FOS: FOS/FOSP - Foschini Limited - Unaudited interim condensed consolidated results
FOS/FOSP - Foschini Limited - Unaudited interim condensed consolidated results
Foschini Limited
Registration number: 1937/009504/06
Share codes: FOS-FOSP
ISIN codes: ZAE000031019 - ZAE000031027
The following are the Foschini group results for the half-year ended 30
September 2009.
This report has not been audited or reviewed by the company's auditors.
SALIENT FEATURES
*  Retail turnover up 7,9% to R4,1 billion
*  Diluted headline earnings per share up 1,8% to 231,9 cents
*  Interim dividend maintained at 118,0 cents per share
*  Sustained strong financial position
CONDENSED CONSOLIDATED INCOME STATEMENT
                         6 months ended                Year ended
                    30.09.2009   30.09.2008            31.03.2009
                    Unaudited    Unaudited   %         Audited
                    Rm           Rm          Change    Rm
Revenue (note 5)     5 145,1      4 663,0               9 988,9
                    =======      =======               =======
Retail turnover      4 072,7      3 773,3     7,9       8 089,6
Cost of turnover     (2 392,9)    (2 213,8)             (4 694,4)
                    -------      -------               -------
Gross profit         1 679,8      1 559,5               3 395,2
Interest received    721,9        602,6                 1 300,7
(note 6)
Dividends received   7,2          3,9                   19,1
Other revenue (note  343,3        283,2                 579,5
7)
Trading expenses     (1 862,0)    (1 612,7)             (3 269,0)
(note 8)
                    ---------    ---------             ---------
Operating profit     890,2        836,5       6,4       2 025,5
before finance
charges
Interest paid        (135,6)      (109,2)               (249,8)
Income from          -            0,2                   -
associate
                    ---------    ---------   ------    ---------
Profit before tax    754,6        727,5       3,7       1 775,7
Income tax expense   (236,9)      (232,3)               (564,4)
                    ---------    ---------   ------    ---------
Profit for the       517,7        495,2                 1 211,3
period
                    =========    =========             =========
Attributable to:
Equity holders of    483,7        469,5       3,0       1 145,8
Foschini Limited
Non-controlling      34,0         25,7                  65,5
interest
                    ---------    ---------             ---------
Profit for the       517,7        495,2                 1 211,3
period
                    =========    =========             =========
EARNINGS PER ORDINARY SHARE (CENTS)
Basic                     232,9     229,5        1,5     559,5
Headline                  232,9     229,5        1,5     559,5
Diluted (basic)           231,9     227,7        1,8     553,0
Diluted (headline)        231,9     227,7        1,8     553,0
Weighted average          207,7     204,6                204,8
ordinary shares in issue
(millions)
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
                             Sept. 2009    Sept. 2008   March 2009
                             Unaudited     Unaudited    Audited
                             Rm            Rm           Rm
ASSETS
Non-current assets
Property, plant and equipment 1 006,7       912,4        981,3
Goodwill and intangible       43,1          37,9         43,2
assets
Preference share investment   200,0         200,0        200,0
Investment in associates      -             4,4          -
Staff housing loans           1,1           1,2          1,2
Private label card            375,0         392,7        433,3
receivables
Loan receivables              969,4         673,3        886,4
Participation in export       88,4          89,8         87,8
partnerships
Deferred taxation asset       172,6         174,5        160,5
                             ----------    ----------   ----------
                             2 856,3       2 486,2      2 793,7
                             ----------    ----------   ----------
Current assets
Inventory (note 9)            1 460,9       1 282,8      1 524,9
Trade receivables - retail    2 923,0       2 467,5      2 746,3
Private label card            1 152,3       966,3        1 051,1
receivables
Other receivables and         170,6         176,7        143,1
prepayments
Loan receivables              83,1          164,6        101,8
Participation in export       4,2           7,1          6,9
partnerships
Cash                          215,8         68,7         296,2
                             ----------    ----------   ----------
                             6 009,9       5 133,7      5 870,3
                             ----------    ----------   ----------
Total assets                  8 866,2       7 619,9      8 664,0
                             ==========    ==========   ==========
EQUITY AND LIABILITIES
Equity attributable to equity 4 634,9       3 982,0      4 496,3
holders of Foschini Limited
Non-controlling interest      384,1         316,6        359,2
