August 20, 2004

By Dirk De Vynck

Cape Town - Truworths International, the listed clothing retailer, yesterday lived up to the standard set by its peers by posting solid year-end results to June and handing shareholders a handsome dividend.

Michael Mark, the chief executive, said all departments performed above budget, helping the company to lift turnover 17.9 percent to R2.72 billion.

Significant improvements in sales were noticed, particularly at Truworths Man, Daniel Hechter, LTD, Identity and Fine Jewellery.

Mark said there was a slight increase in credit sales' contribution to total sales, growing to 73 percent from 72 percent.

Trading profit leaped 47.1 percent to R597.6 million.

Net profit after tax was 32.6 percent up at R517.7 million. Headline earnings a share rose 27.9 percent to R1.10.

Headline earnings have shown compound growth of 35.3 percent in the last three years and 21.9 percent over the last six years.

Truworths declared a dividend of 48c, up 41.2 percent. Despite the generous dividend, there was no sign of a special dividend, which some thought a possibility seeing the group is sitting on cash of R454 million.

Evan Walker, retail analyst at Andisa Securities, said the non-payment of a special dividend was an indication the company was on the prowl for further acquisitions.

Mark said the company was looking at opportunities, but there was nothing specific on the cards.

Truworths closed 10c up at R10.50, while the general retailers index was 0.28 percent higher.