KwaZulu-Natal Correspondent

DURBAN The Relyant Retail recapitalisation programme is still bearing fruit with the furniture and appliance group expecting to achieve " materially" higher headline earnings in the six months to December.

The news comes as Relyant secured a R700m turnaround into the black in the year to June.

Despite weathering a 3,8% dip in operations to R2,3bn, Relyant reported attributable earnings of R59,3m (R633,4m loss).

This translated into headline earnings a share of 8c against the 533c a share loss sustained the previous year.

The group, whose stable includes Furniture City, Beares, Geen & Richards, Lubners and Dial-aBed, underwent a R792m recapitalisation programme in July 2002.

The move, achieved via a R52m cash injection and a R740m rights issue, brought German-based Poco International Holdings on board with Peter Pohlmann joining Relyant as chairman.

The announcement yesterday that the group would report higher earnings signalled the progress Relyant has made since mid- 2002.

Last year Relyant CEO Alan Schlesinger said that a review following the restructuring and recapitalisation had identified an opportunity for Relyant to "materially enhance its long-term growth prospects" in a changing and competitive market.

In the six months to December 2002, Relyant experienced a 5,8% dip in sales to R1,23bn, as trading conditions in the retail and credit markets remained difficult.

The strengthening rand encouraged consumers to delay purchases in anticipation of lower prices, while the low sales levels in Botswana also affected group sales.

Attributable income rose to R83m (2001: R21m), translating into fully diluted headline earnings a share of 10c (35c).

Feb 11 2004 07:28:27:000AM Nicola Jenvey Business Day 1st Edition