                             --------      --------     --------
Total equity                  5 019,0       4 298,6      4 855,5
                             --------      --------     --------
Non-current liabilities
Interest-bearing debt         960,3         1 280,3      937,4
Non-recourse debt             150,0         -            -
Non-controlling interest      664,7         668,5        783,2
loans
Operating lease liability     133,6         128,7        128,3
Deferred taxation liability   149,3         156,5        149,9
Post-retirement defined       84,1          84,1         84,1
benefit plan
                             ----------    ----------   ----------
                             2 142,0       2 318,1      2 082,9
                             ----------    ----------   ----------
Current liabilities
Interest-bearing debt         452,9         65,3         402,5
Trade and other payables      1 215,6       894,0        1 252,5
Taxation payable              36,7          43,9         70,6
                             ----------    ----------   ----------
                             1 705,2       1 003,2      1 725,6
                             ----------    ----------   ----------
Total liabilities             3 847,2       3 321,3      3 808,5
                             ----------    ----------   ----------
Total equity and liabilities  8 866,2       7 619,9      8 664,0
                             ==========    ==========   ==========
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
                                  6 months ended        Year ended
                             30.09.2009   30.09.2008    31.03.2009
                             Unaudited    Unaudited     Audited
                             Rm           Rm            Rm
Profit for the period         517,7        495,2         1 211,3
                             ----------   ----------    ----------
OTHER COMPREHENSIVE INCOME
Movement in effective portion (32,0)       3,0           (28,6)
of changes in fair value of
cash flow hedges
Deferred tax on movement in   9,0          (0,9)         9,1
effective portion of cash
flow hedges
Movement in insurance cell    3,5          0,5           -
reserves
                             ----------   ----------    ----------
Other comprehensive income    (19,5)       2,6           (19,5)
for the period
                             ----------   ----------    ----------
Total comprehensive income    498,2        497,8         1 191,8
for the period
                             ==========   ==========    ==========
Attributable to:
Equity holders of Foschini    464,2        472,1         1 126,3
Limited
Non-controlling interest      34,0         25,7          65,5
                             ----------   ----------    ----------
Total comprehensive income    498,2        497,8         1 191,8
for the period
                             ==========   ==========    ==========
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
                             Equity        Non-         Total
                             holders of    controlling  equity
                             Foschini      interest
                             Limited
                             Rm            Rm           Rm
Equity at 31 March 2008       3 845,2       290,9        4 136,1
Total comprehensive income    472,1         25,7         497,8
for the half-year
Share-based payments reserve  11,9          -            11,9
movements
Dividends paid                (347,8)       -            (347,8)
Proceeds on delivery of       0,6           -            0,6
shares by share trust
                             ----------    ----------   ----------
Equity at 30 September 2008   3 982,0       316,6        4 298,6
Total comprehensive income    654,2         39,8         694,0
for the half-year
Change in degree of control   -             3,4          3,4
Share-based payments reserve  13,8          -            13,8
movements
Dividends paid                (241,4)        (0,6)       (242,0)
Proceeds on delivery of       87,7          -            87,7
shares by share trust
                             ----------    ----------   ----------
Equity at 31 March 2009       4 496,3       359,2        4 855,5
Total comprehensive income    464,2         34,0         498,2
for the half-year
Share-based payments reserve  7,0           -            7,0
movements
Dividends paid                (352,6)       (9,1)        (361,7)
Proceeds on delivery of       20,0          -            20,0
shares by share trust
                             ----------    ----------   ----------
Equity at 30 September 2009   4 634,9       384,1        5 019,0
                             ==========    ==========   ==========
SUPPLEMENTARY INFORMATION
                                  6 months ended        Year ended
                             30.09.2009    30.09.2008   31.03.2009
                             Unaudited     Unaudited    Audited
DIVIDEND PER ORDINARY SHARE
(CENTS)
Interim                       118,0         118,0        118,0
