S&V Weekly Newsletter Vol.7 No.20, May 17 2021
This Newsletter is sponsored by SAFLIA
We apologise for the lateness of this newsletter but publication was delayed due to load shedding issues.
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Steinhoff 'will fight Tekkie Town founders' liquidation attempt', but they say it's necessary to reveal true extent of fraud
Cape Town, W. Cape, SA – Steinhoff International Holdings N.V. (SIHNV) last Thursday said it would " vigorously defend any attempt to disrupt the proposed global settlement" it has made to all its creditors after the former owners of Tekkie Town on Wednesday filed an application in the Western Cape Division of the High Court of SA to have SIHNV provisionally liquidated.
It said the Amsterdam District Court in the Netherlands, where SIHNV is registered (with tax residency in South Africa), on February 15 approved its application to seek a Dutch 'suspension of payments' procedure "to implement its proposal to settle the multi-jurisdictional legacy claims against it".
"The global settlement proposal currently under consideration by the Dutch court incorporates provisions to address the disputed claims of the Tekkie Town Claimants against the Company which relate to transactions between the Tekkie Town Claimants and the Company in 2016."
Former Tekkie Town director Bernard Mostert, now a director of 2 of the 5 investment holding companies which brought the application to have SIHNV liquidated, on Friday told S&V: "We believe that this step creates an opportunity for all those who have suffered at the hands of Steinhoff fraud to fully understand the scope of the crime and to get a fair and equitable opportunity to recover defrauded assets. We do not feel comfortable to participate in a settlement until such time as the scope of the fraud has been fully revealed through an independent, government sanctioned process."
The applicants requested the urgent application be heard on May 24.
In their papers, they said that although SIHNV was registered in the Netherlands, "its operations and corporate actions are conducted and controlled from its principal place of business in Stellenbosch".
It said SIHNV was unable to pay its debts, its liabilities exceeded its assets "by such a margin that it has lost more than 75% of its share capital", and "that it is just and equitable that it be wound up as contemplated...in the Companies Act".
SIHNV bought Tekkie Town in August 2016 for R3.25 billion, of which the applicants were to receive R1.85 billion, in the form of SIHNV shares, which they were not allowed to sell for 3 years. SIHNV's "accounting irregularities" surfaced in December 2017, and its share value collapsed "by about 90%".
The applicants are demanding the return of Tekkie Town - or payment in full.
Botswana
JB Sports: Better, but not as good as it should be
Gaborone – Sales are improving, "but we're not growing as quickly as we'd like to", JB Sports merchandise manager Tinu Jacob said.
"A major reason is that tourism is still closed. In places like Maun, it's not just that there aren't tourists buying, but the local people who normally make a living from tourism aren't spending either."
Botswana's Covid retail regulations are stricter than South Africa's, with retailers having to take temperatures and the names and contact details of all shoppers, which also affects trade.
JB sells mainly international athleisure brands, and he said deliveries were late because of delays out of China.
"We're hopeful that the rest of the year will improve, but it depends what happens," he said.
JB currently has 32 stores in Botswana and 6 in Namibia, and he said long term plans included expanding into other southern African countries, "but nothing's decided yet".
Namibia
Agent: Slowly getting back to normal
Windhoek – Retail in Namibia "is starting to get back to normal", said a commission agent who didn't want to be named.
"It's still not what it was 2 years ago. There's still very, very little tourism. The authorities are allowing self-driving tourists, but the coach tours, which were the major part of tourism, and which were very big, are still not allowed.
"However, domestic consumers are almost back to normal, although a lot of people have been retrenched."
She said there were no problems getting stock from SA principals.
Zimbabwe
Safari Leathers: Tight, but positive signs
Bulawayo – Business remains very tight, but there are positive signs, said Judy Friend, partner in leather goods manufacturer Safari Leather.
"We're recovering from the lockdowns, but most people are anticipating another wave, and for that reason are reluctant to invest. However, our vaccination programme is going very smoothly, which is reason for hope.
