reviewed preliminary group results for the year ended 31 August 2007
1.

KPMG Inc, the group’s independent auditors, has reviewed the preliminary financial statements contained in this preliminary report, and has expressed an unmodified conclusion on the preliminary financial statements. Their review report is available for inspection at the company’s registered office.

These preliminary financial statements have been prepared in accordance with the recognition and measurement requirements of IFRS and the disclosure requirements of IAS 34. Accounting policies are consistent with those of the prior years.

2. Discontinued operations
    Year to   Year to    
    31 August 2007   31 August 2006   %
  R’000 (reviewed)   (audited)   change
  Revenue from
 discontinued operations
1 192 255   1 122 999   6.2
  Turnover 1 153 507   1 077 682   7.0
  Cost of merchandise sold 828 873   780 035   6.3
  Gross profit 324 634   297 647   9.1
  Other income 38 748   45 317   (14.5)
  Expenses 323 421   309 059   4.6
     Depreciation and
   amortisation
16 758   19 770   (15.2)
     Occupancy costs 51 322   55 000   (6.7)
     Employment costs 148 939   136 761   8.9
     Other operating costs 106 402   97 528   9.1
  Loss on disposal of
 property, plant and
 equipment
(2 890)   (1 692)    
  Profit from discontinued
 operations
37 071   32 213   15.1
  Income tax expense 10 751   9 342   15.1
  Profit for the year from
 discontinued operations
26 320   22 871   15.1
 

During the year agreement was reached to sell the Discom business to Edcon Consolidated Stores Limited (“Edcon”).

Set out above are the results of the Discom business unit which, as a result of meeting the definition of a discontinued operation, are required to be separately disclosed from the results of the continuing operations.

3.  Analysis of non-current assets and related liabilities held for sale
    Year to   Year to
    31 August 2007   31 August 2006
  R’000 (reviewed)   (audited)
  Property, plant and equipment 46 250  
  Trademark 100 000  
  Inventory 211 267  
  Trade and other receivables 753  
    358 270  
  Liabilities classified as held for sale      
  Operating lease liabilities 6 307  
  Employee benefits 8 697  
    15 004  

 

The non-current assets and liabilities held for sale pertain to the Discom business, which has been transferred to Edcon subsequent to year end.