Final                         -             -            170,0
                             ------        ------       ------
Total                         118,0         118,0        288,0
                             ------        ------       ------
DIVIDEND COVER                2,0           1,9          1,9
                             Sept. 2009    Sept. 2008   March 2009
                             Unaudited     Unaudited    Audited
Net ordinary shares in issue  208,5         204,6        207,3
(millions)
Weighted average ordinary     207,7         204,6        204,8
shares in issue (millions)
Tangible net asset value per  2 201,4       1 927,7      2 148,1
ordinary share (cents)
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
                                                           CONSOLIDATED CASH
FLOW STATEMENT
                             Sept. 2009    Sept. 2008   March 2009
                             Unaudited     Unaudited    Audited
                             Rm            Rm           Rm
Cash flows from operating
activities
Operating profit before       301,8         353,2        945,7
working capital changes (note
10)
(Increase) decrease in        (196,6)       94,8         (34,2)
working capital
                             ----------    ----------   ----------
Cash generated by operations  105,2         448,0        911,5
Increase in private label     (42,9)        (123,4)      (248,5)
card receivables
Increase in loan receivables  (64,3)        (121,7)      (272,0)
Interest received             721,9         602,6        1 300,7
Interest paid                 (135,6)       (109,2)      (249,8)
Taxation paid                 (265,4)       (253,3)      (551,3)
Dividends received            7,2           3,9          19,1
Dividends paid                (361,7)       (347,8)      (589,8)
                             ----------    ----------   ----------
Net cash (outflows) inflows   (35,6)        99,1         319,9
from operating activities
                             ----------    ----------   ----------
Cash flows from investing
activities
Purchase of property, plant   (175,1)       (177,9)      (370,6)
and equipment
Proceeds from sale of         3,3           2,4          3,7
property, plant and equipment
Acquisition of client list    -             (0,2)        (0,2)
Dividend from associate       -             0,8          -
Acquisition of                -             (175,0)      (175,0)
Massdiscounters credit
business
Decrease in participation in  2,1           3,6          5,8
export partnerships
Decrease in staff housing     0,1           0,1          0,1
loans
                             ----------    ----------   ----------
Net cash outflows from        (169,6)       (346,2)      (536,2)
investing activities
                             ----------    ----------   ----------
Cash flows from financing
activities
Proceeds on delivery of       20,0          0,6          88,3
shares by share trust
(Decrease) increase in non-   (118,5)       173,0        288,0
controlling interest loans
Increase in non-recourse debt 150,0         -            -
Increase (decrease) in        73,3          78,8         (33,3)
interest-bearing debt
                             ----------    ----------   ----------
Net cash inflows from         124,8         252,4        343,0
financing activities
                             ----------    ----------   ----------
Net (decrease) increase in    (80,4)        5,3          126,7
cash during the period
Cash at the beginning of the  296,2         63,4         169,5
period
                             ----------    ----------   ----------
Cash at the end of the period 215,8         68,7         296,2
                             ==========    ==========   ==========
NOTES
1. The unaudited interim condensed consolidated results for the half-year
ended 30 September 2009 have been prepared in accordance with the presentation
and disclosure requirements of IAS 34 Interim Financial Reporting, using the
group's accounting policies, that are in line with the measurement and
recognition principles of International Financial Reporting Standards (IFRS)
and have been consistently applied to prior periods except as described in
note 2.
2.  During the period, the group adopted IAS 1 Presentation of Financial
Statements, IFRS 8 Segmental Reporting and Circular 3/2009 Headline Earnings.
The principal effect of the changes required by IAS 1 were as follows:
- All non-owner changes in equity are now presented in "other comprehensive
income" in the Condensed Consolidated Statement of Comprehensive Income.
Previously these were presented in the Condensed Consolidated Statement of
Changes in Equity.
- The Condensed Consolidated Balance Sheet is now the Condensed Consolidated
Statement of Financial Position.
The adoption of IFRS 8 and Circular 3/2009 has had no significant effect on
these results.
3.  These financial statements incorporate the financial statements of the
company, all its subsidiaries and all entities over which it has operational
and financial control.