"Also, the hunters are starting to come back. The bulk of the tourism sector, the tour groups who come for a holiday - what we call the photographic tourists - aren't back yet. Those people need to plan in advance and everyone's compromised financially."
Along with supplying hotel shops and walk-ins, a significant part of Safari Leather's business is exports to the U.S., and she said that had been very slow. "Americans don't have the spending power that they had, but they are coming out of it," she said.
She said getting components wasn't an issue.
"There are positive signs, but we need to get back the rhythm of trading. Maybe by next year we'll be happy chaps. In the meantime, we're taking it day-by-day."
Financial
TFG: Trading statement and update
Extracts from a Stock Exchange News Service (SENS) report. For the full report, go here
Cape Town, W. Cape, SA (May 14, 2021) – As a result of the COVID-19 pandemic, the past financial year was characterised by unprecedented global economic, political and social turmoil. Consumer sentiment, although in the process of recovering, has remained muted and spend remains suppressed.
While all three of our main territories, South Africa, the United Kingdom (UK) and Australia, continue to be impacted by COVID-19, TFG Africa and TFG Australia continued to trade strongly in Q4 FY2021.
The UK continues to be the hardest hit with no stores operating during Q4 FY2021. As previously advised, the third UK national lockdown (announced on 4 January 2021) was in place for the full fourth quarter of the financial year, with non-essential retail only reopening on 12 April 2021. In total, the UK lost approximately 50% of its available store trading hours during the past financial year and experienced severely depressed footfall and consumer confidence for most of the remainder of the year. Following the review of the carrying value of the investment in the fourth quarter, the impacts of the above-mentioned uncontrollable circumstances, coupled with the significant deterioration in Weighted Average Cost of Capital (WACC) rates used, due to an increase in the business risk rates applied and confirmation of the closure of a number of department store concessions through which we had previously traded, a decision was taken to impair approximately 56% of the carrying values of TFG London’s goodwill and intangible assets.
Despite the challenges described above, the Group, in line with its strategic intents, continues to invest for the long- term and to further strengthen its digital and local supply chain and manufacturing capabilities. Now that the UK has reopened for trading, most of our brands are currently trading above expectations as consumers start to return to stores.
Group performance update: Overall, the Group delivered a strong performance during Q4 FY2021 with Group turnover growth of 21.0% compared to the same period in the previous financial year. Excluding Jet, turnover for the quarter grew by 6.0%* compared to the same period in the previous financial year.
Online turnover for the Group continued to excel with growth of 49.5% for Q4 FY2021 compared to the same period in the previous financial year.
For the 12 months to 31 March 2021, total Group turnover declined by 6,7% compared to the same period in the previous financial year (excluding Jet: -13.0%*) due to the impact of lockdowns in April and May in all countries of operation, and subsequent periods of lockdowns in the UK and Australia as previously reported. Group cash turnover declined by 0.8% compared to the same period in the previous financial year, contributing 78.7% (comparable prior period: 73.9%) to total Group turnover for the 12 months to 31 March 2021.
Group online turnover grew by 33.4% (comparable prior period: -1.9%) for the 12-month period, contributing 12.0% (comparable prior period: 8.4%) to total Group turnover.
We continue to focus on enhanced cost control and prudent working capital management and from an inventory perspective, we are adequately provisioned leading into the new financial year.
The Group continues to reduce net debt owing to strong cash generation, working capital optimization, deliberate paying down of debt and the successful rights offer concluded in July 2020.
Update on JET: As announced on SENS on 25 September 2020, 5 November 2020 and 19 January 2021, the Group acquired certain commercially viable stores and selected assets of Jet in South Africa (effective 25 September 2020) and in Botswana, the Kingdom of Eswatini, Lesotho and Namibia (effective on various dates in December 2020 and January 2021). The integration of these 425 Jet stores and the other key back-office integration workstreams have all been satisfactorily completed within planned budgets and timeframes.
Outlook: Macroeconomic conditions in all territories in which we operate are likely to remain constrained, and changing customer needs will continue to disrupt traditional business models and accelerate digitalisation.
