Page 158 - Profile's Stock Exchange Handbook 2020 Issue 4

JSE – LEW Profile’s Stock Exchange Handbook: 2020 – Issue 4
NUMBER OF EMPLOYEES: 8 248
Lewis Group Ltd. DIRECTORS: Abrahams Prof F (ind ne),
LEW Bodasing A (ne), MotsepeDR(ind ne),
ISIN: ZAE000058236 NjikizanaTH(ind ne), Saven H (Chair, ind ne),
SHORT: LEWIS Westcott D (ind ne), Enslin J (CEO),
CODE: LEW Bestbier J (CFO)
REG NO: 2004/009817/06 POPULAR BRAND NAMES: Lewis, Best Home
FOUNDED: 1934 and Electric, Beares, UFO, Monarch Insurance
LISTED: 2004
POSTAL ADDRESS: PO Box 43, Woodstock, Cape
NATURE OF BUSINESS: Scan the QR code to Town, 7915
Lewis Group is a leading credit visit our website EMAIL: graeme@tier1ir.co.za
WEBSITE: www.lewisgroup.co.za
retailer of household furniture, TELEPHONE: 021-460-4400
electrical appliances and home FAX: 021-460-4662
electronics and has beenlisted on the JSE Ltd. since 2004 where it COMPANY SECRETARY: I N T Makomba
is classified under the General Retailers sector. TRANSFER SECRETARY: Computershare
Through the Lewis, Best Home and Electric, Beares and UFO Investor Services (Pty) Ltd.
brands, the group has a branch network of 794 stores. This SPONSOR: UBS South Africa (Pty) Ltd.
AUDITORS: PwC Inc.
includes stores across all major metropolitan areas as well as a BANKERS:AbsaBankLtd.,FirstNationalBankofAfricaLtd.,InvestecBank
strong presence in rural South Africa, with 125 stores in the Ltd., Nedbank Ltd., Standard Bank Ltd.
neighbouring southern African countries of Botswana,
Eswatini, Lesotho and Namibia. CALENDAR Expected Status
Lewis is the country’s largest furniture chain and one of the Annual General Meeting 23 Oct 2020 Unconfirmed
most recognisable brands in furniture retailing, focused Next Interim Results 25 Nov 2020 Unconfirmed
primarily on the growing middle to lower income market in Next Final Results May 2021 Unconfirmed
thelivingstandardsmeasurement(“LSM”)4to7categories. CAPITAL STRUCTURE AUTHORISED ISSUED
ThegrouphasexpandeditsofferingbeyondtheLewischainby LEW Ords 1c ea 150 000 000 79 212 225
developing the Best Home and Electric brand selling home ap- DISTRIBUTIONS [ZARc]
pliancesaswellasfurniturerangesintheLSM4to7category. Ords 1c ea Ldt Pay Amt
In 2014 the group embarked on a strategy of diversifying Final No 32 15 Sep 20 21 Sep 20 65.00
across income groups and market segments by acquiring the Interim No 31 21 Jan 20 27 Jan 20 120.00
long-establishedBeares brand. The Beares brand is focusedon Final No 30 16 Jul 19 22 Jul 19 129.00
the middle-income market in the LSM 7 to 9 category. Interim No 29 22 Jan 19 28 Jan 19 105.00
In 2018, the group acquired UFO as a continuation of the LIQUIDITY: Sep20 Ave 577 569 shares p.w., R14.5m(37.9% p.a.)