4. Included in share capital are 24,0(2008: 24,0) million shares which are
owned by a subsidiary of the company, and 9,1(2008: 11,9) million shares which
are owned by the share incentive trust. These have been eliminated on
consolidation.
                             Sept. 2009   Sept. 2008    March 2009
                             Unaudited    Unaudited     Audited
                             Rm           Rm            Rm
5. REVENUE
Retail turnover               4 072,7      3 773,3       8 089,6
Interest received (refer note 721,9        602,6         1 300,7
6)
Dividends received - retail   7,2          3,9           19,1
Other revenue (refer note 7)  343,3        283,2         579,5
                             -------      -------       -------
                             5 145,1      4 663,0       9 988,9
                             -------      -------       -------
6. INTEREST RECEIVED
Trade receivables - retail    309,7        245,0         526,1
Loan receivables              185,2        141,4         307,6
Private label card            219,7        210,1         449,2
receivables
Sundry - RCS Group            3,0          1,4           8,2
Sundry - retail               4,3          4,7           9,6
                             -------      -------       -------
                             721,9        602,6         1 300,7
                             -------      -------       -------
7.  OTHER REVENUE
Merchant's commission - RCS   14,6         19,6          36,7
Group
Club income - retail          102,9        88,2          169,6
Club income - RCS Group       2,8          2,9           6,0
Customer charges income -     9,8          8,9           18,9
retail
Customer charges income - RCS 88,3         63,4          136,2
Group
Insurance income - retail     62,8         46,1          99,5
Insurance income - RCS Group  41,8         37,7          75,3
Cellular income - one2one     16,6         12,2          29,8
airtime product
Sundry income - retail        3,7          4,2           7,5
                             -------      -------       -------
                             343,3        283,2         579,5
                             -------      -------       -------
8. TRADING EXPENSES
Depreciation:  land and       (3,1)        (3,1)         (6,1)
buildings
Depreciation:  shopfitting,   (125,0)      (106,8)       (223,8)
vehicles, computers and
furniture and fittings
Amortisation                  (0,2)        (0,8)         (1,2)
Employee costs: normal -      (572,2)      (495,8)       (1 069,7)
retail
Employee costs: normal - RCS  (59,8)       (50,5)        (110,6)
Group
Employee costs: bonuses and   (1,6)        (0,7)         (16,0)
restraint payments
Employee costs: share-based   (7,0)        (11,9)        (25,7)
payments
Occupancy costs: normal -     (381,8)      (310,9)       (668,1)
retail
Occupancy costs: normal - RCS (5,9)        (3,4)         (8,1)
Group
Occupancy costs: operating    (5,3)        -             0,4
lease liability adjustment
Net bad debt - retail         (172,9)      (113,8)       (261,5)
Net bad debt - RCS Group      (174,8)      (158,2)       (317,1)
Other operating costs         (352,4)      (356,8)       (561,5)
                             ----------   ----------    ----------
                             (1 862,0)    (1 612,7)     (3 269,0)
                             ----------   ----------    ----------
9. INVENTORY
Merchandise                   1 367,7      1 204,5       1 433,0
Raw materials                 58,9         47,3          55,2
Goods in transit              6,6          6,5           12,9
Shopfitting stock             23,3         21,8          18,1
Consumables                   4,4          2,7           5,7
                             ----------   ----------    ----------
                             1 460,9      1 282,8       1 524,9
                             ----------   ----------    ----------
10. OPERATING PROFIT BEFORE
WORKING CAPITAL CHANGES
Operating profit before       890,2        836,5         2 025,5
finance charges
Interest received             (721,9)      (602,6)       (1 300,7)
Dividends received            (7,2)        (3,9)         (19,1)
Non-cash items                140,7        123,2         240,0
                             ----------   ----------    ----------
Operating profit before       301,8        353,2         945,7
working capital changes
                             ----------   ----------    ----------
GROUP SEGMENTAL ANALYSIS
6 months ended 30.09.2009
                            RCS Group    Retail       Consolidated
                            Unaudited    Unaudited    Unaudited
                            Rm           Rm           Rm
External revenue*            555,5        4 589,6      5 145,1
External interest received   407,9        314,0        721,9
External interest paid       (58,9)       (76,7)       (135,6)
Depreciation and             (6,7)        (121,6)      (128,3)
amortisation
Profit for the period        72,7         445,0        517,7
                            --------     --------     --------
Profit before tax            106,0        648,6        754,6
Tax                          (33,3)       (203,6)      (236,9)
                            --------     --------     --------
* includes retail turnover, interest received and other income
Capital expenditure          2,7          172,4        175,1
Segment assets               2 790,7      6 075,5      8 866,2
Segment liabilities          1 922,8      1 924,4      3 847,2
GROUP SEGMENTAL ANALYSIS (cont.)
