Publisher of leading trade magazines for the Footwear, Leather-goods, Leather & PPE industries

S&V Weekly Newsletter Vol.5 No.46, November 18, 2019

This Newsletter is sponsored by SAFLIA

Please note: Click on any ad to go to the advertiser’s website

 

Good news last week

Tracking SA's recovery in the headlines:
The SARS Commissioner has made the commitment to restore the integrity of SARS and public trust in the institution. In accordance with this and following a disciplinary hearing chaired by a Senior Counsel from the Johannesburg Bar, Ms Refiloe Mokoena, the Chief Officer: Legal Counsel, has been found to have committed serious acts of misconduct. SARS has accepted the chairperson’s recommendation of immediate dismissal and her services have been terminated with effect from today, 15 November 2019.

 

Retail last week

Comment from 2 retailers on Saturday
"It's terrible. There's nothing happening. It's definitely down on last year. As retailers, we buy the correct merchandise and we market it, but the situation in the CBD is unforgivable - very dirty and not safe, and the government is doing nothing about it. These so-called xenophobic attacks have got nothing to do with foreigners - it's just looting. We report it to the authorities, but nothing happens. During the rioting, there wasn't a single policeman to be seen. I don't want to move. I've been here 42 years and I believe with just a little improvement in the environment we could trade well." - Abdul Bulbulia, member, Joey & Sam, Johannesburg, Gauteng, SA. Independent, 1 store, family fashion footwear.

"The last 2 years have been a bit tough. There's now quite a lot of cheap Chinese merchandise being sold in the Plaza, at lower prices than our stock. We're looking at adding some of those cheaper items to our range to allow us to compete. However, we have a regular clientele who want our better lines, and we are a destination store for them. We're surviving." - AJ Makan, director, Jogi & Co Outfitters, Johannesburg, Gauteng, SA. Independent, 1 store, men's outfitte

 

 

Government involvement in the industry

1. Leather workshop next week
Pretoria, Gauteng, SA – A 'South African leather industry value chain workshop', hosted by various government departments, will be held from November 25 to 27 at the CSIR offices.
       The programme will cover new technologies in the leather industry and research and training needs. It will be a follow on to the study done by Karl Flowers in 2017 on the need for a Leather Research Institute.
       For further information contact Zvikomborero Tangawamira at ZTangawamira@csir.co.za.

2. Masterplan accepted
Cape Town, W Cape, SA – The T-CTFL Masterplan was officially presented to President Cyril Ramaphosa at the presidential investment conference on November 6.

3. African Ministerial Conference on the Environment
Durban, KZN, SA – The 17th regular session of the African Ministerial Conference on the Environment (AMCEN) took place in Durban last week. One of the delegates was Newton Owino, director of Alisam Products Development & Design, in Kenya, which produces fish skin leather processed from Nile Perch using vegetable extracts.
       He brought with him 1 000 pieces of leather, 400 wallets, 100 pairs of sandals, and 500 pairs of fish eye earings (!), and he sold the lot. He said he used a plant extract to solidify the eyes.

 

SENS releases last week

Pepkor - Trading statement
Cape Town, W Cape, SA (November 14, 2019) – In a difficult trading environment the Group's major business segments have performed well, with Pepkor's defensive discount and value market positioning, disciplined focus on customer needs and low cost of doing business proving to be resilient.
       However, the performance of The Building Company continued to be adversely impacted by the contraction in the building materials market during the 2019 financial year. The Building Company represented 13% of Pepkor's revenue and 3% of operating profit before capital items in the 2018 financial year.
       Following the completion of impairment assessments by Pepkor and its auditors, an impairment of goodwill and intangible assets associated with The Building Company business, amounting to R1.2 billion, will be recognised in the 2019 financial year ("Impairment").
       Accordingly, shareholders are hereby advised that for the year ended 30 September 2019, Pepkor expects: *Earnings per share to be between 57.6 cents and 65.1 cents, which is between 22.1% and 32.1% lower than the 83.6 cents reported for the previous corresponding period; and *Headline earnings per share, which excludes the Impairment charge and other non- headline adjustments, will be between 91.0 cents and 99.4 cents, which is between 7.7% and 17.7% higher than the 84.5 cents reported for the previous corresponding period.
       Pepkor's results for the year ended 30 September 2019 are expected to be published on SENS on Monday, 25 November 2019. A live webcast of the results presentation will be broadcast at 13:00pm (SAST) on 25 November 2019.        A registration link for the webcast is available on the Company's website: www.pepkor.co.za
       The financial information on which this trading statement is based has not been reviewed or reported on by the Company's external auditors.

 

They Said It

"I have retired from swimming upstream even in a drought. As the saying goes, you will reap what you sow! You can contact Charl de Villiers of Mosstrich. He has taken over the swimming.:-)" - Piet Neethling, former chairman of the Game Abattoir & Meat Exporters of SA.

