1998/02/23
COUNTRY ROAD RESULTS REVISED - WOOLWORTHS [JSE Securities Exchange - SENS]
 
24/02/1998

WHL
COUNTRY ROAD RESULTS REVISED - WOOLWORTHS
COUNTRY ROAD RESULTS REVISED FOLLOWING ADOPTION OF WOOLWORTHS CONSERVATIVE
ACCOUNTING PRACTICES
COUNTRY ROAD ISSUES STATEMENT ON RESULTS AND BOARD CHANGES
AUATRALIAN RETAILER COUNTRY ROAD, CONTROL OF WHICH HAS BEEN ACQUIRED BY
WOOLWARTHS HOLDINGS LIMITED ("WOOLWORTHS"), TODAY ANNOUNCED THAT DIFFICULT
TRADING CONDITIONS IN THE FIRST HALF HAVE CAUSED THE COMPANY TO REVISE
DOWNWARDS ITS PROFIT EXPECTATIONS FOR THE SIX MONTHS ENDED 31 JANUARY 1998.
COUTRY ROAD EXPECTS TO MAKE AN AFTER TAX TRADING LOSS OF AROUND A$ 2 MILLION,
MAINLY DUE TO POOR PRE-CHRISTMAS SALES.
WOOLWORTHS HAS INFORMED COUNTRY ROAD THAT INTENDS TO APPLY ITS ACCOUNTING
PRACTICES TO THE RESULTS, WHICH ARE MORE CONSERVATIVE THAN THOSE CURRENTLY
ADOPTED.  THE EFFECTS WILL INCLUDE A REDUCTION IN STOCK VALUES AND THE
REASSESSMENT OF THE LIFE OF CERTAIN ASSETS AND THEIR RESULTANT CARRYING VALUES.
 IT IS ANTICIPATED THAT THE TOTAL ABNORMAL COSTS WILL BE IN THE ORDER OF A$ 11
MILLION AFTER TAX.
"DUE TO THE FACT THAT THESE LOSSES RELATE TO A PERIOD BEFORE THE EFFECTIVE DATE
OF THE TAKEOVER OF COUNTRY ROAD THEY WILL HAVE NO IMPACT ON THE EARNINGS OF
WOOLWORTHS HOLDINGS" SAID SYD MULLER, EXECUTIVE CHAIRMAN OF WOOLWORTHS.
SYD MULLER HAS BEEN APPOINTED, WITH IMMEDIATE EFFECT, THE NEW CHAIRMAN OF
COUNTRY ROAD AND WOOLWORTHS BOARD MEMBERS, FARREL RATNER, BRIAN FROST, IAN
STURROCK AND GRAEME SEABROOK HAVE BEEN INVITED TO JOIN THE COUNTRY ROAD BOARD,
EFFECTIVE FROM 19 MARCH 1998.
THE WOOLWORTHS OFFER FOR COUNTRY ROAD IS DUE TO CLOSE ON 27 FEBRUARY 1998.
ENDS
PRODUCED BY: BEVERLEY NEFDT 23-02-1998 15:17 SENS

PUBLISHER : JSE SENS Feed
Source: JSE Securities Exchange - SENS
 
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