The impact of lockdown measures has further caused a structural shift in the way we conduct business and how our customers interact with us. This will determine in the future how we operate, where we invest and what, strategically, we prioritise.
However, the past year has also demonstrated that TFG remains resilient under extremely difficult and unprecedented circumstances.
We remain committed to the prioritisation of our strategic investments in digital transformation and localised quick response manufacturing. We are satisfied with the manner in which we have de-geared our balance sheet, both as a result of the successful rights offer as well as from strong trading conditions since the reopening of the various economies in which we trade. We will continue with our strong focus on expense control and capital management.
We are well positioned to benefit from the expected recovery in the UK, which will be aided to a large extent by the extensive vaccine roll-out.
Trade since the year-end has been encouraging across all three of our trading territories. For the trading month of April 2021, TFG Africa had turnover growth of 25.7% (excluding Jet +3.0%*) and TFG Australia turnover growth of 41,6% (AUD), both compared to April 2019. As previously announced, since most of the Group’s trading outlets across all our major trading territories were closed in the month of April 2020, turnover growth for April 2021 has been calculated on April 2019. TFG London’s turnover decreased by 42.0% (GBP), considering that non-essential retail only re-commenced on 12 April 2021 (19 days), versus a full trading month in April 2019.
Shareholders are advised that the Group expects to release its annual financial results for the 12 months ended 31 March 2021 on SENS on Thursday, 10 June 2021.
Pepkor 6-month results
Cape Town, W. Cape, SA (May 11, 2021) – Pepkor's results for the six months ended 31 March 2021 will be published on SENS on Thursday, 27 May 2021. A live webcast of the results presentation will be broadcast at 12:00pm (SAST). The webcast registration link is: https://www.corpcam.com/Pepkor27052021 and be accessed on the Pepkor website: www.pepkor.co.za.
Movements
Cape Town, W. Cape, SA (May 14, 2021) – Doug Dare will retire as an executive director of Truworths International Ltd from the end of May, and will serve in a part- time project consulting role to the business. Truworths has appointed Thabo Mosololi and Dawn Earp as independent non- executive directors of the company, with effect from 20 May 2021, "in compliance with paragraph 3.59 of the Listings Requirements of the JSE".
They Said It
"On Wednesday, 7 April 2021, at an ad hoc NBF, all parties dealt with the implementation of the final year of its 3-year substantive wage agreement. SARS indicated to Organised Labour that the unfortunate reality is that SARS is unable to pay salary increases for 2021/22, because the budget allocated to it did not include wage increase. It behoves all of us to act in a manner that takes into account the daunting challenges facing our country. Our country is faced with unacceptably high unemployment, and indeed, those of us who have this privilege of continued work, must tamper with our expectations, when we make legitimate demands. It is of importance, therefore, that we take steps that will help arrest such further financial deterioration in our country." - Extract from a press release on Friday by SA Revenue Services (SARS).
Got anything you'd like to share?
Do you have any suggestions, comments or experiences about the lockdown that you'd like to share with the industry? We will publish the throughout the lockdown, so please let us know. - tony@svmag.co.za
17/05/1951: André Otto, retired, formerly Bata, Pinetown, KZN, SA.
18/05/1969: Andrew Lofthouse, emigrated, formerly Leather Systems, Port Elizabeth, E. Cape, SA.
18/05/1974: Rudolph de L Volschenk, Leo D’ Mar, George, W. Cape, SA.
19/05/1965: Pierre van Niekerk, left the industry, formerly Midland Leather KZN (Gringo), Port Shepstone, KZN, SA.
19/05/1970: Chalkie Harrower, C&B Harrower Agencies, Johannesburg, Gauteng, SA.
20/05/1934: Diana Beckley, retired, formerly agent, Durban, KZN, SA.
21/05/1949: Norman Norris, retired, formerly Urban Zone, Randburg, Gauteng, SA, now South Coast, KZN.
21/05/1949: Donald Blanshard, Foot Fashion, Johannesburg, Gauteng, SA.
22/05/1958: Craig Wells, Sidison Footwear Cape Town, W. Cape, SA.