 

Death Notice

Cape Town, W Cape, SA – Howard Spiro, MD of Pienaar Bros in Cape Town, died on November 7, 3 weeks short of his 76th birthday, of leukemia. An obituary by Nicholas Bryant of ProFit Safety Footwear will follow in the upcoming editions of S&V Footwear and S&V Protect magazines.

 

S&V Directory - Order now

The directory is ready. On sale for R450. The online version is also available at R450 for 12 months' access.

 

2019 Trade Fairs Another essential service from S&V

Please note that we have put a list of the 2019 trade fairs and conferences on our website, linked to their websites: http://www.svmag.co.za/events

 

Exchange rates

Source: http://www.x-rates.com/calculator/

 
  Euro € GBP £ US $ Yuan Renminbi ¥
05/01/2019 R15.94 R17.79 R13.99 R2.03
12/01/2019 R15.86 R17.76 R13.83 R2.04
19/01/2019 R15.76 R17.85 R13.87 R2.04
26/01/2019 R15.52 R17.97 R13.60 R2.01
02/02/2019 R15.26 R17.42 R13.32 R1.97
09/02/2019 R15.46 R17.66 R13.65 R2.02
16/02/2019 R15.90 R18.15 R14.09 R2.08
23/02/2019 R15.90 R18.32 R14.04 R2.09
02/03/2019 R16.17 R18.77 R14.22 R2.12
09/03/2019 R16.22 R18.79 R14.43 R2.14
16/03/2019 R16.31 R19.15 R14.40 R2.14
25/03/2019 R16.31 R19.02 R14.42 R2.14
30/03/2019 R16.26 R18.90 R14.49 R2.15
06/04/2019 R15.80 R18.36 R14.09 R2.09
13/04/2019 R15.76 R18.24 R13.95 R2.08
20/04/2019 R15.86 R18.33 R14.10 R2.10
27/04/2019 R16.03 R18.56 R14.37 R2.13
04/05/2019 R16.08 R18.88 R14.34 R2.13
11/05/2019 R15.91 R18.40 R14.16 R2.07
18/05/2019 R16.09 R18.32 R14.41 R2.08
25/05/2019 R16.15 R18.32 R14.41 R2.08
01/06/2019 R16.28 R18.41 R14.57 R2.11
08/06/2019 R16.95 R19.03 R14.94 R2.16
15/06/2019 R16.61 R18.65 R14.81 R2.14
22/06/2019 R16.30 R18.24 R14.32 R2.08
29/06/2019 R16.01 R17.88 R14.08 R2.05
06/07/2019 R15.91 R17.74 R14.17 R2.05
13/07/2019 R15.75 R17.57 R13.97 R2.03
20/07/2019 R15.63 R17.42 R13.93 R2.02
27/07/2019 R15.91 R17.68 R14.29 R2.07
03/08/2019 R16.42 R17.97 R14.78 R2.13
10/08/2019 R17.08 R18.34 R15.25 R2.16
17/08/2019 R16.97 R18.58 R15.30 R2.17
26/08/2019 R17.00 R18.74 R15.27 R2.13
31/08/2019 R16.68 R18.46 R15.18 R2.12
07/09/2019 R16.32 R18.13 R14.79 R2.07
14/09/2019 R16.22 R18.16 R14.55 R2.05
21/09/2019 R16.44 R18.61 R14.92 R2.10
28/09/2019 R16.55 R18.61 R15.14 R2.12
05/10/2019 R16.52 R18.56 R15.04 R2.10
12/10/2019 R16.32 R18.68 R14.78 R2.08
19/10/2019 R16.52 R19.19 R14.78 R2.08
26/10/2019 R16.20 R18.74 R14.61 R2.06
04/11/2019 R16.54 R19.17 R14.82< R2.10
09/11/2019 R16.37 R18.98 R14.85< R2.12
16/11/2019 R16.26 R18.98 R14.71< R2.09
Note: For previous rates, see HERE

 

 

 

ABSA Agri Trends 08/11: Hides & skins prices

Hides: The current price is 7.5% lower than prices were a month ago and the current hide price is 64.5% lower than prices were a year ago. This week a slight uptick in local demand supported prices. Generally, the hide market sentiment is bearish, in line with the weak international hide market. Abundant supplies continue to weigh down the global and local market. Prices are not expected to rebound in the short to medium term. Sheep skins: The price for dorper skins remained unchanged at R23.33/skin and the price of merino skins increased by 8.5% to R41.43/skin this week. Compared to a year ago the price of dorper skins is 23.83% lower and the price of merino skins is 57.24% lower. - Wessel Lemmer, senior agricultural economist, Absa Group. NB* Hide prices are determined by the average of the RMAA (Red Meat Abattoir Association) and independent companies.