group’s diversification strategy. UFO is an independent, cash GERE 40 Week MA LEWIS
furniture retailer with a retail footprint of 41 stores. UFO is re-
10169
cognised as a luxury brand with a value offering to the upper
consumer spectrum, namely LSM 9+. 8383
Monarch Insurance, the group’s financial services subsidiary,
6597
provides short-term insurance cover to customers purchasing
merchandise on credit. 4812
SECTOR: Consumer Srvcs—Retail—Gen Retailers—Home Improves
3026
MAJOR ORDINARY SHAREHOLDERS as at 31 Mar 2020
Government Employees Pension Fund 10.26%
Trimark Global Endeavour Fund 9.69% 2015 | 2016 | 2017 | 2018 | 2019 | 2020 1240
Trimark Global Balanced Fund 5.26%
FINANCIAL STATISTICS Recent Announcements
(R million) Mar 20 Mar 19 Mar 18 Mar 17 Mar 16 Lewis final results March 2020 - Tuesday, 25 August 2020: Revenue
Final Final Final(rst) Final(rst) Final for the year increased to R6.453 billion (2019: R6.137 billion),
Turnover 6 453 6 137 5 557 5 592 5 785 operating profit before investment income decreased to R253.7
Op Inc 254 443 379 564 815
NetIntPd(Rcvd) - 19 - 21 - 13 44 - 465 million (2019: R443 million), net profit attributable to ordinary
Tax 90 154 128 163 318 shareholders lowered to R182.4 million (2019: R309.5
Att Inc 182 310 264 358 962 million).Excludingaccountingadjustmentsasaconsequenceof
TotCompIncLoss 216 295 317 356 503 the Covid-19 lockdown, the net profit attributable to ordinary
Hline Erngs-CO 205 308 261 355 552 shareholders would have been R425.7 million
Fixed Ass 324 299 302 344 370 Outlook
Right of Use Assets 694 - - - -
Inv & Loans 228 276 471 456 432 While Covid-19 continues to have a significant impact on the
Def Tax Asset 166 195 11 49 86 business, the group’s strategy is unchanged and is being consis-
Trademarks&Software 121 122 118 66 61 tently applied through the crisis. Management remains flexible
Goodwill 188 188 188 6 - in the execution of the strategy and continually adapts and
Retirement Benefit Ass 107 79 91 55 63 adjusts its shorter-term operating plans in response to specific
Tot Curr Ass 5 561 4 630 5 736 6 494 8 393
Ord SH Int 4 710 4 876 5 449 5 440 5 449 Covid-19 related challenges and opportunities. The group’s
LT Liab 705 130 211 891 1 536 business model has proved resilient during the trading restric-
Tot Curr Liab 1 974 783 1 257 1 137 2 420 tions while the strength of the group’s balance sheet and cash
PER SHARE STATISTICS (cents per share) position ensured that management did not need to access any
EPS (ZARc) 232.10 377.50 306.80 402.90 1 082.64 external funding during the lockdown period. Trading has been
HEPS-C (ZARc) 260.20 376.20 302.60 399.50 621.70 robust following the reopening of all stores from 1 June 2020
DPS (ZARc) 185.00 234.00 200.00 200.00 517.00 when the country movedtolockdownlevel3. Merchandise sales
NAV PS (ZARc) 6 126.00 6 081.00 6 534.00 6 127.00 6 158.00 forJune increasedby 22.3% andJuly by 16.8%. The current sales
Price High 3 897 4 995 4 550 5 411 10 162
Price Low 1 520 2 540 2 250 2 795 3 900 momentum is being supported by pent up demand from savings
Price Prd End 1 782 3 110 4 220 4 150 4 700 accumulated during lockdown. Consumer spending is expected
RATIOS to contract further in a post Covid-19 recessionary environment
Ret on SH Fnd 3.87 6.35 4.85 6.58 17.64 while customers in the group’s lower to middle income target
Ret On Tot Ass 4.80 8.50 6.92 7.04 13.70 market are vulnerable to the rising levels of unemployment in
Oper Pft Mgn 3.93 7.22 6.83 10.09 14.10 the country due to the impact of Covid-19. The group will
D:E 0.35 0.03 0.14 0.21 0.39
Current Ratio 2.82 5.92 4.56 5.71 3.95 continue to invest for longer-term growth and plans to open 20
Div Cover 1.25 1.61 1.53 2.01 2.09 newstoresacrossitstradingbrandsinthe2021financialyear.
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