Final Results
07 April 2003 - 10:02PM
UK Regulatory
RNS Number:7148J
Shoprite Group PLC
07 April 2003
SHOPRITE GROUP P.L.C. - Final Results
Chairman's Statement
Group turnover including concession sales for the period ending 28 December 2002
rose from #55.6m to #57.6m. Group Operating Profit amounted to #209,000 by
comparison to an Operating Loss of #1,123,000 for the previous period,
representing a significant improvement in trading performance.
Grocery retailing
In my Statement which accompanied the interim accounts for the 28 weeks ended 13
July 2002, I reported that a number of longer-term initiatives, targeted at
achieving real rates of growth in turnover and enhanced operating margins, were
beginning to bear fruit. In particular, we have devoted considerable resource
towards developing a sound long term relationship with our key suppliers, who
are now highly motivated to support the future growth of Shoprite, in many cases
offering exclusive product ranges to be sold through our stores. We have
concentrated our marketing strategy on supporting these key suppliers, whose
major brands are keenly promoted through all our stores at competitive pricing.
In addition, our "CBC" membership of NISA continues to yield margin improvement,
whilst at the same time enabling us to promote our "every day low prices"
strategy.
We have responded to the needs of our customers by widening our fresh food offer
and extending our chilled ranges, with particular emphasis on quality ready
meals and healthy eating. The progressive development of the Waitrose and
Iceland product ranges, which are exclusive to Shoprite within the Isle of Man,
have been a particular success and have enabled us to offer an attractive
product range to our customers. We have strengthened our commitment to the sale
of Manx products which has proved particularly successful.
We have also sought to further develop and diversify the retail environment
within our stores. During the year, a Lloyds Pharmacy was successfully
established in our Ramsey store and our St Paul's Ramsey store was returned to a
Shoprite Express format whilst still retaining previously successful elements of
the Deal Zone range. We have also incorporated a significant part of our Deal
Zone range within our enlarged Douglas store.
Motor retailing
As previously reported to shareholders, discussions have taken place between
Whitestone Garage and Mercedes Benz with regard to the continuity of the Isle of
Man franchise. Mercedes Benz have confirmed that they wish us to continue this
franchise and our discussions are ongoing. During the year, trading showed a
positive improvement in both sales and operating profits.
Property
Following the disposal of Howard Pearson House, income in this division has
declined. However, both the Village Walk Shopping Centre and the Summerhill
Village complex have continued to generate income in line with expectations.
Financing
Reflecting the significant improvement in operating profits, cash flow from
operating activities improved strongly during the period, enabling a reduction
in net debt of #1,645,000. Taking into account declines in prevailing interest
rates, net interest payable was reduced by 34%.
Outlook
Whilst the competitive environment in the Isle of Man remains challenging, our
strategy of building customer loyalty through offering an enhanced product range
at attractive prices, supported by the ClubMann frequent shopper programme, has
proved successful.
As a locally- owned and managed business we have daily contact with our
customers, with a view to providing them with an ever improving level of service
and a more exciting shopping experience at competitive prices.
We have recently re-merchandised a number of our stores, in particular our
flagship Douglas store, and this has met with a positive response from
customers. In addition, we are proceeding with our plans to extend our Peel
store, taking into account the large residential development programme scheduled
for that area, and have plans in hand to move to the next stage in the
development of a new 12,500 sq. ft store which will include 200 car parking
spaces, in the Village Walk, Onchan.
Whilst trading during the first three months of 2003 is in line with
expectations industry wide pricing pressure continues. Over the coming months,
we will seek to build on the enhanced performance achieved during 2002 and
remain committed to achieving positive returns for shareholders.
Deryck Nicholson
07 April 2003
Group profit and loss account
52 weeks ended 52 weeks ended
28 December 2002 29 December 2001
#000 #000
Turnover including concession sales 57,566 55,591
Concession sales (6,571) (6,387)
_______ _______
Turnover excluding concession sales 50,995 49,204
======= =======
Operating profit/(loss) 209 (1,123)
Profit on sale of investment property - 2,199
Net interest payable (607) (921)
_______ _______
(Loss)/profit on ordinary activities
before taxation (398) 155
Taxation - 78
_______ _______
(Loss)/profit on ordinary activities after
taxation (398) 233
Dividends on ordinary shares - -
_______ _______
Retained (loss)/profit transferred
(from)/to reserves (398) 233
======= =======
(Loss)/earnings per share
(basic and fully diluted) (0.52)p 0.31p
======= =======
Group balance sheet
As at 28 December 2002 29 December 2001
#000 #000 #000 #000
Fixed assets
Tangible fixed assets 19,674 20,658
Investment properties 5,628 5,234
Investment land held for
development 1,659 1,635
Other investments 2 2
_______ _______
26,963 27,529
Current assets
Stock 4,829 4,439
Debtors and other receivables 1,181 2,089
Cash at bank and in hand 54 37
Cash held in blocked deposit 150 150
_______ _______
6,214 6,715
Creditors: amounts falling due
within one year (7,705) (7,657)
_______ _______
Net current liabilities (1,491) (942)
_______ _______
Total assets less current
liabilities 25,472 26,587
Creditors: amounts falling due
after more than one year (5,724) (6,805)
_______ _______
Net assets 19,748 19,782
======= =======
Capital and reserves
Share capital 3,809 3,809
Reserves 15,939 15,973
_______ _______
Equity Shareholders' funds 19,748 19,782
======= =======
Group cash flow statement
52 weeks ended 52 weeks ended
28 December 2002 29 December 2001
#000 #000
Cash flow from operating
activities 2,553 (1,575)
Returns on investments
and servicing of finance (572) (1,008)
Taxation - -
Capital expenditure and
financial investment (331) 6,365
Financing (1,215) (3,704)
_______ _______
Increase in cash in period 435 78
======= =======
Reconciliation of net cash flow to movement in net debt
2002 2001
#000 #000 #000 #000
Increase in cash in period 435 78
Cash outflow from net decrease
in debt and HP and lease financing 1,215 3,704
_______ _______
Change in net debt resulting
from cash flows 1,650 3,782
Other non cash changes
Net inception of HP and finance
leases (5) (63)
_______ _______
Movement in net debt in the period 1,645 3,719
Net debt brought forward (8,595) (12,314)
_______ _______
Net debt carried forward (6,950) (8,595)
======= =======
Reconciliation of operating profit/(loss) to
operating cash flows
2002 2001
#000 #000
Operating profit/(loss) 209 (1,123)
Depreciation 1,123 1,113
Surplus on sale of fixed assets (2) (3)
(Increase)/decrease in stock (390) 361
Decrease/(increase) in operating debtors 908 (493)
Increase/(decrease) in operating creditors 705 (1,430)
_______ _______
Net cash inflow/(outflow) from operating activities 2,553 (1,575)
======= =======
NOTES
1.(Loss)/earnings per share is calculated on the loss after tax of #398,000
(2001 profit #233,000) and an average of 76,149,106 ordinary shares in issue
(2001 76,149,831).
2.The financial information set out in this statement does not constitute the
company's statutory accounts for the 52 weeks ended 28 December 2002 and 52
weeks ended 29 December 2001. The auditors have reported on both the 2002 and
2001 accounts; their reports were unqualified.
3. Copies of the Annual Report will be sent to shareholders and to the UK
Listing Authority shortly and will be available for inspection at the Company's
registered office - Centre House, Little Switzerland, Douglas, Isle of Man IM2
4RE.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR UBVAROORSRAR