22/05/1972: Cindy Dunbar, Naked Feet, Durban, KZN, SA.
22/05/19??: Dr Willem Burger, SAOBC Ostrich Research, Oudtshoorn, W. Cape, SA.
22/05/1973: Farai Musungwa, Safety-Quip Botswana, Francistown, Botswana.
23/05/1950: Dean Padayachee, retired, formerly Daylan Footwear (closed), Durban, KZN, SA.
23/05/1952: Martin Cohen, L. Cohen Outfitters, Cape Town, W. Cape, SA.
23/05/1965: Craig Harper, left the industry, formerly Wayne Rubber, Palmer Rubber and Egoli Gumboots (all closed), Amanzimtoti, KZN, SA.
In Memoriam this week
17/05/2002: Johan Wilken (b. 1/11/1925), Klein Karoo International, Oudtshoorn, W Cape, SA.
19/05/2009: Robbie Trench (b. 28/03/1945), Panama Shoes, RPM Footwear (both closed), Durban, KZN, SA.
21/05/2019: Theo Heffer (b. 06/12/1934),Association of SA Manufacturers of Luggage, Handbags & General Goods, Johannesburg, Gauteng, SA.
23/05/2012: Chris van der Merwe, Oasis Tanning, Krugersdorp, Gauteng, SA.
23/05/2020: Cyril Saxe (b. 02/10/1936), Lonshoe Holdings, Cape Town, W. Cape, SA.
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.
Exchange rates
1. SA Rand (ZAR)/Lesotho Loti (LSL)/Namibian Dollar (NAD)/Swazi Lilangeni (SZL)
Source: http://www.x-rates.com/calculator/
|
Euro € |
GBP £ |
US $ |
CNY ¥ |
2021/04/10 |
R17.38 |
R20.01 |
R14.60 |
R2.22 |
2021/04/17 |
R17.15 |
R19.80 |
R14.31 |
R2.19 |
2021/04/24 |
R17.26 |
R19.81 |
R14.27 |
R2.19 |
2021/05/01 |
R17.43 |
R20.03 |
R14.49 |
R2.23 |
2021/05/08 |
R17.10 |
R19.67 |
R14.06 |
R2.18 |
2021/05/15 |
R17.16 |
R19.92 |
R14.13 |
R2.19 |
Note: For previous rates, see HERE
2. Botswana Pula (BWP)
Source: https://www.xe.com/currencyconverter/
|
Euro € |
GBP £ |
US $ |
CNY ¥ |
2021/04/10 |
13.13 |
15.12 |
11.03 |
1.68 |
2021/04/17 |
12.98 |
14.98 |
10.83 |
1.66 |
2021/04/24 |
13.09 |
15.03 |
10.82 |
1.66 |
2021/05/01 |
12.98 |
14.92 |
10.80 |
1.66 |
2021/05/08 |
13.16 |
15.13 |
10.82 |
1.68 |
2021/05/15 |
13.04 |
15.14 |
10.74 |
1.66 |
3. Malawian Kwacha (MWK)
Source: https://www.xe.com/currencyconverter/
|
Euro € |
GBP £ |
US $ |
CNY ¥ |
2021/04/10 |
935.73 |
1077.61 |
786.22 |
119.97 |
2021/04/17 |
945.86 |
1092.19 |
789.44 |
121.06 |
2021/04/24 |
957.69 |
1098.87 |
791.67 |
121.88 |
2021/05/01 |
953.33 |
1095.68 |
793.00 |
122.47 |
2021/05/08 |
962.89 |
1107.41 |
791.61 |
123.08 |
2021/05/15 |
969.29 |
1125.06 |
798.15 |
123.99 |
4. Zambian Kwacha (ZMW)
Source: https://www.xe.com/currencyconverter/
|
Euro € |
GBP £ |
US $ |
CNY ¥ |
2021/04/10 |
26.47 |
30.48 |
22.24 |
3.39 |
2021/04/17 |
26.56 |
30.67 |
22.17 |
3.40 |
2021/04/24 |
27.01 |
30.99 |
22.33 |
3.43 |
2021/05/01 |
26.75 |
30.75 |
22.25 |
3.43 |
2021/05/08 |
27.29 |
