reserves (254) 4
(Loss)/earnings per share (basic and fully diluted) (0.334)p 0.005p
Group balance sheet (unaudited)
As at 1 January 2005 3 January 2004
#000 #000 #000 #000
Fixed Assets
Tangible fixed assets 20,328 19,859
Investment properties 6,722 5,338
Investment land held for development 1,850 1,766
Other investments 2 2
28,902 26,965
Current assets
Stocks 5,311 4,499
Debtors and other receivables 1,551 1,666
Cash at bank and in hand 49 37
Cash held in blocked deposit 150 150
7,061 6,352
Creditors: amounts falling due within one year (8,336) (8,335)
Net current liabilities (1,275) (1,983)
Total assets less current liabilities 27,627 24,982
Creditors: amounts falling due after more than
one year (7,174) (5,013)
Net assets 20,453 19,969
Capital and reserves
Share capital 3,809 3,809
Reserves 16,644 16,160
Equity shareholders' funds 20,453 19,969
Group cash flow statement (unaudited)
52 weeks ended 53 weeks ended
1 January 2005 3 January 2004
#000 #000
Cash inflow from operating activities 931 1,192
Returns on investments and servicing of finance (504) (513)
Taxation - -
Capital expenditure and financial investment (1,887) (558)
Financing 2,448 (1,101)
Increase/(decrease) in cash in period 988 (980)
Reconciliation of net cash flow to movement in net debt
2004 2003
#000 #000 #000 #000
Increase/(decrease) in cash in period 988 (980)
Cash (inflow)/outflow from net (increase)/decrease in debt
and HP and lease financing (2,448) 1,101
Change in net debt resulting from cash flows (1,460) 121
Other non cash changes
Net inception of HP and finance leases (387) (384)
Movement in net debt in the period (1,847) (263)
Net debt brought forward (7,213) (6,950)
Net debt carried forward (9,060) (7,213)
Reconciliation of operating profit
to operating cash flows
2004 2003
#000 #000
Operating profit 292 496
Depreciation 1,088 1,158
Surplus on sale of fixed assets (23) (1)
(Increase)/decrease in stock (812) 330
Decrease/(increase) in operating debtors 115 (485)
Increase/(decrease) in operating creditors 271 (306)
Net cash inflow from operating activities 931 1,192
NOTES
1. (Loss)/earnings per share is calculated on the loss after tax of #254,000
(2003 profit #4,000) and an average of 76,149,106 ordinary shares in issue
(2003 76,149,106).
2. The financial information set out in this statement does not constitute the
company's statutory accounts for the 52 weeks ended 1 January 2005 and 53
weeks ended 3 January 2004. The auditors have reported on the 2003
accounts; their report was unqualified. The statutory accounts for the 52
weeks ended 1 January 2005 will be finalised on the basis of the financial
information presented by the directors in this preliminary announcement.
3. A copy of the full report and accounts will be submitted to the AIM
Team and copies will also be despatched to shareholders.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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