Hide & skin price progression
Date Hides/Kg Dorper/Skin Merino Skin
18/01/2019 3.94 33.75 81.67
25/01/2019 2.89 31.11 92.78
01/02/2019 2.83 30.63 87.50
05/02/2019 2.53    
13/02/2019 2.95    
15/02/2019 2.95 25.83 62.01
19/02/2019 2.01    
22/02/2019 2.00 31.88 49.21
26/02/2019 2.04    
01/03/2019 2.04 30.00 45.21
14/03/2019 1.63    
20/03/2019 1.60    
27/03/2019 1.67    
10/04/2019 1.68    
24/04/2019 1.78    
26/04/2019 1.49 32.50  
03/05/2019 1.82    
17/05/2019 2.05 34.00  
21/05/2019 1.72    
24/05/2019 1.72 36.67  
28/05/2019 1.74    
31/05/2019 1.74 32.50 48.75
10/06/2019 1.68 41.90  
14/06/2019   25.83 38.57
18/06/2019 1.68 25.83  
28/06/2019 1.66    
01/07/2019 1.67    
05/07/2019   25.00 38.57
12/07/2019 1.70 24.00 38.75
16/07/2019 1.71    
23/07/2019 1.71    
29/07/2019 1.59    
09/08/2019 1.58 28.75  
13/08/2019 1.57    
28/08/2019 1.52    
17/09/2019 1.78    
27/09/2019   25.00 35.50
08/10/2019 1.86    
16/10/2019 2.09    
18/10/2019   23.33 39.29
29/10/2019 1.65    
06/11/2019 1.72    
For previous prices, see HERE
 

  

18/11/1939: Frank Rosenberg, Leathermarc, Bloemfontein.
18/11/1954: Feroze Bhamjee, Piccadilly, Johannesburg.
19/11/1949: Kevin Cockcroft, Maloti Mountain Moccasins, Pietermaritzburg.
19/11/1958: Alan Fleetwood, Bolton Group, Cape Town.
19/11/1975: Kirsten Pillay, Isicebi Trading 1098 cc, East London.
19/11/19??: Johan Stumpf, left the industry, formerly KKI, Oudtshoorn.
20/11/1964: Jessica Han, Gutsy, Bloemfontein.
20/11/1987: Jonathan Colloty, Michelle Footwear, Durban.
20/11/19??: Vis Moodley, KwaZulu Shoe Co.
21/11/1950: JK Strydom, Werda Humansdorp Beleggings, Humansdorp.
23/11/1938: David Wilson, retired, formerly Barker Footwear production director, living in George.
23/11/1959: Bernice Kalakazinos, Toffee Clothing, St Francis Bay.
23/11/1970: Premilla Govender, Dynamic Engineering, Durban.
23/11/1966: Cornelio M Sunduza, Dadu Leathers Zimbabwe.
23/11/1938: Dave Wilson, retired, formerly Barker Footwear, Cape Town.
24/11/1955: Surie Mistry,  Super Star Fashions, Vereeniging.
 

 

In Memoriam this week

19/11/2014: Allan Bell (b. 09/07/1926), Bata Kenya and Futura Footwear, in the UK.
19/11/2018: Michael Hiss (b. 03/10/1948), Chanti Belt/Michael Hiss Agencies, Durban.
20/11/1997: Christian Larkins (b. 01/07/51), Interchem, Cape Town.
21/11/2009: Terry Batchelor (b. 30/10/1942), Intershu, Johannesburg.
21/11/2016: Ronnie Jones (b. 19/11/1949), Apeco, Johannesburg.
22/11/1992: Jimmy Shankland, Angels Shoes [closed], Cape Town.
22/11/1994: Chris Claassen, Futura Footwear, Pinetown.
23/11/2018: Peter Shiffer (b. 17/10/1949), Flexmor [closed], Cape Town.

Have you let us know about your birthday, or the birthdays of your colleagues? Our readers love this section, so please become part of it. This also applies to the In Memoriam section. Help us remember former colleagues.

 

Have a look at these links

We invite businesses to send us links to websites, Facebook pages and the like which they feel would be of interest to others. The links below are from our database:
BKB, Port Elizabeth, E Cape, SA. Co-op including 60 retail stores.
Blaauwberg Group, Cape Town, W Cape, SA. Meat group including cattle feedlot and 2 abattoirs.

 

Contact us

News & Classifieds: Tony Dickson, +27 (0)31 209 7505, tony@svmag.co.za

Next newsletter: November 25, 2019.

SAFLIA enquiries: Tel 0800SAFLIA * Email info@saflia.co.za * Website http://www.saflia.co.za

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