1998/07/03
DISCLOSURE, THE FOLLOWING UPDATE WAS PROVIDED BY COUNTRY ROAD ON MONDAY, 29 [JSE Securities Exchange - SENS]
 
03/07/1998 - 09:04:24

IN LINE WITH THE AUSTRALIAN STOCK EXCHANGE REQUIREMENTS OF CONTINUOUS
DISCLOSURE, THE FOLLOWING UPDATE WAS PROVIDED BY COUNTRY ROAD ON MONDAY, 29
JUNE 1998:
1. COUNTRY ROAD ANNOUNCED ON 17 OCTOBER 1997 ITS ENTITLEMENT TO 637 949
AUSTRALIAN MUTUAL PROVIDENT SOCIETY (AMP) SHARES AS A PART OF THE AMP
DEMUTUALISATION PROCESS. THESE SHARES WERE SOLD ON 25 JUNE 1998, RESULTING IN
AN ABNORMAL PROFIT BEFORE TAX OF AU$ 13.1 MILLION.
2. ON 26 MAY 1998, COUNTRY ROAD ANNOUNCED THAT IT HAD REACHED AN AGREEMENT IN
PRINCIPLE WITH ITOCHU TO REPURCHASE ITOCHU'S 25% INTEREST IN COUNTRY ROAD'S
U.S.A. OPERATING COMPANY, AS WELL AS TO TERMINATE THE DISTRIBUTION AGREEMENT
BETWEEN ITOCHU AND COUNTRY ROAD IN RESPECT OF JAPAN.
THIS AGREEMENT HAS NOW BEEN COMPLETED AND SETTLEMENT WAS FINALISED ON 16 JUNE
1998. UNDER THE TERMS OF THE AGREEMENT, ITOCHU PAID COMPENSATION OF AU$2.6
MILLION TO COUNTRY ROAD WHICH WILL BE REPORTED IN THE FULL YEAR PROFIT REPORT
AS AN ABNORMAL ITEM. COUNTRY ROAD HAS PURCHASED ITOCHU'S 25% INTEREST IN THE
U.S.A. OPERATION AT A COST OF US$4.1 MILLION.
3. THE DIRECTORS OF COUNTRY ROAD REPORTED THAT THE DIFFICULT TRADING CONDITIONS
EXPERIENCED IN AUSTRALASIA IN THE FIRST HALF CONTINUED THROUGH THE QUARTER TO
THE END OF APRIL. AFTER A MODEST IMPROVEMENT IN EARLY MAY, TRADING DETERIORATED
FURTHER AND WAS IMPACTED BY HEAVY PRICE DISCOUNTING IN THE MARKET.
IT IS PREMATURE TO PREDICT THE EXACT FINANCIAL EFFECT FOR THE YEAR AT THIS
TIME. HOWEVER, BASED ON THE SALES PERFORMANCE, DIRECTORS EXPECT THAT THE NET
LOSS AFTER TAX AND ABNORMAL ITEMS FOR THE 11 MONTHS TO 30 JUNE 1998 WILL BE IN
THE RANGE OF AU$4.5 MILLION TO AU$5.5 MILLION.
AS PREVIOUSLY ADVISED, THE 1997/98 FINANCIAL YEAR WILL BE FOR A PERIOD OF 11
MONTHS ENDING 30 JUNE 1998.
4. COUNTRY ROAD FURTHER ANNOUNCED A NUMBER OF POSSIBLE ACCOUNTING CHANGES
AFFECTING TAXATION TREATMENT WHICH WILL HAVE NO AFFECT IN THE PREPARATION OF
THE WOOLWORTHS HOLDINGS' ACCOUNTS AS WOOLWORTHS HOLDINGS DID NOT RECOGNISE
THESE ITEMS ON ACQUISITION ON 1 FEBRUARY 1998.
5. THE BOARD OF WOOLWORTHS HOLDINGS LIMITED BELIEVES THAT THE IMPACT ON
WOOLWORTHS, NET OF MINORITY INTERESTS, TAXATION AND DIFFERENCE IN ACCOUNTING
TREATMENT, WILL NOT BE MATERIAL. THEY THEREFORE CONTINUE TO EXPECT A SMALL
GROWTH IN HEADLINE EARNINGS PER SHARE FOR THE CURRENT FINANCIAL YEAR ENDING 30
JUNE 1998.
CONTACT: SYD MULLER:      27 21 407-3355 (CELL 083 251 6194)
IAN STURROCK:             27 21 407-2900 (CELL 083 251 6270)
PRODUCED BY: RAEESA DAVIS 03-07-1998 09:00 SENS

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