6 months ended 30.09.2008
                            RCS Group    Retail       Consolidated
                            Unaudited    Unaudited    Unaudited
                            Rm           Rm           Rm
External revenue*            476,5        4 186,5      4 663,0
External interest received   352,9        249,7        602,6
External interest paid       (38,9)       (70,3)       (109,2)
Depreciation and             (6,6)        (104,1)      (110,7)
amortisation
Profit for the period        69,5         425,7        495,2
                            --------     --------     --------
Profit before tax            97,4         630,1        727,5
Tax                          (27,9)       (204,4)      (232,3)
                            --------     --------     --------
* includes retail turnover, interest received and other income
Capital expenditure          7,8          170,1        177,9
Segment assets               2 348,4      5 271,5      7 619,9
Segment liabilities          1 619,0      1 702,3      3 321,3
GROUP SEGMENTAL ANALYSIS (cont.)
year ended 31.03.2009
                            RCS Group    Retail       Consolidated
                            Audited      Audited      Audited
                            Rm           Rm           Rm
External revenue*            1 020,1      8 968,8      9 988,9
External interest received   765,0        535,7        1 300,7
External interest paid       (91,3)       (158,5)      (249,8)
Depreciation and             (13,5)       (217,6)      (231,1)
amortisation
Profit for the period        142,7        1 068,6      1 211,3
                            --------     --------     --------
Profit before tax            202,5        1 573,2      1 775,7
Tax                          (59,8)       (504,6)      (564,4)
                            --------     --------     --------
* includes retail turnover, interest received and other income
Capital expenditure          19,1         351,5        370,6
Segment assets               2 655,5      6 008,5      8 664,0
Segment liabilities          1 868,2      1 940,3      3 808,5
COMMENT
GROUP OVERVIEW
In our latest annual report we anticipated that 2010 would be a challenging
year as no clear trend in trading patterns was discernible.
Although interest rates and inflation had continued to drop, we indicated that
because of the lag effect, we expected the economy to start improving but only
from the last quarter of our financial year.
Trading conditions in the first half of this year have been difficult and
volatile, displaying no consistent trading pattern.  Retail turnover increased
by 7,9% to R4,1 billion.  Gross margins for the period were the same as the
previous year.  Diluted headline earnings per share increased by 1,8% to 231,9
cents, whilst headline earnings per share increased by 1,5% to 232,9 cents.
The group's operating margin for the period reduced to 21,9% from 22,2%.
The interim dividend has been maintained at 118,0 cents per share.
In line with our strategy of investing for the longer term, the group
continued to grow trading space in certain of our formats that are under-
represented.  58 stores were opened during the period, with an increase in
trading area of 5,7% compared to the previous period.  Weighted average
trading space growth for the period was 2,4%.
MERCHANDISE CATEGORIES
Total sales have grown by 7,9% over the previous period with growths in the
various merchandise categories as follows:
Clothing        11,2%
Jewellery      (3,0%)
Cosmetics      16,9%
Homewares      18,9%
Cellphones     (13,4%)
In the current economic climate, the performance of clothing is satisfactory.
Whilst the growth in jewellery sales is negative, this performance is
acceptable when compared to the market both locally and overseas.  Cosmetics
has continued to perform well.  Homewares has performed adequately in a
difficult market.  The most disappointing merchandise category is cellphones
where we experienced supply issues and remain understocked.  With the
introduction of a second service provider this stock position should be
regularised by mid-November.  In addition the procedures relating to RICA
(Regulation of Interception of Communications Act) have been challenging to
implement.
