REVIEWED PRELIMINARY GROUP RESULTS for the year ended 31 August 2008
1. Auditor’s preliminary report
KPMG Inc, the group’s independent auditor, 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. The accounting policies have been applied consistently with those used in the annual financial statements for the financial period ended August 2007 with the following exception: With the introduction of new accounting statement IFRS 7: “Financial Instruments: Disclosures” and the amendment to IAS 1: “Presentation of Financial Statements”. The application of these statements have had no significant effect on the group’s results.

2. Discontinued operations      
    Year to   Year to
    31 August   31 August
    2008   2007
  R’000 (reviewed)   (audited)
  Revenue from discontinued operations 52 142   1 192 255
  Turnover 50 140   1 153 507
  Cost of merchandise sold (36 383)   (828 873)
  Gross profit 13 757   324 634
  Other income 1 905   38 748
  Expenses (8 385)   (323 421)
     Depreciation and amortisation (44)   (16 758)
     Occupancy costs 3 909   (51 322)
     Employment costs (7 351)   (148 939)
     Other operating costs (4 899)   (106 402)
         
  Operating profit 7 277   39 961
  Loss on disposal of property, plant and equipment (4)   (2 890)
  Profit on disposal of business 23 649  
  Profit before financing costs 30 922   37 071
  Finance income 97  
  Profit before tax 31 019   37 071
  Income tax 2 519   (10 751)
  Profit for the year from discontinued operations 33 538   26 320
 

In the prior year agreement was reached to sell the Discom business to Edgars 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 assets and related liabilities held for sale
    Year to   Year to
    31 August   31 August
    2008   2007
  R’000 (reviewed)   (audited)
  Property, plant and equipment   46 250
  Trademark   100 000
  Inventory   211 267
  Trade and other receivables   753
      358 270
  Liabilities related to assets held for sale      
  Operating lease liabilities   6 307
  Employee benefits   8 697
      15 004
  The assets and liabilities held for sale pertain to the Discom business which was transferred to Edcon during September 2007.