Rex Trueform posts a leap in HEPS

The group said the substantial improvement in the first half of the year had been maintained during the second half resulting in record levels of turnover and profit for the year.

All segments of the group produced better results aggregating in an after-tax profit of R38.8 million which is an improvement of 154.6% on last year.

"Earnings were further boosted by the curtailment of provisions, higher interest earnings, profit on the realisation of our interest in the Australian associate and a lower taxation charge. The latter is the result of an increase in the deferred tax asset during the year, due to previously assessed losses which are now expected to be utilised in full in future years," the group said.

Clothing retailer Queenspark's turnover increased by 15% to R415.5 million and operating profit increased by 61.1% to R36.6 million notwithstanding the challenging trading conditions which prevailed for most of the year.

"Turnover was particularly pleasing in the second half where an increase of 17.2% was achieved over last year following the first-half improvement of 12.9%.

"Same-store growth in turnover was 8.2% with average product inflation at 8,4%.

"Seven new stores were opened during the year and there were no closures. The new stores added 1,970m² of trading space, an increase of 13%."

However, clothing manufacturing activities, which remain centred at the Atlantis factory, remained difficult and it was not expected that a profit would be generated in the coming year, the group said.

Looking ahead, Rex Trueform said that Queenspark's Spring/Summer range, presently in stores, had been well received by customers. The economic cycle would inevitably continue to slow down and the remainder of the current period was likely to be challenging with high interest rates, increased energy costs and food inflation having a dampening effect on consumer spending.

"We continue to invest selectively in new stores and take a conservative view of growth prospects for the 2009 financial year," the group added.

The board recommended a 40% increase in dividends from 25 cents to 35 cents per share for the year.

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