TRADING DIVISIONS
Notwithstanding the difficult trading environment, all our trading divisions
remain in good shape and are well placed to maximise any upturn in the
economy.
Retail turnover and growths in the various trading divisions were as follows:
                   Number of    Retail        % change
                   stores       turnover Rm
@home               78           261,3         18,9
exact!              203          354,4         0,6
Foschini            445          1 629,0       11,0
Jewellery division  359          484,3         (5,0)
Markham             229          644,4         1,4
Sports division     283          699,3         18,7
                   --------     --------      --------
Total               1 597        4 072,7       7,9
                   --------     --------      --------
Same store turnover grew by 1,2%, whilst product inflation averaged
approximately 8% for the period.  Credit sales as a percentage of total sales
increased to 63,7% from 63,2%.
Our @home division continued with its expansion, opening seven stores whilst
closing one and is now trading out of 78 stores, 11 of which are the larger
@homelivingspace stores.  Turnover grew by 18,9% to R261,3 million.  Same
store turnover reduced by 5,3% in this competitive sector, partly due to
planned cannibalisation.
exact! grew its store base by five stores during the period to 203 stores,
growing its clothing turnover by 2,3% whilst its cellphone turnover reduced by
6,8%.  Clothing same store turnover growth was -4,3% whilst total same store
turnover growth was -5,7%.  This division is currently being repositioned to
provide more fashionable merchandise at more competitive prices.
The Foschini division comprising Foschini, donna-claire, fashionexpress and
Luella increased its store base by 13 stores to 445 stores during the period
with turnover of R1 629,0 million.   Clothing turnover grew by 13,3% with
clothing same store turnover growth of 7,9%. Cosmetics same store turnover
grew by 12,8%.  Same store turnover of cellphones reduced by 17,4% whilst
total same store turnover growth increased by 6,2%.  The repositioning and
turnaround strategy of Foschini stores itself, which represents 30% of our
group's retail turnover, is proving successful, resulting in far better
merchandise selection and store layout.  We expect this division to continue
improving its performance and to gain market share.
The jewellery division comprising American Swiss Jewellers, Sterns and Matrix
performed above expectation in the current difficult climate.  Its store base
increased during the period by nine stores to 359 stores with a turnover of
R484,3 million.  Jewellery merchandise turnover reduced by 3,0% whilst
jewellery same store turnover for the period reduced by 6,0%.  Cellphone same
store turnover reduced by 16,4%.  Total same store turnover reduced by 7,6%.
The Markham division increased its store base by six stores during the period
to 229 stores.  Clothing turnover for the period grew by 4,0% whilst cellphone
turnover reduced by 12,8%.  Clothing same store turnover was flat for the
period whilst cellphone same store turnover reduced by 16,6%.   Total same
store turnover reduced by 2,8%.  This division was our best performing
division last year and is coming off a high base.
The sports division, trading as Totalsports, sportscene and DueSouth traded
well in the current climate with turnover growth of 18,7% and same store
turnover growth of 7,8%.  Its store base was increased by 17 stores during the
period to 283 stores with turnover of R699,3 million.  This division is
actively focused on leveraging World Cup 2010 where we are the partner of
choice for several of the major brands.
FG Financial Services - our retail debtors' book, which amounts to R2,9
billion, increased by 6,4% during the period.  The consumer environment
remains tough and whilst the contractual performance of the early portion of
our book has improved over the previous period, we are experiencing difficulty
with collections of the back-end of the book, aggravated by the debt review
process.  Whilst we had indicated previously that the net bad debt as a
percentage of closing debtors' book would increase to approximately 9,5%, bad
debt has been worse than anticipated with this percentage increasing to 9,7%.
RCS GROUP
RCS Group provides a range of broader financial services to both customers of
the group, as well as to customers of retailers outside the group.  This group
consists of two separate business units namely transactional finance and fixed
term finance.  At present the transactional finance business comprises the RCS
general-purpose card and other private label card programmes.  The fixed term
finance business comprises RCS Personal loans.