31.39 |
22.44 |
3.48 |
2021/05/15 |
27.32 |
31.71 |
22.50 |
3.49 |
5. Zimbabwean Dollar (ZWL$)
Source: https://www.xe.com/currencyconverter/
|
Euro € |
GBP £ |
US $ |
CNY ¥ |
Official US$ |
2021/04/10 |
430.72 |
496.02 |
361.90 |
55.22 |
84.39 |
2021/04/17 |
433.60 |
500.68 |
361.90 |
55.49 |
84.48 |
2021/04/24 |
437.80 |
502.33 |
361.90 |
55.71 |
84.48 |
2021/05/01 |
437.07 |
500.03 |
361.90 |
55.89 |
84.50 |
2021/05/08 |
440.20 |
506.27 |
361.90 |
56.26 |
84.52 |
2021/05/15 |
439.50 |
510.12 |
361.90 |
56.22 |
84.61 |
ABSA Agri Trends: Hides & skins prices
Johannesburg, Gauteng, SA (May 13, 2021) - The current average hide price increased by 4% to R7.86/kg from R7.56/kg a week ago. The current price is 11.4% lower than the average price a month ago and is 927.1% higher than the average price a year ago. Market stakeholders reports that demand is softening compared to earlier in 2021. NB* Hide prices are determined by the average of the RMAA (Red Meat Abattoir Association) and independent companies. - Abrie Rautenbach, head Absa agribusiness, Marlene Louw, senior agricultural economist, Absa group.
Hide & skin price progression |
Date |
Hides/Kg |
Dorper/Skin |
Merino Skin |
2020/11/06 |
2.36 |
26.00 |
44.00 |
2020/11/13 |
2.38 |
23.59 |
40.00 |
2020/11/20 |
2.69 |
35.00 |
50.00 |
2020/11/27 |
3.08 |
36.00 |
49.00 |
2020/12/04 |
3.65 |
34.03 |
49.00 |
2020/12/11 |
3.68 |
33.21 |
50.83 |
2020/12/18 |
3.93 |
32.59 |
51.67 |
2021/12/25 |
4.08 |
34.39 |
51.67 |
2021/01/01 |
3.93 |
34.03 |
54.00 |
2021/01/08 |
3.88 |
31.43 |
46.43 |
2021/01/15 |
4.03 |
31.43 |
46.43 |
2021/01/22 |
4.16 |
30.00 |
47.00 |
2021/01/29 |
4.04 |
33.05 |
50.83 |
2021/02/05 |
3.86 |
31.41 |
45.71 |
2021/02/12 |
4.33 |
35.46 |
45.83 |
2021/02/19 |
4.29 |
34.49 |
50.00 |
2021/02/26 |
4.94 |
34.70 |
47.50 |
2021/03/05 |
5.67 |
38.33 |
51.67 |
2021/03/12 |
4.80 |
42.50 |
59.17 |
2021/03/19 |
4.99 |
35.74 |
52.86 |
2021/03/26 |
6.33 |
35.16 |
55.00 |
2021/04/02 |
6.50 |
31.83 |
49.00 |
2021/04/16 |
8.98 |
37.44 |
50.00 |
2021/04/22 |
8.37 |
|
|
2021/04/29 |
8.98 |
40.96 |
62.00 |
2021/05/06 |
7.56 |
40.96 |
62.00 |
Note: For previous prices, see HERE
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:
Missy Boutique, Benoni, Gauteng, SA. Women's boutique.
Mistry's Outfitters, Middelburg, Mpumalanga, SA. Family outfitter.
Classified Adverts
Contact us
News & Classifieds: Tony Dickson, +27 (0)31 209 7505, tony@svmag.co.za
Next newsletter: May 24, 2021.
SAFLIA enquiries: Tel 0800SAFLIA * Email info@saflia.co.za * Website http://www.saflia.co.za
Our website www.svmag.co.za
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