The RCS Group which experienced a challenging year last year, performed far
better during this period with net profit before tax increasing by 8,8% to
R106,0 million.  The quality of new business written during the period has
improved.  Net bad debt as a percentage of the debtors' book reduced to 12,4%
from 12,5% last year.
This division, mainly as a result of the worldwide banking crisis, had to
restructure its activities to the level of its funding, as well as consider
new sources of funding other than from its shareholders.  The availability of
new funding is currently being addressed and the expectation is that new
funding will be in place during the second half of this financial year, which
will allow this division to continue with its growth potential.
Our group's shareholding in this division is 55% with the balance being held
by The Standard Bank of South Africa Limited.
PROSPECTS
Notwithstanding the difficult economic climate, in line with our strategy of
investing for long-term growth, we will continue to open new stores in certain
of our formats that are under-represented.  A further 40 stores are planned to
be opened in the second half.  Our supply chain initiative which is now well
under way will result, over a period of time, in much reduced product lead
times, stronger supplier relationships and increased stock turns, ensuring our
ability to be first to market with key products.
Retail turnover for the first five weeks of the second half remains difficult
with turnover growth of 4,8%.  The anticipated pick-up in the economy has not
yet started and we expect that the retail environment will continue to be
difficult for the remainder of the year.  The second half of the year is
heavily dependent on Christmas trading which will largely determine the
performance of the group in the second half and for the year as a whole.
PREFERENCE DIVIDEND ANNOUNCEMENT
Dividend no. 146 of 3,25% (6,5 cents per share) in respect of the six months
ending 31 March 2010 has been declared, payable on Monday, 29 March 2010 to
holders of 6,5% preference shares recorded in the books of the company at the
close of business on Friday, 26 March 2010.
The last day to trade ("cum" the dividend) in order to participate in the
dividend will be Thursday, 18 March 2010. Foschini Limited preference shares
will commence trading "ex" the dividend from the commencement of business on
Friday, 19 March 2010 and the record date, as indicated, will be Friday, 26
March 2010.
Preference shareholders should take note that share certificates may not be
dematerialised or rematerialised during the period Friday, 19 March 2010 to
Friday, 26 March 2010, both dates inclusive.
INTERIM ORDINARY DIVIDEND ANNOUNCEMENT
The directors have declared an interim ordinary dividend of 118,0 cents per
ordinary share payable on Monday, 11 January 2010 to ordinary shareholders
recorded in the books of the company at the close of business on Friday, 8
January 2010.
The last day to trade ("cum" the dividend) in order to participate in the
dividend will be Thursday, 31 December 2009.  Foschini Limited ordinary shares
will commence trading "ex" the dividend from the commencement of business on
Monday, 4 January 2010 and the record date, as indicated, will be Friday, 8
January 2010.
Ordinary shareholders should take note that share certificates may not be
dematerialised or rematerialised during the period Monday, 4 January 2010 to
Friday, 8 January 2010, both dates inclusive.
Certificated ordinary shareholders are reminded that all entitlements to
dividends with a value less than R5,00 per certificated shareholder will be
aggregated and the proceeds donated to a registered charity of the directors'
choice, in terms of the articles of association of the company.
-------------------------------------------------------------------
Signed on behalf of the Board
D M Nurek, Chairman                      A D Murray, CEO
Cape Town
5 November 2009
Non-executive directors:
D M Nurek (Chairman), Prof F Abrahams, S E Abrahams, W V Cuba, K N Dhlomo, M
Lewis, D M Polak, N V Simamane
Executive directors:
A D Murray, R Stein, P S Meiring
Company secretary:
D Sheard
Registered office:
Stanley Lewis Centre, 340 Voortrekker Road, Parow East, 7500
Transfer secretaries:
Computershare Investor Services (Pty) Ltd, Ground Floor, 70 Marshall Street,
Johannesburg, 2001
Sponsor:
UBS South Africa (Pty) Ltd
Visit our website at http://www.foschinigroup.com/
Date: 05/11/2009 14:00:01 Produced by the JSE SENS Department.
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   Source: JSE News Service (SENS)